finweek Property 2020

BUSINESS. PERSONAL. FAMILY. LAW. For all your property and related needs, get in touch with our Conveyancing and Real Estate Department.

Tel: 086 110 2283 Email: jozanne@vzlr.co.za Web: www.vzlr.co.za

PRETORIA | JOHANNESBURG | NELSPRUIT | BLOEMFONTEIN

Air-conditioning

Property Development

Air-conditioning .............................................................. 7

Property Developers ................................................ 3, 23

Architects

Property Funds

Architects ........................................................................ 8

Property Funds ............................................................ 26

Auctions

Property Investments

Auctioneers ..................................................................... 9

Property Investment ................................................... 25

Building & Construction

Real Estate

Building & Construction .............................................. 11

Estate Agents .............................................................. 29 Real Estate Agents - Residential ................................ 40

Commercial Property Commercial Space ................................................ 12, 13

Energy

Retirement Retirement Estate ....................................................... 31

Solar .............................................................................. 15

Retirement Villages ............................................... 32, 33

Flooring

Security

Flooring ........................................................................ 16

Integrated Security Systems Solutions .................... 35

Interior Design

Utilities

Interior Design ............................................................. 17 Project Management ................................................... 19

Prepaid Metering ......................................................... 37

Water Storage Solutions

Legal

Tanks ............................................................................ 39

Attorneys ......................................................................... 2 Conveyancing & Property Law Attorneys ........... 20, 21

Copyright Š finweek Property is published by Cold Press Media (Pty) Ltd for New Media, a division of Media24 (Pty) Ltd. Copyright Cold Press Media. All rights reserved. Reproduction in whole or part is prohibited without prior permissions of the publisher.

Opinions expressed do not necessarily reflect those of New Media, a division of Media24 (Pty) Ltd. All correspondence about finweek Property should be directed to Cold Press Media.

4

f inweek Property Portfolio

SOUTH AFRICA’s

LEADING INVESTMENT AND FINANCIAL MAGAZINE COMMODITIES

MARKETS

WHERE WILL THE NEXT CURVEBALL LAND? ENGL ISH EDITI

MARKETS

WILL MINERS EQUITIES PARTY SURVIVE AS WORLD DOWNGRADE ESKOM? DEBT MOUNTS HOW TO UNLIKELY TO BE BE A BETTER STER DISA ENGLISH A EDITION INVESTOR IN 2020 SIMON BROWN

SHARE VIEWS ON:

MTN METROFILE TONGAAT HULETT

SA ECONOMY

ECONOMY

FIND US AT: fin24.com/finweek

FIND US AT: fin24.com/finweek

ON

OPINION

GOING CAN GREEN NOWHERE ENERGY LIGHT SOON THE WAY FOR SA?

SHARE VIEWS ON:

STARBUCKS RICHEMONT WOOLWORTHS

ENGL ISH EDITIO N

FIND US AT: fin24.com/finweek

16 January - 5 February 2020 EVERY TWO WEEKS EVERY TWO WEEKS 12 December 2019 - 15

January 2020

TAMING THE DR GON

6 February - 19 February 2020 EVERY TWO WEEKS

PICKING PENNY STOCKS

CAN SA CASH IN ON CHINA’S NEW-LOOK ECONOMY?

cover story penny stocks

t

LOCAL ALCOHOL-FREE GIN AND TONIC

WHICH PENNY STOCKS ARE WORTH A THOUGHT?

By Jaco Visser

There are four penny stocks worth looking at on the JSE. Investors should, however, analyse their choices of these types of shares carefully.

28

finweek 6 February 2020

here are numerous penny stocks – small-cap companies with a share price under R1 – on the JSE’s main board and they may seem attractive to retail investors, especially first-timers who want to enter the world of investment.

A few former mid-cap names – in particular construction companies such as Aveng, Basil Read and Group Five – have fallen to the penny-stock category as South Africa’s economy tanks under poor government policy decisions, and a dearth of fixed capital investment by companies.

Nevertheless, there are several penny stocks that shimmer and may prompt a closer look, but investors shouldn’t necessarily be adding them to their portfolios. finweek has identified four stocks that are geared towards a changed future economy, or pose value in terms of their share price.

The returns story on the FTSE/JSE Small Cap Index is a mixed one at best. The index – which includes those stocks not selected for the FTSE/JSE Top 40 Index or the FTSE/JSE Mid Cap Index – declined 4.1% last year, slumped 14.6% in 2018, rose 3% in 2017 and jumped 20.9% in 2016 (see the table below for comparison).

Considerations with penny stocks

The decision to invest in penny stocks should be premised on a solid analysis of a company.

“With penny stocks, much of the value lies in their prospective growth in income and as a result, historical valuations are of lesser significance,” says Ricus Reeders, portfolio manager at PSG Securities. He recommends two factors to look at when considering penny stocks due to margins in these companies typically being slim.

HOW DID THE SMALL-CAP STOCKS FARE IN COMPARISON WITH OTHER SHARES?

SMALL CAP INDEX

MID CAP INDEX

2019

-4.1%

15.6%

12.4%

2018

YEAR

-14.6%

-9.7%

-8.3%

2017

3%

7.4%

2016

20.9%

26.9%

2015

-3.9%

-7.5%

* Total return measured year-on-year

www.fin24.com/finweek

@finweek

TOP 40 INDEX

23.1% -1.6% 7.5% SOURCE: FTSE Russell

finweek

WOOS THE WORLD

Firstly, the potential investor should look at a company’s earnings momentum. “Are the company’s earnings not only growing but is the rate of growth also increasing?” he asks. The momentum in earnings could either be the result of revenue or margin increases or the effective management of cash flow, according to Reeders.

Secondly, the investor should determine whether growth in the company’s assets, expenses and debt is covered by cash flow, says Reeders. “Are these two items sustainable and cogent?” he asks.

SA: R30.20 (incl. VAT) NAMIBIA: N$30.20

SA: R30.20 (incl. VAT) NAMIBIA: N$30.20

MISSES DECADE’S HITS AND A LOOK BACK AT THE

Photos: Gallo/Getty Images I Supplied

+

OFFSHORE STOCK PICKS FOR 2020

SA: R30.20 (incl. VAT) NAMIBIA: N$30.20

cover story penny stocks

THE VENTURE CAPITAL

4 POTENTIAL WINNERS ON THE JSE

TAX REGIME: DEAD OR

A SUCCESS?

Benefits and pitfalls

After deciding on a penny stock to invest in, the investor should weigh the benefits and pitfalls of investing in these instruments. There are two benefits that stand out.

“If the investor is fortunate enough to have invested in a company that grows revenue, market share and acceptance from a growing client base, returns can be well above normal,” says Reeders.

As the focus is on future potential rather than current valuation, shorter-term economic conditions might have less of an effect on the company’s business and as a result provide a measure of “non-symmetric risk”, according to him.

On the other hand, pitfalls – as is the case with any small-cap stock – should be carefully considered.

Market liquidity, in the first instance, may affect the ease of buying or, more importantly, selling a stock.

“If the stock is tightly held, the investor might not be able to buy in sufficient numbers at the right price or sell easily,” says Reeders.

The pricing mechanism may not be working properly with penny stocks.

“As penny stocks in general, because of their size and market value, do not attract institutional investment, the price might remain undervalued and neglected for a very long time,” he says. “Patience might be a virtue but an acceptable rate of return over time is what counts.”

Finally, Reeders says that the headlinegrabbing narrative of “rags to riches” is the exception in the market rather than the norm.

“Most small companies either fail or get bought by competitors – hopefully at a decent price.

Be aware of and prepared for that risk.”

Ricus Reeders Portfolio manager at PSG Securities

“If the investor is fortunate enough to have invested in a company that grows revenue, market share and acceptance from a growing client base, returns can be well above normal.”

finweek 6 February 2020

finweekmagazine

29

PRINT SUBSCRIPTIONS: SUBS@FINWEEK.CO.ZA TEL: O87 353 1305 DIGITAL SUBSCRIPTIONS: WWW.ZINIO.COM / WWW.MAGZTER.COM

www.fin24.com/finweek

@finweek

finweek

finweekmagazine

The Coolness of Being Energy Efficient

By Richard Perry, MD of Fourways

run the whole night, and if fitted to the correct-sized room, the cost of an inverter aircon’s power averages an incredibly low R1,09c per hour, providing round the clock comfort without jeopardising your electricity bill. Inverter air-conditioners like Alliance and Samsung’s first to market wind-free range can also save up to 68% of the energy used by traditional models.

Air-conditioners are a great way to keep homes cool during the intense South African summer. They are also a superb way to warm rooms when the seasons change and temperatures start to drop. ut just over a century ago, when the air-conditioner was invented, they were made extremely large in size and were terribly expensive to operate, placing a huge drain on power.

Fortunately, technology progressed and air-conditioners have evolved into the smaller, economical and environmentally-friendlier models that exist today.

Yet despite these advancements in the science of cool, misconceptions around the energy-efficient nature of air-conditioners still exist.

Enter the inverter - an innovative system that eliminates temperature oscillations and electricity waste in an air-conditioner. This improved technology adjusts the speed of an AC unit’s compressor to control the gas flow rate. Depending on a room’s climate conditions, it allows desired temperatures to be reached faster and more effectively. Once the preferred room climate is attained, the inverter drops the motor speed to approximately 10% power consumption, which circulates the air and allows the

6

f inweek Property Portfolio

unit to adjust its capacity to eliminate any temperature fluctuations. This means that temperatures remain consistent while consuming less current and power, the benefits of which extend from energy-efficiency and environmental-friendliness, to cost-effectiveness.

Everyone is looking to conserve energy, an endeavour compounded by nationwide power cuts due to load shedding that has been proven to hike up electricity bills. According to the South African Department of Energy, energy-efficient air-conditioners like those fitted with an inverter can collectively save South Africa 400 000 mega-watts of electricity annually. If

A common mistake we’ve seen made over the years by the environmentally-conscious consumer is failure to understand the importance of unit size for achieving their energy-efficiency goals. If an air-conditioner is too small for a room, it will constantly run on high to keep the room cool. If it is too big, it will cool the room too quickly and turn on intermittently without removing moisture from a room, causing clamminess. In both cases, more energy than necessary winds up being used. This is why planning and working with approved installers is recommended to determine the best unit size for a room, and if a potential AC unit has the capabilities to be one’s ideal green alternative.

Energy-efficiency also offers multiple benefits that improve people’s lives while curbing climate-warming emissions and offering respite from the heat.

These include cleaner air and less noise, making them the perfect addition for a healthier, more relaxed lifestyle. Yet another reason why energy efficiency has never been cooler.

Everyone is looking to conserve energy, an endeavour compounded by nationwide power cuts due to load shedding that has been proven to hike up electricity bills.

AIRCONDITIONING

Fourways Airconditioning: The Epitome of Cool

The Fourways Difference •

When it comes to crisp cooling and creating ambiences of pure temperature-controlled comfort, Fourways Airconditioning lives up to its name in a big way.

