Cnr Prospecton & Joyner Roads - Aucor
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Johannesburg CBD
Ridder Street
Prospecton Neat Commercial Office and Warehouse Facility
Isipingo (Durban) GLA – 1,528m² (Seller Supplied)
Cnr Prospecton & Joyner Roads
Wednesday, 4 December 2019 @ 12h00
Houghton Golf Club – Osborn Road, Houghton, Johannesburg
Warren Aronson | 082 529 1020 | WarrenA@aucor.com
Draft Version: 11 November 2019 NdJ
Mixed Use Investment Opportunity – Prospecton, Isipingo (Durban)
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
Building Plan Page 13
Rent Roll Page 14
Lease Summaries Page 15
Projected Gross Annual Income Page 17
Rates Statement Page 18
General Plan Diagram Page 21
Surveyor General Diagram Page 22
/AucorProperty www.aucorproperty.co.za 2
Mixed Use Investment Opportunity – Prospecton, Isipingo (Durban)
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 10 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
Mixed Use Investment Opportunity – Prospecton, Isipingo (Durban)
Property Images
Aerial Images
Boundary lines are not to scale and are drawn for
illustrative purposes only.
Boundary lines are not to scale and are drawn for
illustrative purposes only.
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Mixed Use Investment Opportunity – Prospecton, Isipingo (Durban)
Property Images
Interior & Exterior Images
/AucorProperty www.aucorproperty.co.za 5
Mixed Use Investment Opportunity – Prospecton, Isipingo (Durban)
Executive Summary &
Key Investment Highlights
Cnr Prospecton & Joyner Roads - Prospecton, I sipingo
Street Address:
(Durban)
GPS Coordinates: -28.0028, 30.9299
Zoning: To be verified
R24,305.20 /month (excluding consumption charges and city
Assessment Rates:
levies)
See from page 11 for full accommodation details
The improv ements on site comprise of a mixed-use building
w ith a rectangular footprint. The building has been internally
Accommodation: div ided and configured into a w estern section that hosts an
industrial type component (w arehouse) and an eastern
component that offers a range of ground floor, double
v olume, as w ell as first-floor office spaces.
Area Description GLA (± m²)
First Floor
Unit 1001 147
Unit 1002 126
Unit 1003 65
Unit 1004 50
Ground Floor
Approx. Total Gross Lettable Area: Unit 0001 (including mezzanine) 173
Unit 0002 (including mezzanine) 173
Unit 0003 388
Unit 0004 394
Unit 0005 12
Total Approximate Gross Lettable Area 1 528
Notes
The Gross Lettable Area (GLA) is Seller supplied.
The property is multi-let in terms of ongoing lease agreements.
Occupation:
See from page 14 for details.
Multi-purpose building offering office components as w ell as a
w arehouse component.
Flexible internal layout in each unit allow ing for a v ariety of
Key Investment Highlights: uses, w ith excellent eav es height.
Prime corner position along tw o major roads, Prospecton and
Joyner Roads, w hich links the property to the greater
Ethekw ini area.
Ease of access to the nearby N2-highw ay v ia Joyner Road,
w ith the on-and offramps located a mere ±200m from the site.
I ncome generating inv estment opportunity w ith a projected
Gross Annual I ncome (GAI ) of ±R1,3million (basic rentals only).
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
Mixed Use Investment Opportunity – Prospecton, Isipingo (Durban)
General Information
Street Address Cnr Prospecton & Joyner Roads - Prospecton, Isipingo (Durban)
GPS Coordinates -28.0028, 30.9299
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Title Deed Information
Title Deed Number T3633/2016
Registered Owner Cumulative Properties Ltd.
Title Deed Description Remaining Extent of Erf 2318, Isipingo Extension 12
Registered Land Size 1,976m²
Title Deed Conditions A copy of the Title Deed is on hand and will be made available
to prospective purchasers upon request.
