15 Room Income Property With Day One Rental Income

About this property

7 Willow Street is a 15-room multi-let residential asset in the established Kempton Park CBD node, immediately adjoining 5A Willow Street. Unlike 5A, this property is not vacant: 6 of the 15 rooms are currently occupied by the Seller's own staff at R3,500 per room per month, giving a purchaser immediate day-one income while retaining the remaining 9 rooms for lease-up upside at the same rate. The Seller advises that the existing vacancy reflects limited capacity to self-manage the portfolio rather than weak demand in the area, in which demand from working tenants and relocating families remains strong.

Executive summary

Bidding to start from	R2,500,000
Asset Class	Multi-Let Residential / Staff & Shared Worker Accommodation
Erf	Remaining Extent of Erf 2750, Kempton Park Township, Registration Division I.R., Gauteng
Erf Size	929 m²
Gross Lettable Area (GLA)	338.37 m² (Grand Total Built, per approved plans)
Zoning	Business 3 (City of Ekurhuleni Land Use Scheme, 2021)
Rates & Taxes	R45,896 per annum, see Annual Operating Performance
Current Occupancy Vacant	6 of 15 rooms currently occupied by the Seller's own staff (40%) at R3,500 per room per
Annual Gross Income (GLI)	R630,000 (projected, see Annual Operating Performance)
Net Income Before Purchaser Adjustments	R429,904 (projected, see Annual Operating Performance)
Sale Method	Public Auction

Key investment highlights

✓ 15 modern bedrooms with 5 toilets and 5 showers, tiled throughout with premium finishes in the wet areas
✓ 6 of 15 rooms currently occupied by the Seller's own staff at R3,500 per room per month, providing immediate day-one income.
✓ Fully walled, paved and fenced with a washing line; individual pre-paid meters per room keep utility costs contained
✓ 9 vacant rooms offer immediate lease-up upside at the same R3,500 per room per month rate already being achieved on the occupied rooms
✓ Well-positioned Kempton Park CBD location, close to transport, schools, clinics and shopping
✓ Strong local rental demand fundamentals from workers, contractors and relocating families; current vacancy reflects the Seller's limited capacity to self-manage, not weak demand
✓ Scope to combine management with the adjoining 5A Willow Street for portfolio-scale efficiencies
✓ Low municipal rates and taxes relative to income potential

Auction Terms

Registration Fee	R25,000 refundable deposit via EFT payable prior to auction. No cash accepted.
FICA	ID, proof of residence, and letter of authority required to sign on behalf of a juristic entity.
Purchaser's Deposit	5% of purchase price payable immediately on fall of the hammer. Non-refundable.
Commission	10% + VAT over and above the bid price, payable by the purchaser. Non-refundable.
VAT / Transfer Duty	Seller VAT registered. VAT or Transfer Duty payable as applicable.
Confirmation Period	5 business days
Guarantee Period	Within 45 calendar days from acceptance
Transfer Attorney	TBA
General	CPA 2008 applies. Rules of auction available on request. Auctioneer may bid to reserve. Subject to change without notice.

In accordance with industry best practice, Aldes Auctions will present the seller with the highest bid achieved at the auction for acceptance and will not accept any counter offers during this confirmation period.