Ding-dong on old fam­ily spe­cial

Dairy­belle build­ings and mov­able as­sets set to draw in­ter­est from bid­ders On­line cat­a­logue of­fers ‘a heav­enly op­por­tu­nity’

Weekend Argus (Saturday Edition) - - PROPERTY -

DAIRY­BELLE has been a house­hold name for many South Africans since child­hood. Now the doors of the com­pany’s Ep­ping fa­cil­ity have closed, and a liq­ui­da­tion or­der has been fi­nalised.

Dur­ing the course of its his­tory, dat­ing from as far back as the late 1920s, Dairy­belle saw both suc­cess and chal­lenges as it dom­i­nated the south­ern tip of Africa, says Ariella Ku­per, man­ag­ing di­rec­tor of auc­tion house Clear As­set, which will auc­tion Dairy­belle’s prop­erty and mov­ables.

“As growth and changes took place in the or­gan­i­sa­tion and dairy di­vi­sions ma­tured, of­fer­ing but­ter, yo­ghurt, UHT long-life prod­ucts and milk, Dairy­belle firmly es­tab­lished it­self as a se­ri­ous player,” she says.

“Own­er­ship changed hands along the way and in 2014 Clover pur­chased Dairy­belle’s yo­ghurt and long-life milk busi­ness for R200 mil­lion. That year the in­dus­try con­tin­ued to re­main un­der pres­sure as lo­cal and global com­peti­tors ri­valled each other for a share of the mar­ket.”

Now Dairy­belle is tak­ing a new di­rec­tion with in­ter­ested par­ties ne­go­ti­at­ing for the brand it­self, Ku­per says. The build­ings and mov­ables are also up for auc­tion, mak­ing way for a new gen­er­a­tion of own­ers.

The Ep­ping site, which will come un­der the ham­mer of Clear As­set, will pro­vide “a prom­i­nent in­vest­ment op­por­tu­nity”, in Ku­per’s view. “The site cov­ers two er­ven – erf 107236 and erf 112227 – and the for­mer in­cludes a pri­vate road reg­is­tered as a for­mal servi­tude in the ti­tle deed,” she says.

The im­mov­able prop­erty will go on a live auc­tion hosted at law firm ENSafrica’s premises at 11am on June 20. A re­fund­able de­posit of R100 000 AMONG the var­ied lots on of­fer in the High Street Auc­tion Com­pany’s June on­line sale cat­a­logue is a prop­erty which will give en­trepreneurs “a heav­enly op­por­tu­nity” for a new busi­ness guar­an­teed to show profit.

Go­ing un­der the ham­mer is an 8.5 hectare un­oc­cu­pied ceme­tery in Win­ter­veld AH, for which the City of Tshwane has granted all the plan­ning per­mits for 12 500 plots.

High Street lead auc­tion­eer and di­rec­tor Joff van Ree­nen says: “The process of ob­tain­ing plan­ning per­mis­sion for a ceme­tery is a com­pli­cated one, for ob­vi­ous rea­sons, and busi­ness op­por­tu­ni­ties of this na­ture – where all the per­mits are al­ready in place – are rare.

“Pri­vate ceme­ter­ies are enor­mously lu­cra­tive ven­tures be­cause the coun­try’s mor­tal­ity rate is high.

“There is ever-dwin­dling space avail­able in ex­ist­ing ceme­ter­ies, and South Africans pre­dom­i­nantly favour tra­di­tional buri­als over cre­ma­tion.”

Ac­cord­ing to SAFuner­alPlan. com, the av­er­age cost of burial plots na­tion­ally is around R12 000, but in ar­eas where sup­ply is low this can rise as high as R30 000.

“On this lot, we’ll open bid­ding at R3 mil­lion, but do a quick cal­cu­la­tion of R12 000 times 12 500 plots and the value propo­si­tion will be re­quired to par­tic­i­pate.

The mov­ables will be of­fered for sale via an on­line auc­tion with bid­ding clos­ing at 3pm on July 18. A R20 000 re­fund­able de­posit will be re­quired to reg­is­ter.

“The auc­tion of the mov­ables will of­fer an ex­cep­tional op­por­tu­nity for SMEs and lo­cal and for­eign mid-tier play­ers,” says Ku­per. “From ad­ver­sity comes op­por­tu­nity, and I be­lieve the chance to ac­quire highly de­sir­able items, such as fruit juice plants, milk sep­a­ra­tor streams and yo­ghurt, but­ter, cheese, cot­tage cheese and sep­a­ra­tor mo­du­lar lines, will gen­er­ate great in­ter­est among bid­ders.”

