29 D F Malan Street - Aucor
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Vanderbiljpark CBD Fully Let Retail Centre Vanderbijlpark GLA – ± 5,320m² (Seller Supplied) 29 D F Malan Street Tuesday, 17 March 2020 @ 12h00 Houghton Golf Club – Osborn Road, Houghton, Johannesburg Thabo Molomo | 073 518 0742 | ThaboM@aucor.com Version 1: 5 March 2020 NT
Fully Let Retail Centre – Vanderbijlpark CBD, Vanderbijlpark Index Disclaimer, Auction Information and Terms & Conditions Page 3 Property Images Page 4 Executive Summary & Key Investment Highlights Page 6 General Information Page 7 Locality Information Page 8 Property Description Page 10 Projected Gross Annual Income – Summary Page 13 Projected Gross Annual Income - Detailed Page 14 Lease Summaries Page 15 Rates Statement Page 18 Zoning Information Page 19 Surveyor General Diagram Page 20 /AucorProperty www.aucorproperty.co.za 2
Fully Let Retail Centre – Vanderbijlpark CBD, Vanderbijlpark Disclaimer, Auction Information and Terms & Conditions Disclaimer Whilst all reasonable care has been taken to provide accurate information, neither Aucor Corporate (Pty) Ltd T/A Aucor Property nor the Seller/s guarantee the correctness of the information provided herein and neither will be held liable for any direct or indirect damages or loss, of whatsoever nature, suffered by any person as a result of errors or omissions in the information provided, whether due to negligence or otherwise of Aucor Corporate (Pty) Ltd T/A Aucor Property or the Seller/s or any other person. ________________________________________________________________________________________________________ Auction Information Deposit 5% of the bid price Commission 10% plus 15% VAT thereon of the bid price Confirmation period 2 Business Days Rules of auction and conditions of sale are available at www.aucorproperty.co.za/ ________________________________________________________________________________________________________ Terms & Conditions R50 000 refundable deposit (strictly bank guaranteed cheque or cash transfer only). Bidders must provide original proof of identity and residence on registration. No cash will be accepted at the auction. No exceptions. All bids are exclusive of VAT. Aucor Property may bid up to reserve on behalf of the sellers. Subject to change without notification. Auctioneer: Pieter Geldenhuys. /AucorProperty www.aucorproperty.co.za 3
Fully Let Retail Centre – Vanderbijlpark CBD, Vanderbijlpark Property Images Aerial Images Boundary lines are not to scale and are drawn for illustrative purposes only Boundary lines are not to scale and are drawn for illustrative purposes only /AucorProperty www.aucorproperty.co.za 4
Fully Let Retail Centre – Vanderbijlpark CBD, Vanderbijlpark Property Images /AucorProperty www.aucorproperty.co.za 5
Fully Let Retail Centre – Vanderbijlpark CBD, Vanderbijlpark Executive Summary & Key Investment Highlights Street Address: 29 D F Malan Street - Vanderbijlpark CBD, Vanderbijlpark GPS Coordinates: -26.7020, 27.8374 Registered Land Sizes: 5,976m² Zoning: 'Special' (See t he zoning cert ificat e at t ached t o t his brochure) Assessment Rates: R22,601.33 / month (excluding consumpt ion charges and cit y levies) Accommodation: See from page 11 for full accommodat ion det ails: The improvements on the subject property comprise of a convenience shopping centre with a rectangular footprint and a gross lettable area of ± 5,320m². The site has excellent visibility and exposure onto Jan van Riebeeck Boulevard and D F Malan Street along which it is located and enjoys easy access from the adjoining important arterial road that is Jan van Riebeeck Boulevard. The centre has been configured to host approximately 6 units of varying size, but similar configuration. The building feature covered walkways along the shop front extents facing the interlock brick paved parking lot. Each of the units are accessible from the delivery yard located behind the main building. Approx. Total Gross Lettable Area: ± 5,320m² (Seller supplied) Occupation: The property is multi-let. See pages 13-17 for details. Situated in the bustling, primary trading node of Vanderbijlpark. The site enjoys excellent visibility due to its exposure to the busy Jan van Riebeeck Boulevard (a primary arterial road