PROPERTY DESCRIPTION
Purposefully developed double story office building, with a gross lettable area of 2522m2. The ground floor of the building, measuring 1501m2 is currently a white box and vacant. The first floor of the building, measuring 1020m2 offers standard type interior finishes and fittings. The property has an almost square shape and borders onto a vacant section of land, used as a parking lot and three roads, due to the property being a corner stand erf. The overall fittings and finishes, includes brick wall construction, tiles and carpets, face, plastered and painted brick, concrete and suspended ceilings, pitched clay tile roofs and aluminium windows. The site is level and offers one vehicle access point from Murray Street on the western side.
PROPERTY LOCATION
The
property is located along Walter Sisulu Avenue, on the East and Retief Street on the South. It is located within the Potchefstroom CBD area. The surrounding properties comprise shops, offices, residential properties and a hotel. The property is well situated with easy access to tarred main and secondary road links, close to the N12 National Freeway from Klerksdorp and Johannesburg. The property is situated in close proximity to all the necessary amenities. All services like schools, churches, hospitals and other emergency services are available close-by in the Potchefstroom area.
POTENTIAL INVESTMENT OPPORTUNITY
A tenant has been in occupation on the first floor since 1 May 2019. Their initial lease was for a 5 year period, ending 30 April 2024. They have extended their lease for a further 3 year period, commencing 1 May 2024 and ending on the 30 April 2027. They are leasing a total of 993.40m2 of the first floor, leaving 26.6m2 vacant. The starting gross monthly rental for is R95 606.95, plus vat. The rental escalates at 7% per annum. The ground floor measuring 1501m2 was occupied by standard bank, but is currently vacant and a white box. This space could potentially attract a monthly income of approximately R144 459.46, plus vat. The property would suit an owner occupier, who could occupy the ground floor and also enjoy the rental income from the first floor rental.
POTENTIAL INVESTMENT ANALYSIS
Gross Annual Income: R2 880 796
Annual Expenditure: R854 315
Net Annual Income: R2 028 481
Initial Yield: 10.14%
Asking Price: R20 000 000, plus vat
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