1 100 m² Commercial space in Vanderbijlpark Central

Investment opportunity in heart of the Vanderbijlpark city centre

Location: 67 Eric Louw Street, Vanderbijlpark Central , historically the ABSA bank building 

&bull Erf size: 533 m²

&bull Building: Double-storey centre of VDBP

&bull Usable lettable area: 1,100 m²

&bull Age: Approximately 50 years

&bull Tenants: 3 main tenants

&bull Consent Use: Retail and general office space

&bull 18 Offices airconditioned upstairs and large office , open space down stairs

Rental Gross monthly rental: R89,000 est

Gross annual rental: R1,068,000 est

Operating costs assumed: 50 rates, taxes, services, maintenance, etc.

Net Operating Income NOI:

R534,000 per year est Market Factors Included for reduced demand caused by the slowdown in the local economy.

Used a higher investment risk requiring a higher capitalization rate. R5.5 million &ndash R6.0 million general rate

Adjusted value after allowing for the current economic conditions: R4.195 million Rental Rate: 100 occupancy as current

Using 1,100 m² of lettable area: Gross rental: R89,000month Rental per m²: R80.91m²month approximately R81m²

Suggested Marketing Rental

&bull We concluded that the property could be advertised at approximately:

&bull R85&ndashR95m² if refurbished and well presented.

&bull If marketed at R89m², the asking rental would be about R97,900 per month, allowing room for negotiation while remaining broadly in line with secondary commercial rentals.

&bull Capitalisation rate analysis and Cash flow and investor return looks good

 Recent sales in same area of town over R 10million for property similar and use