PROPERTY: Resilience Prevails Across Various Sectors Of the Property Auction Market
Recent Gauteng Business News
During what may be described as a tumultuous 2016 to date, while trading conditions in the property auction arena have proven challenging, retail shopping centres, service stations, hotels and residential blocks have shown resilience throughout this period and are still in strong demand.
So says Norman Raad, CEO of Broll Auctions and Sales, commenting ahead of their final auction for the year which takes place at noon on Wednesday 23 November 2016 at the Wanderers Club in Johannesburg.
“Economic and socio-political issues have made this a difficult year for the market to say the least. We have witnessed sellers accepting less than they would have liked and savvy buyers seizing the opportunities presented, which includes multi-national companies disposing of large non-core business assets and non-income producing assets.
“Properties which should attract good public interest and which will be on the next auction include a number of well maintained hospitality establishments – all in pristine condition, well situated in commercial hubs in various regions around the country, as well as a strategically ideally positioned redevelopment property in Oxford Road in Rosebank, Johannesburg.”
With 50 percent occupancy the 4 Star Villas Luxury Suite Hotel in Arcadia, Pretoria, comprises 90 hotel suites, 26 of which are self contained, plus conference facilities and a restaurant. Being well located across the road from the government Union Buildings, this landmark property is well patronised by travelling government officials and has strong local conferencing support.
Says Raad: “Each room is spacious and in pristine condition. Should the successful bidder not wish to retain the hotel as a going concern, they may choose to apply for rezoning to convert the use to longer term residential dwellings or a retirement facility.”
The appealing Cape Dutch style Oakhurst Hotel is in the CBD of George on the Western Cape Garden Route. With 4 Stars this 26-room establishment is just off York Street and has a fully functional restaurant. The hotel has occupancy of just over 50 percent at a competitive average rate of R1 300 per night including breakfast and dinner. Says Raad: “The busy town of George is one of the most sought after destinations in South Africa, providing huge potential for the hotel to capitalise on golf enthusiasts and tourists who don’t have the budget for the more expensive hotels”
The third hospitality property is the Evander Villas Hotel and Conference Centre which supports a gold mining town which has begun to show life after some difficult times. Situated just north west of Secunda in Mpumalanga, new shopping centres have been built in Evander, enhancing amenities for visitors, local residents and those from neighbouring areas.
A highlight of the forthcoming auction is a prime site which faces onto busy Oxford Road in Rosebank, Johannesburg. “Over the past five years this has been one of the most sought after areas in South Africa, with high rise buildings going up on every corner in terms of the new urban development plan. Growthpoint, Redefine, Old Mutual and Barrows have significant investment in Rosebank and plans are to develop the available bulk on the sites available. There has also been a move to develop high density accommodation with close proximity to the Gautrain and centrally located close to the main business districts.”
Adds Raad:“Conveniently positioned between JHB CBD and Sandton, Rosebank is therefore in strong demand, with new developments along Oxford Road changing the landscape of this well established and trendy area.”
Comprising in excess of 4 000sqm at the junction of Jellicoe and Oxford Road, the property on auction through Broll Auctions and Sales is one of the best, well located properties on Oxford Road. The site has five existing spacious townhouse clusters from which it derives income as well as advertising which faces directly onto bustling Oxford Road.
Says Raad: “The property is in the process of being rezoned for a 20-storey residential development, with the zoning application having gone through the first process and supported by all town planning departments. The process is about a year away from rezoning approval and has a bulk of 57 000sqm which may be reduced when the final council plans are submitted. With only a few available sites in Rosebank this is a rare opportunity for redevelopment.”
Business News Sector Tags: Property|