A WILDERNESS hotel and two guesthouses in Hermanus were among the lots that were on offer at the Savile Row auction at Summer Place on Wednesday, in a market that is still showing a strong appetite for quality commercial, industrial and residential properties.

“There are still buyers in the market, and on Wednesday we had more registered buyers than in any of our previous sales,” MD Mark Kleynhans said. “Savile Row will have an auction each month now until the end of November. Our challenge will always be to bring the right stock at the right price to the market.

“What happens now that the World Cup has been played? Well, it’s simply back to business. It was difficult for many businesses to get traction in the first half of this year. There were many interruptions with school holidays arranged to slot in with the soccer, and it was hard to find a rhythm.”

On the other hand, Mr Kleynhans said there were serious bidders who came out for the soccer, but also to look for opportunities to buy properties.

A clean, well-maintained building in Glenhazel opened the commercial property auction. The mixed-use building with offices and retail components was knocked down for R6,5m.

Another lot, described as an “investment gem”, a building with 21 flats and a net income of R1,37m a year in Pretoria North, fetched R10,2m. “Tenants are a government department and Barloworld, and they don’t come more blue chip than this,” auctioneer Joff van Reenen said.

A bid of R9,25m was received for two units in a warehouse and office block in Midrand, and R6m was paid for two free standing buildings on a 1982m² stand off Sandton Drive, Parkmore.

With tenants such as Checkers and OK Bazaars, bidding was understandingly keen for a central commercial building with a gross income of R3,33m a year in central Upington. The hammer came down on a final bid of R19m.

Interestingly, the two guesthouses in Hermanus are both on Main Road and both attracted the same bid price of R2,5m. The 16 Reasons guesthouse has five guest suites en suite, and Aloe guesthouse has seven guest suites. Erf sizes are 1404m² and 1289m² respectively.

The Wilderness hotel, in the heart of the garden route on the N2 Highway, offers 149 rooms with 10000m² undeveloped land, 125m of sea frontage as well as a conference, spa and restaurant facilities. There was spirited bidding that included a proxy bid and an English bidder who came out for the World Cup. The proceedings concluded with a final offer of R37,5m, surpassing the nominal opening bid of R25m.

The Johannesburg central business district featured in the sale with two commercial buildings in Commissioner Street on offer. No storey block with a gross income of R390000 a year, R1,95m.

The biggest disappointment of the day was a guesthouse and wine estate on 30ha in Franschhoek, which attracted no bids. Le Manoir de Brendel estate offers 10 guest suites, gym, spa, chapel and wine cellar. Nominal opening bid was R30m.

Roxy’s Rhythm Bar, which incorporates part of the old Melville Hotel, came on the market for the first time in its history. It fetched R5,5m.

Seven-million rand was paid for the 28-room hotel Hulala Lakeside Lodge in White River, and R3,1m for a 176ha avocado and timber farm in Mogoebaskloof, Tzaneen.

Source: Business Day