33 Old Fort Road, Hoy Park, Durban
Sequelprops concluded the acquisition of a 10 400m2 motor dealership facility, located on the corner of Old Fort Road and Prince Alfred Street, Hoy Park, Durban in early 2011. The property, which is leased to a prominent national General Motors dealer on a long lease, is strategically located in a node that is home to a number of other motor retailers and serves the central Durban market.
The property was acquired for R71 million in February 2011 at an initial income yield of 9.3%. Debt leverage of 75% of the asset value was utilised in order to enhance long-term investment yields.
The investment company was a private equity joint venture between the shareholders of Sequelprops, who collectively held 10% of the equity and a charitable foundation, which owned the remaining 90% of the company. The Squelprops shareholders realised the investment in 2014.