Newcastle centre an ideal starting point
Bustling complex in CBD offers opportunity for aspiring property investors Shoprite building sells for R168m
ASPIRING commercial property investors will have the opportunity to make a solid start with their portfolio when In2assets calls for bids for the Newcastle Woolworths Centre on April 18.
The property in the Newcastle CBD – fully let with three national blue chip tenants in Woolworths, PEP and Rage – has a gross lettable area of over 2 700m2 with a combined gross annual rental of about R3.3 million.
It is also a bustling centre. In2assets says a pedestrian foot count conducted in March 2012 found that about one million pedestrians passed through the passage in the building in just a month, illustrating the popularity of this shopping node.
Andrew Miller, In2assets’ group auctioneer, says: “This high-profile property is ideal for investors looking for value beyond metropolitan areas. Strong national tenants and location are prerequisites for savvy property buyers when looking at outlying towns and the Newcastle Woolworths Centre ticks both boxes.”
The auction will take place at Durban Country Club on April 18 at 11am.
In2assets is also planning the sale on April 19 of Zulu Waters Game Reserve, a 3000 hectare estate in the KZN Midlands, on the P171 Castle Road near Estcourt.
Zulu Waters has a wide variety of revenue-generating features including game, farmlands, dams, abattoir, workshop, storerooms, staff quarters and office.
There are also boreholes and generators for independent water and power supply.
In a multi-property auction on March 20, In2assets will auction the following three properties:
Over 10 000m2 of industrial property at 5 Swinton Road, Mobeni: two warehouses of 2 700m2 and 4 200m2, respectively, and a large yard of over 3 300m2.
Mobeni is about 13km south of Durban CBD and ideally located near the Port of Durban.
An office building at 13-15 Ennisdale Drive, Durban North: a 1 000m2 prominent office block consisting of a pair of linked buildings. Well-positioned alongside Swapo Road (Broadway) and near the N4, the two buildings are connected by a sky bridge. Most of the property is owner-occupied but will be sold partially vacant on transfer.
Commercial property at 57 Assagay Road, Hillcrest: multi-tenanted commercial office park consists of 16 units, close to Hillcrest Private Hospital, with a gross annual income of over R840 000, excluding rental for three vacant offices.
The park consists of 16 units in four freestanding buildings, including an oncology centre and medical response base, set amid attractive gardens.
For more details, call In2assets on 031 574 7600 or see www.in2assets.co.za. – Auctions Writer IN A “frenetic” auction, the Alliance Property Group sold the Shoprite premises at 424 Dr Pixley Keseme (formerly West) Street in the Durban CBD, for a staggering R168 million.
The sale at the Hilton Hotel last Tuesday attracted eight registered bidders who submitted 61 bids in total. The opening bid started at R100m and bids increased by R5m to reach the undisclosed reserve price of R140m in a flurry of bids.
Even after auctioneer Roy Alderdice announced that the reserve price had been reached, the bids continued in increments of R1m until the lot had finally being knocked down for R168m.
Alliance Property Group director John Lomas says although the property had been marketed throughout South Africa, local investors dominated the bidding.
“There were many prophets of MARCH 11 2018 doom who predicted the sale would be a failure. But I knew local investors would see the property’s potential and rise to the occasion. Nevertheless, I did not think we would achieve as much as R28m above the reserve price,” said Lomas.
“The property was purchased by a group of private investors as a long-term investment.
“Based on the price of R168m, the net return equates to just over 6%, which says a lot about the intrinsic value of the investment.
“The sellers were delighted with the result as they too did not expect the undisclosed reserve to be overtaken by such a substantial amount.”
The premises, situated in the heart of the Durban CBD, is let on a long triple-net lease to Shoprite Checkers who in turn have sub-let some front shops to other national tenants. – Auctions Writer