Commercial For Sale In Vanderbijlpark

Investment opportunity in heart of the Vanderbijlpark city centre

Location: 67 Eric Louw Street, Vanderbijlpark Central , historically the ABSA bank building

• Erf size: 533 m2
• Building: Double-storey centre of VDBP
• Usable lettable area: 1,100 m2
• Age: Approximately 50 years
• Tenants: 3 main tenants
• Consent Use: Retail and general office space
• 18 Offices airconditioned upstairs and large office , open space down stairs

Rental Gross monthly rental: R89,000 est

Gross annual rental: R1,068,000 est

Operating costs assumed: 50% (rates, taxes, services, maintenance, etc.)

Net Operating Income (NOI):

R534,000 per year est Market Factors Included for reduced demand caused by the slowdown in the local economy.

Used a higher investment risk requiring a higher capitalization rate. R5.5 million – R6.0 million general rate

Adjusted value after allowing for the current economic conditions: R4.195 million Rental Rate: 100% occupancy as current

Using 1,100 m2 of lettable area: Gross rental: R89,000/month Rental per m2: R80.91/m2/month (approximately R81/m2)

Suggested Marketing Rental

• We concluded that the property could be advertised at approximately:
• R85–R95/m2 if refurbished and well presented.
• If marketed at R89/m2, the asking rental would be about R97,900 per month, allowing room for negotiation while remaining broadly in line with secondary commercial rentals.
• Capitalisation rate analysis and Cash flow and investor return looks good

Recent sales in same area of town over R 10million for property similar and use