Borekelong House

742 Dr James Moroka Drive | Montshiwa Unit 2 | Mahikeng | 2790

Price on Application



Investment highlights

  • A well-positioned double-storey office investment situated in Mahikeng

  • Tenanted by Government Employees Medical Scheme and Legal Aid South Africa

  • Opportunity to secure a tenant for the entire first floor, which measures 1,630 sqm

  • Excellent exposure and accessibility from Dr James Moroka Drive and situated opposite Mega City Mall 

  • Strategically located in a well-known commercial node in Mahikeng, a short distance from the North West Provincial Legislature and numerous government offices

  • First year’s forward Net Operating Income for the period 1 March 2022 to 28 February 2023 of approximately R1.2 million



The property is located along Dr James Moroka Drive within the township of Montshiwa. This is a major route in the node accessible from Setlogelo Drive which runs through Mmabatho passing the North West University Mahikeng campus. Albert Luthuli Drive is in close proximity to the property heading towards the N18 national route, which runs from Mahikeng to Ramatlabama, bordering Botswana.


The property is situated in a commercial node within the township of Montshiwa Unit 2 in Mahikeng, with street front exposure from Dr James Moroka Drive. The property is strategically located a short distance away from numerous government buildings namely; the North West Provincial Legislature, the North West High Court and the Department of Public Work, Road and Transport. Mega City Mall Mahikeng is located directly across the road from the property.

The site is improved with a double storey office building, a portion of the ground floor is shared by two tenants namely; Government Employees Medical Scheme (occupying the North Wing) and Legal Aid South Africa, sharing a GLA of 1,151 sqm. These tenanted offices have been built to a B grade standard, with modern finishes. The vacant offices, which are located on the first-floor account for 1,630 sqm of GLA, are finished with screed floors and no internal partitioning.

The property is in good condition, constructed with a steel IBR roof, the external walls have a facebrick finish.


Zoning and Title Deed Information

Erf: 742 Montshiwa 2

Tenure: Freehold

Registered Owner: Government Employees Pension Fund  

Title Deed Number: T993/2008

Local Authority: Mahikeng

Extent: 5,839 sqm

Zoning: Business

Height Restriction: 5 Storeys

Coverage: 80%

F.A.R: 2.0

Building Lines: 2m rear boundary and 3m side boundary

Parking: 3 per 100 sqm

Rentable Areas

Use  SQM
Offices 2,781
Total 2,781
Open 56
Total 56



Tenancy and covenant

Tenant: Government Employees Medical Scheme

  • Area: 681 sqm
  • Lease Term: Commenced on 1 December 2020, expiring on 30 November 2022
  • Rent: Current rent rate of R70,143 per month
  • Escalation: 6% per annum

 Tenant: Legal Aid South Africa

  • Area: 470 sqm
  • Lease Term: Commenced on 1 September 2020, expiring on 31 August 2025
  • Rent: Current rent of R52,670 per month
  • Escalation: 7% per annum

Government Employees Medical Scheme (GEMS)

GEMS was registered on 1 January 2005 to specifically meet the healthcare needs of Government Employees in order to provide all members with equitable access to affordable and comprehensive healthcare, while promoting member wellbeing. The beginning of GEMS was a historic moment when in 2002, Cabinet approved a framework policy on a restricted (closed) medical scheme for further development by an interdepartmental working group (departments of Public Service and Administration, National Treasury, Health, Education, Correctional Services and SAPS). The approved framework policy focused on the principles of equity, efficiency and differentiation. Equity where employees have equal access to the most extensive set of equal basic benefits under equitable remuneration structures, subject to affordability. Efficiency regarding the costs and delivery of benefits. Differentiation, where employees choosing more extensive cover have equal access to higher benefits subject to their needs. The implementation of GEMS was a positive step that positioned government as an employer of choice that truly cares for the health and wellbeing of its employees.

Legal Aid South Africa

Legal Aid South Africa was established by the Legal Aid Act of 1969 and is an independent body. During the first 20 years of its existence, Legal Aid South Africa provided legal aid by means of Judicare. During the 1990s, starting with the Office of the Public Defender, Legal Aid South Africa became involved in a number of pilot projects in which legal aid was provided by salaried legal practitioners employed by either Legal Aid South Africa or one of its cooperation partners.

The aim of Legal Aid SA is to:

  • Give legal aid or to make legal aid available to indigent persons within its financial means.
  • Provide legal representation at State expense, as set out in the Constitution of the Republic of South Africa, 1996 (the Constitution) and relevant legislation giving content to the right to legal representation at State expense.
  • Provide education and information concerning legal rights and obligations.

Legal Aid South Africa’s role is to provide legal aid to those who cannot afford their own legal representation. This includes poor people and vulnerable groups such as women, children and the rural poor.

It does this in an independent and unbiased manner with the intention of enhancing justice and public confidence in the law and administration of justice.


Net operating income


Period March 2022 - February 23  
Gross income (ZAR) 3,778,575
Gross Expenses (ZAR) 2,576,031
Net Operating Income (ZAR) 1,202,544

*The cashflow summary assumes a 3-month vacancy, thereafter, fully occupied at a market rental of R110 per square metre.


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

Lance Chalwin-Milton +27 (0) 83 255 9275
Kedibone Bolofo +27 (0) 83 988 1740


Pepler Sandri +27 (0) 82 445 5496
Thabiso Malibeng +27 (0) 79 183 1153



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.