Block of 101 Flats and Pep Store Retail – Springs
The auction is conducted in terms of the Regulations relating to auctions contained in The Consumer Protection Act 68 of 2008 and notice is given that all
sales are subject to a minimum reserve unless otherwise stated. Descriptions mentioned herein are not guaranteed by the auctioneers and are as supplied.
Page | 1
WH Auctioneers Properties (PTY) Ltd
578 16th Road, Randjespark, Midrand
Tel: 0115745700
www.whauctions.com
Contact for further info:
Daniel Pelkowitz Cell: 072 360 7510
Email: [email protected]
PROPERTY FOR SALE
BLOCK OF 101 FLATS – THE LEGACY
NATIONAL TENANT LEASE – PEP STORES
32 Fifth Street Springs
Erven 564 and 566 Springs
PRICE: R30 000 000 (Excl. VAT)
Block of 101 Flats and Pep Store Retail – Springs
The auction is conducted in terms of the Regulations relating to auctions contained in The Consumer Protection Act 68 of 2008 and notice is given that all
sales are subject to a minimum reserve unless otherwise stated. Descriptions mentioned herein are not guaranteed by the auctioneers and are as supplied.
Page | 2
Index
1. General Page 3
2. Title Deed Information Page 3
3. Locality Page 3
4. Description of Improvements Page 6
5. Financial Information Page 7
6. Rent Roll Page 8
7. Income Statement Page 13
8. Unit Breakdown Page 14
9. Site Pictures Page 15
10. Lift Registration Document Page 19
11. PEPKOR Lease Page 20
12. Residential Lease Page 22
13. Zoning Certificate Page 25
14. Municipal Accounts Page 26
15. Title Deed Page 28
Block of 101 Flats and Pep Store Retail – Springs
The auction is conducted in terms of the Regulations relating to auctions contained in The Consumer Protection Act 68 of 2008 and notice is given that all
sales are subject to a minimum reserve unless otherwise stated. Descriptions mentioned herein are not guaranteed by the auctioneers and are as supplied.
Page | 3
1. GENERAL
Property Address: 32 Fifth Street, Springs
Erf & Suburb & City: Erven 564 and 566, Springs, Gauteng
Building Name: The Legacy
2. TITLE DEED INFORMATION
Deeds Office: Johannesburg
Title Deed No: T16135/2015
Land Size (Building): Erf 564: 495m2
Erf 566: 495m2
TOTAL: 990m2
Zoning: Business 1 (See Attached)
.
3. LOCALITY
Springs is a city on the East Rand in the Gauteng province of South Africa. It lies 50 km east of Johannesburg and
72 km southeast from Pretoria. Springs as a city is an economic hub in the East Rand with a diverse economy,
ranging from manufacturing, commerce, service, hospitality, mining and service providing companies.
Springs is one of the industrial centres in Gauteng served by four industrial suburbs, which are New Era, Nuffield,
Enstra and Fulcrum with smaller industrial areas at Dersley, suburb of Springs, Daggafontein, Selection Park,
Selcourt and Strubenvale.
Springs has a well developed CBD with a couple of high-rise office buildings such as the 18-story Checktown
building housing the regional office of Telkom for Gauteng and head office for the trading section and Marketing
of Telkom, the 12-story Standard Bank building which has been standing empty for a number of years, the 14-
story Nongai building that is undergoing restoration and the 13-story Seedfam Towers and also a 14-story
Everest Apartment complex. There are two major shopping malls in the Springs Downtown serving Springs, The
Avenues and Palm Springs. The subject property is located directly opposite The Avenues and Palm Springs
shopping centres.
Block of 101 Flats and Pep Store Retail – Springs
The auction is conducted in terms of the Regulations relating to auctions contained in The Consumer Protection Act 68 of 2008 and notice is given that all
sales are subject to a minimum reserve unless otherwise stated. Descriptions mentioned herein are not guaranteed by the auctioneers and are as supplied.
Page | 4
The GPS co-ordinates for the properties are as follows:
S - 26°25'54.03"
E - 28°44'08.23"
The subject property enjoys all municipal services such as tarred roads, water, sewerage and electricity. The
subject property offers excellent access to the local amenities including:
- The Avenues Shopping Centre - Springs Police Station
- Springs Municipality - Springs Fire Station
- Palm Springs Shopping Centre
Block of 101 Flats and Pep Store Retail – Springs
The auction is conducted in terms of the Regulations relating to auctions contained in The Consumer Protection Act 68 of 2008 and notice is given that all
sales are subject to a minimum reserve unless otherwise stated. Descriptions mentioned herein are not guaranteed by the auctioneers and are as supplied.
