Lenchen Street Office Park is situated at the intersection with Jean Street in the northern sector of Centurion CBD.

2. PROPERTY DETAILS

2.1 ERF DESCRIPTION
Ext 1 and 2 of Die Hoewes Extension 259 together measuring 8718m².

2.2 ZONING
The property is presently being proclaimed a township which will grant the property Business 4 rights for offices and other commercial users with a floor space ratio of 0.62 and a three-story height restriction and parking requirements of 4 Nº bays per 100m².

2.3 THE SECTIONAL TITLE BUILDINGS
The property will be developed as two three story buildings. The buildings will be modern in character with a single roof pitch over an underground parking basement.
The façade of the building will be a combination of glass, steel, sandstone and brick.
Building A facing onto Lenchen Street will measure 3600m² while Building B will total 2100m². Each building which will be split into separate sectional title units ranging in size from 130m² upwards.
The parking has been provided on the basis of 5 numbered bays/ 100m² of office space.
Each individual office entrance will have its own front door off the main lobby of the office block, conveniently situated with regard to the visitors and parking access points.
Each suite will have its own exclusive toilet and kitchen facilities.
The units are available for ownership on a sectional title basis and can be amalgamated if necessary to provide the size required by the perspective purchaser. Each unit will be allocated a minimum number of parking bays as per the schedule.

3. FINISHES & INSTALLATION ALLOWANCE
Each unit will come complete with toilets and kitchens, toilet, acoustic ceilings, lay-in fluorescent lighting, plastered walls, and electrical plugs and telephone jacks at obvious points.
In addition, an allowance of R700.00/m² based on the area of the offices will be available to the purchaser/ tenant payable on transfer. The rationale for including the finishes in the price of the unit is to ensure that this cost can be covered by the investors’ bond. Alternatively, the purchaser can elect to deduct this off the price and pay for the installation out of his own cashflow.
Note: The owner of each unit will be responsible for his own fit-out of the premises utilising this allowance. The Developers will however undertake the installation on behalf of the owner, upon request. Alternatively the Developer can provide a list of recommended contractors specialising in tenant installations should this be required. The schedule of finishes is available on request from Brydens Group.
Each unit’s electricity will be separately metered.

4. LENCHEN STREET OFFICES BODY CORPORATE
The Lenchen Street sectional title scheme will have a Body Corporate of elected owners who will administer the office block themselves, including the security, landscaping, maintenance and other issues common to the office park.

5. THE DEVELOPMENT TEAM
The development will be undertaken by Brydens Commercial Properties, an active developer in the Johannesburg region, with an excellent track record.
A full Professional Team will be employed on the contract as follows :

Architects : Bromag Architects
Project Manager: Brydens
Quantity Surveyor: Russell Irons & Associates
Electrical Engineer: DLTH
Civil Engineer: BSM Baker
Landscape Architect: To be advised.

6. DEVELOPMENT PERIOD
The building will be complete in the third Quarter of 2008. The units including the full specification, are priced from R12 000.00/m². The prospective purchaser is also obliged to purchase a pro-rated ratio of basement/ shadenet and/ or open bays as per the Purchase Option Schedule.

8. INITIAL RETURNS & RENTALS
Generally, the investment will show a return based on the bonded amount of approximately 10%, based on office rentals of R90.00/ m² patios at R15.00/m², basement bays at R400.00/ bay, covered bays at R300/ bays, and open bays at R200.00/ bay. The 1st year return calculated here is based on a deposit of 20%.

9. OPERATING COSTS
An estimate of the operating costs of R10.78/ m² is shown below for information.

10. SECTIONAL TITLE
Sectional title ownership is an accepted form of property tenure in South Africa, against which banks are more than prepared to grant bond finance.
Whereas in freehold title the owner has ownership over the land, under a Sectional Title scheme the owner would have the exclusive use of a unit (being the internal area of the office as defined by the four walls surrounding the unit), as well as other defined areas such as parking bays, garages, storerooms and the like.
The common area, i.e. gardens, access ways, etc., are held by each unit in an undivided share.
Upon registration of the Sectional Title scheme the Body Corporate is automatically instated, and has the ability to enter into contractual relationships with security, landscape gardeners, and the like.

11. SUSPENSIVE CONDITIONS
The offer herewith is subject to the following suspensive conditions :

11.1 The Site Development Plan being approved by the relevant authorities

11.2 50% of the sales being achieved

12. CONCLUSION
The concept of small sectional title offices has been well received in the Johannesburg and Pretoria areas. The Developers are considered leaders in this field and have completed a number of schemes all of which have been sold out within months of being launched.
The concept is based on the following critical success factors :

12.1 AFFORDABILITY
The owner-occupier will find that the bond repayment is commensurate with a market- related rental.

12.2 QUALITY
The sectional title units are of A-grade quality with a more than adequate installation allowance of R700/m²

12.3 WASTAGE FACTOR
Tenants and owner-occupiers alike are averse to paying rental on a common area, which can be as much as 30% of the rental in traditionally designed office blocks.
Typically common areas consist of large entrance foyers, lobbies, toilets and communal kitchen facilities, as well as the passages accessing the individual tenants’ premises. In the scheme on offer, although the lobbies are well appointed, they are modest in size and do not form part of the rentable area of the premises, nor do they form part of the purchase price of each unit.

12.4 OWN FRONT DOOR
The owner-occupier or tenant of the offices is afforded a high profile with a front door off the main lobby, and not at the end of a dark corridor, as is the case in traditional office blocks.

12.5 PRIVATE BALCONIES/ TERRACES
The provision of one or more private balconies/ terraces in each unit is a highly attractive bonus.

12.6 SELF-CONTAINED TOILETS AND KITCHENS
The provision of private toilets and kitchenettes in each unit provides each owner-occupier/ tenant with its own autonomy.

12.7 ASSET CREATION
Each sectional title unit is a highly sort after investment and will provide the owner/occupier with a long-term revenue producing asset, as well as providing increasing capital growth.
In conclusion, the small sectional title office concept is highly focussed on the needs of the smaller business, and has been extremely successfully implemented by the developer in schemes elsewhere.

OPERATING COSTS

Assessment rates	R1.00
Other Municipal charges	R0.32
Garden maintenance	R0.61
Window Cleaning	R0.24
Cleaning	R0.40
Insurance	R0.82
Security (based on 24 hours)	R4.39
Administration fees	R1.95
Eelectricity & water	As consumed
Airconditioning maintenance (owner's responsibility)	-
Meter reading	R0.20
Audit fee	R0.10
Pest Control	R0.25
Maintenance sinking fund	R0.50
TOTAL	R10.78