Erf 100 - 51 Lake Road,
Longmeadow Business Estate, Ext 7 ( to let / for sale )
Stand Size: 3180m2
Warehouse: 1340m2
Offices, ablutions, guard house: 455m2
Power connection: 100kva (144A)

Erf 101 – 53 Lake Road,
Longmeadow Business Estate, Ext 7 (to let only )
Stand Size: 3180m2
Warehouse: 1340m2
Offices, ablutions, guard house: 455m2
Power connection: 200kva (288A)
Valuation Methods :

51 Lake Road (Erf 100) would be for sale only if the sale price is achieved

53 Lake Road (Erf 101) is not for sale but for lease only at R55/m2 -R60 /m2 gross through rate.

The Valuation Methods used below were compiled after consultation with, inter alia, several Johannesburg Industrial Property Agents.

A) Capitalised net income

for Lease Investors: 1795m2 (GLA excluding metal car ports) x R 55 /m2 gross through rate (R65/m2 already achieved in Lake road in the past year) less 9% expenses (used for a brand new industrial property) at a capitalization rate of 9% (as per Rhode Assoc) gives a valuation of R11, 978, 633. I am informed by Property Brokers in the Industrial Property sector that an Owner Occupier could be expected to pay a premium of 5%-10% on top of a Lease Investor’s valuation.

Therefore an Owner Occupier valuation would be between R12, 577, 565 to R13, 176,496

B) Replacement Cost

There is no vacant Land in Longmeadow for sale – offers of R1200 per m2 given to a developer with vacant land have been refused as they will only use their land for a development. Assuming a conservative figure of R1000 per m2 gives a valuation of R3, 180,000 for land only.

Assuming a conservative figure of R5250 per m2 for materials of an exceptional standard (as listed under construction details ) gives a replacement value of R9, 423, 750. Total replacement value would therefore be R12,603,750.

Developers in Longmeadow are presently quoting R7000 to R8000 per m2 including the land ( however - whether this includes materials as listed in theconstruction details tab above would have to be established ) .

C) Comparative Sales Method

A factory in Lake Road close to erf 100 was recently sold for R9,600,000.

That factory has a GLA of 1500m2 which translates to R6400 per m2. Using a simple pro rata basis this would value 51 Lake Road (1795m2 GLA) at R11,488,000 . However that factory was a speculative development and
does not include many of the items which are listed under the construction details tab above – for example, no piling, guard house , carports or even gutters and downpipes - therefore a premium of 15% for construction
methods and materials of an exceptional standard would not be unreasonable. A premium of 15% would herefore give a comparative sale  value of R13,211,200.

For more info contact:

Eclipse Blinds: 011 337 8304
Gavin Clayden: 082 578 6292