Building a corporate legacy monument in Sandton that will stand proud for decades is considered by most to be a pipe dream nowadays, because rapid expansion of the core business node has caused a dearth of land.
This is why the 1.5-hectare 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.
Lance Chalwin-Milton, joint managing director of HSA, 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 li le 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.
“On August 22, HSA will offer bidders two adjacent properties on the main ar- terial of Katherine Street, where redevelopment sites are now almost nonexistent.
“The combined land area of 104 and 106 Katherine Street is already a substantial 5 421m2, 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.
“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 notes that Sandton offers the second largest supply of office space in Johannesburg a er the CBD, with a total of 1 500 860m2.
The node is dominated by high-quality buildings with Grade A space accounting for 51% of total office stock in the node, fol- lowed by Grade P offices at 34%.
The weighted average office rental of the node is currently at R177p/m2, domi- nated by the average rental rate for Grade A buildings at R157p/m2.
Chalwin-Milton says the two Katherine Street lots will be auctioned separately, and a town planner’s opinion is that per- mission could be obtained for a building seven storeys or taller comprising com- mercial or residential units, especially since the lots are on the Rea Vaya rapid transit route.
The Sandton lots comprise two of some 30 varied properties that will go under the hammer of lead auctioneer Joff van Reenen at Summer Place in Hyde Park at noon on August 22.
Among the other premium lots on offer are a 20 000m2 industrial hub bordered by Eloff, Loveday and Sto streets in Johan-
nesburg with redevelopment potential for a 10-storey residential block, a com- mercial 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 828m2.
Lucrative residential investment op- portunities include 20 one- to three-bed- room apartments in Killarney in a tidy, fully let 35-unit block that can be pur- chased 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.
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 deluxe seafront boutique accommodation in the West Coast village of Melkbosstrand on the out- skirts of Cape Town.
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 balance of the purchase price will be due in 30 business days of acceptance of the offer.
The highest bidder on the day will pay an immediate deposit of 16.4% (5% deposit, 10% buyer’s premium & VAT).