• •

• • •

• n the air-conditioning industry, it takes more than a few gusts of fresh air to leave a lasting impression. Becoming a trusted name means delivering quality, innovation and trusted service time and time again - all which Fourways Airconditioning has done masterfully for 20 years.

Since selling home air-conditioning units from a tiny outlet in 1999, Fourways Airconditioning has grown to become a national and international operation.

The company now boasts over 200 employees and is the largest distributor of Samsung and Alliance products to an installer network of more than 2000 dealers. Branches span across Southern Africa in every major region, with a wide logistics network.

This has enabled faster delivery of air-conditioning units and the supplies required by installers and contractors, where and when they need them. In addition, Fourways Airconditioning branches function as ‘one-stop shops’, providing all air-conditioning installation equipment such as copper piping, insulation, brackets, trunking, electrical conduit and complete installation kits to the installer network and retail market, in one convenient hub.

In line with its commitment to supply technically advanced products, Fourways Airconditioning stocks a wide range of innovative heating and cooling

air-conditioners to suit every customer’s preference. This includes split air-conditioners, cassette units, ducted units, free joint multis, under ceilings and floor standing air-conditioners; all available in inverter and non-inverter form. Selected makes and models are wind-free, energy-efficient, eco-friendly and fitted with Virus Doctor technology to eliminate dust, dangerous airborne contaminants and allergens, as well as bacteria and viruses. It is precisely this cool propensity for innovation that is helping people live well and stay comfortable no matter where they live, work or play.

While technology is always at the forefront, it has not replaced customer service. Fourways Airconditioning strives to go above and beyond all limitations to guarantee that customers receive remarkable service. This promise is delivered through on-the-spot supply capabilities combined with design assistance, technical back-up, on-site testing and long-term after-sales parts supply. What further sets Fourways Airconditioning apart is its “Four + 1 Promise,” a five year extended warranty on a majority of products that continues to impress, and retain the business of its longstanding client base. With all this and more, it’s easy to see why Fourways Aircondtioning is considered a brand on the pulse of the now - the epitome of cool.

• •

One of the largest air-conditioning and heat pump suppliers in South Africa with an established 20-year record of success Branches in every metropolitan South African city Large dedicated export team with bonded stock held in South Africa for fast and efficient delivery into over 15 African countries Largest distributor of Samsung and Alliance products 5-Year warranty on selected products Training facilities and technical support available to air-conditioner installers, plumbers, consulting engineers, contractors and architects nationwide Supplier of all air-conditioning installation equipment One of SA’s largest importers/ exporters of HVAC products Design assistance, technical back-up and long-term after-sales parts supply

Address: Honeydew Business Park, 1503 Citrus Street, Honeydew Johannesburg Contact Details: +27 (0) 11 704 6320 / 6365 sales@fourwaysaircon.co.za www.fourwaysaircon.co.za

f inweek Property Portfolio

7

ARCHITECTS

“Socially responsive, dynamic and inspired architecture.”

Our USP’s MMA maintains a diverse team of highly motivated achievers who are passionate about the culture of an architecture inspired by our continent, her landscapes and peoples. We believe “necessity is the mother of invention” and thrive on seeing our client’s challenges and aspirations as opportunities to develop unique and elegant solutions to complex problems.

MMA Design studio is a mid-sized Johannesburg-based award-winning architectural and urban design firm established as Mphethi Morojele Associated architects in 1998.

Over the past twenty-one years MMA Design studio has grown into a full suite firm offering design, technical documentation and implementation services to private, institutional and commercial clients. The practice has an enviable track record in having successfully completed projects in South Africa and abroad, designed for maximum social and cultural impact. MMA’s founder Mphethi Morojele is recognized as an important architectural voice on the continent espousing the cause for a more contextually responsive African architecture, an architecture that serves as a bridge between past and future.

Founded at the dawn of democracy the firm has, through practice, teaching and research been immersed in South Africa’s social and

8

f inweek Property Portfolio

Being a mid-sized practice we are able to draw on an adequate pool of skilled and knowledgeable resources to provide personal attention and considered solutions to all our projects.

spatial transformation.

MMA currently has an expanded footprint on the continent with current and completed projects in Mozambique, Ethiopia, Uganda, Lesotho and Botswana.

The firms’ work has featured in various international architecture exhibitions and conferences, including at the Venice Biennale, the Royal Institute of British Architects, Aedas in Berlin, and Mendrisio in Switzerland.

MMA believes strongly in the power of diversity it maintains a studio culture that enables young and dynamic architects from different walks of life to express their unique abilities and experiences.

Address: 1st Floor Suit 2B, No 8 Arnold Road, Rosebank Johannesburg Contact Details: +27 (0) 11 880 1170 / 71 +27 (0) 61 471 7916 +27 (0) 61 479 9678 info@mmastudio.co.za www.mmastudio.co.za

AUCTIONS / AUCTIONEERS

7 Reasons to Consider Auctioning Your Property If you’re planning to sell a house, keep in mind that the country’s housing market remains firmly a buyers’ market. This means that selling a property at what it’s truly worth is fare more difficult than before. This means that selling a property at what it’s truly worth is far more difficult than before.

Park Village Auctions’ Roy Lazarus gives us the Top 7 reasons why sellers should consider selling their houses on auction: •

•

•

•

owever, the good news is that there are more effective ways of selling houses during these tough times. They can be much quicker than traditional methods and still put the same amount of money in the sellers’ pockets. In fact, auctions offer a quick and safe means of selling houses quickly and safely.

•

It’s faster. Cash is received in a shorter space of time as there are no waiting periods for bonds to be granted or inspections of property etc. Buyers must have the money available at point of sale.

No haggling and negotiating as the buyer makes a decision there and then. There is no time to negotiate up and down once the hammer has fallen.

Sellers pay no commissions and only fork-out an upfront amount to cover advertising and marketing. Buyers are responsible for paying all other auction fees applicable.

There are no conditions nor nasty surprises as all conditions are read out at the auction. An auction is not a suspensive sale nor is it conditional. It is totally transparent with no hidden agendas, and this usually suits both parties.

Auction ompanies advertise extensively and provide highly effective newspaper and online

•

•

exposure to properties. In this way, they are able to attract potential buyers to one spot at one particular time. Sellers avoid the inconvenience of showing their houses to potential buyers over an extended period of time.

Live online auctions give unique access to buyers from outside of their areas. It allows local and international investors the opportunity to view and participate in auctions wherever they may be.

The seller can be kept private where sensitivities are likely to be encountered.

While auctions are advantageous for sellers in many ways, factors such a property’s location still influences how the auction performs. It is therefore important for sellers to set a reasonable, market-related reserve price.

Selling your house on auction may be the smartest move you can make in today’s “buyers-market”.

“They can be much quicker than traditional methods and still put the same amount of money in the sellers’ pockets.”

Address: Unit 10 Ferndale Mews North, Corner Oak and Dover Road, Ferndale, Randburg Contact Details: +27 (0) 11 789 4375 auctions@parkvillage.co.za www.parkvillageauctions.co.za

f inweek Property Portfolio

9

Having a rental property can be a rewarding experience for any determined landlord. For you to succeed as a property owner you must attract high-quality renters and do all you can to retain them. Being vigilant and thorough during the tenant screening process will enable you to locate the ideal candidates.

The roof is a prominent feature of your property, your tenants will be troubled if there is something wrong with it. Maintaining your roof keeps tenants happy and helps maintain property value.

Take the time to inspect your property’s yard to ensure that it is in a perfect state. A well-kept yard will ensure that the property looks good and also prevents the breeding of unwanted pests.

Even though cleaning up the yard will keep pests away, it is not enough. You must further disinfect the premises to ensure it is completely free of pesky pests and rodents.

Another area that requires maintenance are the windows.

Over time they can become damaged or worn out making it difficult to open and close which also creates an issue of safety.

Due to hot summers, it is prudent to ensure that the HVAC systems in your rental houses work efficiently.

Change the filters, inspect the units and clean them often to ensure everything is working.

In case your rental property has a fireplace, you should take the time to remove dirt, soot and any other debris that might clog the chimney. A clogged vent releases smoke inside instead of outside.

Sources: information from Ammons Pittman Property Management - 7 tips for maintaining your rental property Header graphic source www.freepik.com

BUILDING & CONSTRUCTION

Our mission is to build a robust and agile construction company equipped to remain relevant in an ever-changing socio-economic and political landscape. We differentiate ourselves by the collaborative relationships we develop with clients, industry associates and employees: working with integrity, being fair and getting the job done.

GVK-Siya Zama is one of the largest privately-owned construction companies in South Africa. Tracing its roots to 1960, the group is committed to the industry, the development of its people and delivery to clients.

SCOPE & COMPETENCE Projects are undertaken in the private and public sectors with specific expertise in education, healthcare, judicial facilities, commercial (industrial, business and retail spaces), hospitality and selected residential projects.

Contracting vehicles include turnkey solutions, public-private partnerships (PPPs) and Design and Construct delivery. The value of work undertaken at any given time depends on the location, complexity and duration of a project, as well as the skills and resources available at the time.

TRANSFORMATION & FUNCTIONALITY GVK-Siya Zama is a Level One Broad-Based Black Economic Empowered (BBBEE) Contributor, 51% blackowned, and one of a select group of privately-owned construction companies graded at Construction Industry Development Board (CIDB) Level 9 GB:PE (General Building, Potentially Emerging) + 8 CE:PE (Civil Engineering, Potentially Emerging).

GLOBAL CERTIFICATION & COMPLIANCE Maintaining international operating standards is a top priority for the group. Our ISO 14001 certification in 2013 is testament to our commitment to environmentally sound practices.

Further international certifications include ISO 9001:2015 (Quality Management) and ISO 45001:2018 (Health and Safety).

REGIONAL OFFICES Eastern Cape Port Elizabeth +27 (0) 41 365 1557 ep@siyazama.co.za KwaZulu-Natal Durban +27 (0) 31 314 3700 natal@siyazama.co.za Gauteng Johannesburg +27 (0) 11 608 0313 gauteng@siyazama.co.za Western Cape Cape Town +27 (0) 21 461 6665 cape@siyazama.co.za www.siyazama.co.za

www.siyazama.co.za “Tracing its roots to 1960, the group is committed to the industry, the development of its people and delivery to clients.�

f inweek Property Portfolio

11

COMMERCIAL PROPERTY / COMMERCIAL SPACE

Your Partner In Providing Key Defence Solutions The Armaments Corporation of South Africa SOC Limited (Armscor) is an acquisition agency of the South African Department of Defence. Its mandate is to provide armed forces with the state-of-the-art defence matĂŠriel required for the sovereign protection of South Africa, its citizens and the continent.

The organisation provides defence turnkey solutions and its research and development focuses on producing cutting-edge technology products.

Its technologies have evolved from the defence sector to both commercial and domestic sectors.

It has capabilities and skills to meet the needs of the changing global landscape.

ARMSCOR’S EXPERTISE Armscor through its Research and Development unit provides scientific research, test and evaluation, technology management, analysis and industrialisation and intellectual property management service.

