Buyers seek income from Property

Auctioneer Paul Winterstein said it was noticeable that there had been a shift in sentiment from cash holdings in banks to investment in property.

Auction Inc launched its auction year yesterday with a lively and well-attended sale that attracted serious buyers of income-earning properties.

Buyers vied for the wide choice of shopping centres and retail strips in lively bidding.

Auctioneer Paul Winterstein said it was noticeable that there had been a shift in sentiment from cash holdings in banks to investment in property.

“Leaving money in banks is not working, whereas property has held its own, offering income and capital gains,” he said.

“Buyers are looking for realistic values and sellers are accepting more realistic prices.”

First under the hammer was a shopping centre on Bram Fischer Road, Randburg, which fetched R12m. The complex, on the main shopping strip in Randburg, has national retail tenants. The twostorey building has a gross lettable area of 2,333m² that includes basement offices. It is described as having “excellent upside”.

In Witbank, a well-positioned multi-tenanted shopping complex, opposite a taxi rank, with a gross lettable area of 4,289m² on a stand of 9,200m² as well as extra bulk of 2,000m², fetched R11.25m.

An interesting offer was a warehouse and vehicle storage facility in Vulcania, Brakpan. The complex, with a national tenant, has a gross lettable area of 5,000m² on a stand of 14,732m² It was knocked down for R5m.

A Benoni guesthouse has the potential to be a sanatorium, medical suites, an upmarket residence, hotel or retirement home.

The 54-room building has easy access to OR Tambo International Airport. It fetched R5.5m.

A business development site of 4,945m² at Alveda, in Johannesburg South, fetched R1.25m.

Another opportunity in Benoni was a building with a gross lettable area of 1,700m², offering space for two workshops, five offices and a 900m² storage facility. It received a final bid of R2.2m.

A Boksburg residential site approved for 144 sectional units fetched R2.8m.

The 17,361m² property has all services in place.

A neat, fully let building on a corner stand on Louis Botha Avenue, Orange Grove, received a top bid of R6.9m. The complex has 18 flats and nine shops, offering an income of R1.7m a year.

An impressive two-storey Heidelberg shopping centre with national tenants was knocked down for R13.5m. It has a gross lettable area of 4,040m² on a 6,200m² stand.

A landmark building with double main road exposure in Alberton North, known as the old Squeeze-In, attracted competitive bidding. The 990m² building fetched R3.5m.

What is described as “unique highway development land” earmarked for high-density residential purposes received a top bid of R4m. The 5.7ha stand at Elandshaven, Germiston, has N12 and N17 highway frontage. It has been zoned for 80 units per hectare, or for self-storage, commercial or billboard use.

An Evander shopping centre with Shoprite as anchor tenant, whose lease lasts until 2022, has a gross lettable area of 7,783m² on a stand of 32,000m² A R13.5m revamp has been completed. It fetched R31m, the highest price at the auction.

Two lots were withdrawn. One was a self-storage facility at Melodie in Hartbeespoort.

The facility has 112 units earning R1.1m a year with a future potential of R2.6m a year.

A mixed-use retail strip at La Rochelle Johannesburg failed to attract bids and was passed over.