"Selling your business is our business"
"Selling your business is our business"
How long has the business been established?
This prime commercial property has been regional home for one of SA's premium commercial truck brands for the past 20 years
How long has the owner had the business?
The current owners developed the site from it's exception
Fully describe this property and its income earning activities.
The property is located on the corner of two busy streets
The property is leased to a premium listed company that is utilizing it as a prominent Truck center
The truck center is focusing on sales / servicing of trucks / parts division
An additional portion of the road reserve is leased from the municipality for additional parking
The property is enclosed by Clear View fencing and there is a central secure entrance to the property
The property is designed and recently upgraded at a cost of R 12M to comply with the tenant's international standards
Development include the following - 5 x service bays / wash bay / part store rooms / reception , marketing and hospitality area / admin and executive offices / restrooms of truck drivers
What is the approximate age of the buildings?
The original building was completed in 2005
Significant upgrades were done in 2022
What is the zoning of the property and what can be developed thereon?
Zoning classification - Business 3
2 Storeys
Permissible cover 50%
Permissible FAR 1%
Zoning certificates available
Are there building plans available?
Yes , on file
What is the erf size and the size of the buildings?
Erf size 6362 m2
Coverage 2311 m2 36%
FAR 0.33%
Is a property valuation available?
Yes , a resent bank valuation is available
Describe the 2022 upgrades / revamp
During the 2022 upgrade the main building was extended to provide space for parts sales and storage
The interior of the office block was revamped with new offices , boardroom , kitchen and bathrooms
The wash bay was re-tiled and the workshop floor was treated and sealed with a new epoxy layer
The landscaping was re-done and the outer fencing was re-done with See Through fencing and electrification . â
A new waiting room with facilities for drivers was build
The showroom was restyled with new ceilings , while the air conditioning system was upgraded
A new oil reticulation system to the latest standards was installed
How does the business operate on a daily basis?
Commercial rental property
Is the property being let by a letting agency?
No
Is a copy of all the lease agreements on the property available?
Yes
Is the business VAT Registered?
Yes
What VAT documentation is on file?
VAT Returns
Are there up-to-date Management Accounts available?
Yes
What Balance Sheet and Income Statements are available?
January 2025
What percentage of the business is cash/credit?
No credit - only cash
What is the monthly rates and taxes payable to local authority?
The monthly municipal rates / taxes and rent of about R 34 000 is paid BY the tenant to the Landlord ( seller ) - who then settle it with the local authorities
What rental deposit has been secured from the tenants?
None
How involved is the Owner in running the business?
The property owner only oversee the rental income and quarterly inspection
The long-term tenant is taking responsibility for all maintenance and utilities
When does the current lease end?
2028
Is there an option of renewal & what period?
Yes , renewals cycles are for an additional 5 year terms
What is the annual escalation %?
4%
What are the main assets of the business?
The commercial property with improvements
What is their overall condition?
Very well kept
Keep in mind that the tenant is responsible for all maintenance / repairs and up-keeping of the property
The Landlord ( seller ) is only responsible for the up keeping of the AC system of the building
Are they presently insured?
The seller is responsible for the insurance of the property @ R 9300/m
Strengths?
This is a very well establish commercial rental agreement between the landlord and the blue chip tenant
Easy to manage
Tenant is responsible for up-keeping and overheads
Costly revamp of R 12 M was done in 2022
Good stability within the transport industry within that area ( mining / coal / logistics )
It will be very costly for the tenant to relocate this facility
What is the reason for the sale?
The members within the family Trust would like to diversify their portfolio
Why is this property a good investment?
Blue chip tenant within the stable transportation / logistical sector
Easy to manage
No overheads costs
