Is a property valuation available?
The municipal value is R1,990,000. This property consists of spacious 11 en-suite bedrooms, dining room, kitchen, separate bathroom in entrance, conference room to host 22 guests, a beautiful english garden and ample parking. Very good security with high walls, electric fencing and armed response. The business broker will supply a serious buyer with a full detailed valuation report on the property as well as the business. Profitable with average monthly income of R106,425.
What Advertising/Marketing is carried out?
This guest house is an owner-run guest house offering superior accommodation and warm hospitality in a peaceful environment, yet it is only minutes away from the heart of Africa's liveliest city. Built in 1898, only 12 years after gold was discovered in Johannesburg, the majestic old manor was on of the 1st houses to be built in the area. It has been a home of Johannesburgs most prominent families. The house has been carefully restored to reflect its distinguished heritage, characterized by the old world charm and comfort of high pressed steel ceilings, thick walls and wooden floors. Set in an english garden with gazebo and consevatory for guests relaxation, this gracious home offers supurb accommodation and excellent food along with personal care and attention. 11 Spacious and en-suite rooms offer old-fashioned comfort combined with modern convenience. Handsome period pieces create a relaxed sense of elegance with fresh flowers and complimentary sherry for the additional enjoyment of the guests. This guest house forms part of a group of four guest houses in the same area. They have many commercial clients who return for bookings. They do have a web site. High occupancy has been the order of the day due to the excellent service and ambiance.
Is the property being let by a letting agency?
This property and guest house forms part of a group of four guest houses and is owner run.
Is the business VAT Registered?
The business forms part of a group of companies and the operating company is VAT registered.
What VAT documentation is on file?
VAT documentation will be made available during the due diligence.
Are there up-to-date Management Accounts available?
The owner provides monthly occupancy figures which are on file.
What Balance Sheet and Income Statements are available?
Financial statements, prepared by the auditor, for the period ending February 2016 are on file.
What is the age analysis of the debtors book?
The guests, mainly companies, pay via EFT or credit card machine. Only a very small percentage of the guests pay with notes.
Is Seller finance available and for what amount?
The seller is open to negotiations. This business forms part of a group of four guest houses in the area.
How could the income of the property be increased?
More advertising and marketing of corporate clients to improve occupancy percentage.
How involved is the Owner in running the business?
The owner is 100% involved in the group of companies. Management is running the operation side of the business.
Do you require a licence?
Zoning certificates and concent from the council are on file.
What are the main assets of the business?
The property and all its furniture and fittings.
Are any items not included in the sale?
A full asset list will be made available for due diligence and the sales agreement.
What is their overall condition?
The property is very well maintained with beautiful furniture and fittings.
How have they been valued ?
The business broker will supply a valuation report to serious buyers.
Are they presently insured?
The business and its assets are comprehensively insured.
Well established guest house with high occupancy rates and repeat commercial clients. Good management in place.
No weaknesses are noted, other than service delivery due to load shedding by City Power.
Marketing to corporate clients to offer conference facilities with en-suite facilities for the delegates. The guest house only taps in to 30% of the nearby corporate clients. It is situated in between UJ and Wits Universities, next to SABC, Media 24 in Media Park, and 2 private hospitals. The net care rehabilitation center is also very close where family members of patients are looking for accommodation. The majority of their current bookings are from NGO's in Braamfontein and surrounding areas looking to book delegates with conference facilities and transport available.
No real threats are identified.
What is the reason for the sale?
The seller wishes to retire.
Why is this property a good investment?
Beautiful and well maintained property with a good track record and high occupancy rate. Average net profit per month of R132,205 makes this a good return on investment, 19% and a buyer will recover his investment within 64 months.
What is the asking price?
The asking price is R8,500,000.
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