The unconditional public auction surpassed the previous national record of R205m, set by the sale of Kyalami.
The property at 25 Richard Carte Road, marketed on behalf of the Collins Group, attracted strong interest from institutional investors and private buyers. Secured by a blue-chip tenant on a long-term triple-net lease, it is regarded as one of the country's premier industrial investment assets.
“At this stage the identity of the purchaser remains confidential but needless to say it was a hard-fought auction with a host of interested investors who were made aware of the opportunity thanks to a successful marketing campaign that generated exceptional interest from both institutional and private investors.
“It is noteworthy that the success followed five weeks of intensive preparation by our In2Assets team that included advertising and extensive programmes of direct engagement with listed property funds, investment syndicates, industrial property specialists, high-net-worth individuals and other qualified investors.
"Our teams kept potential buyers informed throughout the process and they were supplied with due-diligence information as required and where necessary site inspections were arranged to ensure they were fully informed before auction day.
“The property was also promoted nationally and internationally through our own database of more than 60,000 contacts and our online bidding platforms, expanding participation by allowing qualified buyers to compete remotely in real time alongside those attending the auction in person. This set the scene for a fiercely contested auction,” says Miller.
On auction day, he recalls, the atmosphere was tense as bidding opened strongly and quickly gathered momentum. So momentous was the occasion that the room became noticeably quieter as the competition narrowed to a handful of determined bidders and the price steadily climbed before the hammer finally fell at R285.5m. The sale was met with spontaneous applause – an unusual response at a commercial auction, but one befitting the occasion.
"I wasn't aware of the previous South African record during the auction itself, but after conducting thousands of auctions over the years, you develop an instinct for when something exceptional is happening. As the bidding reached levels I had never experienced before, I realised we were entering record territory. It was only after the sale, however, that we officially confirmed the previous benchmark had been surpassed."
Miller says In2Assets has built an exceptional track record since it was founded in 2012 by Andrew Miller, Hein Hattingh, Rainer Stenzhorn and Rowena Moodley. Since its establishment, In2Assets has grown into one of South Africa's leading specialist auction houses, focusing on commercial, industrial, retail, agricultural and high-value residential property.
He adds that the company has strong credentials within the profession through its longstanding membership of the South African Institute of Auctioneers (SAIA), of which it has been a member since its inception. This is reflected in the company receiving five SAIA industry awards over the past two years in recognition of its excellence.
"Mandates of this size are nurtured over many years. Clients want confidence that their property will be marketed professionally and that the auction process will attract genuine competition. Our philosophy has always been to create competitive bidding that allows the market to determine value while providing certainty for both buyers and sellers. We are proud of the record, but our focus remains the same whether we're selling a R5m property or managing a R500m portfolio," Miller concludes.
