On completion of the renovations as proposed
Accommodation
Bachelor
1 Bedroom
2 Bedroom
Retail (GLA un determined)
Basement parking
Tenants
Various
Various
Various
Various
58
Estimated
Bays
Lettable unit
type / m²
Rental
Monthly total
106
106
12
465
0
224
R 2 000.00
R 2 500.00
R 3 250.00
R 40.00
R 120.00
R 2 583.33
R 212 000
R 265 000
R 39 000
R 18 600
R 6 960
Sub Total
Vacancy factor
Number of flats vacant per month
Gross income
Recoveries
Per unit
Sub Total
Less: Expenditure
Per unit
Assessment rates estimate
R 24 640 x 12 months
Sanitary fees estimate
R 11 200 x 12 months
Refuse estimate
R 5 600 x 12 months
Water estimate
R 78 400 x 12 months
Electricity estimate
R 83 300 x 12 months
Lift maintenance
R 2 550 x 12 months
Ancillaries
R 56 000 x 12 months
Insurance
R 5 000 x 12 months
Security (2 x Guards 24Hr)
R 15 400 x 12 months
Management fee
5%
of gross rental income
Audit fee
1.00%
of gross rental income
Repairs & maintenance
R 50 176 x 12 months
Expenditure / income ratio
Nett annual income
Capitalisation rate utilised
Valuation amount
Rounded valuation amount, on completion of the renovation costs
Value per unit
R 2 544 000
R 3 180 000
R 468 000
R 223 200
R 83 520
R 6 498 720
R 97 481
1.50%
3
Annual rental
(including esc)
R 8 123
R 138 320
R 6 401 239
R 1 659 840
R 364 760
R 8 061 079
R 4 377 115
R 617.50
R 1 628.39
R 24 640
R 11 200
R 5 600
R 78 400
R 83 300
R 2 550
R 56 000
R 5 000
R 15 400
R 27 078
R 5 416
R 50 176
R 295 680
R 134 400
R 67 200
R 940 800
R 999 600
R 30 600
R 672 000
R 60 000
R 184 800
R 324 936
R 64 987
R 602 112
68.38%
R 3 683 964
11.0%
R 33 490 582
R 33 500 000
R 150 000
per unit
Description
Area in m²
Total
Replacement
cost
Replacement
cost in m²
Shell (Main building)
5697
R
10 000
R
56 970 000
Basement
1972
R
3 500
R
6 902 000
None
0
R
-
R
-
None
0
R
-
R
-
Site Improvements
R
Rounded
-
R
63 872 000
##########
Plus
Professional Fees @
16%
R
10 219 520
Demolition Cost
3%
R
1 916 160
Local authority & statutory fees
2%
R
1 277 440
Developers profit
5%
R
3 193 600
R
80 478 720
R
11 267 021
R
91 745 741
Total Replacement Cost (Exc
VAT)
Plus VAT @
14%
Total Replacement Cost (Inc VAT)
Less Total Depreciation
73 396 593
Depreciation rate
0.80
Depreciated Replacement Cost
Plus Land Value
Market Value
Say
18 349 148
2235
R
600
1 341 000
19 690 148
20 000 000.00
##########
The site measurements are approximately 30m x 29m
We have assumed a similar use to that of the "Brickfields" development and we have taken measurements to assimilate buildings from
this development that would fit on the site. We have determined that building 1 and two would just fit on the site.
Building 1 and 2 provide
36
units, of various sizes, from 2 bedrooms to a bachelor
The total building extent of
Construction costs are ±
1 204 m²
R 7 250 /m²
R 8 729 000
R 8 729 000
R 242 472 Per unit
An opportunity rate of R50, 000 per opportunity (calculated over the full extent of the property)
Add land cost @
R 50 000 Per opportunity
R 1 800 000
R 1 800 000 Estimate residual value, excluding developers profits
Gross cost of development
R 10 529 000
R 290 000 Per unit, deemed market related for the area.
Developers profits @
25.00%
R 450 000
R 1 350 000 Estimate residual value, including developers profits
R 37 500 Per opportunity