BidX1, the digital property investment platform, and joint selling agent JLL, have been appointed by Redefine Properties Limited to sell five value-add industrial assets, previously occupied by Macsteel.
The properties, which are suited to light and heavy manufacturing but would also be suitable as distribution or storage centres, can be sold in one or more lots.
Located throughout South Africa – in Vanderbijlpark, Rustenburg, Kimberley, Queenstown and Germiston – all the properties are situated within established industrial hubs which benefit from excellent accessibility to transport links.
Says David Murphy, Head of Commercial Property at BidX1: “The launch of these assets to market provides investors with an opportunity to acquire a resilient asset class underpinned by strong fundamentals, located in major rural and urban industrial centres which benefit from strong demand and high occupancy levels.
“The assets that are being sold with leases in place provide an attractive de-risked income stream, while the buildings being offered with vacant possession offer either owner-occupiers or value-add investors an opportunity to expand into key rural locations across South Africa.
“The buildings have been well-maintained by a blue-chip occupier and leading REIT, which adopts international best practices in regard to property maintenance and management.”
BidX1 and JLL have commenced a structured six-week Private Treaty sale process, during which potential purchasers can submit offers via BidX1’s digital platform.
Guide prices on the portfolio range from R107 000 000 for a warehouse with office accommodation in Germiston, Gauteng with a total GLA of 24 128sqm, and R10 700 000 for a more modestly sized warehouse with storage facilities in Queenstown in the Eastern Cape.
Pepler Sandri from JLL Capital Markets adds: “Although the manufacturing sector has been challenged in recent years by structural factors like power utility constraints, and more recently the effects of nationwide lockdowns, it is historically one of the best performing market segments in the industrial landscape.”
David Murphy adds: “As global vaccination programmes ramp up and lockdowns are eased, local and global demand is likely to increase. Equally, as South Africans have become more accustomed to shopping online and having goods delivered to their doors, we are likely to see a significant increase in demand for warehousing and distribution space from logistics operators and other companies, as well as a demand for industrial properties across the board, particularly in first-rate locations with excellent accessibility and transport infrastructure.
“Furthermore, with interest rates at an all-time low, it may make sense for business owners – particularly in the industrial and office sector – to acquire a property for their own use if cashflow allows, thereby ensuring security of tenure and eliminating the threat of rent increases.”