4 Weightman Avenue - Aucor
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Empangeni Retail Centre with Blue Chip Tenants
KwaZulu-Natal Gross Lettable Area ±4,171m2 (Seller Supplied)
4 Weightman Avenue
Wednesday, 16 October 2019 @ 12h00
Houghton Golf Club – Osborn Road, Houghton, Johannesburg
Warren Aronson | 082 529 1020 | WarrenA@aucor.com
Version 2: 12 September 2019 LK
Retail Centre with Blue Chip Tenants – Empangeni, KwaZulu-Natal
Index
Disclaimer, Auction Information and Terms & Conditions Page 3
Property Images Page 4
Executive Summary & Key Investment Highlights Page 5
General Information Page 6
Locality Information Page 7
Property Description Page 10
Layout Plan Page 11
Tenancy Schedule Page 12
Rent Roll Page 13
Projected Income Page 14
Projected income Summary Page 15
Lease Summary Page 16
Rates Statement Page 22
Surveyor General Diagram Page 23
/AucorProperty www.aucorproperty.co.za 2
Retail Centre with Blue Chip Tenants – Empangeni, KwaZulu-Natal
Disclaimer, Auction Information and
Terms & Conditions
Disclaimer
Whilst all reasonable care has been taken to provide accurate information, neither Aucor Corporate (Pty)
Ltd T/A Aucor Property nor the Seller/s guarantee the correctness of the information provided herein and
neither will be held liable for any direct or indirect damages or loss, of whatsoever nature, suffered by any
person as a result of errors or omissions in the information provided, whether due to negligence or otherwise
of Aucor Corporate (Pty) Ltd T/A Aucor Property or the Seller/s or any other person.
________________________________________________________________________________________________________
Auction Information
Deposit 5% of the bid price
Commission 10% plus 15% VAT thereon of the bid price
Confirmation period 7 Business Days
Rules of auction and conditions of sale are available at www.aucorproperty.co.za/
________________________________________________________________________________________________________
Terms & Conditions
R50 000 refundable deposit (strictly bank guaranteed cheque or cash transfer only). Bidders must provide
original proof of identity and residence on registration. No cash will be accepted at the auction. No
exceptions. All bids are exclusive of VAT. Aucor Property may bid up to reserve on behalf of the sellers.
Subject to change without notification. Auctioneer: Pieter Geldenhuys.
/AucorProperty www.aucorproperty.co.za 3
Retail Centre with Blue Chip Tenants – Empangeni, KwaZulu-Natal
Property Images
/AucorProperty www.aucorproperty.co.za 4
Retail Centre with Blue Chip Tenants – Empangeni, KwaZulu-Natal
Executive Summary &
Key Investment Highlights
Street Address: 4 Weightman Avenue - Empangeni, KwaZulu-Natal
GPS Coordinates: -28.7446, 31.8844
Registered Land Sizes: 6,579m²
Zoning: To be verified
Assessment Rates: R32 550,00 / month - excluding consumpt ion charges and cit y
levies.
Improvements on the subject property comprise two
unconventional-shaped buildings with street frontage, configured
Accommodation:
to host multiple retail activities of varying size and configurations.
Approx. Total Gross Lettable Area: ±4,171m² (Seller Supplied)
Occupation: The property is multi-let. See from page 12 onwards for details.
Fully tenanted retail investment opportunity in Empangeni,
KwaZulu-Natal.
Key Investment Highlights: Various blue chip tenants, including Boxer, PEP and Build-It.
A projected first-year net-income of approximately R5.1million.
Advantageously located opposite the taxi rank.
By bidding on t his propert y, t he purchaser acknowledges t hat he has acquaint ed himself wit h t he
ext ent and t he nat ure of t he propert y he is buying, and t hat he accept s t he propert y as such.
/AucorProperty www.aucorproperty.co.za 5
Retail Centre with Blue Chip Tenants – Empangeni, KwaZulu-Natal
General Information
Street Address 4 Weightman Avenue - Empangeni, KwaZulu-Natal
GPS Co-Ordinates -28.7446, 31.8844
________________________________________________________________________________________________________
Title Deed Information
Title Deed Number T35887/2016
Registered Owner Cumulative Properties Limited
Title Deed Description Erf 8914, Empangeni
Registered Land Size 6,579m²
Title Deed Conditions A copy of the Title Deed is on hand and will be made available
to bona fide prospective purchasers upon request.
Servitudes A Road Servitude S.G. No. 2938/1978 is registered over a portion
of the subject property.
A Pedestrian Lane Servitude, a Sewer Servitude and a Water
Pipeline Servitude (S.G. No. 2023/1999) on Erf 8436, directly
abutting the western boundary of the subject property.
