6 Hermitage Terrace - Aucor
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Richmond (Milpark) Student Accommodation Investment Property
Johannesburg 82 Beds (Potential for 13 more)
6 Hermitage Terrace
Wednesday, 16 October 2019 @ 12h00
Houghton Golf Club – Osborn Road, Houghton, Johannesburg
Luke Rebelo | 072 493 2148 | LukeR@aucor.com
Version 2: 26 September 2019 NT
Student Accommodation Investment – Richmond (Milpark), Johannesburg
Index
Disclaimer, Auction Information and Terms & Conditions Page 3
Property Images Page 4
Executive Summary & Key Investment Highlights Page 6
General Information Page 7
Locality Information Page 8
Property Description Page 10
Financial Overview Page 13
Rates Statement Page 14
Zoning Information Page 16
Surveyor General Diagram Page 21
/AucorProperty www.aucorproperty.co.za 2
Student Accommodation Investment – Richmond (Milpark), Johannesburg
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 2 Business Days
Rules of auction and conditions of sale are available at www.aucorproperty.co.za/
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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
Student Accommodation Investment – Richmond (Milpark), Johannesburg
Property Images
Exterior Images
Boundary lines are not drawn to scale and are
drawn for illustrative purposes only.
/AucorProperty www.aucorproperty.co.za 4
Student Accommodation Investment – Richmond (Milpark), Johannesburg
Property Images
Interior Images
/AucorProperty www.aucorproperty.co.za 5
Student Accommodation Investment – Richmond (Milpark), Johannesburg
Executive Summary &
Key Investment Highlights
Street Address: 6 Hermitage Terrace - Richmond, Johannesburg
GPS Co-ordinates: -26.1810, 28.0143
Registered Land Size: 990m²
Zoning: Business 1' (See a copy of the zoning certificate attached to this brochure)
Assessment Rates: R 4,462.14/month - excluding consumption charges and city levies.
See Pages 11-12 for full details.
The improvements on the subject property comprise of a single, 3 storey
building purpose-built for student accommodation. A total of 41 rooms
Accommodation: are configured across the three floors with the rooms arranged in clusters
of 2 to 6 beds per unit, depending on the typology of the respective
apartments.
Depending on the timing of the transaction and the subsequent
Occupation: registration, the property may be sold with existing tenancies in place or
with vacant occupation upon registration of transfer.
Student accommodation with 82 beds and the potential for 13 further
beds.
Accredited by the University of Johannesburg for the third year running
(previously accredited in 2017 and 2018 calendar years respectively).
Located in the epicentre of the Johannesburg District, which
encompasses suburbs such as the popular Braamfontein, Auckland Park
and bohemian Melville.
Located in close proximity to a number of major tertiary institutions, such
as the University of Johannesburg (Kingsway and Bunting Road Campus)
Key Investment Highlights:
Wits University and Milpark Education located less than 100m from the
property.
Well-serviced by a variety of retail and leisure offerings, such as the newly
built Rand Steam Shopping Centre in Richmond and nearby Campus
Square Shopping Centre in Auckland Park, as well as neighborhood level
retail centres in neighboring Melville.
Investment property with strong income generating capacity, in a node
with a high demand for student accommodation.
The property will be sold inclusive of all operating assets (furniture and
equipment) currently on the premises.
Inclusions: An Invent ory List det ailing t he respect ive asset s included in t he sale of t he propert y
has been request ed and will be updat ed in a lat er version of t his brochure upon our
receipt t hereof.
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 6
Student Accommodation Investment – Richmond (Milpark), Johannesburg
General Information
Street Address 6 Hermitage Terrace - Richmond, Johannesburg
GPS Co-Ordinates -26.1810, 28.0143
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Title Deed Information
Title Deed Number T47561/2014
Registered Owner Erf 85 Newtown (Pty) Ltd
Title Deed Description Erf 269 Richmond, City of Johannesburg
Registered Land Size 990m²
Title Deed Conditions A copy of the title deed is on hand and will be made available
upon request thereof.
_____________________________________________________________________________________________
Municipality Information
Municipality City of Johannesburg Metropolitan Municipality
Rates Excluding consumption charges and city levies - based on the
Tax Invoice for the September 2019 billing period (see a copy
attached to this brochure for these and other charges).
