Prime Durban land goes under the hammer

The South African Broadcasting Corporation (SABC) is set to auction off three tracts of prime land which is in the heart of Durban.

Broll Auctions and Sales says they’re expecting a highly competitive bidding war over the high-value land when estate investors and developers gather to bid for the properties which together encompass a sizeable area of 8,944 square metres on Wednesday.

It’s estimated that the land is worth several millions of rands and those interested will have to pay a sizable registration fee for the right to bid at the auction which will take place at the Wanderers club in Illovo.

Lesley Saunders the head of marketing for Broll auctions and sales says there’s been huge interest in the auction, and bidding would take place in person, telephonically and online.

“We've had quite a bit of interest on stands individually and as a group. Prime Sites obviously offers and lends itself to multiple uses for future developments.”

Saunders told the Sunday Tribune that one of the reasons for the auction was that the SABC was disposing of non-core assets.

“You're still paying rates and taxes on it. So you're sitting with an asset that's not generating any value for your organisation or company. It makes sense then to sort of dispose of it and consolidate.” She said vacant land was also “high risk”because of the possibility of land invasions.

Saunders says nationally there’s been a lot of interest in the auction mainly from individuals and organisations based in KwaZulu-Natal. She said preferably they wanted all three tracts to be sold as one because of how they're positioned sort of adjacent to each other.

“If you wanted to bid, you would have to pay a R50,000 registration fee, which is refundable if you're not a successful bidder. And obviously we encourage people that want to bid to pre-register, because it just makes it easier. So registration is still open until Wednesday. It will be open until literally about 20 minutes before the auction starts,” said Saunders.

She said the land is located in an area bustling with hospitals, shops, hotels, and businesses. It is also adjacent to the SABC and close to UNISA as well as the Durban International Convention Centre (ICC).

“The desirability of these land portions cannot be overstated. The strategic positioning amidst a vibrant mix of commercial and residential developments makes this auction particularly appealing to potential investors.

“With Durban's plans for renewal and whatnot, to get a really good piece or three good pieces of land and really build something that's worthwhile within the community and serves the community and is a good upside asset,” said Saunders.

She said a number of people have expressed an interest to buy the land for residential development, while others have wanted to put up offices or corporate head offices.

“Others have proposed sports facilities and grounds, like padel courts and a bit of retail mixed with sports and leisure. So they're very versatile because of the positioning.”

Telkom recently also disposed of land and building who had not been used in several years.