12

f inweek Property Portfolio

Some of its research and development facilities include: HAZMAT PROTECTIVE SYSTEMS Hazmat manufactures and markets a comprehensive range of filter cartridges, canisters, half and full face masks to protect individuals against respiratory health hazards. Hazmat has a state-of-the-art carbon impregnation plant that provides it with a competitive advantage in the manufacturing of respiratory filters. These products are suitable for both military and commercial sectors.

Hazmat Protective Systems

• • • •

Contract synthesis of organic fine chemicals Analysis of commercial chemical products and environmental samples Testing of respiratory equipment to SABS and EN Standards Detection of biological warfare agents and other biological compounds

ERGONOMICS TECHNOLOGIES (ERGOTECH) (ERGOTECH) is responsible for providing comprehensive and efficient services in ergonomics and occupational health and safety required both locally and internationally. It provides ergonomics solutions to optimise human performance, reduce work related risk and improve overall productivity; for military and commercial clients.

INSTITUTE FOR MARITIME TECHNOLOGY (IMT)

Gerotek Test Facility

GEROTEK TEST FACILITY This state of the art vehicle testing facility offers automotive testing services, product testing services, advanced and defensive driver training. It also has a unique venue for conferences, events, product launches, seminars and team-building sessions.

Mobility • • • • •

Gradient Ability Step Climbing Ditch Crossing Off-road Mobility Soft Soil Mobility

Performance • • • • • •

Maximum Speed Acceleration Tractability Braking Fuel Consumption Power Output

Endurance & Reliability • • • • • • •

Design Integrity Endurance Testing Accelerated Endurance Testing Real Time Endurance Testing Fatigue and Vibration Measurements Design Optimization Failure Analysis

PROTECHNIK LABORATORIES Protechnik laboratories is an applied chemistry or biochemistry facility with a primary focus on chemical and biological research. It provides technical support under contract to the South African Council for the Non-Proliferation of Weapons of Mass Destruction on technical aspects related to the implementation of the chemical weapons convention. The facility is known for analysis of commercial chemical products and environmental samples, detection and analysis of trace amounts of hazardous chemicals. It also specialises in contract synthesis of organic fine chemicals.

IMT provides maritime technology solutions to the SANDF (primarily to the SA Navy), government departments, defence industry, the broader maritime community and other clients as part of its commercial initiatives.

Armscor is open for business, available to provide its services to commercial clients in South Africa and beyond.

Protechnik Laboratories specialises in: • • • • • • • •

Protection of personnel in chemically hazardous environments Evaluation of protective materials and equipment Detection and analysis of trace amounts of hazardous chemicals Impregnation and characterisation of activated carbon Evaluation of respiratory equipment and their constituent components Technical support with regard to weapons of mass destruction non-proliferation treaties Data collection and maintenance of an information database on biological weapons Synthesis of test compounds and verification reference standards

Contact Details: +27 (0) 11 428 1911 info@armscor.co.za www.armscor.co.za

f inweek Property Portfolio

13

Solar Power for Self-Generation Light that is a Sound Investment

By Chris Rodgers, CEO, Sinetech

We are all acutely aware of the inconvenience and financial impact of load-shedding and all bemoan the ever-increasing Eskom tariffs.

The reality is that Stage 2 load-shedding, and possibly worse, will be around for at least the next 2 years.

Counter-intuitively, we will be asked to pay approximately 50% (Ted Blom) more for electricity in that period, a case of deliver less but charge more.

The recent visit by Angela Merkel seems to have jolted our government into the real world and the fact that distributed generation benefits all. As a country, we have some very clear challenges such as job creation, continuity of energy supply, reduction of hydrocarbons and cost-effective energy. It is clear that Eskom is collapsing under all of these factors, not to mention the rampant corruption that has taken place across all SOEs. Distributed or self-generated energy addresses all of these challenges by employing solar and battery storage at the domestic, commercial and industrial level.

From a jobs perspective, picture a scenario where micro-enterprises spring up nationally to perform the installation and maintenance of solar systems at the residential level, very similar to how the DSTV installers operate.

At the commercial and industrial level. small enterprises can emerge to fulfil these services for factories, shopping centres and any other larger structures. Business can join hands with government to fulfil the re-skilling of coal workers into “green-collar” workers who market, install and maintain the systems in domestic and commercial buildings.

TABLE 1: JOBS DIRECTLY CREATED FROM GENERATING ELECTRICITY CONVENTIONAL ENERGY TECHNOLOGY

/MW

/GWh

Coal (Current)

1.7

0.3

Coal (Future)

3.0

0.7

Nuclear

0.5

0.1

Pebble Bed Modular Reactors

1.3

0.2

Gas

1.2

0.1

RENEWABLE ENERGY TECHNOLOGY

/MW

/GWh

Solar Thermal

5.9

10.4

Solar Panels

35.4

62.0

Wind

4.8

12.6

Biomass

1.0

5.6

Landfills

6.0

23.0

carbon emissions almost entirely and best of all, works out cheaper over the long-term.

40.7%! Simply put, there is no other investment that offers this return, nevermind the security of knowing you will have electricity.

Municipalities are also starting to permit the “feed-in” of surplus electricity that you might generate, thereby giving you a credit on your electricity account.

Additionally, with such a hybrid system (solar panels plus batteries) you will have an automatic back-up solution for those annoying power outages.

Solar vs Eskom: A comparison over 20 years The graph below takes a conservative view of the potential savings to be had by investing in a grid-tied solar system over a 20-year period. In the scenario below, you could realise savings of R1 921 000: We have based these calculations on a grid-tie system (no battery) costing R79 000, which comprises polycrystalline panels, grid-tie inverter(s), cabling, mounting and installation. Assumptions include: •

Solar as an investment The current return on investment per annum on R100 000 is around 5.5% for property, 6.89% for SATRIX and around 6.25% in a call account. Now, thanks to Eskom’s devastating price increases, you can invest that same R100 000 in a PV solar system (enough for a 5kW grid-tie) and you’re looking at returns of

• • • •

Eskom agreed rate in 2020 of R3.73 p/w – thereafter 10% per annum escalation Current electricity price of R1.27 for less than 600KWH, and R1.8 above 600Kw hours Normal household consumption of 962KWHours pm 6.2 Hours of sunlight per day Excludes VAT

R250,000.00 R200,000.00 R150,000.00 R100,000.00 R50,000.00

An Energy Storage System (solar and batteries) ensures continuity of electricity supply, reduces

14

f inweek Property Portfolio

R0.00 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037

ENERGY / SOLAR

Reduce Operating Costs with Solar All businesses can benefit from taking control of their electricity costs and controlling future energy price increases.

•

Those engaged in product manufacture and others in large factories and warehouses are generally using a substantial amount of electricity during daylight hours, which makes them excellent candidates for solar energy. Solar energy officially became the cheapest energy source in the world in 2016, surpassing wind and its fossil fuel counterparts like natural gas; this means solar power will save a manufacturer thousands of Rands over time on electricity costs and provides a hedge against energy price increases, making your company more competitive.

•

Let’s take a look at why solar is such a good fit for these industries:

•

•

•

•

Most concerns operate during sunlight hours, however, with battery technology rapidly decreasing in price, even 24-hour operations can benefit from solar energy created during the day Peak factory / floor energy use and peak power production from the PV solar system will generally coincide or be stored, which means no produced power goes to waste Large-scale commercial solar systems are an even better deal in terms of long-term savings because of the economies of scale inherent in solar power. The cost of energy will decrease the larger the system is If batteries are included in the design, power

•

outages can be seamless and the exorbitant cost of running diesel generators can be obviated Factories are known for having large flat roofs with ample roof space, offering an ideal installation site for solar panels Carbon taxes are definitely a reality in South Africa’s future, thus it would be beneficial to start using renewable energy today The greening of a company is a newsworthy upgrade that sets your business apart from others and offers huge marketing and competitive advantages

Whether your operation is big or small, solar can reduce your electricity bill. Solar solutions can be rented - http://www.omnitech.co.za/omnitech-operating-rental.html - or purchased outright, in which case the system can be 100% depreciated in Year 1 making it very tax efficient.

Case Study

About Us

Commercial Building, Gauteng, 60kWp Grid Tie System

Established in 1995, Sinetech is a leading direct importer and supplier of Power Protection, Power Conversion, Power Distribution and Renewable Energy products. We are a major player in the Residential, Commercial and Industrial PV Solar and Backup Power markets. Services include Energy Audits, Site Inspections, System Design, Installation, Commissioning, Monitoring, Maintenance and Solar Panel Cleaning

A Grid-Tie PV system was found to be the most ideal solution given the fact that the production profile of the PV system fitted well into the power usage profile of the company. The system generates approximately 90MWh per year and offers a high return on capital while reducing operational expenditure of the company.

The Result This system has saved the client in the region of R750 000 since its installation in 2016.

As electricity tariffs increase annually, the gap between the cost of self-generation and Eskom supplied power will increase, thus the sooner you make the move to solar the better.

Address: 2 Samantha Street, Strijdom Park Randburg, Gauteng Contact Details: +27 (0) 11 886 7874 sales@sinetech.co.za www.sinetech.co.za

f inweek Property Portfolio

15

FLOORING

abstracts, LVT flooring has been specified in the major banking and clothing groups as well as independents in South Africa.

There is now a move to measuring indoor environmental quality in work spaces. Noise levels together with air quality and lighting levels have far reaching effects on the health and productivity of occupants and consequently on the bottom line. Traviata Flooring can help you achieve better results all round.

•

•

•

Traviata Flooring creates the canvas for commercial spaces Floors are probably the largest single surface in any commercial environment and as such have a major influence on the aesthetics, comfort and productivity of the space. rom a design perspective one of the biggest international trends is to create “Resimercial” spaces. This involves taking the comforting and inviting elements of residential design and incorporating them into commercial spaces making clients, customers and staff feel more at ease. One of the easiest ways to create a welcoming aesthetic is through the flooring chosen and increasingly this is being seen in hotels, medical facilities, retail stores, offices and schools.

Traviata Flooring currently markets a number of commercial grade flooring options that offer design flexibility, superior acoustic properties, ease of installation and maintenance and contribute to indoor air quality and hygiene.

At the forefront of this flooring revolution are the new series of “rigid core” interlocking LVT products including the Firm Fit, Traviloc XL – RCB and top of

16

f inweek Property Portfolio

the range IsoCore brands.

The board construction in these products sees significant reduction in airborne noise and also critically in floor to floor sound transfer. This has been a major contributing factor in the selection of the IsoCore range by major hotel groups such as Marriott, City Lodge and more recently Radison, Accor and Meridean.

IsoCore’s factory applied anti-microbial and anti-Bacterial coating along with its warmth, slip resistance and resistance to most spills and stains have also seen a large uptake in the medical field. It is for example used throughout the Netcare group for all their doctors’ rooms and has also found favour in many private clinics, hospitals and consulting rooms.

