South African Property Review June 2015

South African Property Review

PROPERTY SOUTH AFRICAN

REVIEW

The Annual SAPOA International Convention and Property Exhibition: Report back

INNOVATIVE XCELLENCE AWARDS And the winners are...

June 2015

YOUR NEW SAPOA PRESIDENT Mike Deighton takes the reins

AFRICA SERIES With an ancient past, Egypt is focused on future prosperity MONT BLANC Projects & Properties Placing responsible development ďŹ rst

The REAL in Real Estate June 2015

Our Convention report back

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contents

June 2015

PROPERTY SOUTH AFRICAN

Abland

REVIEW

South African Property Review

PROPERTY SOUTH AFRICAN

June 2015

REVIEW

YOUR NEW SAPOA PRESIDENT Mike Deighton takes the reins

The Annual SAPOA International Convention and Property Exhibition: Report back

INNOVATIVE XCELLENCE AWARDS And the winners are...

ON THE COVER Mont Blanc Projects & Properties places responsible development first

AFRICA SERIES With an ancient past, Egypt is focused on future prosperity

Abreal

MONT BLANC Projects & Properties Placing responsible development first

The REAL in Real Estate June 2015

Our Convention report back

Cover with Spine_JUNE_SUBBED.indd 1

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2015/06/02 2:30 PM

From the CEO From the Editor’s desk Industry news Education, training and development Legal update Don’t be left in the dark Planning and development Creating integrated spaces Interview Meet Mike Deighton SAPOA Board Meet the new team Theme leader Convention report back Innovative Excellence Awards SAPOA Journalist Awards and exhibitor stand winners Africa uncovered Egypt Cover feature Ahead of the curve On show Three’s a charm Western Cape Golf Day Sundowners with SAPOA Statistics What’s on Upcoming events Off the wall Bentel boosts Durban’s retail

Oilgro

FOR EDITORIAL ENQUIRIES email editorial@sapoa.org.za or managingeditor@sapoa.org.za.

Published by SAPOA, Paddock View, Hunt’s End Office Park, 36 Wierda Road West, Wierda Valley, Sandton PO Box 78544, Sandton 2146 t: +27 (0)11 883 0679 f: +27 (0)11 883 0684 e: sales@sapoa.org.za Editor in Chief Neil Gopal Editorial Advisor Jane Padayachee Managing Editor Mark Pettipher Editor Candace King Copy Editor Ania Rokita Production Manager Dalene van Niekerk Designers Wade Hunkin, Dirk Knoesen Sales Riëtte Stevens Finance Susan du Toit Contributors Anne Schauffer, Eugenia Makgabo, Lekgolo Mayatula, Martin Ferguson Photographers Mark Pettipher, Xavier Sauer, Pierre van der Spuy

DISCLAIMER: The publisher and editor of this magazine give no warranties, guarantees or assurances and make no representations regarding any goods or services advertised within this edition. Copyright South African Property Owners’ Association (SAPOA).

All rights reserved. No portion of this publication may be reproduced in any form without prior written consent from SAPOA. The publishers are not responsible for any unsolicited material.

P R O P E R T Y

F U N D

Printed by Designed, written and produced for SAPOA by MPDPS (PTY) Ltd e: mark@mpdps.com

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e: david@rsalitho.co.za

2015/06/03 11:33 AM

from the CEO

The rise of eco-mobility In light of the current effort to transform our cities, SAPOA CEO Neil Gopal highlights the move towards eco-mobility in Johannesburg

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long with stakeholders, the City of Johannesburg is working towards creating a city where citizens want to live, work and play. In an effort to re-stitch Johannesburg, the city is embarking on a new spatial vision in line with the GDS 2040 Strategy, based on corridor transitoriented development.

The goal is to transform the city into one that’s integrated, boasting high-density mixed-use development as well as wellplanned transport arteries, known as the “Corridors of Freedom”.

With the introduction of infrastructure to make public transport, walking and cycling easier, safer and more affordable, significant changes are being implemented in parts of Johannesburg, especially around the Sandton CBD. However, introducing more public transport or cycle lanes will not necessarily mean that people will get out of their cars to use public transport or cycle. To solve this, one key initiative would be to shift the mindsets and modes of citizens. This involves getting residents together – out of gated communities and social isolation – and onto the streets and into public and open spaces.

The city needs to enable and support behavioural change by providing high-

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quality public transport information, making sure these modes are safe through enforcement and awareness, and activations and campaigns.

In light of the latter, the city will be hosting an EcoMobility World Festival in the Sandton CBD during October 2015.

Taking place from 1 to 31 October, the festival will involve various events and activities held primarily in certain streets that will be closed for the duration of the festival, while alternative travel arrangements will be made using public transport, walking and cycling.

The EcoMobility World Festival will provide various opportunities for businesses.

The primary objective of the festival is to enable behavioural change from private car use towards eco-mobility (walking, cycling and use of public transport) in the City of Johannesburg.

The festival also aims to showcase the infrastructural interventions that the city would be doing or has done in order to promote eco-mobility (including Rea Vaya BRT, cycle lanes, and “Park and Rides”).

The festival will promote Jo’burg as a cycling-friendly city, and will show and promote other non-motorised and alternatively powered vehicles as means of mobility. It will increase the patronage of Rea Vaya BRT, Metrobus and other forms of quality public transport.

It will also illustrate the benefits of reduced congestion and eco-mobility to productivity, quality of life, air quality, and emission standards; and promote walking and cycling (and other eco-mobility modes) as part of a healthy and sustainable lifestyle.

The festival will highlight legacy projects such as the development of Rea Vaya BRT infrastructure (including lanes and stations being constructed in the middle of the road, such as Louis Botha Ave from Hillbrow to Marlboro and Katherine Ave from Marlboro to Sandton). Other infrastructure development includes the new bridge over the M1 at Lees Street and the upgrading of surrounding roads and intersections.

On Rivonia Road, Fredman Drive and 5th Street, a public transport loop is being developed – a dedicated lane along the kerb with attractive stops and shelters. The Sandton Gautrain Station will include a taxi rank, metered taxi holding and new taxi holding facilities on the corner of West and Katherine. A public transport interchange next to Pan Africa in Alexandra is being developed.

In terms of walking and cycling infrastructure, the Great Walk is being developed – a 5km dedicated pedestrian and walking lane from the centre of Alexandra to the centre of Sandton CBD, with a dedicated bridge over the M1 at the Grayston offramp.

Cycle lanes are also being developed in Sandton on Maude, West and Alice, as are lanes from Rosebank to Sandton.

The city is in discussion with partners about bike-sharing schemes (Cycology in the Sandton CBD); the donation of bikes to learners in Alexandra and Diepsloot (Qhubeka, Freedom Ride); as well as the development of a bike park in Alexandra.

The city would also like to explore partnerships for introducing more robust bikes at affordable prices.

The key challenge for the city is to secure opportunities for partnership with the private sector as well as communities in the city.

SAPOA is keen on supporting the city in this great effort towards eco-mobility.

Neil Gopal, CEO

The month-long festival will have the following components: ●● Legacy projects (infrastructure, donation of bikes) ●● Closing of certain streets in Sandton for a month, and the provision of alternative forms of transport to those who would usually use their private car ●● EcoMobility Dialogues during the week of 5 to 9 October 2015 ●● Month-long EcoMobility Exhibition showcasing local and international eco-mobile vehicles, including a variety of cycles and electric vehicles ●● Street festivals and events

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2015/06/03 2015/04/30 11:04 9:45 AM

from the Editor’s desk

A proud day for African paediatric healthcare Nearing closer to completion, the colossal Nelson Mandela Children’s Hospital signifies a major step in paediatric healthcare on the African continent

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he development of the specialised paediatric Nelson Mandela Children’s Hospital had been on the cards for some time.

The project finally got off the ground in April last year – a feat that Tata Madiba would be immensely proud of.

Nestled on the campus of the University of the Witwatersrand in Parktown, Johannesburg, the ground-breaking Nelson Mandela Children’s Hospital is a sight for sore eyes – specifically the eyes of paediatric healthcare in South Africa and in Africa as a whole.

There are only four specialised children’s hospitals on the African continent – two in Egypt, one in Nairobi and one in Cape Town.

This is a tiny drop in the ocean when you compare these figures to other parts of the world – in Canada there are 23 specialised children’s hospitals, Australia is home to 19, and there are 20 in Germany and 157 in the US. Thus the Nelson Mandela Children’s Hospital is more than a grand development – it’s a major step for social upliftment and medical care on the continent.

The vision of a children’s hospital in Johannesburg is a long-standing one.

The project was initiated by the Nelson Mandela Children’s Fund, which was established by Nelson Mandela in 1995.

Upon the mandate given by the Nelson Mandela Children’s Fund, the project commenced in 2007 with the completion of

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a pre-feasibility study followed by a feasibility study and the conclusion of the business case in July 2012.

Design concluded in 2012 at a cost of R1-billion. Subsequently, the reduced design was concluded in June 2013 at a cost of R750million. Cost of accommodation, training and equipment keeps the project costs at R1-billion.

The sod-turning ceremony was held in March 2014 and construction began on 22 April 2014. In September 2014, the structure

started to take shape; by February 2015 the building was up to roof level.

Group 5 was appointed as the main contractor after the completion of an indepth quantitative and qualitative process.

The project has been funded by more than 60% of South Africans, and R610-million of the capital costs of the project have been raised to date.

The Nelson Mandela Children’s Hospital will house 200 beds; the expansion by another 300 beds has been included in the design of the hospital. It will specialise in haematology, oncology, pulmonology and cardiology, as well as craniofacial, renal and general paediatric surgery.

The hospital will employ about 800 staff members. It is also aiming for a Green Star rating from the Green Building Council of South Africa. The building will optimise as much natural lighting as possible; natural ventilation is also very crucial in its design.

Having visited the construction site recently, I can only imagine what the hospital will look like – families meandering through its corridors; children smiling in their beds; local doctors milling around the rooms.

With development taking shape fast (construction is set to be completed by year-end), Africa anticipates the first patient to be admitted in the second quarter of 2016.

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2015/06/03 11:08 AM

from the CEO’s desk

OR F S IE LOBB U YO Acting Chief Financial Officer Tshwane Metropolitan Municipality Corner Lillian Ngoyi and Madiba Streets Pretoria CITY OF TSHWANE RESELLERS TARIFF 2013/2014

dence sent to yourself on 29 October 2014 refer.

The abovementioned matter as well as our previous correspon to consult with an intention to seek an amiable We would like to reiterate that we endeavor at all times al interests of our membership. solution to issues that infringe on or prejudice the mutu of Tshwane Resellers Tariff has had had on Given the colossal negative implications that the Cityr Counsel regarding the resolution passed by Landlords we have sought a legal opinion from Senios for the supply of electricity. yourselves pertaining to the revision of electricity tariff tions: We would therefore like to highlight the below considera A. THE LEGISLATIVE STRUCTURE

inafter“the ERA”) no person may, without a licence In terms of section 8(1) of the Electricity Regulation Act (here dance with the ERA, be involved in the trading of having been issued to such person by the Regulator in accor n 8(1) is of course the National Energy Regulator, electricity. The Regulator to which reference is made in sectio y Regulator Act 5 (hereinafter “NERA”). duly established in terms of section 3 of the National Energ ly referred to as “NERSA”) has, since inception, The National Energy Regulator of South Africa (common landlords who buy electricity from their local deliberately refrained from granting trading licences to to the tenants who occupy the said landlord’s authority and who then on-sells that self-same electricity r the above circumstances, where such purchase premises. We emphasise that the sale of electricity unde , is subject to the local authority being licensed and sale is associated with the distribution of electricity , by reason of the administrative difficulties

by NERSA. NERSA has seemingly elected to act as it does eeded to licence each and every landlord, who which it would otherwise have encountered had it proc lls the electricity to those individual tenants buys electricity from a local authority and who then on-se who occupy the said landlords’ premises. ired to be licensed, Professor Klees, who served On the question whether every landlord should be requthus: as a legal advisor for the Department of Energy, puts it and separate trading licenses when the buying or “NERSA has apparently refrained from granting additional bution of this electricity. Thus, it could be argued selling of electricity is associated with the generation or distriterms of the ERA only when this is a ‘stand-alone’ that the buying or selling of electricity falls under ‘trading’ in already requires a licence from NERSA.” activity and it is not an accessory of the primary activity, which ved in the reselling of electricity- generally The aforestated have resulted therein that landlords, invol the radar and authority of NERSA. As such their termed “resellers” - presently find themselves beyond regulating framework. activities fall outside the scope of NERSA’s power and its

