Saxonwold Prime Corner Stand on Oxford Road Major development potential

37 Englewold Drive (Corner Oxford Road)

Tuesday, 14 July 2020 @ 12h00 Online Webcast Auction

Luke Rebelo | 072 493 2148 | [email protected]

Version 1: 24 June 2020 NT

Prime Corner Stand on Oxford Road Saxonwold, Johannesburg

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

Floor Layout Plans Page 13

Projected Gross Annual Income – Summary Page 15

Projected Gross Annual Income - Detailed Page 16

Lease Summaries Page 17

Rates Statement Page 19

General Plan Diagram Page 21

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Prime Corner Stand on Oxford Road Saxonwold, Johannesburg

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.

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Auction Information Deposit 5% of the bid price Commission 10% plus 15% VAT thereon of the bid price Confirmation period 2 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.

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Prime Corner Stand on Oxford Road Saxonwold, Johannesburg

Property Images

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Prime Corner Stand on Oxford Road Saxonwold, Johannesburg

Property Images

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Prime Corner Stand on Oxford Road Saxonwold, Johannesburg

Executive Summary & Key Investment Highlights

Street Address: 37 Englewold Drive (Corner Oxford Road) - Saxonwold, Johannesburg GPS Coordinates: -26.1599, 28.0466

Registered Erf Size: 2,549m² 'Residential 1 with Business Rights' - (A a copy of t he zoning Zoning: cert ificat e/confirmat ion has been request ed) Assessment Rates R 10,745.07 / month (excluding consumpt ion charges and cit y levies)

See from page 9 for full accommodat ion det ails. The improvements on the site, currently zoned Residential 1 (with Accommodation: consent use rights), comprise of a double storey office conversion, with an ancillary building providing additional lettable area.

Area Description GBA (± m²) Ground Floor 389.8 First Floor 151.9 Ancillary Office Building 79.2 Total Approximate Gross Building Area 620.9 Gross Building Areas: Not es. The Gross Building Areas (GBA) are approximat es based on a combinat ion of client supplied informat ion and aerial phot ograph measurement s t aken along t he out er walls of t he buildings and includes penet rat ions such as st aircases and passageways.

Gross Lettable Area: ±430m² (excluding 25m² of yard space occupied by Vodacom)

Occupation: The subject property is multi-let. See page 13 for det ails.

Prime corner stand with an extraordinary position on the corner of Oxford Road and Englewold Drive.

Phenomenal location in the natural growth path between Rosebank and Saxonwold along Oxford Road. Office conversion, zoned "Residential 1" with business rights, hosting a Key Investment Highlights: residential building, which has been internally reconfigured and is suitable for an owner occupier or an investor. Significant development potential and appeal in a node well-supported by Council for a variety of commercial and high-density residential developments.

By bidding on t his propert y, t he purchaser acknowledges t hat he has acquaint ed himself wit h t he ext ent and t he nat ure of t he propert y he is buying, and t hat he accept s t he propert y as such.

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Prime Corner Stand on Oxford Road Saxonwold, Johannesburg

General Information

Street Address 37 Englewold Drive (Corner Oxford Road) - Saxonwold, Johannesburg GPS Coordinates -26.1599, 28.0466 ______

Title Deed Information

Title Deed Number T31867/2005 Registered Owner Tan-Ex Investments CC Title Deed Descriptions Erf 326 Saxonwold, City of Johannesburg Registered Land Sizes 2,549m² Title Deed Conditions A copy of the title deed is on hand and will be made available upon request thereof. Endorsement In terms of section 14(1) of The Infrastructure Act 8 of 2001. In terms of section 11(1)(b) the MEC has proclaimed a railway line to operate the Gautrain in terms of Provincial Gazette No. 3342 dated 24 November 2010. The railway line will run below a portion of this erf. The servitude area will be surveyed at a later stage. The notice is filed under I1681/2011/C

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Municipality Information

Municipality City of Johannesburg Metropolitan Municipality Rates Excluding consumption charges and city levies - based on the Tax Invoice for the June 2020 billing period. 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) R 6 400 000 Business N/A N/A 0.0201470 R 128 940.80 R 10 745.07

______Zoning Information

Zoning 'General' * Permitted Uses "Any use other than noxious"

* A copy of the zoning certificate has been requested. The development/town planning parameters applicable to the property will be updated upon our receipt thereof.

