Centurion Motor Exchange Business Plan — Company Overview

Legal structure, ownership, objectives and the current stage of development.

Section 3 of 28

Company Overview

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A newly incorporated, founder-led retailer with a two-site plan and staged outside capital

The Company is a private company to be incorporated under the Companies Act, 2006 in October 2026. It will trade as Centurion Motor Exchange from a single leased site in Centurion from March 2027, adding a second leased site in Midrand from March 2029. It has no trading history, no legacy liabilities and no existing contracts; its assets at close will be the capital raised, the site lease, the fit-out and the opening stock.

Table 3.1: Company snapshot

Legal name	Centurion Pre-Owned Vehicle Company (Pty) Ltd
Trading name	Centurion Motor Exchange
Legal form	Private company (Companies Act, 2006); VAT vendor; February year-end
Activity	Retail of pre-owned passenger and light commercial vehicles; vehicle buying; finance and insurance intermediation
Sites	Site 1: Centurion, 4,200 m² leased stand (March 2027). Site 2: Midrand, c. 3,800 m² (March 2029, milestone-gated)
Stage	Pre-launch: capital raising, site negotiation and licensing (September 2026)
Headcount	Site 1 and head office: 22 at launch; group: 40 from FY30
Funding sought	R30m equity; R6m term loan; R3.5m asset finance; floor-plan up to R50m
B-BBEE	Founders’ holding company is black-owned; target Level 2 on the Generic Codes by FY30

Ownership moves from 60/40 to 50/50 when the Investor funds Site 2

At close the Founders’ holding company subscribes R6m for 60% of the ordinary shares and the Investor subscribes R12m for 40% (Tranche A). The Founders’ larger holding for a smaller cash contribution reflects their operating capability, supplier and bank relationships, and the pre-launch work that creates the project’s value; the discounted cash-flow analysis in Section 22 supports this. On satisfaction of the Site 2 milestones, the Investor subscribes a further R12m (Tranche B) at a pre-agreed price that takes its holding to 50%. That price is twice the Tranche A price per share, which rewards the Founders for proving Site 1 and protects the Investor from paying for expansion before it is justified.

Table 3.2: Shareholding and capital contributions

Shareholder	Cash contributed	After Tranche A	After Tranche B	Rights
Founders’ HoldCo	R6.0m	60%	50%	Management control; 2 board seats
Investor	R12.0m + R12.0m	40%	50%	2 board seats; reserved matters; information rights
Total	R30.0m	100%	100%	Independent chair appointed jointly

Mission, vision and strategic objectives

Mission

Make buying a used car in Gauteng as safe and transparent as buying a new one, at a price most households can afford.

Vision

Be the most trusted independent used-vehicle retailer on the N1 corridor by FY32, with a format that can be replicated across Gauteng.

Strategic objectives (FY32)

Retail c. 1,465 vehicles a year across two sites at an average of R41k gross profit per unit.
Deliver R15.4m EBITDA and R19m of closing cash with no term debt outstanding.
Hold stock days at or below 45 and aged stock (>90 days) below 10% of inventory.
Maintain a customer rating of 4.6/5 or better on public review platforms, with at least 25% of sales from repeat and referral customers.

Sites, licences and partnerships are defined; none requires novel approval

Table 3.3: Operating locations

	Site 1 — Centurion	Site 2 — Midrand
Opening	March 2027 (FY28)	March 2029 (FY30), subject to milestones
Stand size	4,200 m² leased, arterial frontage, within 3 km of the N1	c. 3,800 m² leased, arterial frontage near the N1
Display capacity	90–110 vehicles; minimum 60-unit floor	80–95 vehicles; minimum 50-unit floor
Facilities	Modular showroom, F&I offices, 4-bay recon workshop, wash bay, secured yard	As Site 1, with 3-bay workshop
Mature volume (base)	60 retail units/month	52 retail units/month
Rent (year 1 of lease)	R185,000 per month, 7% escalation	R170,000 per month in FY28 terms, 7% escalation
Lease	5 + 5 years; landlord consent for signage and workshop use	5 + 5 years

Table 3.4: Licences, registrations and regulatory requirements

Requirement	Authority / framework	Status and timing
Motor dealer registration and motor trade number	National Road Traffic Act; provincial registering authority	Apply on lease signature; required before stock is registered to the Company
Municipal zoning and business licence	City of Tshwane / City of Johannesburg	Landlord confirms zoning; business licence before opening
Juristic representative of a licensed FSP	Financial Advisory and Intermediary Services Act	F&I staff meet fit-and-proper requirements before selling insurance products
Reporting institution obligations	Financial Intelligence Centre Act (motor dealers)	Registration, risk management programme and cash-threshold reporting
Consumer protection and industry code	Consumer Protection Act; Automotive Industry Code of Conduct; Motor Industry Ombudsman	Complaints process, disclosure and warranty policy in place at launch
Data protection	Protection of Personal Information Act	Information officer appointed; consent and retention policy
Workshop and environmental	Occupational Health and Safety Act; municipal by-laws on used oil and wash-water	Registered waste-oil collector; oil separator in wash bay

Intended strategic partners

Vehicle finance: all four major banks and at least one specialist lender, with dealer agreements covering submissions, payouts and finance commission.
Floor-plan: a single commercial bank facility, with the term loan provided by a development-finance lender active in SME retail.
Value-added products: a licensed insurer and warranty administrator appointing the Company as juristic representative.
Demand generation: national classifieds platforms and the Company’s own website and social channels.
Valuation and risk data: vehicle-history, finance-encumbrance and police-clearance checks on every purchase.