Ref. No - BFS937750

LocationSouth Africa, KwaZulu-Natal

Ref. No - BFS937750

Sector - Property

Asking Price
R33,760,000
Monthly Profit
R253,237
Asset Value
R 33,760,000
Stock Value
R 0
Yearly Net Profit
R 3,038,847

Summary

All of these properties are in very good to excellent condition and are fully tenanted.

Give me more information

How does the business operate on a daily basis?

The owner is fully involved in the business & ensures that tenant payments are made timeously.
Utilities are paid by tenants via prepaid meters.

What Advertising/Marketing is carried out?

The property is fully tenanted so there is no need for marketing or advertising.

How involved is the Owner in running the business?

The owner is fully invested daily in the smooth running of this property portfolio.

When does the current lease end?

To be made available to qualified buyers.

Strengths?

These properties are situated close to the Durban CBD, close to major roads and industrial & commercial business nodes.
It is for this reason that potential tenants are drawn to it.
The owner invested R10m in Property 2 around 8 years ago.
The vacancy factor is 0% for good reason.

Weaknesses?

The properties are fully developed, so there is limited opportunity for expansion.

Opportunities?

Opportunities are twofold:
1. Investor buyers can be comforted by the fact that these properties are in constant demand and that there should therefore be a constant cash flow at an expected 9% Return on Investment.
2. An opportunity exists for an investor buyer who would elect to utilize some of the units for their own use (subject to the expiry of current leases), whilst renting out the balance of the units to existing tenants.

Threats?

EWC is a potential threat but it seems very unlikely.

What is the reason for the sale?

The owner of this property portfolio has decided to reduce their property holdings.
Location

Contact | Enquire

Gary

Gary Gower

LocationSouth Africa, KwaZulu-Natal

Preferred method of contact

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