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Fierce bidding likely at auction of two Shoprite centres

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High Street Auctions will sell non-core corporate assets in The Strand near Cape Town and in Cosmo City in Roodepoort.

In the past year the Shoprite Group has realised more than R410million from the restructuring of its real estate portfolio, and a further two shopping centres will go under the hammer next week.

High Street Auctions (HSA) will sell non-core corporate assets in The Strand near Cape Town and in Cosmo City in Roodepoort.

HSA director and lead auctioneer Joff van Reenen says the highest price realised so far for a Shoprite asset was R60m for the centre in Utrecht Road, Vryheid.

“Fierce bidding is the hallmark of these lots, and we expect the June sale to be no different.”

The two centres to go under the hammer on June 13 at a dual live-stream sale starting at noon at Summer Place in Hyde Park, Joburg, and The Mount Nelson in Cape Town are:

* Shoprite Broadway Square Strand. The fully let retail centre will be sold with a new 10-year Shoprite lease on transfer. New Shoprite Liquors and OK Furniture leases of five years will also be signed on transfer. The projected gross annual income (GAI) from the centre is R11.9m.

* Shoprite Cosmo City in Roodepoort. This is also being sold as a fully let retail centre with a new 10-year Shoprite lease to be signed on transfer. Additional tenants include Pepkor Cell, Shoprite Liquor and KFC. The projected GAI from this centre is about R5.1m.

Van Reenen says: “Bidders are already registering in numbers for the properties.”

Other Shoprite non-core assets disposed of in the current portfolio reshuffle include:

* Main Road, Mfuleni, which sold for R58.5m.

* Randu St, Lotus Gardens – R42.75m.

* Ben Alberts Way, Kathu – R41m.

* 176 Voortrekker Road, Parow – R40m.

For more details, see www.highstreetauctions.com.

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