Frequently Asked Questions about Montague Gardens, Milnerton and the West Coast Growth Node
Want to know more about Montague Gardens, Century City and Cape Town’s West Coast Commercial and Industrial Property node?
Read our FAQs. We have outlined frequently asked questions about renting or buying Commercial and Industrial Real Estate in the greater Milnerton Area which consists of Montague Gardens, Century City, Montague Park, Killarney Gardens, Richmond Park and Atlantic Hills.
Why should I locate my business in Montague Gardens?
Top 10 reasons to locate your business to Montague Gardens.
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Close to Century City, Canal Walk Shopping, Residential and Hotels
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15 minutes from Cape Town Harbour and Paarden Eiland
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Close To N1 National Road to access Cape Towns Northern Suburbs, Paarl and Stellenbosch
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Montague Gardens is the gateway to Cape Town’s rapidly growing West Coast Growth Node.
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Multiple road access points and 15 minutes from Cape Town International Airport
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Close to top courier and logistics companies
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15 minutes from the Cape Town CBD
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Close to Labour
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Close to Public Transport
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Well run City Improvement District
Is there land for development in Montague Gardens?
Montague Gardens is fully developed. There are few vacant parcels of land available. There are areas close to Montague Garden that still have significant vacant land holdings for turnkey industrial property development.
These areas are Montague Park, Rivergate, Richmond Park and Atlantic Hills.
What rentals can I expect to pay for a warehouse in Montague Gardens?
Currently, the lowest rental per square metre in Montague Gardens is approximately R75. This is for an older, low eaves building with limited yard space. The highest rental is approximately R115 per m² for a dedicated courier building which has a large yard, i.e the building covers only around one third of the land
On average, rentals for modern industrial buildings with reasonable height, reasonable access and non-asbestos roofing range between R75-R 95 per m².
What is the difference between a Captitalization Rate and Net Initial Yield?
Capitalization rate and Net initial yield are similar but not the same concept although they are frequently used interchangeably by brokers.
Capitalization rates imply that the property is let at market rentals into perpetuity and used to compare similar investment properties. Net yields are simply the first year’s income less expenses divided by the purchase price expressed as a percentage. This is the same basic formula used in determining a Capitalization or “Cap” rate but the essential difference is the rental is the actual net rental and may be above and below the market rental.
More advanced methods of valuation use discounted cash flow and net present value comparisons.
What is the difference between Gross and Net Rentals?
Gross Rental is the total rent payable by a tenant, whereas Net Rental is the tenant’s rental portion that excludes their contribution to property operating costs. These excluded costs could comprise of rates, insurance, property maintenance, security etc. If the Landlord is a registered VAT vendor (most commercial and industrial landlord’s are VAT vendors) then VAT will be added to the rental. Generally, De La Porte Property Group quotes Gross rentals excluding VAT.
Other terms for net leases are a FRI (Fully repairing, maintaining and insuring lease) lease or Triple Net Lease. Both these terms imply that rates, insurance and property maintenance are excluded from the net rental and are for the tenant’s account.