32 Matuka Close | Halfway Gardens | Midrand | 1686
LETTER OF INTEREST DEADLINE 07 OCTOBER 2021
Opportunity to acquire a school property, with a GLA 2,400 sqm
Fully let to an established school, with the lease expiring in 2026
Well situated in Halfway Gardens, in close proximity to a recently completed high school under the same brand, Nova Pioneer
Convenient access and proximity to the N1 highway
First year’s forward Net Operating income of approximately R3 million
The property is located at 32 Matuka Close, in Halfway Gardens, Midrand. The surrounding suburbs include Midridge Park, Halfway Gardens Estate and Carlswald. The N1 national highway runs along the East side of the property, it is a major route that links Johannesburg and Pretoria.
The site is situated in Matuka Close, a cul-de-sac which is accessed via Invicta Road. Invicta Road connects to 6th Road which joins the busy New Road. The area offers high density residential blocks, as well as, some commercial properties.
The node itself is established with major road networks, various types of residential properties and commercial amenities in the immediate vicinity. Carlswald Lifestyle Shopping Centre, San Ridge Square and the recently revamped Engen Big Bird 1-Stop are in close proximity to the property.
The property comprises of a standalone site which houses Nova Pioneer Primary School, with a total GLA of 2,400 sqm. The site is designed with three buildings that surround a central courtyard and playground. The amenities include several classrooms, a staff room, an open area used as the school hall and ablutions throughout the buildings.
The buildings have been finished with brick, plastered and painted facebrick. The floor finishes include tiles and carpets.
Zoning and Title Deed Information
|Use||Use Size (Sqm) / Bays|
|School (previously offices)||2,400|
As per the lease negotiation the school does not pay for parking bays.
Tenancy and covenant
Tenant: Pioneer Academies
- Lease term: 10-year lease commencing on 1 April 2016, expiring on 31 March 2026
- Rent: current rent rate of R106/sqm
- Escalation: 7% per annum
Nova Pioneer Education Group is a Pan-African independent school network, that builds and operates high standard, affordable education, offering education to students in grades from preschool through to secondary school. Nova Pioneer is currently operational in both South Africa and Kenya.
The school offers a modern approach to education that imparts students with relevant 21st Century skills and problem-solving skills. The school uses the Cambridge Curriculum which promotes creative ways of facilitating learning. It is also structured to offer parents, students and teachers a distinctive and blended learning opportunity.
Nova Pioneer Midrand Primary offers private school education that seeks to provide students with creative problem-solving skills.
Net operating income
FIRST YEAR NOI
|Period March 2022 - February 2023|
|Gross income (ZAR)||4,202,487|
|Gross Expenses (ZAR)||1,235,283|
|Net Operating Income (ZAR)||2,967,203|
A full breakdown of the projected NOI is available upon signature of an NDA, along with tenancy schedules, rent rolls and plans where available.
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.
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 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:
- Ability to perform / track record
- Conditionality (i.e. speed of performance)
- Timing of electronic submission of offer.
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.