Could This Blue-Chip 10-Year Triple-Net Sale and Leaseback Set a New Cape Town Auction Record?
Long, secure, net income from a blue-chip tenant is what institutional investors look for first, and in the Western Cape it almost never comes to market. On 22 October 2026, Galetti takes exactly that to auction: 13 La Belle Road, Stikland, Bellville.
Given the interest it has drawn, this could prove to be a landmark sale, with the potential to set a new benchmark for industrial property sold under the hammer in Cape Town.
We sat down with Itai Ilouze, Director of Galetti’s Cape Town auctions, to find out why.
The investment: ten years of net income from a blue-chip tenant
The property is offered as a sale and leaseback, with a 10-year triple-net lease to Agriplaas, the established manufacturer that occupies the site.
Triple net means the tenant carries the running costs of the property, so the projected net annual income of around R7,1 million reaches the owner without being eroded by rates, insurance or maintenance. Sale and leaseback means the tenant has chosen to stay: its manufacturing operation runs from this site, and it has committed to it for a decade.
“An asset like this in the Western Cape, on a 10-year triple-net sale and leaseback, with a tenant of this quality, is like hen’s teeth,” says Ilouze. “These assets don’t come to market. Owners who would sell usually only do so at prices nobody is prepared to pay.”
“Although we never disclose our reserve price, the property is priced well within what the market is willing to pay,” says Ilouze. “Unlike comparable assets, which sellers often price at unrealistic levels, this property has been priced correctly. It presents a significant opportunity for the right buyer and a substantial deal for an appropriately positioned investor.”
That is the first reason for the interest. The second is the land.
The last industrial land in the area
The erf measures 36,155m², with a lettable area of around 8,459m². That leaves roughly 12,000m² of additional development land, and it is the only industrial-zoned land left in a node that is already built out.
The neighbours tell the story. Shoprite’s new distribution centre sits directly across the road, and Savino Del Bene has completed a large-box facility nearby. Most new logistics and warehousing development in the northern suburbs is running along the R300 corridor, and this site sits just off it.
The infrastructure matches the scale: a 1,280-amp power supply and two large standby generators.
Two opportunities in one title deed
“It’s an investor play and a developer play,” Ilouze explains. A buyer can hold the income and develop the surplus land. They can sell off the land and put that equity back into the investment for a stronger return. Or they can keep the land, sell the investment, and back-to-back the deal.
That flexibility is why the room at viewings looked the way it did.
32 entities at one viewing
In over six years in the industry, Ilouze says he has never seen a response like it. Fifteen entities attended the first viewing. Thirty-two attended the second.
“The crowd was so big that at one point we actually lost Meredith,” Ilouze laughs. “Don’t worry, we found her.”
“You could see the financial models forming in people’s heads as they walked through,” he says. “People were in corners, pointing at parts of the building, saying ‘this could be used for that’.”
The buyers were as varied as the uses. Developers, private investors and listed funds came through, as did operators from the furniture and interior sectors weighing an investment hold alongside a new distribution box of their own.
The buyers who don’t usually buy at auction
For Ilouze, one detail stands above the rest: who is looking. “Listed REITs, pension funds and other institutionally backed entities are seriously considering attending this auction, which speaks for the stock in itself,” he says.
“The people registering for this auction are not typical auction buyers,” he says. “That’s the most unique thing about it, and it’s proof of the auction mechanism.”
Helping that confidence is the seller. The property is a corporate disposal by a private equity owner whose focus is the tenant business. Because it acquired both the business and the property, extensive due diligence has already been done, which gives bidders a strong head start.
Auction details
- Date: Thursday, 22 October 2026, 11:00
- Venue: King David, Mowbray, Cape Town
- Broker: Itai Ilouze, Director, Cape Town Auctions
- Register to bid: galetti.co.za/auction-registration
- View the full listing
