Property features

R 6 950 000
Rates R20000 pm

Property Details

EXECUTIVE SUMMARY
Full title building in Pretoria CBD on the Arcadia border, which consist of 35 apartments and 5 parkings.
Currently let to working tenants, mostly single or couples.

High potential for Student Accommodation with a very close proximity to Universities like TUT, UP, TVET and Steve Biko Hospital for SMU Students. Building is in good condition and in a safe area close to amenities like schools, shopping centres, place of religion and transport nodes.

PRICE
Asking price is R6 950 000,00.
Estimated replacement cost: R12 000 000.00

CURRENT ANNUAL GROSS INCOME: +-R1 040 000.00.
CURRENT ANNUAL NET INCOME: +-R670 000.00.
Landlord recovers water from tenants.
Electricity is on prepaid.
Very low maintenance as the building is face brick.

LOCATION
Located in Pretoria Central very close to the Union Buildings, on the border of Arcadia.
Close to the following amenities:
Medical facilities – walking distance to hospitals, clinics and medical facilities.
Educational facilities – primary and secondary schools, Universities and Colleges
Shopping facilities – walking distance and in abundance.
Religious facilities – Many churches surrounding the building.
Transport facilities – Gautrain, taxi ranks, Bus Rapid Transit station

ENTITY
Property is registered in A COMPANY.
The company is NOT for sale as a share Transfer.
The company is NOT registered for VAT.
TRANSFER DUTY IS PAYABLE.

SPECIFICATIONS
AGE OF THE BUILDING: Building was converted from office to residential in 2018.
CONDITION: Building is well maintained. Apartment interior upgraded and renovated before any new tenants move in.
Needs minor cosmetic attention.
NET LETTABLE AREA: +-800m2
ERF SIZE: 528m2
APARTMENT MIX:
Each apartment has a kitchenette, geyser, open plan bedroom/s with built (no cupboards), bathroom with toilet, basin and shower.
Average size of the apartment is 23m2.

LEVELS: 3 Residential floors
PARKING: 5 secure x Open parkings - gated

TENANT MIX: Currently leased to normal working-class tenants, mostly families.

ZONING: General Business. With application for General Residential. Apply at Tshwane for General Residential, and receive a reduction in rates.

HERITAGE: Not subject to PHRA-G as the building age is below 60 years.
If a property is older than 60 years, it is subject to Section 34 of the National Heritage Resources Act. A permit from the relevant provincial heritage authority must be obtained for any renovations, demolition and alterations. The municipality will not approve plans without the PHRA-G consent.

ACANCIES: Fully occupied with no vacancies and waiting list of tenants. When a tenant relocates, the owner first clean upgrade the apartment.
Tenant waiting list secured for this building. High rental demand.

FEATURES AND FACILITIES:

  Caretaker stays in one of the apartments.  He does not pay rent. It is part of his salary package.

  Double gate to building for security.

  5 secure parkings inside building for small vehicles.

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  Washing line area
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  1 x Vehicle Entrances and 1 Pedestrian Entrance

  Secure area with no incidents at this building.

  Electricity prepaid meters for each apartment.

FINANCES
An income and expenses statement will be provided to successful buyers during their due diligence.

General Monthly Expenses

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  Tshwane Waste Removal
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  Caretaker/Cleaner salary
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  Property Management by Huurkor - 6%
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  Municipal costs (rates, water, electricity, sewer and refuge)

  Landlord recovers R150.00 per tenant for meter reading and water.

CAPITAL EXPENDITURE ITEMS (CGT deductible)

  Solar, Hot-water Boiler and Borehole Installation

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  Building extensions
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  Major refurbishments
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  New security system
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UPSIDE

  Student Accommodation (Private and NSFAS)

The location of this building allows for a Student Accommodation Opportunity.
Conservatively calculated, 100 student beds will fit. Estimated cost for conversion, amount to R5 000.00 per bed.
On A-Grade buildings, NSFAS pays R52 000.00 per student per annum in 2026.
For a full analysis and scope on Student Accommodation, please request from broker.
This building would easily be approved as a 35 x Bed Student Accommodation Facility, due to the close proximity to TUT, TVET, UP and Steve Biko Academic.

POTENTIAL STUDENT ACCOMMODATION INCOME:

35 X R50 000,00 = R1 750 000.00 Gross income per annum.

BROKER BACKGROUND

Started in the industry in 2004, we are a niche brokerage that assist entrepreneurs to start successful and steadily build their income generating property portfolios.
We specialize in inner-city investment stock consisting mainly of blocks of residential apartments, development land, student accommodation and mixed-use buildings in Sunnyside, Arcadia, Pretoria CBD, Silverton, Pretoria West and Hatfield.

We assist entrepreneurs and existing investors not only to acquire buildings, but also to obtain finance, an effective due diligence support, preparation for NSFAS/University accreditation, BOQ, Conversion into student accommodation and sourcing property management.

DISCLAIMER:

We made every effort to ensure the accuracy of the information on this property at the time of listing. It is advised that the purchaser does a thorough due diligence to verify the information.
Should any cost or detail change, the broker cannot be held liable for any omissions, errors or differences.