English 
Arabic 
Chinese 
French 
German 
Hebrew 
Spanish 
Zoning and Title Deed Information
Title Deed Information
- Erf: 1073 New Redruth
- Tenure: Freehold
- Registered Owner: Government Employees Pension Fund
- Title Deed number: T19079/2011
- Local Authority: City of Johannesburg
- Extent: 6,756 sqm
Zoning Information
- Zoning: Special
- Floor Area Ratio: 1.0
- Coverage: 40%
- Height: 3 Storeys
- Building lines: 6 metres along street boundaries
Rentable Areas
| Use | Size (sqm) |
| Educational | 4,446 |
| Total | 4,446 |
| Parking | Bays |
| Covered | 123 |
| Open | 69 |
| Total | 192 |
Tenancy and Covenant
Tenancy
Tenant: Spark Schools
- Area: 4,446 sqm
- Lease Term: The lease will commence on 1 January 2024, expiring on 31 December 2033
- Rental: R250,000 per month (Year 1), R360,000 per month (Year 2) and R418,057 per month
(Year 3) - Escalation: 7% per annum from Year 4
The increase in contractual rent in Year 2 (44%) and Year 3 (16%) is to accommodate the fact that this is a new school. Enrolments usually pick up dramatically in Year’s 2 and 3 as scholars change grades and new students enroll.
Covenant
SPARK Schools is a network of private schools offering affordable, globally competitive education.
SPARK Ferndale, the first school in the SPARK Schools network, opened in 2013 in Johannesburg, Gauteng. Since then, the network has expanded to serve over 15,000 SPARK Scholars at 20 primary schools and 4 high schools across Gauteng and the Western Cape. They are committed to opening new schools across the country every year because they believe that South African parents and children deserve access to an excellent education.
Net Operating Income
FIRST YEAR NOI
| Period January 2024 – December 2024 | |
| Gross Income (ZAR) | R4,421,484 |
| Gross Expenses (ZAR) | R2,421,596 |
| Net Operating Income (ZAR) | R1,999,888 |
* A full breakdown of the first year and a 3-year projected NOI is available upon signature of an NDA, along with tenancy schedules, rent rolls and plans where available.
- Second year contractual rent increases by 44% to R4,320,000 per annum
- Third year contractual rent increases by 16% to R5,016,689 per annum
- From Year 4 onwards, the rental escalation increases by 7% per annum
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.