Available in a variety of natural timber looks, stone and masonry designs and even solid colours and

•

•

• •

Traviata is an importer and distributor of the world’s leading brands of Luxury Vinyl and Laminate flooring Traviata has a reputation for superior quality thanks to their partnerships with technology leaders Traviata supplies flooring suitable for retail, leisure, medical, office, education and other commercial environments Traviata is a privately owned business with over 15 years of international experience Traviata has a serious and proven commitment to service, quality and sustainability Traviata is one of the largest importers of flooring systems in South Africa Traviata has an approved network of dealers and installers boasting a national and regional reach into Africa

Address: Unit 5, Route 24 24 Herman Street, Meadowdale Gauteng Contact Details: +27 (0) 11 453 0296 sales@traviata.co.za www.traviata.co.za

INTERIOR DESIGN

Our USP’s • •

•

Thomas W Interiors is a committed interior design company, specializing in all aspects of interior design and interior architecture. Thomas W Interiors’ ethos is of hard work and integrity, this mindset places at the forefront the goal to achieve the best possible result for the client.

Thomas W Interiors service ranges from conceptualization to contractor appointment and site project management. Initially the conceptualization of a client’s vision for a space will be turned into a plan.

Secondly the design is refined and fine tuned. Finally the management of the design from idea to the constructed result of a residential, corporate, commercial or retail space. The goal being to finally deliver an exceptionally crafted and functional space the client is excited about.

Client involvement and approval is an integral part of the design process at Thomas W Interiors. Thomas W interiors is an interior design company with interest in commercial, retail, residential and hospitality projects. With a diverse portfolio Thomas W Interiors is equipped to take on a myriad of interior design and interior architecture challenges. The Thomas W Interiors Instagram account shows the broad spectrum of successful projects the company has completed, in a diverse range of design. A few of our clients include; Frankie and Deliliah - Liv’in ICook - Eske Claire Direct Deals - mouyis cohen attorneys - Ericsson - Fresinius Medical Care - Lake International - NUSKIN - L’Oreal Luxury Products Division JHB Tourism - KLM Knowledge Ex Academy - MTN - XStrata Coal - Lexmark - RCI - WKW INC. - Jonathan Ball Publishers

•

•

•

•

Appointed retail interior designers for L’Oreal in Sub-Saharan Africa With a cumulative 60 years of experience in commercial, retail, residential and hospitality interior design Thomas W Interiors designs from initial concept through to a completed construction Lancôme, NYX, Urban Decay, L’Oreal and Kiehl’s stores and counters all over South Africa are examples of retail design by Thomas W Interiors Experience in spacial planning, in particular for corporate and retail design Established relationships with adjacent industry company’s in construction, engineering, shopfitting and architecture.

Company to client transparency is prized at Thomas W Interiors.

Address: Unit 1 The Refinery, George Allen Street, Willbart Germiston Contact Details: Julia Hock +27 (0) 66 477 7254 Thomas Wilton +27 (0) 82 774 1990 tom@thomaswinteriors.co.za www.thomaswinteriors.co.za

f inweek Property Portfolio

17

Interior Design Trends for 2020

By Lynne Blumberg, CEO, Lynne Blumberg Interiors

At the start of every year new global trends in all aspects of Interior Design & Décor abound!

This year is about to get exciting with buzzwords like softness, easy living & sustainable.

01 Fabrics This year is looking bold, exciting and colourful when it comes to fabrics. Grey and greige tones are on their way out and replacing them comes lots of bold, beautiful and vibrant colours.

COLOURS THAT ARE TRENDING Bold blues, orange, rust, deep forest green and delicious mustard take center stage for colour as well as bright, attention-grabbing hot neon colours bringing back the 80’s and 90’s aesthetic. We are also seeing funky geometrics, a riot of florals & plant life, and animal print.

PERFORMANCE & EMOTIONAL FABRICS

woods like Macassar being used.

Casual, comfortable living is something that we are seeing more and more this year. Gone are the days of rigidity, cold spaces. We are seeing low seating and furniture with soft, rounded edges.

03 Wallpaper A huge trend that is still being seen for 2020 is bold, fun and textured papers from 3D to geometric and from grass to polished textures. There has been a move away from a single wall of wallpaper as an acent to all walls being fully covered thus creating a bright, fun living space.

Technological advancements have also impacted the fabric world with forward-thinking, future fabrics called performance or emotional fabrics.

04 Flooring

Performance fabrics take away a lot of stress where it comes to keeping your furniture in pristine condition.

These fabrics will free up the consumer in so many ways.

One doesn’t need to worry about spills, such as coffee, wine, curry, tomato sauce, ballpoint pens etcs. They are stain free with accidental spills and splashes coming out easily with a little water and blotting.

Remain luxurious choices with a focus on less allergenic materials being used.

Performance fabrics are not only performance focused but are designed to be soft and easy to live with, creating a feeling of comfort. Mix up your patterns - mix geometrics with floral. There are endless possibilities.

02 Furniture

CARPETS

ENGINEERED WOODS Engineered worrds remain popular with herringbone and square designs being top choice among consumers.

VINYL Vinyl flooring has come a long way from fake, plastic looking flooring to now a focus on realistic textures. They are a popular, affordable option with cleaning being an ease.

TILES: CONCRETE, MARBLED,STIPPLED

Glamour stills remains a popular choice in furniture. We are seeing soft, beautiful velvets with comfort being created with plush and rounded shapes. Metallics are also still very much in vogue.

Tiles are getting bigger, we are seeing a shift in the size of the tiles being used. Another fabulous new trend is the use of identical tiles but with different finishes. Finishes range from smooth tiles for indoors, a slightly more matte tile for patios and non-slip tiles for wet areas.

We are also seeing mirrors and reflective surfaces being used to create contrast to soft textures. As well as exotic

Seamless styling is being seen both inside and outside the home creating a cohesive look throughout.

18

f inweek Property Portfolio

Bathrooms are spaces that demand relaxation both in the amenities and the design of the space. We are seeing a trend in smaller spaces, so wall hung units and free standing baths have both become more popular as they create both actual and visual space.

LIGHTING Ambient moods are being set by using LEDs in the shower and around mirrors.

SANITARYWARE We are seeing a move forward into more adventurous styling with a return of pastel colours. Suppliers spray on the colour which makes it easy to change to another colour or white when you’ve grown bored.

TAPS With up to 16 different finishes available, you are able to customise your bathroom in so many different, exciting ways. From rose gold to platinum, and bronze to black.

TOILETS Go Green toilets now have dual plates to save water thus helping the shift to sustainable homes.

INTERIOR DESIGN / PROJECT MANAGEMENT

Lynne Blumberg Interior Design has a prestigious reputation in residential, corporate, hospitality and retail design. Lynne is a founder member of the Institute of Interior Design and is a recipient of a fellowship from The South African Guild of Interior Design. Lynne has a specially trained team of designers working with her.

Lynne Blumberg Interior Design offers a full turnkey service as well as the designing of specific areas. The company offers a full consultation option. LBI works with architectural firms, garden design companies and all areas relating to interior design.

projects commissioned for corporate, residential, hospitality and retail clients.

Efficient and professional service is offered with particular emphasis on well researched and innovative design with commitment to hands on personal service. Extensive client/ designer dialogue determines needs and preferences for each commission. Each scheme is directed at the client’s specific needs be it corporate, residential, hospitality or retail.

Recognized for her professional innovative design style, Lynne is recognized as one of the Divas in interior design/decorating in South Africa.

“Demanding the highest of standards, LBI has over the years developed a complex network of highly skilled builders.”

Demanding the highest of standards, LBI has over the years developed a complex network of highly skilled builders, upholsterers, curtain makers and paint specialists. Lynne also has a formidable knowledge of the above.

Lynne hosted her own interior design talk show for many years and writes numerous articles for many publications. LBI has an impressive portfolio of

The company does projects both nationally and internationally.

THE AWARD In June 2019 Lynne Blumberg Interior Design was awarded The Design et Al International Hotel & Property Award in the category of High End residential of 5 million pounds & under. Design et Al only work with the world’s leading designers & showcase the absolute pinnacle of design.

The Awards were held in Capri Italy. Lynne Blumberg Interior Design was given a Standing Ovation by 500 designers from all over the world. It was an incredible night almost like a night at the Oscars at the Grand Hotel Quisisana in Capri. To rub shoulders with the best Interior Designers globally & to have won this prestigious International Award is a major achievement for the Lynne Blumberg Interior Design Brand.

Address:

CHARITIES

Contact Details:

Lynne Blumberg Interior Design does many charity projects, the latest one being the Interior Design team for Hospice, which was totally renovated.

+27 (0) 11 447 6016 admin@lynneblumberg.co.za lynne@lynneblumberg.co.za www.lynneblumberg.co.za

18 Archimedes Street 2nd Floor, Kramerville Johannesburg

f inweek Property Portfolio

19

LEGAL / CONVEYANCING

“A smart contract is therefore not a contract in the traditional sense, but is rather a computer program that executes a pre-defined transaction upon the happening of certain conditions.” been confirmed, the transaction can self-execute by automatically paying the purchase price to the seller and effecting an electronic transfer of ownership in the deeds registry. Countries such as Sweden have already implemented pilot projects using smart contracts for automated property transactions. Whilst similar projects in South Africa are no doubt still some years away, all indications that smart contracts will become integral to property transactions in the not too distant future.

Should you require legal advice on smart contracts, please get in touch with Van Hulsteyns Attorneys - a firm which looks to the future by building on a distinguished history.

Smart Contracts in Property Law A New Frontier The notion of smart contracts first came to the fore in 1994, in the publication of Nick Szabo (a noted cryptographer and computer scientist) of a paper bearing the title ‘Smart Contracts’, which Szabo described as “a computerised transaction protocol that executes the terms of a contract”. mart contracts share three broad characteristics. Firstly, the contract must be ‘smart’ in the sense that it is represented and executed in computer code (i.e. automated software).

Secondly, a smart contract must give effect to a legally enforceable exchange of promises. Thirdly, it must be self-executing, in the sense that once the conditions for the operation of the contract are met, a predefined execution protocol will be given effect to without more, and cannot be halted.

Whilst there is no unanimity as to the legal definition of smart contracts, the Smart Contracts Alliance has proposed a useful definition of a practical nature (with reference to smart contracts operating on dis-

20

f inweek Property Portfolio

tributed ledged technology), namely: “Computer code that, upon the occurrence of a specified condition or conditions, is capable of running automatically according to pre-specified functions. The code can be stored and processed on a distributed ledger and would write any resulting change into the distributed ledger”.

Address:

A smart contract is therefore not a contract in the traditional sense, but is rather a computer program that executes a pre-defined transaction upon the happening of certain conditions. This makes them ideally suited to implementation in property transactions. Where the buyer and seller have agreed on the sale of a property and the guarantees have

+27 (0) 11 523 5300 reception@vhlaw.co.za www.vhlaw.co.za

3rd Floor, Katherine & West Building, 114 West Street, Sandown, Sandton, Gauteng, South Africa Contact Details:

LEGAL / CONVEYANCING & PROPERTY LAW ATTORNEYS

the premier and oldest global network of independent law firms, with 145 member firms allocated across seventy countries.

