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Guest lodge in Sandown to be auctioned

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19 Aug 2011

Prime property Marion Lodge situated in the residential hub of Sandown in Johannesburg will be auctioned lock, stock and barrel on 30 August.

Marion Lodge on 15a Marion Street, Sandown in Johannesburg will go under the hammer.

Auctioneers say the successful bidder will walk into an existing business with enormous potential to make it even more successful.

“The nett monthly income is in the region of R70 000 and the lodge enjoys an 80 percent occupancy,” says Bryan Collett, senior property broker at Aucor.

He urges serious investors wishing to buy an existing investment property showing strong profitability and with a significant potential to increase turnover to look no further than this four-star guest lodge.

The property is approximately 15 years old and is in excellent condition. It is owned by Neda Property Trust and they selling in order to invest in a bigger venture (150 bed hotel) says Collett.

Marion Lodge is located next to the Grayston Primary School, 200 metres from Investec and McDonalds on Grayston Drive and a stone’s throw away from the Village Walk Shopping Centre,  Sandton City, the Johannesburg Stock Exchange, Rand Merchant Bank and Nedbank.

The upmarket lodge offers 10 rooms ranging from executive single rooms, elegant double rooms, a deluxe suite, all of which have beautiful en-suite bathrooms and a master suite with an en-suite bathroom boasting a marble jacuzzi and sauna shower.

“There are approved plans to build another eight rooms thus further increasing potential revenue,” Collett.

Entrance Hall.

Asked about the state of the auction market currently, Collett says it is very much a buyers’ market and a positive environment for investors.

He explains that Aucor enjoys good attendance and serious bidding at auctions by investors who want to add to their property portfolios. At times, he says, it is first-time buyers who love property investments. Sellers too, are said to be accepting realistic offers based on true market value.

“Marion Lodge is valued at R10.5 million (including all furnishings) and bidding will probably start in the region of R5 million,” says Collett.

According to Colin Young, managing director of Nine Cubed Group a Cape Town based investment property management company, the property market is very tight at the moment.

“Sellers are holding onto low cap rates and banks are still slow to grant loans due to lower loan to value ratios thereby insisting on more equity being injected,” says Young.

He explains that with commercial property, vacancies are increasing. As a result, smaller retailers in particular are suffering as consumers in some instances are holding back their retail spend.

Guest lounge.

However, he notes that the middle market (LSM 3 -6), retailers are enjoying growth and good deals are hard to find currently. – Denise Mhlanga

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