Central House

Central Street | Mabopane Unit U | Mabopane | Tshwane | 0190

Price on Application

LETTER OF INTEREST DEADLINE 07 OCTOBER 2021

PRIVATE TENDER CLOSED

Investment highlights

  • Excellent M17 highway exposure and access

  • Several prominent amenities surrounding the property including the Central City Shopping Centre and the Mabopane Railway Station

  • Large value-add potential to re-let the 46% vacant portion of the building

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Location

The rectangular shaped property is situated on the corner of the M17 and Central House Road in Mabopane, in close proximity to the Central City Shopping Centre, between the major townships of Mabopane and Soshanguve, located to the north-west of Tshwane.

The property is also situated in close proximity to the Mabopane Railway Station. Mabopane is a low-LSM residential suburb.

The property benefits from a prominent position and enjoys excellent M17 highway exposure. 

Description

The property comprises a 3-storey office building with reasonably good internal finishes. The external works consist of covered and open parking bays and limited landscaping.

The construction is of reinforced concrete framed with elevations of part faced brickwork and part curtain walling with aluminum framed and glazed windows under a flat roof.

Internally the offices are of good commercial standard comprising carpeted / tiled / laminated floors, dry wall partitioning and suspended ceilings with recessed florescent light fittings and air conditioning.

Major maintenance and upgrades are required in order to convert the vacant areas (c.46% of GLA) into rentable space. Upgrades include ceilings, lights and electrical wiring which must be replaced, as well as carpets and floor tiles as some of the vacant office areas comprise of concrete floors only.

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Zoning and Title Deed Information

Erf: 426

Township/Farm: Mabopane-E

Tenure: Freehold

Registered Owner: Government Employees Pension Fund

Title Deed Number: T13662/2008

Local Authority: City of Tshwane

Extent: 10,601 sqm

Scheme: Tshwane Town Planning Scheme 2008

Amended Scheme: Revised 2014

Zoning: Business 3

Primary Rights: Bank, Building Society, Dwelling-Unit, Office, Medical Consulting Room, Place of Refreshment, retail Industry, Shop & Veterinary Clinic

F.A.R: 1.8

Coverage: 60%

Height: 7 storeys

Parking: As per scheme

Rentable Areas

Use Use Size (Sqm)
Offices 4,665
Total 4,665
Parking Bays
Shadenet 72
Total 72
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Tenancy and covenant

The property is approximately 46% vacant. Most of the leases are month-to-month.

Major Tenant(s):

Department of Public Works/Home Affairs

  • Area: 654 sqm
  • Lease term: Month to month (expired 31 July 2017)
  • Gross /Net Rent per sqm per month: R76.78
  • Escalation: 7% per annum

Central Statistics

  • Area: 581 sqm
  • Lease term: Month to month (expired 31 July 2017)
  • Gross /Net Rent per sqm per month: R60.09
  • Escalation: 7% per annum

Department of Home Affairs

The Department of Home Affairs offers a multitude of services to the citizens of South Africa, as well as foreigners who wish to visit, work or stay in South Africa. The Department’s core functions are:

 Civic Services

    • Maintaining the National Population Register (NPR)
    • Managing the birth, marriage and death records
    • Determining and granting citizenship
    • Issuing travel documents and passports
    • Issuing identity documents (ID)

 Immigration

    • Administering admissions into the country
    • Determining the residency status of foreigners and issuing permits thereof
    • Custodianship of refugee affairs
    • Inspectorate
    • Policy directives

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Net operating income

 FIRST YEAR NOI

Period March 2022 - February 2023  
Gross income (ZAR) 3,274,625
Gross Expenses (ZAR) 3,184,474
Net Operating Income (ZAR) 90,151

Income Assumptions:

  • No rental assumptions have been applied to the vacant portion as the property has remained vacant for an extended period with no interest.
  • A full breakdown of the projected NOI is available upon signature of an NDA, along with tenancy schedules, rent rolls and plans where available.

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    
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    
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.