MULTI-LET INVESTMENT OPPORTUNITY AT 213 OAK AVENUE FERNDALE
Seller asking R 4,150,000 excluding VAT - All reasonable offers will be considered
14 units. 13 income-generating. 11 long-term formal leases, 2 short-term. On-site management accommodated. R70,000 average monthly income. This is a working investment.
Full title. 1,681 sqm erf. 490 sqm under roof. The property operates as a managed multi let accommodation facility in the heart of Ferndale, Randburg.
THE INCOME CASE
Current average monthly gross income: R70,000. Annual gross: R840,000.
Gross yield at asking price: 20.2.
Net yield after all operating costs, current structure: 11.5.
Net yield post pre paid meter installation: 14.2.
That single operational change saves between R84,000 and R144,000 per annum. Utilities currently run between R7,000 and R12,000 per month, fully absorbed by the owner. Pre paid meters shift that cost to tenants. No change to income. Straight improvement to net.
YIELD SUMMARY
Current gross yield: 20.2
Current net yield utilities absorbed by owner: 11.5
Net yield post pre paid metering utilities shifted to tenants: 14.2
All figures based on R70,000 average monthly income and R4,150,000 asking price.
THE OPTIMISATION CASE
Pre paid meters are the first move and the easiest win. Beyond that, two additional units are viable through conversion of the communal lounge, dining, kitchen, laundry and storage areas. At current average room rates, that adds between R132,000 and R192,000 per annum in additional revenue.
Systematic cosmetic upgrades unlock the upper end of the R5,500 to R8,000 per room per month range. All 14 units are furnished and fully equipped. That inventory transfers with the sale.
THE INFRASTRUCTURE
3 x 5,000 litre JoJo tanks. Borehole with filtration for potable water. 2 solar geysers. Additional solar panels. 3 covered parking bays and 8 open bays. Dual access controlled entry points. Alarm system. On site staff quarters and storage.
The property is presented in fair condition and priced to reflect both its current income performance and the upgrade opportunity.
COMPARABLE SALES
20A Grove Street: R3,900,000 572 sqm building on 1,001 sqm erf
123A Bram Fischer Drive: R3,910,000 552 sqm building on 1,890 sqm erf
213 Oak Avenue offers a comparable building footprint, a larger erf, and active rental income that none of these sales carry. The income generating premium is priced conservatively at asking.
THE LOCATION
Ferndale sits at a commercial and logistical crossroads. MultiChoice HQ is minutes away. The greater Randburg CBD is in reach. Ferndale on Republic drives sustained commercial activity and consistent demand for quality worker accommodation. Gautrain bus access close by. Multiple retail nodes within 1 kilometre.
This is not a residential bet on capital appreciation. It is a business. It is performing now. It has clear room to perform better.
Property is held in a VAT registered entity. Purchase price excludes VAT. Sale might attract VAT on top of the listed price, or transfer duty, depending on acquisition structure.
PARKVILLE PROPERTIES PTY LTD trading as REMAX Advantage Rosebank operates in terms of a franchise agreement with REMAX of Southern Africa.