coming into the area) and D F Malan Street along which the site is located. Key Investment Highlights: Fully let retail facility, with strong income generating capacity. Ideal investment property with a Projected Gross Annual Income of ± R 1,450,000 in the first year of ownership (including recoverable expenses). Unless otherwise stated, all movables and tenant installed equipment Exclusions: (air-conditioning units, generators, etc.) are excluded from the sale of this property. By bidding on t his propert y, t he purchaser acknowledges t hat he has acquaint ed himself wit h t he ext ent and t he nat ure of t he propert y he is buying, and t hat he accept s t he propert y as such. /AucorProperty www.aucorproperty.co.za 6
Fully Let Retail Centre – Vanderbijlpark CBD, Vanderbijlpark General Information Street Address 29 D F Malan Street - Vanderbijlpark CBD, Vanderbijlpark GPS Coordinates -26.7020, 27.8374 ________________________________________________________________________________________________________ Title Deed Information Title Deed Number T20625/2016 Registered Owner Marble Gold 1002 CC Title Deed Description Erf 29 Vanderbijlpark Registered Land Size 5,976m² Title Deed Conditions A copy of the Title Deed is on hand and will be made available to bona fide purchasers upon request. ________________________________________________________________________________________________________ Municipality Information Municipality Emfuleni Local Municipality Rates Excluding consumption charges and city levies. Based on the tax invoice as supplied by council to the seller for the August 2019 billing period. See a copy attached to this brochure for these and other charges. 2019 / 2020 Municipal 2019 / 2020 2019 / 20 Annual Exclusion Rebate Monthly Rates Valuation Tariff Rates (Annual ÷12) R 10 120 000 N/A N/A 0.0268000 R 271 215.96 R 22 601.33 ________________________________________________________________________________________________________ Zoning Information Zoning 'Special' - See zoning confirmation attached to this brochure Permitted Uses (per amendment scheme) “…Shops, Business buildings, Place of Instruction, Place of Amusement, Social halls, Fish fryers and Fish mongers” Height Three (3) Storeys Floor Area Ratio 3.0 / 17,928m² Coverage N/A Density N/A Building Lines 10m from Jan van Riebeeck Boulevard Parking Requirements See zoning certificate as attached /AucorProperty www.aucorproperty.co.za 7
Fully Let Retail Centre – Vanderbijlpark CBD, Vanderbijlpark Locality Information Macro Locality The subject property is situated in the primary trading node of the Vanderbijlpark CBD, which services the greater town of Vanderbijpark, which encompasses a host of student accommodation developments (including those in nearby residential hubs), as well as Sebokeng. The town has a concentric design with the CBD at the very centre thereof. The CBD is thus well-serviced by a comprehensive network of roads and is accessible via a number of avenues. Jan Van Riebeeck Boulevard, onto which the property has excellent frontage, is one of the major roads coming into the CBD. The property is therefore exposed to significant volumes of passing vehicular traffic. The property further benefits from exposure to the additional traffic generated by the shopping centre (located across the road), as well as the Emfuleni Mediclinic, both of which are major drivers of activity in the area. All municipal services are accessible from the property. GPS coordinates for the the site are as follows: -26.7020, 27.8374 Image Data: Google, AfriGIS (Pty) Ltd, DigitalGlobe /AucorProperty www.aucorproperty.co.za 8
Fully Let Retail Centre – Vanderbijlpark CBD, Vanderbijlpark Locality Locality Information Information Micro Locality Vaal Walk Image Data: Google, AfriGIS (Pty) Ltd, DigitalGlobe /AucorProperty www.aucorproperty.co.za 9
Fully Let Retail Centre – Vanderbijlpark CBD, Vanderbijlpark Property Locality Information Description Approximate Boundaries N Image Data: CSG; Esri, HERE, Garmin, NGA, USGS /AucorProperty www.aucorproperty.co.za 10
