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Cape Town - Property investors are gearing up for the sale of one of Kwa-Zulu Natal’s largest retail properties which is set to come under the hammer on 23 August 2017.
The property, which is being taken to the market due to the seller consolidating assets, offers investors the opportunity to purchase a well-tenanted mall with leading brands on long-term leases.
Accordingly to Greg Nafte, co-director of Nexus Property Group, the uShaka Mall has developed into a desirable investment among property owners as it’s a secure asset with guaranteed returns due to its strong tenant mix.
The gross annual rental income for this property is over R7.5m, which excludes recoveries for operating expenses.
“In terms of obtaining finance for a property of this stature, it becomes a lot easier to get funding from banks when you’re able show them that large retail chains are invested in the property too. The mall will also always be a valuable asset as it services the local community’s needs,” said Nafte.
The mall boasts an erf size of 2 1128 hectares with a gross lettable area of around 8 700m². The mall is currently 95% occupied and includes a strong mix of stable tenants including CashBuild, Clicks, Telkom, Crazy Store and Cell C as well as anchor tenant, Pick n Pay, which has a lease in place until 2026, after which there be three options to extend for five year periods.”
When discussing how the method of sale was decided upon, Nafte says that an auction was deemed the best method as it brings finality to sale and gives all prospective buyers a fair chance to submit their bids. All due diligence information is available on request.
Elias Tzouvanni, co-director at Nexus Property Group and auctioneer of the mall, told Fin24 a market already exists for high-quality mall like this.
"These kinds of malls do not come on the market very often. The centre was developed by a gentleman who passed away a couple of years ago. So, the property is not the core business for family," he said.
"This is a high-demand asset. There is still demand for the right retail property in the right area. This centre is nice size that caters for the local market."
Industrial
Nexus Property Group also recently received instruction to sell a large industrial warehouse in Stanger Industrial as part of a family portfolio sale.
The property, located at 11 Smithers Road in Stanger, is being sold via auction and is coming to the market for the first time in 15 years. The auction will take place on 1 August 2017.
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