Brisk bidding gives Alliance a fine start

Posted On Friday, 20 February 2009 02:00 Published by eProp Commercial Property News
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THREE eight figure bids, a 36% confirmation rate and an odd but successful bid were highlights at the Alliance Group’s first auction of the year.


Rael LevittPrices achieved by three of the 11 properties on offer easily breached the eight figure mark, the number of sales confirmed from the floor illustrated the brisk bidding, and an unusual bid made for a block of flats preempted further bidding.

“The success of the auction can be attributed to a large degree to our policy of being selective of what we bring to the market. The confirmation rate is everything to us. Sellers are also becoming more realistic about prices,” auctioneer Rael Levitt said after the auction.

“Although it’s likely to be a difficult year, there will be good opportunities for buyers as there were today.”

The first building to breach the eight figure price mark was a warehouse and offices on Main Reef Road, Selby, which was described as having a replacement value of R30m. The property offers a double volume warehouse and offices with a gross building area of 7 672m² on a 16 810m² erf. Bids opened at R5m and the hammer came down on a final bid of R18,5m. The property was sold with vacant occupation.

Close on its heels was 100,9ha of development land on the Old Pretoria Road, Midrand. Bidding opened at R20m and closed at R21m. The property, with a special zoning, was sold with vacant occupation. Next was another offer of vacant land that hit the eight figure mark. The 7,48ha property, suitable for industrial development in Steeldale sold for R15m after an opening bid of R10m.

The auction opened with an interesting offer in Arcadia Pretoria. Number 840 Church Street, close to the Union Buildings, was the former Thai embassy. The building which has 15 rooms, eight bathrooms and undercover parking for 14 cars sold for R3,35m. It has a gross lettable area of 800m², and the 2 356m² property has a special zoning.

Three large flats and three retail stores in Acropol Court, a building in Regents Park Estate, fetched R800 000. Zoned for business one, the building offers a gross income of R250 000 a year.

Luan Court, a block of nine fully let flats on Donnelly Street, Turffontein was sold and confirmed for R1,7m. The building on a 495m² erf has a gross income of R236 281 a year.

Bara Court in Rosettenville was the focus of some unusual bidding.

After an opening bid of R500 000, a second bidder upped the ante to R980 000, a novel if odd way of bidding. But it was effective and discouraged potential buyers from further participation.

The block at 112 St George Street has six fully let flats on a 611m² erf and a gross income of R191 000 a year. The sale was confirmed from the floor.

Five million rand was paid for De Jonge Heer, a block of 23 fully let flats on Louis Trichardt Avenue, Alberton. The building on a 1 983m² erf offers a gross income of R750 480 a year. Another confirmed sale was an A-grade showroom and offices in Lonehill Extension 47. The building, on a 371m² erf, sold for R3m.

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