What can a new owner do with a former 700 seat cinema complex supposing that he is bold enough to buy it?
That is the question that Tanya Jovanovski, franchise Principal for Rawson Auctions in the Western Cape, hopes half a dozen or more enterprising businessmen will be asking themselves prior a multiple auction that Rawson Auctions will be holding at 12 noon on 19th June in the Rawson Property Group’s head office at 222 Main Road, Rondebosch.
The cinema complex, now to be auctioned is at 105 Drakenstein Road, Paarl was known as “The Planet”. Since ceasing to screen films it has been rented by a church, a superette, a hair salon and a video shop. Together these have been bringing in a rent of R20,700 per month. The church and the superette both have three year leases still running, while the other tenants are on three month leases. A first floor office area previously rented for R4,500 per month is now vacant, but Jovanovski believes could easily be re-let.
Jovanovski said that the building has huge potential. It could be used as a mini-market, a gymnasium, workshops or a training facility. The seller had plans (not yet approved however) to extend the building by a further three storeys, making it a six storey complex in all, with 36 new apartments in the top three floors. This, she believes, could be a very profitable move because demand for rental accommodation in Paarl is very strong at the moment, especially if the building is, like this one.
The terms on which Rawson Auctions operate are:
· A 5% deposit to be paid on the fall of the hammer
· A 10% commission plus VAT to be paid over and above the agreed price to Rawson Auctions, also payable on the fall of the hammer.
Jovanovski has pointed out that the Consumer Protection Act regulations stipulate that all bidders must be registered and that they bring certificated copies of their identity documents and proof of residence. However, she said, Rawson Auctions do not charge any registration fee to bidders.
For further information contact Tanya Jovanovski on 082 411 9599 or Victor Schonborn on 083 792 4169. Their office number is 021 837 1700.
