BID to BUY LANDMARK INVESTMENT PROPERTY UNITS 3 13 THE ROYAL, 267 ANTON LEMBEDE STREET, DURBAN
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- Cornelia Patterson
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1 BID to BUY LANDMARK INVESTMENT PROPERTY UNITS 3 13 THE ROYAL, 267 ANTON LEMBEDE STREET, DURBAN WEB#: Click to view ADDRESS: Units 3 13 The Royal, 267 Anton Lembede Street, Durban VIEWING: By Appointment CONTACT: Carl Kleinhans ckleinhans@in2assets.com
2 CONTENTS PROPERTY DESCRIPTION 2 PROPERTY INFORMATION & LOCATION 5 PROPERTY HISTORY 6 PICTURE GALLERY 9 ADDITIONAL INFORMATION 12 PROPERTY INCOME 13 SKYWALK INFORMATION 14 OUTDOOR ADVERTISING INFORMATION 15 PROPERTY EXPENSES 16 TERMS AND CONDITIONS 17 SG DIAGRAM 18 ZONING CERTIFICATE 19 PROPOSED PLANS 4 TH FLOOR ADDITIONAL AREA (BALCONY) 23 PROPOSED PLANS TWO ADDITIONAL LEVELS 11 & SECTIONAL TITLE PLANS 25 BODY CORPORATE CONDUCT RULES 43 BODY CORPORATE MANAGEMENT RULES 54 TITLE DEED 61 DISCLAIMER: Whilst all reasonable care has been taken to provide accurate information, neither In2assets Properties (Pty) Ltd 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 the negligence or otherwise of In2assets Properties (Pty) Ltd or the Sellers or any other person. The Consumer Protection Regulations as well as the Deed of Sale can be viewed at or at Unit 505, 5th Floor, Strauss Daly Place, 41 Richefond Circle, Ridgeside Office Park, Umhlanga Ridge. Bidders must register to bid and provide original proof of identity and residence on registration. 1
3 PROPERTY DESCRIPTION General Property Address: Township & Province: Units 3-13 The Royal, 267 Anton Lembede (Smith) Street Durban, KwaZulu Natal Title deed information Property 1 Title Deed Description: Section 3 SS The Royal Extent: 320 m² Title deed information Property 2 Title Deed Description: Section 4 SS The Royal Extent: 311 m² Title deed information Property 3 Title Deed Description: Section 5 SS The Royal Extent: 1635 m² Title deed information Property 4 Title Deed Description: Section 6 SS The Royal Extent: 288 m² Title deed information Property 5 Title Deed Description: Section 7 SS The Royal Extent: 323 m² Title deed information Property 6 Title Deed Description: Section 8 SS The Royal Extent: 323 m² 2
4 PROPERTY DESCRIPTION (continued) Title deed information Property 7 Title Deed Description: Section 9 SS The Royal Extent: 323 m² Title deed information Property 8 Title Deed Description: Section 10 SS The Royal Extent: 323 m² Title deed information Property 9 Title Deed Description: Section 11 SS The Royal Extent: 323 m² Title deed information Property 10 Title Deed Description: Section 12 SS The Royal Extent: 323 m² Title deed information Property 11 Title Deed Description: Section 13 SS The Royal Extent: 533 m² Title Deed Number: ST3172/2011 Scheme Number/Year: 399/2009 Registered Owner: Erected on: Henque 2042 CC Portion 7 of ERF Durban Total Combined Extent: 5025 m² 3
5 PROPERTY DESCRIPTION (continued) Municipal information The local authority in which the property is situated is the ethekwini Municipality. According to the town planning scheme, the parent property is zoned as follows:- Town Planning Information Zoning: FAR: Coverage: Height: Front Building Lines: Side Building Lines: Rear Building Lines: General Business (Central Area) 8.0 which permits 2.0 for residential for the first meters back from Anton Lembede Street. Thereafter, the remainder permits 4.0 for residential. N/A 59º Angle from opposite side of street (max 30 meters) or 110 meters with a 5.0 meter setback at 15.0 meters 4.5m from centre line of street NBR NBR Parking: No minimum parking requirement. See appendix 6 attached to Zoning Certificate. 4