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from the CEO’s desk

B. NERSA’S CONSULTATION PROCESS a Consultation Paper on the Guidelines for More recently, on 9 February 2015, NERSA published paper”). In this consultation paper, certain Electricity Reseller Tariffs (hereinafter “the consultationtraders in electricity. In the consultation paper guidelines are to be found which deal with non-licenced n reads thus: NERSA also sets out its definition of a reseller. The definitio ration or organisation), that supplies electricity “A reseller is ... a non-licenced trader of electricity (a person, corpo flat building, residential gated sectional title units to dwellings in high density housing complex; residential complex, commercial building(including offices) and/or free stands in a complex, shopping mall or shopping clearly stating the kilowatt hours consumed, the and has the ability to meter its customers and provide a bill tariff per kilowatt hour and the total amount charged.” ler remains “unlicensed or unregistered”, thus NERSA recognises that the resale of electricity by a resel ess activity from a regulatory point of view. resulting in resellers falling within an unregulated busin ority of NERSA and its processes of prescribing Recognising that there exists this major gap in the auth es, that it proposes to focus on developing tariffs to be charged by resellers of electricity, NERSA advised by resellers of electricity. This, albeit a guidelines which will provide for the tariffs to be chargler activities, for the present moment, falls welcome recognition, unfortunately confirms that resel in the position until some or other form of outside the ambit of NERSA’s control. This is likely to remanises and deals with resellers and the resale regulatory framework has been established which recog of electricity by resellers. which of course include local authorities, Interestingly though, NERSA suggests that licensees- ld not be prescribing tariffs at which resellers municipalities and other forms of local government shouaforesaid is subject to one important proviso should charge out electricity to the end-consumer. Theed to customers who are supplied by resellers in the consultation paper, namely that the tariffs charg supplied by the /licensee” “should be similar to those that are charged to customers provided elsewhere in the consultation paper.

The above proviso is however in conflict with what is service level agreements with those resellers Paragraph 35 provides for municipalities to conclude in the reselling of electricity to occupants of who own properties in the area and who are involved terms which such a service level agreement individual units. Paragraph 36 proceeds to deal with the reseller’s pricing structure, should mirror the should ideally contain. Paragraph 36(i) provides that the36(n) in turn provides that the tariff structure, local authority’s approved structure, whilst paragraph t be identical to the approved tariff rates and according to which electricity is resold by resellers, “mus electricity directly from the local authority. tariff structure” applicable to a consumer who receives rs, the consultation paper recognises and Significantly and of greater importance to property owne rate” which a local authority may extend to or provides for an agency fee or a “bulk tariff discount A is aware and appreciative of the fact that afford a reseller. It stands beyond contention that NERS incur expenses and other costs which arises a reseller of electricity will by necessary implication may arise or relate to an array of issues, from the supply of electricity. These expenses and costs g and the recovery of payments due. It would inter alia, including maintenance, meter reading, billin discount rate is directed at remunerating a appear that the aforestated agency fee or bulk tariff facilitate a situation where a consumer, who reseller for the above. Ideally NERSA’s proposal should

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from the CEO’s desk

FOR S E I LOBB U YO tariff per kilowatt amp than what any other receives electricity from a reseller, will pay the exact samea local authority, will be paying. The reseller consumer, who may be receiving electricity directly frombulk tariff discount rate it receives. It is only should however be reimbursed for its expenses by theultation paper would make commercial sense. on such an interpretation that clause 36(p) of the cons t Bill no longer includes “trading” as one of the It is to be noted that the Electricity Regulation Amendmen trading will in future be dealt with as an unlicensed requirements for which a licence is to be issued. Accordingly otherwise. The proposed amendment addresses activity, unless of course it pleases the Minister to determine a strict interpretation of the ERA, required to be the present unsatisfactory situation where resellers are, on n of the complications involved in the process of licensed. However, as previously explained, NERSA by reaso from the requirement to be registered as licensees. licensing a litany of resellers, seemingly absolved resellers to deal with the prescription and enforcement of How the Electricity Regulation Amendment Bill proposesr the ERA, as presently worded, the only manner in tariffs and tariff structures is at present still not clear. Unde enforcement of the licensing process. This may be which tariffs can effectively be regulated upon is by a strict Regulator can then compel resellers to adhere to achieved by requiring all resellers to register as licensees. The cancelled. the prescribed tariffs, under threat of having their licenses that resellers of electricity which include those From the summary above, it should be more than apparent by a local municipality - fall beyond the realms landlords who on-sell electricity, which is supplied to them no effective form of control nor is there any other of NERSA’s present regulatory power. As such there exists resellers do not charge exorbitant tariffs. mechanism in place which is directed at ensuring that these A or the National Legislature to regularise the In my opinion it falls squarely in the hands of either NERS certainly does not fall within the powers of any situation which NERSA has allowed to develop. It most situation. The City of Tshwane has in terms of local authority, like the City of Tshwane, to regularise the s at which resellers may on-sell the electricity. the ERA no authority to regulate upon or to prescribe tariff C. THE SYSTEMS ACT

ution in the Provincial Gazette, the City of It is noted that when publishing the aforestated resol the provisions of Section 75A(3) of the Local Tshwane affected the said publication pursuant to Systems Act). The publication contains and Government : Municipal Systems Act (hereinafter “theis however in this very same publication of its deals with the new tariffs the City will be charging. It uce a tariff structure to be adhered to by resellers. new tariffs that the Cityof Tshwane then purports to introdnes to be imposed on resellers who do not adhere By purportedly introducing penalties and by providing for fi to enforce compliance with its tariff prescription. to the tariffs to be charged, the City then seemingly seeks s Act. Chapter 8 is however limited in its scope, as it Section 75 A falls under and forms part of chapter 8 of the System rity may charge for services. In terms of Section 74, only deals with municipal services and the tariffs which a local autho g with the levying of fees payable with reference a municipal council must adopt and implement a tariff policy dealin ipal council is required to adopt bylaws in line with to municipal services. Section 75 proceeds to provide that a munic ter 8, at best, authorises a municipal council to levy its tariff policy and to provide for the implementation thereof. Chaps need to be levied by a municipal council in terms and recover fees, charges and tariffs. These fees, charges and tariff by the majority of votes passed by its members. Look of a resolution passed by the municipal council, duly supportedany provision which entitles or authorises a municipal as one may in chapter 8 of the Systems Act, one will not find resellers are directed to resell the electricity which council to prescribe tariffs to resellers or to impose a tariff at which

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from the CEO’s desk

our members in

from of k we have had concerns from the CEO’s desafo Act. rementioned objectives implementation of the

aspects of the c) In light of the ners regarding certain ow ty er op pr as y cit pa their ca ial effect or the prejudic ing rd ga re ns er nc ions co provis r ipal boundaries. Similarly there are no a resultto be ght itsou of such hig munic e ertowho fallhliwithin as er who does not re lik resell try to those erefo indus uld ritythsells theelocal ertotybe impo woautho op pr W l resell a cia on sed er mm ty co penal a for e e impose or provid onil toth escounc ipal a munic uenc ations. autho nseq which corises found ded inten un l and economic ramific cia so ve ha . e ribed nc presc se rtedly es purpo s tariff thetat toen adher ion which in pleem im R O F : itted to late regulate and issues guidelines is perm terng Minis S llowi noted e fo ittissta ththe Act, s sthat E te System the of 104 I n sectio Ac to g e Turnin th of ly 7 B rt B ng contained in section 104 which even vague e note that Pa LOd) ation m an arrayUof municipal matters. As is to be expected there is nothi resellers ofreq or on W inf al icity. electr ion ll dit on-se electr uireicityadmay which at ay O rates m the or s ity tariff or the th Y upon te au e regula to ibl ter permits the Minis g the application a respons mental or which ty,on envir of penal forman anydeother orun fine rtake a of sition impo rin the to upon ide te ns nt regula to co ca wered pli “In empo ap not is e ters Similarly the Minis nt, and may also require th den.nt review.” caresellers who do not toe the line. entio epera appli ind e sed ct to fro bjecom upon suuld impo o op beA wo maymbeth e int ayUM m ts en m ss se SPL as of 61 ich to wh t, tions 1 to 32 and 53 men 4 Sec into operation. y 201 Julss that On r1stasofse •othe 52 of SPLUMA would come and 33 ns tio Sec 4 it is our understanding 201 on r be cti se d SepStem ne ULTR tio 1stAofVIRE en •D.On em been th the abov s beneficial forumds tha havye ac tivity which occurs rt an e in agreement wi fo iouich are require varwh the gh spheresen to be Although we arcom ou these of thr and Each n t. ces ) tio nmen vin en As Gover att pro Local UL r s and ou cial iou (W Provin to s var nal, t erecog se es for Natio enprovid en prov m tha ver and sbebe e Lic we d Reatforic. nises ho us ha r Lan n s has nsatio es ate and It dispe oc rn W nt b) pr mode me of Our is g op r vel Th uin to the De cally iss tem ral e specifi Ru distin th more lem is 1gSep turnin ent ofate ob rtmsepar which menta gtethis Depa UMAand Bearin copowe thetheir rs.pr SPLmind by ct for in s be haset regunlation as and lished n da ert. 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Furth nt Tariff towse such on ment es uti imple to it trib ich wers con wh empo a g s kin ue ma iss to Resell upcom ini. ers Tariff 2015/2016. kw Etheing . hearing from you you. k forward to n andnloo hereiremai rward to hearing from ncerights fo ista k ass ed. r loo reserv y d you strictl an for in you re our nk all he that tha e note We nc er kindly take Furthe assista W thank you for your in advance and await your response herein. yoully, We thank You faithfully, Yorsurfaitshfu

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SOUTH AFRICAN PROPERTY REVIEW

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SOUTH AFRICAN PROPERTY REVIEW 2015/06/03 11:46 AM

industry news Sandton City Diamond Walk introduces international super-luxury brands

Diamond Walk, Sandton City’s latest addition

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andton City’s new Diamond Walk, Africa’s definitive luxury and superluxury retail destination, opened to the public on 30 April 2015, adding yet another dimension to the ultimate shopping variety and experience on the continent.

This stylish walk is the chic home of the world’s most coveted luxury retail brands. Sandton City, on behalf of owners Liberty Group and Pareto Limited,

is proud to welcome the following luxury retail brands to the Diamond Walk: Prada, Dolce & Gabbana, Giorgio Armani, Burberry, Ermenegildo Zegna, Billionaire Italian Couture, Jimmy Choo, Tod’s, Louis Vuitton, Gucci and Arque Champagne Crescent.

“The dazzling new Diamond Walk strongly reinforces Sandton City as the prime luxury retail location in sub-Saharan Africa,” says Alex Phakathi, STANLIB Fund

Manager for the Liberty Property Portfolio.

Already established as South Africa’s most desirable shopping destination, Sandton City offers an unparalleled retail experience with more than 330 shops in a contemporary, stylish setting. It is in the heart of the country’s most affluent playground and is the retail darling of Africa’s elite and fashion-forward. +27 (0)11 448 6000, Stanlib.com

Emira is set to become a corporate REIT

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mira Property Fund has announced details of its strategic conversion to an internally managed corporate REIT listed on the JSE. Emira Property Fund is presently a collective investment scheme in property, alternatively known as a property unit trust (PUT).

Emira Property Fund’s Chief Executive Officer James Templeton explains that by converting to a corporate REIT, Emira will simplify and improve its structure, trigger greater shareholder rights for its investors, and gain added functionality for its business.

“Emira will be the same business with the same strategy, assets, management team and prospects but benefit from the foundation of a more streamlined and competitive structure that is better understood by investors worldwide,” he says.

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Emira Property Fund is invested in a quality diversified portfolio of office, retail and industrial properties. Its assets comprise 148 properties worth R12,5billion. It’s also internationally diversified through its direct interest in ASX-listed Growthpoint Properties Australia (GOZ), valued at more than R700-million, with total assets now at R13,5-billion.

In September 2010, Emira Property Fund effectively internalised its management company but, as a PUT REIT, needed to keep the legal entity of its external management company. In 2013 Emira Property Fund was granted REIT status by the JSE, and in 2014 (after extensive consultation) the FSB issued a document laying out the process for a PUT REIT to convert to a corporate REIT.

James Templeton, Chief Executive Officer of Emira Property Fund

By converting to a corporate REIT, Emira Property Fund will remove its external management structure permanently and move its simplified business into a new

legal entity, called Emira Property Fund Limited (New Emira).