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Municipality Information
Municipality eThekwini Metropolitan Municipality
Rates and Levies Excluding consumption charges and city levies – Based on the
tax invoice for the August 2019 billing period received from the
Municipality (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 10 770 000 N/A N/A 0,0270810 R 291 662,40 R 24 305,20
Commercial
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Zoning Information
Zoning To be verified
/AucorProperty www.aucorproperty.co.za 7
Mixed Use Investment Opportunity – Prospecton, Isipingo (Durban)
Locality Information
Macro Locality
The subject property is situated in an established, bustling industrial suburb of Isipingo (Durban), known as
Prospecton. Prospecton is situated approximately 19km south of Durban and forms part of the eThekwini
Metropolitan Municipality and constitutes one of the main industrial suburbs in the node. It is characterised
by a number of small to large sized enterprises engaged in a variety of light to heavy industrial activities,
being the location of one of South Africa's largest automobile assembly plants, Toyota, as well as SAB
Prospecton Brewery, all of which are located in very close proximity to the subject site. Neighbouring
suburbs include Amanzimtoti and Umlazi, and the disused Durban International Airport is situated on the
fringes of the Isipingo Beach. The suburb and site are well-serviced by a network of major and secondary
roads, with ease of access to both N2 and M4 highways, linking the locality to the greater Ethekwini
Metropolitan region as well as to Durban city. The site, advantageously situated along Joyner Rd, provides
ease of access to the N2-highway with the Joyner Rd on-and offramps situated a mere ±200m from the
subject site. All major municipal services are available in the area.
GPS co-ordinates for the property is as follows: -30.0028, 30.9299.
Image Data: Google, AfriGIS (Pty) Ltd, DigitalGlobe
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/AucorProperty www.aucorproperty.co.za 8
Mixed Use Investment Opportunity – Prospecton, Isipingo (Durban)
Locality Information
Micro Locality
Image Data: Google, AfriGIS (Pty) Ltd, DigitalGlobe
/AucorProperty www.aucorproperty.co.za 9
Note: It appears that some of the improvements transgress on the
neighbouring property to the north. It is advised that a professional
land surveyor be appointed to determine exact boundaries.
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/AucorProperty
Approximate Boundaries
Property Description
Mixed Use Investment Opportunity – Prospecton, Isipingo (Durban)
www.aucorproperty.co.za
Image Data: Chief Surveyor General Spatial Data
10Mixed Use Investment Opportunity – Prospecton, Isipingo (Durban)
Property Description
Accommodation See approved building plans on page 13.
The improvements on site comprise of a mixed-use building with a rectangular
footprint. The building has been internally divided and configured into a western
section that hosts an industrial type component (warehouse) and an eastern
component that offers a range of ground floor, double volume, as well as first-floor
office spaces.
The warehouse component (western section) features its own gated entrance
from the service street (Prospecton Place) stemming from and running parallel to
Prospecton Road. It includes an office component, comprising a ground floor
reception area with a kitchen and ablution facilities (including a shower) and a
first-floor office with a storeroom. An additional, stand-alone drywalled receiving
office has been constructed on ground floor level.
The office component (eastern section) currently features three (3) ground floor
units, two of which includes a first-floor mezzanine component. All three units face
Prospecton Road and each includes a tea kitchen and ablution facilities. The
building offers an additional first-floor office section with separate access via an
external staircase along the northern façade of the building (fronting Joyner Rd),
as well as a second entrance opening onto an internal staircase located along the
southern façade of the building.
This section has been configured to host two (2) offices with the large remaining
open plan floor area currently partitioned by means of drywalling to create two (2)
additional office spaces.
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Additional features The property boasts the following additional features:
• Prime corner stand with two (2) entrances
• Warehouse eaves height of 5.5m-6.7m
• Roller shutter door (4.5m x 4.5m) providing distribution access to the
warehouse from Prospecton Place
• Insulated ceilings in warehouse
• Split-unit air-conditioning throughout
• Safety features and equipment including alarm systems, various burglar
and steel bars, safety gates and fire extinguishers
• Four (4) ATM’s from three (3) different banking institutions on site
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Construction The office component is constructed of large glass fronts and exposed face brick
with concrete insets framing most windows and doors. The warehouse is
constructed of a steel superstructure with rendered and painted brick wall
columns and IBR sheets, all under corrugated iron roofing.
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Fixtures and Finishes The finishes in the offices are standard and comprise of ceramic tiled and
carpeted floors under suspended ceiling boards in the office sections, while the
warehouse floor features a smooth concrete finish under an insulated ceiling.
Internal walls/partitioning is by way of a combination of dry walling and rendered
and painted brick walls.