________________________________________________________________________________________________________
Municipality Information
Municipality uMhlathuze Local Municipality
Rates Excluding consumption charges and city levies - based on the
Tax Invoice for the July 2019 billing period (see a copy
attached to this brochure for these and other charges)
2019 / 2020
Municipal Rates 2019 / 2020 2019 / 2020
Exclusion Rebate Monthly Rates
Valuation Category Tariff Annual Rates
(Annual ÷12)
Business /
R 18 000 000 N/A N/A 0,0217000 R 390 600,00 R 32 550,00
Commercial
________________________________________________________________________________________________________
Zoning Information
Zoning To be verified
/AucorProperty www.aucorproperty.co.za 6
Retail Centre with Blue Chip Tenants – Empangeni, KwaZulu-Natal
Locality Information
Macro Locality
The subject property is located on the corner of the Nkwanazi Street and Weightman Avenue intersection,
opposite the bustling taxi rank across from the Empangeni Central Business District. Empangeni is central to
a well-established agricultural community and boasts a strong economic relationship with the harbour town
of Richards Bay, KwaZulu-Natal. The Empangeni CBD still serves its traditional function by being a strong
commercial node hosting the town’s main office and retail offerings in an accessible manner. South-East of
the city, Nkwanazi Street becomes the John Ross Highway, which links Empangeni to Richards Bay. The N2
Highway leading to Durban in the South and Mozambique in the North is also easily accessed from the John
Ross Highway. The subject property features a high volume of passing pedestrian and vehicular traffic with
all major services and amenities available in close proximity.
GPS coordinates for the site are as follows: -28.7446, 31.8844
Taxi Rank
Empangeni CBD
Image Data: Google, AfriGIS (Pty) Ltd, DigitalGlobe
N
/AucorProperty www.aucorproperty.co.za 7
Retail Centre with Blue Chip Tenants – Empangeni, KwaZulu-Natal
Locality
Locality
Information Information
Micro Locality
N
Empangeni Prison
Taxi Rank
OK Shopping Centre
Image Data: Google, AfriGIS (Pty) Ltd, DigitalGlobe
/AucorProperty www.aucorproperty.co.za 8
Improvements on the property seems to encroach
the street boundary lines of the property. A suitable
professional should be appointed to confirm the
boundary lines of the property.
Locality
Information
Property
/AucorProperty
Approximate Boundaries
Description
Retail Centre with Blue Chip Tenants – Empangeni, KwaZulu-Natal
www.aucorproperty.co.za
Image Data: Google, AfriGIS (Pty) Ltd, DigitalGlobe N
9
Retail Centre with Blue Chip Tenants – Empangeni, KwaZulu-Natal
Property Description
Accommodation Improvements on the subject property comprise two unconventional-shaped
buildings with street frontage, configured to host multiple retail activities of varying
size and configuration.
The first building (Building 1) comprises an open plan warehouse configured to
accommodate a bulk grocery store with a main customer entrance from the
adjacent taxi rank, as well as a delivery area with basement parking (also utilized
by the local taxi association) from Weightman Avenue. The floor area of the
warehouse provides for a trading area with provision for dry and cold storage,
kitchens, bakery, butchery, storage area and management offices.
The second building (Building 2) is configured to accommodate eleven (11)
lettable retail units with access from the adjacent taxi rank.
________________________________________________________________________________________________________
Construction The buildings are constructed of a combination of steel/in-situ casted concrete
structures with brick wall inserts (Building 1) and standard brick walls (Building 2),
topped with IBR extensions and flat roofing. Shopfronts of each retail unit in Building
2 are uniquely configured, but predominantly comprise of steel shopfronts or
framed glass windows and doors with burglar proofing and steel roller shutter
doors.
________________________________________________________________________________________________________
Fixtures and Finishes The buildings have been fitted to tenant specifications.
________________________________________________________________________________________________________
Utilities Contractually, some of the property rates and all the consumables and fixed
municipal charges can be recovered. Recoveries are on a pro-rata basis, unless
metered or otherwise agreed.
_______________________________________________________________________________________________________
Gross Lettable Area ±4171m² (seller supplied)
_______________________________________________________________________________________________________
Occupation The property is multi-let. See from page 12 onwards for details.
________________________________________________________________________________________________________
Condition The buildings requires repairs and maintenance. No structural survey of the
buildings has been undertaken nor have tests or inspections of service installations
been arranged.
By bidding on this property, the purchaser acknowledges that he has acquainted himself with the extent and the nature of the
property he is buying and that he accepts the property as such.
