Ding-dong on old family special
Dairybelle buildings and movable assets set to draw interest from bidders Online catalogue offers ‘a heavenly opportunity’
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.