You’ve Lost Your Title Deed - What Now? There has been talk that the new provisions applicable to the replacement of a lost title deed will now delay or frustrate a transaction. Is this truly the position? n South Africa, the title deed, or deed of transfer, is the proof that you are the registered owner of a property and in any dealings with the property, the original document will be required. If you intend to register a mortgage bond or have sold the property, the original deed is to be lodged in the deeds office by the conveyancer in order for the transaction to take place. Without the original title deed, no transaction can take place.

Up until recently, a lost deed could simply be replaced by virtue of the owner signing an affidavit to the effect that he has lost the deed, has not pledged it to anyone else and despite looking for it, cannot find it.

If this affidavit is signed in front of a commissioner of oaths and lodged in the deeds office, the Registrar of Deeds would then issue a replacement deed.

This application was usually done simultaneously with the registration process and thus no delay was experienced in deeds off transactions.

In terms of the current amendments to Regulation 68 of the Deeds Registries Act 47 of 1937, in a local newspaper and has to provide for any interested party to be given the opportunity to inspect the title deed at the deeds office for a period of 2 weeks after the date that the advert has run. The conveyancer will have to arrange for the deeds office to be made aware of the advert and the title deed will have to be

available for inspection at the deeds office.

A previous version of the draft regulations make provision that the advert would have to run in the Government Gazette and this is what created the impression that the new regulation requiring an advert would create delays in transactions. This is no longer the case as the advert is to be run in a local newspaper and these adverts can be placed on any day of the week and not only on a Friday as is the case with the Government Gazette. If this advert and application is attended to timeously, they should be no reason any transactions should be delayed.

Running the advert immediately upon being made aware that the title deed is missing would mean that the time period under the advert would run simultaneously with the conveyancing process.

Proficient in all aspects of contentious business including commercial, insurance, engineering, construction, labour business rescue and insolvency litigation, regulatory work and services in property, conveyancing, town planning and rezoning, KHL has positioned itself, markets its services and practices as a niche, or specialised, independent law firm.

KHL has established a pre-eminent reputation for innovation, excellence and success, to a large extent due to its specialisation in corporate litigation and dispute resolution.

Alec Leicher heads up our Property Law department and his areas of practice include:  Attending to both commercial and residential transfers, the registration of mortgage bonds for major commercial and retail banks, general notarial work including the registration of notarial bonds, preparation and registration of servitudes, notarial tie agreements, antenuptial contracts and notarial long term leases, Our property department also attends to sub-divisions and consolidation of immovable property, establishment of townships, establishment of sectional schemes and the amendment to sectional schemes and sections.

Alec was admitted as a conveyancer in 1994 and brings a wealth of property experience to the firm, having joined the property department of KHL in 2000 and being appointed as a director in 2004.

ABOUT KHL (KNOWLES HUSAIN LINDSAY): Knowles Husain Lindsay (“KHL”) is a dynamic firm of innovative and highly skilled lawyers that looks to bring a combination of creativity and sound technical advice to all our work while maintaining total integrity. This makes KHL a choice firm of attorneys that gives its clients a strategic advantage through its unrivalled matrix of expertise and experience in problem solving, and dispute resolution. KHL is the only South African member of ALFA International,

“If you intend to register a mortgage bond or have sold the property, the original deed is to be lodged in the deeds office by the conveyancer in order for the transaction to take place.”

Address: JHB: 4th Floor, The Forum, 2 Maude Street, Sandown, Sandton CPT: 10th Floor, 2 Long Street, Cape Town Contact Details: JHB: +27 (0) 11 669 6000 CPT: +27 (0) 21 405 4200 www.khl.co.za

f inweek Property Portfolio

21

Arguably the hardest aspect when it comes to investing in anything, is knowing where to put your money. Here are some tips to make the right investment decision.

QUICK TIPS

BEWARE OF BARGAINS Buying a property at a bargain price may just mean you’ve bought a second-class asset. Be sure to consider all influences before diving into a bargain.

HOUSES

APARTMENTS

THINK LONG TERM This may be a blatantly obvious factor, but there are many aspects of property that can influence a long term investment. Be sure to not overlook simple elements.

IDENTIFY SURROUNDING AMENITIES Amenities include places like parks, local pools & schools. Consider not only what impact these places have on the community, but also how well they are doing, and their plans for the future.

FUTURE DEVELOPMENTS As mentioned above, having an understanding on how local amenities are performing is great information to hold. If schools are looking to expand in coming years, then that would only push the value of surrounding property up!

PAYING MARKET VALUE Often, paying market value for a blue chip home, in an in-demand area, is a better investment than trying to buy cheaply. If you buy a property for less than others in the area are worth, that doesn’t mean you’ve secured a bargain.

PROPERTY DEVELOPERS

Presenting One on Whiteley ne on Whiteley is the latest residential development by the Amdec Group - South Africa’s leading developer of New Urban lifestyles. Located within the heart of Melrose Arch, this recently completed development offers incomparable urban living ideal for young professionals, first-time buyers, frequent business travellers, and property investors.

As the definitive New Urban precinct in which to live, work and play, One on Whiteley houses 241 luxury residential apartments spanning 8 floors, surrounding an indigenously landscaped private courtyard, sundeck, and heated swimming pool. It sits above the exclusive Daytona motor dealership – home to Pagani, Rolls Royce, McLaren, and Aston Martin - and adjacent to South Africa’s first new 5-star Marriott Hotel, which opens in March 2020.

“Melrose Arch is an iconic mixed-use development, occupying a prime location within Johannesburg’s affluent northern suburbs.”

Apartments are designed to the highest standards and come complete with upmarket finishes, Caesarstone countertops, and integrated SMEG appliances. Additional features include energy efficient LED lighting, full backup generator power, strict access control and CCTV, fibre-to-the-home, and ample secure undercover parking.

As such, One on Whiteley has experienced rapid uptake of its residential apartments, with furnished rental apartments proving very popular with long stay corporate clients from South Africa and abroad.

COMPELLING INVESTMENT Melrose Arch is an iconic mixed-use development, occupying a prime location within Johannesburg’s affluent northern suburbs. Contrary to current market conditions, rental returns here are impressive when compared to other luxury property nodes in Johannesburg. This unique New Urban development has cornered the market in terms of long-term capital growth and superior appreciation prospects. Attracting high-end, executive, blue-chip tenancy has never been more straightforward.

An investment in One on Whiteley boosts the value of a property portfolio, while offsetting conventional

risk within its asset class. The favourable mixed-use credentials have created unparalleled demand from buy-to-let investors.

Investor contentment is further strengthened through the private ownership and management of Melrose Arch by Amdec Group with its exemplary 30-year track record of large-scale property development.

DESIRABLE LIFESTYLE Global demand for mixed-use premium living is accelerating, with demand outstripping supply. The convenience of having all daily amenities within walking distance of your home, within a safe and secure environment, makes for an unparalleled quality of life and enduring sense of well-being. Social activity among world-class hotels, restaurants, cocktail bars and coffee shops comes as standard in Melrose Arch, coupled with the limitless health benefits from living in a fully walkable precinct with its many top health, beauty, sport and fitness clubs.

REAP THE REWARDS NOW With limited late release stock available of studio, one- and two-bedroomed apartments, priced from R2.5million, we invite you to invest now and reap the rewards of this exceptional investment opportunity.

Address: 1 Whiteley Road, Melrose Arch, Melrose Johannesburg Contact Details: +27 (0) 87 897 0222 tersiat@amdec.co.za www.oneonwhiteley.co.za

f inweek Property Portfolio

23

Property Investment Done Right Still Delivers The Best Returns

By Charl van Niekerk, Senior Property Investment Advisor, Central Developments Property Group

Property investment is the oldest form of investment around. Despite South Africa’s real house prices (i.e. after adjusted for inflation) showing a gradual decline over the past decade, those who know how to do it right are still seeing exceptional returns on their property investments. to-let property. It is also the only form of investment that can be financed through a loan, which gives people who would otherwise not be able to invest an opportunity to start doing so.

ut, like any type of investment, property also requires expertise to know what the pitfalls are, how to spot the investment gems and to understand market trends.

Property has always been an attractive investment because it is a tangible asset and versatile because investors can either use it themselves or as a buy-

Skeptics often classify buy-to-let property as a high risk, low return investment option, because they do not know what to look out for when buying an investment property. First-time investors are often disappointed because they thought they bought a ‘bargain’, but it might have been in the wrong area. As a result, they would struggle to keep it fully tenanted and they would probably not get a good return when they eventually managed to sell it. Even if they got the location right, but the tenant vetting wasn’t done correctly, they would have ended up with endless tenant problems and headaches.

Skeptics often classify buy-to-let property as a high risk, low return investment option, because they do not know what to look out for when buying an investment property.

Another common mistake is to make emotional rather than rational decisions. Buying a home for yourself is a more emotional decision than buying an investment property. With investment property emotional decisions can cost you a great investment.

24

f inweek Property Portfolio

It is quite normal, especially for first-time investors, to listen to their hearts rather than rationally evaluating if it would be a good investment. They might see an ad for an investment property and think: “I wouldn’t live in this suburb.” They should rather consider what the growth potential and possible returns could be.

The current ‘buyer’s market’, which is ideal for property investment, looks to continue well into 2020.

With the looming possibility of a further downgrade of South Africa’s investment grade, the demand for rental properties is increasing and the buy-to-let market is becoming even more lucrative. Now is the ideal time for investors to take advantage of the current conditions before the market starts turning in the seller’s favour again.

The property investment you make today could pay for your child’s future tertiary education. Or by investing now, you could ensure a passive income for your retirement. Alternatively, you could have a potential asset value of millions when you retire, which you could sell off as you wish.

But how do you avoid stepping into the typical property investment pitfalls and ensure that you invest wisely if you are new to property investment? Speak with a property investment advisor to guide you, use other people’s money to finance your investments and most of all, if you haven’t considered property as investment yet, this year will be one of the best years ever to start your investment portfolio.

PROPERTY INVESTMENT

Our USP’s •

•

Avoid Property Investment Pitfalls

by Letting the Experts Guide You Throughout history property has proven to be one of the oldest and most stable asset classes for investment.

It is a tangible and versatile asset offering either buy-to-let options or a first step onto the property ladder which can later be sold to generate capital for a deposit on your next property.

Investors often see buy-to-let property as a high risk, low reward investment option, mainly because they do not know what to look out for when buying their first investment property. Typically, investors are jaded when they’ve bought a property purely because of a good price but in the wrong area, or when their tenant vetting wasn’t done correctly, and the investor ended up with endless tenant problems.

However, with the guidance of the right property expert and good advice available at your fingertips, it would be hard to see property as anything other than a low risk, high reward investment. As with any type of investment, it is of the utmost importance to consult experts in the field when it comes to an investment like property.

Central Developments, who has been in the property industry for almost two decades and has developed more than 28 000 units successfully is now mak-

ing their wealth of property expertise available to investors through their own Buy2LetNow investment division where property investors are guided personally to secure blue-chip property and they provide a comprehensive rental management service as well.