/AucorProperty www.aucorproperty.co.za 11Mixed Use Investment Opportunity – Prospecton, Isipingo (Durban)
Property Description
Utilities According to the rates account, all utilities (including water and sanitation,
sewage disposal and electricity) are supplied by the eThekwini Local Municipality
and recovered from the tenants on a monthly basis.
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Gross Lettable Area Area Description GLA (± m²)
First Floor
Unit 1001 147
Unit 1002 126
Unit 1003 65
Unit 1004 50
Ground Floor
Unit 0001 (including mezzanine) 173
Unit 0002 (including mezzanine) 173
Unit 0003 388
Unit 0004 394
Unit 0005 12
Total Approximate Gross Lettable Area 1 528
Notes
The Gross Lettable Area (GLA) is Seller supplied.
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Perimeter and Yard The unimproved yard is predominantly asphalt covered with interlock brick paved
walkways as well as some grasses in places. The property is fully enclosed by way
of steel palisade fencing throughout, fitted with two (2) sliding access gates
located in Prospecton Road and Prospecton Place (service road) respectively.
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Parking 3x open parking bays (Prospecton Place); 22x open parking bays (Prospecton
Road)
Total open parking bays provided: ±25.
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Occupation The property is multi-let in terms of ongoing lease agreements. See from page 14
for details.
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Condition The building offers neat curb appeal and is considered to be in generally good
condition with ongoing repairs and maintenance required. No structural survey of
the buildings has been undertaken nor have tests or inspections of service
installations been arranged. There has been no environmental survey/audit to
establish the existence or extent of any environmental contamination.
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 12Mixed Use Investment Opportunity – Prospecton, Isipingo (Durban)
Building Plan
Approved Ground Floor Plan & Site Layout
/AucorProperty www.aucorproperty.co.za 13Area
Basic Rental Refuse
Unit Item / Tenant Let Rates & Taxes Water Electricity Sewerage Total Gross Rate /m²
(Monthly) Removal
(±m²)
1001 Stratostaff (Pty) Ltd 147 R 19 378,06 R 589,19 R 620,54 R 2 656,34 R 297,58 R 405,03 R 23 946,74 R 131,82
Hugh Bernard Tower t/a Rilasol (Pty)
1002 126 R 15 025,79 R 1 349,36 R 588,05 R 1 557,46 R 289,67 R 347,14 R 19 157,47 R 119,25
Ltd
1003 Vacant 65 R - R - R - R - R - R - R - R -
1004 Vacant 50 R - R - R - R - R - R - R - R -
0001 Nedbank Ltd 173 R 35 985,38 R 1 943,63 R 848,71 R - R 307,37 R 476,67 R 39 561,76 R 208,01
Rent Roll
0002 Capitec Bank Ltd 173 R 25 921,99 R 3 271,44 R 660,77 R 4 244,23 R 307,37 R 476,67 R 34 882,47 R 149,84
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0003 Vacant 388,1 R - R - R - R - R - R - R - R -
0004 Vacant 394 R - R - R - R - R - R - R - R -
0005 ABSA Bank Ltd 11,9 R 7 000,00 R - R - R - R - R - R 7 000,00 R 588,24
1 528 R 103 311,22 R 7 153,62 R 2 718,07 R 8 458,03 R 1 201,99 R 1 705,51 R 124 548,44
As at November 2019
Property Totals:
Occupied Lettable Area 631
Vacant Lettable Area 897
Total GLA 1 528
Current occupancy rate 41%
Notes/Assumptions
1. Based on a combination of the Rent Roll and Tenancy Schedule as supplied by the Seller for the October 2019 and November 2019 billing periods, respectively.
2. All rental information presented above is exclusive of VAT.
Mixed Use Investment Opportunity – Prospecton, Isipingo (Durban)
3. Rental Information excludes balances brought forward, deposit charges and similar once-off items billed during this period.
4. Amounts included above are totals where more than one charge is listed to a single utility.
5. Rates & Taxes charges are as per the Seller supplied Rent Roll for the October 2019 period and appears to include back charges from July 2019.
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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.
14Mixed Use Investment Opportunity – Prospecton, Isipingo (Durban)
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.
