The Rosebank College Building Durban CBD

221 Dr Pixley Kaseme Street | Durban CBD | Durban  | 4000

Price on Application

LETTER OF INTEREST DEADLINE 07 OCTOBER 2021

PRIVATE TENDER CLOSED

Investment highlights

  • An opportunity to acquire a mixed-use property in the Durban CBD
  •  
  • The anchor tenant, Rosebank College, occupies three floors with a lease expiring in June 2022
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  • Excellent exposure from Dr Pixley Kaseme Street and Samora Machel Street
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  • Property is in close proximity to Durban City Hall and the Department of Education and Culture
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  • First year’s forward Net Operating income of approximately R2.8 million
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Location

The property is located on the corner of Dr Pixley Kaseme Street and Samora Machel Street in the centre of the Durban CBD. It is opposite Liberty Towers and in close proximity to City Hall, the Department of Public Works and The South African Reserve Bank.

Description

The property is located within the Durban CBD, with street front exposure from Dr Pixley Kaseme Street and Samora Machel Street. It is in close proximity to government buildings, commercial buildings and City Hall. The stand has been improved with a tower building rising over 8 floors with the retail shops on street level.

The property comprises of 8 street front shops totalling 847 sqm. The retail tenants include Capitec Bank, Old Mutual Finance, Taxvest, Bertrand Collection and Model Dairy. Currently one shop is vacant with a GLA of 249.18 sqm. The anchor tenant, Rosebank College , occupies the ground floor foyer and floors 3, 4 and 5. The building is constructed with a concrete frame with brick infill walls and plastered internally. The design also incorporates a full height atrium, with a domed roof light, positioned behind the Rosebank College foyer. The occupied offices are built to a B grade standard. The vacant offices are situated on the 6th and 7th floor and account for 2,354 sqm of the GLA.

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Zoning and Title Deed Information

Erf: 11094 Durban

Tenure: Freehold

Registered Owner: Government Employees Pension Fund

Title Deed number: T006311/2009

Local Authority: Ethekwini Municipality

Extent: 2,176 sqm

Zoning: General Business

Floor Area Ratio: 8.0 of which 4.0 may be for residential

Coverage: 75%

Height: 59 degrees from opposite side of the street (Max. Width 30m) or 110 meters with a 5-meter set back at 15 meters

Parking: If building exceeds 5,000 sqm, 1 bay/100 sqm, max 1 bay/100 sqm

Building lines: 4.5 meters from the centre line of the road

Rentable Areas

Use  SQM
Shops 847
Rosebank College 3,942
Offices 2,993
Total 7,782

 

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Tenancy and covenant

Bertrand Collection (Etoile De Lexe): Shop 4

  • Area: 59.23sqm
  • Lease term:3-year lease period, 1 April 2019 to 31 March 2022
  • Rent: R227/sqm/month gross
  • Escalation : 8% p/a

Capitec Bank: Shop 2

  • Area: 172.44 sqm
  • Lease term: 5-year lease period, 1 January 2018 to 31 December 2022
  • Rent: R305/sqm/month gross
  • Escalation: 7% p/a

Old Mutual: Shop 1

  • Area: 129 sqm
  • Lease term: 3-year lease period, 1 September 2018 to 31 August 2021
  • Rent: R212/sqm/month gross
  • Escalation: 7% per annum

The Independent Institute of Education (t/a Property Division) – ground floor, 3,4,5

  • Area: 3,941.93sqm
  • Lease term: 5-year lease period, commencing on 1 July 2017 to 30 June 2022 (5-year renewal option period)
  • Rent: R67 per sqm/month (gross)
  • Escalation:: 7% per annum

Taxvest – shop 3

  • Area: 61.29sqm
  • Lease term: 2-year lease period, 1 March 2021 to 28 February 2023
  • Rent: R240/sqm/month gross
  • Escalation: 8% per annum

Umanita – office 800

  • Area: 300sqm
  • Lease term: 3-year lease, 1 March 2021 to 28 February 2024
  • Rent: R65/sqm/month gross
  • Escalation: 8% per annum

 

Rosebank College is a brand of The Independent Institute of Education (The IIE) which is one of the leading private higher education institutions in the country registered with the Department of Higher Education and Training. The IIE has more accredited higher education qualifications than any other, currently over 90.  They are a wholly owned subsidiary of AdvTech Ltd, a public company listed on the Johannesburg Stock Exchange (Pty) LTD.

The Independent Institute of Education (The IIE) offers a variety of quality and accredited education programmes at Rosebank College for students who wish to study through distance learning, full time or on a part time basis. The IIE Degrees, Diplomas and Higher Certificates​​are designed to make students career ready, while offering qualifications on par with industry standards and expectations.

Net operating income

 BUDGETED FIRST YEAR NOI

Period March 2022 - February 2023  
Gross income (ZAR) 9,417,013
Gross Expenses (ZAR) 6,596,449
Net Operating Income (ZAR) 2,820,564

 

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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    
PJ Muller PJ.Muller@empactgroup.co.za +27 (0) 82 888 0828
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

 

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.