FWJK

DISRUPTING THE PROPERTY DEVELOPMENT MARKET

FWJK

The Value-driven

Visionary FWJK is disrupting the property development market with a revitalised approach to real estate that’s been dubbed co-development at cost.

David Williams-Jones, the man behind the method, tells all Writer: Jonathan Dyble | Project Manager: Eddie Clinton

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CONSTRUCTION

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FWJK

T

he explosion of discount days continues to take the world by storm.

According to analytics from Adobe, consumers spent a record $7.4 billion in the 24-hour window comprising 2019’s edition of Black Friday. Hop across to China, and Single’s Day – the local equivalent led by ecommerce giant Alibaba – raked in an astronomical $38.4 billion on November 11, its first $1 billion in sales having been netted in just 68 seconds.

Indeed, the success of these commercialised holidays is entirely reliant upon one simple fact of human nature – people are always on the look out for the next best deal.

“There’s a human psyche that one just cannot resist a bargain,” states David Williams-Jones, the CEO of successful South African property development enterprise FWJK Developments that has created its own concept based on this premise and applied it to the real estate market.

How does this work? The answer lies in its disruptive methodology, coined co-development at cost, which provides investors with the opportunity to invest in property at its actual cost price, allowing them to enjoy the same profit margins enjoyed by property developers.

David Williams-Jones, CEO 4 | Africa Outlook issue 80

“Think about buying a brand-new car,” the Chief Exec explains. “Often, you’d have to purchase it from a plush showroom, where 25 percent premiums are added to pay for the salesmen’s wages, commission, and the other costs associated with running such an outlet.

“Now imagine that you could buy directly from the factory and save on paying these premiums by stripping away these additional costs. This is essentially what we’re offering in the property segment.”

The idea, unbeknown to WilliamsJones at the time, stemmed back to 2003 when he was approached by an engineering company to share the ownership of an office block development.

“The site which this company was working with was double the size that they needed, so I agreed to take up the other half, sold it off for a profit, and didn’t think anything more of it until they approached me again in 2008,” he explains.

“In this second instance, the engineering company needed to double its footprint, so I called a property broker to find out whether there was any office space selling off plan in the specific precinct which they were looking at, to which the broker answered in the affirmative. I asked how much it was, and they said it was virtually sold out at a price of R20,500 ($1,400) per square metre.

“As a quantity surveyor, I knew that the actual cost was about R14,000 ($958), including the land. And that’s when the lightbulb moment occurred – I knew I was onto something.”

Since then, FWJK has built its business on collaboration, working with investors and end users alike to acquire property at cost, removing the 30 or 40 percent premiums that benefit profit-driven developers in the process.

And, mapping out the company’s history, it seems this stroke of genius struck at just the right time.

JD Sebenza Security for big businesses and residential estates has mostly consisted of guards physically patrolling their perimeters; with additional monitoring of the premises via CCTV viewed at their on-site control rooms.

There are however many issues associated with this model, which include collusion between guards and criminals, along with basic human error – falling asleep whilst on watch.

This has helped pave the way for off-site monitoring to rapidly become the fastest growing sector of the security industry, and that is where JD Sebenza’s services come in.

The company’s expertise and solutions covers: • Event driven off-site monitoring (analytics, video feed, alarm intrusion); • Remote off-site monitoring (virtual patrols, alarms, verification via CCTV); • Real time security personnel monitoring and tracking; • Online intelligence.

• With the current economic conditions, businesses are looking to save costs whilst not compromising on security and safety.

This makes the cost effectiveness of independent, off-site monitoring a major catalyst in ensuring its rapid success in the security industry. While traditional guarding can come with increasing costs per guard, off-site monitoring is significantly cheaper.

“Our off-site monitoring services range from continuous remote surveillance to event triggered monitoring, as well as proactive dial in CCTV touring/patrols,” JD Sebenza states. “Our highly trained surveillance operators observe, interpret, predict, anticipate and evaluate the potential risk from our state-of-the-art control centre.”

Another important aspect of JD Sebenza’s business is its commitment to black economic empowerment, the company proudly standing as a B-BBEE Level 2 firm.

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Remote off-site monitoring We at JD Sebenza beleive people with disabilities are an integral part of the South African economy able to contribute to the skills, tax base and development of our country.

