2,207m2 National Tenanted Industrial Factory

Property Specifications:

Zoning: General Industrial
F.A.R.: Governed by National Building Regulations
Coverage: 90%.
Height: 60° light angle from opposite side of street.
Building Lines: 3 metres side and rear, 7.5 to front.
Parking ratio: 15% of total floor area or 10% of site area.
Stand Size:2Ha

Property Improvements:

• Substantial Warehouse premises with ancillary administrative areas
• Ablutions/changerooms
• Security-stores
• Mezzanine
• Storage
• Kitchen
• Covered loading areas, accessed via roller-shutter doors
• Construction is primarily facebrick under IBR sheetmetal roofing within a double volume steel portal framework.
• A sprinkler system is installed throughout the premises, which are fully insulated with sisalation underlay.
• The perimeter is fully palisade fenced and the entire yard area is concrete paved to heavy duty standards. An electrical substation (situated on the far corner road-boundary) serves this property.

The existing building is utilised as Warehousing, occupying approximately 25% of the total site area. The remaining site has been levelled and is capable of being subdivided or developed for a variety of industrial uses.

Lease Details:

The property is currently tenanted by the JD Group on a triple-net lease basis with a 6% annual escalation. The JD Group have occupied the property for the past 5 years and there is another 2 years remaining on their current lease agreement. Current rental is far below market value. Net Annual Income - (+/-) R420,000

Potential/Upside:

1. Increase rentals - due to the current below market rental of the JD Group, an opportunity is open for an investor to capitalize on higher rentals, thus increasing the annual rental income.
2. Development Potential -  There is an additional 15,000sqm of excess bulk for development of another large warehouse or alternatively, developing smaller mini-factories where the rentals achieved are slightly higher.

Macro-area Analysis:
The property is situated within the Shortts Retreat/Mkondeni Industrial area, within close proximity to Ashburton, the N3 Highway and has easy access to Pietermaritzburg Central.
The neighbouring properties are developed with similar large scale Factory and Warehouse premises. Several new Mini-Factory Developments have recently been completed.