Tenant Partnership Model:
Africrest Properties will partner with you to purchase your existing or new building.
Africrest will find, fund and manage your perfect property.
Some of our partners have included:
Benefits to the tenant include:
- Zero cash investment – the tenant receives a free stake in the building without affecting their cash flow. This allows the tenant to 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.
Why we offer this:
Over the years we have seen that many tenants want to have ownership in their property but prefer to put free cashflow back into growing their business which will often grow at a faster rate than a property investment- our model gives the tenant the best of both worlds.
Africrest would rather have a full building with a stable tenant and to achieve this, we share in the upside of the property with the tenant.
Deals will be entered into according to the following guidelines:
The tenant signs a market related, long-term lease, the exact qualifying amount of space depends on the area in which the building is located. The tenant must occupy a substantial portion of the building (but does not need to occupy the entire property).
- 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 where the tenant’s rental equates to R150,000.00 per month (before VAT and utilities). There is no maximum.
Below are testimonials from some of our Tenant Partners.
"Working with Africrest has been a fruitful and seamless experience. We were attracted by the tenant partnership model which has allowed Sorbet to continue growing our business without constraining our capital while, at the same time, enjoying the benefits of having partial ownership in our property"Ian Fuhr, Founder and CEO of Sorbet
"We have been looking for a home for our growing business together with Africrest and we believe that 132 Jan Smuts offers what we need in terms of location, functionality of space and easy access for both clients and staff."Guy Brooks, CEO and Founder of CSS
"Our company recently purchased a building in partnership with Africrest. The results are encouraging. We are looking forward to a long term and prosperous future with the Africrest Team."Mark and Didi Friedman, Founders and Owners of Lounge Around
"Dealing with Africrest has been a great experience, their professionalism and knowledge of the local property market ensured the transaction progressed seamlessly. Creating an Africrest joint venture allowed us access to the right factory without any of the capital outlays usually required, allowing us rather to invest in new equipment and machinery to build our business"David Milwidsky, Segal Metals