Waterkloof Ridge Lifestyle Centre
429 Cliff Avenue | Waterkloof Ridge | Pretoria | 0181
Price on Application
LETTER OF INTEREST DEADLINE 07 OCTOBER 2021
Neighbourhood retail centre with value-add potential
Strong catchment area
Convenient access and ample parking space
Diversified tenant mix appealing to wide variety of shoppers
First year’s forward NOI of approximately R4.3 million
The property is located on the corners of Ridgeview Road, Muskejaat Street and Cliff Avenue in the well-established residential suburb known as Waterkloof Ridge. Waterkloof Ridge is situated c.10km to the south-east of Pretoria's CBD. Cliff Avenue runs parallel to busy Solomon Mahlangu Drive (M10), a key arterial road, linking up to the R21 and Delmas Road.
The property benefits from a strong catchment area made up of middle to high-income households and is surrounded by prominent amenities including; several educational institutions (The Academy for Facility Management, Laerskool Elarduspark, Hoerskool Waterkloof, and Sol-Tech Monument Park Campus).
The property's total GLA measures 5,672 sqm and the centre is currently 76% occupied, dropping from 89% with the exit of Woolworths. The absence of a current anchor tenant provides an opportunity for a national retailer such as Checkers, Pick n Pay or Spar to take up this vacant space. Several factors drive the desirability of this centre, including a strategic suburban location, ease of accessibility via two dedicated entrances and exits, and ample parking space. Rental income at the centre has seen a slight reduction due to Covid-19 concessions and due to the absence of an anchor tenant; hence, the entrance of an anchor tenant would not increase the occupancy rate but also the centre's overall rental income and strengthen the general tenant mix.
The property is laid out in a U-shape. This shape is characteristic of a convenience, suburban retail centre. The centre enjoys two access points along Cliff Avenue or Ridgeview Road respectively. The entrances to the property open up to parking bays designed in an inner and outer ring. There is a separate delivery entrance servicing the eastern wing of the centre. The U-shaped layout allows for convenient walkways linked to all the retail units.
The centre emphasises outdoor shopping, with the popular restaurant, the Dros, utilising an outside seating area and a small playground for children. On the western side of the property are two separate buildings, tenanted by Ridge Mica Hardware and Eden Gardens attracting a unique set of shoppers. The tenant mix would benefit greatly from the addition of a strong anchor tenant.
With regards to building materials, the centre's roof is made with tiles, the superstructure is bricked, plastered and painted, the windows are made from aluminium, the floor coverings are tiles, and the wall finishes are plastered and painted.
Zoning and Title Deed Information
Erf: 1836 Waterkloof Ridge
Registered Owner: Government Employees Pension Fund
Title Deed Number: T122794/2006
Local Authority: City of Tshwane Metropolitan Municipality
Extent: 1.6309 ha
Floor Area Ratio: 5,000 sqm / 8,200 sqm (61%)
Parking: As per scheme
Building Lines: In accordance with the approved site plan
|Description||Number||Area (sqm)||Area (%)|
Competing retail centres
|Competition||Distance from Waterkloof (km)||Size (sqm)|
|Monument Park Shopping Centre||2.1||9,000|
|Waterkloof Rand Centre||2.1||4,000|
|Castle Walk Shopping Centre||3.5||7,392|
Top Tenants by Area
|Number||Tenant||Area occupied (sqm)||Contribution (%)|
|Number||Tenant||Monthly Rental Income|
|4||Castle Ridge Pharmacy||R42,933|
Net operating income
FIRST YEAR NOI
|Period March 2022 - February 2023|
|Gross income (ZAR)||11,482,188|
|Gross Expenses (ZAR)||7,133,287|
|Net Operating Income (ZAR)||4,348,901|
A full breakdown of the projected NOI is available upon signature of an NDA, along with tenancy schedules, rent rolls and plans where available.
There exists an opportunity for a strong anchor tenant to enter this retail centre and improve the current tenant mix to ultimately ensure that synergies can be maximized.
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.
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.
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.