Fully Let Retail Centre – Vanderbijlpark CBD, Vanderbijlpark Property Description Accommodation The improvements on the subject property comprise of a convenience shopping centre with a rectangular footprint and a gross lettable area of ± 5,320m². The site has excellent visibility and exposure onto Jan van Riebeeck Boulevard and D F Malan Street along which it is located and enjoys easy access from the adjoining important arterial road that is Jan van Riebeeck Boulevard. The centre has been configured to host approximately 6 units of varying size, but similar configuration. The building feature covered walkways along the shop front extents facing the interlock brick paved parking lot. Each of the units are accessible from the delivery yard located behind the main building. ________________________________________________________________________________________________________ Additional Features The building features the following additional features: • Covered walkways along the shop fronts • Shared access to a delivery yard at the rear of the building for tenants • Shared access to ablutions accommodated in an outbuilding in a part of the delivery yard • Security features including lock-up roller shutter doors along the shop fronts and a brick wall fence topped with an 8-string electric fence along the delivery yard perimeter • Street front parking along D F Malan Street, as well as a small asphalt paved parking lot (exclusive to the property) ________________________________________________________________________________________________________ Construction The building is constructed of a cast in-situ concrete frame with large glass panels along the shop fronts facing the D F Malan Street, under a roof constructed of a tile roof, which extends over the sheet facing shop fronts and effectively constitutes the covered walkway along the shop fronts. ________________________________________________________________________________________________________ Fixtures and Finishes The units have been finished and fitted out according to the specifications and requirements of the respective tenants ________________________________________________________________________________________________________ Utilities All utilities such as water & sanitation and electricity are supplied by the Emfuleni Local Municipality ________________________________________________________________________________________________________ Gross Lettable Areas ± 5,320 m² - Seller supplied ________________________________________________________________________________________________________ /AucorProperty www.aucorproperty.co.za 11
Fully Let Retail Centre – Vanderbijlpark CBD, Vanderbijlpark Property Description Parking The building enjoys access to street front parking along D F Malan Street, as well as a small asphalt paved parking lot (exclusive to the property) ________________________________________________________________________________________________________ Perimeter The perimeter is partially defined by the primary building, with the street facing extents being generally unbounded. A portion of the northern boundary and the whole of the western boundary are enclosed by way of brick wall fencing topped with an 8-string electric fence. ________________________________________________________________________________________________________ Occupation The property is multi-let. See pages 13-18 for details. ________________________________________________________________________________________________________ Condition While the building is generally well maintained and offers excellent curb appeal. No structural survey of the building has been undertaken nor have tests or inspections of service installations been arranged. By bidding on this property, the purchaser acknowledges that he has acquainted himself with the extent and the nature of the property he is buying and that he accepts the property as such. /AucorProperty www.aucorproperty.co.za 12
