Colman Chambers, Johannesburg CBD

Corner Helen Joseph and Kruis Streets | Johannesburg CBD | Johannesburg | 2000

Price on Application

LETTER OF INTEREST DEADLINE 07 OCTOBER 2021

PRIVATE TENDER CLOSED

Investment highlights

  • Historical office building with retail space on the ground floor located in the heart of the bustling downtown Johannesburg CBD

  • Excellent residential conversion opportunity (subject to rezoning)

  • Heritage building with sound structure and architectural merit

  • Retail section fully let – allowing for rental income while the office section is refurbished or repurposed

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Location

The property is located at the corner of Helen Joseph and Kruis Streets in the Johannesburg CBD, just one block south of the Gauteng High Court and one hundred meters west of the popular Smal Street pedestrianized mall.

The surrounding properties comprise of mid to high rise buildings dominated with retail shops on the ground floor and offices or residential flats above. This part of the CBD enjoys high foot traffic which is beneficial for ground floor trading.

 

Description

The property is improved to a six-storey ‘C’ grade office building, an attached parking garage with 126 parking bays and a retail section in the ground floor which is currently vacant.

The building appears to have been built in the early 1900s with the corner section presenting a high character colonial office elevation with exterior plaster and concrete mouldings, office balconies and Doric columns set partway into the walls.

The top-level elevation is a series of gabled dormer windows set against the 3 main roofs clad in corrugated iron. The three sections are connected with the lift and service core which has a flat concrete roof.

There are no internal improvements in the office section.  The passenger lifts in the parking garage are not functioning. The ground floor retail was recently refurbished and is in good condition.

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Zoning and Title Deed Information

Erf : 638, 640 & 641 

Township/Farm : Johannesburg  

Tenure : Freehold

Registered Owner : Government Employees Pension Fund 

Title Deed Number : T 41530/2008 

Local Authority : City of Johannesburg

Extent : 1,237 sqm

Amended Scheme : 3385 A

Zoning : General

F. A. R. : 6.8%

Coverage : 100%

Height : 5 storeys

Parking : As per scheme

Rentable Areas

Building Design  

Description 

Size (Sqm) 

Offices 

2,395* 

Retail  

917 

Total  

3,312 

*The office component is not lettable  

 

Parking Type 

No. of Bays 

Covered  

126 

Total 

126* 

*The parking is not lettable as it requires refurbishment. 

 

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Tenancy and covenant

The property is currently vacant. There has been interest from a few major retailers for the retail portion of the building. However, nothing has been concluded as yet.  

Forecasted monthly rates and taxes expense

Forecasted monthly rates and taxes expense

Monthly (March 22 – Feb 23)

Rates and Taxes (ZAR)

R 15,254.15

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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