Weekend Argus (Saturday Edition)
Redevelopment sites on auction in Gauteng set to offer huge potential
PRIME sites with high exposure and well suited to the development of offices or retail are not often available for sale, particularly strategically positioned sites that have not changed hands for many years, according to Norman Raad, chief executive of Broll Auctions and Sales.
He says that Broll will be auctioning two versatile development sites and a warehouse, among other properties, at noon on February 25 at the Wanderers Club in Johannesburg.
“The properties in Parkwood in Johannesburg and Hurleyvale on the East Rand are ideal for head offices, showrooms or retail development, and their redevelopment potential is almost unlimited as they offer huge exposure to thousands of passing vehicles every day. They form part of a corporate disposal where corporate governance and regulation dictates they must go to auction.”
Situated in Jan Smuts Avenue, with Rosebank, Melrose, Saxonwold and Parkview in the immediate vicinity, the Parkwood redevelopment opportunity comprises three adjacent stands with a total of 3 123m².
The Hurleyvale site consists of three adjacent erven totalling 3 353m² and is zoned for residential use. However, Raad says indications are that conversion to business 1 zoning would not pose any issues as this is one of the last non-business zoned sites in the vicinity, in St Anne Road which is the main road in Edenvale and with high exposure to busy Van Riebeeck Avenue.
“There are five unfinished structures which can be renovated for residential use or alternatively rezoning would enable the accommodation of three small businesses with good size yards, ideal for owner-occupiers,” says Raad.
The warehouse in Middelburg, Mpumalanga has a gross lettable area of 12 972m² on a 3.14-hectare erf on a main road in an area between Johannesburg and Nelspruit.
“This is a strategically strong location, with high-density passing traffic and four retail tenants, including a restaurant. One of the tenants is vacating the property at the end of April, presenting an opportunity for an owner-occupier. The property can be used for storage, distribution or warehousing and is ideal as a base for main retailers servicing the Mpumalanga area,” says Raad.
Raad says although the commercial property market will be tough this year, it presents opportunities for shrewd buyers to make acquisitions such as these, particularly as sellers’ expectations become more flexible and realistic.
“We believe that apart from the obvious appeal of wellpriced and well-situated properties across all sectors, retail centres and fuel stations will be sought after. Sellers who face some funding constraints may try to reduce their exposure and sell off some of their assets, but the market will not be running to pay low yields for anything this year, especially with the uncertainty as to when interest rates will stabilise.”
Call Bradley Stephens on 087 700 8269 or 082 443 7731 or email bstephens@broll.co.za.