Auctions secure R17.355 million for Niflas creditors

GEORGE NEWS - The office block on the corner of Caledon Street and Davidson Road owned by the beleaguered George-based financial services provider, Niflas, fetched R7.4 on auction last Wednesday.

The building was placed on auction in terms of the liquidation of the investment platform, Niflas Silhouette, which saw investors lose millions of rand.

Fifteen people registered for the auction and between 40 to 50 people attended on the day. The next highest bid was R7.3 million.

Auctioneer Frederick Bekker of Van Rensburg Auctions, says the top bid surpassed all expectations. “Based on the rental income, the building vas valued at R5 million early this year.

On auction, the highest bid was made by Mr Marius van Huyssteen, but it can still be outbid until Wednesday 14 December. Mr van Huyssteen will, however, be given the opportunity to match any higher bid,” said Bekker. The joint liquidator, Danie Acker of Rauch Gertenbach Inc, has until 20 December to accept or reject the offer.

The 800m2 lettable office space in the Niflas building is currently being let at an average of about R63 per m2. According to Bekker the average rate per m2 in the CBD ranges between R65 and R75, so, with a few touch ups here and there, the new owners should be able to get R75/m2.

Van Huyssteen of Walk in Doctor/Dentist, the brother of Tekkie Town founder, Braam van Huyssteen, declined to divulge how he plans to utilise the building, saying he will make the final decision once his bid has been accepted.

Two other Niflas owned properties were also auctioned in George on 7 December. The sectional title property in Adderley Street fetched R745 000 and the 10 living units in Blanco went for R 2.3 million.

A Swellendam residential development by Niflas Silhouette that includes 23 erven with 5 completed dwellings, fetched R4.56 million on auction - also an excellent price according to Bekker, as it was valued at just R3.2 million. The size of the small erven range from 100m2 to 150m2.

A house in Humansdorp, that is home to a nursery school, and that was valued at R1.7 million, fetched R1.85 million. A bachelor flat in Grahamstown went under the hammer for R 500 000.

Bekker says two positive aspects emerged from the auctions:

• The assets fetched substantially more on public auction than the highest private offers received prior to the auctions.

• According to the auctioneers the property market in the Southern Cape is "hot" as they had enquiries from all over the country.

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