New Emira will be listed on the JSE as a diversified corporate REIT. As a corporate REIT, New Emira will no longer report to the FSB, but to the JSE instead.

On 8 April 2015, Emira Property Fund posted a circular to its participatory interest (PI) holders, detailing the proposed transaction for it to become a corporate REIT, and called a general meeting of Emira Property Fund PI holders on 8 May 2015.

Should the resolution be passed, Emira PI holders will receive New Emira shares on a pro rata basis in the ratio of one New Emira share for every one Emira PI held, with trading to commence on 6 July 2015. +27 (0)11 028 3100, Emira.co.za

SOUTH AFRICAN PROPERTY REVIEW

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2015/06/03 11:59 AM

industry news

Atterbury forms new technology company to lead shopping centres into the future

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tterbury recently announced the creation of a new technology company to drive its initiative to best understand consumer behaviour at shopping centres by engaging with customers through multiple digital media.

Combining the words Wi-Fi and Atterbury, the new company is known as FATTi and is managed

by Adrian Maguire. Negotiations are currently at an advanced stage with a number of different mall owners, such as Attacq, to roll out this technology at various malls. FATTi has deployed a solution that enables site analytics, giving Atterbury and their partners’ retail property managers an all-round view of shopping centre performance and customer behaviour. This will help it create better shopping experiences, which means happier customers. The result?

More enjoyable and betterperforming shopping malls.

“In simple terms, never before has it been so easy to connect with specific visitor groupings,” says Maguire. “Promotions can be targeted at specific audiences, grouped by age, gender, interest, location and even the times they visit a shopping centre.

Essentially we are merging the best of retail shopping with the best of online shopping. We know that it’s more important than ever for retail property professionals to be led by consumer changes. Fierce competition from Internet and other shopping channels, coupled with the increasing expectation for a memorable shopping experience, means that shopping centres need to do better to succeed. Those that monitor and respond to emerging customer patterns have the best chance of over-performing.”

By forming FATTi, Atterbury is poised to manage the changing

Newtown Junction in the Johannesburg CBD is the first Atterbury mall where the FATTi solution went live in December 2014, and is currently being piloted

environment in shopping centres. FATTi’s cutting-edge cloud-based software combines information from a wide range of sources to provide Atterbury an unprecedented 360-degree view of its business. It also gives a unique insight into untapped opportunities across any single shopping centre, for Atterbury and their partners’ entire portfolio of retail properties.

“By deploying this software or app with the necessary hardware through our centres, a broad range of metrics has become available to our centre managers,” says Maguire. “With this, they can quickly calculate immediate priorities for attention, revealing previously unnoticed performance patterns and enabling sharper decisions.”

This is a 100% custommade solution for Atterbury, developed by combining the talents of market leaders in different disciplines to create a single value proposition, which starts and ends with the customer. The value proposition uses information from a mall’s end-users to create completely personalised solutions that deliver the right message to the right customer at the right time.

Combining the social benefits of the shopping environment and

private digital channels, the bricks-and-mortar mall and its retailers can now interact effortlessly with visitors and potential visitors within the mall catchment area.

Thanks to FATTi, customers at Atterbury and their respective partners’ malls will be the ultimate winners. In the first joint venture, Atterbury and Attacq recently introduced this technology at their new, jointly owned R1,3-billion Newtown Junction shopping centre in the Jo’burg CBD. Newtown Junction became the first mall where the FATTi solution went live in December 2014.

FATTi is being piloted at Newtown Junction and the initial results have been good.

Other shopping centres set to follow include The Grove mall in Namibia, followed by Garden Route Mall, and Lynnwood Bridge Retail in Pretoria. Retailers at malls where FATTi is set to be introduced will benefit greatly too. Soon, all of Atterbury’s centres and those of their FATTi joint venture partners will offer retailers the power to unlock more meaningful omni-channel shopping experiences by seamlessly merging mall and online retail together.

“By allowing visitors to register and download the mall application, Atterbury and their partners can offer their tenants true benefits and convenience of loyalty-based promotions, discount tokens, mobile online payment for parking and access to worldclass Wi-Fi,” says Maguire. “This is a typical package but benefits can be varied for each shopping centre. The app is optimised for iPhone and Android, with Windows next in line.”

Atterbury and its partners will also see rewards by ensuring every square metre of retail space generates the maximum return on investment. “Attracting visitor volumes isn’t enough,” says Maguire. “With FATTi, we aim to encourage a steady flow of traffic around every area of any centre. The next step is taking FATTi to market systematically. We’re looking at an aggressive roll-out that, at first, focuses on shopping centres larger than 25 000m².

Of course, FATTi offers value for all sizes of shopping centres and even mixeduse developments but the benefits of analytics are exponential for larger malls, so this is the best place to start.” +27 (0)12 471 1600, Atterbury.co.za

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2015/06/03 11:59 AM

industry news

SME property funds launched to drive entrepreneurial investment in South Africa

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usiness Partners Limited recently launched two specialised small and medium enterprise (SME) funds for the property sector: a Property and Property Joint Venture Fund, both aimed at driving property ownership and enabling entrepreneurs to grow their equity base.

Speaking at the launch in Johannesburg, Nazeem Martin, Managing Director at Business Partners Limited, a specialist risk finance company for formal SMEs, said that despite South Africa’s economic challenges, the local commercial property market continues to offer value for potential investors, and entrepreneurs in particular.

“It is anticipated that quality commercial and industrial properties in the country will continue to boast risk-adjusted yields above most other investment classes in the near future,” he says. “We therefore believe that commercial and industrial property remains an attractive investment for

entrepreneurs, either as a sound long-term investment or to secure tenure for their own business operations. The Business Partners Property Fund makes R200-million available to provide affordable finance for SMEs across all industries, allowing business owners to purchase and/or refinance their own business premises. No deposit is required for this type of funding, and the fund will offer 100% financing to qualifying businesses.

“Generally, conventional financiers require a cash deposit before financing a property deal.

The Property Fund will cater to entrepreneurs with viable operating businesses, in existence for more than three years, who wish to purchase their own premises but who have limited capital or security to contribute, or do not want to compromise their business’s cash resources for the deposit.”

Martin says calculations show that by purchasing property for a business premises, business owners can save up to 50%

on premises costs over a 10-year period, without compromising the business’s cash resources. The R250-million Business Partners Joint Venture Property Fund will provide equity or term finance, or a combination of both, for the purchase of a multi-tenanted commercial, industrial or retail property valued between R2-million and R120-million.

Property investments in riskadjusted good locations – those offering good growth and/or return on investment, preferably in metropolitan areas – will be considered for this fund, and property investors are able to play an active role in managing the investment but can also choose to be passive investors.

The fund will also consider a viable property investment that has been over-geared and requires a restructuring of the existing debt, converting from a debt to equity finance model.

“Business Partners Limited has extensive experience in dealing with Joint Venture partners’ specific needs, and has

a proven track record in maintaining successful and well-managed partnerships.”

Martin says the specialised funds form part of the company’s square-peg movement – a campaign aimed at providing further funding, support and mentorship for entrepreneurs with the aim to unleash South Africa’s SMEs. The campaign, launched in September 2014, will see the company introduce a series of specialised funds, each focusing on the upliftment of a particular local sector. To date, a R300-million Manufacturing Fund and a R150-million Education Fund have been launched. “With the launch of these new funds, we seek to achieve a greater developmental impact in the local SME sector,” says Martin. “This is to ensure that local entrepreneurs are able to play their rightful role of generating wealth, growing the economy and creating jobs.” +27 (0)11 713 6600, Businesspartners.co.za

Greenovate Awards: a first for South Africa

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he Greenovate Awards – an exciting initiative launched

by Growthpoint Properties and the Green Building Council of South Africa (GBCSA) – are set to inspire and encourage students of the built environment to discover, explore and invent ways to live more sustainably. It’s a competition in which everyone wins.

Werner van Antwerpen, Head of Utilities and Sustainability at Growthpoint Properties, South Africa’s largest JSE-listed REIT, explains the Greenovate Awards will introduce university students to the thinking behind green building and encourage them to take it forward, into a better, greener future. “The built environment has a major impact on the environment and sustainability,” he says.

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“With the Greenovate Awards, we want to recognise excellence and innovation in students’ own understanding of green principles for the built environment, across all aspects and disciplines.

These aspiring young professionals can potentially transform the way we live, with gentler impacts on the world around us. The Greenovate Awards will link environmental challenges to innovative thinking.” According to the GBCSA’s Chief Executive Officer Brian Wilkinson, besides igniting a new wave of green thinking, the aim of the programme is to educate as many property, construction and quantitysurveying third-year and honours students as possible in green building principles.

This includes awareness of South Africa’s own Green Star rating system. “We want to encourage students to learn about green building and sustainability early in their career,” says Wilkinson.

“Investing in the youth is investing in our future.

These are tomorrow’s leaders who will take the green building movement forward and ensure it continues to innovate and inspire. Essentially, we want them to enter the market as advocates for green building with a passion to create better, more sustainable cities, towns and neighbourhoods. We’re excited at the incredible potential of the programme.”

The awards programme will be set up and piloted at

the University of Cape Town, University of the Witwatersrand and University of Pretoria, and the competition will test the interest of both students and faculty. Yet, just like their vision for environmentally innovative thinking, the founders see the awards programme becoming much, much bigger.

If the pilot is successful, it will be rolled out to all universities in the country with the appropriate built environment faculties. For its inaugural programme, organisers are looking not only for smart green thinking but big thinking too. The challenge is for students to come up with ideas that would result in a research project that promotes a more sustainable built environment.

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2015/06/03 12:00 PM

industry news

Double coup for V&A Waterfront in latest green building rating awards

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n a double coup for the V&A Waterfront, the Green Building Council of South Africa (GBCSA) has awarded both Victoria Wharf and the property’s BP Building 4-star “Existing Building” ratings, reflecting the buildings’ high-level environmentally friendly and sustainable operating efficiency. Victoria Wharf and the BP Building join the Silo District’s No.1 Silo, which was awarded South Africa’s first ever 6-star “As Built” rating last year, making the V&A Waterfront possibly the greenest precinct in Cape Town.

“Sustainability is an integral part of operations at the V&A Waterfront, and we are committed to leadership in sustainability practices in both our future and current development plans,” says David Green, CEO of the V&A Waterfront. “We are thrilled with the addition of Victoria Wharf and the BP Building to our green-rated buildings because we believe it shows follow-through on our environmental promises, and genuine commitment to leaving a sustainable legacy for future generations.”

The V&A Waterfront’s Victoria Wharf, which houses the bulk of retail trade at the Waterfront in 70 000m2 of floor space, is the first shopping centre in South Africa to be awarded a 4-star green rating.

Werner van Antwerpen, head of utilities and sustainability at Growthpoint Properties

These can be applied to any aspect of a building; design, development, planning, construction, materials – anything that makes the way we live greener and our environmental

Similarly, the 9 000m2 BP Building was the first commercial-scale office development in Cape Town that consciously encompassed green building principles in its design and construction.

Both green-star ratings will be valid for three years before the GBCSA’s assessment must be repeated to ensure the sustainability practices have continued.

The GBCSA’s ratings are determined by a building’s performance in nine categories: management, indoor environmental quality, energy, transport, water, materials, land use and ecology, emissions, and innovation. Each category is divided into credits, which address initiatives put in place to improve a building’s environmental performance.

Victoria Wharf achieved an outstanding 53 out of 59 potential points, leading to its 4-star rating. Not to be outdone, the BP Building received 45 out of 49 points, which also led to its new 4-star rating.

“Green” features in the buildings include drip irrigation, lighting controls, electrical sub-metering, a high-performance chilled water plant, use of natural lighting and, importantly, the introduction of a Green Lease Tenant Criteria Reference Manual, ensuring that not only are the buildings

footprint lighter. Round one of the competition will take place internally, and each university’s panel will select the top two projects submitted by student groups.

“Collaboration between different departments will be allowed,” says Van Antwerpen.

“We really hope to see students placed in an environment that requires the use of an integrated approach to problem solving with a shared vision across all disciplines in the built environment.”

Workshops with industry professionals will run from March to September, and the top six projects will be selected by mid-November. The top six groups will then have an opportunity to present their projects to a panel of industry

sustainable, but that their tenants enhance the ecofriendly environment. +27 (0)21 425 2426, Waterfront.co.za

experts selected by the GBCSA and Growthpoint Properties.