The cot­tage cheese plant was in op­er­a­tion for about 14 months be­fore be­ing moth­balled, and there is also a fully-fit­ted cold room on of­fer. A due dili­gence re­port, im­ages and in­for­ma­tion for the mov­able items and im­mov­able prop­erty are avail­able on Clear As­set’s web­site with op­por­tu­ni­ties to in­spect these.

Visit www.clear­as­set.co.za for more in­for­ma­tion. be­comes a no-brainer,” says Van Ree­nen.

“As much as one might joke about start­ing a ven­ture in which your sup­ply of clients is al­ways as­sured, the fact is we’re all mor­tal and we will pass on sooner or later.

“I there­fore an­tic­i­pate there’ll be fierce bid­ding on the ceme­tery lot at the High Street auc­tion on June 29, be­cause the chance of long-term loss is prac­ti­cally zero and the po­ten­tial re­turn on in­vest­ment is huge.”

High Street Auc­tion Com­pany joint man­ag­ing di­rec­tor Lance Chal­win-Mil­ton says June’s auc­tion will be big­ger than its most re­cent bumper sale in May, in which more than 30 lots went un­der the ham­mer.

“On av­er­age, more than 90% of our auc­tion lots com­prise vol­un­tary sales, usu­ally by cor­po­rate clients reshuf­fling their port­fo­lios, and the cur­rent high stock vol­umes, cou­pled with com­pet­i­tive bid­ding, in­di­cate we’re in a very ac­tive mar­ket pe­riod.”

He says de­spite the coun­try’s on­go­ing eco­nomic dif­fi­cul­ties, the dis­so­lu­tion of as­sets un­der bank in­struc­tion as a re­sult of liq­ui­da­tion or se­ques­tra­tion still ac­counts for less than 5% of High Street’s over­all auc­tion stock.

“We’re not a ‘fire sale’ busi­ness, but rather work with listed en­ti­ties, the REITs (Real Es­tate In­vest­ment Trusts), cor­po­rates, prop­erty devel­op­ers and sta­te­owned en­ter­prises to pro­vide a trans­par­ent, mar­ket-dic­tated sales and pur­chas­ing plat­form for im­mov­able as­sets.

“It goes with­out say­ing that the will­ing buyer/will­ing seller sce­nario is al­ways prefer­able, be­cause even in our cur­rent eco­nomic dol­drums it’s in­dica­tive of a prop­erty mar­ket that’s still rel­a­tively far from break­ing point,” says Chal­win-Mil­ton.

Van Ree­nen says aside from the ceme­tery, some 40-plus prop­er­ties rang­ing from large in­dus­trial lots and A-grade of­fice build­ings to lux­ury res­i­dences will go un­der the High Street ham­mer later this month.

“Among the pre­mier lots are a com­mer­cial space in the heart of up­mar­ket Rivo­nia, an in­dus­trial re­de­vel­op­ment site in Nel­spruit, two prime de­vel­op­ment sites in Sand­ton, a num­ber of de­vel­op­ment sites in Midrand, a busy re­tail cen­tre in Lim­popo and a ho­tel in East Lon­don.

“Also on the block is a 4 878m² in­dus­trial fa­cil­ity in Spar­tan, Gaut­eng. It has 3 500m² of gross let­table area in three ware­houses and two of­fice blocks.

“Fea­tures in­clude three spray booths, three-phase power (375 kVA), CCTV cam­era sur­veil­lance and air-con­di­tion­ing through­out.

“The Nel­spruit lot is another one to watch. It is a multi-use in­dus­trial fa­cil­ity of more than 11ha in Nel­spruit In­dus­trial, close to all ameni­ties and with easy ac­cess to the N4. Zoned In­dus­trial 2, the site is ideal for re­de­vel­op­ment, and has 8 500 kVA avail­able power and four 33KV sub­sta­tions.”

The next High Street auc­tion will take place on June 29 at Sum­mer Place, 69 Melville Road, Hyde Park, start­ing at noon.

For more de­tails, call The High Street Auc­tion Com­pany on 011 684 2707 or see www. high­stree­tauc­tions.com.

The auc­tion of Dairy­belle’s Ep­ping premises will pro­vide “a prom­i­nent in­vest­ment op­por­tu­nity”, ac­cord­ing to the auc­tion­eer. The site cov­ers two er­ven, one of which in­cludes a pri­vate road reg­is­tered as a for­mal servi­tude in the ti­tle deed.

The milk pas­teuris­ing equip­ment seen here is among the Dairy­belle as­sets that will be auctioned by Clear As­set auc­tion house this month.

One of sev­eral high-end Rivo­nia com­mer­cial real es­tate lots that will fea­ture in the High Street Auc­tion Com­pany’s June sale.

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