Greg Nafte says NPG has recently been instructed to sell a large warehouse at 7-19 Textile Street in Paarl on behalf of a listed company.
Industrial property outperformed retail in 2016 and was ranked as the top performing property sector, according to the latest IPD South African Annual Property index.
The report reveals the industrial sector had a total return of 13.6%, marginally outperforming the traditional frontrunner, retail, which saw a return of only 12.6%. Greg Nafte, co-director of Nexus Property Group, says the sector’s strong performance has resulted in industrial properties being held tightly.
“With the increasing value attributed to this type of property, we are not seeing as many income-generating industrial properties in prime areas coming on to the market.”
But as the current lowgrowth environment has caused several corporates to rationalise business strategies and streamline operations, there are cases of vacant industrial properties becoming available to the market at realistic values.
“We have seen this trend developing over the past 24 months and there is no shortage of demand.” Nafte says NPG has recently been instructed to sell a large warehouse at 7-19 Textile Street in Paarl on behalf of a listed company. “The property will fall under the hammer on August 3.”
The multi-purpose property, which extends over a stand of 4 086m², will be sold with vacant occupation. “The property, which has three access points and secure offstreet parking, includes a gross lettable area of 2 474m².
The GLA comprises a reception area, dual-level offices (924m²) and a warehouse (1 514m²). The triple-volume warehouse is equipped with a sprinkler system, with direct access via a roller shutter door.” He says the property is zoned for general industrial use and industrial rentals in Paarl are in the region of R40/ m² to R45/m².
“The property is suited to warehousing or distribution businesses that require warehouse height. The dual-level offices are in excellent condition and were previously used as a workshop which could be converted back, should a user require additional industrial workshop or storage space.
The multiple secure access points to the property allows for the option of splitting the property into multiple units to cater for demand from smaller industrial users. The property has been identified as non-core to the listed company and must be sold.”
The auction will be held at Lemoenkloof Conference Centre, 396 Main Road, Paarl, at noon on August 3. Bidders will need to register for the auction and submit a R50 000 refundable deposit, along with Fica documents. For details call Greg Nafte on 083 414 4474 or gnafte@ nexuspg.co.za or see www.nexusproperty.co.za.