THE MALL SHOPPING CENTRE - QUEENSTOWN

Size: px

Start display at page:

Download "THE MALL SHOPPING CENTRE - QUEENSTOWN"

Lee Knight
6 years ago
Views:

PROPERTY INFORMATION THE MALL SHOPPING CENTRE - QUEENSTOWN Shopping Centre on Auction Brewery Lane, Queenstown TUESDAY 9 JUNE 2015 @ 12H00

1 PROPERTY INFORMATION THE MALL SHOPPING CENTRE - QUEENSTOWN Shopping Centre on Auction Brewery Lane, Queenstown TUESDAY 9 JUNE 12H00 The Wanderers Club AUCTIONEER: Ismail Hendricks AGENT: Norman Raad / nraad@broll.com Marc Saks / msaks@broll.com 1

2 TABLE OF CONTENTS 1. Property Summary 4 a. Locality (see Annexure A) 4 b. Legal Information (see Annexures B and C) 4 c. Town Panning (see Annexure D) 4 2. Locational Analysis 5 3. The Development 6 4. Notes 32 ANNEXURES Annexure A: Locality 7 Annexure B: Title Deed 9 Annexure C: Notarial Deed of Servitude 15 Annexure D: SG Diagrams 21 Annexure E: Zoning Certificate 23 Annexure F: Lease Extract 24 Annexure G: Tenant Layout 28 Annexure H: Gallery 29 Annexure I: Tenancy Schedule 30 Annexure J: Income Statement 31 2 TERMS & CONDITIONS: Bidders must register and bring ID, proof of residence (FICA) and letter of authority to sign on behalf of a juristic entity. Rules of auction are available at and at our offices. The auction is conducted in terms of the regulations relating to auctions contained in The Consumer Protection Act 68 of 2008 and notice is given that all sales are subject to a minimum reserve unless otherwise stated. DISCLAIMER: Whilst all reasonable care has been taken to obtain the correct information, neither Broll Auctions and Sales (Pty) Ltd, nor any of its subsidiaries and related companies, nor the Sellers, guarantee the correctness of the information, and none of the aforementioned 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 supplied, whether due to the negligence or otherwise of Broll Auctions and Sales and its subsidiaries and related companied, the Seller, or any other person.

3 OPPORTUNITY SUMMARY Description A local retail centre known as The Mall Shopping Centre situated on the busy corner of Brewery Lane and the N6 in Queenstown, Eastern Cape. The anchor tenant is Pick n Pay, with other tenants including large multi-national groups such as Pep and Standard Bank. On-site parking can accommodate over 400 bays. Erf Size ha Zoning Business 1 GLA Total 7,529.94m 2 GLA Tenanted 7,231.41m 2 (96%) GLA Vacant m 2 (4%) Main Tenants Tenant Area m² Lease Expiry Monthly Rent (April 2015) Rent/m² Pick n Pay 3, Apr-2017 R191,262 R56.67 Pick n Pay Clothing Nov-2018 R22,929 R72.33 Pick n Pay Liquor Aug-2019 R20,670 R Tiekams Audio & Video 1, Mar-2018 R86,710 R69.98 Pep Aug-2017 R21,735 R69.89 Standard Bank Dec-2016 R13,473 R81.16 Income Statement Projected For Year Ended 30 Sep 2016 Gross Income R10,063,555 Less Operating Expenses (R3,633,337) Net Income R6,430,218 3

4 PROPERTY SUMMARY 1.1 Locality (see Annexure A) Property Address: 9 Brewery Lane (corner of Brewery Lane and N6) Suburb and City: Queenstown Local Authority: Lukhanji Local Municipality Province: Eastern Cape 1.2 Legal Information (see Annexures B and C) Erf number(s): RE of Erf 2073 Township: Queenstown Erf Extent: ha Title Deed Number: T3192/2011 Registered Owner: Fortress Income 2 (Pty) Ltd 1.3 Town Panning (see Annexure D) The property is zoned Business 1 in terms of the Randburg Town Planning Scheme, subject to the following conditions: Zoning: Business 1 Coverage: 80% F.A.R: 4 Parking: 4 per 100m² Building line: 0m 4

5 2. Locational Analysis The Mall Shopping Centre (hereinafter referred to as the property) is located on the corner of Brewery Lane and the N6 in Queenstown in the Eastern Cape. The N6 experiences high traffic volumes and offers good exposure to the property. Queenstown is situated in the middle of the Eastern Cape Province and serves as the commercial, administrative and educational centre of the prosperous surrounding farming district. The property is situated on the eastern side of the town, and is in very close proximity to the Queens Casino & Hotel and Life Queenstown Private Hospital. The surrounding area offers a mix of similar retail centres, commercial, offices and well established residential. The property enjoys all municipal services such as tarred roads, water, sewerage and electricity. All municipal services are available and appear to be functional. GPS co-ordinates for the property are: ,

