Birchwood Court

43 Montrose Street | Vorna Valley | Midrand | 1686

Price on Application

LETTER OF INTEREST DEADLINE 07 OCTOBER 2021

PRIVATE TENDER CLOSED

Investment highlights

  • Two symmetrical ‘U’ shaped double storey office buildings located in Waterfall Park, measuring 3,501 sqm

  • The property is let to 5 tenants with Regus Management Group being the major tenant occupying 37.5% (1,314 sqm) of the total area. The building is currently 46% (1, 605 sqm)

  • The property is accessible from Montrose Street and enjoys exposure to Waterfall Park off Bekker Road

  • Birchwood Court is within 5kms of the Midrand Gautrain Station making Johannesburg’s major nodes of Rosebank, Sandton and OR Tambo Airport very easily accessible

  • Projected Net Operating income for the period 1 March 2022 to 28 February 2023 of approximately R1.95 million

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Location

The property is located at the north end of the Waterfall Park office precinct on the eastern fringe of Vorna Valley. Access is off Montrose Street which feeds into Waterfall Park off Bekker Road

Le Roux Avenue in the north connects with the Old Pretoria Main Road; Bekker Road connects in the south via Pretorius Road onto Allandale Road and the new Mall of Africa precinct.

Description

The property is developed with two symmetrical, ‘U’ shaped office buildings, each double storey with semi-basement parking, finished to ‘B+’ grade standards and designed in a ‘monastic’ style    with clay hue face-brick elevations, anodised aluminium windows, balconies and hipped tile roofs. Between the buildings at the north end of the site is a third, smaller (square) freestanding office block in similar design over 2 levels

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Erf: 1328 Vorna Valley Ext 21

Title Deed Number: T35116/2011

Registered Owner: Government Employees Pension Fund

Local Authority:                                            

Extent: 8 200m²

Zoning: Special

Height Restriction: 3 storeys

Coverage: 40%

F.A.R: 0.4

Building Lines: 5 meters along street boundaries

Parking: As per scheme clauses

Rentable Areas

Rentable Areas

 

The property has the following Gross Internal floor areas:

Description

Size (Sqm)

Offices

Storeroom

 3 427sqm

74

Total                            

3 501sqm

 

Parking

No. of Bays

Open

63

Covered

70

Basement

 

Total                            

133

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Tenancy and covenant

Tenant: BC Gauteng

  • Area: 1 314sqm
  • Lease term: expires 31/05/2022
  • Rent: R147 789.91per month
  • Escalation: 8% per annum

 

BC Gauteng (trading as Regus)

Regus is part of a collective of global and regional workspace brands that form the IWG network. These include Spaces, HQ, Signature by Regus and No18. Through this diverse portfolio, they offer customers an unparalleled choice of design, fitout, location and building, enabling them to choose the right workspace to meet their unique needs.

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Net operating income

First Year Cashflow Summary

 

Period 1 March 2022 to 28 February 2023

Gross Income (ZAR)

R4 509 865

Gross Expenses (ZAR)

R2 558 209

Net Operating Income (ZAR)

R1 951 656

*Based on 3 months vacancy and the vacant space being let at an approx. 50% discount to market, which is assumed to be R100 per sqm in the current market

A full breakdown of the projected NOI is available upon signature of the NDA

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

Stage 1:

In this stage of the process interested parties are requested to submit a non-binding Letter of Interest / Intent (“LOI”) to the JLL Empact JV by no later than -

12h00 on Thursday 7 October 2021. Bids are to be submitted electronically to the email addresses of the agents provided herein in the template LOI format provided in the Downloads tab below. Please note that late electronic submissions will not be considered by the PIC.

To submit these LOIs the following Stage 1 property information is available under the Downloads tab:

A downloadable Information Memorandum (which is a summary of the information contained in this property information page);

  • A comprehensive Stage 1 Process Letter (setting out the two-stage Private Tender Process in greater detail);  
  • The Seller’s template / standard Letter of Intent / Interest (“LOI”);
  • The Sellers’ standard Non-Disclosure Agreement (“NDA”). The NDA must be completed if the purchasers wants to view a detailed Tenancy Schedule (if applicable and available). 

Bidders will also be allowed to view the Property, provided 48 hours’ notice is given to the JLL Empact JV. 

To download any of these documents you’ll be required to register to become a subscriber to the South African Property Exchange (SAPX).

Stage 2:

Stage 1 LOIs / bids will be assessed by the Seller and thereafter a select number of bidders will be given permission to participate in Stage 2 of the process. In Stage 2, select bidders are given access to a comprehensive Stage 2 due diligence data room to conduct a more extensive due diligence exercise. FICA or KYC verification will be required and submission of binding offers will be done via the ClicktoPurchase functionality on SAPX or via the submission of PDF signed copy of an approved sale and purchase agreement directly to the agents. The agents will provide selected bidders with instructions that outlines how offers are to be submitted via ClicktoPurchase® or direct submission by providing select bidders with a detailed Stage 2 Process Letter.

In Stage 2 bidders have up to 6 weeks to conduct their DD and submit final binding offers.

Bids will be accessed on four main criteria:

  • Price
  • Ability to perform / track record
  • Conditionality (i.e. speed of performance)
  • Timing of electronic submission of offer.

Empact Group

Empact    
PJ Muller PJ.Muller@empactgroup.co.za +27 (0) 82 888 0828
Kedibone Bolofo Kedibone.Bolofo@empactgroup.co.za +27 (0) 83 988 1740

 

 

JLL

JLL    
Pepler Sandri pepler.sandri@eu.jll.com +27 (0) 82 445 5496
Thabiso Malibeng thabiso.malibeng@eu.jll.com +27 (0) 79 183 1153

 

Disclaimer

No information, statement, description, quantity or measurement contained in any sales particulars or given orally or contained in any webpage, brochure, catalogue, email, letter, report, docket or hand out issued by or on behalf of the JLL Empact JV or the vendor in respect of the property shall constitute a representation or a condition or a warranty on behalf of the JLL Empact JV or the vendor. Any information, statement, description, quantity or measurement so given or contained in any such sales particulars, webpage, brochure, catalogue, email, letter, report or hand out issued by or on behalf of the JLL Empact JV or the vendor are for illustration purposes only and are not to be taken as matters of fact. Any mistake, omission, inaccuracy or mis-description given orally or contained in any sales particulars, webpage, brochure, catalogue, email, letter, report or hand out issued by or on behalf of the JLL Empact JV or the vendor shall not give rise to any right of action, claim, entitlement or compensation against JLL Empact JV or the vendor. All bidders must satisfy themselves by carrying out their own independent due diligence, inspections or otherwise as to the correctness of any and all of the information, statements, descriptions, quantity or measurements contained in any such sales particulars, webpage, brochure, catalogue, email, letter, report or hand out issued by or on behalf of the JLL Empact JV or the vendor.