6 PROPERTY INFORMATION & LOCATION The subject property occupies a corner site and is positioned fronting onto Anton Lembede (Smith) Street within the heart of the Durban Central Business District. The subject property falls within the Durban Central precinct, as per ethekwini s new Urban Development Zone (UDZ). This is one of nine new precincts demarcated within the greater central city, together forming the UDZ. The aim of creating this zone is to stimulate new investment and urban regeneration to the central parts of the ethekwini city, through tax saving incentives applicable to new development or building restoration. The neighbourhood within the immediate vicinity of the subject property comprises mostly retail space on the ground floor and offices and flats on the upper floor levels. Some accommodation has been upgraded, whilst general landscaping and improved cleanliness and security have stimulated new investment in the area. Anton Lembede (Smith) Street is one of the main one way arterial roads running from east to west and bisecting the CBD. The Victoria Embankment and the Durban Harbour are easily accessible; as are the M4 and N3 Freeways. The subject property is well appointed in terms of necessary amenities including the Durban Harbour, Durban International Airport, emergency, medical, educational services and transport facilities. The properties enjoy good exposure to vehicular and pedestrian traffic along one of the CBD s major routes. SUBJECT SCHEME: SS The Royal, 267 Anton Lembede (Smith) Street, Durban 5
7 PROPERTY HISTORY The Royal Hotel Durban has stood at the centre of Durban and its history for more than 150 years. It has grown with the City and stands proud of its tradition of exceptional service and hospitality. On 12 December 1845 Durban s first hotel announced itself open to the public. The story of McDonald s Commercial Hotel, subsequently renamed the Masonic and finally the Royal, begins during the late 1830 s with the arrival at Port Natal of a Scottish sea captain, Hugh McDonald. Hugh McDonald was in Port Natal during the 1842 siege of Captain Smith s British garrison by Boer soldiers led by Commandant Andries Pretorius. Despite the precarious situation of the small settlement at the Port, Hugh must have had faith in its future, for in November 1842, he persuaded another brother, Charles, to settle there. It was Charles McDonald who in January 1843, bought the Market Square property on which part of the Royal Hotel today stands, for the sum of 40. He erected a wattle-and-daub thatch-roofed trading store and began selling such essential items as sugar, tea, tobacco, wine and brandy, conveniently supplied by the Pilot. It is possible that he also offered rudimentary accommodation to travelers. Residents of D Urban (as the settlement at the Port had earlier been named) eagerly awaited the arrival of the ships and Hugh McDonald became well acquainted with many of the locals during his stays in the port. Charles McDonald moved to Pietermaritzburg at some time during 1845 and his brother Hugh was at sea on the Pilot when on 12 December 1845 an advertisement appeared in Natal s first newspaper, de Natalier and True Pietermaritzburg Recorder, announcing the opening of the Commercial Hotel in Durban. It may be assumed that Charles McDonald had leased the property to John Edwards, the first proprietor of the hotel. Little is known about Edwards, whose proprietorship of the Commercial lasted only a few months and in February 1846 Hugh McDonald gave up his life at sea to take over the hotel. He bought the property from his brother Charles, together with is adjoining plot, paying 40 for each. Between January 1849 and June 1952, almost 5000 British immigrants arrived in Natal. Hugh McDonald was not slow to take advantage of the influx of people requiring temporary accommodation. He consolidated his property by selling off two portions of his Brother Charles s original property and erected a new doublestoreyed building on his undeveloped property adjacent to the original Commercial. Hugh McDonald died in June 1853 at the comparatively young age of 56. His death did not result in the closure or sale of McDonalds, for it was managed until 1857 by his capable widow, Ann. Besides being a busy mother of four young daughters, Ann McDonald continued to provide the sumptuous public dinners to which Durbanites had become accustomed, as well as to accommodate government officials and many other visitors at the hotel. In July 1855 Ann McDonald advertised the hotel business for sale and for a brief period the hotel was in the hands of Thomas Galloway, who had arrived in Natal in He advertised that he intended to pay particular attention to the stables, having engaged a well-known ostler for this purpose. His optimism proved to be misplaced however and, unable to fulfill the conditions of the lease, he entered the Zulu trade. Despite auctioneer Robert Acutt s enticing advertisements, Ann McDonald was not able to find another buyer and so actually retire until March Charles McDonald s original plot and building (minus the two bayside subdivisions sold off by Hugh in 1851) were sold to Henry Stainbank, while the new hotel with its stables and 6
