Bradley Stephens, MD of Broll Auctions and Sales.
This month, at noon on Thursday 26 March 2015, the newly formed Broll Auctions and Sales will hold its first multiple property auction at The Wanders Club in Illovo, Johannesburg.
With a variety of 20 commercial properties to go under the hammer, this event will incorporate a sizeable component of attractive retail space, says Norman Raad, founder and director of Broll Auctions and Sales.
Comprising a total of 40 000 square metres of predominantly retail and office – and some industrial space, the properties are situated mainly in major centres and economic hubs in Gauteng, as well as in Middelburg, Port Elizabeth, Newcastle and Barberton, among others. They incorporate prime, mixed-use development opportunities as well as properties with blue-chip tenants in place, including the likes of Pick n Pay, Absa, Tiger Wheel and Tyre, Standard Bank and Nedbank. The auction will include over 22 000sqm of retail space.
Says Raad: “The headline property is a neighbourhood shopping centre well positioned in Middelburg CBD in Mpumalanga, which comprises a gross lettable area (GLA) of 7622sqm and has national tenants in place, including Pick n Pay. In the heart of the prime Linden strip in Johannesburg, a mixed-use commercial property incorporating both residential and retail components offers a prime development opportunity for any prospective purchaser, while in Silverton in Pretoria a retail and office complex with a blue chip tenant offers an extremely attractive income stream. Other properties comprising GLAs of 3395sqm and 2868sqm respectively are situated in high traffic, well-established hubs in Krugersdorp and Vanderbijlpark CBD. A common denominator of all these properties is the prime location and income yield – or potential.”
Bradley Stephens, MD of Broll Auctions and Sales, says auctions have become the accepted norm for the disposal of commercial property by virtue of efficiency and market reach. “There’s really no better way to extract the true value of a property. The time factor is critical, and new, innovative ways of marketing properties ensure that these properties on auction are exposed to a focused target market in a short space of time.
“Auctions also allows buyers from around the country to participate without actually being present, with a mechanism which creates finality and enables the successful conclusion of a number of transactions. So in the total space of four to six weeks, from commencement of marketing to auction date, we are able to give sellers a cash, non-suspensive offer in an environment that extracts maximum value from the property. The purchaser places a value on the potential they see in the property, and we in essence, sell an opportunity in property.”
Broll Auctions and Sales is a recently formed JV partnership between Broll Property Group and Greenday Property, which specialises in property auctions, tenders and private treaty sales.
With 40 years of experience and a professional track record, Broll is an affiliate of CBRE, a renowned global commercial real estate and investment firm, while Greenday Property was established in 2011 by Norman Raad, who has been one of the top performing commercial brokers in South Africa over the last 10 years.
Properties sold by Greenday include some of the country’s largest property auction deals, achieving prices of R29 million for a commercial building in Sandton, R23 million for a commercial property in Eastgate, Johannesburg, R23.5 million for an industrial building in Johannesburg CBD, R20 million for a large industrial site in Randvaal, Gauteng and R17 million for a large warehouse in Durban.
Adds Raad: “With Broll Property Group’s infrastructure in virtually every city and town in South Africa, coupled with extensive representation across the continent, we are able to tap into an extensive database that has effective reach throughout the country and the rest of Africa.
“This allows Broll Auctions and Sales to plug into all the service offerings the group has to offer – including and not limited to property management, corporate real estate advisory services, and most importantly, it provides clients with another alternative service offering to dispose of properties and achieve a sound market-related return. In essence, this is another trusted sales solution from a trusted brand. As a result we firmly believe that the platform we now provide will extract maximum value for sellers.”
Interested buyers can arrange a personalised viewing of the properties on auction, and either pre-register prior to the auction or register on the day. A registration fee of R50 000 is required either by EFT or bank guarantee cheque which is refundable after the auction.