Close

Articles

The Value of Choosing Auctions to Unlock Capital
SuperUser Account
/ Categories: Article

The Value of Choosing Auctions to Unlock Capital

Park Village Auctions

Economic challenges; policy changes and soaring inflation has placed tremendous financial pressure on organisations. When companies need to realise locked-up capital, Clive Lazarus of Park Village Auctions says that auctions represent a fast, reliable way to convert assets into cash.

Lazarus: “2018 has been a turbulent year with the Rand’s performance resembling an ECG report. This had an unfortunate impact on many businesses that were not able to weather the storm on their own. As such, our business rescue division was particularly busy throughout the year.”

Before reaching the point of filing for business rescue, however, Lazarus suggests businesses can opt to strategically dispose of assets via auction to free up much-needed cash-flow.

He explains that auctions are not only an efficient way to generate capital, but are also a superb mechanism for reducing costs and increasing optimising business performance, “Identifying and disposing of superfluous or redundant assets via auction allows businesses to curtail holding costs, wear and tear, and shrinkage.”

“Public and online auctions appeal to sellers and buyers alike, it’s a win-win for all. Sellers can effectively outsource the sale of goods, enabling them to continue focusing on core business. The nature of auctions dispenses with sales negotiations, and facilitate the realisation of assets at market-related prices. Lead times are generally shorter than traditional sale methods, and the agreement is final, with upfront front payment required to conclude the deal.” Adds Lazarus

To best illustrate the value of auctions a means for asset disposal, Lazarus shared the results of what PVA achieved on client’s behalf throughout the year. All prices realised above exclude VAT and buyer’s commission.

 

  • Residential dwelling (1209sqm’s), Umhlanga Rocks, sold for R5 350 000.00
  • Retail vehicle showroom (4040sqm’s), Bryanston, sold for R11 600 000.00
  • Specialist Shaft Sinking concern, equipment and assets, sold for R12 700 000.00
  • Boutique hotel and residential apartments, Milpark, sold for R12 800 000.00
  • The former premises of The New Age Media sold for R29 500 000.00
  • Industrial property (5.2-hectare) in Germiston; heavy engineering equipment and assets, sold for R30 000 000.00  and R3 446 000.00 respectively
  • Engineering workshop and specialist laser and plasma cutting machinery (VR Laser Services), sold for R34 500 000.00

 

Notable commercial vehicle auction prices achieved include:

  • A 2016 MAN TGS 27-440 truck tractor sold for R565,000.00
  • A 2015 Caterpillar 428F backhoe loader sold for R570,000.00
  • A 2016 Scania R500 LA truck tractor sold for R950,000.00

 

 “Gone are the days when auctions were viewed merely as a forced mechanism for recouping bad debt. Today, organisations can freely choose to sell their assets at auction given the inherent benefits associated with this method of selling.” Lazarus concludes.

ENDS…

 

Caption: PVA achieved R34.5m for this specialist laser and plasma cutting concern in August 2018.

For all auction related information, contact Park Village Auctions on (011) 789 4375 or go to www.parkvillageauctions.co.za

Print
740

Name:
Email:
Subject:
Message:
x

Featured Auctioneers

SA Auction
Vans Auctioneers (Gauteng)
ARI Auctioneers
Rihlazana Auctions Gauteng
Nuco Auctioneers
Asset Auctions (Pty) Ltd
Auction Inc
Daniel Crous
Marietjie Keet
The High Street Auction Company
Auction 24
D and K Auctioneers
Riley Auctioneers
NRE Auctioneers
Root X Realty and  Auctioneers
Powells Valuation and Disposal Solution Specialists

No content

A problem occurred while loading content.

Previous Next
Terms Of UsePrivacy StatementCopyright 2020 by SAIA
Back To Top