TWELVE properties were confirmed from the floor at the Auction Alliance commercial property sale in Sandton on Wednesday, when nearly 40 lots came under the hammer.

“It was the best auction we have had in 16 months,” auctioneer Rael Levitt said. “There were 88 registered buyers.”

In top spot was the Midrand University campus in Glen Austin, Midrand, which fetched R32m, the highest selling price at the auction. The campus has a gross lettable area of 7413m² and offers a gross income of R3,14m a year. “It is the first time to my knowledge that a campus was sold in SA,” Levitt said.

Good bids were received for country properties. A retail property with Edgars as anchor tenant in Polokwane was knocked down for R25,5m. It has a gross lettable area of 4164m² and a gross income of R3,9m a year.

Apartment blocks in Hillbrow and Berea were of special interest. A fully let site of 52 flats on Louis Botha Avenue, offering a gross

Bidding for The Ridge Plaza with 96 sectional title flats on Primrose Terrace, Berea, was disappointing. Described as one of finest properties on the market in the area, the lot failed to attract a bid higher than R15m.

An investment consultant said prices in the Hillbrow area were “a bit flat” but would pick up as money flowed into the economic system again.

North Field, a landmark building in Braamfontein, an office and retail block on De Beer Street, fetched R14m. The building has a gross lettable area of 2880m² and gross income of R2,28m a year.

The Alliance Group is bringing a number of hotels to the market in Johannesburg, Durban and Cape Town. “Many of the hotels are owned by offshore companies and it is a good time to sell with the strengthening rand,” Levitt said.

A case in point was the United Hotel, with 116 rooms in Midrand, which was sold for R25m without fixtures and fittings.

A corporate disposal of A grade offices and a warehouse in Midrand with a gross lettable area of 7354m² fetched R17m. Grade A offices and workshops at Longmeadow with a gross lettable area of 200m² sold with vacant occupation for R10,6m.

Demand was keen for Choppies Centre in Mafikeng with Clicks, Vodacom and Absa as tenants. The centre, with a gross lettable area of 5134m² and a gross income of R3,6m a year received a hammer price of R21,5m.

Another attractive offer was a retail centre with Absa as anchor tenant in Mokopane. The building, with a gross lettable area of 3543m² and a gross income of R2,5m a year, received a bid price of R17m.

In Parkhurst, described as a leisure destination, a former petrol station converted into grade A offices and a warehouse on four stands fetched R14,5m.

The Rebel Centre with PEP Stores as anchor tenant, a gross lettable area of 1595m² and a net income of R612000 a year in Valhalla, Centurion, fetched R4,6m.

The only one-horse race of the auction was a block with four two bedroom flats in Turffontein that was sold for R850000.

Ash Court, a block with six flats and a gross income of R215000 in Rosettenville, was sold for R1,3m. “Blocks of flats have proved a great investment over the years,” Levitt said.

Also in this league was a regional retail centre in Sabie, the last lot. The fully let complex with Spar, Spur, Nedbank and Absa as tenants has a gross lettable area of 4233m² and a gross income of R3,2m a year. It fetched R14m.

At the earlier residential sale, a Gary Louw-designed house in Athol, which features a cigar lounge, three reception areas, a 14-seater dining room, two master suites, gym, guest suite and two bedrooms en suite, received a bid price of R16m.

A five-bedroom house in Poortview with an upstairs pyjama lounge received a bid price of R6m. The house is on an 8500m² erf with landscaped garden, large training pool, separate guest cottage, tennis court and gazebo.

Craig Berman, head of the residential property section, said he was happy with the results.

“I think the prices were fair and prove that we can still attract buyers,” Berman said.

Source: Business Day