Fully Let Retail Centre – Vanderbijlpark CBD, Vanderbijlpark Projected Gross Annual Income - Summary Contractual Cashflow Projections - June 2020 to May 2021 Approx. Premises Item / Tenant Start Date Expiry Date Esc Esc Area / Total Units Shop 1 Drosdy Meubileerders 01/08/2019 31/07/2022 8.0% 10% 1952.59 R 636 000 Shop 2 Ms M.M. Maloka t/a Tile & Décor 01/05/2019 30/04/2020 6.5% 0% 1191.59 R 208 420 Shop 3 LI Cash & Carry (Pty) Ltd t/a China Cash & Carry 01/10/2017 30/09/2020 8.0% 0% 1254.18 R 343 980 Bonny Events Management (Pty) Ltd t/a Angelic Shop 4 Month-to-Month 6.0% 0% 152.33 R 124 898 Brides Shop 5 Vaal Triangle Computers and Books (Pty) Ltd 01/03/2019 28/02/2021 7.0% 0% 152.46 R 125 653 Shop 6 Buyworths (Pty) Ltd t/a Dismart 01/07/2018 31/05/2020 8.0% 0% 616.74 R 226 800 R 1 665 750.91 Tenancy Summary Additional Income/Recoverable expenses Occpied Lettable Area 5 320 Assessment Rates R 64 764 Vacant Lettable Area 0 Total GLA 5 320 Contractual Cash Outflows/Property Expenses Assessment Rates (271 216) Refuse Removal (6 434) (277 650) Gross Annual Income R 1 452 865 Not es/Assumpt ions 1. The Basic rent , Escalat ion rat e and t he approximat e area of t he various unit s (ret ail and office) are as ext ract ed from t he Tenancy Schedule as at December 2019 and as supplied by t he Seller. 2. The salient lease t erms cont emplat ed in t he above analysis have been verified t o t he relevant lease agreement s. 3. Tenant s are responsible for a share of municipal rat es and t axes increases. The port ion of t he recoverable amount has t hus been included in income and t he full expense included in t he cont ract ual expenses analysis in order t o t ake int o account t he effect s of t he under-recovery on t he rat es and t axes. 4. All amount s represent ed above are exclusive of VAT. 5. Only cont ract ual cash flows have been considered in t he above analysis. Dat e: 6. Where t he lease expires during t he course of t he project ion period, t he basic rent al has not been escalat ed. 2020/03/05 Special Not e - The rent al informat ion in t his brochure is not int ended t o const it ut e specific advice nor t o subst it ut e for a due diligence exercise, and accordingly should not be relied upon t o make a purchase decision. Prospect ive purchasers should make t heir own enquiries and invest igat ion t o confirm pert inent informat ion and forecast s, and should furt her seek appropriat e independent professional advice in relat ion E & OE /AucorProperty www.aucorproperty.co.za 13
Contractual Cashflow Projections - June 2020 to May 2021 Approx. Premises Item / Tenant Start Date Expiry Date Esc Esc Area / Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Total Units Shop 1 Drosdy Meubileerders 01/08/2019 31/07/2022 8.0% 10% 1952.59 R 50 000 R 50 000 R 50 000 R 54 000 R 54 000 R 54 000 R 54 000 R 54 000 R 54 000 R 54 000 R 54 000 R 54 000 R 636 000 Shop 2 Ms M.M. Maloka t/a Tile & Décor 01/05/2019 30/04/2020 6.5% 0% 1191.59 R 17 000 R 17 000 R 17 000 R 17 000 R 17 000 R 17 000 R 17 000 R 17 000 R 18 105 R 18 105 R 18 105 R 18 105 R 208 420 Shop 3 LI Cash & Carry (Pty) Ltd t/a China Cash & Carry 01/10/2017 30/09/2020 8.0% 0% 1254.18 R 28 665 R 28 665 R 28 665 R 28 665 R 28 665 R 28 665 R 28 665 R 28 665 R 28 665 R 28 665 R 28 665 R 28 665 R 343 980 Bonny Events Management (Pty) Ltd t/a Angelic Shop 4 Month-to-Month 6.0% 0% 152.33 R 10 105 R 10 105 R 10 105 R 10 105 R 10 105 R 10 105 R 10 711 R 10 711 R 10 711 R 10 711 R 10 711 R 10 711 R 124 898 Brides Shop 5 Vaal Triangle Computers and Books (Pty) Ltd 01/03/2019 28/02/2021 7.0% 0% 152.46 R 10 291 R 10 291 R 10 291 R 10 291 R 10 291 R 10 291 R 10 291 R 10 291 R 10 291 R 11 011 R 11 011 R 11 011 R 125 653 Shop 6 Buyworths (Pty) Ltd t/a Dismart 01/07/2018 31/05/2020 8.0% 0% 616.74 R 18 900 R 18 900 R 18 900 R 18 900 R 18 900 R 18 900 R 18 900 R 18 900 R 18 900 R 18 900 R 18 900 R 18 900 R 226 800 /AucorProperty R 134 961.00 R 134 961 R 134 961 R 138 961 R 138 961 R 138 961 R 139 567 R 139 567 R 140 672 R 141 393 R 141 393 R 141 393 R 1 665 750.91 Tenancy Summary Additional Income/Recoverable expenses Occpied Lettable Area 5 320 Assessment Rates R 5 397 R 5 397 R 5 397 R 5 397 R 5 397 R 5 397 R 5 397 R 5 397 R 5 397 R 5 397 R 5 397 R 5 397 R 64 764 Vacant Lettable Area 0 Total GLA 5 320 Contractual Cash Outflows/Property Expenses Assessment Rates (22 601) (22 601) (22 601) (22 601) (22 601) (22 601) (22 601) (22 601) (22 601) (22 601) (22 601) (22 601) (271 216) Refuse Removal (536) (536) (536) (536) (536) (536) (536) (536) (536) (536) (536) (536) (6 434) (23 138) (23 138) (23 138) (23 138) (23 138) (23 138) (23 138) (23 138) (23 138) (23 138) (23 138) (23 138) (277 650) Gross Annual Income R 117 221 R 117 221 R 117 221 R 121 221 R 121 221 R 121 221 R 121 827 R 121 827 R 122 932 R 123 652 R 123 652 R 123 652 R 1 452 865 Not es/Assumpt ions 1. The Basic rent , Escalat ion rat e and t he approximat e area of t he various unit s (ret ail and office) are as ext ract ed from t he Tenancy Schedule as at December 2019 and as supplied by t he Seller. 