Share

E Cape malls under the hammer

Johannesburg - The Eastern Cape will see its largest ever auctions in early May with two shopping centres coming under the hammer after the collapse of the King Financial Services investment scheme.

The company responsible for the R300m King's Court centre in Port Elizabeth and the R120m King's Mall in East London was placed under provisional liquidation on July 21 by the Cape Town High Court, Auction Alliance said in a statement on Monday.

This followed an investigation by the Financial Services Board.

Liquidators Sanek Trust and Independent Recovery Services were appointed and have been managing the centres.

According to the auctioneers, these are the highest value auctions which have ever taken place in the Eastern Cape.

"We have received a flood of enquiries, after marketing began over the weekend," Auction Alliance's Mike Bosch said.

Tenant of the malls include Pick n Pay, Clicks, PEP, KFC and various banks.

In Gonubie, Eastern Cape, the mall's biggest tenant, Götz von Westernhagen who owns the anchor Spar store and upmarket Deli Barons Select, said the sale of the mall would have no effect on lease agreements.

"We are selling both shopping centres with all the leases fully in place," Auctioneer Rael Levitt of Auction Alliance said.

"Tenants are secure and the sale of the centres will give clarity, finality and direction with new owners taking over within the next month."

King's Mall in Gonubie opened in 2007 and is built on a five hectare site with over 15 000 square metres of space including 44 retail shops, 745 parking bays and 332 storage units.

"Despite a 40% vacancy factor the centre still produces an annual income of over R9m a year and thus listed funds are interested in acquiring this income in a low interest rate environment," Bosch said.

The King's Court Shopping Centre in Walmer, Port Elizabeth has a retail component of almost 14 000 square metres, with 392 storage units and a gross income of over R10m.

- Sapa

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.92
+0.1%
Rand - Pound
23.88
+0.1%
Rand - Euro
20.39
+0.2%
Rand - Aus dollar
12.32
+0.1%
Rand - Yen
0.13
+0.0%
Platinum
908.05
+1.2%
Palladium
1,014.94
+1.3%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders