INCOME-PRODUCING SMALL HOLDING WITH MULTIPLE RESIDENTIAL AND COMMERCIAL INCOME STREAMS
An exceptional opportunity to acquire a substantial approximately 46,250m² small holding on Main Road in Tenacre AH, offering multiple existing income streams, extensive improvements and significant value-add potential.
This is not simply a residential property. It is an established income-producing property comprising residential accommodation, commercial facilities and multiple sources of income from one substantial holding.
The owner currently reports total monthly income of approximately R61,500, comprising income from the bottle store, pub, residential houses, rental rooms, flat and tuck shop, together with approximately R4,000 in electricity recoveries.
Based on the owner's reported figures, monthly operating expenses are approximately R25,000, including wages and electricity, resulting in an estimated monthly surplus of approximately R36,500.
This represents approximately R438,000 per annum based on the current owner-reported figures.
At the asking price of R1,950,000, the current reported surplus equates to an indicative annual return of approximately 22.5% before finance costs, taxation, maintenance, capital expenditure and any other expenses not included in the owner's figures.
The property offers:
Approximately 46,250m² of land
Three residential houses
Five additional rental rooms
One flat
Established pub facility
Bottle store facility
Tuck shop
Multiple existing rental and trading income streams
Prepaid electricity meters
Water meters
Main Road exposure
Substantial existing improvements
Significant scope to renovate, improve and optimise the existing buildings and income streams
Potential commercial development opportunity, with commercial rights of more than 300m² reported by the owner and currently being documented and verified
The property is particularly suited to an investor, entrepreneur or developer looking for an income-producing asset with the ability to improve the existing accommodation, enhance the commercial offering and potentially unlock further value from the substantial land component.
The existing improvements require work and investment, which presents an opportunity rather than simply an expense. A purchaser with the right vision and management approach could potentially improve the presentation, occupancy, rental income and commercial performance of the property.
The surrounding market includes a range of small holdings and larger properties, with recent recorded transactions including properties selling above R1.5 million and some exceeding R2 million. The latest TPN property report records the subject property at approximately 46,250m² and provides a statistical estimated value of R730,000; however, that statistical estimate does not specifically account for the condition or value of the structures and improvements on the property.
The seller is asking R1,950,000 for the entire property and its existing improvements.
This is a rare opportunity to acquire a substantial small holding with established income, multiple accommodation options, commercial activity and considerable scope for value creation.
OWNER-REPORTED INVESTMENT FIGURES
Monthly reported income: approximately R61,500
Monthly reported expenses: approximately R25,000
Estimated monthly surplus: approximately R36,500
Estimated annual surplus: approximately R438,000
Asking price: R1,950,000
Indicative return on asking price based on reported surplus: approximately 22.5% per annum
Income figures, commercial rights, zoning, licences, building approvals and other property information are subject to documentary verification and purchaser due diligence.
Serious investors looking for an income-producing property with substantial land, existing infrastructure and room to improve should not overlook this opportunity.