/AucorProperty www.aucorproperty.co.za 10Retail Centre with Blue Chip Tenants – Empangeni, KwaZulu-Natal
Layout Plan
Floor Layout Only
Shop 7
Taxi Rank
Shop 1
Shop 2A
Shop 2B
Shop 3B
Shop 3
Shop 3A
Kiosk
Shop 4
Shop 5
Shop 7
/AucorProperty www.aucorproperty.co.za 11Tenancy Schedule - December 2019
Pro-
Area Basic Rental Lease Term Lease
Unit Item / Tenant Rata Esc%
Let (Monthly) (Years) Expiry
Share
Retail Rental
Shop 1 330
Pepkor Trading (Pty) Ltd T/A PEP Empangeni 11,89% R 45 429,63 7% 3 years 2020/03/31
Shop 2A 166
Shop 2B Huang Xiujian T/A Ping Huang Trading* 129 3,09% R 24 936,40 8% 3 years 2019/09/30
Shop 3 Emmanuel Nkosinathi Mlipa T/A Honchos Flame Frilled Chicken 153 3,66% R 17 277,76 9% 5 years 2020/05/31
Shop 3A Michael Nwankwo Trading CC T/A Isidingo Salon 69 1,65% R 11 875,83 10% 3 years 2021/07/31
/AucorProperty
Shop 3B Azga Trading (Pty) Ltd T/A B.N.T Cell 16 0,38% R 5 930,49 10% 3 years 2020/04/30
Shop 4 Muhammad Younis Khan T/A My Hardware 100 2,40% R 23 617,46 10% 3 years 2020/02/29
Shop 5 Ashmee Lutawan T/A AJ Liquor Store 105 2,52% R 23 170,69 10% 3 years 2020/03/31
Shop 6 Mixshelf 1143 CC T/A Empangeni Build-It 500 11,98% R 68 024,45 8% 5 years 2020/09/30
Shop 7 Boxer Superstores Limited 2593 62,17% R 209 147,92 7% 10 years 2025/12/31
Kiosk Michael Robert French T/A MR French 10 0,23% R 1 982,88 8% 5 Years 2022/10/31
4171 100% R 431 393,51
Notes/Assumptions
1. Based on the Tenancy Schedule as supplied by the Seller for the August 2019 billing period combined with the executed Lease Documents.
Tenancy Schedule
December 2019 – Seller Supplied
2. All rental information presented above is exclusive of VAT.
3. The Lease Agreement for Shop 2B is expiring on 30 September 2019. It is assumed, for the purpose of this Tenancy Schedule that this Lease Agreement is continued
Retail Centre with Blue Chip Tenants – Empangeni, KwaZulu-Natal
on the same terms and conditions. The terms and conditions should be confirmed with the Seller once an agreement is reached between the Landlord and the
Special Note - The rental information in this brochure is not intended to constitute specific advice nor to substitute for a due diligence exercise, and accordingly
should not be relied upon to make a purchase decision. Prospective purchasers should make their own enquiries and investigation to confirm pertinent information
and forecasts, and should further seek appropriate independent professional advice in relation thereto from suitably qualified professionals to complete their own
www.aucorproperty.co.za
Compiled - 9 September 2019.
12Rent Roll - September 2019
Area Basic Rental Rates and Refuse
Unit Item / Tenant Electricity Water Sewerage Other Total
Let (Monthly) Taxes Removal
Retail Rental
Shop 1 330
Pepkor Trading (Pty) Ltd T/A PEP Empangeni R 45 429,63 R 3 539,76 R 436,88 R 69,68 R 1 248,62 R 2 324,29 R - R 53 048,86
Shop 2A 166
Shop 2B Huang Xiujian T/A Ping Huang Trading 129 R 23 089,27 R 149,92 R 336,71 R 38,72 R 324,75 R 604,50 R 56,29 R 24 600,16
Shop 3 Emmanuel Nkosinathi Mlipa T/A Honchos Flame Frilled Chicken
153 R 17 277,76 R 19 833,77 R 1 267,76 R 389,88 R 503,31 R 716,97 R 71,30 R 40 060,75
Shop 3A Michael Nwankwo Trading CC T/A Isidingo Salon 69 R 11 875,83 R 80,19 R 262,62 R 53,39 R 96,78 R 323,34 R 10,27 R 12 702,42
Shop 3B Azga Trading (Pty) Ltd T/A B.N.T Cell 16 R 5 930,49 R 18,59 R 29,64 R - R 40,28 R 74,98 R - R 6 093,98
Shop 4 Muhammad Younis Khan T/A My Hardware 100 R 23 617,46 R 1 187,13 R 293,69 R 77,38 R 251,73 R 468,61 R - R 25 896,00
Shop 5 Ashmee Lutawan T/A AJ Liquor Store 105 R 23 170,69 R 122,03 R 122,25 R 7,53 R 264,33 R 492,04 R 56,21 R 24 235,08
Rent Roll
Shop 6 Mixshelf 1143 CC T/A Empangeni Build-It 500 R 62 985,60 R 8 902,77 R 1 468,49 R 386,92 R 1 420,52 R 2 343,04 - R 77 507,34
/AucorProperty
Shop 7 Boxer Superstores Limited 2593 R 209 147,91 - R 1 364,27 R 5 328,95 R 5 352,62 R 12 150,98 - R 233 344,73
Kiosk Michael Robert French T/A MR French 10 R 1 836,00 R 11,62 R 18,52 - R 32,92 R 43,99 - R 1 943,05
