Entire Sectional Title Complex for Sale - Cape Town

The Block | Glenhaven | Prosperity Close | Bellville | Cape Town | 7530

Private Tender

PRIVATE TENDER CLOSED
Click To Purchase

Investment highlights

  • Sectional Title Register has been opened allowing for the sale of the individual units and Substantial Capital Gain

  • Sales for the 1-bedroom apartments at The Glen, a development across the road from the Block, ranges between R640 000- R649 000 and sales for the 2-bedroom apartments ranges between R875 000- R895 000. If these values were to be extrapolated to the unit mix of The Block, it leaves potential for an open market sell out value of ca. R210 million.

  • 253 units comprising 50 one-bedroom, one-bathroom units and 203 two-bedroom, one-bathroom units.

  • Extremely low vacancies reflecting strong rental demand in the market.

  • Easy access and nearby public transport, along with nearby educational facilities such as the Bellville campus of the University of the Western Cape and the Cape Peninsula University of Technology, drives demand for the units. 

  • Projected Net Operating income for the period 1 January 2022 to 31 December  2022 of approximately R16,8 million including a 3% Vacancy factor.

     

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Location

The complex is known as The Block and lies on Prosperity Close, Glenhaven. The complex is located on the corner of Peter Barlow Drive and Bester Road in the greater Bellville area. The residential suburb of Bellville is just 25 kilometres outside Cape Town CBD, with majestic views over the winelands and the Stellenbosch Mountains. It is within close proximity to the University of the Western Cape, Cape Peninsula University of Technology, Tygerberg Hospital and the Tygervalley Shopping Centre.

The property has easy access onto Modderdam Road and the R300. The site lies close to Cape Town International Airport.  There is also easy access to public transport and it is close to the Sarepta Train Station.The immediate surrounding properties comprise new residential developments, single residential erven and industrial sites.

Description

The property is known as “The Block”. The scheme is constructed over 4 blocks with all blocks consisting of ground plus three upper floors. There is a total of 253 units, ample open parking bays (318 in total), a guard house and management office at the entrance, and a tuckshop and laundry facility on the site. The property also has a borehole which is used for gardening purposes.

The individual units comprise 50 One bedroom, One bathroom units measuring 33m² and 203 Two bedroom, One bathroom units measuring 46m².

All the units offer a kitchen with granite tops, built in cupboards, under counter oven, hob and sink and a washing machine connection. The lounge is open plan and has a sliding door (to gardens for ground floor and to railing on upper levels). The bathrooms offer toilet, basin, bath (with shower over the bath in the 2 bed units or showers only in the 1 bed units), and the bedrooms have built-in cupboards. There is a DSTV connection and the units are fibre-ready.

Each unit has an open parking bay and there are ample visitors' bays. There is 24hr security with strict access control for entrance and exit.

The building offers a laundry facility for the use of tenants, a tuckshop for convenience, and there are communal gardens, braai areas and a children’s play area.

Both water and electricity are prepaid although usage has been low and economical given the design of the units and the heat pump system used.

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Zoning and Title Deed Information

Legal Description: SS The Block 51/2019 situated on Erf 40796 Belville

Title Deed Number: ST2578/2019 and ST11856/2019

Registered Owner: I H S Fund II SA Rental Trust 2

Local Authority: City of Cape Town             

Extent of land: 2,0211 hectares

Extent of the Scheme: 10 988sqm

Use Zone:  General Residential 2

Unit Detail

FLOOR DESCRIPTION SIZE (sqm) No. of UNITS
Ground 2 Bed, 1 Bath 46 58
First 2 Bed, 1 Bath 46 57
Second  2 Bed, 1 Bath 46 57
Third 2 Bed, 1 Bath 46 28
First 2 Bed, 1 Bath (Wall Facing) 46 1
Second  2 Bed, 1 Bath (Wall Facing) 46 1
Third 2 Bed, 1 Bath (Wall Facing) 46 1
Ground 1 Bed, 1 Bath 33 14
First 1 Bed, 1 Bath 33 14
Second  1 Bed, 1 Bath 33 14
Third 1 Bed, 1 Bath 33 8
TOTAL   10988 253
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Net operating income

Tenancy

The development is in high demand with occupation levels generally near full capacity. New tenants are charged a deposit. The underlying lease agreements are set up on a month-to-month basis which allows the landlord to terminate leases where needed by issuing a 1-month notice. Tenants do however stay in the development long term.

BUDGETED FIRST YEAR NOI

Period 1 January to 31 December 2022  
Gross income (ZAR) R20,694,126
Gross Expenses (ZAR) R3,859,926
Net Operating Income (ZAR) R16,834,200
  • The above figures include a 3% Vacancy Factor in the Gross Income

Sales process

This property is being sold by way of a Private Tender process.

Interested parties will be required to register on SAPX and sign a Non-Disclosure Agreement, to be countersigned by the Seller, before they can register on clicktopurchase® (CTP).

FICA or KYC verification will be required in order to register on (CTP). During the verification process, the Bidder will receive a Power of Attorney to complete and sign.  This allows the agents to sign and execute the sale agreement once a binding (CTP) has been submitted.

All Bidders are then given access to a comprehensive Due Diligence data room to conduct a more extensive due diligence exercise.  Submission of binding offers will be done via the (CTP) platform.

The agents will present all offers to the Sellers (who also have access to CTP and therefore can view all offers submitted via this channel). The Seller will then select the winning bid within 10 business days. The agent will communicate same to the winning bidder and inform all other bidders that have not been successful.

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