Tenders out for sale of landmark Braamfontein property

Tenders out for sale of landmark Braamfontein property

Liberty Properties wants to sell off the Jorissen Place high rise.

Calls for tenders are going out for the sale of a prominent landmark in Braamfontein adjacent to the Johannesburg CBD. Liberty Properties wants to sell Jorrisen Place – an 18 storey structure spanning Jorissen, Bertha, De Beer and De Korte streets in the upgraded area of Braamfontein.

Head of capital markets at Jones Lang LaSalle, Andrew Bradford, explains how the tender process, which ends on February 29, will work. “People will submit bids in a pre-determined format and then the bid will open privately, so it’s not a public forum and nobody knows what the others have bid. From the bids we receive, we make a recommendation to the seller and they disclose who the successful bidder is.”

Bradford says a building like Jorissen Place usually attracts a fairly sophisticated buyer. In this case the prospective buyer would, after making his or her own calculations, submit a sealed bid.

Liberty Properties own and occupy a number of buildings in the Braamfontein precinct. Bradford says Liberty does not occupy Jorissen Place and the company wants to redirect the proceeds from selling it to other upgrade projects they’re involved with. “This particular property falls beyond their current strategy,” he added.

Liberty could not immediately be reached to confirm this.

Bradford says the opportunity to acquire an entire city block is rare and could attract owner/occupiers, property entrepreneurs and investors. Jones Lang LaSalle, who is managing the project, says they expect to receive around three tenders.

Bradford obviously would not be drawn on what Liberty was hoping to get for Jorissen Place, but he did say: “Liberty obviously have a figure in mind. It’s probably in the region of about one third of its replacement cost. If you recreate that building it will cost you three times more than what Liberty currently wants.”

In a statement LaSalle said the building has 28 000m² of office space, 630m² of retail and 563 parking bays.

Bradford also said in the statement: “If you add the predictable timelines and avoidance of hassle, existing buildings trump new developments by far. We have achieved a number of successes in this space recently with demand for these types of properties for outstripping supply.”

He adds that Jorrisen Place’s location is also attractive in that it provides easy access to the M1 motorway, is within walking distance of public transport and the bustling Park Station as well as to retail

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Denny Crane

Denny Crane
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