While we have purchased the property, transfer of the property will only take place on 1 June 2019. In the interim we will be paying Occupational Interest of R150,000 ex VAT per month from 1 June 2018 until 31 May 2019. We are not in a position financially to purchase this property immediately and our purchase is contingent on us raising the full purchase price of R16,1 million. Our plan is to sub-divide the entire space into sections that we can sell off to raise the capital required for the purchase by mid-April 2019.
Southpoint Church will be purchasing a portion of the building with its capital while Southpoint Ministries, an entity set-up by our elders to manage a property purchase will own the remaining portion. This will allow Southpoint Church to continue to focus on its ministry opportunities and retain its NPO and PBO status. Southpoint Ministries will focus on the management of the property.
We will require an additional R1,15 million from 1 June 2018 until 31 May 2019 to be in a position to proceed with the purchase of this property on 1 June 2019. This is a monthly increase of about R96,000 in tithes and offerings.
In addition to this, we will need to raise about R5 million in debt to complete the purchase. We would love to reduce this debt number substantially through the Come Together Initiative.