Johannesburg - South Africa is apparently still on the buying lists of big-ticket international property investors, with the historic De Goede Hoop homestead on the Boschendal wine estate in the heart of the Cape winelands snapped up by a foreigner for R23.5m on Monday.
Another two 21-hectare tracts of undeveloped land at Boschendal were sold at the same auction for R10m and R9.5m apiece to local buyers, in line with recent market valuations.
A well-heeled crowd of about 200 attended the auction, which was held on site at Boschendal near Franschoek. The much-anticipated sale of the landmark properties was concluded in less than 10 minutes. All three sales went to cash buyers.
Although Pam Golding Properties (PGP), which jointly sold the properties with the Alliance Group, originally planned to sell another two of Boschendal's crown jewels under the hammer - the Herbert Baker-designed Rhodes Cottage and 400-hectare Bethlehem farm - these were withdrawn shortly before the auction kicked off.
Hot heritage properties
PGP CEO Andrew Golding told Fin24.com the two heritage properties would instead be sold by way of private treaty, as the suspensive conditions required by the auction would have proved too onerous.
Golding said at least three offers have already been submitted for both Rhodes Cottage and Bethlehem farm by a mix of foreign and local investors. He expected the two sales to be closed within the next week at about R25m and R100m respectively.
Golding said the positive response to the Boschendal auction signals a huge vote of confidence in South Africa as a world class property investment destination. He noted that the opportunity to own a piece of such a prestigious estate is extremely rare.
"Discerning investors clearly realise the value proposition offered by iconic properties like these that seldom come onto the market."
The Boschendal estate, which is more than 100 years old and in extent of 2 200 hectares, is jointly owned by Kuwaiti-controlled, but JSE-listed, IFA Hotels & Resorts and mining group JCI.
- Fin24.com