Mine area is ‘brimming market’

Two commercial properties in Carletonville to go on auction

TWO ESTABLISHED commercial properties in Carletonville, Gauteng, will be brought to auction on September 27 by Rawson Auctions Western Cape in Rondebosch, offering potential bidders an excellent investment opportunity.

Tanya Jovanovski, franchisee of Rawson Auctions Western Cape, says: “Carletonville is home to thousands of mine workers and young executives, and the owners and staff of all the local companies associated with the mines. It’s a brimming market.”

The first property to be auctioned is at 28 Railway Street, Carletonville, and occupies a total of 4 896m². It comprises three industrial workshops and three washrooms.

“The main workshop building, which covers 1 386m², was initially used to overhaul big motors for the mining industry and is easily accessible to huge vehicles,” she says.

“On the first floor are seven offices, four toilets, a shower, kitchen and walk-in safe. The second floor comprises seven offices, five toilets, a shower and a kitchen. And the ground floor has two offices, two toilets and a kitchen.

“The main workshop building brings in most of the property’s rental income, generating R37 240 a month. The current lease will expire next month.”

The second workshop covers an area of 1 000m² and has two offices, two storerooms, two changing rooms and toilets, and a workshop.

“The workshop is currently vacant, but has the potential to increase the rental income of the property by R4 725 a month when let,” Jovanovski says. “A new lease is currently being negotiated.”

The third workshop covers 502m² and is currently occupied. It consists of a workshop space and ablution facilities, and is being leased until June 2018. The monthly rental income for this workshop is currently R4 000.

Set behind the first and second workshops are three rooms with showers and toilets, rented out for R500 a month a unit.

The reserve price for the property is R2.3 million.

The second Carletonville commercial property to be brought to auction is an office block that has the potential to generate R100 000 a month in rental income when fully let, Jovanovski says.

“The current tenants, who are renting about one third of the property, pay R35 525 a month.”

The property, at 124 Kaolin Street, has 1 600m² of lettable space in total, made up of office space and 31 underground parking bays.

“The new owner will have the opportunity to bring in new tenants, or occupy the available space themselves,” Jovanovski says.

The reserve price for this commercial building is R4.5m. However, all offers on both properties will be considered. The sellers of both properties are reqistered for VAT, and transfer duty will therefore not be payable.

Jovanovksi says Rawson Auctions is obliged by law to market the property at the listed reserve price.

A “reserve price” is the minimum rand amount the seller will accept as the winning bid, and is not necessarily the property’s market value, nor the amount the property is likely to be sold for on the day of the auction, she says. The seller reserves the right to consider all offers.

The auction of both properties will be by silent tender, with written offers to be submitted in sealed envelopes.

Tenders will close at noon on September 27.

No registration fee is required to bid with Rawson Auctions. However, the buyer will be expected to pay a deposit of 5% of the purchase price, as well as 10% commission plus VAT over and above the purchase price, on the seller’s acceptance of the offer.

Bidders are required to be registered and must have with them certified copies of their identity documents and proof of residence.

All offers must be submitted on Rawson Auctions’ Offer to Purchase form with its standard terms and conditions, a copy of which can be obtained by contacting the Rawson Auctions Western Cape office on info@ rawsonauctions.com or 021 837 1700. Bids can be delivered to the Rawson Property Group’s head office at 222 Main Road, Rondebosch.

For more details or to view either property call Josh Raisun on 078 888 9534 or Tanya Jovanovski on 021 837 1700.

The commercial property on Railway Street, Carletonville, is one of the two properties in this area that will be auctioned by Rawson Auctions Western Cape in Rondebosch on 27 September.