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R11,500,000

1,000m² Office For Sale in Durban Central

Introduction
Mermaid Mansion is situated next the once popular Cosmopolitan Action Bar in Durban
Point Waterfront’s historic Point Road, (Mahatma Gandhi) Precinct.

Perched in strong contrast against the dilapidation and urban decay in the historic Point Precinct of Durban
is an illustrious story of a world class bar ‘The Chairman’.

The objective of this development is to create a destination location with double volume, carpeted offices in open plan spaces overlooking the Durban Harbour.

Acquisition overview
This investment opportunity comprises the acquisition by client of a prime commercial
developed by Propertuity in the Point Waterfront in Durban.The property comprises open plan office spaces above high-street retail, with a total FAR of approx 1245sqm.

The point waterfront precinct
The eThekwini executive committee is set to break ground on the Durban Point
Waterfront project, which will see the city’s coastal skyline changed by skyscrapers
and high-rise developments. Infrastructure roll-out for the development is set to
start in June 2016. A total of 750,000sqm will be developed, including high rise
skyscrapers in excess of 55 storeys. Other infrastructure upgrades include the
extension of the promenade and all surroundings roads, public transport networks
and water and electricity channels.

Owner & Property Developer

Ownership of the land is held by MERMAID DISTRICT (PTY) Ltd(Reg No. 2012/143189/07),
of which Propertuity is a shareholder. The development of Mermaid Mansion was
undertaken by Propertuity.

Property Location
The property comprised the development of 1 individual erven totaling approx 943.167sqm
of land. The property has one street frontage, namely Mahatma Ghandi Street. Please refer
to Google Earth aerial view. Mermaid Mansions was being redevelopmented on 1 erven.

Property Details
• Address: Mahatma Ghandi, Durban
• Land size: 943.167sqm
• Zoning: General Business
• FAR factor: 8.0 (100% commercial)
• Permitted FAR: 943.167sqm x 8 = 7545.34sqm

SARS UDZ Tax Rebate
The property lies within the SARS Urban Development Zone (UDZ). Whilst this tax benefit can’t be enjoyed by REITS, it may be worth the buyer considering a different purchasing entity in order to enjoy the initial cash flow benefits of this tax incentive.

Purchase Structure
Upon in principle approval by the purchaser of this development concept & acquisition
proposal, a contract of sale will be signed including annexures for provisional building
plans, unit plans, building & unit specifications and development program.

Guarantees to be provided by buyer within 30 days of signature of the contract of sale.

Price & Cap Rate Adjustment
Buyers adjustment clause will be included to ensure the contractual income achieved in
month 12, multiplied by 12, matches the Y1 guarantee amount. This assessment &
recalculation will take place at the end of the first 12 months. Furthermore, due to the
extended period of appox 24 months from concluding the contract of sale to taking delivery in Sept 2018, a risk control mechanism will be negotiated between the parties to cover positive or negative movement in rates over the period.

For the purpose of simplicity, Propertuity propose that Prime interest rate upward movement in excess of 0.5% and up to a maximum of 1.5% will result in the acquisition cap rate of 10.0% being adjusted
accordingly in favour of the buyer. Reciprocally, any reduction between 0.5% and 1.5% will bene

Features

7
0
Zoning:
Commercial
Exterior
Security
No
Sizes
Floor Size
1,000m²
Parking Bays
Covered Parking Bays
7
 
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Disclaimer: While every effort will be made to ensure that the information contained within the Halbe Properties website is accurate and up to date, Halbe Properties makes no warranty, representation or undertaking whether expressed or implied, nor do we assume any legal liability, whether direct or indirect, or responsibility for the accuracy, completeness, or usefulness of any information. Prospective purchasers and tenants should make their own enquiries to verify the information contained herein.

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Transfer Costs

Natural Persons Legal Persons
Transfer Fees
Deeds Office Levy
Transfer Duty
Postage and Petties:
Rates/Levy Clearance
Pro-Rata Rates/Levies
Deeds Office Search
Electronic Document Preparation
Vat @ 15%
TOTAL:
Please note: Most banks charge an administration and initiation fee.
Disclaimer: These calculations are only a guide. Please ask your conveyancer for exact calculations.

Bond Costs

  Natural Persons
Fees
Deeds Office Levy
Postage and Petties
Bank Electronic Connection Fee
Electronic Document Preparation
Vat 15%
TOTAL:
GRAND TOTAL:

Income

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Expenses

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%
Joint Total Income
Joint Total Expenses
Joint Available Income
 

MONTHLY REPAYMENTS

 

LOAN AVAILABLE

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Monthly Payment

151,973.35

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