‘Landmark’ precinct up for auction in South Africa – including its own shopping mall

 ·7 Jun 2024

The 139-suite Arcadia Hotel, a residential, retail, and office block precinct in Pretoria, will be auctioned off at the end of the month.

The Pretoria landmark is in the heart of the diplomatic district and can be found at the intersection of Steve Biko and Madiba streets.

High Street Auctions Director Greg Dart said the lot comprises three buildings with a total gross lettable area of roughly 23,832 sqm on a site measuring 10,207 sqm.

“The land, alone, in this diplomatic zone is invaluable. Properties like this simply don’t come to market – let alone those that are thriving business concerns in first-rate condition,” said Dart.

The hotel comes with single, double, and family units, as well as self-catering suites.

The 3-star business hotel is part of the Arcadia Shopping Centre, blending residential and retail components.

“The hotel features a welcoming reception foyer and breakfast cafe, complemented by the upper-level eMonate restaurant, which operates from 10 am to 10 pm and provides room service during these hours as well,” said Dart.

“Other facilities in the Arcadia Hotel are a patio lounge and English pub to provide comfortable settings for business meetings and social gatherings.

“The hotel’s facilities also include four conference venues for approximately 250 delegates that are well utilised by the surrounding embassies and corporates.”

The property also houses a triple-level retail component of roughly 10,804 sqm.

With the retail space not fully let yet, Dart said that national chains are seeking a notable presence in a busy commercial district, and the new owner can take advantage of it to substantially increase gross annual rental income.

The 3,297sqm, five-storey apartment block comes with 75 apartments.

“They are both studio and one-bedroom units, and given that the building is fully let, it speaks to the high demand for affordable accommodation in this extremely busy government precinct,” said Dart.

“It also presents a magnificent revenue stream development opportunity for the new owner of this prime site.”

Future growth

“With a total floor area of some 4,631sqm, there is massive potential to repurpose this tower into an upmarket apartment block accommodating ±136 units, or even adding another floor that would enable a developer to create up to 150 apartments,” added High Street Auctions Sales Executive Greer Brewer.

“For those investors focusing on student accommodation, this extensive component could easily accommodate up to 300 student suites.”

“There’s no doubt that the demand is there for long-term accommodation given the government offices and embassies in the area, as well as the site’s proximity to the Union Buildings and the University of Pretoria.”

The precinct will go under for auction in a live and virtually-streamed 22-lot auction at the Bryanston Country Club on Thursday, June 27.

Images of the property can be found below:

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