Private Fund sells non-core asset
An income-generating retail and residential property in Mowbray, Cape Town – an area where properties are typically tightly held – was recently sold by Nexus Property Group (NPG) after being made available to purchase for the first time in 15 years. As the property changed hands only once since it was originally built, the opportunity offered investors a rare chance to acquire property in this particular area.
Situated on the corner of Main and Victoria Road – which is the main thoroughfare to the station and taxi rank – the property consists of 17 retail stores and four large, first floor apartments, and was sold post the auction date. Whilst an auction was the recommended method of sale, it became apparent that there were certain complexities surrounding the property’s development potential that required additional time for the due diligence process. The deal was concluded via private treaty negotiation after the due diligence period.
According to Greg Nafte, director of Nexus Property Group, there is scope to upgrade or refurbish the building in order to attract a higher profile tenant, and service the increasing population in the area. He explains that a significant portion of property in the area is owned by the University of Cape Town, and over time the location has become populated with students taking up residence.
“As the area continues to grow at a rapid pace and is positioned in close proximity to the university, property in the area has been through a phase of upliftment through refurbishing and the redevelopment of old buildings,” he concludes.