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Protected: Sale and Leaseback Opportunity, Secunda
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for sale
Private Treaty
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Location
Mpumalanga is bordered by Mozambique and Eswatini. It is made up of three district municipalities: Gert Sibande, Nkangala and Ehlanzeni. It is home to the famous Kruger National Park, where South Africa’s big five animals can be spotted roaming the reserve. The province is also famous for God’s Window, the Three Rondavels, and the Blyde River Canyon.
Economically, the province is popularly known for its coal mining operations. Mpumalanga is singlehandedly responsible for approximately 80% of the country’s mined coal. In 2022, the province contributed close to 8% of South Africa’s GDP.
The largest industries in the Gert Sibande local municipality, where the property is situated, are manufacturing, mining, energy generation/supply, and agriculture. The area is home to Eskom, Mondi and other gold and coal mines. Sasol also has operations in the town via Secunda CTL – the world’s largest coal liquefaction plant. This facility is essential to the mining and agriculture industry, and supplies approximately 30% of the country’s liquid fuels.
A 2022 census revealed the province had a population of 5,143,324 – making it the 6th most populous in the country. Its working age population (1564 years) is healthy at of 66,4%, with Sasol being the primary employer in the area.
Summary
Prime Location & Trade Area
- Situated at PDP Kruger and Kiewiet Street, centrally located within a thriving commercial node.
- Surrounded by residential areas, ensuring a strong base of employees, clients, and customers.
Exceptional Visibility & Amenities
- High exposure with approximately 120m frontage onto PDP Kruger.
- Unique lakefront setting with views of Lake Umuzi, walking trails, and an onsite entertainment area.
- Superior infrastructure, including shaded and basement parking, a 10,000litre JoJo tank, solar PV backup, and an industrialsize generator.
Strong Tenant & Secure Investment
- Sale and leaseback structure ensures immediate cash flow.
- Long term lease with an established EPC industry leader strategically located near Sasol.
- Secure environment with palisade fencing, a guardhouse, and a vibrant mix of hospitality and recreational establishments.
Vibrant Commercial Node & Future Growth Potential
- Mixed-use hub with restaurants, healthcare offices, boutique hotels, and a retail centre.
- Overlooks AquaZone Waterpark and benefits from first mover advantages in a growing region.
Leaseback agreement set at market rent for an initial 10 year term, with an option for a further 10 years.
Situation
The site is located in Secunda Central, a node busting with activity thanks to its presence of schools, offices, restaurants and shops. The town was built to house the labour force in response to the construction of Sasol facilities which produce synthetic fuel, diesel and related petrochemicals.
Secunda is situated in the Govan Mbeki local municipality – which contributed approximately 10,6% to Mpumalanga’s economy. This makes it the 4th largest contributing municipality out of the province’s 17. The town has wellestablished infrastructure and is densely populated with approximately 40,000 inhabitants.
Secunda has an airfield, which is located on the SouthWest outskirts of the town, facilitating easy access from other cities and provinces. Additionally, the town has a casino and country club, which together, attract tourists and highincome earners.
Secunda Mall has been the only regional shopping centre in the locality since it opened its doors in 2013. With over 90 shops to choose from, shoppers from the neighbourhood and surrounds are spoilt for choice. Whether topping up on household essentials or meeting friends over a cup of coffee this mall attracts considerable traffic.
Description
The property is a triple storey Grade A office building with a detached security office at the main entrance. Built in 2012 with suitability principles, the property is of an outstanding quality with its timeless design being informed by green building principles. The site also features an entertainment area, is situated along the banks of Lake Umuzi, and has along with it, ample parking and backup electricity.
The property is visually striking and is made up of three stories of office space, one full subbasement for parking and a detached entertainment area. The contemporary and futureproof design makes it an attractive investment, positioning it to benefit from future developments and growth.
The office boasts impressive views of Lake Umuzi and has access to walking trails, restaurants and shops. Step into an impeccably crafted office complex designed to achieve premium rental rates and attract top tier tenants.
