Alliance Group stood witness as the atmosphere in the auction room at the
Table Bay Hotel on Thursday 21 August proved that the energy in the market
is back and sentiment has turned for the positive.
Eight properties were brought to the Cape auction floor, and what was
evident, "Was the quality of bidders, the serious nature of bidding and the
full attendance", comments Gary Palmer, MD of Alliance Group's Cape region.
"Registered today in Cape Town was the highest number of buyers that we have
seen in months", continued Palmer, "showing a tangible move towards
Gauteng's recent reaction that the tide has turned".
Stellar results included The Stanhope Building in Claremont Main Rd knocked
down for R26.95m million all in and confirmed on the floor by the seller.
Keeping the pace came the Sentrasure House property, centrally located on
Market and Main Rd in Paarl. "Interest had been strong, and clients really
spent the campaign time to fully analyze the property and its potential, so
that they were completely prepared at time of bidding today", remarked
Ariella Kuper, Head of Corporate Sales for Alliance. The final price was
Out of the same institutional portfolio was a boutique shopping centre,
strategically located on Old Paarl Road in Brackenfell which went for
R21.725 million all in. "As the centre is fully let with the anchor tenant
having just renewed his lease, we expected a strong interest and result",
continued Kuper. Two further confirmed knockdowns at the auction were a
prime industrial factory in Killarney Gardens which was confirmed on the
floor at R3.74 million all in. The second one was the Pick n Pay centre in
Mitchell's Plain whose lease runs through to 2015 and achieved R12.65
million all in.
In Gauteng, Alliance hosted a similar multiple auction of 33 properties and
recorded a breaking title for the largest number of shopping centers' sold
in one auction in South Africa to date, confirmed CEO Rael Levitt.
Stellar results were achieved with Dowerglen Plaza, a neighbourhood shopping
centre on Sycamore Street in Edenvale, which was sold for a staggering
R26.95 million after intense and aggressive bidding. 83 Heidelberg Street in
City Deep, a warehouse and workshop yard, resulted in another marathon
bidding session achieving a fantastic price of R18.7 million. A block of 84
flats in West Turfontein also achieved good results going under the hammer
for R12.5 million.
Ariella Kuper of Alliance Group comments, ''The auction room was entirely
packed - people had to stand outside. We have achieved excellent results
recently which gives an indication that the tide is indeed turning''.
Overall the results proved that buyers and sellers are quickly aligning
their expectations. The next Cape Alliance Group commercial property auction
will be held on 18 September 2008. See the press or www.alliancegroup.co.za
for more details