Ricochet News

Metro puts R2.2 million valuation on Wells Estate land

SEPTEMBER 26, 2014
Metro puts R2.2 million valuation on Wells Estate land

The Nelson Mandela Bay Council’s Valuer has put a R2.2 million price tag on a piece of industrial land in Ranger Road, Wells Estate.

A rental value of R18 300 a month was put on the property when the valuation was done in April this year.

A report to the Human Settlements Committee states that that land is zoned for Industrial 2 purposes, is 12 095 square metres in extent and is undeveloped.

The report says that applications have been received to purchase the land for industrial/business purposes.

In his comments on the valuation, Council’s Valuer points out that Port Elizabeth “relies on the automotive industry as its major economic activity and is growing rapidly as well as being perfectly placed for investment opportunities.

“It is assumed that with the recovery of the economy more industrial space will be demanded,” he states.

Further, he says, interest rates are also currently at low levels, reducing the cost of investment.

“It is significant to note that most major multinational vehicle manufacturers are currently represented in South Africa, which means that international developments also impact on the country.

“The outlook for the vehicle industry is bright in terms of both exports and the domestic market.

“Growth in the vehicle industry will have a snowball effect with other manufacturing sectors booming as well, and in turn demand for industrial space will match that growth.”

In terms of the recommendation from the directorate, the purchaser will be responsible enclosing the yard with a wall that must not be less than two metres in height. - metrominutes