6 3. The Development The property offers a single storey building. The ground floor comprises various retailers with a diverse tenant mix including a supermarket, an electronic store, clothing stores, banking facilities, hair salons, a homeware store, a restaurant and many other retail shops. Each shop has been customised for its own use. The current occupancy level stands at 96 % with Pick n Pay being the anchor tenant and a number of national and local tenants occupying the remaining space. The stand is south west facing onto the N6 and has direct exposure onto Brewery Lane, which links up with the N6 and other routes. The stand is improved with a single storey retail building. The building is constructed by means of plastered brick with IBR sheeting roof with roof tiles and roof trusses. The floor consists of good quality ceramic tiles. An entrance along Brewery Lane leads to an open parking area with approximately 400 parking bays and 12 covered parking bays. A car wash is situated separately to the north-west of the main entrance. We have not undertaken a structural survey of the above-described improvements or finishes, nor have we arranged for tests or inspections to be carried out on any of the service installations. Description of Improvements Primary Use: Roof: Ceilings: Walls: Floor Coverings: Conditions: Retail IBR sheeting/tiles with trusses Suspended ceilings Brick with plaster and Bulkheads Ceramic tiles The buildings/structure is in a fair condition 6

7 ANNEXURE A ANNEXURE A LOCALITY 7

8 8

9 ANNEXURE B TITLE DEED 9

10 10

11 11

12 12

13 13

14 14

15 ANNEXURE C NOTARIAL DEED OF SERVITUDE 15

16 16

17 17

18 18

19 19

20 20

21 ANNEXURE D SG DIAGRAM(S) 21

22 22

23 ANNEXURE E ZONING CERTIFICATE 23

24 ANNEXURE F LEASE EXTRACT PICK N PAY 24

25 25

26 26

27 27

28 ANNEXURE G TENANT LAYOUT 28

29 ANNEXURE H GALLERY PICK N PAY ENTRANCE PARKADE VIEW SIDE VIEW SIDE PARKING AREA INTERIOR, ABSA TELLER AND PICK N PAY CLOTHING INTERIOR, BALI HOMES FRONTAGE 29