2. The salient lease t erms cont emplat ed in t he above analysis have been verified t o t he relevant lease agreement s. 3. Tenant s are responsible for a share of municipal rat es and t axes icnreases. The port ion of t he recoverable amount has t hus been Fully Let Retail Centre – Vanderbijlpark CBD, Vanderbijlpark included in income and t he full expense included in t he cont ract ual expenses analysis in order t o t ake int o account t he effect s of t he 4. All amount s represent ed above are exclusive of VAT. 5. Only cont ract ual cash flows have been considered in t he above analysis. 6. Where t he lease expires during t he course of t he project ion period, t he basic rent al has not been escalat ed. Special Not e - The rent al informat ion in t his brochure is not int ended t o const it ut e specific advice nor t o subst it ut e for a due diligence exercise, and accordingly should not be relied upon t o make a purchase decision. Prospect ive purchasers should make t heir own enquiries and invest igat ion t o confirm pert inent informat ion and forecast s, and should furt her seek appropriat e independent professional advice in relat ion t heret o from suit ably qualified professionals t o complet e t heir own due diligence in relat ion t o t he Propert y. Dat e: 2020/03/05 E & OE www.aucorproperty.co.za Projected Gross Annual Income 14
Fully Let Retail Centre – Vanderbijlpark CBD, Vanderbijlpark Lease Summaries These lease summaries should not be relied upon in isolation and should be read in conjunction with the executed lease documents, copies of which are on hand and will be made available to bona fide prospective purchasers upon request. ________________________________________________________________________________________________________ Lease 1 Tenant Drosdy Meubileerders Rentable Area Shop 1 – 1,952.59m² Start Date 1 August 2019 Expiry Date 31 July 2022 Renewal Period Not applicable Escalation Rate 5% per annum Monthly Rental (excl VAT)* R50,000 / month Tenant’s Pro Rata Share 36.4% Additional Charges 1. The lessee agrees to pay a proportionate share of increases in the assessment rates, sanitation, refuse, sewer, basic charges, business surcharge levy and any other charges imposed by the local authority on the building during the currency of the lease. 2. The lessee shall be liable for and shall pay on due date all deposits and all charges levied for electric current and water consumed in the premises, and all sanitary, sewerage, rubbish and refuse removal fees levied in respect of the premises. ________________________________________________________________________________________________________ Lease 2 Tenant M.M. Maloka t/a Tile & Decor Rentable Area Shop 2 – 1,191.59m² Start Date 1 May 2019 Expiry Date 30 April 2020 Renewal Period Not applicable Escalation Rate Not applicable Monthly Rental (excl VAT)* R17,000 / month Tenant’s Pro Rata Share 22.3% Additional Charges 1. The lessee agrees to pay a proportionate share of increases in the assessment rates, sanitation, refuse, sewer, basic charges, business surcharge levy and any other charges imposed by the local authority on the building during the currency of the lease. 2. The lessee shall be liable for and shall pay on due date all deposits and all charges levied for electric current and water consumed in the premises, and all sanitary, sewerage, rubbish and refuse removal fees levied in respect of the premises. /AucorProperty www.aucorproperty.co.za 15