4171 R 424 360,64 R 33 845,78 R 5 600,83 R 6 352,45 R 9 535,86 R 19 542,74 R 194,07 R 499 432,37
Gross Income billed for the month of September 2019 R 499 432,37
Basic Rental R 424 360,64
Rates and Taxes R 9 535,86
Refuse Removal R 19 542,74
Electricity R 33 845,78
Water R 5 600,83
Sewerage R 6 352,45
Other R 194,07
September 2019 – Seller Supplied
Notes/Assumptions
1. Based on the Rent Roll as supplied by the Seller for the September 2019 billing period.
Retail Centre with Blue Chip Tenants – Empangeni, KwaZulu-Natal
2. All rental information presented above are exclusive of VAT.
3. Rental Information excludes balances brought forward.
4. The 'Other 'category on the Rent Roll refers to interest on arrears during this period.
Special Note - The rental information in this brochure is not intended to constitute specific advice nor to substitute for a due diligence exercise, and accordingly should not be relied upon to make a purchase decision.
www.aucorproperty.co.za
Prospective purchasers should make their own enquiries and investigation to confirm pertinent information and forecasts, and should further seek appropriate independent professional advice in relation thereto from
suitably qualified professionals to complete their own due diligence in relation to the Property.
Compiled: 9 September 2019
13Cashflow Projections - December 2019 to November 2020
Approx. Area /
Premises Item / Tenant Expiry Date Esc. Basic Rent Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Total
Units
Retail Rental (excluding rates & taxes and consumption charges)
Shop 1 330
Pepkor Trading (Pty) Ltd T/A PEP Empangeni 2020/03/31 7% R 45 429,63 R 45 429,63 R 45 429,63 R 45 429,63 R 45 429,63 R 48 609,70 R 48 609,70 R 48 609,70 R 48 609,70 R 48 609,70 R 48 609,70 R 48 609,70 R 48 609,70 R 570 596
Shop 2A 166
Shop 2B Huang Xiujian T/A Ping Huang Trading 2019/09/30 8% R 23 089,27 129 R 23 089 R 23 089 R 23 089 R 23 089 R 23 089 R 23 089 R 23 089 R 23 089 R 23 089 R 23 089 R 24 936 R 24 936 R 280 766
Shop 3 Emmanuel Nkosinathi Mlipa T/A Honchos Flame Frilled Chicken
2020/05/31 9% R 17 277,76 153 R 17 278 R 17 278 R 17 278 R 17 278 R 17 278 R 17 278 R 18 833 R 18 833 R 18 833 R 18 833 R 18 833 R 18 833 R 216 663
Shop 3A Michael Nwankwo Trading CC T/A Isidingo Salon 2021/07/31 10% R 11 875,83 69 R 11 876 R 11 876 R 11 876 R 11 876 R 11 876 R 11 876 R 11 876 R 11 876 R 13 063 R 13 063 R 13 063 R 13 063 R 147 260
Shop 3B Azga Trading (Pty) Ltd T/A B.N.T Cell 2020/04/30 10% R 5 930,49 16 R 5 930 R 5 930 R 5 930 R 5 930 R 5 930 R 6 524 R 6 524 R 6 524 R 6 524 R 6 524 R 6 524 R 6 524 R 75 317
Shop 4 Muhammad Younis Khan T/A My Hardware 2020/02/29 10% R 23 617,46 100 R 23 617 R 23 617 R 23 617 R 25 979 R 25 979 R 25 979 R 25 979 R 25 979 R 25 979 R 25 979 R 25 979 R 25 979 R 304 665
Shop 5 Ashmee Lutawan T/A AJ Liquor Store 2020/03/31 10% R 23 170,69 105 R 23 171 R 23 171 R 23 171 R 23 171 R 25 488 R 25 488 R 25 488 R 25 488 R 25 488 R 25 488 R 25 488 R 25 488 R 296 585
Shop 6 Mixshelf 1143 CC T/A Empangeni Build-It 2020/09/30 8% R 62 985,60 500 R 62 986 R 62 986 R 62 986 R 62 986 R 62 986 R 62 986 R 62 986 R 62 986 R 62 986 R 62 986 R 68 024 R 68 024 R 765 905
Shop 7 Boxer Superstores Limited 2025/12/31 7% R 209 147,91 2593 R 209 148 R 223 788 R 223 788 R 223 788 R 223 788 R 223 788 R 223 788 R 223 788 R 223 788 R 223 788 R 223 788 R 223 788 R 2 670 819
Kiosk Michael Robert French T/A MR French 2022/10/31 8% R 1 836,00 10 R 1 836 R 1 836 R 1 836 R 1 836 R 1 836 R 1 836 R 1 836 R 1 836 R 1 836 R 1 836 R 1 836 R 1 983 R 22 179
4 171 R 424 361 R 439 001 R 439 001 R 441 363 R 446 860 R 447 453 R 449 008 R 449 008 R 450 196 R 450 196 R 457 082 R 457 228 R 5 350 755
Other Income (excluding consumption charges)
/AucorProperty
Rates and Taxes Recovery R 9 536 R 9 536 R 9 536 R 9 536 R 9 536 R 9 536 R 9 536 R 10 019 R 10 019 R 10 019 R 10 019 R 10 019 R 116 844
R 9 536 R 9 536 R 9 536 R 9 536 R 9 536 R 9 536 R 9 536 R 10 019 R 10 019 R 10 019 R 10 019 R 10 019 R 116 844
Total Estimated Income (excluding consumption charges) R 433 896 R 448 537 R 448 537 R 450 898 R 456 395 R 456 989 R 458 544 R 459 027 R 460 214 R 460 214 R 467 100 R 467 247 R 5 467 599