30 ANNEXURE I TENANCY SCHEDULE Apr-15 No Tenants Unit Use Description Parking Area m² Lease Start Lease Expiry Duration Turnover Rent * Esc. Rent / m² Rent Parking 1 Corpcio 498 CC t/a Luv-Le Boutique S01 Retail Boutique Fashion Jul Jun-15 2 yrs, 0 mths 0.00% 8.0% R R 4, R Vacant S02 Retail % R R 13, R T rade Skills 114 (pty) Ltd t/a Pick n Pay Clothing S05/06 Retail Clothing store Dec Nov-18 5 yrs, 0 mths 0.00% 8.0% R R 22, R T rade Skills 114 (Pty) Ltd t/a Pick n Pay Liquor S07,8,9 Retail Liquor store Sep Aug-19 5 yrs, 0 mths 1.75% 8.0% R R 20, R Bravospan 182 CC t/a Haircraft Unisex Salon & Nail Care S10 Retail Hair salon Sep Nov-14 3 yrs, 3 mths 0.00% 7.0% R R 5, R C Viljoen t/a Lekkerland Sweets S11/12 Retail Sweet shop Oct Sep-17 5 yrs, 0 mths 0.00% 8.0% R R 10, R T inus Grobler Kitchens and Cupboards S13 & PB7 Retail Kitchen and furniture shop Dec Nov-15 3 yrs, 0 mths 0.00% 8.0% R R 8, R Mr D Akumiah t/a Looks of Africa S14 Retail Curio shop Aug Jul-19 5 yrs, 0 mths 0.00% 8.0% R R 5, R Corpcio 2077 CC - Bali Homes S15,16 Retail Home Décor Nov Oct-17 3 yrs, 0 mths 0.00% 8.0% R R 11, R Vacant S17A Retail Dec Nov-13 0 yrs, 0 mths 0.0% R R 6, R Vacant S17B Retail Mar Feb-14 2 yrs, 0 mths 9.0% R R 9, R S M Mariott t/a Squeeky Clean S18 Retail Cleaning products Aug Jul-15 3 yrs, 0 mths 0.00% 8.0% R R 10, R 0.00 South African Post Office t/a Post Office - 13 Lease Expired on 31 Oct staying on monthly until 30 Sep 2015 S19 Retail Post office Oct Sep-15 4 yrs, 0 mths 0.00% 8.0% R R 22, R Melbro Retail t/a The Crazy Store S20-22 Retail Discount variety shop Sep Aug-16 3 yrs, 0 mths 6.00% 8.0% R R 7, R Mc Ewen C t/a Craig's Pool Shop S23 Retail Pool shop and serices Jul Jun-15 3 yrs, 0 mths 0.00% 8.0% R R 4, R Khadim Fashion S24 Retail Fashion retailer Mar Feb-19 5 yrs, 0 mths 0.00% 8.0% R R 5, R Pepkor Retail (Pty) Ltd t/a PEP S25,26,27 Retail Discount clothing retailer Sep Aug-17 3 yrs, 0 mths 1.75% 7.0% R R 21, R The Standard Bank of SA Ltd S28 Retail Bank Jan Dec-16 3 yrs, 0 mths 0.00% 8.0% R R 13, R Rage Distribution (Pty) Ltd S29 Retail Fashion retailer Jul Dec-15 1 yrs, 6 mths 5.00% 8.0% R R 10, R K Kruger, Mrs Prinsloo t/a Deuce S30 & PB8 Retail Hair and beauty salon Sep Aug-16 3 yrs, 0 mths 0.00% 8.0% R R 5, R Bravospan 182 t/a T hedas Boutique - 21 Lease Expired on 31 Dec staying on monthly until 30 Sep 2015 S31/32 Retail Shoe & clothing boutique Oct Sep-15 1 yrs, 0 mths 0.00% 0.0% R R 5, R Capt Dorego's S33 Retail Restaurant Dec Nov-19 5 yrs, 0 mths 0.00% 9.0% R R 14, R T iekams Audio & Video CC S34 & PB10 Retail Electronics store 1 1, Apr Mar-18 5 yrs, 0 mths 3.00% 8.0% R R 86, R Pick n Pay S35 Retail Supermarket 3, May Apr-17 8 yrs, 0 mths 1.75% 6.0% R R 191, R Absa Bank Ltd AT M 1 Retail AT M May Apr-19 5 yrs, 0 mths 0.00% 8.0% R R 2, R FNB ATM -A Div of Firstrand Bank Ltd ATM 2 Retail ATM Jun May-16 3 yrs, 0 mths 0.00% 8.0% R R 2, R Nedbank AT M AT M 3 Retail AT M Aug Jul-15 3 yrs, 0 mths 0.00% 6.0% R R 3, R S Gilfillan t/a The Trading Post Barrow Retail Leather shoe shop Aug Jul-15 3 yrs, 0 mths 0.00% 8.0% R R 1, R Up Coming Lady T rading (Pty) Ltd t/a T ripple Constraint Car Wash Retail Car wash Jan Dec-18 5 yrs, 0 mths 0.00% 8.0% R R 4, R Mark Wilson Motors CC t/a Jacksons Advert Retail Motor dealership Aug Jul-15 1 yrs, 0 mths 0.0% R 1, R 1, R Miss N Winter PB1 Parking 1 0.0% R Charmaine de Bruin PB2 Parking 1 31-May % R MR J Juvaan Barcklay PB3 Parking 1 31-Oct % R Mr Frans Booyse PB4 Parking 1 31-May % R Mr Chris Els PB5 Parking 1 0.0% R Vacant PB6 Parking 1 0.0% R Vacant PB9 Parking 1 0.0% R Vacant PB11 Parking 1 0.0% R Mrs E Elise Naude PB12 Parking 1 0.0% R Total 12 7, R R 535, R 1, Occupied 7, % R R 505, Vacant % * Vacant space assumes a notional market related rent ** Turnover Rent is any excess of the applicable percentage of net-turnover over and above the standard rent 30