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Lease 1 – First Addendum
Tenant Hugh Bernard Tower t/a Rilasol (Pty) Ltd
Rentable Area Office 1002 (First Floor) – 126m²
Original Lease Period 1 July 2016 – 30 June 2019
Start Date (current lease) 1 July 2019
Expiry Date (current lease) 30 June 2022
Renewal Period Not specified
Escalation Rate 8% per annum
Monthly Rental (excl. VAT) From To Area (m²) Basic Rental Gross Rate / m²
2019/07/01 2020/06/31 R 15 025,79 R 119,25
2020/07/01 2021/06/31 126 R 16 227,85 R 128,79
2021/07/01 2022/06/31 R 17 526,08 R 139,10
Other Charges Clause 1.2 - The tenant shall be liable for the costs of electricity and water
consumed on the premises (pro-rata share where such services are
separately metered), pro-rata share of rates increases and local authority
charges (refuse removal, sewerage).
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Lease 2 – Fifth Addendum
Tenant Nedbank Ltd.
Rentable Area Shop 1 (Ground Floor) – 173m²
Original Lease Period 1 May 2007 – 30 April 2012
Start Date (current lease) 1 May 2017
Expiry Date (current lease) 30 April 2019*
Renewal Period Not specified
Escalation Rate 7% per annum
Monthly Rental (excl. VAT) R35,985.38 per month**
Other Charges Not specified on addendum document on hand; however, based on the
Seller supplied Rent Roll and Tenancy Schedule for the October 2019 and
November 2019 billing periods, respectively, it appears that the tenant
contributes towards the municipal and utility charges levied upon the
building and site on a pro-rata basis.
Notes *The addendum to the lease expired on 30 April 2019. We have not been
supplied with a sixth addendum, however the tenancy schedule and rent roll
supplied by the Seller indicates that the tenant will remain until 30 April 2020.
**The rental is as per the Seller supplied Rent Roll and Tenancy Schedule for
the October 2019 and November 2019 billing periods respectively. The
amount indicates an escalation of 8% as opposed to the 7% indicated in the
lease document on hand (fifth addendum).
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/AucorProperty www.aucorproperty.co.za 15Mixed Use Investment Opportunity – Prospecton, Isipingo (Durban)
Lease Summaries
Lease 3
Tenant Capitec Bank Ltd.
Rentable Area Shop 2 (Ground Floor) – 173m²
Start Date 1 January 2017
Expiry Date 31 December 2019
Option Period 1 January 2020 – 31 December 2025*
Escalation Rate 7% per annum
Monthly Rental (excl. VAT) R25,921.99 per month
Other Charges Schedule, Clause 9.3 - The tenant shall contribute towards the municipal and
utility charges levied upon the building and site.
Key Clauses Schedule, Clause 11 – Use of Leased Premises: Banking and/or ancillary
financial services only.
Note *As per the Seller Supplied Tenancy Schedule for the November 2019 period.
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Lease 4
Tenant Stratostaff (Pty) Ltd
Rentable Area Unit 1001 (First Floor) – 147m²
Start Date 1 December 2018
Expiry Date 30 November 2020
Renewal Period Not specified
Escalation Rate 8.5% per annum
Monthly Rental (excl. VAT) From To Area (m²) Basic Rental Gross Rate / m²
2018/12/01 2019/11/30 R 19 378,06 R 131,82
147
2019/12/01 2020/11/30 R 21 025,20 R 143,03
Other Charges Based on the Seller supplied Rent Roll and Tenancy Schedule for the
October 2019 and November 2019 billing periods, respectively, it appears
that the tenant contributes towards the municipal and utility charges levied
upon the building and site on a pro-rata basis.
Note The relevant lease document was outstanding by the date of compiling this
summary – a copy will be made available upon our receipt thereof.
Information as summarized above is based on the Seller supplied Rent Roll
and Tenancy Schedule for the October 2019 and November 2019 billing
periods, respectively.
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Lease 5
Tenant ABSA Bank Ltd.
Rentable Area 2x ATM’s – 11.9m²
Start Date 1 November 2018
Expiry Date 31 October 2021
Renewal Period Not specified
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 7 000,00 R 588,24
2019/11/01 2020/10/31 11,9 R 7 560,00 R 635,29
2020/11/01 2021/10/31 R 8 164,80 R 686,12
Note The relevant lease document was outstanding by the date of compiling this
summary – a copy will be made available upon our receipt thereof.
