Industrial property shines at sale

Posted On Friday, 25 July 2008 02:00 Published by
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'There is strong demand for industrial buildings with vacant possession'.

IN A small but lively and well- attended multiple-property auction held by The Alliance Group in Sandton on Wednesday, prices fetched were described as ranging from low to good, and a number of sales were confirmed from the floor.

“The market is tight at the moment, but our confirmation rates are high,” auctioneer Rael Levitt said after the sale. “Sellers have become more realistic about prices, and buyers are getting good value. It’s a great time to buy.”

The auction got off to a good start with the sale of a warehouse in Kya Sands that attained a hammer price of R2,8m, described by Levitt as “excellent”. The warehouse has a gross lettable area of 774m² and an industrial one zoning.

“There is strong demand for industrial buildings with vacant possession. Buyers are taking into account the escalating building costs and are looking ahead to the future recovery in the economy.”

Two other industrial properties offered with vacant possession, both in Stormill, Roodepoort, also fared well. One on Reduktor Avenue with a gross lettable area of 5620m² and an industrial four zoning, sold for R13,2m. It saw the most competitive bidding of the day, with an opening bid of R10m. The sale, described as “a good deal for the buyer”, was confirmed at the fall of the hammer.

The second property, on Shaft Street, fetched R9m, which was described as “satisfactory”.

Demand was less keen for a retail complex in Mokopane. The building with a gross lettable area of 3152m² sold for R4,1m.

“It was not a high price, but peri urban retail properties are not doing well at the moment,” Levitt said.

Three lots of vacant development land came under the hammer. “Vacant land has shown the biggest cool-off. What we bring to the market must be well priced, and we do not consider highly priced lots. Selling these lots today was a struggle, but we expected a struggle.”

Development land measuring 23160m² in Carlswald, Midrand, sold for R4m and 2,38ha in Vaal Marina Holiday Township Ext 8, sold for R3,5m. Another lot, 12,22ha of vacant land at Zwavelpoort, Pretoria, received a top bid of R6m.

A “nice little property” in Ferndale, also development land, was sold and confirmed for R1,9m.

There was strong demand for two farms of 118,8ha and 153,5ha near Bela Bela with resort potential. They were sold and confirmed for R18m.

Development land on Hartebeesfontein, including 18 stands in a residential canal development, sold for R19,5m. “The price was low, but these types of development are struggling,” Levitt said.

Source: Business Day

Publisher: I-Net Bridge
Source: I-Net Bridge

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