2019 / 2020
Municipal 2019 / 2020 2019 / 2020
Rates Category Exclusion Rebate Monthly Rates
Valuation Tariff Annual Rates
(Annual ÷12)
Residential Full
R 7,260,000 N/A R 350,000 0.0077490 R 53,545.59 R 4,462.13
Title
Total property assessment rates payable per month R 4,462.13
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Zoning Information
Zoning 'Business 1' (See a copy of the zoning certificate attached to this
brochure)
Permitted Uses (per scheme*) 'Business purposes, shops, residential buildings, place of
Instruction, social halls, restaurant, car sales lot, motor
showrooms, showrooms, offices, public or private parking area,
Institutions, religious purposes, dwelling units, warehouse'
Height Restriction Zone A (0) - Three (3) Storeys
Coverage Variable between 50%/495m² and 40%/396m² depending on
height
Floor Area Ratio 1.2/1,188m² (Residential Purposes)
Density 200m²
Building Line 3m along the street boundaries
Parking As per scheme
*City of Johannesburg Land Use Scheme, 2018 - A copy of the scheme is available upon request.
/AucorProperty www.aucorproperty.co.za 7
Student Accommodation Investment – Richmond (Milpark), Johannesburg
Locality Information
Macro Locality
The subject property is situated in vibrant Richmond, a suburb embedded in a cluster of suburbs constituting
the most significant student district in Johannesburg, which is home to the likes of the University of
Johannesburg (Kingsway and Bunting Road Campuses), Wits University and Milpark Education. The district
encompasses the suburbs of Melville, Milpark, Auckland Park and Braamfontein and is characterised by an
energetic feel, charged by the young demographic drawn to the area by the melange of tertiary
institutions and corporate entities located in the node. The district features a variety of residential
developments catering to the high demand for accommodation in the area and is primed for further
investment due to the widely reported shortage of adequate student accommodation. The node is well-
serviced by a variety of retail and leisure offerings including nearby Campus Square and the plethora of
trendy restaurants and bars on 7th Avenue in Melville, which contribute to the bohemian feel of the broader
district. GPS coordinates for the site are as follows: -26.1810, 28.0143.
Melville
Parktown
Auckland Park
Johannesburg
Image Data: Google, AfriGIS (Pty) Ltd, DigitalGlobe N
/AucorProperty www.aucorproperty.co.za 8
Student Accommodation Investment – Richmond (Milpark), Johannesburg
Locality Information
Micro Locality
Road
Image Data: Google, AfriGIS (Pty) Ltd, DigitalGlobe
Barry Hertzog Ave
/AucorProperty www.aucorproperty.co.za 9
A portion of the property bordering the southern
boundary of the property encroaches onto the subject
property. However, there are no permanent structures
within this area.
/AucorProperty
Approximate Boundaries
Property Description
www.aucorproperty.co.za
Student Accommodation Investment – Richmond (Milpark), Johannesburg
Image Data: City of Johannesburg GIS N
10Student Accommodation Investment – Richmond (Milpark), Johannesburg
Property Description
Accommodation The improvements on the subject property comprise of a single, 3 storey building
purpose-built for student accommodation. A total of 41 apartments are configured
across the three floors with the rooms arranged in clusters of 2 to 6 beds per room,
depending on the typology of the respective apartments.
The apartment typologies on offer in the building can be summarized as follows:
8 x 76m² Units (6 Beds per unit)
2 x 60m² Units (4 Beds per unit)
13 x 36m² (2 Beds per unit)
Each cluster of beds is arranged around shared living areas with apartment
offering a communal kitchen and bathroom.
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Additional features Additional property features include the following:
Four plate stove in each room
Water reservoir (Jojo tank – capacity to be confirmed) forming a part of the
water reticulation system installed on the property
Hot water tank providing hot water to the respective units also forms a part
of the water reticulation system employed on the property
Smoke detectors installed (functionality unknown)
Fire hoses on each floor, connected to a water tank located on the 3 rd floor
Control room for the WiFisupply on each floor
Uncapped 10MB fibre line installed, which is allocated to each unit and
included in rental
Controlled pedestrian access point i.e. turnstile gate installed.