Item / Tenant Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Total
Rates and Taxes (Landlord's Portion) (R 23 014) (R 23 014) (R 23 014) (R 23 014) (R 23 014) (R 23 014) (R 23 014) (R 24 181) (R 24 181) (R 24 181) (R 24 181) (R 24 181) (R 282 006)
Cleaning (R 2 371) (R 2 371) (R 2 371) (R 2 371) (R 2 371) (R 2 371) (R 2 371) (R 2 371) (R 2 371) (R 2 371) (R 2 371) (R 2 371) (R 28 446)
Pump Service (R 748) (R 748) (R 748) (R 748) (R 748) (R 748) (R 748) (R 748) (R 748) (R 748) (R 748) (R 748) (R 8 978)
Pest Controll R0 (R 657) R0 R0 (R 657) R0 R0 (R 657) R0 R0 (R 657) R0 (R 2 626)
Meter Reading (R 2 195) (R 2 195) (R 2 195) (R 2 195) (R 2 195) (R 2 195) (R 2 195) (R 2 195) (R 2 195) (R 2 195) (R 2 195) (R 2 195) (R 26 334)
Total Estimated Expenses (excluding consumption charges) (R 28 328) (R 28 984) (R 28 328) (R 28 328) (R 28 984) (R 28 328) (R 28 328) (R 30 151) (R 29 494) (R 29 494) (R 30 151) (R 29 494) (R 348 390)
POTENTIAL FIRST YEAR NET INCOME R 5 119 209
Notes/Assumptions
Projected Income
1. The Cashflow Projections were compiled based on a combination of the Tenancy Schedule and Lease Agreements.
2. All amounts represented above are exclusive of VAT.
3. Consumption charges are fully recovered/recoverable. Rates and Taxes are under-recovered.
4. Apart from Rates and Taxes, only contractual expenses were included under expenses. Projected cleaning, plumbing, pest controll and meter reading expenses are as supplied by the Seller and no provision for escalation was made. An interested Buyer should add to/amend the expenses in accordance with their operating model.
5. Should a Lease Agreement expire during the projection period it is assumed that the Lease Agreement will continue on the same terms and conditions. The terms and conditions should be confirmed with the Seller once an agreement has been reached between the Landlord and the Tenant.
Special Note - The rental information in this brochure is not intended to constitute specific advice nor to substitute for a due diligence exercise, and accordingly should not be relied upon to make a purchase decision. Prospective purchasers should make their own enquiries and investigation to confirm
pertinent information and forecasts, and should further seek appropriate independent professional advice in relation thereto from suitably qualified professionals to complete their own due diligence in relation to the Property.
Retail Centre with Blue Chip Tenants – Empangeni, KwaZulu-Natal
Compiled: 12 September 2019
1 December 2019 – 30 November 2020
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14Retail Centre with Blue Chip Tenants – Empangeni, KwaZulu-Natal
Projected Income Summary
1 December 2019 – 30 November 2020
Cashflow Projections - December 2019 to November 2020
Approx. Area /
Premises Item / Tenant Expiry Date Esc. Basic Rent Total
Units
Retail Rental (excluding rates & taxes and consumption charges)
Shop 1 330
Pepkor Trading (Pty) Ltd T/A PEP Empangeni 2020/03/31 7% R 45 429,63 R 570 596
Shop 2A 166
Shop 2B Huang Xiujian T/A Ping Huang Trading 2019/09/30 8% R 23 089,27 129 R 280 766
Shop 3 Emmanuel Nkosinathi Mlipa T/A Honchos Flame Frilled Chicken
2020/05/31 9% R 17 277,76 153 R 216 663
Shop 3A Michael Nwankwo Trading CC T/A Isidingo Salon 2021/07/31 10% R 11 875,83 69 R 147 260
Shop 3B Azga Trading (Pty) Ltd T/A B.N.T Cell 2020/04/30 10% R 5 930,49 16 R 75 317
Shop 4 Muhammad Younis Khan T/A My Hardware 2020/02/29 10% R 23 617,46 100 R 304 665
Shop 5 Ashmee Lutawan T/A AJ Liquor Store 2020/03/31 10% R 23 170,69 105 R 296 585
Shop 6 Mixshelf 1143 CC T/A Empangeni Build-It 2020/09/30 8% R 62 985,60 500 R 765 905
Shop 7 Boxer Superstores Limited 2025/12/31 7% R 209 147,91 2593 R 2 670 819
Kiosk Michael Robert French T/A MR French 2022/10/31 8% R 1 836,00 10 R 22 179
4 171 R 5 350 755
Other Income (excluding consumption charges)
Rates and Taxes Recovery R 116 844
R 116 844
Total Estimated Income (excluding consumption charges) R 5 467 599
Item / Tenant Total
Rates and Taxes (Landlord's Portion) (R 282 006)
Cleaning (R 28 446)
Pump Service (R 8 978)
Pest Controll (R 2 626)
Meter Reading (R 26 334)
Total Estimated Expenses (excluding consumption charges) (R 348 390)