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FWJK

Pyro-Cote Pyro-Cote was registered in March 1986 as a specialised passive fire protection company and now leads the market both locally and in neighbouring territories with branches in KwaZuluNatal, Cape Town and Gauteng.

Pyro-Cote employs approximately 200 people nationally, the majority of which come from previously disadvantaged communities and have been trained in the skills of passive fire protection.

Passive fire protection is an important aspect of building design as it provides for the safety of people and minimises building and asset loss for the developer in the unfortunate event of a fire. PyroCote products are designed to meet this criterion and has spent over R1.5 million on product tests in different configurations to ensure our products meet all requirements for commercial and industrial enterprises. Pyro-Cote views this as an integral part of our service and is currently a four-star NOSA rated company.

CO-DEVELOPMENT AT COST Co-development at cost is an elementary way of enabling smaller property investors to co-invest in a pipeline of new prime property developments in any category that they would not ordinarily be able to execute on their own.

The group of co-developers each take on investments of varying sizes in the development depending on their appetite and available funds. In turn, they enjoy the significant profit derived from their portion of the difference between actual cost and single sale retail market prices. Each co-developer remains responsible for their proportionate share of the development managed by FWJK.

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“We introduced co-development at cost in the wake of the 2008 economic recession that had a profound impact on the property market,” explains the CEO. “We were faced with adversity – I was reluctantly forced to consider retrenching seven or eight staff.

“But thanks to this new methodology, we were able to turn adversity into advantage.”

The firm has since grown from a staffing base of 12 or 13 quantity surveyors to become a one-stop development shop comprising 175 professionals, its cost methodology having taken to the market like a wildfire.

“We’ve completed roughly R9 billion ($620 million) in developments over the past decade or so – something to be particularly proud of given our South African context,” WilliamsJones declares.

PROVEN BY PROJECTS Interestingly, FWJK remains the only property developer of its kind.

The viability and popularity of co-development at cost is assured,

In November 2018, Pyro-Cote Cape established Pyro-Systems, Pyro-Detect and Pyro-Product.

Pyro-Cote specialises in passive fire protection for the commercial, industrial, chemical and petrochemical industries where various applications are undertaken pending on the client’s specification: • • • • • • • • •

Passive fire protection of cables Passive fire protection on wood Fire protection of air or cable ducts Passive fire protection of LPG vessels Passive fire protection on structural steel Passive fire protection of openings in walls Passive fire protection of openings in floors Fire curtains and walls Fire box enclosures

Professional association: • Member of the Institute of Steel Construction • Member of the Fire Protection Institute of SA • Construction Industry Development Board (CIDB) certified

reinhardt@pyrocote.co.za

• • • • • • • •

Passive fire protection of cables Passive fire protection on wood Passive fire protection of LPG vessels Passive fire protection on structural steel Passive fire protection of openings in walls and floors Fire curtains and walls Fire box enclosures Clear Fire-Retardant Coatings for timber

ALL OUR SYSTEMS ARE SABS TESTED

Pyro-Cote is an approved applicator of Mandoval Vermiculite’s passive fire protection range of products as well as the approved applicator of the BASF KBS & FSi fire safety system range of products.

PYRO SYSTEMS | PYRO DETECT | Reinhardt@pyrocote.co.za | C. +27 82 929 9384 PYRO PRODUCT | William@pyrocote.co.za | C. +27 71 876 6868 PYRO COTE CAPE | Unit 6Gb Sunrise Park, Sunrise Circle | Ndabeni| 7405 | O. +27 21 111 0449

FWJK evidenced by the explosive growth of the business over the past decade.

However, the firm’s offering remains unique owed to the enormous amount of capital required to operate in such a manner.

The CEO explains: “For co-development at cost to work, you have to purchase land upfront which brings with it an element of risk. Most professionals are risk adverse and prefer to live hand to mouth, but we are fortunate to be working with a strong capital base.”

Indeed, the best evidence of the company’s successful method and impeccable track record comes from its esteemed portfolio of projects.

Take its Ridge office block series, for example. Comprising eight (soon to be nine) separate A-grade commercial office developments in the Umhlanga Ridge precinct of Durban, each block has been designed in accordance with its surrounding environment.