A gala dinner and prize-giving will be held on 26 November 2015 to announce the overall winners. The winning group will receive the prize of a big stack of greenbacks for their big green idea – R30 000 in cash. They’ll also get to present their research to leading built environment professionals at the annual GBCSA Green Building Convention.

But the benefits of participation go far beyond the prize. The programme will also provide students with an opportunity to work with leading industry thinkers and possibly expose them to exciting employment opportunities. It will give leading companies direct access to real talent.

Students will also be exposed to the Green Star SA Accredited Professional programme (GSSA AP), which will be made available to entrants at a discounted student rate.

“This includes a supported online course and a face-toface workshop,” Wilkinson says. “On completion of the GSSA AP programme, students will then have the choice to go ahead and complete the online exam and become a GSSA AP and though it is not compulsory, it is definitely recommended.

Importantly, everyone is a winner when innovation for a greener, healthier, more sustainable environment is nurtured – and this is exactly what the Greenovate Awards are setting out to do.” +27 (0)11 944 6598, Growthpoint.co.za; +27 (0)86 104 2272, Gbcsa.org.za

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2015/06/03 12:00 PM

industry news

Growthpoint secures Tiger Brands for Range Industrial Park in Cape Town

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rowthpoint Properties has concluded a deal with Tiger Brands’ milling logistics division to take up 4 600m² of business space on a three-year lease within its new R55million Range Industrial Park development in Blackheath, Cape Town. Tiger Brands’ new premises comprises a large warehouse as well as 400m² of offices, situated at this welllocated Growthpoint development.

“We’re delighted to welcome Tiger Brands to its new premises,” says Riaan Munnik, Development Manager at Growthpoint Properties. “Its tenancy at Range Industrial Park supports its business operations and confirms Blackheath’s status as a top business area.”

With this transaction, Range Industrial Park is now 50% let. The remaining half of the development is ready for other leading businesses to occupy. Growthpoint acquired this strategic property, which consisted of an existing building of 6 300m² and 1,4 hectares of vacant land, in late 2013. It has developed the vacant site into modern industrial warehousing space supported by offices.

Munnik says the vision was to create sought-after big-box warehousing, ideal for storage and logistics operations. Engelbert Binedell, Divisional Director of the Industrial Sector for Growthpoint Properties, believes the Range Industrial Park development correlates perfectly with Growthpoint’s opportunistic approach to developments.

“Blackheath is a growing node with increasing demand,” says Binedell. “We have taken a functional asset and bolted on a new development. The completed product has extracted underlying value.”

This is exactly what Growthpoint Properties has achieved by including features such as

Growthpoint Properties’ Development Manager Riaan Munnik (left) with At Sonday, Growthpoint Properties’ Industrial Portfolio Manager, at the company’s new R55-million Range Industrial Park development in Blackheath, Cape Town.

Tiger Brands has secured 4 600m² of business space in the park

free-standing stacking height of six metres and a maximum stacking height of eight metres. Each warehouse unit has its own fully finished office component complete with dedicated entrance lobby and staff amenities that include toilets and showers.

Range Industrial Park is a secure, accesscontrolled environment. Growthpoint also ensured the development is flexible and has the ability to customise premises to meet the unique requirements of a business.

“As a leading company that strives for best practice, safety is an important issue for Tiger Brands,” Munnik says. “We have helped it reinforce its commitment to safety with some special features for its premises.”

Munnik adds that, in addition to being a quality modern property that offers very affordable rental with modern office space, a big factor contributing to Range Industrial Park’s appeal is its exceptional location.

Ideally located in Cape Town’s growing and highly sought-after Blackheath industrial node, Range Industrial Park is situated on the corner of Range and School roads, near the R300, which is the major link between the N1 and N2 highways, with easy access to both.

In addition, the property is in close proximity to public transport and is a mere 200 metres from the Blackheath train station.

The area is serviced by the Blackheath City Improvement District, which includes topup security and cleaning services. “This node is experiencing significant renewal, thanks to its management as well as improvements to its roads and landscaping,” says Munnik. “Another attractive feature of Range Industrial Park is that it includes opportunities for expansion, making it the ideal platform to support businesses along their growth journey.” +27 (0)11 944 6000, Growthpoint.co.za

Fairvest to acquire a new property portfolio

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iche retail real estate investment trust (REIT), Fairvest Property Holdings Limited recently announced that it has entered into an agreement to acquire two key shopping centres, Middestad Centre and Mega Park in Bloemfontein’s non-metropolitan consumer market, for a total consideration of R229-million. The acquisition will be funded via a combination of debt and/or equity.

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Middestad Centre is a 19 943m² shopping centre, centrally located in the heart of Bloemfontein’s central business district. It is a wellestablished centre within a strong demographic area, with sound trade and an emphasis on pedestrian clientele. Mega Park is a 5 963m² shopping centre located in South Western Quadrant of Bloemfontein.

The centre borders Oranjesig,

which can be characterised as a typical transition area surrounding the Bloemfontein central business district. Mega Park is also situated opposite the Show Grounds, which is identified as a smaller emerging node. Both properties have been acquired at a favourable forward yield of 10%.

“Fairvest’s strategic focus is on retail properties in the highgrowth, lower-LSM consumer

market, providing investors with access to this attractive underdeveloped end of the property market,” says the company’s Chief Executive Officer Darren Wilder. “Our latest acquisitions represent a pleasing fit within the company’s portfolio; the successful conclusion of the transaction would assist Fairvest in maintaining its superior distribution growth.” +27 (0)21 276 0800, Fairvest.co.za

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2015/06/03 12:01 PM

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SOUTH AFRICAN PROPERTY REVIEW

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2015/06/03 2015/04/30 11:10 10:14 AM

education, training and development

Promoting commercial property careers SAPOA’s Career Days foster careers in the commercial property industry

A Martin Ferguson is SAPOA’s HR, Education, Training and Development Manager

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s part of its education strategy for 2015, SAPOA participates in industry career promotions at school and university level on a national basis. The objective of the participation and exhibitions is to promote property careers as the careers of choice to young people in order to attract them for the future sustainability of the commercial property industry.

It is now that time of year when various SAPOA regions identify schools in their area where presentations will be made to Grade 10 to Grade 12 learners to introduce the commercial property industry and the various careers in commercial property.

SAPOA will also participate in various university career days.

The universities arrange for learners to be transported from various urban schools and rural areas to the campuses, where the organisation participates in promoting property careers.

This initiative works very well as SAPOA is not only able to reach more learners and students in order to promote the industry, but learners also get exposure to more faculties, careers and employers in the industry.

SAPOA developed a property careers booklet that is handed out at the school career days.

This booklet outlines various careers in property management and property development.

Each career listed in the booklet is explained in terms of purpose and specific outputs of the career in the commercial property value chain; the minimum requirements for tertiary education; what degree/s can be registered for that

will support the career; and which universities offer the degree/s. The booklet also outlines the competencies, skills and knowledge required for the specific career path.

SAPOA has also developed a student handbook that is handed out at school career days and university career days. This handbook features profiles of people who made their mark in the property industry and provides advice for potential students. The handbook also features past SAPOA bursary students who have started careers in the property industry.

The handbook further introduces students to the SAPOA Property Students Forum, a forum that endeavours to create an interface between property students and the property industry. This helps SAPOA to stay in touch with students at university level who will potentially be future property industry employees.

Finally, the handbook profiles SAPOA’s member companies that offer bursaries, internships and graduate programmes. We believe the SAPOA booklets will help the students to make an informed decision regarding a career in the commercial property industry.

It has been our experience in the past that learners and teachers showed much interest in the careers in the commercial property industry.

We sincerely hope to see an improvement in the registrations for property-related studies at South African universities in the future.

One of the challenges identified is that many students at matric level do not have mathematics or science, or they have mathematics literacy that will create a problem for them in enrolling in property-related fields of study such as BCom, BSc or legal study directions.

We further believe the career days should target learners from Grade 9 – they will have a clearer idea of what subject choices to make for their senior years at school as this directly affects their future choices.

Last year, the Association of Built Environment Students hosted its first-ever Connect Career Day and Conference in the Western Cape, which gave students an opportunity to connect with companies from the property industry and learn more about the industry. SAPOA attended the Career Day, which was a great success.

SAPOA wishes to thank all its Regional Secretariats, the SAPOA Education, Training and Development Committee, SAPOA employees in the HRD Department and, mostly, our members for the time and effort they put in by attending and participating in the career days.

Without your commitment, they would not be possible.

For more information, please contact: Martin Ferguson Human Resources, Education, Training and Development Manager t: +27 (0)11 883 0679 e-mail: martin.ferguson@sapoa.org.za

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interview

In hand and online, SAPOA’s South African Property Review has a far-reaching appeal - not only does the print version get mailed to a 2000+ targeted database, it also enjoys a monthly online impression rate of over 3675 hits, with an average read of upwards of six minutes per issue.

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Getting your brand noticed by the leading decision makers in South Africa’s commercial property industry - you know it makes sense

Published by SAPOA, Paddock View, Hunt’s End Office Park, 36 Wierda Road West, Wierda Valley, Sandton PO Box 78544, Sandton 2146 t: +27 (0)11 883 0679 f: +27 (0)11 883 0684 www.sapoa.org.za

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4:19 PM 2015/06/04 4:17

legal update

Don’t be left in the dark Landlords are cautioned to heed against the cutting off of tenant’s electricity

L Eugenia Makgabo is an Admitted Attorney of the High Court and Legal Manager at SAPOA

andlords are constantly faced with frustration when tenants do not fulfil their contractual obligations. This leaves the landlord in a situation where they could potentially be left out of pocket. A scenario that is popular is the non-payment of electricity by tenants.

In the Anva Properties CC v End Street Entertainment

Landlords are constantly faced with frustration when tenants do not fulfil their contractual obligations.

This leaves the landlord in a situation where they could potentially be left out of pocket.

A scenario that is popular is the non-payment of electricity by tenants Enterprises CC case (hereinafter referred to as the case), there is evidence of the above-mentioned conduct by a tenant.

Anva Properties CC (hereinafter referred to as the applicant) sought an order authorising it to terminate the electricity supply to premises in a building situated at 34-36 Riebeeck Street, Cape Town. The applicant owns the building and

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End Street Entertainment CC (hereinafter referred to as the respondent) was one of the tenants occupying it.

The applicant pays electricity to the City of Cape Town and recovers that cost from the tenants. The respondent occupied the basement of the building since 2012, from where it conducted business as a bar and nightclub.

The respondent used electricity for its air-conditioning, refrigeration and lighting facilities, which were the primary requirements for the business to be functional. It was established that the tenant had not paid its electricity bill since September 2014; and that it is in arrears in excess of R300 000.

Considerations The respondent raised two defences. The first related to the validity of the lease and the second to the right to bring an action by the landlord. ●● Firstly, it was contended that on the applicant’s own showing, the respondent was finally deregistered in 1998, long before it purportedly entered into a lease agreement with the applicant on 7 May 2012 to hire the premises.

Secondly, the applicant has no locus standi to claim payment of any debt from the respondent because it has ceded all its rights to Nedbank Limited. Consequently it has no right to recover any amount under the ceded debt. ●● It is settled law that deregistration puts an end to the existence of a corporate entity. No steps have been taken to restore the respondent to register

of close corporations, and even if these had been taken, the restoration of a close corporation under the Close Corporations Act No. 69 of 1984,

The only defences available to the landlord would be that the tenant failed to prove one of the two essential spoliation requirements, namely possession or dispossession, which would be a mammoth task read with the Companies Act No. 71 of 2008, does not necessarily mean that all of its activities during the period when it was deregistered are automatically validated. ●● Given the above-mentioned established facts it was recognised that no valid lease agreement was entered into between the parties, and that the applicant’s claim for the relief based on a lease purportedly entered into between the parties cannot succeed. ●● Further, given that the respondent has been deregistered and that the lease agreement purportedly concluded is invalid, it is unnecessary to deal with respondent’s second defence.

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legal update Judgment The judge held the following: ●● The applicant is authorised to terminate the supply of electricity to the premises that the respondent occupies, situated at 34-36 Riebeeck Street, Cape Town, and from which the respondent conducts a bar and nightclub known as Decodance Underworld Nightclub. ●● The occupant/s of the premises shall grant an electrician, appointed by the applicant, access to it in order to disconnect the electricity supply to the premises. ●● The occupant/s of the premises is/are prohibited from tampering with any seal installed by the electrician, so as to reconnect the power supply to the premises. ●● There is no order as to costs.

The interpretation of this judgment has been plagued with varied opinions, the most concerning view being that the judgment now gives all landlords the licence to singlehandedly terminate electricity of defaulting tenants.

