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Multi-storey Office Building
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for sale
private treaty
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Location
Summary
- Situated within the well established Parktown Node, this property is conveniently positioned just 3.30 km from the Johannesburg CBD
- Surrounded by numerous prominent amenities, the location offers excellent accessibility to both the Johannesburg CBD and Rosebank.
- The property is characterized by robust security measures and provides ample parking facilities.
- In terms of financial outlook, the first year’s forward Net Operating Income for the period spanning from April 1, 2024 to March 31, 2025 is estimated to be approximately R7.7 million
Situation
Nestled along Junction Avenue in Parktown, this property enjoys a strategic location within the Parktown node, positioned 3km north of the Johannesburg CBD and 5km south of Rosebank. The surrounding area is distinguished by a blend of commercial offices, healthcare establishments, and educational institutions, student accommodation, harmoniously enveloped by well-established residential suburbs.
Conveniently situated within walking distance of both the Rea Vaya Bus Rapid Transit Route (BRT) station and the Gautrain Bus Route Station, the property ensures easy accessibility and seamless connectivity. Boasting direct access to Empire Road, a primary thoroughfare for major public transport routes, it facilitates swift connections between the CBD and the northern, southern, eastern, and western suburbs.
The node is surrounded by notable amenities, including esteemed tertiary institutions such as Wits Education Campus, Wits Health Sciences Campus, Central Johannesburg College, and Roedean Senior School. Healthcare needs are met by proximity to renowned hospitals such as Johannesburg General, Charlotte Maxeke Johannesburg, Nelson Mandela Children’s Hospital, Netcare Park Lane (adjacent to the property), and Life Brenthurst Clinic. Additionally, residents can enjoy the natural beauty of The Wilds Nature Reserve and Pieter Roos Park.
Description
Comprising two interconnected multi-storey buildings in a rectangular configuration, this property consists of Block A and B, standing at four and five storeys respectively.
Presently, the Road Accident Fund (RAF) occupies 60% of the total office Gross Lettable Area (GLA), amounting to 10,410 sqm. Additionally, a new tenant manages a canteen on the ground floor of Block A, occupying 445 sqm with a rent-free period until March 31, 2023. Notably, there is currently 3,465 sqm of office GLA available for lease.
The property offers 334 parking bays distributed between open and basement spaces, accessible through a one-way entrance and exit system along Junction Avenue. The buildings feature a concrete frame adorned with face brick walls, powder-coated aluminum elements, and concrete roofs. Internally, the offices are air-conditioned, equipped with suspended ceilings, and include a mix of open-plan and drywall-partitioned offices, kitchenettes, and storerooms. Passenger lifts in each block facilitate access to the upper floors across both Block A and B.
Title and Zoning Description
Title Deed Number | T6370/2009 |
Registered Owner | The GEPF |
Erf Number | 895 Parktown |
Extent | 13,383 sqm |
Local Authority | City of Johannesburg |
Tenure | Freehold |
Zoning | Business 4 |
Primary Rights | Offices, a dwelling unit for a caretaker |
Height Restriction | 12 Storeys |
Coverage | TBC |
FAR | 0.9 |
Parking Requirements | As per scheme |
Parking Bays | Basement: 179, Open: 155 |
Tenancy and Covenant
Tenancy
Tenant: Road Accident Fund (RAF) Area: 6,500 sqm
Lease term: 5 years
Lease Start: 01 July 2020
Lease Expiry: 30 June 2025
Rent: R856,288 per month
Escalation: 6% per annum
Tenant: Nokukhanya Investment (Pty) Ltd Area: 445 sqm
Lease term: 1 year (Currently on a month-to- month)
Lease Start: 01 October 2022
Lease Expiry: 30 September 2023 Rent: R11,799 per month
Escalation: 6% per annum
Covenant
The Road Accident Fund (RAF) is a state insurer that provides insurance cover to all divers of motor vehicles in South Africa in respect of liability incurred or damage caused because of a traffic collision.
The RAF is a juristic person established by an Act of Parliament, namely, the Road Accident Fund.
Act, 1996 (Act No. 56 of 1996), as amended (”RAF Act”). It commenced operations on 1 May 1997, assuming at the time, all the rights, obligations, assets and liabilities of the Multilateral Motor Vehicle Accidents Fund. The RAF is responsible for providing compulsory social insurance cover to all users of South African roads; to rehabilitate and compensate persons injured as a result of the negligent driving of motor vehicles in a timely and caring manner; and to actively promote the safe use of all South African roads.
Net Operating Income
Period: 1 April 2024 – 31 March 2025
Gross Income R16,378,248
Gross Expenses R8,670,054
Net Operating Income R7,708,194
- A full breakdown of the projected NOI is available upon signature of an NDA, along with tenancy schedules, rent rolls and plans where available.
- No rental has been applied to the vacant areas. 3,465 sqm of office space is currently vacant.
VAT
The Seller has been registered for VAT (Value Added Tax). It is intended that the sale will be treated as a transfer of a going concern, provided that the purchaser is registered for VAT and the requirements for going concern are met in terms of the VAT Act, No. 89 of 1991.
Sales process
This property is being sold by way of a single stage open private treaty process.
Interested parties are requested to notify us of their interest to purchase the property in writing to the email addresses of the agents provided herein. To investigate the opportunity in greater detail interested parties will also be expected to submit and conclude the Seller’s Standard Non-Disclosure Agreement (“NDA”) – available under the Downloads tab.
The NDA must be completed if the purchasers want access to a comprehensive due diligence data room. In the data room bidders will gain access to:
- A comprehensive Open Private Treaty Process Letter (setting how offers must be submitted);
- Property specific due diligence information; and
- A template sale and purchase agreement.
Bids will be accessed on three main criteria:
- Price;
- Ability to perform / track record & proof of funds; and
- Conditionality (i.e. speed of performance).
Disclaimer
The website provides information about properties but does not guarantee its accuracy. Users access the site at their own risk and should seek professional advice before making any decisions based on the information provided. Property descriptions are general and do not constitute an offer or contract. All details are believed to be correct but should be verified by users. The company and its employees do not make any representations or warranties regarding the properties. Prices quoted are exclusive of taxes. The information on the website may contain errors, omissions, or may change without notice. Users should conduct their own investigations before making any investment decisions. The information provided should not be considered financial or investment advice. Any information given by the company or the vendor is for illustration purposes only and does not constitute a representation, condition, or warranty. Users are responsible for conducting their own due diligence to verify the accuracy of the information provided.
Contacts
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CBRE Excellerate
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Joint Agency
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Disclaimer
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