8 PROPERTY HISTORY (continued) outbuilding was leased to George Winder for 21 years. Ann McDonald and her four daughters continued to live on a portion of this property in a wooden house overlooking the Bay, until her death on 30 May George Winder, the hotel s new proprietor in 1857, was a resourceful London-born man, who had been in the Colony since In December 1857 George Winder changed the name of his hotel to the Masonic and it continued to serve as the headquarters of Natal s first Masonic Lodge. In March 1859, after only two years at the helm, George Winder sold the lease of the Masonic to William Wood, formerly owner of the Crown Hotel in Pietermaritzburg. Having obtained Queen Victoria s young son, Prince Alfred s permission after he attended a dinner at the Masonic, William Wood wasted no time in renaming the hotel and his advertisement soon carried the words Wood s Royal Hotel (by Special Appointment) as well as displaying the Royal Coat of Arms. By May 1861 William Wood was in deep financial trouble and the hotel was up for sale yet again. The purchasers of the lease of the Royal and the adjoining freehold property in 1861 were Farquard Campbell Salmon and John Beard. The partnership with John Beard was shortlived and by December 1861 the hotel was being advertised as Salmon s Royal Hotel. Salmon announced in May 1864 that he was about to proceed to England and instructed Robert Acutt to sell the lease and goodwill of the hotel on his behalf. George Jessup, the new proprietor, owned the hotel for 3 years, after which it was repurchased by FC Salmon in The astute FC Salmon, back from England, announced optimistically that the Royal would as formerly, be conducted as a first-class hotel. While there was now some improvement in the economy, FC Salmon evidently struggled to remain in business. The resourceful Salmon now attempted to capitalize on the Diamond Fever raging in Natal at this time. The failure of his Diamond Fields venture, however apparently forced him to sell the lease, the purchaser being Thomas Meikle. When the unfortunate Meikle went insolvent, The Royal Hotel property was advertised for sale. It was bought in September 1878 by Thomas Crane. Following its purchase the Royal was closed for the only time in its 150+ year history, pending major renovations and reopened its doors by mid-january The Royal was purchased in 1881 by the well-respected FL Jonsson, an astute and wealthy businessman, who was to manage it, in conjunction with his many other enterprises, with conspicuous success over the next twenty years. FL Jonsson died on 10 June 1899 at the age of 63. The terms of FL Jonsson s will evidently specified that the Royal should be sold after his death. However, in view of the unsettled political and economic climate 1899, the sale was postponed indefinitely. The Royal therefore remained in the hands of Jonsson s heirs. In May 1902 the Jonsson family finally sold the Royal to the Royal Hotel and Estate Company, which had been specially formed for this purpose. In November 1927 a scheme to amalgamate the Royal and Marine hotels, first considered during the early 1920 s but shelved. The company formed for the purpose was Durban Hotels Ltd by Vernon Hooper and the Marine Hotel s Levin Joel. The Joel family and Vernon Hooper were the major shareholders. Levin Joel was appointed overall Managing Director and Vernon Hooper Chairman of the amalgamated Board of Directors. 7
9 PROPERTY HISTORY (continued) Levin Joel died in October 1951, to the deep regret of many. His obituary paid tribute to a remarkable hotelier and to a man whose personal generosity with his considerable wealth had benefited many institutions and charitable organisations in Durban. Gordon Noyce was appointed Managing Director after Levin Joel s death and then Chairman of the company after Vernon Hooper s death in After Gordon Noyce s death his son, Michael, who had been a director of Durban Hotels for some years, was elected Chairman. In 1973, Russell Stevens, who had been a director of the company as well as its part-time marketing advisor, was appointed Managing Director. Stevens envisaged the Royal of the 1980 s as a city-centre hotel of international class. In 1988 Durban Hotels Ltd signed a contract with Russell Stevens s newly-formed hotel management company Three Cities Hotels, which has since been responsible for the management of The Royal Hotel until recently. 8
