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Please consider the environment before printing this Property |
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Timelessly elegant office park in the heart of Houghton
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for sale
private treaty
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Location
Summary
- Fully tenanted investment opportunity in the heart of Houghton
- Easy accessibility to the M1 highway
- Projected net operating oncome (April 2023 – March 2024) of approximately R3.1 million
Situation
The property is situated in the commercial hub of Houghton just south of the M1 and 1st Avenue interchange, south of Killarney. The surrounding areas comprise of predominantly office properties with residential properties to the east. Killarney Mall is located less than 1km away on the opposite side of the M1 motorway.
Description
The property is developed with a part double part triple storey office block with two levels of basement parking. The property is designed in a rectangular configuration with brick walls, inset column features, aluminum frame windows and a pitched roof with cement roof tiles. The property offers 2,230 sqm of GLA along with 69 parking bays spread out across basement and covered bays.
The internal footprint of the property includes ceramic and carpeted floor tiles, suspended ceilings with fluorescent lighting and downlighting. Ablution facilities and kitchenettes are provided. The external works include bricked driveways and landscaping with the perimeter secured with a palisade fence.
Zoning and Title Deed Information
Title Deed Information
- Erf: 1129
- Township/Farm: Houghton Estate
- Tenure: Freehold
- Registered Owner: Government Employees Pension Fund
- Title Deed Number: T55796/2007
- Local Authority: City of Johannesburg
- Extent: 3,866 sqm
Zoning Information
- Scheme: Johannesburg Town Planning Scheme 1979
- Zoning: Business 4
- F.A.R: 0.6
- Coverage: 60%
- Height: 2 Storeys
- Parking: 4 Bays per 100 sqm of Gross Leasable Office Floor Area 6 Bays per 100 sqm of Gross
- Leasable Medical & Dental Consultation Floor Area
- Building Lines: 10m along West Street
Rentable Areas
| Use | Size (sqm) / Bays |
| Office | 2,320 |
| Total | 2,320 |
| Parking | Bays |
| Basement | 34 |
| Covered | 35 |
| Total | 69 |
Tenancy and Covenant
Tenancy
The property is currently fully let to 3 Sixty Health Pty Ltd, who have signed a 3-year lease with expiration in October 2023. The site was previously tenanted by Sechaba Medical Solutions Pty Ltd on a 5-year lease which expired October 2020.
The current lease can be summarised as follows:
Tenant: 3 Sixty Health (Pty) Ltd
- Area: 2,230 sqm
- Lease term: Commenced on 1 November 2022, expiring on 31 October 2023
- Rent: Current rent of R226,441 per month
- Escalation: 7% per annum
Covenant Analysis
3 Sixty Health Pty Ltd. 3 Sixty Health was founded in 1938 by black professionals (mostly doctors) with a view to establishing the first medical aid primarily targeted at previously disadvantaged black South Africans.
Today, the company is 100% black owned and is accredited by the council of medical aid schemes to offer both administration and managed care services.
Net Operating Income
FIRST YEAR NOI
| Period April 2023 – March 2024 | |
| Gross Income (ZAR) | R5,902,601 |
| Gross Expenses (ZAR) | R2,850,864 |
| Net Operating Income (ZAR) | R3,051,737 |
*A full breakdown of the projected NOI is available upon signature of an NDA, along with
tenancy Schedules and rent rolls and the balance of the due diligence information.
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
Legal Information – Disclaimer South Africa:
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