On the contrary, this judgment was passed in accordance with unique facts placed before the judge and the outcome took cognisance of same. This is a judgment that gives landlords comfort that there is recourse available in the event that a tenant does not pay for electricity supply, and could act as a deterrent for tenants who simply have disregard for their obligations.

This being the position, the law must be taken into consideration at all times during the existing relationship between the landlord and the tenant. The lawful avenue that should be taken with regards to the cutting off of electricity supply is via the courts, as evidenced by the applicant. In other words, a landlord must apply to court for an order to terminate the supply of electricity.

Should a landlord unlawfully cut off the electricity supply of a tenant, the tenant can immediately apply to the court for a spoliation order, also known as a mandament van spolie. The essential requirements for such an order entail the following: a. The applicant must allege and prove that he was in peaceful and undisturbed possession of property. b. The applicant must allege and prove that he was unlawfully deprived by the respondent of his possession.

As Rush Limbaugh profoundly states, “In order for the Constitution to work, you have to have law-abiding people. You have to have people willing to obey the Constitution, willing to follow the law” The only defences available to the landlord would be that the tenant failed to prove one of the two essential spoliation requirements, namely possession or dispossession, which would be a mammoth task.

This order is clearly in existence to prevent landlords from taking the law into their own hands by dispossessing their tenants, the rationale being that the law does not leave room for people to act outside of its boundaries. An aggrieved person who could feel “entitled” to dispossess another is given an opportunity to do so during court proceedings and is allowed to bring the matter to court on an urgent basis. The judge will then assess

the rights and obligations of both the landlord and the tenant without any form of dispossession taking place before an order is made.

The historical principles underlying mandament van spolie were laid down in the judgment of Innes CJ in Nino Bonino v De Lange as follows: “It is a fundamental principle that no man is allowed to take the law into his own hands; noone is permitted to dispossess another forcibly or wrongfully and against his consent of the possession of property, whether movable or immovable. If he does so, the court will summarily restore the status quo ante, and will do that as a preliminary to any inquiry or investigation into the merits of the dispute”.

Further it was established in the Shoprite Checkers Ltd v Pangbourne Properties 1994(1) SA 616 (W) case where Zulman J stated the following: “It is trite that the purpose of the mandament van spolie is to protect possession without having first to embark upon an enquiry, for example, into the question of the ownership of the person dispossessed.

Possession is an important juristic fact because it has legal consequences, one of which is that the party dispossessed is afforded the remedy of the mandament van spolie…”

Landlords are urged not to take the law into their own hands by cutting off electricity but rather to allow the law to run its proper course, therefore eliminating any action being taken against the landlord.

The courts have clearly shown that they will not take lightly to defaulting tenants and will assign proper measures to deal with such incidences.

As Rush Limbaugh profoundly states, “In order for the Constitution to work, you have to have law-abiding people. You have to have people willing to obey the Constitution, willing to follow the law.”

This legal opinion is only a guide and should not be copied with the expectation that it will serve each party’s individual circumstances.

Most of these recommendations have not been tested in our courts. SAPOA cannot guarantee any success in any court if any of these recommendations are put to use.

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planning and development

Creating integrated spaces A phrase that strongly resonates within the property industry is live, work and play – a concept that both the public and private sector is striving to achieve

Lekgolo Mayatula is SAPOA’s Planning and Development Manager

The ability for the industry and the state to create integrated spaces that effectively bring together the elements of live, work and play with the intention of creating mutually inclusive communities, is indeed one of the major building blocks towards a transformed and healthy society.

The positive contributions of wellmanaged precinct collaborations are represented in the core pillars of sustainable design, which are economically, socially, institutionally and environmentally connected Managed precinct collaborations are often criticised (depending on their service offering) for interfering with the local municipalities’ ability to fulfil its mandate of delivering basic services to its citizens 22

Technology and its seamless integration into nearly every facet of our lives has made us more connected to one another.

However, this has come at a price: we are constantly in a rush, always on, forever accessible and available on demand. The results, if not managed properly, could lead to exhaustion and longterm health complications.

The challenge this presents for the built environment is whether or not it is agile and adaptable enough to positively respond to the necessity for integrating and creating communities that are

owned and managed by the citizens for their benefit, creating a one-stop design solution.

The one-stop design solution can be demonstrated through the establishment and implementation of managed precincts. South African has a variety of managed precinct collaborations, including city and business improvement districts, urban improvement precincts, special ratings areas, and management, property, lot owners and homeowners associations.

These collaborations are adaptable for both urban and rural developments and are, essentially, a collective and sustainable partnership between property owners in specific areas (or neighbourhoods or precincts) who agree to work together (with or without) their local authorities, to manage public spaces through the provision of a number of agreed-upon services, of which services such as cleaning, security, landscaping, maintenance, marketing and general place making are key components.

These management precincts are either established in terms of enabling legislation or voluntary management initiatives.

Although there are many benefits associated with managed precincts, such as the increase in property value, reduction in criminal activity, and the creation of vibrant, clean, economically viable neighbourhoods, the challenge is usually access to funding, which in turn allows for the sustainable operation of the managed precinct concept.

Managed precinct collaborations are often criticised (depending on their service offering) for interfering with the local municipalities’ ability to fulfil their mandate of delivering basic services to their citizens, but given the scarce resource availability within local government and the service delivery protests that have affected South Africa, such initiatives should be seen positively by government, as they allow for services to be rendered by the citizens via their established organisations and, they also reduce the burden on the strained municipal resources.

This in turn allows the municipalities to channel their resources to other major projects within their jurisdiction.

The ability for the industry and the state to create integrated spaces that effectively bring together the elements of live, work and play with the intention of creating mutually inclusive communities, is indeed one of the major building blocks towards a transformed and healthy society

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planning and development

Municipalities could also investigate and incentivise organisation or communities that effectively manage their precincts or neighbourhoods, and this could be done through introducing rates rebates as a beneficial trade-off.

The positive contributions of well-managed precinct collaborations are represented in the core pillars of sustainable design, which are economically, socially, institutionally and environmentally connected.

Some examples of these are described below:

a) Economically ●● Improved vehicular and pedestrian traffic and attracting tenants to the area will drive business turnover and rentals. ●● Stable tenants and increased rentals drive property values. ●● The potential for better property values attracts new investment in all types of developments. ●● Successful collaboration models can be replicated in other communities and this allows for their upliftment.

b) Socially ●● Safety and cleanliness improves movement in and use of public spaces, which promotes effective and creative usage. ●● Establishing partnerships with social and welfare organisations helps communities deal with their social issues within their neighbourhoods. ●● Place management builds communities.

c) Institutionally ●● Enabling legislation allows for the establishment and management of managed precincts, and provides an institutional framework and platform to facilitate collective and collaborative partnerships between property owners, and between local government and property owners. ●● Managed precincts are more likely to access government funding in order to develop and upgrade key economic nodes. ●● The collaboration empowers communities to speak in one strong voice, which is a great benefit when dealing with government and other stakeholders.

d) Environmentally ●● Safety and cleanliness improves the environment for those working in, living in and visiting the neighbourhoods/ precincts. ●● Managed precincts are an important mechanism in ensuring sustainable compliance with environmental legislation for all types of developments.

The concept of managed precincts has operated in South Africa since the mid-1990s. Over the years the benefits of this concept have produced great live, work and play areas. The Maboneng Precinct in Johannesburg, Green

Point Park in Cape Town and the KwaMnyandu Shopping Mall in Umlazi township in Durban are some examples of well-managed precincts that encourage the ethos of integrated spaces.

Even though South Africa still has a lot of catching up to do compared with developed countries such as the US, Canada and the UK, the underlying fundamentals of establishing management precincts are the same.

Managed precincts are formed to respond to a real or perceived need, and given the developmental path the country is on, it will not be long before we carve our own path and create an even wider range of collaborative management precinct solutions, which are bound to create more integrated and inclusive spaces.

Even though South Africa still has a lot of catching up to do compared with developed countries such as the US, Canada and the UK, the underlying fundamentals of establishing management precincts are the same

The concept of managed precincts has operated in South Africa since the mid-1990s.

Over the years, the benefits of this concept have produced great live, work and play areas.

The Maboneng Precinct in Johannesburg, Green Point Park in Cape Town and the KwaMnyandu Shopping Mall in Umlazi township in Durban are some examples of wellmanaged precincts that encourage the ethos of integrated spaces

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SAPOA President 2015/2016

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SAPOA President 2015/2016

Meet Mike Deighton With his sights set on leading the organisation, newly elected SAPOA President Mike Deighton picks up from where Beattie left off

By Candace King

M

anaging Director of Tongaat Hulett Mike Deighton was officially elected as the new SAPOA President for 2015/2016 at the Annual SAPOA International Convention and Property Exhibition in Durban.

Head of STANLIB Direct Property Investments and Outgoing President Amelia Beattie handed over the Presidency to Deighton, wishing him well in his term.

“This has been a very special Convention for me,” said Beattie. Addressing Deighton, she added, “I wish you well and I pass on the challenge to further the SAPOA Bursary Fund and add to the R40-million raised thus far”.

“I am deeply humbled and privileged to be able to be SAPOA’s President for 2015/2016,” said Deighton on stage at Convention. He thanked Beattie for all her efforts. “I would like to thank Amelia and all her hard work – I have huge shoes to fill”.

He also paid tribute to SAPOA’s Chief Executive Officer Neil Gopal, whom he dubbed “an inspirational leader”. “The advocacy we enjoy in the industry is thanks to Neil and SAPOA, and we are thankful for the organisation,” Deighton said.

Adding to Beattie’s “REAL in real estate” phrase, Deighton shared his thoughts on the REAL pillars.

“While relationships are critically important, research is just as crucial,” he said. “We need to collaborate on research with each other and with government in order to acquire better data that can help pull us together and help us move the country forward.”

In terms of the E, said Deighton, SAPOA must not lose sight of education. “Education is a central priority. We will be establishing a further initiative to see where we stand in terms of skills needs.

“With advocacy, we need to be advocates for success. Finally, leadership is key – leadership provides us with the ability to change our landscape and move things forward. We need to innovate and inspire.”

At Convention, Deighton announced the SAPOA Board of 2015/2016. “I am proud to be working alongside the SAPOA Board,” he said.

He paid homage to Growthpoint Properties’ Executive Director Estienne de Klerk, and Pareto Limited’s Chief Executive Officer Marius Muller, who have both resigned as SAPOA Board members.

“To Estienne and Marius: you have had a great impact on the organisation and I commend you for your ability to juggle your executive duties and your service to our industry,” he said.

He also spoke of initiating a Lifetime Achievement Award Committee, which will recognise the stalwarts of the property industry. The award will be the most prestigious accolade, honouring dedication and excellence in leadership. The industry can look forward to the first award being presented at the 50th Anniversary of SAPOA in 2016.

Deighton’s humble reflection on the industry is its people. “It’s really about the people,” he said. “People make the difference. Risk is about people and their behaviour. In this world, humanity seeks an anchor.”

Deighton’s humble reflection on the industry is its people.

“It’s really about the people.

People make the difference.

Risk is about people and their behaviour. In this world, humanity seeks an anchor”

About Mike Deighton In 1984, Deighton qualified with a BCom (Hons) as a civil engineer and started his career with the Durban Municipality.

In 1995, Deighton moved into property development, joining Gough Cooper Homes, which later became Group Five Properties.

He was involved with Group Five Properties until 1999. In 2000, he joined Tongaat Hulett Developments as Development Manager; in 2005 he was promoted to Director: Commercial and Industrial Developments.

In March 2008, Deighton was appointed Managing Director at Tongaat Hulett.

FROM LEFT Managing Director of Tongaat Hulett and SAPOA President Mike Deighton, SAPOA Chief Executive Officer Neil Gopal and Head of STANLIB Direct Property Investments and SAPOA Outgoing President Amelia Beattie

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SAPOA Board

Nomzamo Radebe President Elect

Amelia Beattie Immediate Past President

Neil Gopal SAPOA CEO

Dr Sedise Moseneke

David Green

Meet the new team Mike Deighton, President Managing Director of Tongaat Hulett Developments Mike Deighton began his career with the Durban Municipality, later working in the consulting engineering profession. In 1995 he moved into property development, joining Gough Cooper Homes, and later Group Five Properties. In 2000, he joined Tongaat Hulett Developments as a development manager, where he was later promoted to director of commercial and industrial developments. In 2008, he was appointed Managing Director, making him responsible for property development.