Ridge 7, for example, captures the views provided by the coast and

Durban cityscape with its multi-faceted facades and expansive balconies, while Ridge 8 is built to blend the green and urban spaces that surround it at ground level, doing so using perforated screens and long-spanning glazing elements that provide architectural balance.

Each of these projects have become iconic localised landmarks, a characteristic common of all FWJK’s buildings, also embodied by Illovo Point.

Totalling 15,750 square metres and home to FWJK’s own headquarters, the latter is situated on Illovo, Johannesburg’s highest point, commanding majestic views over Sandton and admired itself as a modern architectural marvel.

It is not just the company’s existing portfolio that showcases excellence, however, its pipeline comprising a number of equally exciting large-scale developments.

Asked to pick out a few highlights, Williams-Jones points straight to

REO Group REO Group was established in 2014 in Durban as a light fitting supplier to various construction projects.

Today we have offices in Durban and Cape Town and specialise in various product solutions.

Lighting solutions We offer professional consultation, designs and supply of comprehensive lighting products, systems and solutions and service the entire market segment.

Architectural ironmongery We offer comprehensive architectural ironmongery specifications and supply an extensive range of products including door handles, locks, cylinders, door controls, panic hardware, hinges and accessories.

Access and security Our smart access and security solutions provide efficient and secure spaces.

www.reo.co.za

Megapile Megapile has become synonymous with piling and lateral support in South Africa over the past decade.

This is due to the dedicated and committed service we provide to our clients, including FWJK. We provide geotechnical solutions from conceptual stage, through budgeting and planning, participation in value engineering and then final implementation.

The co- development at cost model that FWJK has developed has been a contributor to the sustained commercial market growth in KZN which has benefited the local building and construction industry. FWJK’s confidence in continuing to develop in the current market is very positive and commendable. We are proud to be associated with FWJK and congratulate them on their ongoing success in the property development market.

E info@megapile.co.za www.megapile.co.za

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REO Group provides interior building systems, solutions and lighting to the construction industry.

We offer the following complete solutions through our business structure

ACCESS & SECURITY | ARCHITECTURAL HARDWARE | LIGHTING SOLUTIONS

REO Group | info@reo.co.za | www.reo.co.za

FOUNDATION PILING LATERAL SUPPORT GEOTECHNICAL SERVICES SOIL IMPROVEMENT TESTING & ANALYSIS FULL DESIGN CAPACITY

FOUNDATION PILING & LATERAL SUPPORT

info@megapile.co.za | www.megapile.co.za

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FWJK The Vogue – a 37-storey mixed-use development that’s already shaping up to be a centrepiece of Cape Town’s skyline, featuring undulating balconies sandwiched between a bustling ground floor retail complex and penthouse apartments.

“We’re also busy with 16 On Bree, another mixed-use project based in the centre of Cape Town that’s valued at just under R1 billion ($68 million),” he adds. “We’re currently constructing the final six of its 36 floors, with the entire project due for completion in September 2020.”

The firm is also set to break records too, courtesy of FWJK’s Zero 2 One Tower.

Once complete, it will be the tallest building in Cape Town, its 44 storeys set to house 1,450 micro apartments topped off with a viewing deck, while open and protected walkways will allow pedestrians access at various points along the building edge, integrating the skyrise with the urban streetscape.

A ONE-STOP PROFESSIONAL SERVICES SHOP FWJK is extremely proud of the fact that it has been awarded the certificate for the best developer in South Africa by PMR Africa and has also received awards for its architectural, project management and quantity surveying divisions.

In the process of developing timeless buildings and continually diversifying its team, FWJK’s in-house capabilities today span a number of specialised fields. These include, but are not limited to:

Architecture It employs a fully qualified and experienced team of professional architects with a broad background and varied experience in Africa’s architectural landscape. The firm’s architectural philosophy is all about maximising building use and design cost efficiency while ensuring aesthetic significance.

Development management Considered to the cornerstone of the company’s co-development at cost methodology, FWJK’s development managers give life to its pipeline. They identify the best opportunities to pursue, ensuring its investors receive the highest possible return on equity.

Cost engineering With FWJK Cost Engineers having been founded in East London in 1953, cost engineering is what the brand has been built upon, its quantity surveying skillsets providing its clientele with unrivalled services.

Project management FWJK Project Management provides services to both the company’s own projects as well as numerous public and private sector clients in South Africa. Delivery within time and budget has become the hallmark of this practice, the company implementing the latest technologies to uphold this reputation.