31 ANNEXURE J INCOME STATEMENT * ACTUAL YTD 1 JULY MARCH 2014 ANNUALISED * ACTUAL YTD 1 JULY MARCH 2015 ANNUALISED ** PROJECTED YR 1 1 OCT SEPT 2016 ** PROJECTED YR 2 1 OCT SEPT 2017 TOTAL RENTAL INCOME R 5,855,421 R 5,733,559 R 6,729,662 R 7,237,650 Rental Income R 5,510,666 R 5,701,938 R 6,709,123 R 7,215,310 Additional Rental - R 2, Rental Covered Parking R 2, Rental Parking R 7,810 R 12,784 R 20,539 R 22,340 Turnover Rental Income R 318, Rental Surrender Value R 16,548 R 16, TOTAL RECOVERIES R 3,181,046 R 3,000,999 R 3,228,767 R 3,422,488 Rates & Taxes Recovery R 171,645 R 188,125 R 202,404 R 214,548 Water Recovery R 30,271 R 78,126 R 84,056 R 89,099 Electricity Recovery R 2,934,696 R 2,655,190 R 2,856,719 R 3,028,122 Sewerage Recovery R 23,444 R 61,010 R 65,641 R 69,579 Waste Removal Recovery R 16,611 R 17,846 R 19,200 R 20,353 Other Recoveries R 4,379 R 702 R 747 R 788 OTHER INCOME R 86,044 R 99,181 R 105,126 R 113,536 Exhibition Courts Income R 46,000 R 52,000 R 55,120 R 59,530 Toilet Income R 39,971 R 47,175 R 50,006 R 54,006 Interest Received R 73 R TOTAL GROSS INCOME R 9,122,511 R 8,833,739 R 10,063,555 R 10,773,674 OPERATING EXPENSES *** R 3,158,119 R 3,262,339 R 3,482,997 R 3,691,977 Rates & Taxes R 185,968 R 221,498 R 238,309 R 252,608 Water R 31,392 R 62,049 R 66,758 R 70,764 Electricity R 2,078,650 R 2,057,611 R 2,213,783 R 2,346,610 Sewerage R 23,745 R 33,077 R 35,588 R 37,723 Waste Removal R 14,646 R 15,817 R 17,017 R 18,038 Cleaning & Hygiene R 4,333 R 3,695 R 3,862 R 4,093 Cleaning Service Contracts R 266,616 R 287,952 R 300,910 R 318,964 Insurance R 78,449 R 53,738 R 56,156 R 59,526 Meter Reading Fees R 12,281 R 11,743 R 12,272 R 13,008 Office Administration R 16,856 R 19,680 R 20,565 R 21,799 Security Service Contracts R 272,160 R 293,940 R 307,167 R 325,597 Stationery R Building Salaries Fee Paid R 79,391 R 81,433 R 85,097 R 90,203 Promotion Advertising R 2,634 R 17,205 R 17,979 R 19,058 Garden Contract R 27,972 R 30,216 R 31,576 R 33,470 Fire Equipment Contracts - R 10,533 R 11,007 R 11,668 Meter Reading Fee Incentive R 62,931 R 54,448 R 56,898 R 60,312 Toilet Expense - R 1,635 R 1,708 R 1,811 Sundry Expenses - R 6,070 R 6,343 R 6,723 MAINTENANCE R 94,505 R 143,866 R 150,340 R 159,361 Garden Maintenance R 3,680 R 10,472 R 10,943 R 11,599 Repair & Maint Air-Con (R 3,347) R 2,200 R 2,299 R 2,437 Repair & Maint Electrical R 28,770 R 17,289 R 18,067 R 19,151 Repair & Maint External R 16,092 R 51,512 R 53,830 R 57,060 Repair & Maint Fire Equipment R 468 R 4,033 R 4,215 R 4,468 Repair & Maint Floors R 4,773 R 4,033 R 4,215 R 4,468 Repair & Maint Internal R 50,340 R 33,714 R 35,231 R 37,345 Repair & Maint Roofs R 580 R 606 R 642 Repair & Maint Waterwork (R 6,272) R 20,033 R 20,935 R 22,191 TOTAL EXPENSES R 3,252,624 R 3,406,205 R 3,633,337 R 3,851,338 NET OPERATING INCOME R 5,869,887 R 5,427,533 R 6,430,217 R 6,922,336 * Year to date financials and current tenancy information supplied by property management company JHI. ** Projections are based on year to date financials and tenancy information with additional assumptions and projections made by Broll management. *** Operating expenses excludes property management fees of circa R225,000 pa. 31

32 NOTES 32

Broll Auctions and Sales Suite 4, 1st Floor Atholl Square Cnr Katherine Drive & Wierda Road East Sandown Ext 3 Johannesburg 2196 Tel +27 87 700 8289

33 Broll Auctions and Sales Suite 4, 1st Floor Atholl Square Cnr Katherine Drive & Wierda Road East Sandown Ext 3 Johannesburg 2196 Tel Fax PO Box Norwood 2117 South Africa auction@broll.com YOUR PARTNER OF CHOICE FOR COMMERCIAL PROPERTY AUCTIONS 33

PROPERTY INFORMATION

PROPERTY INFORMATION BUFFALO INN, PUB AND 2 HOUSES CORNER GOVERNMENT SQUARE & MARBLE STREET EAST, MARBLE HALL TOTAL ERF SIZE: 5 330 M 2 Auction Date: Tuesday 18 th August 2015 @ 12h00 Auction Venue: The