The Mill House

1 Canterbury Street |  The Mill House | Cape Town CBD | 7925

Private Treaty

Click To Purchase

Investment highlights

  • Cape Town CBD Investment Property

  • Head Office to a leading international retailer

  • Single, long-standing tenant with a current lease expiring in 2026

  • Historical building with a GLA of 3,225 sqm

  • Opposite the Castle of Good Hope with excellent visibility from Darling Street

  • Projected Net Operating Income for the period 1 August 2022 to 31 July 2023 of approximately R5,120,000

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Location

The property is located on the corner of Canterbury and Darling Streets in Zonnebloem, Cape Town. The area is characterised by industrial, retail and leisure amenities, with the CBD being only minutes away.

The building is well located and highly visible, facing Darling Street. Christiaan Barnard Street (M60) and Nelson Mandela Blvd are major routes in the area, leading towards the CTICC and Foreshore.

Public transport is easily accessible as the Cape Town Central Station is less than 1km away. Amenities in the area include District Six Museum, Greenmarket Square and Gardens Shopping Centre.

Description

The site is improved with a multi-level building, plastered and painted externally, ranging from two to five storeys and equipped with a lift which was recently refurbished.

The main entrance is accessible via Canterbury Street, opening onto the reception area. There is a courtyard with undercover and open parking. The ground floor comprises offices and ablution facilities as well as a kitchen area. The first and second floors are configured with open plan office areas, kitchenettes and ablution facilities, while floors three, four and five comprise of offices only. The offices and boardrooms vary in size and configuration and finishes are of a high standard. The building is airconditioned and there is a solar water heating system and heat pump. The tenant has installed their own generator. 

The interior of the building is a combination of old mixed with new – the original staircase and exposed ceiling trusses are prominent features, as are the wooden partitioned offices. The offices have been developed to a superior level with tiled, carpeted and laminated wooden veneer floor coverings, various kitchenettes and pause areas as well as a fitted bar/function area. The building has a multitude of windows allowing for abundant natural lighting throughout and a panoramic view of Cape Town.

The building is fully occupied by a single tenant, Moresport (Pty) Ltd. The Group is the leading specialist sports and outdoor goods retailer, trading countrywide through the Sportsmans Warehouse and Outdoor Warehouse brands. The tenant has been in occupation in excess of 15 years and has recently refurbished the premises partly via a TI allowance and a substantial investment by themselves.

The lease contains a redevelopment clause which can only be exercised 36 months into the lease and requires the landlord to give 12 months’ notice to the tenant.

As per the current zoning, bulk of 8,976 sqm can be developed on the site. The zoning allows for mixed use development including residential units.

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Zoning and Title Deed Information

Erf: 170672 Zonnebloem

Title Deed Number: T28416/2015

Registered Owner: Aquarella Investments 468 Share Block (Pty) Ltd

Local Authority: City of Cape Town                         

Extent: 1,496 sqm

Zoning: Mixed Use 3

Subzone: MU3 – Heritage protection overlay zone

Road widening/new road schemes: Abuts a proclaimed main road (Darling Street & Canterbury Street)

Primary Uses: Business premises, industry, dwelling house, second dwelling, boarding house, flats, place of instruction, place of worship, institution, hospital, place of assembly, place of entertainment, hotel, conference facility, authority use, utility service, rooftop base telecommunication station, transport use, multiple parking garage, private road and open space

Height Restriction: 38m

Coverage: 100%

Floor Factor: 6.0

Building Lines: 0.0m up to 25.0m height; ½ (H-25m) above 25.0m

Street Centreline Setback: 8.0m

Other Provisions: Canopy or balcony projection, Parking and access, Loading, Screening, Service Station and Motor Repair garage, Informal trading

Parking: 0.75 bays per 100 sqm of office GLA

 

Rentable Areas

Description Size (Sqm)
Office 3,225
Total 3,225
Parking  Bays
Basement 22
Covered 2
Total 24

 

