Units for sale in an office block in a fast growing town in the southern suburbs.

Units for sale in an office block in a fast growing town in the southern suburbs.

Introduction:

• This quant town is known for its quiet, village-like atmosphere, tree-lined streets, and historic thatched roof houses. It is highly central and conveniently situated within a 15-minute drive of the major city hubs and the airport.
• The town also houses various conveniently placed shopping centres and office blocks. The popularity of these office blocks have increased % wise more than other areas due to its well kept infrastructure and road works. Companies have moved out of the CBD of Cape Town due to various reasons and invested in their own offices where they can have an increase in value on their investment.
• The average price for offices in this town is around R13,75 million, with an average square meter price of R14,124.
• This specific offering is now for 3 units in a well maintained office block, with 527 square meters.
• The rest of the office block is occupied by professional organizations and long term tenants.
• These specific 3 units have got new renovation plans for the inside to accommodate conferences/webinars etc.

Finances:

• Income for these 3 units is on average R70,000 excl. VAT, but can be negotiated up to R80,000 excl. VAT.

Selling price:

• R 7,8 million- working on the above R70,000 pm rental income, it will give a buyer a ROI of 11% which is above the average of office blocks where a ROI of between 8 -10% is achieved.