Your Partner of Choice for Commercial Property Auctions

PROPERTY PROPERTY

INFORMATION INFORMATION

KEW Retail Building and Part Triple Storey Warehouse onn Auction 628 Louis Botha Avenue,Kew, Johannesburg

TUESDAY 9TH JUNE 2015 @ 12H00 The Wanderers Club

AUCTIONEER: Ismail Hendricks AGENT: Marc Saks 079 646 3655 / [email protected] Bakkies Reyneke 082 451 6897 / [email protected]

TABLE OF CONTENTS

1. Property Summary 4

a. Locality (see Annexure A) 7 b. Legal Information (see Annexures B and C) 8 & 11 c. Town Panning (see Annexure D) 12

2. Locational Analysis 5 3. The Development 6 4. Notes 17

ANNEXURES

Annexure A: Locality 7 Annexure B: Title Deed 8 Annexure C: SG Diagrams 11 Annexure D: Zoning Certificate 12 Annexure E: Gallery 13 Annexure F: Tenancy Schedule 15 Annexure G: Income Statement 16

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 www.broll.com 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 2 negligence or otherwise of Broll Auctions and Sales and its subsidiaries and related companied, the Seller, or any other person”. OPPORTUNITY SUMMARY

Retail and warehousing triple sttorey commercial building with direct street exposure onto busy Louis Botha Drive in Kew. KFC (Kentucky Fried Chicken) is connsidered to be the main Description anchor tenant which occupies a prominent position on the ground ffloor fronting onto Louis Botha Drive with easy access and parking for customers.

Erf Size 4,278m²

Zoning Business 4

GLA Total 4,188m2

GLA Tenanted 4,188m2 (100%)

GLA Vacant ‐

Tenancy

Projected For Year Ended 30 Sep 2016 Income Gross Income R2,597,921 statement Less Operating Expenses (R1,203,750)

Net Income R1,394,170

3 PROPERTY SUMMARY

1.1 Locality (see Annexure A)

Property Address: 628 Louis Botha Avenue Suburb and City: Kew Industrial, Kew Local Authority: City of Joburg Metropolitan Municipality Province: Gauteng

1.2 Legal Information (see Annexures B and C)

Erf number(s): 772 Township: Kew Erf Extent: 4278m² Title Deed Number: T170079/2007 Registered Owner: Lambrou Christos

1.3 Town Panning (see Annexure D)

The property is zoned Business 4 in terms of the City of Johannesburg Town Planning Scheme, subject to the following conditions: Zoning: Business 4 Height: 3 Storeys Coverage: 60% F.A.R: 1.8 Parking: As per scheme ‐street parking bays in front of the building. Building line: 6m along street boundary

4 2. Locational Analysis

This retail/industrial property (hereinafter referred to as the property) has two road frontages .The main frontage being onto Louis Botha Avenue (M11) and the second frontage is on Eleventh Road. Louis Botha Avenue (M11) experiences high traffic volumes , and offers good exposure to the property. The immediate area offers a mixture of similar line retail shops, warehousing and workshop type properties, in an established commercial/Industrial area.

Some of the surrounding suburbs include Sandton, Houghton Estate and Highlands North which are all afluent sububs in Johannesburg. The property is also located within 500m from a South African Police satelite office and Balfour Park Shopping centre is within 1km from the property. The property is easily accessible by means of major and secondary routes including Louis Botha Drive (M11) and Corlettl Drive (M30). All modern amenities are in close proximity.

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: ‐26.1227 28.0851

5 3. The Development

The property offers a part triple storey building. The ground floor comprises various shops and a workshop (see Anneure E). The first and second floors consist of warhousing and offices as per owner.

The stand is south/west facing, fronting onto Louis Botha Avenue and has a slight slope from north to south.

The stand has direct exposure onto both Louis Botha Drive (M11)and Eleventh road, which links up with other major routes in the area.

The stand is improved with a part triple storey retail/warehouse building. The building is constructed by means of plastered and painted brick with a IBR roof.The external walls of warehouse fronting onto Louis Botha are cladded with painted steel cladding which have rusted in places and requires maintenance. The floor consists of vinyl and concrete flooring in the shops and workshop. Most of the shops viewed require the vinyl flooring to be either replaced with ceramic tiles, due to heavy traffic and deliveries, or to be replaced with vinyl flooring which would be the more cost efffective short term solution.

There is off street parking along Louis Botha Drive for customers and tenants.

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.

The rental income of the property is attached as Annexure F.

Component 1 – Retail (Shops) Ground Floor This component comprises 6 separate shops on the ground floor with street parking for customers. The shops are constructed from plastered brick superstructure and plastered concrete ceilings. The floors of the shops are finished with vinyl, ceramic and/or concrete flooring. The shops have access to a narrow walkway at the rear of the building. On the ground floor is a motor spares workshop (next to KFC), that is constructed form steel frame and IBR roof sheeting.

Component 2 – Warehousing, First and Second floors

Access has been gained to the upper floors on inspection of property. The first and second floors above the shops comprise average warehousing space with basic internal finishes. There are ablutions and a small office space on each floor which are accessed by a common staircase. It has been noted that repairs are required on the top floor to fix a leaking roof.

