Property still in demand

Posted to the web on: 09 June 2008 Business Day
Property still in demand

BIDDING was brisk at the well-attended Alliance Group multiproperty auction on Wednesday where sales of half of the 24 properties on offer were confirmed on the floor. “It was a great turnout and shows that the property people aren’t panicking about what they see as a price adjustment,” Norman Raad of the Alliance Group said afterwards.

“The prices we achieved were very good seeing the market has come off its peak. Last year we saw a 10% yield; this year we have a 12,5% yield. Also, those dealers sitting on cash are looking for investment prospects.”

A brand new triple-A grade office block in Longmeadow Business Park fetched R26m, the highest price at the auction.

The building, at 86 Angus Drive, Longmeadow East, has a gross lettable area of 6940m² in what auctioneer Rael Levitt describes as the prime industrial node in the country.

The building has been recently completed and was sold with vacant occupation.

Following closely, were three office blocks in Mellis Park, Rivonia. The buildings stand on what was once a leafy estate with a caravan park belonging to the Mellis family, and was opposite Liliesleaf Farm which featured prominently in the Rivonia Trial of the 1960s.

The auction got off to a good start with the sale of a retail centre with blue chip tenants in Nelspruit. It has a gross lettable area of 2072m² and a gross income of R1,32m a year. The knockdown price was R7,5m.

A retail and office block in Vanderbijlpark sold for R3m. It has a gross lettable area of 1669m² and a gross income of R1,17m a year. Two adjoining blocks of flats housing 18 flats on Bedford Ave, Benoni, fetched R3,6m, and a block of 13 flats in Florida was knocked down for R3,1m.

An industrial warehouse in Steeldale sold for R10m. The building, with a gross lettable area of 4807m² and a gross income of R54706 a year, was sold with four industrial cranes.

Two hotels came under the hammer: a boutique hotel and health spa in Hyde Park with a gross lettable area of 1350m² fetched R7,5m and R15m was paid for the Sandton Park Hotel in Bramley Park. The latter has 62 suites and a 70% occupancy rate and offers an income of R5,17m a year.

A grade-A office block in Braamfontein attracted interest. The building sold for R9,2m.