Chance to buy scarce industrials
Well-sited premises coming under hammer Correct valuation critical for good sale
IN2ASSETS will on April 18 auction four industrial properties in Durban areas where, the company says, suitable industrial land is virtually unobtainable due to soaring demand.
At the multi-property sale at the Durban Country Club at 11am In2assets will sell:
Property in a prominent location near the Chris Haniconnaught Bridge interchange in Springfield Park. The premises are currently occupied by cement producer, Lafarge, and will be vacant for use at the end of September 2018.
Another well-positioned industrial property located along Aberdare Drive in Phoenix Industrial Park. The property – also occupied by Lafarge – is ideally positioned next to the Kwamashu Highway interchange.
Two industrial land options in the Mount Edgecombe industrial precinct, west of Umhlanga.
Industrial land is becoming extremely difficult to acquire in Durban, says Carl Kleinhans, business development executive for In2assets in KZN.
“Industrial land scarcity in Durban is now a huge disappointment for potential buyers and developers. There is virtually no suitable land available in Durban’s southern industrial basin in areas like Prospecton, Jacobs and Mobeni. Northwards, the situation is no better.”
Kleinhans says even in newly developed nodes such as Riverhorse Valley there is almost no industrial land available. “Riverhorse Valley has become very popular since the completion of the Queen Nandi Interchange in 2002 which made many industrial players – initially reluctant to operate in what seemed like a barren node along the N2 freeway – think again about locating there. The success of Riverhorse Valley shows the merits of strong marketing and town planning.”
Turning to the properties on auction on April 18, Kleinhans says Springfield Park and Umgeni business parks are close to Riverhorse and have similar convenient access to the N2 freeway, especially since the completion of the Umgeni Interchange in 2015. Phoenix Industrial Park is in a “historically favourite corporate position” because it is close to major trading zones around Durban.
For more details phone 031 574 7600 or visit www.in2assets.com. MARCH 18 2018 ASTUTE property investors scanning the market for acquisitions are seeing a vastly different property landscape from last year, says Norman Raad, chief executive of Broll Auctions and Sales.
Over the past three months the situation has changed significantly, with a new order in government and more optimistic outlook for the year ahead.
“Our auction last month saw a good turnout, with a prime income-producing 1 700m² property in Norwood bought for R18 million by a local investor.
“We believe this year more real estate investment trusts will sell non-core assets, providing an opportunity for property investors,” Raad says.
“However, a key factor is the valuation of these properties. Owner-occupiers are usually prepared to pay more than investors, but nevertheless properties should be valued in line with the finance banks would provide.”
Sales could be delayed because properties have a book value greater than their actual worth.
“Property values need to be corrected. They are currently not in line with what the private sector would pay, hence the drag and lag of property sales and deal finalisation.”