The current buyer’s market looks to continue strong into 2020 creating excellent buy-to-let opportunities for investors. The looming possibility of a downgrade by Moody’s makes the buy-to-let market even stronger. This is the ideal time for investors to take advantage of the property market. Developments are selling at discounted prices and there is even the possibility of promotions giving the investor a head start on savings. Due to the strain on the economy, job insecurities and general consumer spending behaviour, the rental market will remain strong especially in popular suburbs. This allows investors to capitalise on units priced below market value and a strong, sustainable rental demand.

This opportunity is not to be missed. Talk to the experts who can guide you with the right advice stemming from years of experience and let them assist you in making a blue-chip investment.

•

•

We have a holistic, turnkey approach to the development of residential property in niche areas, including rental complexes, sectional and full-title developments in security estates and retirement villages.

We believe in sustainable and responsible property development meaning we don’t just build property, we strive to enrich lives through developing e.g. private schools and retirement estates, giving back to charities, investing in graduate programs and providing homes for all types of consumers.

We provide a comprehensive, inhouse service to buyers and investors alike which includes finance, rentals, property management, investments and even self-storage.

Security, lifestyle, fibre readiness, energy-saving designs and perfect locations are just some of the standard features of all our developments.

Address: Building F, Hertford Office Park, 90 Bekker Road, Midrand Contact Details: +27 (0)861 73 84 73 www.centraldevelopments.co.za/

f inweek Property Portfolio

25

Short-term Prospects Don’t Predict Long-term REIT Performance

By Laurence Rapp, CEO, Vukile Property Fund

Wouldn’t it be great if you knew exactly how well a business would perform before you invested? ost REITs (real estate investment trusts) provide dividend guidance at the start of each financial year, so you know what to expect from your investment with reasonable certainty – at least for the next 12 months. These predictions dominate dinner-table talk, but they are merely one short-term measure of perfor­mance and no indication of how a REIT will perform over the longer term.

The long-term prospects of a REIT investment matter – significantly so. Property shares, like their underlying physical property investments, aren’t meant to be traded every week or even every year.

REITs were created to make property ownership accessible to a wide range of investors – to democratise property ownership. They monetise real estate into an easy-to-access, hassle-free, lower-cost entry point to owning a share of high-quality investment-grade property. Some advisors recommend that REITs should comprise at least 20% of an investment portfolio thanks to the income stability they add, but many investors are currently significantly underweight.

As with property assets, REITs are better suited for medium to long-term investing. To pick a REIT that will perform over the next three to five or more years requires looking well beyond the next dividend pay-out.

As with property assets, REITs are better suited for medium to long-term investing.

26

f inweek Property Portfolio

Having joined the listed property sector later in my career, coming from banking and private equity, I can confidently say that REITs are like any other business. Long-term outperformance is more likely from REITs with good management teams that run a good business with a clear strategy. Investors should apply the same mindset and approach to investing in REITS as they do to other investments.

REITs own the office buildings we work in and the malls we shop and socialise at. REITs grow the rental income and hence value of these properties. Property rental growth hence generally keeps pace with inflation. Taken with value added by management and, in some cases, currency benefits, this adds up to above-inflation returns.

To understand what makes one REIT better suited to deliver higher returns in a specific operating environment than others, you need to know how a REIT is going to grow and by how much, how it is going to accomplish that growth and over what time period and what risks could stunt its growth.

You would do well to drill down into the clarity of overall business strategy, credibility of the senior management team, effectiveness of capital allocation, reliability and quality of cash flow and good governance practices.

For instance, cash flow relies on the quality and diversity of sources of income and risk. For REITs, this would be its properties, tenants and, more recently, the countries and currencies of investment.

Effective capital allocation for REITs means investing in the right property in the right location for the right market. So, building another mall in a major

metropolitan area where there is an oversupply of retail space may be less effective than building one in an area where there’s little competition and a great need for retail.

Over the medium to longer term, listed property remains one of the JSE’s top-performing asset classes. The sector is now distinguished by significant offshore property holdings, comfortable gearing and excellent access to debt funding. Its relative underperformance over the past two years has left many REITs offering above long-term average yields.

This is an attractive entry point for investors into a low-risk, long-term play that should form part of a well-balanced portfolio.

Emigration in the Bigger Scheme of Things

By Berry Everitt, CEO, Chas Everitt International Property Group

going for good, it seems insignificant even compared to the 1.1 million people who have joined the #I’mStaying movement in recent months.

Similarly, the latest available statistics from the FNB Property Barometer show that about 15% of owners who are selling intend to emigrate, and as the total number of home sales recorded by the Deeds Office averages some 350 000 a year, that estimate puts “emigration sales” at around 52 500 annually.

For a start, it’s important to note that the actual number of South Africans leaving the country, while notoriously difficult to establish, is at most probably less than 1% of the country’s total estimated population of 57 million.

In context, this number is small. This is not to say that we should be complacent about the rise in emigration, which always represents a loss of skills, capital and employment creation potential. However, large scale migration has become a global phenomenon in the past few years. We need to focus on achieving a net gain of the total available skills and investment, as most developed countries continue to do. The UK, for example, loses some 350 000 people or 0,5% of its population to emigration every year, but records a net gain of around 250 000 legal immigrants, while the US currently shows a net gain of around 1,3m legal immigrants a year.

The FW De Klerk Foundation was quoted in August 2019 as saying that 3000 people a month (or 36 000 a year) are emigrating from SA and, even if one doubles that number to account for those who are just leaving without actually saying they are

While it is necessary to address corruption, crime and our neglected infrastructure, we should simultaneously be more determined and co-ordinated in our efforts to expose and promote the vast opportunities that SA offers, and to attract more

It’s time to get a better perspective on the hot topic of emigration and its potential effects on SA’s real estate market.

skilled and entrepreneurial individuals to help us make the most of them.

We need government to support our efforts by at least taking the relatively easy step of reforming our immigration legislation to make it easier for foreign nationals to become economically active in SA. And ideally, we would like to create a “golden visa” programme of our own, just as many European countries did when their economies were in tatters after the Global Financial Crisis of 2008/ 09.

That would be of real benefit to the 99,5% of the population who are not going anywhere.

Large scale migration has become a global phenomenon in the past few years. What we need to focus on is achieving a net gain of the total available skills and investment.

f inweek Property Portfolio

27

How to Buy a Home with Futuristic Appeal

By Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa

sustainability, the city is a mixed-use, walkable neighbourhood empowered by self-driving technology and data integration.

Locally, more mixed-use areas, such as Harbour Arch in Cape Town or Melrose Arch in Johannesburg, are popping up across South Africa. In time, and as fuel becomes more unaffordable, the demand for housing within these sorts of mixed-use areas is likely to rise.

Purchasing real estate is a long-term investment, which means that buyers ought to consider what sort of futuristic appeal the property has before they sign themselves up for a twenty or thirty-year home loan.

We are in an era of exponential change, which means that we are closer to living in smart cities than many might think. Buyers should consider how things might change over the course of their loan term and whether the property lends itself to being adapted towards future trends.

To gain a better idea of how homes of the future might look, one should consider some of the growing trends across the globe. For example, Sidewalk Toronto in America aims to be ‘the global hub for urban innovation’ and is just one example of how future cities might look. With a focus on

Living spaces are also likely to shrink. Internationally, people have the ability to rent a ‘pod’ rather than a home. This works out to be far more affordable and allows individuals the opportunity to live a far more minimalistic, nomadic lifestyle. Smaller homes offer unique potential when it comes to futuristic appeal.

Rooftops are also likely to offer prime real estate value as time progresses. Owing to the limited availability of vacant land, alongside rising transportation costs and other wasteful practices, organic and communal rooftop farms might soon become the way of the future. Passenger drones may also become a future means of transportation, transforming rooftop spaces into modern bus stops. Properties with rooftop space therefore offer potential value for owners who might later be able to rent it out for these purposes.

Locally, more mixed-use areas, such as Harbour Arch in Cape Town or Melrose Arch in Johannesburg, are popping up across South Africa.

28

f inweek Property Portfolio

Homeowners ought to keep maintaining their homes as time progresses to avoid having the property become too outdated to appeal to future buyers. Real estate practitioners often prove helpful in this regard. They can let sellers know what needs to be updated to make the home more marketable to buyers. In fact, many of the above points come from futurist, Bronwyn Williams, who’ll be speaking at our National Convention to keep our agents informed on future trends. Alternatively, homeowners should keep an eye on current trends to make sure they do not get left behind the times.

REAL ESTATE / ESTATE AGENTS

How To Sell Fast in a Slow Market Sellers might wait longer for their home to sell given current market conditions, but there are ways to sell fast in a slow market.

For those who need to sell their homes fast over this period, whether you’re immigrating soon or need the funds to purchase another property before the suspensive condition on your OTP expires, it is advisable to recruit an experienced agent from a reputable brand whose resources can be tapped into to ensure that your home sells in a buyer’s market.

When signing a sole mandate, you’ve given an agent a timeframe in which to sell your property, at the end of which, they might lose the commission to another agent – nothing acts as better motivation for an agent to work as hard as they possibly can

than the idea of losing their earnings to another agent. If you’re serious about selling fast, be sure to choose a real estate practitioner with a proven track record of sales and trust the advice they give you.

Lastly, if you want to sell your home fast, then partner with a sales associate from the number one brand in real estate. RE/MAX has the largest possible network of referrals and the widest possible brand recognition across the region. RE/MAX is also the largest global real estate brand – giving your home additional international reach that is unmatched by any of our local competitors.

Our USP’s •

•

• •

• •

RE/MAX is the largest real estate brand in Southern Africa, outnumbering our closest competitor by nearly 1,000 agents.

Globally, RE/MAX is the No. 1 real estate brokerage franchise, according to Entrepreneur’s 2020 Franchise 500® survey.

Nobody in the world sells more real estate than RE/MAX, and that’s a fact.

RE/MAX of Southern Africa is the #1 brand in terms number of sales and in sales by Rand value.

Every 30 minutes, a RE/MAX agent sells a home in Southern Africa.

RE/MAX. Our brand. Our expertise.

Our passion. Your unfair advantage.

Contact Details: +27 (0) 21 700 2000 info@remax.co.za www.remax.co.za Each Office Independently Owned and Operated

f inweek Property Portfolio

29

Helping Your Parents Choose a Retirement Living Option

By Prieshka Taylor, Marketing Manager, Evergreen Lifestyle

Do your parents know where they want to live in retirement. This is one of the biggest and most important decisions they’ll have to make - and they need to ensure that whichever option they choose is sustainable for the long term.

While you can’t make this decision for your parents, you can help them weigh up their various options.

It’s also a good idea to discuss the various purchase models available. Here’s a look at some of the options in the market today.

FREEHOLD Your parents may want to stay in their freehold family home. With this option, they’ll continue to be responsible for the upkeep of their home and garden – and it’s worth considering whether they’ll want to manage this maintenance as they grow older.

SECTIONAL TITLE This type of retirement village typically provides access to a community and various on-site facilities.

Residents own their units within the development and are responsible for managing the village through a Home Owners’ Association or Body Corporate. In this model, special levies may be raised to fund upgrades or maintenance projects. If the home and village has been well maintained over time, residents may benefit from property appreciation.

