Web Ref No COM19518

Investment Opportunity in Maitland: High-Yield Industrial Property with Significant Upside Potential

We're presenting an excellent investment opportunity in Maitland, a well-established industrial area with strong demand for versatile spaces. The property, priced at R6,850,000, offers a substantial 1,365m² of space, including 1,111m² under roof and a rare 312m² yard—an invaluable asset in this location.

Key Financial Highlights:

Current Monthly Rental Income: R57,098
Rental Escalation: 8.5% in April, significantly boosting returns.
CAP Rate: Post-escalation, the CAP rate exceeds 9%, ensuring a strong return on investment.
Zoning: MU2, allowing for flexible usage and potential future development.

Strategic Advantages:
Weighted Average Lease Expiry (WALE): 1.5 years, providing stability while allowing for renegotiation or new tenant opportunities in the near term.

Low Holding Costs: With rates at R5,289, insurance at R2,000, and maintenance at R2,900, the property is cost-effective to manage.
Value Appreciation Potential: Maitland’s industrial market is tight, particularly for properties with yard space. The 312m² yard increases desirability for a wide range of tenants, ensuring minimal vacancy and strong rental growth prospects.

Investment Case:
This property offers a robust, immediate cash flow with the potential for substantial appreciation. The upcoming rental escalation and the rare yard space make it a compelling buy-and-hold project. In just two years, with the expected market appreciation and rental income growth, this investment is poised to deliver significant profits.

Secure your stake in this high-demand industrial hub and benefit from both the stable income and potential capital growth. This is an ideal investment for those looking to maximize returns in a relatively short period while holding a versatile, low-risk asset. Sole mandate.