Nomzamo Radebe President Elect Managing Director at JHI Properties Awarded the “Five Star Woman” award by the WPN in 2009, Nomzamo Radebe is a nonexecutive director of the Independent Regulatory Board for Auditors and of the South African Council of Shopping Centres. She is also a nonexecutive director at Munich Reinsurance Company of Africa Limited, a nonexecutive member of the SAPOA audit and risk committee, a trustee of the SAPOA Pareto Bursary Trust and a member of the board of the Property Sector Charter Council.

SAPOA Committees ❖ SAPOA Innovative Excellence Awards Pieter Engelbrecht Growthpoint Properties

❖ SAPOA Convention & Property Exhibition David Green ProAfrica Property Services

❖ SAPOA Brokers John Jack Galetti Knight Frank

❖ REIT Lilian Barnard Metope

❖ SAPOA Education, Training & Development Nomvula Pooe Growthpoint Properties

❖ SAPOA Government Liaison Dr Sedise Moseneke Vukile Property Fund Limited

❖ SAPOA National Developers Forum John Martin iProp

❖ SAPOA Property & Facilities Management Nicole Baumgarten Finlay & Associates

❖ SAPOA Research Sanett Uys JHI Properties ❖ SAPOA Sustainability Werner van Antwerpen Growthpoint Properties ❖ SAPOA Legal Desirée Nafte Hyprop Investments Limited

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❖ SAPOA Property Charter Alignment Musa Ngcobo Omanyuswa Spearheading Investments

Amelia Beattie Immediate Past President Head: Direct Property Investments at STANLIB Amelia Beattie joined STANLIB in 2012 after more than 10 years at Old Mutual Property. She has extensive strategic and implementation experience in all property disciplines.

A recipient of the WPN and Nedbank “Five Star Woman” award, she’s passionate about education, and is a founder and trustee of the WPN’s Education Trust, which promotes the education and development of young women in property studies.

Dr Sedise Moseneke Executive Director at Vukile Property Fund Limited After completing his bachelor’s degree in dental surgery in 2000, Dr Sedise Moseneke served in the SANDF as a lieutenant in the Burundi peacekeeping mission.

Today he is the Executive Director at Vukile Property Fund Limited. Moseneke is also an elected board member of Nu-Way Housing Developments and Krisp Properties, and was a previous SAPOA president (2012/2013).

David Green Director at ProAfrica Property Services (Pty) Ltd David Green is a Director at ProAfrica Property Services, which assists international corporates with all aspects of real estate in South Africa and much of Africa. Projects have included the largest industrial sale and lease-back disposal in sub-Saharan Africa, and the relocation of head offices in South Africa, Kenya, Ghana, Nigeria, Mauritius and Angola, among others. Green has been a member of SAPOA since 1982 and is currently the chairman of the SAPOA Convention committee, a position he has held for several years.

James Aling Managing Director at HL Halls & Sons (Pty) Ltd James Aling is the Managing Director at Halls Properties (the property development business of the Halls Group, based in Nelspruit, Mpumalanga) and the current chairperson of the SAPOA regional council of the Mpumalanga region.

He aims to get the regional council well established and representative of the broader Mpumalanga region, and

❖ MOMFA Sean Liebenberg Excellerate Design and Projects

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SAPOA Board

James Aling

Jeff Zidel

Ipeleng Mkhari

Izak Petersen

Vuyani Hako

Peter Levett

Announced at the annual SAPOA International Convention and Property Exhibition, here are the newly appointed SAPOA Board and National Council members see that City Improvement Districts get onto the SAPOA agenda as a sustainable approach to developing and/or revitalising healthy neighbourhoods and precincts in partnership with property owners and local government.

group in 1998.

She’s been named one of CEO magazine’s most influential women in business, and was a finalist in the Entrepreneur Business Woman of the Year.

She is an Archbishop Tutu fellow.

Jeff Zidel Independent Nonexecutive Chairman of Fortress Income Fund Jeff Zidel has been a successful property developer and investor, and has been involved in all aspects of the property industry for more than 40 years.

He was three times Past President of the Roodepoort Chamber of Commerce. He was the winner of the 2010 Absa Jewish Achiever Award for Listed Companies. He was a co-founder of Resilient, is a Director of the South African Council of Shopping Centres and a non-executive Director of Nepi.

Izak Petersen CEO of Dipula Income Fund Izak Petersen originally co-founded the Mergence group of companies, which was co-principal in the formation and listing of Dipula, a decade ago. Prior to that he worked for PSG Investment Bank, first as Group Management Accountant and subsequently as a transactor in structured finance and products, and was at Deloitte South Africa before that, where he executed services locally and in the US. He continues to serve as an executive committee member of various industry bodies and holds directorships in a number of Mergence group companies.

Ipeleng Mkhari CEO of Motseng Investment Holdings Mkhari established the first black-woman-owned CCTV business and subsequently co-founded Motseng Investment Holdings, a diversified investment holdings

Peter Levett Managing Director at Old Mutual Property Peter Levett has been with Old Mutual for 16 years and with Old Mutual Property for 12 years in various roles, including head of corporate finance and chief operating officer of the

Old Mutual Investment Group.

He also spent five years at Goldman Sachs in London.

Vuyani Hako Executive Head at PIC Properties Vuyani Hako boasts 23 years of property industry experience; of the 23, he spent 12 years in executive management.

Hako has had exposure in local authorities and the private sector. He has worked as the Managing Director of Metropolitan Property Services, the Chief Executive Officer of Momentum Property Investments and the Executive Director at Eris Property Group. He holds a BSc in town and regional planning from Wits and an MBA from the Stellenbosch Business School.

He is also a board member of the V&A Waterfront.

Regional Councillors and their respective regions ❖ Western Cape Refqah Fataar Ho-Yee Smith Tabata Buchanan Boyes ❖ KwaZulu-Natal Edwin van Niekerk Max Prop ❖ Eastern Cape (Port Elizabeth) Mark Bakker Bruce McWilliams Industries ❖ Eastern Cape (Buffalo City, East London) Zoe Chagadama Department of Public Works ❖ Mpumalanga James Aling HL Halls & Sons (Pty) Ltd ❖ Gauteng Gareth Shepperson Shepperson Attorneys ❖ Limpopo Sumari de Ridder Mall of the North General Manager

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the annual SAPOA International Convention and Property Exhibition

Keeping it REAL Driving home the REAL in real estate, the annual SAPOA International Convention and Property Exhibition was a palpable experience

By Anne Schauffer Photographs by Xavier Saer and Mark Pettipher

H

osted at the Durban International Convention Centre from 19 to 21 May 2015, the Convention was a dynamic time of honest reflection, networking and interaction as delegates put the REAL back into real estate.

Putting the REAL into real estate was at the heart of 2015’s Convention, and if success is judged by lively levels of debate, controversial points of view and important conversations – often difficult and challenging at that – then this year’s Convention was a runaway success.

The formal introduction to the Convention described the aims as “addressing the latest trends, challenges and prospects in the sector, but also highlighting and showcasing the sheer hard work, raw talent and sterling achievements that encompass the South African real estate industry on a daily basis. It’s about property, people, purpose and, most importantly, passion.”

Bestselling author, political analyst, lecturer, columnist and pullno-punches public speaker Eusebius McKaiser took on the role of master of ceremonies, outlining two illuminating days with local and international top-level speakers, lively panel discussions, interactive sessions where delegates spoke their minds and even wildly talented entrepreneurs. McKaiser guaranteed the programme would not disappoint – and he was right.

The speakers and delegates focussed on the REAL issues, and a number of overriding concerns emerged repeatedly.

Those issues were considered not only to be at the heart of the country’s consistently poor economic growth but also at the core of South Africa’s social ills and increasing dissatisfaction over growing inequality.

FROM LEFT Neil Gopal, Mayor of eThekwini Cllr James Nxumalo and Amelia Beattie

Master of Ceremonies Eusebius McKaiser

Digging deep in Durban The Convention was not just a “take” scenario – about “what can you do for us?” – but equally insistently about what the commercial property sector could contribute. Probing questions were asked by delegates, speakers and panellists, with regards to what the industry can do to help solve a national problem.

Discussion around the often-troubled relationship between business and the local, provincial and national government structures was a common thread. The belief that there’s massive room for clarification of national ideologies was widespread, and seen as a primary reason for the distrust that exists between the two and for low investor confidence levels.

Skills shortage, the uncertain political landscape, poor communication, the pace of transformation and slow economic growth were repeatedly raised as major areas of concern, while education was considered of vital importance.

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FROM LEFT Amelia Beattie, Neil Gopal, Marna van der Walt and Lynette Finlay at the CEO Dinner

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Newtown Junction won three SAPOA Innovative Excellence Awards at Convention

FROM LEFT Eusebius McKaiser, Neil Gopal, Tessa Deighton and Mike Deighton

FROM LEFT Neil Gopal, Amelia Beattie and Joel Netshitenzhe at the CEO Dinner

FROM LEFT Maurice Mdlolo, Portia Tau-Sekati, Ben Kodisang

Primary sponsors STANLIB were wholly supported in their belief that education was the key to empowering and changing the community – numerous innovative education schemes were being instigated, supported and financed by SAPOA member organisations.

In his welcome, McKaiser described the speakers with whom delegates could look forward to engaging robustly, and outlined the sessions designed to deal with industry-specific opportunities.

On introducing the Mayor of eThekwini James Nxumalo, McKaiser promised engagement on some of the opportunities for further synergies between the clusters and the eThekwini municipality.“It’s difficult to fully describe the role of cities in the economic growth in the country, and the importance of the relationships that SAPOA has with the mayor of each city,” he said.

SAPOA’s Meet the Mayor initiative is one significant way in which the organisation facilitates improved lines of communication between the mayor’s office – as well as key officials – and the property industry, a platform where an understanding of the challenges and opportunities can be recognised and examined.

“The reality is that the coalface of delivery and development is at a city level. The kind of role that the mayor plays is arguably as important as someone at national level.”

With key functions devolving to municipal level, this will become increasingly significant.

Nxumalo spoke of the history and relationship between property and the previously disadvantaged people of South Africa, and by doing so, he touched on a topic central to the conference: transformation.

“Ownership of a property improves one’s status and gives a sense of self-esteem; it creates a better connection between the people and the land,” he said.

“Ownership is followed by personal pride and a subsequent concern for the environment in which you live – that’s good for the city and for everybody.

Close-knit communities are formed and, in that way, undesirable elements are kept out. This Convention is about the future of sustainable cities.”

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the annual SAPOA International Convention and Property Exhibition Transformation at the forefront Part of that transformation conversation involves the issue of inadequate skills by job applicants and incumbents, as well as the poor retention of those who had been up-skilled. This has, in essence, reached crisis proportions.

Every sector of the economy needs to take stock of numbers – the needs, skills deficits, and so on – so SAPOA’s online audit in February and March this year provided invaluable information as to the current situation in the real estate sector.

Nontokoza Nene of the African Training Academy and School of Auctioneers was tasked with providing members with this stocktaking account of the industry.

Part of the survey was directed at establishing the growth and decline of jobs within the commercial property industry over the past decade, determining the status quo in terms of employment equity, and determining how much the commercial property industry is investing in education (R6,8-million in training for the purpose of transformation).

In addition, the survey aimed to identify which jobs would be required in the future for purposes of skills training, and to determine what types of interventions the industry needs in order to deal with some of the crises identified.

Nene pointed out that a contributing factor to the skills crisis – and the primary cause of unoccupied vacancies – was the industry’s failure to promote the property profession as a career. She noted that the survey would be repeated at a later date. Everybody was urged to get involved.

At Convention, a major herald was made: SAPOA announced that it has raised R40-million for its Bursary Fund.

“Over the next four years, R40-million has been approved for 100 bursary students,” said Head of STANLIB Direct Property Investments and Outgoing SAPOA President Amelia Beattie. “We have surpassed our original 50 student goal.”

The money was raised through a contribution by the Services SETA (SSETA) after negotiations with SAPOA recently took place.

Alongside transformation comes the unbundling of the intricacies of the new BBBEE legislation. Portia Tau-Sekati, Chief Executive Officer of Property Sector Charter Council (PSCC) took delegates through “How the BBBEE Act through the property sector code intends to stimulate the South African Economy”. The panel discussion thereafter went to the heart of the BBBEE issue, and tough questions were asked. “If Portia wasn’t wielding a big stick, would transformation take place voluntarily?”