10 PICTURE GALLERY Typical exclusive and individual offices Typical office and Boardroom Typical open plan office area Typical kitchenette & Store room areas 9
11 PICTURE GALLERY (continued) Typical passages to Offices Skywalk on 2 nd Floor Exclusive Use Balcony on 4 th Floor Common Areas 10
12 PICTURE GALLERY (continued) New Upgraded Elevators 11
13 ADDITIONAL INFORMATION Primary use The subject units form part of a sectional title scheme known as SS The Royal, which commonly known as the Royal Hotel is an iconic and popular hotel with immense heritage value in the Durban CBD. The parent property is divided into the Royal Hotel and the Office components that front onto the busy Anton Lembede (Smith) Street. The subject units make up the office components. The units are positioned on the 2nd, 3rd, 4th, 5th, 6th, 7th, 8th, 9th, 10th and 11th floors and make up the office components of each floor. Floors 2, 3, 5, 6, 7, 8, 9 and 10 are of similar layout and comprise of security manned foyer areas, individual and open plan offices, board rooms, kitchenettes, security control rooms, ablution facilities and store rooms. The components of each floor are partitioned by dry walling to suit the needs and requirements of the respective operations on these floors. The 4th floor extends onto two buildings and is therefore larger than the above mentioned floors. Part of this floor that faces Anton Lembede (smith) Street is of similar layout to the other floors (mentioned above) however at split level this floor extends towards the Hotel. This extension comprises of numerous individual offices, open plan offices, exclusive offices, board room, store rooms, kitchenettes, ablution facilities and an exclusive use balcony. The 11th floor is more private and comprises of exclusive offices, boardroom, ablution facilities, a kitchenette all with superior fixtures and fittings. The building is fully secured and air conditioned throughout. The elevators and ground floor foyer area are co-owned with the Hotel. New elevators were installed in 2014 which cost approximately R 1 million. 47 secure undercover parking bays exclusive to the subject units, are positioned on the first floor of the neighbouring building and can be accessed through the Skywalk on the second floor of The Royal. 12
14 PROPERTY INCOME Lease Details No. Tenant Name Area (m²) 1. National Department of Public Works The above monthly rental for the National Department of Public Works is broken up as follows:- - Rent for offices R806, Rent for Parking (47 Bays) R 37, Rent for Mezzanine Level on 4 th Floor R 9, TOTAL R853, A copy of the above lease agreement is available on request. Lease Term February 2011 to March 2021 Monthly Rental (Excl Vat) Annual Rental (Excl Vat) Tenants are liable for water, electricity, refuse removal and sewerage expenses. NB. The above information has been provided by the Seller and / or his agent. Lease Expiry National Department of Public Works: 5025 R 853, R 10,237, February March Office Componants Department of Justice: Liberty Building Month to month - Refer to page 15 R 20, R 240, Skywalk below Aligned Media Holdings t/a Aligned 5 years from 8 April 2015 to 8 April R 45, R 540, Outdoor: Outdoor Advertising Refer to page 16 below TOTAL R 918, R 11,017, The information relating to the Lease for the Department of Justice Liberty Building Skywalk and the Lease for the Aligned Media Holdings Outdoor Advertising is detailed below on pages 15 and 16 respectively. Note: Please refer to the property expenses on page 17 below. 13
