BRAND NEW STORAGE UNITS AT 12% YIELD!!!
- Date Listed15/05/2019
- For Sale ByOwner
- Available From15/05/2019
One sectional title section, consisting of 28 storage units for sale as one lot at R1 995 000; R240 000 per annum rental income guaranteed with a headlease signed by the Seller (12.03% yield!). Since the usual 10% management fee will be waived, you are getting an extra 10% return at no cost. Current rentals are R695/m, thus R765/m after 12 months, assuming the usual 10% increase: this would equate to a 12,88% yield.
282m2 in total; each unit is roughly 6 m deep by 1,5m wide by 3,2 m high. The amount of storage is actually quite a lot: apparently these can house "the contents of a three-bedroom apartment, or 150 medium boxes, or 225 archive boxes” (as per easystoragejo.com/size-estimator). Please note the sizes: these are first-floor half-garage size units.
The sections are held in a VAT-registered entity so you could pay no transfer duty and be zero-rated for VAT.
Each unit has a light, a fire sensor and the door is on a self-closing spring.
For security, there is an admin office at the entrance, Security personnel plus 24-hour secure controlled access (tenants can only access with unique codes); plus CCTV monitoring and an electric fence.
All units are now occupied, but the Seller is prepared to sign a headlease for R20 000/m for 12 months on all 28 units to give an investor peace of mind regarding the return.
Levies: R12.00/m2; total R3384/m
Rates: R 4.70/m2; total R1325/m
No further costs (insurance, water, security etc is covered in levies).
Situated just off the N2 between Somerset West and the Strand/Gordons Bay in the Helderberg Business Park is the storage complex know as Storage Broadlands: 40 Chilwan Crescent / 13 Koster Street