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Make yourself at home Since opening its doors in 1984, Strauss Daly has grown, evolved and modernised to become one of the most prominent and progressive legal firms in South Africa. Our team of property experts has the necessary knowledge and experience to assist you with the biggest investment of your life – buying a home. When working with us, you will experience nothing but the best service at the best price during your propertyrelated transactions.

Please come and visit us at one of our branches.

We will make you feel at home.

JOHANNESBURG

UMHLANGA

CAPE TOWN

Tel: +27 (0) 10 201 8600

Tel: +27 (0) 31 570 5600

Tel: +27 (0) 21 410 2200

Fax: +27 (0) 10 201 8666

Fax: +27 (0) 31 570 5799

Fax: +27 (0) 21 418 1415

johannesburg@straussdaly.co.za

umhlanga@straussdaly.co.za

capetown@straussdaly.co.za

Proud to be working with FWJK Profica is a leading property & construction solutions company in africa.

We provide expert consulting services across key sectors throughout the african continent with country teams in various focus areas including project and construction management, as well as turnkey / design & build solutions.

• • • • • • •

Workplace Solutions Space Planning & Design Design & Build / Turnkey Construction Management Retail Tenant Co-Ordination Construction Project Management Programme & Portfolio Management

Illovo Central T: +27 11 234 5828 E: info@profica.co.za W: profica.com

Capital on the Park

CONSULTING ELECTRICAL ENGINEERS SERVICING THE INDUSTRY SINCE MARCH 2000 Proudly involved with FWJK Developments and responsible for the following disciplines: Medium Voltage Installation, Low Voltage Installation, Generators, UPS’ s, Access Control, CCTV, Smoke Detection and Evacuation

Old Mutual

Corner House, Corner of 10th Avenue & Wessels Rd Rivonia, South Africa

Main offices: South Africa | Nigeria | Ghana | Kenya | Cameroon | Zambia | Zimbabwe | Uganda | UAE | Egypt | Mauritius

E-Mail- reception@quadafrica.co.za

32A Kloof Road, Bedfordview, 2007

Website: www.quadgroup.co.za

P.O. Box 1963, Bedfordview, 2008

Telephone Number:+27 10 443-7185

Associate offices: Senegal | Ivory Coast | Tanzania | Rwanda | Mozambique

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FWJK

Sir Lowry Square

“The beauty of our developer model is the fact that we can push the accelerator down or tap off depending on our workflow,” the Chief Exec states.

“It’s almost like a ship with perpetual motion. We’ll keep producing new developments and open up in new territories with the belief that this methodology will always capture the attention of the market.”

MAINTAINING MOMENTUM It is at this point that Williams-Jones eludes to the firm’s impending UK expansion, inciting confidence that FWJK will be capable of disrupting the London market in a similar manner.

“The concept is the same – instead of paying £500,000 for an apartment, we’d be able to provide the same product for just £375,000 or 12 | Africa Outlook issue 80

“WITHOUT OUR STAFF, WE WOULD NOT BE IN BUSINESS... WE VALUE THEIR CONTRIBUTIONS IMMENSELY, OFFERING THEM WITH THE OPPORTUNITY TO PROFIT FROM OUR INVESTMENTS AS WELL AS PROVIDING BURSARIES AND TAILORED TRAINING PROGRAMMES WHERE POSSIBLE” £400,000,” he reiterates.

Meanwhile, in South Africa, the firm is busy working to develop a second methodology in order to capitalise on recent regulatory changes introduced

by South African Revenue Service (SARS) that aims to deploy greater investment into the hospitality sector.

“This governmental strategy, under Section 12J, complements our existing model quite nicely,” the CEO affirms.

“The idea is to generate investments using tax that would otherwise be paid to SARS, recouping and deploying these finances into new hospitality products.”

Combining these diversifications with FWJK’s existing commitments, it is undoubted that the firm will become increasingly busy over the coming months as its workload continues to heighten.

CONSTRUCTION

(PROPRIETARY) LIMITED

AIR CONDITIONING & REFRIGERATION ENGINEERING CONTRACTORS

P.O. Box 783564, Sandton, 2146, South Africa 114 Richards Drive, Halfway House, Midrand

Tel: +27 (0)11 315 1332 Fax: +27 (0)86 665 1385 Email: company@enviroware.co.za

Enviroware Construction, engineering contractors, established since 1981, are synonymous with providing HVAC+R solutions to various sectors of industry.

Anthony pools was established in 1976 and one of the longest serving members of the NSPI

The staff and management are committed to project completion of technical and installed excellence; and customer satisfaction is our primary objective. Providing service excellence on project requirements through innovative, quality assured and cost effective solutions.

ISO 9001:2015 Certificate No. ZA18/210220

021 511 6056 info@anthonypool.co.za 371 Koeberg Road, Rugby, 7405

We are DNKA, a multidisciplinary, client centric accounting firm.

We are proud to partner with FWJK on the Illovo Central Project.

Proudly since 1985

We specialise in supporting our clients with bespoke, fit for purpose solutions adding value to their businesses.

Our services include: • Assurance, • Accounting, • Tax, • Business Advisory.

Tel +27 31 767 0431 Email info@dnka.co.za dnka.co.za

A member of the Electrical Contractors Association of South Africa T: (021) 700 7280 E: hq@goddards.co.za W: goddards.co.za

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FWJK

“WE’VE GOT A METHODOLOGY THAT INSULATES US TO A LARGE DEGREE FROM TOUGH ECONOMIC ENVIRONMENTS AND THE TRIBULATIONS IT BRINGS, AND FOR THAT REASON I’M EXCITED FOR THE FUTURE, WHEREVER IT MAY LEAD US”

Illovo Central

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And here, its emphasis on establishing sound relations with employees and partners alike will bear fruit.

“Without our staff, we would not be in business,” Williams-Jones states, first eluding to the former. “We value their contributions immensely, offering them with the opportunity to profit from our investments as well as providing bursaries and tailored training programmes where possible.

“Property development is a specialised field, but we’re fortunate in that we’re able to attract professionals simply by being at the coalface. We are not a quantity surveying practice contracted to a property developer – we are a property developer, which gives our employees a sense of ownership over the business’s success.

“Likewise, we choose our partners carefully and like to support those that support us with great services.

“We work with a mixture of local and international contractors,

Africa, Roll-Up Serranda offers a versatile and aesthetic product range that provides safety, security and access solutions, including specialised applications such as fire, hurricane-force winds, temperature control, access control and high speed.

CONTACT US Head Office Tel: +27 11 494 5809 | Fax: +27 11 494 5813 Email: doors@rollup.co.za | Website: www.rollup.co.za Also main centres, out-lying areas & international

often working with world leaders when it comes to sourcing crucial building assets such as elevators or generators.”

Owed to the firm’s ability to lean on these two supporting pillars as its uniquely innovative co-development at cost operating model continues to gather momentum, the future looks incredibly bright for FWJK. Reiterating the significance of milestones such as the UK expansion and completion of Zero 2 One Tower, Williams-Jones ends our conversation on an optimistic note, highlighting the company’s opportunity to take major strides both at home and overseas moving forward.

“Property development is a tough market everywhere, and generally speaking it’s been a tough year for all industries in South Africa,” he reveals.

“Thankfully, we’ve had the advantage of being front and centre in the wholesale property market where there’s an

abundance of buyers and investors still looking for bargains.

“Perhaps we’ve been fortunate in our ability to carry on with projects when other profit driven developers have had to pull their horns. I think back to the economic recession in 2008, when we sold out three office buildings in three months at a time when people were declaring bankruptcy left, right and centre.

“But we’ve got a methodology that insulates us to a large degree from tough economic environments and the tribulations it brings, and for that reason I’m excited for the future, wherever it may lead us.”

FWJK davewj@fwjk.co.za www.fwjk.co.za

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FWJK CAPE TOWN: 7 Bree Street, Touchstone House, Suite 1201, Cape Town, 7103

JOHANNESBURG: Office Suite 901, Illovo Point, 68 Melville Road, Illovo

Tel: 021 418 7920

Tel: 011 463 6450

DURBAN: Suite 1, Strauss Daly Place, 41 Richefond Circle, Ridgeside, Umhlanga, 4319

davewj@fwjk.co.za

Tel: 021 418 7920

www.fwjk.co.za PRODUCED BY AFRICA OUTLOOK MAGAZINE