The commercial property division of Pam Golding Properties East London has concluded a major transaction for the sale of a R22 million prime commercial property comprising 33 800sqm. This light industrial complex comprising 42 individual units ranging from 200-5000sqm, is well located within the city about 5km from the city centre and close to residential and retail trading areas.

Gwyn Bassingthwaighte, who heads up this division, says this is the largest commercial property transaction concluded by PGP in East London.  The property was sold to a syndicate of local investors.

He says:  “This modern property has high appeal, providing easy access for both workers and clients, and for all types of vehicles, and as a result is fully tenanted and used for a variety of purposes from storage to manufacturing.  It also has excellent 24 hour security.”

In addition, PGP’s East London commercial property division recently sold the BKB building in The Quigney for R10.3 million. This former wool store comprises a total of 38 000sqm of which 1 600sqm comprises an office component. The property, which falls within the Buffalo City Urban Development Zone, has been purchased by a local syndicate who are upgrading and redeveloping it into an industrial park.

Commenting on the local commercial property market, Bassingthwaighte says stock is in high demand and becoming increasingly scarce, as strategically situated in the heart of the Border / Ciskei / Transkei region, East London – or Buffalo City – is rapidly becoming a major service centre of growing importance. “As in any market where there is a stock shortage, this means that buyers have to react quickly when opportunities arise and invariably those who can do so are those with ready access to finance.

“Syndication is a sound option for smaller investors, as it allows them to compete with major individual or corporate buyers, thus giving them access to the investment property market - which would normally not be within their reach.  In this way it encourages a broader spectrum of investors to enter the market.

“Such investors could obviously invest in the stock market, however, being able to invest in a property in your own city that is tangible and visible to you, and also being able to share directly in potential capital gains, has high appeal for many smaller investors. Syndication also creates an opportunity for black economic empowerment,” adds Bassingthwaighte.

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