Answer from Greg Dart : Auctions have evolved significantly beyond their old image of handling only distressed sales and bargain-hunting buyers . Today , they stand as a credible and effective platform for sellers to achieve maximum value in a transparent manner , on terms that are unconditional , and hence more favourable to them .
Given the current economic climate , which is marked by financial pressures , auctions also offer a strategic advantage , particularly to the Turnaround , Restructuring , and Insolvency ( TRI ) practitioners industry . Business rescue practitioners focus on turnaround and restructuring efforts , while liquidators handle properties and businesses facing insolvency or bankruptcy . Recent high-profile filings , such as those involving Tongaat Hulett , Rebosis Property Fund , and the SA Post Office , highlight the growing role business rescue practitioners .
High Street Auction Co , an active service provider to the TRI industry , brings extensive experience to the table . Auctions are increasingly favored for their ability to provide clear , competitive bidding processes that often result in higher sale prices and quicker transactions , eliminating the uncertainty found in traditional negotiation-based methods .
If we are looking principally at distressed real estate disposals , key factors to consider when choosing an auction partner include :
Track Record and Experience : Ensure the auction house has a proven history of successful sales , and a record of successful engagement as a service provider to the TRI sector . We , for instance , have extensive experience in managing complex cases and delivering optimal results for liquidators , banks etc .
Transparency and Credibility : Opt for auction partners known for their transparency and fair practices . This fosters confidence and attracts serious buyers who are committed to the process .
Market Reach and Expertise : Choose an auction house with a broad network and specialized knowledge in your specific property sector . We excel in providing comprehensive services , including property assessments , sale advisory , and portfolio optimization .
Strategic Approach : Consider how the auction house approaches different sales scenarios , including strategic liquidations and business rescues . Their ability to tailor their approach to maximize value for creditors and facilitate efficient transactions can be crucial .
By focusing on these criteria , investors and sellers can leverage the advantages of auctions to achieve the best outcomes in distressed sales scenarios .
Auctions are certainly a very important part of a real estate disposal platform mix , creating a sense of urgency and a call to action , with competitive bidding by buyers optimizing the price fetched for assets – whether the disposal was motivated by sound strategic considerations , or due to financial distress .
High Street Auctions holds numerous South African auction records including the highest commercial real estate auction price ever achieved – R205 million for the liquidated Kyalami Racetrack – and the highest residential real estate auction price of R96m for a bank instruction on villa in Clifton . The company was also awarded the NAA / USA Today Global Marketing Campaign of the Year Award in 2021 .
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