Forecasted Monthly Rates & Taxes
Current Rates & Taxes: R40 161.00
Title Deed Information
| Title Deed Number | T16854/2018 |
| Legal Description | Portion 1 of Erf 8491 in the township Secunda Extension 28, Registration Division IS, Mpumalanga Province. |
| Registered Owner | K2018239548 (SOUTH AFRICA) PTY LTD |
| Local Authority | Govan Mbeki Local Municipality |
Zoning Information
| Zoning | Business 1 |
| Primary Uses | Offices |
| Coverage | 40% |
| Height | 3 Floors |
| Parking | As approved with submission of Site Development Plan. (4.5 / 100m² GLA = 156 bays) |
| Building Lines | Street – 5 meters Rear – 2 meters Left – 2 meters Right – 2 meters |
| Servitudes | K75/2012S – The subject property is subject to a praedial servitude of conveying electricity, at least 3 metres wide from the substation along the boundary of the property of the servient tenement (the servitude area). |
| K76/2012S – The subject property is subject to a praedial servitude of conveying electricity, at least 3 metres wide from the substation along the boundary of the property of the servient tenement (the servitude area). |
Rentable Areas
| Area Description | Lettable m² | Gross m² | |
| Ground Floor | Lobby lift and stairs | 52 | |
| Reception Area | 100 | 100 | |
| Office Space | 922 | 922 | |
| Ablutions | 32 | 32 | |
| Balconies | 45 | 45 | |
| First Floor | Lobby lift and stairs | 52 | |
| Waiting area | 62 | 62 | |
| Tea kitchen | 16 | 16 | |
| Canteen | 30 | 30 | |
| Ablutions | 33 | 33 | |
| Print rooms and storage | 39 | 39 | |
| Office space and boardrooms | 838 | 838 | |
| Balconies | 45 | 45 | |
| Second Floor | Lobby lift and stairs | 52 | |
| Waiting area | 5 | 5 | |
| Tea kitchen | 16 | 16 | |
| Canteen | 30 | 30 | |
| Ablutions | 37 | 37 | |
| Print rooms and storage | 53 | 53 | |
| Office space and boardrooms | 892 | 892 | |
| Balconies | 45 | 45 | |
| Lower Ground Floor (Parking) | Lobby lift and stairs | 56 | |
| Parking area | 941 | ||
| Refuse area | 30 | ||
| Store room | 87 | 87 | |
| Outbuildings | Entertainment area (Lapa) | 86 | 92 |
| Covered veranda | 57 | 57 | |
| Guard house | 9 | ||
| Total | 3470 | 4668 |
Tenancy
Proposed Transaction Structure
Transaction Type: Can be structured as either an asset or share sale.
Tenant Guarantor: All leases will be guaranteed by the holding company with market related guarantees.
Lease Term: 10 years.
Renewal Option: One contractual renewal right of 10 years at the tenant’s discretion.
Alienation:
- Tenant may sublease, provided subleases align with permitted use and can be terminated if the main lease ceases.
- Lease assignment to a third party requires landlord’s consent, which shall not be unreasonably withheld or delayed.
Repair & Maintenance:
- New leases will be on a Triple Net lease basis upon completion of the sale.
- Tenant will be responsible for all maintenance (ordinary and extraordinary), repairs, replacements, property taxes, and property insurance, ensuring no costs are passed to the landlord where legally permissible.
Rental Inflation: Rental escalations will be determined by CPI or a mutually agreed fixed escalation rate.
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 offered for sale through a Private Treaty process under a Sole Marketing Mandate with CBRE-X online.
Interested parties can register on the CBRE-X online platform to access the Non-Disclosure Agreement (NDA).
To obtain full access to the Due Diligence information in the data room, an executed NDA is required, along with details about the entity and key individuals expressing interest in the property. This information may be provided through a link to your company website, a company profile, or brief resumes for the company and key individuals involved.
To submit an offer on the property, proof of funds or a comfort letter from a financial institution, indicating a favorable consideration for financing, must be provided. Interested parties are encouraged to submit their best offer as soon as possible.
Only parties that have submitted an NDA and the required information will be invited to view the property in the presence of the Agent or a representative of the Seller.
The Seller reserves the right to accept any offer but will instruct the Agent to notify all interested parties (who have signed an NDA and accessed the Due Diligence information) if an offer is under consideration.
The Agent will present all offers to the Seller and communicate acceptance to the successful bidder, while informing other parties of the outcome.
Offers will be evaluated based on the following criteria:
The price offered.
Demonstrated ability to perform, including proof of funds or a comfort letter.
The conditions attached to the offer and the timeline for concluding the transaction.
Letter of Intent “LOI” submission deadline: 12:00 on 11 April 2025
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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Disclaimer
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