1 Bedroom Apartment in Braamfontein

R 560 000

Lucia Ngakane

RE/MAX-Central Sandton

1 Bedroom Apartment in Braamfontein

R 560 000

Can I afford this?
1 Beds
1 Baths
Floor Area 55 m²

Great income generators for investor

THE hotel serving - Braamfontein, Johannesburg, and Parktown. It is one of the very few hotels where every room is a suite, offering spacious and well priced accommodation. With us you the guest gets a suite for the price of a room.

Hotel guests enjoy a separate bedroom, bathroom and a large lounge with a work desk and leather chair, flat screen TV (DSTV), Wi-Fi., and a kitchenette.

Each of our 300 modern suites is a separate Sectional Title unit. The owner of the unit receives 1/300th of ALL income generated by the hotel after expenses and a management fee comprising 20% of net profits generated. This means that investors share in suite, conferencing, food and beverage and other income.

Freehold Sectional Title ownership of one of 300 almost identical hotel suites of approximately 55 sq metres, including a 7 sq metre balcony. These suites are in a tower block of 22 typical floors.

Effective ownership of the contents of that suite by way of fittings, furniture, equipment and soft furnishings.

Ownership of 1/300th of all the public rooms, restaurant, bar, conferencing areas and back up areas such as kitchen, storerooms and staff areas. This ownership comes as a result of all these areas being classified as common areas in terms of the Sectional Titles Act. So the revenues generated in these areas, and the costs associated with those areas and generating those revenues, will be apportioned equally between the 300 suite owners.

1/300th share of the net benefits of the lease from the City Council, valid until about 2034, of the Parkade and Recreation Centre. This resulted from the Braamvest Trust ceding the rights and benefits of its lease agreement with the City Council (the City Council Agreement) for the benefit of the Income Pool.

ALL income is pooled. That is revenue not only from the 300 suites, but also from the food and beverage trade in the hotel, the conferencing trade and the net parking and other revenues generated. All expenses are then similarly pooled. The 300 suite owners then each receive 1/300th share of 80% of the TOTAL net income from all hotel operations.

The hotel Management Company receives its only profit as a 20% share of the total net income from hotel operations. So the management company must make profits for the owners in order to make profit for itself.

Unlike many other Sectional Title hotel or condo hotel schemes, there will be no innate conflict of interest between the hotel operating company and the hotel suite owners. There can be no grey areas as to where net revenues must be apportioned they all go into the communal pot, and are shared as described above..

All costs and all repair and refurbishment costs are costs to the TOTAL revenue pool, and the hotel Management Company bears its pro rata share, as do all the suite owners.

If there is a shortfall each owner is levied 1/300th of the shortfall. The hotel operator does not contribute to the shortfall but he then makes nil on his 20% profit entitlement.

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Key Property Features

1
Bedrooms
1
Bathrooms
1
En-suite
1
Lounges
Balcony
BIC
Kitchen

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Experience Johannesburg CBD and Bruma

The Johannesburg CBD encompasses a vast area, ranging from the affluent areas like Linksfield, to more affordable areas like Hillbrow and Bruma. After years of being seen as a no-go area by many, the city centre has bounced back to being in demand again. A massive urban regeneration project has seen money pumped into the area and occupancy is up and crime is down - a sure sign that it's working. The Maboneng precinct, for instance, now attracts a hip, arty crowd to its bars, restaurants, shops and art galleries.

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1 Bedroom Apartment in Braamfontein

R 560 000

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