Mobeni industrial property auctioned for record R285m

South Africa’s commercial property auction record appears to have been smashed after In2Assets achieved what is believed to be the highest price ever realised for a property sold under the hammer in the country.

The Durban-based auction house concluded the unconditional public auction of an industrial investment property in Mobeni in Durban for whopping R285.5 million.

This surpasses the previous South African property auction record of R205 million, set with the sale of Kyalami several years ago. The iconic Kyalami race circuit was bought by Porsche South Africa in 2014.

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Auctioneer and In2Assets co-founder Andrew Miller says the property at 25 Richard Carte Road was offered on behalf of the Collins Group and attracted strong interest from institutional investors and private buyers across the country.

According to Miller, it is regarded as one of the country’s premier industrial investment properties and is secured by a blue-chip tenant on a long-term triple-net lease, making it one of the most sought-after industrial investments to come to market in recent years.

A Google Maps search indicates the tenant to be Nampak.

At this stage the identity of the purchaser remains confidential.

“But needless to say, it was a hard-fought auction with a host of interested investors who were made aware of the opportunity thanks to a successful marketing campaign that generated exceptional interest from both institutional and private investors,” says Miller says, adding that a five-week run up period generated massive interest.

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Bidders on the day included listed property funds, investment syndicates, industrial property specialists, high-net-worth individuals and other qualified investors who  participated in a tense and highly competitive auction.

“I wasn’t aware of the previous South African record during the auction itself but after conducting thousands of auctions over the years you develop an instinct for when something exceptional is happening,” says Miller.

“And as the bidding reached levels I had never experienced before I realised we were entering record territory.

“But it was only after the sale that we officially confirmed that the previous benchmark had been surpassed.”

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