POTENTIAL FIRST YEAR NET INCOME R 5 119 209
Notes/Assumptions
1. The Cashflow Projections were compiled based on a combination of the Tenancy Schedule and Lease Agreements.
2. All amounts represented above are exclusive of VAT.
3. Consumption charges are fully recovered/recoverable. Rates and Taxes are under-recovered.
4. Apart from Rates and Taxes, only contractual expenses were included under expenses. Projected cleaning, plumbing, pest controll and meter reading expenses are as
supplied by the Seller and no provision for escalation was made. An interested Buyer should add to/amend the expenses in accordance with their operating model.
5. Should a Lease Agreement expire during the projection period it is assumed that the Lease Agreement will continue on the same terms and conditions. The terms and
conditions should be confirmed with the Seller once an agreement has been reached between the Landlord and the Tenant.
Special Note - The rental information in this brochure is not intended to constitute specific advice nor to substitute for a due diligence exercise, and
accordingly should not be relied upon to make a purchase decision. Prospective purchasers should make their own enquiries and investigation to confirm
pertinent information and forecasts, and should further seek appropriate independent professional advice in relation thereto from suitably qualified
professionals to complete their own due diligence in relation to the Property.
Compiled: 12 September 2019
/AucorProperty www.aucorproperty.co.za 15Retail Centre with Blue Chip Tenants – Empangeni, KwaZulu-Natal
Lease Summaries
These lease summaries should not be relied upon in isolation and should be read in conjunction with the executed lease
documents, copies of which are available to bona fide prospective purchasers upon request.
_______________________________________________________________________________________________________
Lease 1
Tenant Pepkor Trading (Pty) Ltd T/A PEP Empangeni
Rentable Area Shop 1 – 330m² and Shop 2A – 166m²
Start Date 2017/04/01 – Beneficial Occupation 2017/03/01
Expiry Date 2020/03/31
Renewal Period 1 x 3 Years
Escalation Rate 7% per annum
Monthly Rental (excl VAT) From To Area (m²) Basic Rental Gross Rate / m²
2019/04/01 2020/03/31 496 R 45 429,63 R 91,59
Additional Charges Pro-rata increases on rates and taxes; Metered consumption charges; Pro-
rata Municipal charges; Pro-rata share of any other service providers,
including meter reading services.
Key Clauses ‘1.16.4.1. The shopping centre/building will from the commencement date
and at all times during the currency of the lease be anchored by a national
food supermarket.’
‘1.16.4.2. If more than 40% of the gross lettable area of the shopping centre is
vacant for 6 months or more then the basic monthly rental will be reduced
by the percentage of gross lettable area of the shopping centre that is
vacant. Such rental reduction will be removed once the centre is again less
than 40% vacant.’
_______________________________________________________________________________________________________
Lease 2
Tenant Huang Xiujian T/A Ping Huang Trading
Rentable Area Shop 2B – 129m²
Start Date 2016/10/01
Expiry Date 2019/09/30
Renewal Period N/A
Escalation Rate 8% per annum
Monthly Rental (excl VAT) From To Area (m²) Basic Rental Gross Rate / m²
2018/10/01 2019/09/30 129 R 23 089,26 R 178,99
Additional Charges See Note 1
Commencement charge: Refuse – R487.24; Assessment Rates, Sanitation,
CID, Other Charges – R0.00
Key Clauses See Note 2
/AucorProperty www.aucorproperty.co.za 16Retail Centre with Blue Chip Tenants – Empangeni, KwaZulu-Natal
Lease Summaries
These lease summaries should not be relied upon in isolation and should be read in conjunction with the executed lease
documents, copies of which are available to bona fide prospective purchasers upon request.
