Property Description

Prime Investment Opportunity – Retail Fuel & Commercial Site in Kathu

Selling Price (Excl. VAT): R110,000,000

Return on Investment: ±16% (with 8% annual escalation & 8% cash return)

This exceptional property offers investors a rare opportunity to acquire a high-performing retail fuel site with strong lease agreements and multiple income streams in Kathu – one of South Africa’s fastest growing mining towns.

📍 Property Overview

Location: Portion 18, Farm 462, Kuruman Road, Kathu

Erf Size: 1.9675 ha

Building Size: 6,216 m2

Zoning: Retail & Industrial

Fuel Site Details

Retail Partner: Zelmond (10-year lease from Dec 2014, ending Dec 2024; renewable 5+10 years)

Supply Agreement: Valid until 2034

Historical Volumes: ±600,000 litres/month

Income Structure:

Base Rental (Excl. VAT): R923,244 p.a.

Variable Rental: R0.59 per litre after 350,000 litres p.m.

Total Retail Income: ±R2,451,432 p.a.

🏢 Additional Rental Income (Warehouses & Commercial Tenants)

Unit 1 – JNT | R864,600 p.a. | 10 years | 7% escalation

Unit 2A – Diesel Electric | R264,000 p.a. | 10+5 years | 10% escalation

Unit 2B – Trysome | R297,000 p.a. | 10+5 years | 10% escalation

Unit 2C.1 – 100m2 (untenanted) | R180,000 p.a. | Available for letting

Unit 2C.2 – 120m2 (untenanted) | R216,000 p.a. | Available for letting

Unit 2C.3 – 90m2 (untenanted) | R108,000 p.a. | Available for letting

Unit 3 – Takealot | R496,800 p.a. | 5 years | 10% escalation

Unit 4 – Wellness Waterpro | R701,280 p.a. | 3 years | 10% escalation

💡 Extra Value

Borehole water access

Electricity for current solar system + allowance for solar upgrade

Total Rental Income: R8,172,924 p.a.

Annual escalations between 7%–10% ensure long-term growth

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✅ Key Highlights for Investors

Attractive ROI: ±16% with stable escalations

Long-term security: Supply agreement until 2034

Diverse tenant mix: National brands + strong industrial tenants

High growth area: Kathu is a booming hub fueled by mining activity

Expansion upside: Vacant warehouse units for additional rental growth

📌 Asking Price: R110,000,000 (Excl. VAT)

This is a turnkey, income-generating property with guaranteed escalations, stable leases, and an established retail fuel operation — a rare opportunity for filling station owners and serious property investors.