It is one of the larger and more varied commercial auction books to come to market this year. Here is what is in it, and why it appeals to investors.
The commercial book going to auction on 30 July is larger than most. There are thirty-five assets across seven provinces, roughly R370 million of property in total. For anyone who follows South African commercial real estate, it is worth looking at for the range alone, and it says something useful about where parts of the market are heading.
Start with something many investors never see. A good deal of the country’s commercial property never reaches a public listing. It moves quietly, through relationships, before any board goes up. Of the deals struck privately, industry data suggests close to a third fall through before transfer, undone by finance, conditions, or a seller’s second thoughts, and the ones that hold can take six months or longer to conclude. For an asset class that is meant to run on certainty, that is a lot of uncertainty.
Development land across several provinces, from Kathu to Melmoth and Randburg.
This is part of why a large, well-assembled auction book is worth attention. An auction gathers the whole process into a single, transparent event. Every registered bidder sees the same stock on the same day, price is set in the open rather than behind a broker’s door, and the sale is concluded when the hammer falls. There is no drawn-out conditionality, and no third party stepping in quietly weeks later.
Every registered bidder sees the same stock on the same day, and the sale is concluded when the hammer falls.
The 30 July book is a good illustration. Its centre of gravity is a deliberate return to KwaZulu-Natal, with a broad footprint across Richards Bay, Empangeni, Melmoth, Newcastle, Pietermaritzburg, Verulam and others, covering industrial, retail, development land and hospitality. It is a considered re-entry into a province High Street has worked in before, and it anchors a book that reaches from the coast to the Northern Cape.
A return to KwaZulu-Natal, with lots including Port Zimbali.
Alongside the KZN assets sits the segment doing much of the work in commercial property at the moment, which is industrial. It remains the most active class in the market, and the book leads with it, headlined by the Umtata industrial holding and supported by recently concluded deals in the same segment. The retail line-up is just as active, with established centres trading in towns across the country.
Established retail centres feature across the book.
There is also a track record behind the book. High Street holds seven South African auction records, which for a prospective bidder is a reasonable sign that the stock is well chosen, and put in front of a room that consistently transacts.
For an investor, a few things stand out. A book with this much depth and geographic spread does not come along often, and the stronger lots tend to sell first. The format is straightforward, so if the opacity of private deals has put you off before, an auction is among the more transparent ways to buy. And the make-up of the book, weighted towards KZN and industrial, is itself a reasonable read on where value is being created.
Each auction opens with a short briefing on the market. ▶ Watch the briefing
The auction runs on 30 July at Bryanston Country Club, and is live-streamed for buyers who cannot attend in person. The full catalogue is available to browse now, and registration to bid is open. Whether you are looking to buy, or simply to see what the market pays on the day, it is worth following.
See the 30 July book for yourself
Browse the full showcase, or register to bid.
Published on Everything Property, in partnership with The High Street Auction Company (Pty) Ltd
