Commissioner Place

Corner Victoria Road and Carrington Street | Golf View | Mahikeng | 2745

Price on Application

LETTER OF INTEREST DEADLINE 07 OCTOBER 2021

PRIVATE TENDER CLOSED

Investment highlights

  • A well-positioned office investment opportunity located in Mahikeng

  • Two multi-tenanted buildings, with a combined GLA of 2,300 sqm

  • Good street frontage  and easy access to Nelson Mandela Drive (N18)

  • Excellent location in Mahikeng CBD, a short distance from numerous amenities

  • First year’s forward Net Operating Income from 1 March 2022 to 28 February 2023 of approximately R930,000
property_investment_office_commissioner_place_654a3008__29_

Location

The property is located on the corner of Victoria Road and Carrington Street within the Mahikeng CBD.

The property enjoys excellent street frontage and access from these roads and is in close proximity to major routes such as Nelson Mandela Drive, Main Street and Shippard Street. The property is centrally located within the Mahikeng CBD, with amenities such as shopping centres, restaurants, a hospital, and clinics conveniently located nearby.

Description

The property is accessible from many major arterial routes, such as the N18 and Main Street. This central node comprises of many retail stores, shopping centres and various other amenities. The taxi rank and Mahikeng police station are within walking distance of the property.

The site is improved with two buildings, a single storey and a double storey office building. Both buildings on site are multi-tenanted, with various businesses occupying the offices which are finished to a B+ grade standard. Additional facilities in each building include kitchens, ablution facilities and storerooms. The site comprises of a total of 30 open parking bays.

The building is currently 46% occupied, which equates to 1,502 sqm of GLA. Two of the smaller tenants have recently vacated.

property_investment_office_commissioner_place_654a3008__30_
property_investment_office_commissioner_place_654a3008__36_

Zoning and Title Deed Information

Erf: 3200 Mahikeng

Tenure: Freehold

Registered Owner: Government Employees Pension Fund  

Title Deed Number: T502/2008

Local Authority: Mahikeng

Extent: 5,756 sqm

Zoning: Business

Height Restriction: 5 Storeys

Coverage: 80%

F.A.R: 2.0

Building Lines: Street boundary 0m, Rear boundary 2m, Side Boundary - Single Storey 3m, 2+ Storeys 0m

Parking: 3 per 100 sqm

 

Rentable Areas

Use  SQM
Offices 2,300.28
Total 2,300.28
Parking  
Open 30
Total 30

 

property_investment_office_commissioner_place_654a3008__38_

Tenancy and covenant

Tenant: Avbob Mutual Assurance Society

  • Area: 162.32 sqm
  • Lease Term: Commenced on 1 April 2018, expiring on 31 March 2023
  • Rent: Current rent of R20,979 per month
  • Escalation: 9% per annum

Tenant: Borman Duma Zitha Attorneys

  • Area: 144.66 sqm
  • Lease Term: Commenced on 1 November 2017, expired on 31 October 2020. Currently on month to month, renewal delayed due to Covid.
  • Rent: Current rent of R20,248 per month
  • Escalation: 8% per annum

Tenant: Government Pensions Administration Agency (GPAA)

  • Area: 635.70 sqm
  • Lease Term: Commenced on 1 May 2020, expiring on 30 April 2025
  • Rent: Current rent of R75,521 per month
  • Escalation: 8% per annum

Tenant: Pathcare

  • Area: 22.65 sqm
  • Lease Term: Commenced on 1 January 2016, expiring on 31 December 2018. Currently on month to month.
  • Rent: Current rent rate of R14,978 per month
  • Escalation: 9% per annum

Tenant: Age in Action

  • Area: 86.26 sqm
  • Lease Term: Commenced 1 October 2018, expiring on 30 September 2023
  • Rent: Current rent of R9,558 per month
  • Escalation: 8% per annum

The Government Pensions Administration Agency (GPAA) is a government component that reports to the Minister of Finance and administers funds and schemes on behalf of the Government Employees Pension Fund (GEPF), the largest pension fund in Africa. It thus administers the pension affairs of approximately 1,7 million government employees and pensioners, as well as the affairs of their spouses and dependants.

 

property_investment_office_commissioner_place_654a3008__46_
property_investment_office_commissioner_place_654a3008__22_

Net operating income

 FIRST YEAR NOI

Period March 2022 - February 2023  
Gross income (ZAR) 4,370,576
Gross Expenses (ZAR) 3,439,992
Net Operating Income (ZAR) 930,584

*The projected cashflow assumes full occupancy of the vacant area at a market related rental.

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.

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    
Lance Chalwin-Milton Lance.Chalwin-Milton@empactgroup.co.za +27 (0) 83 255 9275
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

 

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.