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Prime Corner Stand on Oxford Road Saxonwold, Johannesburg

Locality Information Macro Locality The property is situated in the sought-after and affluent suburb of Saxonwold. The area is characterised by a mixture of developments including both commercial and residential, with a substantial increase in higher density residential developments seen over the last few years, especially the areas along the M1 up until Restanwold Drive. The area further hosts a series of high-end residential, commercial, leisure and retail offerings, which have transformed the area into one of the most highly sought-after locations in Johannesburg. These developments include the nearby Rosebank Mall and The Zone retail complex hosting an array of popular retail offerings. The site offers good accessibility due to its close proximity to the M1 highway (approximately 1km from the subject property), as well as a number of main arterial routes including Oxford Road and that provide access to various surrounding commercial and residential nodes including Johannesburg CBD in the south and Rosebank in the north. All major amenities including various schools and institutions are available in the immediate surrounds of the subject property. GPS coordinates for the sites are as follows: -26.2074, 28.0446

Image Data: Google, AfriGIS (Pty) Ltd, DigitalGlobe

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Prime Corner Stand on Oxford Road Saxonwold, Johannesburg

Locality LocalityInformation Information

Micro Locality

Estate Houghton

standard bank logo

Estate Melrose

Rosebank

Saxonwold ImageData: Google, AfriGIS Ltd, (Pty) DigitalGlobe

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Prime Corner Stand on Oxford Road Saxonwold, Johannesburg

*+Locality Information Property Description Approximate Boundaries

N

CSGSpatial Data Map Viewer ImageData:

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Prime Corner Stand on Oxford Road Saxonwold, Johannesburg

Property Description

Accommodation The improvements on the site, currently zoned Residential 1 (with consent use rights), comprise of a double storey office conversion, with an ancillary building providing additional lettable area.

The main building has been configured to accommodate three separately lettable office units. Both spaces are characterized by mainly open floor layouts with additional accommodation features such as a reception area, a printing room and storerooms being configured into the respective office units as well. The floor further hosts male and female ablutions, as well a kitchenette, which form a part of the shared common areas in the facility.

The first floor, with a L-shaped layout hosts two main sections containing a mostly self-contained residential unit and an additional office unit, which has been configured into two main office areas and ablution facilities within the unit, as well.

The additional office building, constructed alongside the primary office building, offers open spans and can be configured for a number of uses, as may be required.

See copies of the floor layout plans attached to this brochure. ______

Construction The primary building is constructed of rendered and painted brick structural walls under a combination of waterproofed concrete and pitched tile roofing. ______

Fixtures and Finishes The building features a variety of internal finishes encompassing a combination of tiled, parquet, concrete screed/power-floated concrete and carpeted floors under a mixture of pressed ceilings, suspended ceiling boards and concrete ceilings, as well. ______

Utilities Utilities are supplied by the City of Johannesburg and billed to the Seller’s account on a postpaid basis. ______

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Prime Corner Stand on Oxford Road Saxonwold, Johannesburg

Property Description

Gross Building Areas Area Description GBA (± m²) Ground Floor 389.8 First Floor 151.9 Ancillary Office Building 79.2

Total Approximate Gross Building Area 620.9 Not es.

The Gross Building Areas (GBA) are approximat es based on a combinat ion of client supplied informat ion and

aerial phot ograph measurement s t aken along t he out er walls of t he buildings and includes penet rat ions such as

st aircases and passageways.

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Parking 19 x Shade-net Parking Bays 4 Open Parking Bays Total – 23 Parking Bays ______

Occupation The property is multi-let. See pages 11-13 for details. ______

Condition The property is regarded to be in generally good condition and offers above average curb appeal. We have not undertaken a structural survey of the buildings nor have we arranged for tests or inspections of the service installations, but these appear to be in working order.

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.

