Large parts of the Maboneng district in Johannesburg are up for auction later in April, after the property developers trying to rejuvenate the section of the inner-city entered into liquidation.
The hub was envisioned to be a renewal of a safe, cultural and trendy lifestyle within the Joburg city, and included residential and commercial projects like the Drive Lines apartments – built from used shipping containers.
However, many of these projects, including Drive Lines, will go under the hammer on 15 April, after developer, Propertuity, and its subsidiaries entered into liquidation.
According to an affidavit by liquidators of one of the subsidiaries, Urban Steyn, the group was losing as much as R1 million a month on their developments.
Much of the blame lies on economic conditions in South Africa, the liquidators said.
Rentals were poor because of economic pressures on residents, while the cost of running security to ensure the small section of the city is safe, was high.
In the wake of the liquidation, concerns have been raised over security, with a big worry that vagrants might move to occupy the buildings which are currently standing empty, the paper reported.
There are also concerns that the auction of 10 buildings and 130 sectional title units will devalue the properties in the area, though the developers of adjacent areas have denied this will be the case.
Propertuity is “just a small part” of the wider precinct, they said.
Up for auction
Jaco du Toit of Park Village Auctions said property investors should add Maboneng, or “central Joburg’s new investment gem” to their portfolio. A host of mixed-use Maboneng properties will be offered by Park Village on April 15 at noon at The Venue, 17 High Street, Melrose Arch, Joburg.
“Investors seeking rapid growth of their portfolios are buying up property in this area at a rapid rate. With more than R2 billion being funnelled into the Maboneng precinct by investors ranging from property investment companies to financial institutions, this is an area to watch closely over the coming years,” said du Toit.
“The precinct draws the inner-city public as well as the chic, art-loving crowd of the city’s northern suburbs. PVA’s auction portfolio will allow potential investors to get a foot into the door of this new property hotspot to benefit in the huge growth potential offered.”
Other properties up for auction include:
- Craftmans Ship
- Fox Street Studios
- Rocket Factory
- 305 Fox Street
- Living Moad
- Betty Fox
- Artisans Loft
- Remeds View
- Revolution House
- Rivers of Steel
- Main Street Life
- Urban Fox
- Arts on Main
- Aerial Empire
- Market Up
- Hallmark House