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Tenancy

Tenant: Moresport (Pty) Ltd

  • Area: 3,225 sqm
  • Lease term: The original lease commenced on 1 February 2020 for a 5 year period expiring on 31 January 2025. The lease was extended for a further one year and now expires on 31 January 2026. There is an option to renew for a further 5 years
  • Rent: Current rent of R386,553 for premises and R26,348 for parking bays on the premises
  • Escalation: 7.5% per annum

  

Net Operating Income

PROJECTED FIRST YEAR NOI

Period August 2022 - July 2023  
Gross Income (ZAR) 5,759,956 
Gross Expenses (ZAR) 639,714 
Net Operating Income (ZAR) 5,120,242 

 

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Sales Process

This property is being sold by way of a Private Treaty process under a Sole Mandate with SAPX.

Interested parties will have access to the Property Brochure and NDA on registration on the SAPX website

Should you require additional information about the property, we will require you to sign the Non-Disclosure Agreement (NDA) which is downloadable from our website, and provide information regarding the entity and individuals represented by that entity, that is expressing an interest in the property. This can be in the form of a link to your company website, your company profile or a brief resume for both the company and key individuals involved in the transaction.

On receipt of the above and counter signature of the NDA by both the Seller and the Agent, you will have access to the following information per email:

  • NOI Schedule, if applicable
  • Zoning certificate
  • Rates account
  • Layout diagram and plans, if available

Only interested parties that have submitted a NDA and provided the aforementioned information, will be invited to view the property in the company of the Agent or a representative of the Seller. 

Should you wish to access the full Due Diligence information in the ClicktoPurchase (CTP) data room with a view to submitting an offer on the property, you will be required to register on CTP and provide proof of funds or comfort from a financial institution that they would favourably consider an application from yourself for funding for the property in question. Please contact either Lance or PJ to discuss this requirement as it may not be necessary if you are known to our company or the Sellers.  

FICA and KYC verification will be required in order to register on (CTP).

On successful review of your registration you will be granted access to the CTP data room. Besides all DD documentation, you will have access to the sale agreement which will not be conditional upon Due Diligence or Finance Approval, other than in exceptional circumstances.

The above process is followed primarily to ensure that only willing and able purchasers are involved in the final stage of bidding for the property.

Interested party/ies are required to submit a binding offer, the Seller reserves the right to accept any offer but undertakes to instruct the Agent to inform all interested parties that there is an offer under consideration at least 5 business days prior to acceptance of that offer.

Please note that parties that wish to submit an offer will be required to sign a Power of Attorney with the Sale Agreement (all downloadable from CTP) to allow the agent to sign (in wet ink) and execute the sale agreement should it be accepted by the Seller.

The agent will present all offers to the Sellers (who also have access to CTP and therefore can view all offers submitted via this platform). The Seller will select the successful offer within 10 business days.

The agent will communicate same to the winning party and inform all other parties that have not been successful.

Offers will be assessed on, amongst others, the following criteria:

  • The price offered
  • Ability to perform and provision of comfort letter or proof of funds for the transaction in question
  • Conditionality of the offer and timeline to conclude the deal

Should you have any queries regarding the process please contact either Lara or Kedibone

SAPX is uniquely positioned to offer market-leading online sales and technology to deliver the highest quality property sales service for commercial property investments. We utilise clicktopurchase® (CTP) and the clicktopurchase® (CTP) Blockchain to provide an immutable and totally transparent audit trail in relation to the process of buying and selling property.  CTP uses hash and encryption technology as part of the creation of the transactional audit trail; this is then recorded in the CTP Blockchain.  Since all events are held in Blockchain, absolute proof of actions are held in a tamper-proof manner. The level of corporate governance and trust provided, for both buyers and sellers, is unavailable elsewhere.

Lara Joffe 076 800 0778 lara@thepropertypact.com

Kedibone Bolofo 083 988 1740 kedi@thepropertypact.com

Contact Us

SAPX    
Lance Chalwin-Milton lance@thepropertypact.com  +27 (0) 83 255 9275
PJ Muller pj@thepropertypact.com +27 (0) 82 888 0828

 

 

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  1. the particulars are set out as a general outline only for the guidance of intending purchasers, and do not constitute, nor constitute part of, an offer or contract;
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