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Newsletter - July 2011 |
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The current economic challenges emphasise the need for business decision makers to reduce cost, increase turnover and optimise efficient application of resources. The identification of superfluous or redundant assets for disposal by auction is an appropriate step in this direction as it curtails holding costs, wear and tear, shrinkage, opportunity cost and above all, generates capital. In this context therefore, a public auction sale is an effective outsourcing model that enables a business to focus on its core activities and the democratic, competitive bidding process has wide appeal in that it dispenses with the tedious selling price negotiations that arise in private treaty and tender sales while aiding the realisation of assets at the most market related values. Also, the lead time between the sale and the final settlement to the seller is fairly short as payment is not hampered by the suspensive conditions that frequently apply in a normal sales transaction. Auctions therefore meet a real need right now. |
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The ‘mix-and-match’ of transport equipment, agricultural machinery and heavy capital items such as construction machinery is proving to be a major attraction at Park Village Auctions’ sales. The offering at recent PVA sales typifies the appeal of combining these various categories of assets. There’s clearly a strong linkage and a great deal of cross-demand for trucks, agricultural equipment and construction equipment and our sales have evolved into a showcase for all three to the benefit of buyers from all parts of the country. Another key aspect of the sales is the quality of stock being received by Park Village. We deal only with blue chip sources of inventory such as the banks and liquidators. The message is that bidders at our sales buy with confidence. |
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An ideally positioned, fully secured, flexible-use, 2ha industrial property on the East Rand came up for auction recently, emphasising the attraction of the East Rand as a source of industrial auction property. The area is superbly positioned geographically for access to all major transport routes and markets in Gauteng and neighbouring provinces for that matter and is well served by road, rail and air connections. |
The assets on sale in this particular case are flexible enough to accommodate a variety of businesses centred around manufacturing, engineering, storage and transport of goods, giving it multiple use potential and broad appeal that typifies the nature of East Rand industrial property right now. |
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| South Africans may be buying more new cars but used vehicles and auction vehicles in particular are still king and now auction scrap vehicles and non-runners are finding a niche of their own. Consumers know the benefits of auction vehicles. Firstly there’s no argument with the fact that new cars depreciate the moment they leave the showroom floor while used vehicles have already taken the price ‘knock’. Secondly, there may have been a time in the dim and distant past when buying an auction vehicle was something of a gamble, but nowadays, provided consumers deal with a reputable auction house, they are assured of quality vehicles, many of which are low mileage models in good nick, frequently still with their motor plans intact and with full service histories. Then consider the fact that, as bidder, they have enormous choice under one roof at one of our auction venues – it’s no longer a case of traipsing from dealer to dealer to find the vehicle of their dreams. Now, to further spice up our overall vehicle auction offering, we have added the dimension of scrap and non-runner auction vehicles via our dedicated facility in Benrose and sales in this market are booming. |
 Fancy a Porsche? Paul Lendia of Park Village Auctions says you can pick one up for a song but needing a lot of TLC at a Park Village scrap and non runners auction sale. |
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Auctions are now regulated for the first time in South Africa in terms of the new Consumer Protection Act (CPA). The good news is that most of the provisions under the Act, which became law on April 1, 2011, have been applied by Park Village for many years as part of our normal business practice. This is in keeping with Park Village’s commitment to effective, quick and transparent sale of assets, a commitment that was in place long before the advent of the CPA. Moreover, Park Village will remain at the forefront of the Auctioneering sector in this respect. This commitment includes a transparent mandate from the seller and service level agreements with major role players in the sale of immovable and movable assets. Having said that, improvements that have arisen from the Act (which PVA will, of course, embrace), include the fact that out-of-hand sales can now effectively be substituted by our auctions to ensure that the six month return period is not applicable, thereby minimising sellers’ risk and possible expensive litigation. |
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The realising of assets arising from liquidations via the efficient auction route, sets the stage for the sale of a chrome processing plant’s equipment by Park Village Auctions. It’s in this context that we are to auction the equipment of a Rustenburg based plant on Tuesday July 12, commencing at 11am, at the Park Village boardroom, 14 Prolecon Rd., Prolecon, Johannesburg. The sale coincides with an indicated upturn in demand for corrosion resistant materials, notably stainless steel, in world and local markets. The equipment is of broad based interest to the mining community in general and to similar operations in particular says Park Village Operations Manager, LeRoy Augustyn. |
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Some of PVA’ prominent other recent auction disposals in the mining/engineering sector include assets at Douglas Colliery, Rietspruit Mine and ATS Alloys. Meanwhile PVA is gearing up for what may be the largest auction of its kind in South Africa when assets arising from defunct operations at several of Harmony Gold Mining’s Free State shafts will be offered. The shafts have been mothballed for a number of years. The Free State operations are among the oldest and deepest of Harmony’s mines. The sale takes place in August and is expected to attract widespread interest. |
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| Every now and then a truly exceptional property becomes available to the auction market and a case in point is the magnificent Sandhurst mansion pictured here. This stunning home was brought under the hammer by Park Village Auctions, which has carved a significant niche for itself at the top end of the property auction market. Meanwhile, setting the scene for successful auctions, property market analysts report that buyers with cash and access to funds are active right now, looking for bargains and indeed the latest First National Bank House (FNB) Price Index reveals a slight acceleration in price growth. Realistically if one adjusts this average house price index with the consumer price index (CPI), real house price growth is around -2.5 percent. But again, this is a national average — there are pockets of sunshine amidst the gloom and some industry analysts suggest that the negative growth trend will reverse shortly after mid-year. So for the serious investor, now could be the time to take a serious look at property. |
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Flexibility in handling all manner of auction assets is the hallmark of Park Village. The ‘Cockney Liz’ Hotel in historic Barberton, Mpumalanga, site of South Africa’s first gold rush, is a case in point. The Cockney Liz is but one of the latest prime investment properties to become available under the Park Village banner and it attracted those seeking to capitalise on Barberton’s thriving tourism industry. The message that emerged from the sale is that tourism related assets are in demand and that the South African tourist sector is a growth market in the current business climate. |
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We seek constantly to raise the bar on marketing techniques and in keeping with that objective, PVA is installing a giant banner on the corner of End and Eloff in the Jozi CBD. The simple message carried by a strong visual, is that taking part in an auction is as easy as raising your hand and the intent is to attract ever greater numbers to our already well attended, hugely successful vehicle auctions. The building wrap has extremely high exposure to thousands of passing motorists every day and at 215 x 15 meters in size, it’s unmissable. We have long promoted the fact that anyone can take part in an auction and that they are fun happenings. The wrap does precisely that. |
Please visit our website to keep up to date with the latest offerings on auction. |