_______________________________________________________________________________________________________
Lease 3
Tenant Emmanuel Nkosinathi Mlipa T/A Honchos Flame Frilled Chicken
Rentable Area Shop 3 – 153m²
Start Date 2015/06/01 - Beneficial Occupation 2015/04/01
Expiry Date 2020/05/31
Renewal Period N/A
Escalation Rate 9% per annum
Monthly Rental (excl VAT) From To Area (m²) Basic Rental Gross Rate / m²
2019/06/01 2020/05/31 153 R 17 277,76 R 112,93
Additional Charges See Note 1
Commencement charge: Refuse – R481.95; Assessment Rates, Sanitation,
CID, Other Charges – R0.00
Key Clauses See Note 2
_______________________________________________________________________________________________________
Lease 4
Tenant Michael Nwankwo Trading CC T/A Isidingo Salon
Rentable Area Shop 3A – 69m²
Start Date 2018/08/01
Expiry Date 2021/07/31
Renewal Period N/A
Escalation Rate 10% per annum
Monthly Rental (excl VAT) From To Area (m²) Basic Rental Gross Rate / m²
2019/08/01 2020/07/31 R 11 875,83 R 172,11
69
2020/08/01 2021/07/31 R 13 063,41 R 189,32
Additional Charges See Note 1
Commencement charge: Refuse – R299.39; Assessment Rates, Sanitation,
CID, Other Charges – R0.00
Key Clauses See Note 2
/AucorProperty www.aucorproperty.co.za 17Retail Centre with Blue Chip Tenants – Empangeni, KwaZulu-Natal
Lease Summaries
These lease summaries should not be relied upon in isolation and should be read in conjunction with the executed lease
documents, copies of which are available to bona fide prospective purchasers upon request.
_______________________________________________________________________________________________________
Lease 5
Tenant Azga Trading (Pty) Ltd T/A B.N.T Cell
Rentable Area Shop 3B – 16m²
Start Date 2017/05/01
Expiry Date 2020/04/30
Renewal Period N/A
Escalation Rate 10% per annum
Monthly Rental (excl VAT) Gross Rate / m²
From To Area (m²) Basic Rental
2019/05/01 2020/04/30 16 R 5 930,49 R 370,66
Additional Charges See Note 1
Commencement charge: Refuse – R73.64; Assessment Rates, Sanitation, CID,
Other Charges – R0.00
Key Clauses See Note 2
_______________________________________________________________________________________________________
Lease 6
Tenant Muhammad Younis Khan T/A My Hardware
Rentable Area Shop 4 – 100m²
Start Date 2017/03/01
Expiry Date 2020/02/29
Renewal Period N/A
Escalation Rate 10% per annum
Monthly Rental (excl VAT) Gross Rate / m²
From To Area (m²) Basic Rental
2019/03/01 2020/02/29 100 R 23 617,46 R 236,17
Additional Charges See Note 1
Commencement charge: Refuse – R4.60; Assessment Rates, Sanitation, CID,
Other Charges – R0.00
Key Clauses See Note 2
/AucorProperty www.aucorproperty.co.za 18Retail Centre with Blue Chip Tenants – Empangeni, KwaZulu-Natal
Lease Summaries
These lease summaries should not be relied upon in isolation and should be read in conjunction with the executed lease
documents, copies of which are available to bona fide prospective purchasers upon request.
_______________________________________________________________________________________________________
Lease 7
Tenant Ashmee Lutawan T/A AJ Liquor Store
Rentable Area Shop 5 – 105m²
Start Date 2017/04/01
Expiry Date 2020/03/31
Renewal Period N/A
Escalation Rate 10% per annum
Monthly Rental (excl VAT) From To Area (m²) Basic Rental Gross Rate / m²
2019/04/01 2020/03/31 105 R 23 170,69 R 220,67
Additional Charges See Note 1
Commencement charge: Refuse – R483.25; Assessment Rates, Sanitation,
CID, Other Charges – R0.00
Key Clauses See Note 2
_______________________________________________________________________________________________________
Lease 8
Tenant Mixshelf 1143 CC T/A Empangeni Build-It
Rentable Area Shop 6 – 500m²
Start Date 2015/10/01
Expiry Date 2020/09/30
Renewal Period N/A
Escalation Rate 8% per annum
Monthly Rental (excl VAT) Gross Rate / m²
From To Area (m²) Basic Rental
2018/10/01 2019/09/30 R 62 985,60 R 125,97
500
2019/10/01 2020/09/30 R 68 024,45 R 136,05
Additional Charges See Note 1
Commencement charge: Refuse – R1575.00; Assessment Rates, Sanitation,
CID, Other Charges – R0.00
Key Clauses See Note 2
/AucorProperty www.aucorproperty.co.za 19Retail Centre with Blue Chip Tenants – Empangeni, KwaZulu-Natal
Lease Summaries
These lease summaries should not be relied upon in isolation and should be read in conjunction with the executed lease
documents, copies of which are available to bona fide prospective purchasers upon request.
