Tenant Free Equity Model

Africrest Properties will J.V. with tenants to purchase their existing or new building.

To date our Tenant Free Equity Model has been extremely successful for both tenant and landlord.

Benefits to the tenant include:

- Zero cash investment- the tenant receives free equity in the building without affecting their cash flow (the tenant can rather put money into their own business than into the building).

- Hassle free property acquisition- the tenant does not have to deal with the raising of finance for the building or spend time identifying a suitable building.

- Hassle free property ownership- the tenant does not have to deal with the issues of owning a property (council issues, zoning issues, structural issues, leasing issues, property management issues, etc.).

- Partner with property experts.

- Receive the benefits of in-house property management.

- Africrest’s established property network will increase chances of acquiring the best building at the best price.

Deals will be entered into according to the following guidelines:

- The tenant signs a long term lease for a minimum of 2,000m2 (the exact qualifying amount of space depends on the area the building is located in. The tenant must occupy a substantial portion of the building).

- Africrest will find a suitable building (if one has not already been found).

- Africrest will fund the deal, the tenant’s relocation costs and the tenant fit out costs.

- The tenant will receive up to 30% free equity in the building. This could be increased up to 50% if the tenants wishes to put in their own capital.

- Deal dependant factors to consider are: the length of the lease, financial strength of the tenant, quality of the building and area, the funding structure.

- The minimum deal size is R15 million, there is no maximum.

Please see the Press Articles page to see some of the wonderful success all parties have had through deals done using this model.

Please contact us to see if your business qualifies for this deal.

T & C’s apply.