15 SKYWALK 2. Department of Justice: Liberty Building Skywalk Current Lease Period: Month to Month Current Lease Terms: Monthly Rental payable is R20, excl vat The Seller has advised us that he pays a monthly body corporate levy for the Skywalk of ±R The Purchaser will have the option to negotiate new terms with the Department of Justice when drawing up a new lease agreement for the Skywalk. This Skywalk links the Royal Hotel from the second floor to the Marion Building where the 47 parking bays are located. NB. The above information has been provided by the Seller and / or his agent. 14
16 OUTDOOR ADVERSTISNG 3. Aligned Media Holdings t/a Aligned Outdoor Lease Period: 5 years from 8 April 2015 to 8 April 2020 Lease Terms: The lessee shall pay to the lessor for any period during which the site is in charge and amount equal to 20% of the net advertising revenue payable to it. The Seller has provided us with an approximate value of ±R95, (excl. vat) per month. The Seller has advised us that to date, no such advertising has commenced as this is still in the design phase. No rental income has been received as yet until the advertising commences. A copy of this signed lease is available on request. NB. The above information has been provided by the Seller and / or his agent. 15
17 PROPERTY EXPENSES Expenses The assessment rates for the year 2015/2016 is as follows:- Section Number Monthly Rates Annual Rates Section 3 R 5, R 60, Section 4 R 4, R 58, Section 5 R 19, R 236, Section 6 R 4, R 55, Section 7 R 5, R 60, Section 8 R 5, R 60, Section 9 R 5, R 60, Section 10 R 5, R 60, Section 11 R 5, R 60, Section 12 R 5, R 60, Section 13 R 7, R 92, TOTAL R 72, R 867, The monthly levies for all 11 units amounts to approximately R42, The monthly parking expense payable for the 47 parking bays is approximately R35, Water, Electricity, Sewerage & Refuse Removal expenses amount to approximately R90, per month which is recovered from the tenants. Other expenses include servicing of air conditioners (±R3,500 per month), service of cooling water treatments (±R990 per month) and service of elevators. Vat Status The Seller is a Vat registered Option to Zero Rate 16
18 TERMS & CONDITIONS If you are the successful bidder kindly note the following: 5% Deposit payable by the Purchaser on confirmation of the accepted bid 5% Commission payable by the Purchaser within 48 hours on condition precedent being fulfilled 48 hour Confirmation period 45 Day Guarantee Period after suspensive condition fulfilled Possession on Registration of Transfer Electrical, Entomologist and Gas Certificates for the Sellers account Subject to Bond Approval Kindly note for EFT & Cheque payments, the following applies: Cheques need to be made out to In2assets Properties (Pty) Ltd EFT Payments, our trust account banking details are as follows: Bank : Standard Bank Account Name : In2assets Properties (Pty) Ltd Account No. : Branch Name : Kingsmead Branch code :
19 SG DIAGRAM 18
20 ZONING CERTIFICATE 19
21 ZONING CERTIFICATE (continued) 20
22 ZONING CERTIFICATE (continued) 21
23 ZONING CERTIFICATE (continued) 22
24 PROPOSED PLANS 4 TH FLOOR 23
25 PROPOSED PLANS 2 FURTHER LEVELS 24
26 SECTIONAL TITLE PLANS 25
27 SECTIONAL TITLE PLANS (continued) 26
28 SECTIONAL TITLE PLANS (continued) 27
29 SECTIONAL TITLE PLANS (continued) 28
30 SECTIONAL TITLE PLANS (continued) 29
31 SECTIONAL TITLE PLANS (continued) 30
32 SECTIONAL TITLE PLANS (continued) 31
33 SECTIONAL TITLE PLANS (continued) 32
34 SECTIONAL TITLE PLANS (continued) 33
35 SECTIONAL TITLE PLANS (continued) 34
36 SECTIONAL TITLE PLANS (continued) 35
37 SECTIONAL TITLE PLANS (continued) 36
38 SECTIONAL TITLE PLANS (continued) 37
39 SECTIONAL TITLE PLANS (continued) 38
40 SECTIONAL TITLE PLANS (continued) 39
41 SECTIONAL TITLE PLANS (continued) 40
42 SECTIONAL TITLE PLANS (continued) 41
43 SECTIONAL TITLE PLANS (continued) 42
44 BODY CORP CONDUCT RULES 43
45 BODY CORP CONDUCT RULES 44
46 BODY CORP CONDUCT RULES 45
47 BODY CORP CONDUCT RULES 46
48 BODY CORP CONDUCT RULES 47
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51 BODY CORP CONDUCT RULES 50
52 BODY CORP CONDUCT RULES 51
53 BODY CORP CONDUCT RULES 52
54 BODY CORP CONDUCT RULES 53
55 BODY CORP MANAGEMENT RULES 54
56 BODY CORP MANAGEMENT RULES 55
57 BODY CORP MANAGEMENT RULES 56
58 BODY CORP MANAGEMENT RULES 57
59 BODY CORP MANAGEMENT RULES 58
60 BODY CORP MANAGEMENT RULES 59
61 BODY CORP MANAGEMENT RULES 60
62 TITLE DEED 61
63 TITLE DEED (continued) 62
64 TITLE DEED (continued) 63
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