Page | 5
Block of 101 Flats and Pep Store Retail – Springs
The auction is conducted in terms of the Regulations relating to auctions contained in The Consumer Protection Act 68 of 2008 and notice is given that all
sales are subject to a minimum reserve unless otherwise stated. Descriptions mentioned herein are not guaranteed by the auctioneers and are as supplied.
Page | 6
4. DESCRIPTION OF IMPROVEMENTS
The subject property is a fourteen-storey, high rise structure which underwent a full conversion into residential
units. The building is comprised of 101 newly renovated apartments. There is a retail shop on the ground floor
currently occupied by PEP under a 3-year triple-net lease.
GLA (Residential): 3 255.50m2
GLA (Retail): 645.20m2
TOTAL GLA: 3 900.70m2
There are two operational lifts within the building as well as biometric access control complete with a turnstile.
There is an SLA in place with Otis to maintain the lifts.
The units can be broken down as follows:
41 X Bachelor units
60 X One-bedroom units
Details of the layout are provided below.
Each storey has 5 one-bedroom units and 3 bachelors except for the 13th storey which has 5 bachelors.
Each unit has a kitchen with built in cupboards, granite tops and a stove. Internal floors are ceramic tiles, while
walls are plastered and painted brickwork, ceilings are painted concrete. The bathrooms consist of a shower and
toilet. Each bedroom has built in cupboards and every unit has tiled floors. The units on the 1st and 13th storeys
have access to balconies. Units on levels 2 to 12 do not have access to balconies.
Services
The units do not have individual geysers. Each storey has a 450-litre geyser as well as heat pumps which supply
water to each unit. This assists greatly in energy and cost saving. Wireless pre-paid electricity meters are installed
in each unit. In the case of power outages, the building will be powered by a 100KVA generator which will power
both lifts, communal lighting as well as plugs within the units. All fire equipment is in place. 3 on-site cleaners
maintain the building
Parking
There is no onsite parking, however arrangements have been made for tenants to park across the road at the
Avenues Shopping Centre. There are also potential plans to build a bridge from the parking lot to the building.
Site Access and Security
Access to the property is gained through two security gates via a biometric system. CCTV cameras monitor the
entrance and exterior of the building. The building is monitored by 24hour security. There are 3 on-site security
guards. There is an onsite leasing and management office.
Block of 101 Flats and Pep Store Retail – Springs
The auction is conducted in terms of the Regulations relating to auctions contained in The Consumer Protection Act 68 of 2008 and notice is given that all
sales are subject to a minimum reserve unless otherwise stated. Descriptions mentioned herein are not guaranteed by the auctioneers and are as supplied.
Page | 7
SUMMARY
Roof: Waterproof Concrete
External Walls: Concrete, Face brick and Plastered and Painted Brickwork
Internal Walls: Plastered and painted brickwork
Internal floors: Tiled
Condition: The building is in a good condition having recently been renovated. Renovations to flats take
place as and when tenants vacate. There is no evidence of roof leaks or structural damage. The
building is kept very clean and neat and is serviced. All maintenance and upkeep is managed by
the owners directly. A structural survey of the building has not been undertaken and will not
form part of this report. All structural and maintenance information are as per information
provided by the owners upon visiting the site.
5. FINANCIAL INFORMATION
Financial information is as per in income statement and rent rolls provided below.
Residential tenants sign 6 month leases. As per the rent rolls and rental statements attached, tenants are billed
monthly for rental and water. The tenants are not charged for parking.
There are pre-paid electricity meters in every unit. which are monitored off-site by a company called Enbaya pre-
paid. Tenants are billed a fixed fee of R300 per month for water.
The retail section is occupied by PEP Stores. PEPKOR signed a 3-year lease in November 2015 with an option to
renew until October 2021. See lease copy attached below.
Block of 101 Flats and Pep Store Retail – Springs
The auction is conducted in terms of the Regulations relating to auctions contained in The Consumer Protection Act 68 of 2008 and notice is given that all sales are subject to a minimum reserve unless otherwise
stated. Descriptions mentioned herein are not guaranteed by the auctioneers and are as supplied.
Page | 8
6. RENT ROLL – APRIL 2018
Block of 101 Flats and Pep Store Retail – Springs
The auction is conducted in terms of the Regulations relating to auctions contained in The Consumer Protection Act 68 of 2008 and notice is given that all sales are subject to a minimum reserve unless otherwise
stated. Descriptions mentioned herein are not guaranteed by the auctioneers and are as supplied.
