07/09/2026
R 3,995,000
For Sale Commercial Property For Sale in Southernwood, East London
Currently offers accommodation ,and Retail Opportunity
Floor size 400 m2 1104 m2Land Size 6
Parking
28 Roomed Investment Opportunity
Exceptional High-Yield Investment with Multiple Income Streams and Significant Upside
This is a rare opportunity to acquire a well-established income-producing property offering immediate cash flow, multiple revenue streams and substantial value-add potential.
The property currently comprises 28 income-generating accommodation rooms, with the opportunity to convert an additional two storerooms and the manager's office into further rentable accommodation, increasing the overall income potential with relatively modest capital investment.
Beyond the accommodation income, the property benefits from two established complementary businesses:
A commercial laundry tenant, providing an additional rental income stream.
An on-site purified water business currently generating approximately R200,000 in annual turnover. The operation is supported by its own borehole and reverse osmosis purification system, with water sold directly from an on-site kiosk. There is further opportunity to expand the business through bottled water production and local wholesale distribution, unlocking an additional revenue source.
At the current asking price, the property delivers an impressive 15% yield, with clear opportunities for an experienced investor to enhance the accommodation offering, increase occupancy and optimise ancillary income streams, creating the potential to achieve returns of up to 20%.
While the property would benefit from some cosmetic refurbishment and general upgrading, it is being sold as a fully operational going concern, allowing a purchaser to generate income from day one while implementing improvements over time.
The property is zoned High Density Residential, creating excellent flexibility for future redevelopment or repositioning. It is particularly well suited to student accommodation, workforce housing or affordable residential accommodation, making it an attractive acquisition for investors seeking to expand an existing residential portfolio or establish a high-performing accommodation business.
Investment Highlights
28 Wi-Fi-connected, income-producing accommodation rooms
Potential to create additional 3 rooms from existing ancillary spaces
Commercial laundry rental providing diversified income
Borehole and reverse osmosis water purification plant
Established water business with approximately R200,000 annual turnover
Opportunity to expand into bottled water production and distribution
Strong 15% yield at the asking price with potential to increase to approximately 20%
Sold as a going concern with immediate income
High Density Residential zoning with redevelopment flexibility
Ideal for student accommodation, affordable housing or experienced residential investors
Each room has its own prepaid meter
Both communal kitchens have a prepaid meter and are preloaded each month, and are based on a first-come, first-served basis
4-phase electricity on the property
3 municipal prepaid meters
High-speed internet access
Properties offering established cash flow, diversified income streams and genuine opportunities to significantly increase returns are seldom available. This is an exceptional opportunity for investors looking to unlock substantial value while benefiting from immediate income and long-term capital growth potential.