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Prime Corner Stand on Oxford Road Saxonwold, Johannesburg

Floor Layout Plans

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Prime Corner Stand on Oxford Road Saxonwold, Johannesburg

Floor Layout Plans

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Prime Corner Stand on Oxford Road Saxonwold, Johannesburg

Projected Annual Income – Summary

Projected Gross Annual Income - August 2020 to July 2021

Approx. Area Folio No. Item / Tenant Expiry Date Esc Basic Rent Total / Units

1 College of Digital Photography 2020/12/31 8.0% R 128.47 195.2 R 314 975 2 Julia Meintjies Fine Art 2021/07/31 9.0% R 151.82 155.8 R 283 836 3 KMEC Parkview (Pty) Ltd 2020/12/31 8.0% R 151.18 79.3 R 150 479 4 Vodacom (Pty) ltd 2021/07/31 12.0% R 775.19 25 R 207 642

455 R 956 931

Not es/Assumpt ions: 1. The Basic rent , Escalat ion rat e and t he approximat e area of t he unit are as ext ract ed from informat ion as supplied by t he Seller. 2. All informat ion as supplied and project ed above has been verified t o t he relevant lease agreement , copies of which are on hand and will be made available upon request t hereof. 3. All amount s represent ed above are exclusive of VAT. 4. Municipal services, including but not limit ed t o elect ricit y, wat er and rat es form a part of t he base rent al charged by t he landlord t o t he respect ive t enant s. 5. Where t he respect ive agreement s expire during t he project ion period it has been assumed, for t he purposes of t his project ion, t hat t he t enant s will exercise t heir right s t o renew and/or cont inue on t he same principles and escalat ions as in t he original lease agreement s. Special Not e - The rent al informat ion in t his brochure is not int ended t o const it ut e specific advice nor t o subst it ut e for a due diligence exercise, and accordingly should not be relied upon t o make a purchase decision. Prospect ive purchasers should make t heir own enquiries and invest igat ion t o confirm pert inent informat ion and forecast s, and should furt her seek appropriat e independent professional advice in relat ion E & OE t heret o from suit ably qualified professionals t o complet e t heir own due diligence in relat ion t o t he Propert y.

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Prime Corner Stand on Oxford Road Saxonwold, Johannesburg

Projected Gross Annual Income -

Detailed

956 931 956

956 931 956

207 642207

150 479150

283 836283

314 975314

Total

E & OE & E

R R

R R

R R

R R

R R

R R

80 980 80

17 303 17

12 939 12

23 653 23

27 084 27

Jul-21

R R

R R

R R

R R

R R

2020/06/25

80 980 80

17 303 17

12 939 12

23 653 23

27 084 27

Dat e:

Jun-21

Potential Gross Income Gross Potential

R R

R R

R R

R R

R R

80 980 80

17 303 17

12 939 12

23 653 23

27 084 27

May-21

R R

R R

R R

R R

R R

80 980 80

17 303 17

12 939 12

23 653 23

27 084 27

Apr-21

R R

R R

R R

R R

R R

80 980 80

17 303 17

12 939 12

23 653 23

27 084 27

Mar-21

R R

R R

R R

R R

R R

80 980 80

17 303 17

12 939 12

23 653 23

27 084 27

Feb-21

R R

R R

R R

R R

R R

80 980 80

17 303 17

12 939 12

23 653 23

27 084 27

Jan-21

R R

R R

R R

R R

R R

78 015 78

17 303 17

11 981 11

23 653 23

25 078 25

Dec-20

R R

R R

R R

R R

R R

78 015 78

17 303 17

11 981 11

23 653 23

25 078 25

Nov-20

R R

R R

R R

R R

R R

78 015 78

17 303 17

11 981 11

23 653 23

25 078 25

Oct-20

R R

R R

R R

R R

R R

78 015 78

17 303 17

11 981 11

23 653 23

25 078 25

Sep-20

R R

R R

R R

R R

R R

78 015 78

17 303 17

11 981 11

23 653 23

25 078 25

Aug-20

R R

R R

R R

R R

R R

25

455

79.3

155.8

195.2

/ Units /

Approx. Area Approx.

775.19

151.18

151.82

128.47

Basic Rent Rent Basic

R R

R R

R R

R R

Esc

8.0%

9.0%

8.0%

12.0%

2021/07/31

2020/12/31

2021/07/31

2020/12/31

Expiry Date Expiry

Item / Tenant / Item

Vodacom (Pty)ltd Vodacom

KMEC Parkview(Pty)KMECLtd

Julia Meintjies Fine Art Fine Meintjies Julia

College of Digital Photographyof College

4

3

2

1

Folio No. Folio

qualifiedprofessionalst complet o t e diligence in heirrelatdue own iont t o Propert he y.