Fully Let Retail Centre – Vanderbijlpark CBD, Vanderbijlpark Lease Summaries Lease 3 Tenant LI Cash and Carry (Pty) Ltd Rentable Area Shop 3 – 1,254.18m² Start Date 1 October 2017 Expiry Date 30 September 2020 Renewal Period Not applicable Escalation Rate 5% per annum Monthly Rental (excl VAT)* R28,665 / month Tenant’s Pro Rata Share 23.5% Additional Charges 1. The lessee agrees to pay a proportionate share of increases in the assessment rates, sanitation, refuse, sewer, basic charges, business surcharge levy and any other charges imposed by the local authority on the building during the currency of the lease. 2. The lessee shall be liable for and shall pay on due date all deposits and all charges levied for electric current and water consumed in the premises, and all sanitary, sewerage, rubbish and refuse removal fees levied in respect of the premises. ________________________________________________________________________________________________________ Lease 4 Tenant Bonny Events Management (Pty) Ltd Rentable Area Shop 4 – 152.33m² Start Date 1 December 2015 Expiry Date 30 November 2016* Renewal Period Not applicable Escalation Rate Not applicable Monthly Rental (excl VAT)* R 10,291.00 / month Tenant’s Pro Rata Share 2.86% Additional Charges 1. The lessee agrees to pay a proportionate share of increases in the assessment rates, sanitation, refuse, sewer, basic charges, business surcharge levy and any other charges imposed by the local authority on the building during the currency of the lease. 2. The lessee shall be liable for and shall pay on due date all deposits and all charges levied for electric current and water consumed in the premises, and all sanitary, sewerage, rubbish and refuse removal fees levied in respect of the premises. * The tenant currently occupies this unit on a month-to-month basis and has done so since the lease expired at the end of November 2016. ________________________________________________________________________________________________________ /AucorProperty www.aucorproperty.co.za 16
Fully Let Retail Centre – Vanderbijlpark CBD, Vanderbijlpark Lease Summaries Lease 5 Tenant Vaal Triangle Computers and Books (Pty) Ltd Rentable Area Shop 5 – 152.46m² Start Date 1 March 2019 Expiry Date 28 February 2021 Renewal Period Not applicable Escalation Rate 8% per annum (basic area rental & refrigerator) Monthly Rental (excl VAT)* R 10,921.00 / month Tenant’s Pro Rata Share 2.8% Additional Charges 1. The lessee agrees to pay a proportionate share of increases in the assessment rates, sanitation, refuse, sewer, basic charges, business surcharge levy and any other charges imposed by the local authority on the building during the currency of the lease. 2. The lessee shall be liable for and shall pay on due date all deposits and all charges levied for electric current and water consumed in the premises, and all sanitary, sewerage, rubbish and refuse removal fees levied in respect of the premises. ________________________________________________________________________________________________________ Lease 6 Tenant Buyworths (Pty) Ltd t/a Dismart Rentable Area Shop 6 – 616.74m² Start Date 1 June 2018 Expiry Date 31 May 2020 Renewal Period Not specified Escalation Rate 8% per annum Monthly Rental (excl VAT)* R18,900 / month Tenant’s Pro Rata Share 11.59% Additional Charges 1. The lessee agrees to pay a proportionate share of increases in the assessment rates, sanitation, refuse, sewer, basic charges, business surcharge levy and any other charges imposed by the local authority on the building during the currency of the lease. 2. The lessee shall be liable for and shall pay on due date all deposits and all charges levied for electric current and water consumed in the premises, and all sanitary, sewerage, rubbish and refuse removal fees levied in respect of the premises. ________________________________________________________________________________________________________ /AucorProperty www.aucorproperty.co.za 17
Fully Let Retail Centre – Vanderbijlpark CBD, Vanderbijlpark Rates Statement /AucorProperty www.aucorproperty.co.za 18
Fully Let Retail Centre – Vanderbijlpark CBD, Vanderbijlpark Zoning Information /AucorProperty www.aucorproperty.co.za 19
Fully Let Retail Centre – Vanderbijlpark CBD, Vanderbijlpark Surveyor General Diagram The lease over the area depicted by L1 appears to have lapsed. The title deed makes no mention of the lease and no other record of the original lease document could be obtained through Windeed. Prospective purchasers should consult a competent professional to verify this. /AucorProperty www.aucorproperty.co.za 20
Fully Let Retail Centre – Vanderbijlpark CBD, Vanderbijlpark /AucorProperty www.aucorproperty.co.za 21
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