select
|

Hammer drops on Tshwane's Mayoral Mansion for R5.1 million

Tshwane’s four-bedroom Mayoral mansion, nestled among ambassadorial residences in the upmarket suburb of Muckleneuk, fetched R5.1 million after spirited bidding at High Street Auctions’ final sale of the year.



And Tshwane Mayor Solly Msimanga was at Summer Place to witness the final disposal of a scandal-plagued city “asset” that has been the subject of a corruption probe relating to the previous administration’s R12 million “upgrade” to the property.

In a South African metro first, Tshwane’s full council voted recently to dispose of the opulent property in which Msimanga has refused to live. Among the reasons cited were the substantial cost to ratepayers of maintaining the property and the council’s desire to utilise the funds for the construction of low income housing.

Joff van Reenen, Lead Auctioneer and Director of High Street Auctions, says the company has previously worked closely with the City of Tshwane to quickly and successfully convert non-performing core assets to cash. High Street was therefore delighted to resume the relationship – especially with such a centrepiece property.

Addressing a packed sales floor prior to the auction, Msimanga made a plea for bidder generosity, explaining that he had already committed the money to housing for the people of Tshwane.

“Whatever we can get – R5m or more, we’d be grateful.”

Van Reenen then stepped onto the block and encouraged the fierce bidding; finally dropping the hammer at R5.1m in a sale that – in total – took less than two minutes to conclude.

The buyer of the property wishes to remain anonymous, but mentioned the property was an “investment purchase.”

Addressing the media after the auction, Msimanga said: “The house was previously valued so we knew roughly what we would get at auction.

“This money will allow at least 40 less fortunate families to have decent roofs over their head.”

Msimanga says the City of Tshwane has not yet decided whether to allocate all the funds to one area or split the proceeds across several regions, but “we intend to be able to take media on a tour of the building sites before the end of the City’s financial year (mid-2018).”

High Street Auctions Joint Managing Director Lance Chalwin Milton says auctions are a preferred method for government, state-owned enterprises and large corporates such as Property Funds to divest of non-core assets because of the transparency and the fair market value achieved on the day.

“We can achieve in a matter of minutes what a tender process or broker does in six months or more; it’s sales on steroids and delivers fast and satisfactory results.”

The Tshwane Mayoral Residence was among approximately R1 billion’s worth of property that fell under the High Street Auctions hammer in November, setting a new record for the company.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 15 Jun 2018
      The second quarter of 2018 has proven to be the turning point for Midrand’s real estate market, especially the upper end which started to waver towards the end of a tumultuous 2017 with a notable drop in both sales and average selling prices.
    • 15 Jun 2018
      According to data recently released by FNB, the average age of a South African home buyer has increased from 38 to 44 this year. In an attempt to help first-time buyers enter the market sooner, Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, walks us through the steps of saving for your first home.
    • 15 Jun 2018
      Putting your house on the market can be a stressful process. There are so many decisions to make that will impact how quickly your house is sold and for how much you can sell it for. It’s a serious money game where you can’t afford to make the wrong decision.
    • 14 Jun 2018
      The word tourist describes someone who is visiting South Africa for a limited time and is probably not going to buy a property here – so why is the tourism industry so important to the real estate sector?
    • 14 Jun 2018
      Serengeti Estates has entrenched its status as one of Johannesburg’s most desirable addresses for a spectrum of homeowners with its launch of The Signature Residences, a new cluster village.
    • 14 Jun 2018
      Keen interest shown at an international event in Hamburg last month has revealed that German investors have a surprisingly healthy appetite for South African real estate, especially those in the market for retirement properties.
    • 13 Jun 2018
      Well located urban properties, from that convenient city pad to the family townhouse or the coveted buy-to-let property can provide buyers with great investment returns over the long term. This is according to Fine & Country which have a number of offices in Johannesburg specialising in the sale of urban properties.
    • 13 Jun 2018
      A R200 million 51-unit luxury apartment project on a vacant lot at 169 Main Road Green Point places the capstone on the radical transformation of the stretch between de Waterkant and Glengariff Road.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK