Legaro Property Development - Oct 2019

LEGARO PROPERTY D E V E LO P M E N T

LEGARO PROPERTY DEVELOPMENT

Johannesburg’s New Shining Light in Property PRODUCTION: David Napier

Hyde Park in Johannesburg is home to Africa’s first six-star green rated building courtesy of Legaro Property Development, a young and exciting female-managed business looking to change the face of the upmarket development industry.

Managing Director Michele Brookes talks to Enterprise Africa about her desire to create, and her aspiration to leave a lasting family legacy in her hometown.

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INDUSTRY FOCUS: PROPERTY

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In the mid-90s, a South African property business was starting out as a micro operation in a garage in Johannesburg. The family business grew and attracted interest from some of the big names in South Africa’s property development and construction spaces. A careful but ambitious approach saw the company go on to become a JSE-listed, national home builder – one of the biggest and the best. But along the way, the family feel was lost. The business became corporate and, while it operates today as a shining example, the founders wanted to rebuild something with a more personal feel, that had opportunities for future generations to grow into.

So, in 2017, Michele Brookes, wife of Balwin Properties CEO Stephen Brookes, established Legaro Property Development, a female owned and managed property business, with a focus on the top end of the market, in some of the country’s wealthiest suburbs.

Initially, the idea was to build a new company that differentiated itself from other developers by targeting

// WE ARE ALWAYS TRYING TO TAKE THINGS TO THE NEXT LEVEL AND THIS WILL BE THE SAME IN ALL OF OUR FUTURE DEVELOPMENTS. WE WANT TO INTRODUCE SUSTAINABLE LIVING AND SOLAR; USING THE EARTH AS A MEANS RATHER THAN DESTROYING THE ENVIRONMENT // 4 / www.enterprise-africa.net

specific groups of the economy’s top end, while growing a business that the family could leave its mark on.

“My husband is one of South Africa’s big property developers in the mid-range market. He listed his company on the JSE and that saw the loss of the family feel within the business. We have children and we wanted the children to become part of the business but that is not possible with a listed company,” Managing Director, Michele Brookes, tells Enterprise Africa.

After launching the business, the first task was to create a home. Brookes had the idea of creating a head office that was environmentally friendly, but also had class, elegance and quality. This was the start of a fantastic relationship with SA-based Italian-bred Daffonchio Architects. Legaro’s head office at 78 Corlett Drive, just north of Johannesburg’s CBD, went on to claim the first six-star green rating for a building in SA, awarded by the Green Building Council of South Africa.

The building boasts a carbon neutral design. The majority of waste from demolition and construction was recycled, the building can operate off the grid, it is water efficient, all lighting only reaches a certain energy consumption level, there are charging points for electric vehicles – even interior elements such as paint, adhesives and carpets had to meet strict guidelines. The outcome is a major success and a flagship for Legaro.

“We won the first six-star green rated commercial building in southern Africa and the SAPOA award for green building. We are always trying to take things to the next level and this will be the same in all of our future developments. We want to introduce sustainable living and solar; using the earth as a means rather than destroying the environment,” says Brookes.

“We are a green company and we are going for top ratings. We are very proud of our awards. We actually beat the Discovery Building in Sandton by

// BEING A WOMAN IN THE CONSTRUCTION INDUSTRY IS NOT EASY BUT I AM TRYING, ALONGSIDE OUR PROJECT DIRECTOR, TO TAKE THINGS TO THE NEXT LEVEL // two points – that is a massive building and we are this tiny new company so I must say I was surprised but proud.

“We are now looking to build another commercial building, right next to our head office, with all the same principals but we want to make this a live building. That means that all materials are recycled and all the plants are living and cleaning the oxygen in the air. We are going in-depth with the green lifestyle as I think it is needed. It goes back to us being light – we want to create something that’s new and give a fresh look to everything.”

Recognition of Legaro’s success has been international and a visit from global TV brand, The Discovery Channel, has confirmed the building’s status as iconic. The recording about 78 Corlett – where Legaro is the lead tenant alongside more fantastic lettable space – will air locally later this year.

UPMARKET Legaro’s first project after its green building HQ success was a residential development in Johannesburg’s Hyde Park – Melville Lane. Situated perfectly between Sandton and Rosebank, this bold idea brings peace and serenity to an otherwise busy neighbourhood.

Daffonchio Architects went for a blend of London townhouse with Cape Winelands country feeling. The development was tailored specifically towards a niche local market, and Brookes has gone on to target various

LEGARO PROPERTY DEVELOPMENT

iterations of the same sector with other developments.

“Our first development, Melville Lane, sold very well and we have had real demand – we’ve hit Hype Park with a bang,” enthuses Brookes.

“We have just launched a new development in Morson Road, Hyde Park. This is one of the more affluent areas of Johannesburg and homes are valued between R7 million and R30 million. I decided to target the downscaling market from this area – that’s people who have these mansions but where children have moved out of home and they don’t need the space anymore.

“You can downscale from a large house into a luxurious home, without losing any of the feeling. We launched in August and we sold nine of 12. In the South African economy, which

remains unstable, it shows we have hit the right market.”

Sticking to the same principles, just around the block, next to Hyde Park Corner, Legaro is working on the Emerald – an apartment development designed with another very specific market in mind.

“Alongside Morson Road, we are building another project called the Emerald. For this, we have targeted the children of elite property owners.

Instead of them moving out of the suburb they know and starting up somewhere else, we have created this place where they can live and work, feeling like they are still part of the community they have grown up in.

“It’s 292 apartments ranging from one bedroom to three bed and the building has all underground parking.

When you look at the development,

you don’t see cars or anything obstructive to the nature in the area.

We have also created a lifestyle centre which accommodates people going to the gym. We are putting in a full Technogym, a 25m indoor heated pool, an outdoor pool, yoga studios, cold baths, and a 24-hour concierge – for the growth of online shopping and deliveries,” Brookes explains.

These developments, all extremely impressive projects in their own right, are a demonstration of what Legaro is capable of, and, after a lifetime in the industry, Michele Brookes is keen to roll out across South Africa.

GOING NATIONAL A project in the pipeline for the company is away from its natural home and the busy surroundings of Hyde Park, in Paarl in the Western

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INDUSTRY FOCUS: PROPERTY

Cape. Greener, leafier and more rural, the location sits amongst some of the country’s prime real estate and Brookes will bring the same luxury that has been delivered in Johannesburg, focussing on the same top end of the market.

“It’s in the pipeline at present and we are busy with council approvals and other issues that are standard for the industry before we can even think about laying the first brick,” she states. “The project is set for Paarl and is situated close to an elite polo institution and lifestyle centre, Val de Vie. Our product is of that calibre and we are absolutely targeting the top end of the market.

“We are still playing with the model but it will be around 220 homes. We are also going to create orchards so people can live off the food that grows. The farmers in the area will take care of the orchards and take the fruit to market to sell.”

Expanding out of an area that Brookes knows, and an area where the company has seen significant success in its relatively short life, will be a difficult move. Fortunately, life in the property and construction industry is not new for her and few things can surprise this industry veteran. “While my husband is not involved in the day-to-day operations of the company at all, I am fortunate that I can bounce

// I HAVE TAKEN THE MODEL TO THE NEXT LEVEL BY OFFERING THAT UNIQUENESS AND THAT BESPOKE DETAIL THAT YOU CANNOT GET ELSEWHERE RIGHT NOW // 6 / www.enterprise-africa.net

ideas off him, and I have grown up in property development for the past 18 years where I have eaten, drunk and slept property.

“I have taken the model to the next level by offering that uniqueness and that bespoke detail that you cannot get elsewhere right now.”

In the longer term, Legaro is looking to KZN and Durban, targeting presence in the country’s three major provinces. Again, the same model would be rolled out if any plan there comes to fruition. “I believe in sticking to a level, I do not believe in going for the cheapest,” says Brookes.

“We want to go national. Next year, Cape Town will be our first move out of Johannesburg. We are also looking at a site in the Ballito area of Durban. There is a beautiful colonial building that is going up for sale and we are considering buying and renovating, bringing in a new lifestyle for that area.”

LEGARO PROPERTY DEVELOPMENT

LASTING LEGACY The name Legaro will be entrenched in the history of Johannesburg thanks to the six-star building that the company has masterminded. But Brookes is keen for her business to leave a lasting legacy, beyond just bricks and mortar.

The very essence of the business has always been about family, and that is heritage that the company will leave.

“We have travelled extensively, and we are fortunate enough to see some of the finer things in life, so I suggested that we create a more upmarket development business.

We employed my brother-in-law as Technical Director, as he is fantastic at what he does, and I started as Managing Director with the idea that my step son would take over when he is ready. I would then follow the part I love and enjoy, which is on the

creative side, and my daughter could come in as Marketing Director. We wanted to get back to being a family business with a truly special product.

Ever since our establishment, we have grown significantly,” she explains.

“This is a family business and I do want it to go from generation to generation as there is a passion for it. The children have grown up surrounded by the industry, they know property, and they fully understand the business.”

Although the transition from one generation to another is still a way off yet, when it does eventually happen, the market is sure to receive the same levels of quality that the company has become renowned for. Standards slipping is simply not an option for Brookes.

“We are going to be growing but we are going to keep our product at

the same standard. I will never drop the standard of anything, every toilet will always be of the highest quality.

Whether it’s 292 apartments or five homes, quality will never drop,” she says.

The name ‘Legaro’ comes from Brookes’ own desire to bring a new light to the property development space.

Leggero translates from Italian to mean light, and that is very much the image she wants to project – a company which is shedding new light in the industry, and also acting in a light way, not heavy on its feet – quick and nimble in changing market conditions.

Ultimately, it is market response that determines your success in the property industry, and Legaro’s feedback has been fantastic. “We try hard and we are competitive. We have taken market share from others in our area and if people want to downsize

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INDUSTRY FOCUS: PROPERTY

from a R30 million house into a R9 million home, they are now coming to us before other developers.”

ALL-ENCOMPASING Legaro has further strength, beyond what you might expect from a company of its age, in the fact that it provides an all-encompassing service, end-to-end, and this is how standards remain so high.

From architect to plumber to labourer, the company has built fantastic relationships and a value chain based on trust and quality. So many businesses claim this, but very few make it a reality.

“In the building industry, if you can gain respect from the men and women on the ground, then you can definitely take your business forward,” says Brookes.

“We have lots to learn but mixing with the right team gives us the

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advantage. Everyone from our town planners to architects to the interior designer to the project director; we have all played a big role getting the company to where it is.

“Keeping it all inhouse allows us to be hands on with our projects as opposed to leaving it to tender. We like to make sure things work. When we outsource, we deal with individuals. If someone says they will work with us, that means they will work with us, not their site people or staff. This ensures the highest quality and ensures quality and environmental friendliness for our customers,” she adds.

The model that Brookes and team have developed will remain the same, whatever the size of the project.

Because quality is paramount, and so far quality has been delivered, right now there is no reason to change.

This model has brought success and positioned Legaro, in just two short

years, as an industry frontrunner.

“I would like to say we are because of the nature of the awards that we have collected for our green building,” admits Brookes. “I like to think we are considered in line with

// I LIKE TO THINK WE ARE CONSIDERED IN LINE WITH THE TOP BUSINESSES AND TOP PEOPLE. WE ARE CERTAINLY KEEPING WITH TRENDS AND ALWAYS TRYING TO FIGURE OUT WHAT THE CONSUMER NEEDS AND WANTS //

LEGARO PROPERTY DEVELOPMENT

Morsim Road, Hyde Park

Morsim Road, Hyde Park

the top businesses and top people.

We are certainly keeping with trends and always trying to figure out what the consumer needs and wants, and trying to help them by offering affordable pricing.”

This is a company bucking the trend in an industry which is fraught with challenges. The building and construction industry has been in decline for the past decade, the economic climate in South Africa has halted major investment, and the financial institutions have been looking closer than ever at their lending. But for companies like Legaro, companies with a real strategy and a product that stands out, there is always a market to work with.

“We are always on the lookout for opportunities. People will continue to buy homes,” says Brookes. “We have three other projects that we are working on in the Hyde Park node.

We are busy with plans and approvals, some are 150 units and some are 10 units, so we are busy. We have three commercial and one residential project in the pipeline.”

The Managing Director understands that the growth of the business will be good for the wider economy and, after meeting with President Ramaphosa, Brookes – a proud South African – is confident about the future, both for business and for the country.

“We understand that you have to hit the bottom to get to the top again,” she says of the economy as it sits now. “I met with Cyril Ramaphosa recently and he told me one of the biggest problems we have as a country is infrastructure. He said he needs developers to help the municipalities.

He is bringing in the private sector to help the government, but he is aware it will take time.”

Despite the economic conditions in the country, one thing is now clear: If you are an investor, homeowner, first time buyer, or business looking for upmarket contemporary workspace, Legaro has the bespoke solution for you, completed with green design in mind, and finished to highest international standards. Already the envy of many developers in South Africa and around the world, Legaro – a shining light in African development – has achieved so much and is only at the start of its journey.

“We feel blessed. Being a woman in the construction industry is not easy but I am trying, alongside our Project Director, to take things to the next level.

I am very proud,” Brookes concludes.

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