Marius Muller, Chief Executive Officer of Pareto Limited’s frank comment, “I don’t believe there is a commitment to transformation in the listed property sector”, provoked heartfelt discussion and inspired some soul-searching among delegates. Tough conversations but welcome ones – entirely in the zone of keeping it REAL.

Nontokozo Nene of the African Training Academy and School of Auctioneers

Head of STANLIB Direct Property Investments and SAPOA President Amelia Beattie (2014-2015)

ABOVE FROM LEFT Neil Gopal, Amelia Beattie, Nontokozo Nene and Board member of the SSETA Pamela Snyman RIGHT Paul Jones, KZN Regional Manager of Urban Econ Development Economists BELOW The panel discussion on the role of commercial property in eThekwini, facilitated by Eusebius McKaiser, included Paul Jones, Rory Wilkinson of Tongaat Hulett Developments and John Forbes, Director of John Forbes Associated

Getting into the meat and potatoes at Convention Paul Jones, KwaZulu-Natal Regional Manager of Urban Econ Development Economists, examined the role and impact of the commercial property sector in eThekwini. He presented the research undertaken for SAPOA, and focused on a broad range of economic development issues.

One of their focus areas is property development. “The report has two key components,” he said. “The first looks at the contribution that commercial private property has made to GDP, employment and the tax revenue base; the second at the development application process, using eThekwini as the case study.”

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Panel discussion on SA REIT with Mandy Ramsden of Questco, featuring Arrowhead Properties CEO Mark Kaplan, Leapfrog Bold Moves Managing Director Kura Chihota, Rockcastle Global Real Estate Co Ltd’s Craig Hallowes, Java Capital Director Andrew Brooking and PwC U.S. Real Estate Practise Leader, PwC Byron Carlock

ABOVE AND ABOVE RIGHT Delegates enjoy cocktails at the welcoming function sponsored by Tongaat Hulett and the City of eThekwini RIGHT Sponsored by Tongaat Hulett and the City of eThekwini, entertainment at the function included the Zulu Flashmob BELOW Cllr Loganathan Naidoo

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the annual SAPOA International Convention and Property Exhibition

Property Sector Charter Council CEO Portia Tau-Sekati

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Chief Executive Officer of Pareto Limited Marius Muller, Chief Executive Officer of Emira Property Fund James Templeton, The Property Foundation Director Gary Fisher, Chief Operating Officer of Delta Property Fund Bronwyn Corbett and Managing Director of TseboREAL Asset Management Mashilo Pitjeng during a panel discussion with MC Eusebius McKaiser

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Ben Kodisang, Managing Director of STANLIB Africa, gave an address as the principal sponsor

ABOVE Colin Coleman, Managing Director, Head of the South African office and Investment Banking Division for sub-Saharan Africa for Goldman Sachs BELOW Golf day at Mount Edgecombe Golf Course OPPOSITE: LEFT Golf Day prize-giving OPPOSITE: FAR LEFT Delegates toured the Moses Mabhida Stadium during a city tour OPPOSITE: BOTTOM Delegates experienced a behind-thescenes tour of Dube Tradeport

Mandy Ramsden, Director of Questco

“About R18,1-billion was the contribution that private property development made to the KZN economy, which is about 5,9% of the total KZN GDP – quite significant if you consider agriculture is about four percent,” said Jones. “Employment-wise, about 240 000 jobs were sustained in KZN in the commercial private property sector, which is about 8,86% of total employment in the province – a significant employment sector in the provincial economy.”

Around the development application process, “probably a more controversial part of our study”, facts and figures that presented eThekwini Municipality in a somewhat favourable light in terms of applications finalised, stirred up delegates and panellists.

As McKaiser said, “Why does there seem to be a dissonance between your story and the general ‘anecdotes’ about processes?” eThekwini regards resubmissions as new submissions, and this undoubtedly plays a role in their tally of applications finalised.

The panel discussion facilitated by McKaiser included Jones, Rory Wilkinson of Tongaat Hulett Development and John Forbes, Director of John Forbes Associated. It was enjoyably volatile but ultimately, it was acknowledged that developers, too, needed to shoulder part of the blame game by ensuring they were compliant before submission, and that the city is endeavouring to create a one-stop shop to facilitate and fast-track submissions – one where, as Wilkinson said, “We engage with one champion.”

This was a great example of the value of SAPOA’s Meet the Mayor initiative; as SAPOA Chief Executive Officer Neil Gopal was due to do just that shortly.

Questions surrounded the capacity for, and implementation of, the Spatial Planning Land Use Management Act (SPLUMA). There was a general consensus that large municipalities were in a far better position than small ones, which lacked the required internal resources.

“From a property development point of view, South Africa is probably going through quite a challenging period at this juncture,” Forbes said. “We’re heading for SPLUMA’s countrywide introduction starting in July this year… But in parallel with that, we have provincial legislation that, by and large, has not been retracted at this particular stage. There are question marks with regards to exactly what will happen in the interim. Is this all ruled out or not?”

Mandy Ramsden of Questco moderated a panel discussion on SA REITs, which began by confirming “another fabulous year for listed properties in South Africa”, and questioning the widening spread between REIT yields and long bonds, and whether listed property is starting to behave a little bit more like equity.

“Where is 2015’s growth going to be coming from in the face of weakening local economy and a challenging property fundamental,” Ramsden asked the panel. “We have seen, certainly in the reserve stable, there’s a very large portion of capital investors in offshore.”

The response? “Consolidation is one way to drive revenue growth – but also on a relative basis, countries outside South Africa offer better returns. If you have a look at Nigeria – Africa – and Europe, at hard currency-based growth coming out of certain companies, you can get anywhere between five and eight percent. We’re going to battle to make this with our very, very low growth environment in South Africa.”

An interesting response to the question from the floor about why the market attributes such a premium to REITs as opposed to directly held property was that it all had to do with management. “People make all the difference. The kind of alchemy that drives growth when it’s repeated time after time, by adjustments in response to whatever variables drive the terms, you’ve got to say, people – assets – have a different value depending on who they are.”

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the annual SAPOA International Convention and Property Exhibition “We’re living in a weird world,” says Dawie Roodt, Chief Economist and Director for the Efficient Group. “People think it’s business as usual, but it’s not. We’ve never seen interest rates this low before – what is going on?”

In his opinion, a critical issue is government’s borrowing of longterm money to fund short-term expenditure (in terms of social grants).

“It’s unsustainable,” he says. “There are more people receiving grants than people with jobs. The civil service is like a wet blanket smothering the spirit of entrepreneurship. To be two ratings away from ‘junk’ status is quite painful – and it’s a train we need to stop right now.” But where do you put your money? In Africa.

Africa: a double edged sword Conversations about investing in sub-Saharan Africa revolved mostly around the distinction between growing economies and developing economies. With an absence of development, you can’t sustain growth.

Kenya is developing; Angola is growing.

Colin Goldman, Managing Director, Head of the South African office and Investment Banking Division for sub-Saharan Africa for Goldman Sachs International, presented telling elements of a study by Goldman Sachs published in 2013 (updated in 2014, and recently updated again

by Goldman) on “The Two Decades of Freedom”.

It’s a very comprehensive study about the good, the bad and the ugly of South Africa, yesterday, today and tomorrow. “The wealthy have become wealthier, and they’ve become wealthier faster than the poor have become less poor. As a consequence, the inequality ratio between the wealthy and the poor has grown, and that’s one of our problems. Of the challenges, the biggest is unemployment – 15-million are employed, 7,3-million are not. The best way of driving wealth creation, of driving economic growth, is putting South Africans to work.”

FROM LEFT Managing Director of Tongaat Hulett and SAPOA Newly Elected President Mike Deighton (2015-2016), SAPOA Chief Executive Officer Neil Gopal and Head of STANLIB Direct Property Investments and SAPOA Outgoing President Amelia Beattie (2014-2015)

FROM LEFT David Green, Neil Gopal, Amelia Beattie, Mike Deighton and Estienne de Klerk

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Frederick Marks, CFO of Academy of Neuroscience for Architecture, San Diego

Abrie Botma, Director at EPCM Global

U.S. Real Estate Practise Leader, PwC Byron Carlock

Scott Picken, CEO of Wealth Migrate

Goldman says South Africa scores five out of 10 against best emerging markets. South Korea scores eight, and the difference is life expectancy, personal computers and internet usage, internet service, and R&D. How do we head towards that five-percent economic growth? In his view, for starters, we have to go back to absolute basics. Fix labour, spend better, do what we would do normally – but just do it all right.”

He proposes tax incentives to get young people into work. “Think about putting half-a-million youth into the army. Let them earn a stipend, learn a skill, fix communities,” he says. “Then, government is starting to talk about a different model of running state-owned enterprises – a healthy development and one we should encourage.

Government is talking about the Chinese state-owned model – they take a portion of a state-owned enterprise and list it, but still keep the controlling stake of the institution. The government is starting to think about modernisation of the state-owned enterprise model.” Food for thought, particularly in light – or lack thereof – of Eskom.

Eskom is something Abrie Botma, Director of EPCM Global, knows well, as he tackled “Energy Crises: Managed Opportunity”. Essentially, by the time the two new power stations come online, they will not provide additional energy to the grid – they will top up the energy to the current level. “Load shedding – not a greater threat to blackout but a proactive method to stabilise the grid – has a definite impact on the economy,” he said. “Estimates are R20-billion loss per month for stage one; R40billion per month for stage two; R80-billion per month for stage three.

Eskom’s looking at a three-year period – our view is it’ll be longer.”

He discussed renewable energy sources, sustainability, PV, taking back our power (via DIY solutions and selling power to neighbours), and the absolute inevitability of substantially rising costs from Eskom, less predictability, less power – and the extreme unlikelihood of the ultimate bad news: a blackout, which he says, would be worse than the worst end-of-the-world movie we’ve seen.

ABOVE Eusebius McKaiser interviews Ashish Thakkar, founder of the Mara Group and the Mara Foundation

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the annual SAPOA International Convention and Property Exhibition

FROM LEFT Amelia Beattie with emerging leader and businesswoman Kate Moodley

FROM LEFT Nomzamo Radebe, Portia Tau-Sekati and Amelia Beattie

ABOVE Eusebius McKaiser with Entertainers BELOW Delegate enjoying the party

ABOVE Delegates enjoying the party BELOW Delegates with Entertainers

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Convention report back To raucous laughter, he said, “Eskom is the only company I know that actively campaigns for its consumers to buy less of its product.”

Freshly diverse

Wrapping up the Convention at the dinner party, sponsored by Moruleng City and Remote Metering Solutions

ABOVE FROM LEFT SAPOA Chief Executive Officer Neil Gopal with Bernita Kalyan from The Creative Axis Architects BELOW Indian Classical Dancers

One of the major contributing factors to SAPOA’s 2015 Convention was the wonderful diversity of topics – all about property but from innumerable fresh perspectives.

Frederick Marks, DFO of the Academy of Neuroscience for Architecture in San Diego, opened minds to the importance of design to the optimum neurological needs of people who work in buildings.

How does natural light affect us? How much do we need? Scott Picken, Chief Executive Officer of Wealth Migrate, shared his views on the 21st century topic of “Real Estate Crowdfunding”, which is tipped to be in the top 10 disruptive trends globally, worth US$250billion by 2020. As he said, “Technology has disrupted many industries already – why would real estate be any different?”

Byron Carlock, US Real Estate Practice Leader at PwC, shared his thoughts on “Safe Choices in Volatile Times: Global Real Estate”. “Real estate is being pursued as the safe choice, equities in the major markets feel a bit frothy, bonds – as interest rates begin to rise in the Western market – are causing a cyclical rotation,” he said. “Asset managers are increasing their allocations to real estate, the US$64trillion asset management business is taking its allocation of alternatives up to as high as 15% – and real estate is getting a big chunk of that. So we have a huge responsibility as an industry to think through why it’s the safe haven, what the opportunities are for investors, where the opportunities are, and how we as leaders in the industry can offer investible products to a yield-hungry world.”

The SAPOA Women’s Annual Breakfast was an inspiring event, as Kate Moodley, author of the book I Inc: Be The CEO Of Your Own Brand, shared her insights on being always extraordinary, never average. A lawyer by training, Moodley moved into insurance and over time, learnt that it’s not about the product but about the person.

You are the brand, and you’re in control. “Branding is really about what people say about you when you’re not in the room,” she said.

Even before Ashish J Thakkar, founder of the Mara Group and Mara Foundation, entered the room, his brand preceded him.

Wealth creation was a recurring theme at the Convention, so a faceto-face with Africa’s youngest billionaire was an apt finale.

