High Street To Auction Four More Shoprite Retail Centres In March
The Shoprite Group continues the reshuffle of its non-core real estate portfolio this year with four properties going under the High Street Auctions (HSA) hammer in March.
The Shoprite corporate disposal lots going on the block in the next HSA auction taking place at noon on 13 March, 2019, at Summer Place in Hyde Park, Johannesburg, and at the Mount Nelson Hotel in Cape Town, are neighbourhood retail centres and larger than those auctioned during the course of last year.
“Fierce bidding in the November auction realised the highest prices so far for the Group, including the R60m sale in Vryheid. Shoprite came to High Street Auctions with a specific instruction to dispose of these assets for the best price possible and we achieved that,” says Lance Chalwin-Milton, Joint MD of High Street Auctions.
“Appetite is increasing for the properties being divested of by Shoprite, which are sold with new anchor tenant leases of between five and 10 years taking effect on transfer.
“We expect the new lots being offered for sale next month to be as well received by buyers and even higher prices to be realised for Shoprite. Bidders are already registering in numbers for the properties and come sale day we expect spirited competition to acquire these lucrative lots.”
The four centres going on the block in March are located in Kimberley, Middelburg in Mpumalanga, Kroonstad in the Free State and Mfuleni in Cape Town.
Details of the properties are as follows:
- A fully let retail centre in Kimberley’s Chapel Street that is anchored by Shoprite. A new 10-year lease is available on transfer as well as three five-year renewal options thereafter. Other tenants in the centre, which has a stand-size of 7 487m² and a GLA of 3 706m², include Pep Cell, Business Zone and Hungry Lion. The projected Gross Annual Income (GAI) of the centre is in the region of R4.7m.
- The neighbourhood retail centre for sale in Middelburg is located at the intersection of John Magagula and SADC streets and is Anchored by Shoprite. A new 10-year Shoprite lease is available on transfer, plus three five-year renewal options thereafter. A new Shoprite Liquor lease of five years will also be offered upon transfer, plus an additional four five-year renewal options at the end of that period. The centre, with a GLA of some 10 000m², has a projected Gross Annual Income of R20.5m and multiple tenants include a number of national chains, among them PEP, Ackermans, Capitec Bank, Mr Price and Hungry Lion.
- The fully-let Kroonstad neighbourhood retail centre going under the hammer in March is located in Buitenkant Street and is anchored by Shoprite. A new 10-year Shoprite lease is available on transfer, plus three five-year renewal options thereafter. The centre is located on a stand of 3 568m² with a GLA of 3 282m². Other tenants include Pep, Shoprite Liquor and Hungry Lion and the centre’s GAI is around R7.8m.
- The final Shoprite corporate disposal lot in the HSA March auction is a neighbourhood centre located in Main Road, Mfuleni, in Cape Town and is Anchored by Shoprite. A new 10-year Shoprite lease is available on transfer, plus three five-year renewal options thereafter. A new Shoprite Liquors lease of five years will also be offered upon transfer, plus an additional four five-year renewal options at the end of that period. The centre is located on an erf of 9 215m² with a GLA of 5 219m². Other tenants in this busy centre include the Post Office, PEP, PEP Cell, Pie City, Tech Zone and Hollard and the centre has a GAI of around R10.2m.
Chalwin-Milton says all the Shoprite corporate disposal lots being auctioned in March require a R500 000 registration fee, and the transactions will attract VAT.
“High Street will once again be operating dual sales floors in Johannesburg and Cape Town on 13 March with real-time streaming between the venues. Our management team will also be on hand to assist with telephone bids on the day for buyers unable to be at the sales venues in person.”
For more information on the Shoprite centres on auction as well as the range of other superlative property offerings available for purchase in March, visit www.highstreetauctions.com.
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