As we all know there is a shortage of student accommodation in Cape Town, this is the perfect opportunity to own your own new development with great rental potential. Can also be used for general residential apartments.
Situated in Goodwood on Halt Road and close to all shops, takeaways, public transport and with easy access to all major motorways.
This building consists of 100 Apartments (240 beds) made up of 79- 1 bed units and 21- 2 bed units and a retail floor area comprising a total of 5 floors.
Apartments sizes are Type A=27sqm Type C=35sqm
Retail GLA: 804sqm- comprising 3 retail stores on ground floor.
The rental potential for the apartments is ±R850 000 p/m, and for the retail section is an additional ±R250 000 p/m.
Selling at a yield of 15,3% gross and 12,2% net based on a
projected turnover of R1 083 000 and overheads of 20%.
Returns are based on a bulk rental-with a signed lease already in place with a very experienced Student Accommodation operator.
R713100 (plus R16965 VAT for the retail floor) per month; 10 year lease, 6% escalation, plus all services (water, refuse, sewerage) plus electricity, plus security, etc.
The only outstanding overheads would be rates and insurance Rates are currently R7500/m.
Building is sold with Occupational Certificate.
There is also an opportunity to add 2 additional floors to increase the number of beds from 240 to 600 total if two more floors are added at an additional cost of R10 mil to R15 mil.
Call to discuss or request further information or arrange viewing!
VAT might be applicable to this transaction