Building a corporate legacy monument in Sandton that’ll stand proud for decades is considered by most to be a pipe dream nowadays as rapid expansion of the core business node has caused a dearth of land.
Lance Chalwin-Milton, joint managing director of HSA, says this is why the 1.5ha land assembly fronting onto the highly-desirable address of Katherine Street that the High Street Auction Co. (HSA) will offer in its multi-property August sale is a once-in-a-lifetime opportunity for developers and corporates looking for an expansive property on which to erect a structure of substance.
This prime development property in Sandton has existing offices will be auctioned on 22 August - click here to view.Chalwin-Milton says decades of rampant development in the suburb that is Southern Africa’s economic powerhouse - now home to the JSE, scores of national corporate headquarters and an almost equal number of international enterprises - has created the continent’s undisputed ‘richest square mile’.
“Greenfield land in Sandton, that half a century ago comprised little more than rambling smallholdings inhabited by the city’s equestrian fraternity, is long gone, and redevelopment sites are increasingly scarce and invariably small. This severely limits the scope of new builds,” says Chalwin-Milton.
He says on August 22, HSA will offer bidders two adjacent properties on the main arterial of Katherine Street, where redevelopment sites are now almost non-existent.
“The combined land area of 104 and 106 Katherine Street is already a substantial 5 421sqm, but a far greater opportunity exists for serious developers, because we have been mandated to offer the successful bidder the chance to purchase a private land assembly comprising two even larger parcels of adjoining property that stretch all the way back to Wierda Road,” says Chalwin-Milton.
“In the current market the four lots make up an unprecedented parcel of development land, especially since it fronts onto one of Sandton’s most desirable roads.”
Chalwin-Milton says Sandton offers the second largest supply of office space in Johannesburg after the CBD, with a total of 1 500 860sqm. The node is dominated by high-quality buildings with Grade A space accounting for 51% of total office stock in the node, followed by Grade P offices at 34%.
The weighted average office rental of the node is currently at R177 per square metre, dominated by the average rental rate for Grade A buildings at R157 per square metre, says Chalwin-Milton.
He says the two Katherine Street lots will be auctioned separately, and a town planner’s opinion is that permission could be obtained for a building seven-storey or taller property comprising commercial or residential units, especially since the lots are on the Rea Vaya rapid transit route.
Chalwin-Milton says the Sandton lots are two of some 30 varied properties that will go under lead auctioneer Joff van Reenen’s hammer at Summer Place in Hyde Park on 22 August.
He says among the other premium lots on offer are a 20 000sqm industrial hub bordered by Eloff, Loveday and Stott streets in Johannesburg with redevelopment potential for a 10-storey residential block, a commercial property in Kempton Park ideal for redevelopment into an educational institution and an immaculate showroom and workshop on the busy Rachel de Beer Street in Pretoria North, along with the three adjoining stands. The combined stand size of this prize lot is 3 828sqm.
Lucrative residential investment opportunities include 20 one- to three-bedroom apartments in Killarney in a tidy, fully-let 35-unit block that can be purchased as individual units, clusters or one lot, and 23 two- and three-bedroom sectional title units in a modern block in Homestead Park, which offers an easy commute into Newtown and the CBD, says Chalwin-Milton.
He says two guesthouses located at opposite ends of the country will also go under the hammer. One is a four-star property in Polokwane with conferencing facilities for 50 delegates, and the other a deluxe seafront boutique accommodation in the West Coast village of Melkbosstrand on the outskirts of Cape Town.
Chalwin-Milton says bidders wishing to participate in the auction are required to pay a refundable registration deposit of R50 000 and present FICA documents prior to the sale. The highest bidder on the day will pay an immediate deposit of 16.4% (5% deposit, 10% buyer’s premium & VAT). The balance of the purchase price will be due within 30 business days of acceptance of the offer.
For more information or to view the property, click here.
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