By Sipho Masondo

A massive auction will see some of Nelson Mandela Bay‘s landmark CBD and North End commercial properties go under the hammer later this month.

Included among the 11 properties to be disposed of by ApexHi Properties are the Old Mutual Building in Govan Mbeki Avenue and the Eben Dönges Building in Hancock Street, North End.

The properties – worth about R220- million – will be auctioned by the Eastern Cape Alliance group at noon on August 26, at the Protea Marine hotel in Summerstrand. Group head Mike Bosch said eight of the 11 properties were situated in Port Elizabeth, and the remaining three in Uitenhage.

“Most of the properties in Port Elizabeth are situated within close proximity of Govan Mbeki Avenue and the CBD region. The shopping centres/office blocks in Uitenhage are in the town‘s famous and busy Caledon Street.”

The 12 109m² Old Mutual building, and the 7 018m² building which is on lease to the public works department in North End, have a collective annual rental income of more than R11-million.

ApexHi, a Johannesburg Stock Exchange-listed company whose market capitalisation is in excess of R9,2-billion, said the auctioning of the properties was motivated by the need to restructure the company‘s portfolio.

“Our model has changed, we want to hold properties with an individual value of more than R30-million. We had an asset base of about 430 properties, but we sold about 110 small ones in the last financial year, ending June 2008,” said managing director David Rice.

Bosch said the auction was already generating a lot of interest.

“Its a good opportunity for forward thinking investors who are looking ahead at the 2010 world cup, which will see popular commercial and industrial properties increase in value.”

Moreover, he said, Nelson Mandela Bay still offered good value for money for investors looking to increase their portfolios in the commercial and industrial property market.

The Mandela Bay Development Agency could not be reached for comment on the sale of the properties.

Source: The Herald