Rare Springs prop­erty un­der the ham­mer


WH Prop­er­ties ap­plies its for­mula of sci­ence and pas­sion to its busi­ness, say iden­ti­cal twin brothers Daniel and Joshua Pelkowitz, ex­ec­u­tives.

They love prop­erty, to the ex­tent that they have stud­ied for BSc’s in prop­erty sci­ence at Wits Univer­sity. Now they study prop­erty mar­ket trends, look­ing for the next “wave”, what­ever presents good op­por­tu­ni­ties from both a seller’s and buyer’s per­spec­tive.

And so, when a spe­cial piece of prop­erty ap­pears, it is “very ex­cit­ing”, says Daniel.

“In re­cent times, the Jo­han­nes­burg and Pre­to­ria CBDs have seen rapid urban re­gen­er­a­tion with many listed prop­erty funds and pri­vate in­vestors get­ting in­volved and ren­o­vat­ing old build­ings to pro­vide trendy apart­mentstyle liv­ing for lo­cals.

“South Africa has a sig­nif­i­cant hous­ing short­age and it was only a mat­ter of time un­til the listed prop­erty sec­tor re­alised this prob­lem and at­tempted to try and ad­dress some of the chal­lenges by pro­vid­ing some rel­a­tively af­ford­able ac­com­mo­da­tion within close prox­im­ity to trans­port nodes and places of work.”

As part of their stud­ies at the time, Daniel, with Joshua and col­league Smiso Ng­cobo, un­der­took a spe­cific “In­ves­ti­ga­tion into Res­i­den­tial Prop­erty In­vest­ment on the JSE” for their hon­ours dis­course. This study, which took place in 2011, in­ves­ti­gated whether neg­a­tive per­cep­tions ex­isted among prop­erty funds listed on the JSE to­wards in­vest­ment in res­i­den­tial prop­erty in South Africa.

Fur­ther­more, the study sought to de­ter­mine whether in­creased in­vest­ment by listed prop­erty funds in res­i­den­tial prop­erty could help in al­le­vi­at­ing the hous­ing cri­sis in South Africa.

“At the time of the in­ves­ti­ga­tion, most listed prop­erty funds were averse to res­i­den­tial in­vest­ment due to the high man­age­ment in­ten­sity associated with run­ning largescale res­i­den­tial build­ings and de­vel­op­ments,” says Joshua.

How­ever, more re­cently there has been a move to be­gin in­vest­ing in high den­sity res­i­den­tial prop­er­ties. A case in point, and sup­port­ing this was the list­ing of Ind­lu­place Prop­er­ties on the JSE in 2015, the first solely fo­cused Res­i­den­tial Real Es­tate In­vest­ment Trust (REIT).

Daniel con­tin­ues: “We be­lieve this trend of re­ju­ve­nat­ing apart­ment blocks is sus­tain­able. There would be a knock-on ef­fect from the CBD which will spread into neigh­bour­ing towns. The cur­rent tough eco­nomic con­di­tions strengthen the rental mar­ket as af­ford­abil­ity of home loans re­duces. Of course, the bet­terqual­ity build­ings of­fer greater vi­a­bil­ity in terms of main­te­nance costs and al­low land­lords to main­tain af­ford­able rentals.”

Which leads them to the ex­cit­ing new op­por­tu­nity. One of the largest and last re­main­ing un­ren­o­vated blocks of flats in the Springs CBD will be go­ing un­der the ham­mer in the next two weeks.

Grey­stone Man­sions in 1st Av­enue, Springs, was built in 1946 and re­mains a long­stand­ing and sought-af­ter source of ac­com­mo­da­tion.

Con­sist­ing of 50 flats the build­ing is a throw­back to the days when prop­er­ties were built to last.

“With the ad­vent of urban de­cay hav­ing hit many of South Africa’s orig­i­nal CBDs in­clud­ing Springs, it re­ally is a breath of fresh air to find a build­ing such as Grey­stone Man­sions which has not only stood the test of time, but has been im­mac­u­lately main­tained over the years,” says Daniel.

The Springs CBD has yet to see the mass in­vest­ment into high-den­sity res­i­den­tial prop­erty as in Jo­han­nes­burg and Pre­to­ria and this is where the WH Prop­erty team be­lieves is the op­por­tu­nity.

“This is the chance to in­vest at the per­fect time, ahead of what could be the next res­i­den­tial in­vest­ment rush,” says Daniel.

Grey­stone Man­sions is 95% oc­cu­pied and con­sists of 10 bach­e­lor units, 28 one-bed­room units and 12 two-bed­room units, mak­ing this a won­der­ful in­vest­ment op­por­tu­nity. The op­por­tu­nity to ac­quire this rare gem comes on June13 2017.

For fur­ther in­for­ma­tion on this prop­erty and our other auc­tions, visit www.whauc­tions.com or call Daniel on 072 360 7510

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