_______________________________________________________________________________________________________
Lease 9
Tenant Boxer Superstores(Pty) Ltd Limited
Rentable Area Shop 7 – 2,593m²
Start Date 2016/01/01
Expiry Date 2025/12/31
Renewal Period 2 x 5 Years
Note: The Second Renewal Period is currently active with the Addendum
allowing for another two renewal periods of 5 years each.
Escalation Rate 7% per annum
Monthly Rental (excl VAT) From To Area (m²) Basic Rental Gross Rate / m²
2019/01/01 2019/12/31 R 209 147,92 R 80,66
2020/01/01 2020/12/31 R 223 788,27 R 86,30
2021/01/01 2021/12/31 R 239 453,45 R 92,35
2022/01/01 2022/12/31 2593 R 256 215,19 R 98,81
2023/01/01 2023/12/31 R 274 150,25 R 105,73
2024/01/01 2024/12/31 R 293 340,77 R 113,13
2025/01/01 2025/12/31 R 313 874,63 R 121,05
Additional Charges Rates and taxes, water, electricity refuse removal CID, Other Charges – R0.00
Key Clauses ‘1.5. The Lessor and Lessee agree that the Lessee’s maintenance obligation
as determined by clause 12.1 of the Main Agreement will be applicable
during this Second Renewal Period until such time as the Lessee attends to
and completes maintenance and repair of the following exterior items:
1.5.1 clean gutters and replace round down pipes
1.5.2 close holes in IBR on side wall cladding
1.5.3 repair potholes in tar at rear of supermarket and taxi rank
area
1.5.4 replace all broken window gazing
1.5.5 paint plastered areas in front with 2 coats of white paint;
and
1.5.6 clearing of greenbelt alongside building’
/AucorProperty www.aucorproperty.co.za 20Retail Centre with Blue Chip Tenants – Empangeni, KwaZulu-Natal
Lease Summaries
These lease summaries should not be relied upon in isolation and should be read in conjunction with the executed lease
documents, copies of which are available to bona fide prospective purchasers upon request.
_______________________________________________________________________________________________________
Lease 10
Tenant Michael Robert French T/A MR French
Rentable Area Kiosk – 10m²
Start Date 2017/11/01
Expiry Date 2022/10/31
Renewal Period N/A
Escalation Rate 8% per annum
Monthly Rental (excl VAT) From To Area (m²) Basic Rental Gross Rate / m²
2018/11/01 2019/10/31 R 1 836,00 R 183,60
2019/11/01 2020/10/31 R 1 982,88 R 198,29
10
2020/11/01 2021/10/31 R 2 141,51 R 214,15
2021/11/01 2022/10/31 R 2 312,83 R 231,28
Additional Charges See Note 1
Commencement charge: Refuse – R46.02; Assessment Rates – R14.21;
Sanitation, CID, Other Charges – R0.00
Key Clauses See Note 2
_______________________________________________________________________________________________________
¹ All referenced Lease Agreements are further subjected to the following supplementary charges:
• Pro-Rata share of Rates, Taxes and City Levies, including pro-rata share of all increases OR a
commencement charge as per the executed lease document, with a pro-rata share of all
increases.
• Pro-rata/metered share of all consumption charges by metered consumption, including common
area, aircons and signage.
• Pro-rata share of third-party service fees and/or specialized waste removal services, if applicable.
²All referenced Lease Agreements are subject to the following clauses as per the executed lease
documents:
• Clause 27(1): ‘Should the landlord at any time during the currency of this lease sell the property of
which the leased premises dorm part, or should any of the holders of the shares in the landlord sell
such of those shares with the result that the purchaser/s thereof acquire/s control of the landlord,
then notwithstanding anything to the contrary elsewhere contained or implied herein, it is
specifically agreed that in any of the foregoing circumstances the tenant shall not be entitled to
elect not to be bound to the new landlord, and that this lease shall continue in full force and
effect.’
• Clause 27(2): ‘At the sole and exclusive election of the landlord, should the property of which the
premises form part be sold, then the landlord shall have the right to cancel this agreement by
giving the tenant 6 (six) months written notice of such cancellation.’
/AucorProperty www.aucorproperty.co.za 21Retail Centre with Blue Chip Tenants – Empangeni, KwaZulu-Natal
Rates Statement
July 2019 Billing Period
/AucorProperty www.aucorproperty.co.za 22Retail Centre with Blue Chip Tenants – Empangeni, KwaZulu-Natal
Surveyor General Diagram
S.G. No. 2023/1999
Road Servitude – S.G. No. A2938/1978
/AucorProperty www.aucorproperty.co.za 23Retail Centre with Blue Chip Tenants – Empangeni, KwaZulu-Natal
Surveyor General Diagram
S.G. No. 2938/1978
/AucorProperty www.aucorproperty.co.za 24Retail Centre with Blue Chip Tenants – Empangeni, KwaZulu-Natal
/AucorProperty www.aucorproperty.co.za 25You can also read