LIFE RIGHT In this model, the developer retains ownership of the property while the life right holders (both partners) are guaranteed security of tenure for life and access to all the estate’s facilities. Life rights are protected by an Act of Parliament and are the most secure property right in South Africa. The villages or estates are managed by the life right developer in terms of finance and administration, building and garden maintenance, food and beverage facilities, club house facilities, and security and health care services. It’s worth noting that special levies are prohibited in life right developments.

30

f inweek Property Portfolio

SHARE BLOCK In this retirement scheme, purchasers become shareholders of the entire estate. As with the sectional title model, residents must self-manage the village, run their own finances and administration and potentially employ a third-party managing agent to operate the village. As every resident is a shareholder, reaching agreement on important decisions may be difficult, which may be why this model has not been adopted more broadly.

As your parents grow older, it’s likely that they will find themselves facing one or more of the four common fears associated with aging.

FEAR #1 VULNERABILITY TO CRIME AND VIOLENCE Physical security is our number one priority and we’ve spent a lot of time ensuring that the security at our villages is world class. Each village has perimeter walls, electric fencing and CCTV cameras ensuring strict access control at all times, while state-of-theart security control rooms are manned and monitored 24 hours a day. In addition, regular external safety and security audits are carried out by independent consultants to identify where and when upgrades and improvements are required.

FEAR #2 OUTLIVING RETIREMENT FUNDS Thanks to the Evergreen Life Right, your parents can accurately plan their financial future and ensure that their savings are able to support them throughout their retirement years.

Our Life Right offers them a safe, secure home for the rest of their lives, flexible pricing options, reduced upfront costs – there’s no transfer duty, VAT or reg-

istration fee linked to a life right – and transparent monthly levies. What’s more, there are no special levies as Evergreen carries all the costs associated with the upkeep of the village and major capital expenditure.

Finally, should your parents ever facing a financial crisis at any point during their retirement, Evergreen is able to release a portion of their capital, in the event of a financial emergency, to help them fund levies and Care Centre costs. In this instance, the capital due to their estate would be adjusted accordingly.

FEAR #3 LOSS OF DIGNITY At Evergreen, we pride ourselves on delivering high-quality healthcare with dignity. Registered, experienced nurses and therapists are available at our on-site Care Centres and offer a wide range of health-related services, including regular clinics, occupational therapy, home-based care, 24-hour nursing and recuperative care, frail care and palliative care.

In addition, nurse-call alarms are installed in each unit and monitored 24/7 ensuring that emergency medical assistance is immediately available should the need arise.

FEAR #4 ISOLATION AND LONELINESS Village life revolves around a Lifestyle Centre, where our residents spend time socialising, dining or enjoying the many clubs and special-interest groups that meet regularly. These beautifully designed spaces are warm and welcoming and typically include a lounge area, bistro, bar, library, games room, indoor heated pool, gym and entertainment area – everything required to foster authentic community and build lasting friendships. Added to this, each village has a team of friendly, caring staff committed to ensuring that our residents are always well taken care of, feel included in village life, and have everything they need to flourish.

FOR MORE INFORMATION VISIT: www.evergreenlifestyle.co.za

RETIREMENT / RETIREMENT ESTATE

Evergreen Lifestyle is South Africa’s leading retirement brand with villages in the Western Cape and Gauteng. Expansion into KwaZulu Natal and the Eastern Cape is planned for the future. n the Western Cape Evergreen villages have already been established in Muizenberg, Noordhoek, at Lake Michelle, Diep River, Bergvliet and on the beautiful Val de Vie residential estate in Paarl. Construction has also commenced at the Sitari Country Estate near Somerset West.

Evergreen in Gauteng is located at Broadacres in the Northern Suburbs of Johannesburg.

Evergreen Lifestyle uses the internationally popular Life Right purchase model as the basis for their philosophy of a partnership for life, based on the four pillars of the brand. These are physical security, financial peace of mind, continuous care and a sense of community. Evergreen Lifestyle’s shareholders, the Amdec Property Group and the PSG Group are committed to developing a financially secure and trusted national retirement brand.

The Evergreen lived experience is based on the active ageing philosophy where residents enjoy a stress-free retirement lifestyle with an active social life in beautiful architect designed homes and apartments. The heart of every village is a Lifestyle Centre with lounges, dining areas, salons,

gymnasiums and heated indoor swimming pools, where social functions take place and lifelong friendships are formed. And should you need it, world class Care Centres are in place to provide continuous care from primary healthcare to recuperative, frail, memory and palliative care.

Evergreen is currently promoting some outstanding products unmatched in the retirement village industry in South Africa: Try before you buy is an opportunity for serious purchasers to experience a stay in a furnished house or apartment in one of our villages. Experience the accommodation and enjoy all the benefits of our Lifestyle Centres. Meet our residents and participate in social events. We are confident that after experiencing a few days at Evergreen you will not want to leave.

Flexible purchase pricing allows you to purchase an Evergreen Life Right for a new house or apartment, with discounts of up to 30%. An offer unparalleled in the retirement village industry in South Africa.

Address: Amdec House, Steenberg Office Park, Tokai, Cape Town Contact Details: +27 (0) 87 808 7000 info@evergreenlifestyle.co.za www.evergreenlifestyle.co.za

f inweek Property Portfolio

31

RETIREMENT / RETIREMENT VILLAGES

Constantia Place Residents

Life Right & Lifestyle at CPOA Moving home is an important step, never more so than when you decide to move for your retirement. The key is as always planning and good advice.

Choosing where to spend your retirement years can be a daunting prospect as there are so many options but although staying in your current home may seem attractive it is often the more stressful and potentially more costly choice.

At CPOA you can be sure of expert retirement advice which will assist you in making the right choice for your personal retirement lifestyle. CPOA have a wide variety of retirement options available across the wider Cape Town area and most villages also include a dedicated Care Centre. Some of the wellestablished retirement properties may have a waiting list, while others are brand new developments and can offer retirees an immediate solution.

Purchasing a Life Right guarantees you and your

32

f inweek Property Portfolio

spouse security of residence for the rest of your lives, without the process of lengthy real estate procedures or, for example paying transfer duties.

This allows for an easy transition from your current living situation to a relaxed lifestyle environment.

Independent living is a priority for our residents and for CPOA however As one ages the aspect of additional care is an important consideration. As a CPOA resident you have direct access to the many CPOA Care Centres

“Our key focus is to provide retirees with the best retirement option to match their individual lifestyle requirements and their budget; while offering the highest standard of care in an environment that is homely, secure and comfortable.” which make around-the-clock care available to you.

Indeed the retirement option you choose may well have an on –site Care Centre, personalised care plans or memory care needs are all provided for by the professional experienced CPOA staff.

“At CPOA you can be sure of expert retirement advice which will assist you in making the right choice for your personal retirement lifestyle.”

CPOA has been around for over 65 years and, with a full range of over 25 retirement facilities accommodating about 2300 residents CPOA can truly claim to be ‘The Retirement Specialist’.

CPOA will take into account your individual needs and can create a personalised option tailor-made to meet your specific lifestyle and your financial situation. Prices of Life Rights vary depending for example on location and unit size, the monthly levy will cover all other costs associated with the unit and of course a maintenance team is on hand too.

Controlled levies make for long term stress-free living in a safe and secure environment. Highly experienced and dedicated staff are on-site to assist where they can, offering value for money to suit your personal budget.

All you have to do is relax and enjoy your retirement.

ABOUT CAPE PENINSULA ORGANISATION Founded in 1953, as a Non-Profit Organisation by a group of volunteers the Cape Peninsula Organisation

for the Aged (CPOA) has over the years become “The Retirement Specialist”.

Today with over 25 properties, including several upmarket and new developments, CPOA covers the entire spectrum of services for retirees, catering to both their independent living needs and later full frail care.

an on-site Care Centre, available to all residents, offers peace of mind should short or longer term care become necessary. Perfectly placed in the peaceful surroundings of the Cape Winelands with amazing views of the mountains and the sea, The Somerset promotes a relaxed and secure lifestyle with a sophisticated flair.

At CPOA’s our key focus is to provide you with the best possible retirement option, coupled with the highest standard of care in an environment that is homely, secure, caring and comfortable.

CPOA Head Office

CPOA NEW DEVELOPMENTS

Quadrant Gardens The new luxury urban retirement development brings city living to the suburbs. Situated in Claremont, the development consists of 74 spacious apartments, an on-site Care Centre and a range of amenities including a rooftop croquet lawn.

The units include studios, one, two and three bedroom apartments or a two bedroom-plus-study option. Entering the spacious reception area you could be forgiven for thinking you are in a five star hotel, complete with beautiful original artwork and an inviting coffee bar. Quadrant Gardens offers underground parking with direct lift access to the building making for hassle free and all weather convenient parking. This unique urban retirement facility is indeed special. Ideally placed allowing residents ease of access to the Cavendish shopping mall with its wide variety of shops, restaurants and markets and also to the various medical consulting rooms and Kingsbury Hospital, all just a short walk away.

Address: CPOA Head Office 231 Main Road, Newlands Cape Town, South Africa

The Somerset

Contact Details:

This premium resort-style retirement village offers retirees a country lifestyle in beautiful Somerset West. Life right apartments, cottages and freehold homes can all make use of the sophisticated clubhouse with excellent catering and dining facilities.

Advanced security and an award winning design make this village the ideal country environment in which to enjoy an active retirement. In addition

+27 (0) 21 686 7830 info@cpoa.org.za www.cpoa.co.za

f inweek Property Portfolio

33

Horizontal vs Vertical Retirement Living Options

By Dr. Michael Zipp, CEO, CPOA

You would be wrong to think that horizontal has anything to do with ‘lying down’ for the new breed of retiree. Retirement in the future will have less to do with winding down and more to do with gearing up.

The Silent Generation were happy to sit back, relax and spend more time in the garden or on the golf course. They made the move out of the city to the coast or countryside to enjoy their retirement.

But their children, the Baby Boomers, have quite a different retirement in mind. Many cannot wait for the magic 65 to come along when they are determined to start ticking off their long list of things to do and places to go. Indeed, some retirees will even start a whole new business venture with their newly won freedom from employment.

We may all be living longer, but the length of life and quality of life is not the same thing.

The retiree of the future is technology-savvy. Fitness trackers and smart apps will not be buried in drawers. The thirst for information will thrive as more free time is filled with travel and leisure activities. Whether it’s a short city trip, a month overseas or an off road experience, life is an adventure to be enjoyed.

Retirement developments of the future are certain to look very different. In Australia, an increasing number of high rise apartment blocks are being dedicated in part or wholly to retirees, in inner city prime spots. Vertical Living is not new, so why should we ponder the solution for retirees?

Especially when so many will be using it as a base in early retirement years from which to explore and travel. When travelling becomes less attractive as one ages, vertical retirement living can easily provide just the amenities and services the Baby Boomers and perhaps even their children are looking for. These range from multimedia, interactive gyms, virtual reality experiences and surround sound cinemas. Apartments in vertical develop-

The retiree of the future is technology-savvy. Fitness tracking and smart apps will not be buried in drawers. The thirst for information will thrive as more free time is filled with travel and leisure activities. Whether it’s a short city trip, a month overseas or an off road experience, life is an adventure to be enjoyed.

