BUCO Witbank - 61 Longfellow St, Witbank, Emalahleni, 1035, South Africa

Details

Investment Highlights

• A strong national tenant – BUCO, a building material and supplies retailer located throughout South Africa
• Established location in Witbank, South Africa
• R 2 440 345 Net Operating Income for 12 months beginning 1 September 2023
• Solar opportunity for backup power given the large surface area of the roof

Location and Access

The property is situated in the South of central Witbank between Watermeyer Street at the front of the building, and Longfellow Street on one side. Customer access and delivery access are facilitated through two separate entrances. Access to the first-floor parking can be conveniently obtained on Eugene Marais Street. Watermeyer Street acts as the main transport link to OR Tambo Road and central Witbank, with the CBD to the North and Highveld Single Quatres to the south. There is easy access along OR Tambo Road to the N4, and the resulting network of motorways including access to Pretoria and Middelburg. The greater catchment area consists of a large residential population, the commercial district, and smaller industrial nodes.

Asset Description

The building encompasses a total net lettable area of 5,197 square metres distributed across two levels. The layout includes a builder's yard, warehouse space, retail space, and smaller offices on the first floor, which are utilized by Buco Witbank. A recent refurbishment was carried out to align the premises with the specific requirements of the tenants. The ground floor offers a combination of retail and related workspace, along with a builder's yard and frontside parking that can be accessed from Longfellow Street. Furthermore, there is a sizeable incoming goods yard, also accessible from Longfellow Street. This area not only facilitates entry to the timber city and lumber cutting facilities but also provides access to various smaller warehouses situated along the southwestern edge of the property. On the first floor, provisions for parking, office space, and other amenities are made, with an entrance ramp leading from Eugene Marais Street. This ramp primarily serves as an access point for employees, while customer access is granted via Longfellow Street.

Largest tenants by income

There will be a review of the lease on the 01/04/2026.

Tenant Information

Buco, or the “Building Company” is a South African company focused on selling building materials and associated products including hardware, electrical and plumbing products directly to mainly cash paying customers. Buco is owned by the same holding company as Timber City and thus Timber City is visible in many Buco retail stores.

Financial Information

Ownership Structure and Zoning Information

VAT

The seller is registered for VAT (Value Added Tax). All offers will be exclusive of VAT at a rate of 0%.

Sales Process

The property is offered for Sale by way of a direct sale of title.

Upon registration and signing the NDA, you will be provided with access to the Stage 1 Due Diligence data room, which will provide you with a full tenant schedule, a 12-month Income and Expense Forecast, a Letter of Intent template (“LOI”) and a full Sale Process Letter including instructions about making a binding LOI.

Interested parties are invited to provide submissions for the property in the form of an LOI due by the deadline date displayed. Submissions should include at a minimum, the information and terms outlined below and the completed LOI provided in the Stage 1 Due Diligence Data Room.

• Purchase Price for the Property, based on the Net Operating Income and an acquisition yield;
• A description of your company as the proposed purchaser and a reference list of similar retail transactions completed;
• Evidence of the prospective purchaser’s financial ability to complete the transaction, including the method of financing the purchase;
• Terms and conditions of closing;
• Schedule of timing and events to complete closing;
• A summary of all internal and external consents required to proceed with the contemplated transaction and a list of any other conditions to signing and completion;
• A completed LOI, in the format provided by the seller; and
• FICA documentation for the Purchaser.

Submission Date

Interested parties are invited to provide their offers to:

Fabio Nava at fabio.nava@cbreexcellerate.com

and

Henry Playne at henryplayne@qando.co.za

BY NO LATER THAN 12H00, THURSDAY 15th June 2023.

Exclusive Advisor

All communications regarding the Sale Process and/or the Property should be directed to the Seller’s exclusive Advisors:

Fabio Nava

+27 82 585 2498

fabio.nava@cbreexcellerate.com

Henry Playne

+27 72 763 4090

henryplayne@qando.co.za