Motswedi House

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

Price on Application

LETTER OF INTEREST DEADLINE 07 OCTOBER 2021

PRIVATE TENDER CLOSED

Investment highlights

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

  • The Department of Home Affairs occupies the entire ground floor

  • Excellent exposure and accessibility from Dr James Moroka Drive

  • Strategically located in a well-known commercial node in Mahikeng, opposite Mega City Mall and 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 R4 million

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Location

The property is located along Dr James Moroka Drive in the Montshiwa area of Mahikeng. Dr James Moroka Drive is a major arterial route in the node that is accessible from Setlogelo Drive which in turn runs through Mmabatho passing the North West University Mahikeng campus. Albert Luthuli Drive is near the property and in turn links to the N18 national route, which runs from Mahikeng to Ramatlabama, bordering Botswana.

Description

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 ground floor of this double storey office building, is occupied by the Department of Home Affairs, taking up a GLA of 2,247sqm. The building is built to a B grade standard. The vacant offices, which are located on the first-floor account for 2,065 sqm of GLA, are finished with screed floors and have no internal partitioning. The property is generally in good condition, constructed with a steel IBR roof, the external walls have a facebrick finish.

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Erf: 741 Montshiwa 2

Tenure: Freehold

Registered Owner: Government Employees Pension Fund  

Title Deed Number: T992/2008

Local Authority: Mahikeng

Extent: 10,964 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 Use Size (Sqm) / Bays
Offices 4,312
Total 4,312
Parking  
Open 30
Covered 22
Total 52

 

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Tenancy and covenant

Tenant: Department of Public Works - Home Affairs

  • Area: 2,247 sqm
  • Lease term: Month-to-month lease extension for 12 months, commenced on 1 March 2020 to 28 February 2021. A renewal is in the process of being finalised.
  • Rent: Current rent of R442,864 per month
  • Escalation: 8% per annum

The Department of Home Affairs is an important governmental agency. It controls, regulates and facilitates immigration and the movement of persons through ports of entry of South Africa. It also provides civic and immigration services at foreign missions; and determines the status of asylum seekers and refugees in accordance with international obligations. It has one office in Mahikeng servicing the larger area and it is not uncommon to see queues in front of the building during office hours.

Net operating income

 FIRST YEAR NOI

Period March 2022 - February 2023  
Gross income (ZAR) 8,080,849
Gross Expenses (ZAR) 4,063,655
Net Operating Income (ZAR) 4,017,194

*The cashflow summary assumes the vacant offices will be leased from September 2022 at a market related rental.

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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 Group

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

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.