Please note that you are using an outdated version of Internet Explorer which is not compatible with some elements of the site. We strongly urge you to update to a newer version for optimal browsing experience.

Corporate disposal: 7 Shoprite buildings going on auction

04 Sep 2018

Shoprite Holdings has just completed a review of its property portfolio and as part of its restructure, on 12 September it will be auctioning seven non-core retail centres, all with anchor tenant leases to be concluded at the time of transfer following their sale by High Street Auctions (HSA).

This multi-tenanted Shoprite shopping complex in Bellville, Cape Town, will go on auction on 12 September 2018 - click here to view.

Anchor tenants in these centres are Shoprite stores, Shoprite Liquor Stores or U-Save stores.

Lance Chalwin-Milton, Joint Managing Director of HSA, says this portfolio auction indicates there is no loss in market appetite for retail centres - a trend that started early in 2017.

“In just about every auction that High Street has conducted since the beginning of last year we’ve had at least one, and frequently more, retail offerings in our catalogues. Prior to this, retail centres were like hen’s teeth - one simply didn’t see them come to market,” he says.

“This is the first foray into the retail property auction space by a titan such as Shoprite since this property trend shifted into its most recent J-curve, though, and we welcome the move that indicates the group’s confidence in the auction model to reshuffle its current property portfolio.”

The seven Shoprite retail properties that will go under the HSA hammer on 12 September 2018 are spread across three provinces, with five of them concentrated in the Western Cape.

This freestanding Shoprite supermarket in Woodstock, Cape Town, will go on auction on 12 September 2018 - click here to view.

The group has already successfully disposed of one Western Cape property in partnership with High Street Auctions, notes Chalwin-Milton.

“In High Street’s July auction, we successfully sold the a commercial building owned by Shoprite in Lady Grey Street, Paarl, for R25.5 million, and we have no doubt the Shoprite retail properties that go under the hammer next month will be equally well received by investors.”

The Shoprite Corporate Disposal Lots in the Western Cape in September are:

1. Belville

The street-facing Shopite Centre is in the bustling heart of Voortrekker Road in Bellville. The centre, located at No 147, covers a gross land area (GLA) of approximately 5 500sqm, and falls within the footprint of the area’s active City Improvement District that is a major catalyst for commercial business resurgence. It is located just a short distance off the major arterial of the N1 - click here to view.

2. Parow

Just a little further along Voortrekker Road in Parow is another of the retail centres going on auction. This one houses a Shoprite, a Shoprite Liquor Store and a Hungry Lion, among other tenants. The centre has a GLA of 4 660sqm and is the local retail centre that services the busy suburb of Parow - click here to view.

3. Woodstock

The freestanding Shoprite supermarket in Victoria Road, Woodstock, is also the retail heart of that community, and the store with the street-fronted entrance is busy from open to close. The property has a GLA of1 122sqm - click here to view.

4. Strand Central

The final Cape Town Shoprite property is located at 11 Abegglen Street in Strand Central. It is one of the busiest supermarkets in the small coastal hub, with a GLA of 2 517sqm - click here to view.

5. Vredenburg

The freestanding Shoprite supermarket on the corner of Main and Market Streets in Vredenburg acts as the main retail offering for this busy West Coast town. The property has a GLA of 2 287sqm - click here to view.

Moving across the country, the remaining Shoprite retail offerings to be auctioned by HSA are:

6. Kathu

The Shoprite Centre at the corner of Rietbok Street and Ben Alberts Way in Kathu in the Northern Cape. Kathu is a bustling mining town home to one of the five largest open-cast iron ore mining operations in the world. The portion of the centre owned by Shoprite has a GLA of 4 148sqm - click here to view.

7. Kroonstad

The Shoprite U-Save located at 31 Brand Street in Kroonstad in the Free State. The building has a GLA of 1 711sqm - click here to view.

HSA Lead Auctioneer and Director, Joff van Reenen, says corporate asset adjustment occurs through all economic cycles.

“Asset registers are assessed frequently for surpluses or redundancies, and especially in economic downturns the speed at which a property can be sold at auction compared to through traditional brokers is something corporates find very attractive,” says Van Reenen.

“The sales model also better serves their needs - once the hammer falls it is standard for the full purchase price to be paid within a month. The transparency, agility and speed are a transactional triangle that works for boards and shareholders, and this triangle is among the reasons many of our clients have been with us for years.

“Buyers also benefit because they can acquire assets at fair market value as determined by demand on the day, and there are frequently exceptionally good deals to be found.”

This freestanding Shoprite supermarket in Woodstock, Cape Town, will go on auction on 12 September 2018 - click here to view.

Chalwin-Milton says the showcase Western Cape Shoprite portfolio of five retail centres in the September sale has also set in motion the first of what will become regular features of HSA auction days - dual sales rooms in Johannesburg and Cape Town.

“We road-tested the concept of dual venues when we broke South Africa’s residential auction record by more than R30 million in November 2016 with the sale of a lavish villa in Clifton. The final sale price on that property was R96 million, and the buyer wasn’t on the auction floor in Summer Place, but rather bidding from inside the Cape Town villa while watching a livestream of the auction taking place in Johannesburg,” he says.

“Since then we’ve livestreamed myriad auctions to venues across the country, and for serious bidders we’re convinced it’s a format that works.”

The auction that starts at noon on 12 September will be livestreamed to the Table Bay Hotel in the V&A Waterfront, and registered bidders will be able to call on the experience of High Street’s staff to ensure their bids are relayed to the auctioneer timeously and concisely.

“Being at a central High Street Auctions venue ensures that serious investors have the hands-on assistance of expert auction house representatives, and that they’ll remain in the race to the finish line,” says Chalwin-Milton.

Print Print
Top Articles
Longing for scenic tranquillity? These bushveld homes in Hoedspruit and Bela Bela offer a relaxing break away from the hustle and bustle of city life…

From modern chic to serene oasis, these homes in Blairgowrie offer great value for money with prices starting from R2.22m up to R6m…

With prices from under R3m, these homes in upmarket Pretoria East estates offer convenient family living. From The Ridge to The Meadows and more, take a peek…

Loading

Your browser is out of date!

It looks like you are using an outdated version of Internet Explorer.

If you are using Internet Explorer 8 or higher, please verify that your Internet Explorer compatibility view settings are not enabled.

For the best browsing experience, update to the latest Version of Internet Explorer or try out Google Chrome or Mozilla Firefox.


Please contact our Property24 Support Team for further assistance. Tel. +27 (0)861 111 724