Page | 9
Block of 101 Flats and Pep Store Retail – Springs
The auction is conducted in terms of the Regulations relating to auctions contained in The Consumer Protection Act 68 of 2008 and notice is given that all sales are subject to a minimum reserve unless otherwise
stated. Descriptions mentioned herein are not guaranteed by the auctioneers and are as supplied.
Page | 10
Block of 101 Flats and Pep Store Retail – Springs
The auction is conducted in terms of the Regulations relating to auctions contained in The Consumer Protection Act 68 of 2008 and notice is given that all sales are subject to a minimum reserve unless otherwise
stated. Descriptions mentioned herein are not guaranteed by the auctioneers and are as supplied.
Page | 11
Block of 101 Flats and Pep Store Retail – Springs
The auction is conducted in terms of the Regulations relating to auctions contained in The Consumer Protection Act 68 of 2008 and notice is given that all sales are subject to a minimum reserve unless otherwise
stated. Descriptions mentioned herein are not guaranteed by the auctioneers and are as supplied.
Page | 12
Block of 101 Flats and Pep Store Retail – Springs
The auction is conducted in terms of the Regulations relating to auctions contained in The Consumer Protection Act 68 of 2008 and notice is given that all
sales are subject to a minimum reserve unless otherwise stated. Descriptions mentioned herein are not guaranteed by the auctioneers and are as supplied.
Page | 13
7. INCOME STATEMENT BASED ON OWNER INFORMATION
Income
PEP Retail Rental (R79 244.20 X 12) R 950,930.40
Residential Rental (R271 800 X 12) R 3,261,600.00
Less 5% Vacancy Allowance R 210,626.52
Add Recoveries
Water R 363,600.00
Electricity* R 264,000.00
Total Gross Annual Income R 4,629,503.88
Less Expenses
Accountant R 30,000.00
Electricity R 675,396.00
Electricity Service Charge R 4,404.00
Water R 282,404.00
Sewerage R 122,652.00
Refuse R 10,932.00
Assessment Rates R 40,416.00
Electrical/Plumbing Maintenance R 36,000.00
Cleaning Material R 24,000.00
Refuse bags R 3,600.00
Stationary R 12,000.00
Salaries (Guards, Cleaners, Admin) R 295,200.00
Data R 3,600.00
Otis Lift Maintenance R 60,000.00
Total Annual Expenses R 1,600,604.00
Net Annual Income R 3,028,899.88
NET ANNUAL INCOME = R3 028 899.88
Block of 101 Flats and Pep Store Retail – Springs
The auction is conducted in terms of the Regulations relating to auctions contained in The Consumer Protection Act 68 of 2008 and notice is given that all
sales are subject to a minimum reserve unless otherwise stated. Descriptions mentioned herein are not guaranteed by the auctioneers and are as supplied.
Page | 14
8. UNIT BREAKDOWN
Block of 101 Flats and Pep Store Retail – Springs
The auction is conducted in terms of the Regulations relating to auctions contained in The Consumer Protection Act 68 of 2008 and notice is given that all
sales are subject to a minimum reserve unless otherwise stated. Descriptions mentioned herein are not guaranteed by the auctioneers and are as supplied.
Page | 15
9. SITE PICTURES
Block of 101 Flats and Pep Store Retail – Springs
The auction is conducted in terms of the Regulations relating to auctions contained in The Consumer Protection Act 68 of 2008 and notice is given that all
sales are subject to a minimum reserve unless otherwise stated. Descriptions mentioned herein are not guaranteed by the auctioneers and are as supplied.
Page | 16
Block of 101 Flats and Pep Store Retail – Springs
The auction is conducted in terms of the Regulations relating to auctions contained in The Consumer Protection Act 68 of 2008 and notice is given that all
sales are subject to a minimum reserve unless otherwise stated. Descriptions mentioned herein are not guaranteed by the auctioneers and are as supplied.
Page | 17
Block of 101 Flats and Pep Store Retail – Springs
The auction is conducted in terms of the Regulations relating to auctions contained in The Consumer Protection Act 68 of 2008 and notice is given that all
sales are subject to a minimum reserve unless otherwise stated. Descriptions mentioned herein are not guaranteed by the auctioneers and are as supplied.