Prospect ive purchasers should maket should Prospectinvestand heir enquiries purchasers iveown igat iont confirm o pert inentinformat forecast ionand furt appropriatshould and s, seek her independent e professionalin advice relat iont heretfrom o suit ably

Special Not e - The rent SpecialNot The - al informat e ionin t isnot hisintbrochure t ended const o it uttspecific nor advice e subst o decision. it tnot reliedshould purchase upon makea be diligence accordingly and o utexercise, due fora e

escalatin tas ions original he agreement lease . s.

5. Where t5.Where respect he agreement ive duringexpiret s project he it ionperiod toffor t assumed, been purposes has his project he ion,t hatt t he enantwill s t exercise heirright t s contt and/or renew on o inue principlessame he and

4.Municipal including services, but not limit t ed elect o ricitwat y, ratand er form parta es tof rentt base he landlordby al he charged t t o respect he t ive enant s.

3.All VAT. ofamount exclusive are represent s above ed

2.All informat verified been projectthas andsupplied ionas above t ed o relevant he agreement lease will handand whichofon are madeavailable ,copies request tbe upon hereof.

1. The Basic rentBasic 1.The ,Escalat ionrat tand e approximat he tof area e unit he ext as are ractfrom ed informat t Seller.by supplied he ionas Not es/Assumpt ions: 2021 July to 2020 AnnualAugust - Income Gross Projected

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Prime Corner Stand on Oxford Road Saxonwold, Johannesburg

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 on hand and will be made available to bona fide prospective purchasers upon request. ______

Lease 1

Tenant College of Digital Photography CC Rentable Area A portion of the ground floor of the primary office building (including

common areas) Start Date 1 January 2018 Expiry Date 31 December 2020 Renewal Period 2 years Escalation Rate 8% per annum Monthly Rental (excl VAT) R 25,077.60 / month (excl VAT) Key Clause(s) See general note 1. ______Lease 2

Tenant Julia Meintjies Fine Art Rentable Area ±155m² (Ground floor office unit and first floor residential unit)

5 x Parking Bays (included in basic rental) Start Date 1 August 2018 Expiry Date 31 July 2021 Renewal Period 2 years Escalation Rate 9% per annum Monthly Rental (excl VAT) R 23,653.00 / month* Additional Charges The lessee shall be liable for their pro-rata share of the increase in rates and taxes

Key Clause(s) See general note 1.

Note: * The landlord (seller) and the tenant have agreed to a stay on rental increases due to the impact of the novel COVID19 virus on the economy. The base rental for the final year of this agreement will thus remain at R23,653.00 per month.

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Prime Corner Stand on Oxford Road Saxonwold, Johannesburg

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 on hand and will be made available to bona fide prospective purchasers upon request. ______

Lease 3

Tenant KMEC Parkview (Pty) Ltd

Rentable Area ±79.25m² (first floor) Start Date 1 January 2020 Expiry Date 31 December 2020 Renewal Period 1 year Escalation Rate 8% per annum Monthly Rental (excl VAT) R 11,980.80 / month Additional Charges 20GB Monthly Internet Access - R 378.00 / month Key Clause(s) See general note 1 ______Lease 4

Tenant Vodacom (Pty) Ltd

Rentable Area 25m² (Ground floor office unit and first floor residential unit) Start Date 1 August 2011 Expiry Date 31 July 2021 Renewal Period Not applicable Escalation Rate 12% per annum Monthly Rental (excl VAT) R 17,303.46 / month Additional Charges The tenant is liable for the cost of electricity consumption

Key Clauses (common to each tenant’s lease – except Vodacom)

1. Municipal services, including but not limited to electricity, water and rates form a part of the base rental charged to the respective tenants. 2. If the landlord intends to renovate/demolish, re-develop, or sell the building, or a portion of the building in which the leased premises are situated, he may terminate this lease by giving the tenant at least 6 (six) calendar months written notice of cancellation. In the case that this option is exercised, the landlord must reimburse the tenant for the costs of improvements made to the property. The tenant will notify the landlord of these costs within three months of occupation, and such costs will not exceed R50,000.00 (the amount is capped at R20,000 for the tenant KMEC Parkview (Pty) Ltd)

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Prime Corner Stand on Oxford Road Saxonwold, Johannesburg

Rates Statement

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Prime Corner Stand on Oxford Road Saxonwold, Johannesburg

Rates Statement

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Prime Corner Stand on Oxford Road Saxonwold, Johannesburg

General Plan Diagram

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Prime Corner Stand on Oxford Road Saxonwold, Johannesburg

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