De La Porte Property Group has sold 16 Esso Road in Montague Gardens for R6,325,000.
The property was purchased as an investment by the owners of the business which occupies the property. This transaction made sense for the tenant to purchase the property as the rental was not much less than the bond repayment. With annual escalations, the tenant will be better off from a cash flow perspective within 2.5 years of purchasing the property. There are always pros and cons when it comes to buying versus renting, however, it does make sense for a tenant to buy a property they occupy when they are settled in the property, financially sound and the property will suit their needs for the foreseeable future. This property was sold at a net initial yield of 10,5% based on the rental being paid by the tenant. The property consisted mainly of offices with a workshop area.
De La Porte Property Group, specialises in Commercial and Industrial property in the West Coast growth corridor.
Investment properties are in high demand in Montague Gardens which is one of Cape Town’s most popular areas for warehousing, distribution and service businesses. Montague Gardens is situated in the rapidly growing West Coast growth node.
De La Porte Property Group is a niche, location-based industrial & commercial property brokerage. We are based in Milnerton and focus on the following main services in Montague Gardens, Century City and surrounding areas in Cape Town’s rapidly growing West Coast Growth nodes such as Atlantic Hills, Atlas Gardens, Killarney Gardens, Montague Park, Richmond Park and Rivergate.
Leasing of industrial and commercial property: units in mixed-use business parks, logistics properties, warehouses, factories and offices
Sales of industrial and commercial property: units in mixed-use business parks, logistics properties, owner occupier, tenanted investment properties and vacant land.
