Contact Details:
Consolidated Performance Projects (Pty) Ltd
2nd Floor, Office 15, Finance House
25 Ernest Oppenheimer Dr
Bruma
Johannesburg
Gauteng
2000
South Africa
Tel: +27 (0)12 942 1345
Fax: +27 (0)86 690 5965
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Property Investment: Build your own Industrial Steel Structure
Product News Thursday, February 20, 2014: Consolidated Performance Projects (Pty) Ltd
Property owners with large pieces of vacant industrial land or factory and manufacturing concern owners that are spending large amounts every month on rental income should seriously consider developing their own property for rental or occupation purposes.
The returns on purchasing your own pre-engineered steel buildings in kit form and building them yourself or using a project manager to erect it, makes solid financial sense.
Lets examine the facts based on developing a 1800m2 Industrial Steel Structure, with a 150m2 mezzanine floor and 300m2 double story office space (based on prices in Wadeville, Gauteng). Land needed to develop on, for safety and versatility it is recommended to purchase about double the land area compared to the ground floor size of your factory development
Average rental cost/ landlord income R40 per m2, thus the total monthly income on 1800m2 ground floor plus 150m2 mezzanine floor and 300m2 office space, total space is 2200m2 which equals a total rent of R 88 000 per month.
Compare this to:
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Land cost
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3623 m2 at R600 per m2 equals a total cost of
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R2 173 800
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Building cost
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30 x 60m (1800m2) Factory
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(DIY Package From: R820 055)
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Installed From:
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R1 220 000
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(Including Roof & Side sheeting
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Concrete Floor from:
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R 680 000
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Complete Office Section (Double storey) 300m2: From
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R990 000
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Concrete Mezzanine 150m2: From
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R143 000
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Total property investment
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R5 206 800
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Total annual rental income
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R1 056 000
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60 month revenue income
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R5 280 000
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Based on the above income model, you will have recover your total capital input within 5 years, it will take a while longer if you took a property loan. Based on reasonable rental escultions and property value increases, your property can easily return above 25 percent return on investment per annum.
Please note: The industrial steel structure prices are based on the Consolidated Performance Projects promotional offer valid till 28 February 2011 and interested parties will be responsible for providing the land for development.