Information as summarized above is based on the Seller supplied Rent Roll
and Tenancy Schedule for the October 2019 and November 2019 billing
periods, respectively.
/AucorProperty www.aucorproperty.co.za 16Projected Gross Annual Income - February 2020 to January 2021
Approx. Area /
Unit Item / Tenant Expiry Date Esc Basic Rent Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Total
Units
1001 Stratostaff (Pty) Ltd 2020/11/30 8,5% R 131,82 147 R 21 025 R 21 025 R 21 025 R 21 025 R 21 025 R 21 025 R 21 025 R 21 025 R 21 025 R 21 025 R 22 812 R 22 812 R 255 877
1002 Hugh Bernard Tower t/a Rilasol (Pty) Ltd 2022/06/30 8% R 119,25 126 R 15 026 R 15 026 R 15 026 R 15 026 R 15 026 R 16 228 R 16 228 R 16 228 R 16 228 R 16 228 R 16 228 R 16 228 R 188 724
0001 Nedbank Ltd 2020/04/30 7% R 208,01 173 R 35 985 R 35 985 R 35 985 R 38 504 R 38 504 R 38 504 R 38 504 R 38 504 R 38 504 R 38 504 R 38 504 R 38 504 R 454 495
0002 Capitec Bank Ltd 2025/12/31 7% R 149,84 173 R 27 737 R 27 737 R 27 737 R 27 737 R 27 737 R 27 737 R 27 737 R 27 737 R 27 737 R 27 737 R 27 737 R 29 678 R 334 780
0005 ABSA Bank Ltd 2021/10/31 8% R 588,24 11,9 R 7 000 R 7 000 R 7 000 R 7 000 R 7 000 R 7 000 R 7 000 R 7 000 R 7 000 R 7 560 R 7 560 R 7 560 R 85 680
Total Gross Rental Income R 106 773 R 106 773 R 106 773 R 109 292 R 109 292 R 110 494 R 110 494 R 110 494 R 110 494 R 111 054 R 112 841 R 114 783 R 1 319 556
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Notes/Assumptions:
1. The Basic rentals, Escalation rates and the approximate areas of the various units are as extracted from the lease agreements and the relevant addendums where applicable, as well as additional documentation as supplied by the Seller.
2. All amounts presented above are exclusive of VAT.
3. Where lease agreements expire within the projected period, the renewal option periods (as indicated on the Seller supplied Tenancy Schedule for the November 2019 period) has been taken into consideration, assuming such renewal agreements will
be signed. Where no such indication is given, it is assumed that lease agreements will continue on the original lease specifications.
4. The landlord is recovering all utilities, as well as the increase in the property assessment rates from each tenant.
5. For the purposes of this projection, only tenanted units have been included.
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.
Date: 2019/11/10 E & OE
Mixed Use Investment Opportunity – Prospecton, Isipingo (Durban)
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Projected Gross Annual Income
17Mixed Use Investment Opportunity – Prospecton, Isipingo (Durban)
Rates Statement
/AucorProperty www.aucorproperty.co.za 18Mixed Use Investment Opportunity – Prospecton, Isipingo (Durban)
Rates Statement
/AucorProperty www.aucorproperty.co.za 19Mixed Use Investment Opportunity – Prospecton, Isipingo (Durban)
Rates Statement
/AucorProperty www.aucorproperty.co.za 20Mixed Use Investment Opportunity – Prospecton, Isipingo (Durban)
General Plan Diagram
S.G. No. 1314/1970
Subdivided portion. See Subdivision Diagram on
following page.
/AucorProperty www.aucorproperty.co.za 21Mixed Use Investment Opportunity – Prospecton, Isipingo (Durban)
Surveyor General Diagram
S.G. No. 4046/1986 - Subdivision Diagram
/AucorProperty www.aucorproperty.co.za 22Mixed Use Investment Opportunity – Prospecton, Isipingo (Durban)
Sectional Plan Diagram
S.G. No. 4046/1986 - Subdivision Diagram - Note
/AucorProperty www.aucorproperty.co.za 23Mixed Use Investment Opportunity – Prospecton, Isipingo (Durban)
/AucorProperty www.aucorproperty.co.za 24You can also read
