Property investors are preparing for an auction of a retail and residential block of flats situated in Ruyterwacht, Cape Town. The property presents buyers with an opportunity to purchase a tenanted block of flats with a large retail component at an attractive short-term yield. There is considerable upside to be unlocked as rentals for the residential and retail tenants are currently below market value.
Located at 3 Paul Kruger Avenue, the property extends over 3 941m2 and consists of 12 large flats, eight retail stores, ample off-street parking and secure garages. With the seller retiring and downsizing his portfolio, the property is coming to market for the first time in 15 years. The property will fall under the hammer on 4 August 2016, 12pm at 125 Waterkant Street, Green Point, and Cape Town.
According to Brendon Levin, Sales Director at Nexus Property Group, the property is suited to investors looking to enhance the value of their current portfolios.
“The anchor retail tenant in the block – the Saverite Supermarket – which recently signed a new five-year lease, trades well with a large catchment area as it is the only retail offering of this size in the Ruyterwacht residential node. Although the residential units are currently fully let there is an opportunity to increase rentals down the line.”
Furthermore Levin says that opportunities such as this one do not present themselves very often in Cape Town.
“There is significant yield-enhancing potential through both upgrading the building, maximising underutilised space and reconfiguring the layout and tenant mix.”
“This property offers an attractive initial yield on a centrally located Cape Town asset with the opportunity to enhance value over the short to medium term due to the high demand for mixed use blocks of flats.”
A R50,000 refundable deposit and FICA documents are required to register for the auction. Contact Brendon Levin on 084 588 8852 or Robert Shaff on 072 195 1211 to register or to arrange a viewing. The auction will be held at NPG – 125 Waterkant Street Green Point at 12pm on 4 August 2016. For more information, go to www.nexusproperty.co.za.