Page | 18
Block of 101 Flats and Pep Store Retail – Springs
The auction is conducted in terms of the Regulations relating to auctions contained in The Consumer Protection Act 68 of 2008 and notice is given that all
sales are subject to a minimum reserve unless otherwise stated. Descriptions mentioned herein are not guaranteed by the auctioneers and are as supplied.
Page | 19
10. LIFT REGISTRATION DOC
Block of 101 Flats and Pep Store Retail – Springs
The auction is conducted in terms of the Regulations relating to auctions contained in The Consumer Protection Act 68 of 2008 and notice is given that all
sales are subject to a minimum reserve unless otherwise stated. Descriptions mentioned herein are not guaranteed by the auctioneers and are as supplied.
Page | 20
11. PEPKOR LEASE
.
Block of 101 Flats and Pep Store Retail – Springs
The auction is conducted in terms of the Regulations relating to auctions contained in The Consumer Protection Act 68 of 2008 and notice is given that all
sales are subject to a minimum reserve unless otherwise stated. Descriptions mentioned herein are not guaranteed by the auctioneers and are as supplied.
Page | 21
Block of 101 Flats and Pep Store Retail – Springs
The auction is conducted in terms of the Regulations relating to auctions contained in The Consumer Protection Act 68 of 2008 and notice is given that all
sales are subject to a minimum reserve unless otherwise stated. Descriptions mentioned herein are not guaranteed by the auctioneers and are as supplied.
Page | 22
12. RESIDENTIAL LEASE EXTRACT
Block of 101 Flats and Pep Store Retail – Springs
The auction is conducted in terms of the Regulations relating to auctions contained in The Consumer Protection Act 68 of 2008 and notice is given that all
sales are subject to a minimum reserve unless otherwise stated. Descriptions mentioned herein are not guaranteed by the auctioneers and are as supplied.
Page | 23
Block of 101 Flats and Pep Store Retail – Springs
The auction is conducted in terms of the Regulations relating to auctions contained in The Consumer Protection Act 68 of 2008 and notice is given that all
sales are subject to a minimum reserve unless otherwise stated. Descriptions mentioned herein are not guaranteed by the auctioneers and are as supplied.
Page | 24
Block of 101 Flats and Pep Store Retail – Springs
The auction is conducted in terms of the Regulations relating to auctions contained in The Consumer Protection Act 68 of 2008 and notice is given that all
sales are subject to a minimum reserve unless otherwise stated. Descriptions mentioned herein are not guaranteed by the auctioneers and are as supplied.
Page | 25
13. ZONING CERTIFICATE
Block of 101 Flats and Pep Store Retail – Springs
The auction is conducted in terms of the Regulations relating to auctions contained in The Consumer Protection Act 68 of 2008 and notice is given that all
sales are subject to a minimum reserve unless otherwise stated. Descriptions mentioned herein are not guaranteed by the auctioneers and are as supplied.
Page | 26
14. MUNICIPAL ACCOUNTS
Block of 101 Flats and Pep Store Retail – Springs
The auction is conducted in terms of the Regulations relating to auctions contained in The Consumer Protection Act 68 of 2008 and notice is given that all
sales are subject to a minimum reserve unless otherwise stated. Descriptions mentioned herein are not guaranteed by the auctioneers and are as supplied.
Page | 27
Block of 101 Flats and Pep Store Retail – Springs
The auction is conducted in terms of the Regulations relating to auctions contained in The Consumer Protection Act 68 of 2008 and notice is given that all
sales are subject to a minimum reserve unless otherwise stated. Descriptions mentioned herein are not guaranteed by the auctioneers and are as supplied.
Page | 28
15. TITLE DEED
Block of 101 Flats and Pep Store Retail – Springs
The auction is conducted in terms of the Regulations relating to auctions contained in The Consumer Protection Act 68 of 2008 and notice is given that all
sales are subject to a minimum reserve unless otherwise stated. Descriptions mentioned herein are not guaranteed by the auctioneers and are as supplied.
Page | 29
Block of 101 Flats and Pep Store Retail – Springs
The auction is conducted in terms of the Regulations relating to auctions contained in The Consumer Protection Act 68 of 2008 and notice is given that all
sales are subject to a minimum reserve unless otherwise stated. Descriptions mentioned herein are not guaranteed by the auctioneers and are as supplied.
Page | 30
Block of 101 Flats and Pep Store Retail – Springs
The auction is conducted in terms of the Regulations relating to auctions contained in The Consumer Protection Act 68 of 2008 and notice is given that all
sales are subject to a minimum reserve unless otherwise stated. Descriptions mentioned herein are not guaranteed by the auctioneers and are as supplied.
Page | 31