This well-established hardware and building supplies store has been successfully operating for over 30 years in a busy shopping center within a densely populated urban area. The business has built a strong reputation and maintains a loyal customer base, with a steady flow of individual buyers and contractors seeking quality materials for their projects. Additionally, a portion of sales comes from wholesale transactions with smaller operators who benefit from the business’s bulk purchasing power. While there are several established competitors in the area, each has built its own customer base over the years, allowing this business to thrive alongside them. A unique advantage is the inclusion of a small manufacturing operation for blocks, lintels, and pillars, adding further revenue streams. The current owner has a valid reason for selling, presenting an excellent opportunity for a new owner to take over a thriving, well-positioned business. The selling price excludes current sale stock at cost.
- Asking Price:
- R12,800,000 Furniture / Fixtures included
- Sales Revenue:
- R35,000,000
- Cash Flow:
- R4,500,000
Property Information
- Real Estate:
-
Lease
- Lease Terms:
-
The seller owns the centre and will enter into a long-term lease agreement with the purchaser
- Leasehold Rent:
-
R840,000 per annum
- Location:
-
Located in a small centre in a densely populated urban neighbourhood
- Premises Details:
-
800 square meters unders roof with large parking area and several outdoor yard spaces
- Size in square feet:
- 800 square meters under roof
Business Operation
- Expansion Potential:
-
With its established reputation and prime location, the business is well-positioned for further growth under new ownership.The business offers several avenues for expansion, including increasing its wholesale trade to small contractors and developers, expanding the product range, enhancing the small manufacturing operation by increasing production capacity or diversifying into additional precast products.
- Competition / Market:
-
There are three established competitors all with their own distinct operating priorities and customer bases. This has been the status quo for years.
- Reasons for selling:
-
Planned emigration
- Trading hours:
-
Monday to Friday 8:30-17:00; Saturday and Sunday 8:30-13:00
- Employees:
- 15 permanent plus casual staff
- Years established:
- 30
Other Information
- Support & training:
-
Appropriate handover from current owner and team
- Furniture / Fixtures value:
- R700,000 - included in the asking price
- Inventory / Stock value:
- R9,000,000
