Webcast brings in more buyers

DISCERNING buyers in Johannesburg and Cape Town were able to pick up several bargains at the Auction Alliance multiple property auction held in Waverley, Johannesburg, on Tuesday, in which Cape Town buyers were able to participate via a webcast of the proceedings. It was the second time that a webcast was used by Auction Alliance, and 15 buyers in Cape Town registered for the auction.

The auction kicked off with the sale of an industrial property in Duncanville, Vereeniging.

The 1,41ha property with a gross lettable area of 2673m² has African Magnet as sole tenant and earns R480000 gross a year. Bidding started slowly and the property was sold and confirmed at the drop of the hammer for R3m. Auctioneer Rael Levitt described it as a “nice deal” for the buyer.

A good price was realised for the Fidux retail centre on General Smuts Street, Vanderbijlpark, which has Ellerines as one of the main tenants. The 767m² property with a gross lettable area of 699m² earns nearly R300000 gross a year.

“It is the property we were waiting for,” Levitt said. “It is near the taxi rank and attracts a lot of feet.”

Bidding started off at a brisk rate and the centre was sold and confirmed for R2,3m to a round of applause for the buyer.

There has been a discernible turnaround in the Vaal Triangle compared with three years ago, when Levitt says “you could not give property away there”.

He attributes the turnaround to the weakening of the rand, which is lifting the manufacturing sector.

Demand for industrial space is increasing, especially in the face of high replacement costs for new premises.

Bidding was brief but fast for a light industrial workshop and retail component on Driehoek Street, Germiston. The 677m² property, zoned for general business, has a gross lettable area of 518m², earning R72600 gross a year. It was bought by the main tenant, City Clutch and Brake, which had the distinction of being the only tenant to buy a rented building at the auction. “It was a good deal for both buyer and seller,” Levitt said.

Number 53 Burger Street, a retail and residential building in central Krugersdorp, was described as “a very nice building in the banking district”. The vacant building has nine one-bedroom flats and three retail outlets, with a total gross lettable area of 1085m². The area is being upgraded at considerable cost to accommodate a new soccer stadium, which should boost the surroundings. The building was knocked down for R1,75m subject to confirmation.

Klerksdorp provided the bargain of the day when what was described as “an unusual” property in Nuwe Dorp Klerksdorp was knocked down for R1,6m, described as “a little low” by Levitt. The property, with a gross lettable area of 1317m² on a 991m² erf, with Mutual & Federal as tenant, earns R395100 gross a year.

There was strong interest for a retail building on Amethyst Street, Carletonville, described as “a good property in a good area, with a good tenant in a busy trading area”. The 952m² stand with a gross lettable area of 800m² generates gross income of nearly R500000 a year.

It has blue-chip Ellerines with its subsidiary, Town Talk, as tenants. Bidding was keen, and from an opening bid of R1m the price was pushed up quickly to the hammer price of R3,8m.