Staying in the family home when one retires may sound attractive, but often it is not the preferred option. Maintenance, security, rates and costs associated with appliance renewals put an unpredictable burden on retiree finances. In retirement, the Silent Generation replicated their family home choosing a single story cottage-style house with a garden in a retirement area or village. For the Baby Boomer generation, their needs are different - a hassle-free, chic apartment in a central location is top of the list.

34

f inweek Property Portfolio

ments can be technically equipped to provide residents with everything from health monitoring to computer generated ‘mind games’, all vital to retain or improve mental fitness.

Horizontal Retirement villages will not fade away, but they too will adapt to the new generation of active residents and could look at redeveloping areas of garden space to build small integrated vertical retirement units.

SECURITY / INTEGRATED SECURITY SYSTEMS SOLUTIONS

Our USP’s •

• •

•

Africa’s tallest building, Legacy’s new prestigious 55-floor ‘The Leonardo’ mixed-use property development in Sandton, Gauteng – offers its tenants the ultimate in high-end integrated fire and security technology from Pentagon Distribution.

The Leonardo Benefits from Integrated Security and Business Managament Systems Pentagon Distribution has positioned itself as a preferred partner in integrated security and business management systems through its well-developed capabilities in best practice product provision, system design, commissioning and technical support. ach project is carefully considered and assessed by the experienced team and customised solutions are devised to provide customers with a system that provides unassailable safety and security. With access to the worlds most trusted brands in security, coupled with dedicated and motivated staff, Pentagon can offer the most comprehensive range of integrated security solutions in the industry.

Completed in 2019 at a cost of R2-billion, the 234-metre-high The Leonardo required a system that was both autonomous and able to automatically evacuate the building in the event of a fire. Pentagon Distribution supplied the integrated fire and security system, which included a Bosch BIS system incorporating intrusion, fire and evacuation, access control and video surveillance. The BIS building integration solution ties all these elements together into one platform, making it easy to manage and monitor.

Bosch BIS offers a ‘tool box’ to allow integration

with third-party applications via open standards and Software Development Kits (SDK). It is a robust and reliable security and life safety system for 24/7 deployment.

Electrical consultants MNS designed and specified the system, together with the assistance of the Pentagon Team. During the design phase Pentagon proved the concept at the Pentagon offices to demonstrate the full functionality of the system.

Zentech System Integrators ensured that the system installation stringently adhered to the client’s high specifications.

The site sets a very high standard for all corporate buildings in South Africa and has enabled The Leonardo to carefully manage its risk profile, resulting in the highest levels of safety and efficiency. The discerning tenants will benefit from the seamless interoperability of the sophisticated integrated system, providing them with an environment that engenders complete peace of mind.

• • •

•

Leading value-added distributor of IP CCTV, high density storage solutions, access control, fire detection, public address and networking products in Africa Integrated security and business management system solutions Well-developed capabilities in best practice, high-quality product provision Consultative approach with value-added professional services underpinning all offerings Carefully mapped system design Competent commissioning by an experienced team End-to-end technical support from the conceptualisation stage to system post-commissioning Highly qualified team understands individual needs and operating parameters for any project type and works with installers and their clients to design and implement customised solutions.

Address: JHB: 27 Greenstone Place, Greenstone Hill, Edenvale CPT: Unit F06, The Forum, Northbank Lane, Century City DBN: 35 Intersite Avenue, Block D Springfield Park, Durban Contact Details: JHB: +27 (0) 11 401 6700 CPT: +27 (0) 21 700 8360 DBN: +27 (0) 31 263 1030 info@pentagon.africa www.pentagon.africa

f inweek Property Portfolio

35

Commercial Property Sector Under Pressure

By Michael Franze, Managing Director, Citiq Prepaid

The commercial property market is under pressure. The economic turbulence of the past few years, alongside political and policy uncertainty, has affected growth and occupancy levels across the country. The FNB Property Broker Survey 2019 found that the retail commercial property sector has seen increased vacancy rates while the Redefine Properties report showed an average rental reversion rate of negative 6%. Increases in electricity costs, high vacancy rates, poor business confidence and low growth have dampened performance and confidence. However, the outlook is not all gloomy. Shifts in investment, policy and economy will likely have a positive influence over the next six months to a year, and the commercial property sector can invest into solutions that capture market attention and create customer stickiness.

The current turbulence in the market is an opportunity to commoditise value-added services that attract tenants and improve customer experiences. Ultimately, tenants are customers and customers want more for their Rands than ever before. They want value for money, relationships and solutions to the everyday problems that come with commercial property rental and expenses.

For most tenants, utility management is one of the most complex and admin-intensive aspects of commercial property rental. The systems put in place by property managers, municipalities and legacy installations are often tedious and time consuming, and inaccurate.

Poorly managed utilities are cause for conflict and costly disputes that affect both the property and the tenants, damaging relationships and sometimes resulting in costly litigation. There are several reasons for this – one electricity meter shared across all tenants, costs divided across all

36

f inweek Property Portfolio

tenants instead of accurately allocated per usage, late and unreliable invoicing dates, complex cost analysis and assessments. One business using a lot of power or an undetected water leak, both causing massive bills, can affect tenant relationships and property reputation.

Prepaid utility meters have seen solid market growth over the past few years for this very reason. They allow for improved utility administration, cost management and usage assessment, providing much-needed visibility into energy and water consumption across all tenants and properties. Prepaid meters put tenants in charge of

The current turbulence in the market is an opportunity to commoditise value-added services that attract tenants and improve customer experience. their own payment and usage, reducing admin on all sides – property managers no longer have to collect payments or deal with disputes and tenants can manage their own usage within their own budgetary constraints.

The transparency offered by prepaid utility meters is a significant value-added service and has become a commodity in itself.

Tenants aren’t left frustrated with vague measurements and unexpected bills and

the property can offer new tenants with reliable and accurate utility billing and management. Prepaid water meters can identify leaks upfront, saving a lot of money and hassle, while prepaid electricity meters can improve control and appliance usage.

This level of control over one aspect of the business can make all the difference to the attractiveness of a property and how tenants engage with property managers. It eliminates the potential for conflict over two things that cannot be ignored when it comes to running a business – power and water.

For the commercial sector, prepaid utilities can offer that extra layer of service that adds stickiness to their offering and allows for solid and sustainable growth into an uncertain 2020.

UTILITY SOLUTIONS / PREPAID METERING

Our USP’s •

• • • •

•

Citiq Prepaid is the biggest and fastest growing prepaid meter and utility vending system provider, trusted by landlords, body corporates and property managers, property developers, municipalities and electrical contractors.

South Africa’s most trusted prepaid utilities provider Quality prepaid sub-meters at great prices Seamless utility collection and payment Online portals for both owners and tenants to manage monthly utility bills and payments Biggest network of recharge outlets (buy tokens 24/7 at many convenient locations, including online and via mobile phone)

Started in 2010, Citiq Prepaid has become the biggest and fastest growing prepaid meter and utility vending system provider, trusted by landlords, body corporates and property managers, developers, municipalities and electrical contractors. o date, it has sold 850 GWh of electricity (equivalent to 25 years of the output of one 4MWh power station) through hundreds of thousands of active meters across SA. An ongoing pioneer in the prepaid sub-metering vending industry, Citiq Prepaid’s proprietary vending system enables property owners and landlords, as well as their tenants, to access detailed reports to efficiently track and manage electricity and water consumption. This helps eliminate unexpected costs, quickly resolve disputes, and take the hassle out of payments, so utilities can stay on.

Landlords, body corporates and management agents: Prepaid makes it possible to quickly and

easily collect payments and resolve disputes with tenants so you can keep the peace and avoid the recovery of utility costs becoming an admin nightmare.

Property developers: Prepaid in new developments ups their desirability to property investors as it simplifies future financial management when it comes to collecting revenues for electricity and water consumption - especially in student/ shared accommodation.

Address: Mahai Close, Howick Gardens, Waterfall Park, Midrand Contact Details: +27 (0) 87 551 1111 sales@citiqprepaid.co.za www.citiqprepaid.co.za

Tenants: Prepaid puts you in charge of your own electricity consumption by being able to track usage and charges, so you can see what is going on instead of getting bill shock at the end of the month.

f inweek Property Portfolio

37

Abland ........................................................................... 3 Armscor ............................................................... 12, 13 Amdec (One on Whiteley) .................................... 23 Central Developments Property Group .......... 25 Property Investment Done Right Still Delivers The Best Returns ......................................................... 24

Citiq Prepaid ............................................................ 37 Commercial Property Sector Under Pressure .......... 36

Chas Everitt ............................................................. 40 Emigration in the Bigger Scheme of Things ............. 27

CPOA .................................................................... 32, 33 Horizontal vs Vertical Retirement Living Options .... 34

Evergreen Property Developments .................. 31 Helping Your Parents Choose a Retirement Living Option ................................................................ 30

Fourways Conditioning ........................................... 7 The Coolness of Being Energy Efficient ....................... 6

GVK-Siya Zama Building Contractors ............ 11

Lynne Blumberg Interiors .................................... 19 Interior Design Trends for 2020 ................................. 18

MMA Design Studio .................................................. 8 Park Village Auctions .............................................. 9 Pentagon ................................................................... 35 Re/Max ....................................................................... 29 How to Buy a Home With Futuristic Appeal ............. 28

SBS Tanks ................................................................. 39 Sinetech ..................................................................... 15 Solar Power for Self-Generation: Light that is a Sound Investment .............................. 14

Thomas W. Interior Design ................................. 17 Traviata Flooring Systems .................................. 16 Van Hulsteyns Attorneys ..................................... 20 Vukile Property Fund ............................................ 26 VZLR Attorneys .......................................................... 2

Knowles Husain Lindsay Attorneys ................. 21

f inweek Property Portfolio

38

BUILT TO MEET THE NEEDS OF ALL COMMUNITIES STORAGE TANKS AND WATER SOLUTIONS SBS Tanks®, a proudly South African company based in Pinetown, Kwazulu Natal, specialises in liquid storage solutions within the South African market servicing a multitude of industry sectors including Mining, Fire Protection, Municipal, Water Conservation, Food and Beverage, and Agriculture.

The SBS Tanks® range has been designed, developed and engineered with expertise gained from over 20 years of experience within the international water storage industry. SBS Tanks® offers a broad product range of liquid storage tanks for multiple applications, from 12 kilolitres in capacity to the largest single storage solution of it’s kind, the impressive 3,3 megalitre capacity water storage tank. Manufactured from pre-fabricated Zincalume® steel panels, and fitted with an approved liner, SBS Tanks® are highly resistant to corrosion and proven to be an effective and reliable product offering.

As a company, SBS Tanks® operates on a shared set of corporate values and principles, with customer focus and ongoing investment in research and development being key elements. We as a corporate entity believe that, not only is it possible to achieve our objectives through positive business practice, but we can equally take positive steps toward framing our future simultaneously.

LEVEL B-BBEE

Call +27(0)86

048 2657 or visit www.sbstanks.com for more information.