6 ANNEXURE

ANNEXURE A

LOCALITY A

7 ANNEXURE B

TITLE DEED

10 ANNEXURE C

SG DIAGRAM(S)

11 ANNEXURE D

ZONING CERTIFICATE

12 ANNEXURE E

GALLERY

Front of building Rear of building

AN NE XU RE DN EX UR Plumbing Hardware Kentucky Fried Chicken E

New Tool Centre Atlantic Takeaway and Butchery

Inside KFC Inside KFC

Workshop (Motor Spares) External of Motor Spares Workshop

14 ANNEXURE F

TENANCY SCHEDULE

No Tenants Unit Use Description Parking Area m² Lease Start Lease Expiry Duration Esc. Rent / m² Rent Parking 1 Sakho Hardware (Pty) Ltd Shop 1 Retail Hardware 85.00 01-Jan-15 31-Dec-19 5 yrs, 0 mths 10.0% R 63.53 R 5,400.00 2 Sakho Hardware (Pty) Ltd Shop 2 Retail Atlantic Take Away 85.00 01-Jan-15 31-Dec-19 5 yrs, 0 mths 10.0% R 97.06 R 8,250.00 3 Sakho Hardware (Pty) Ltd Shop 4 Retail Mount Plumbing 100.00 01-Jan-15 31-Dec-19 5 yrs, 0 mths 10.0% R 100.00 R 10,000.00 4 Sakho Hardware (Pty) Ltd Shop 5 Retail Fruit & Veg 160.00 01-Jan-15 31-Dec-19 5 yrs, 0 mths 10.0% R 60.00 R 9,600.00 5 Kissenger Al Kess Yousef Abdel Malik Rizekalla Shop 3 Retail Tool Centre 85.00 01-Jan-15 31-Dec-17 3 yrs, 0 mths 10.0% R 112.94 R 9,600.00 Tool Centre Warehouse shared with Jejossi 6 Kissenger Al Kess Yousef Abdel Malik Rizekalla Shop 11 Warehouse (behind KFC) 1,480.00 01-Jan-15 31-Dec-17 3 yrs, 0 mths 10.0% R 13.51 R 20,000.00 7 Madiro Foods Shop 6 Retail KFC Shop 210.00 01-Jan-15Apr-15 31-Dec-15 1 yrs, 0 mths 10.0% R 129.52 R 27,200.00 8 Madiro Foods Shop 9 Storage KFC - 1st and 2nd floor Storage 1,050.00 01-Jan-15 31-Dec-17 3 yrs, 0 mths 8.0% R 12.67 R 13,300.00 9 Jejoossi Trading Shop 8 Retail Motor Spares Factory Shop 358.00 01-Jan-15 31-Dec-16 2 yrs, 0 mths 10.0% R 8.58 R 3,070.00 10 Roger Psoro (Monhtly) Shop 10 Workshop Panel Beating 480.00 01-Nov-10 31-Dec-14 4 yrs, 2 mths R 6.40 R 3,070.00 11 Victor Mogotlane (Monthly) Shop 7 Retail Food Shop 95.00 01-Jul-03 31-Dec-14 11 yrs, 6 mths R 31.58 R 3,000.00

Total 0 4,188.00 R 26.86 R 112,490.00 R 0.00

11 Occupied 4,188.00 100.0% R 26.86 0Vacan

t 0.00 0.0% * Note: Most of the leases have an option to renew 3 months prior to termination of lease.

ANNEXURE G

INCOME STATEMENT

APRIL 2015 ** PROJECTED YR 1 ** PROJECTED YR 2 ANNUALISED 1 OCT 2015 ‐ 30 SEPT 2016 1 OCT 2016 ‐ 30 SEPT 2017

TOTAL RENTAL INCOME R 1,349,880 R 1,443,264 R 1,584,207 Rental Income R 1,349,880 R 1,443,264 R 1,584,207

TOTAL RECOVERIES R 1,096,854 R 1,154,657 R 1,223,936 Rates & Taxes Recovery R 208,249 R 198,607 R 210,523 Water Recovery R 208,660 R 224,497 R 237,967 Electricity Recovery R 679,945 R 731,553 R 775,446

TOTAL GROSS INCOME R 2,446,734 R 2,597,921 R 2,808,143

OPERATING EXPENSES R 1,120,180 R 1,203,750 R 1,275,975 Rates & Taxes R 184,596 R 198,607 R 210,523 Water R 208,660 R 224,497 R 237,967 Electricity R 679,945 R 731,553 R 775,446 Insurance R 39,510 R 41,288 R 43,765 Meter Reading Fees R 7,469 R 7,805 R 8,274

TOTAL EXPENSES R 1,120,180 R 1,203,750 R 1,275,975

NET OPERATING INCOME R 1,326,553 R 1,394,170 R 1,532,168

*Year to date financials and current tenancy information supplied by vendor. ** Projections are based on year to date financials and tenancy information with additional assumptions and projections made by Broll management.

NOTES

______

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 Fax +27 86 247 8768

PO Box 92510 Norwood 2117 South Africa

www.broll.com [email protected]

YOUR PARTNER OF CHOICE FOR COMMERCIAL PROPERTY AUCTIONS