Caretaker’s Quarters (30m²)
Laundry Room (30m²)
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Construction The buildings are constructed of face brick walls under IBR roof sheets, with
translucent panels in places to allow for additional natural light (affects only the 3 rd
floor).
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Finishes and Features Floor coverings in the common areas and the respective apartments feature
ceramic tiles throughout under concrete ceiling finishes on each floor. Internal
walls are generally rendered and painted.
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Utilities Utility services to the property are supplied by the City of Johannesburg. Water and
electricity are not recovered, as is required to comply with the University of
Johannesburg’s accreditation regulations.
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Perimeter and Yard The property is enclosed by means of steel palisade fencing throughout. The yard is
partially concrete paved with parking available in the stilt parking area beneath
the first floor. The property is accessible from Hermitage Road by means of a sliding
steel gate with provision for pedestrian access by way of a turnstile gate and an
additional pedestrian gate, as well.
/AucorProperty www.aucorproperty.co.za 11Student Accommodation Investment – Richmond (Milpark), Johannesburg
Property Description
Inclusions The property will be sold on a “lock, stock and barrel” basis i.e. inclusive of all
operating assets (furniture and equipment) of the business currently on the
premises.
An Inventory List detailing the respective assets included in the sale of the property has been
requested and will be updated in a later version of this brochure upon our receipt thereof.
________________________________________________________________________________________________________
Occupation Depending on the timing of the transaction and the subsequent registration, the
property may be sold with existing tenancies in place or with vacant occupation
upon registration of transfer.
________________________________________________________________________________________________________
Condition The buildings require repairs and maintenance. No structural survey of the buildings
has been conducted nor have tests or inspections of the service installations been
arranged, but these appear to be in working order.
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 12Student Accommodation Investment – Richmond (Milpark), Johannesburg
Financial Overview
The information summarised below is as supplied by the Seller.
Accommodation Profile
8 x 76m² Units (48 Beds)
2 x 60m² Units (8 beds)
13 x 36m² (26 Beds)
The apartments have been configured to accommodate 2 Beds per apartment
Total Beds - 82 (potentail for an additional 13 beds to be added)
R
Rental
NSFAS 63 X R3,276 R 206,388.00
Cash Tenants 16 x R3,000 R 48,000.00
GROSS INCOME R 254,388.00
OPERATING EXPENSES
Rates R 4,200.00
Water R 24,000.00
Electricity R 24,000.00
Insurance R 2,400.00
Security R 10,000.00
Caretaker R 2,500.00
Cleaner R 2,500.00
Fundi Fee R 12,400.00
TOTAL EXPENSES R 82,000.00
NET PROFIT / (LOSS) R 172,388.00
Note;
1. The operating expenses, particularly in respect of utilities consumption charges, are
based on estimates derived from previous operating periods.
2. The list of expenses is by no means exhaustive and is not intended to constitute a
catch-all analysis of all the expenses that may be incurred in the ordinary course of
business.
Special Not e - The rent al informat ion in t his brochure is not int ended t o const it ut e specific advice nor
t o subst it ut e for a due diligence exercise, and accordingly should not be relied upon t o make a
purchase decision. Prospect ive purchasers should make t heir own enquiries and invest igat ion t o
confirm pert inent informat ion and forecast s, and should furt her seek appropriat e independent
professional advice in relat ion t heret o from suit ably qualified professionals t o complet e t heir own due
diligence in relat ion t o t he Propert y.
/AucorProperty www.aucorproperty.co.za 13Student Accommodation Investment – Richmond (Milpark), Johannesburg
Rates Statement
Note: Amounts in arrears are for the Seller’s account.
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Rates Statement
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Zoning Information
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Zoning Information
/AucorProperty www.aucorproperty.co.za 17Student Accommodation Investment – Richmond (Milpark), Johannesburg
Zoning Information
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Zoning Information
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Zoning Information
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Surveyor General Diagram
Consolidation Diagram – S.G No. A8091/2006
/AucorProperty www.aucorproperty.co.za 21Student Accommodation Investment – Richmond (Milpark), Johannesburg
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