Described as “Africa’s most moneyed school drop-out”, Thakkar is a great exponent of informal education – entrepreneurship and mentorship. As a youngster, he lived through the worst of times in Rwanda and Uganda, and even though home is now largely Dubai, he considers himself a real African.

Thakkar is not one for excuses or justifications for why something isn’t doable. His life story is contrary to that, and he believes his success is attributable to his spiritual leader and to a philosophy of genuinely doing good. “It’s not just about money, it’s about authenticity, people, mentoring. As Africans, we need to lead, not play catch-up”. He’s developed a free app, Mara Mentor, which provides support for young entrepreneurs and provides global advice.

Anthony Robbins said, “The quality of your life is in direct proportion to the quality of your relationships”. As Beattie handed over the reins to incoming President Michael Deighton, Managing Director of Tongaat Hulett, she stressed that the concept remains a very important part of how we do business.

At this Convention, relationships were forged, strengthened and examined. There’s little doubt that delegates left with many questions – and answers – about the industry and the role they need to play as contributors to the South African economy and society.

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Concrete Xcellence excellence awards

L WINN ERAL ER OV

D-USE DEVELO : MIXE PME NER NT WIN

LL TRANSFORMATIO ERA N OV

Ticking all the right boxes, the 2015 winners of SAPOA’s Innovative Excellence in Property Development Awards prove that South Africa’s property industry is thriving in the most innovative way possible

T

he South African built environment is a very loud place at the moment as iconic,

aesthetically beautiful, sustainable and, above all, innovative buildings are screaming for attention – and they are being heard.

Once again, the “Oscars of the property industry” – the Innovative Xcellence Awards – have recognised the country’s top buildings in terms of innovation, aesthetic appeal, sustainability, creativity and game-changing architectural concepts.

In recognition of the importance of property development to the South African economy and the community which it serves, SAPOA wishes to honour those property innovators, developers,

Retail Development Winner

RETAIL DEVELOP ME ER: NT NN WI

owners and built environment professionals

Mall of Rosebank

who, through the quality of their products,

Planning for this project began as far back as 2008, with construction on site starting in September 2012

have contributed significantly to the

and finishing in October 2014. The brief was to reposition the mall within Rosebank in order to achieve

enhancement of the industry.

critical mass and sustain itself against all the nearby competing retail. In addition to elevating the retail

The winners of this year’s

experience, the original design concept included providing additional and easily accessible parking,

SAPOA Innovative Excellence in Property

introducing as much natural light as possible, creating greater height and volume in the mall, improving

Development Awards are prime examples

customer circulation among the retail by inserting a race track-type mall layout, and increasing and

of how South Africa’s property industry

improving vertical links between levels.

is on par with the rest of the world in terms of top design, modern architecture, forward-thinking sustainability and contemporary sexiness. Over the next few pages, we invite you relish in the country’s concrete cream of the crop.

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Developer Hyprop Investments Limited Architects MDS Architecture Quantity surveyors Norval Wentzel Steinberg Civil and structural engineers Dekker Gelderblom Consulting Engineers Mechanical engineers GPCE, WSP Consulting Engineers Other consultants MDSA Tenant Coordinators Principal contractors WBHO Construction (Pty) Ltd Electrical engineers Rawlins Wales & Partners Consulting Electrical Engineers (Pty) Ltd Fire consultants Specialised Fire Technology (Pty) Ltd

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Mixed-use Development Winner, Overall Transformation Award Winner and Overall Winner Newtown Junction

Newtown Junction is the first significant economic injection in the Jo’burg CBD in 40 years, integrating the heritage and artistic attraction of Newtown between Mary Fitzgerald Square and Carr Street. Backed

by Johannesburg Property Company and the SA Heritage Resources Agency, support was gained from leading South African retailers.

Nedbank consolidated its Johannesburg offices to Newtown at the Nedbank Newtown Campus. Six years in the making, Newtown Junction serves a vital sector of our vibrant society in the cultural node within “old” Jo’burg.

Commercial Office Development Winner

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90 Grayston Drive

Redefine Properties’ newest development, 90 Grayston, is intended to set a new standard for premium-

Developer Atterbury, Attacq Architects DHK, LPA & MRA Architects Project managers Metrum Project Management Quantity surveyors Norval Wentzel Steinberg, BTKM Civil engineers L & S Consulting Engineers Structural engineers Aurecon Mechanical engineers Graeme Page Consulting Engineers, WSP Consulting Principal contractors WBHO & Fikile Construction (Pty) Ltd Electrical engineers Rawlins Wales & Partners Consulting Electrical Engineers (Pty) Ltd Fire consultants Specialised Fire Technology (Pty) Ltd Green/Sustainable consultants WSP Green

grade office buildings. With its statement-making design, high-end finishes and a 4-Star Green Star SA rating, it is among Sandton’s most desirable office buildings. The striking 21-storey building includes 19 500m² of exceptional business space in nine office levels above an elevated atrium. It also offers 11 levels of generous parking, a central security facility and a destination control system.

Developer Redefine Properties Architects GHL & Associates Architects Project managers Betts Townsend Construction Project Quantity surveyors MLC Quantity Surveyors Civil and structural engineers Sutherland Engineers Mechanical engineers Sutherland Engineers Principal contractors WBHO Electrical engineers CKR Consulting Engineers Fire consultants Specialised Fire Technology

The judges Pieter Engelbrecht: Growthpoint Properties Andries Schoeman: AECOM Anthony Orelowitz: The Paragon Group Beata Kaleta: DSA Architects Christian Roberg: Abland Craig Sutherland: Sutherland Multidisciplinary Engineers Corné de Leeuw: DelQS Quantity Surveyors and Property Valuers Hashim Bham: BTKM Quantity Surveyors Itumeleng Mothibeli: Vukile Property Fund John Truter: WSP Group Africa Structures John Williamson: MDS Architecture Ken Reynolds: Nedbank Limited Queen Mjwara: STANLIB Direct Property Investment Rudolf Nieman: JHI Project Management and Sterikleen Sam Silwamba: Old Mutual South Africa Sandi Mbutuma: Pentad Quantity Surveyors (Pty) Ltd Wessel van Dyk: Boogertman + Partners Architects Zinon Marinakos: DSA Architects International

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International Development Award Winner West Hills Mall

The 27 458m² West Hills Mall is situated along the Cape Coast Highway, 25km west of Accra, Ghana.

West Hills Mall presents retail of an international standard to Accra. Seamless shopfronts serve Ghanaian, South African and European merchandise along a mall with high-quality finishes. Continuous clerestory windows fill the mall volumes with ample daylight to coax the predominantly external retail culture indoors. Restaurants overlooking a square, cinemas and line shops are anchored by Shoprite and Palace (a local retailer comparable to Game). African adinkra symbolism is represented abstractedly via “duafe” comb walls, piercing the entrances, and a stitching of dark bands of louvres ties the façade together.

Developer Delico Property Investments Architects ARC Architects (Pretoria) (Pty) Ltd Project managers GHC Africa Quantity surveyors Del Quantity Surveyors Civil engineers Aurecon Group Structural engineers BSM Baker Mechanical engineers Aurecon Group Principal contractors WBHO Construction North Electrical engineers Aurecon Fire consultants Specialised Fire Technology (Pty) Ltd SOUTH AFRICAN PROPERTY REVIEW

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excellence awards Refurbishment Winner

BMW (South Africa) Head Office Boogertman + Partners Architects won the competition to refurbish the iconic Hans

: REFURBISHME NER NT WIN

Hallen building by controversially questioning the extensive brief compiled by BMW. Loosening the parameters fencing the briefing requirements enabled the implementation of creative solutions.

The final product is a carefully engineered co-existence between an international corporate standard, fulfilling the needs of BMW (South Africa), creating a productive and pleasant working environment, the creative pursuit of reinventing a respected architectural element, and extending the building’s lifespan by employing sustainable and green building principles.

Architects Boogertman + Partners Architects Project managers Metrum Project Management Quantity surveyors BWR Quantity Surveyors Civil and structural engineers Mott MacDonald PDNA Mechanical engineers Spoormaker and Partners Other consultants Izazi Consulting Engineering, African Environmental Design Principal contractors Barrow Construction Electrical engineers Quad Africa Fire consultants Chimera Fire Protection Green/Sustainable consultants Solid Green

Other Development Winner Steyn City Clubhouse

Where once there was nothing, Steyn City Golf R DEVELO OTHE PME ER: NT NN WI

Clubhouse exploits the landscape itself to create shelter and space, blurring the boundaries between natural and built, achieving a constant connection with nature. Utilising local materials and labour, the building integrates with its surroundings and the indigenous landscape, creating architecture that is responsive, sensitive, functional and sustainable, while making use of the latest available technology.

The grassland sweeps over the architecture and the building components fragment to enhance its connection with nature by juxtaposing the buildings’ organic shapes with the Highveld landscape. This achieves a harmonious symbiosis between nature and the architecture which nestles within it.

Developer Steyn City Properties Architects Boogertman + Partners Architects Project managers Metrum Project Management Quantity surveyors Brian Heineberg & Associates Civil and Structural engineers Pure Consulting Mechanical engineers Spoormaker and Partners Other consultants dsgn - interior design/spaceplanning, G. Johardien & Associates Consulting Engineers, Gavin Pereira Consultants, Insite Landscape Architects Principal contractors Gothic Construction (Pty) Ltd Electrical engineers CKR Consulting Engineers Fire consultants Specialised Fire Technology (Pty) Ltd

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Residential Development Winner Sandton Skye TIAL DEV SIDEN ELO : RE PM ER EN NN T WI

Developer CRI Eagle International Architects AMA Architects Project managers CPDBrydens Quantity surveyors Norval Wentzel Steinberg Civil engineers Hatch Goba Structural engineers Calibre Consulting Mechanical engineers AConsult (Pty) Ltd Other consultants Ethnic Technologies, GK Pereira Consulting Principal contractors Stefanutti Stocks Electrical engineers Hatch Goba Fire consultants Dynamic Fire Consultants

The first Sandton Skye tower rises high above the hustle and bustle of Sandton, with the top loft and penthouse apartments on the 17th floor prominently placed on the magnificent Highveld skyline. This contemporary “urban resort”-styled apartment hotel is an iconic assemblage of three towers that sit on a dynamic public facilities podium inhabited by restaurants, a pub, pool decks, a gym, a wellness spa, a business centre, a hotel concierge and reception areas.

Tower 1 has been completed; construction on Tower 2 will commence this year. Each tower block was designed from the inside out, then further refined in each of the 17 storeys through a sculptural exterior skin that is layered in coloured glass, stone cladding, aluminium and plaster render.

Labelled as the benchmark in property investment, Sandton Skye is a lifestyle development managed like a luxury hotel development. The building features a trendy restaurant, cocktail bar and deli; spa and fitness centre with indoor heated pool; executive conference facilities and business centre; kids zone and high security.

Industrial Development Winner Westcon Offices and Warehouse

One of the many exciting new developments in the Waterfall Business Precinct (WBP), which straddles the N1 highway between Buccleuch

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and Allandale off-ramps in Midrand, is the office and warehouse leased by Westcon technology distributors from Atterbury Property Holdings.

SANRAL’s effective upgrade of the Allandale interchange has dramatically improved accessibility, creating a huge competitive edge for the WPB and resulting in exciting opportunities for the construction of highly sought-after rentable areas, of which the new Westcon development is just one. The design concept behind the Westcon development was the creation of a structure that would not only reflect Westcon’s prestigious corporate image but also take full advantage of this prime location.

The resulting building is an eye-catching development that combines and centralises the company’s three previous geographically separate office spaces into a 3 800m² L-shaped office block, which disguises the 4 000m² warehouse component on its eastern side.

The design of the office space effectively allows for possible future expansion, and an agreement with the developers has allowed for the Westcon site to expand by a further 500m², if and when required.

Developer Atterbury Property Holdings Architects ESA Project managers ESA Quantity surveyors Pentad Quantity Surveyors (Pty) Ltd Civil and Structural engineers DG Consulting Engineers (Pty) Ltd Mechanical engineers CKR Consulting Engineers (Pty) Ltd Principal contractors Lyncon Construction Electrical engineers CKR Consulting Engineers (Pty) Ltd Fire consultants SFT

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excellence awards Overall Heritage Award Winner Drostdy Hotel HERITAGE AW ARD RALL OVE

The Drostdy Hotel is situated in the historic centre of the town of Graaff-Reinet, in the Eastern Cape’s Karoo. The Drostdy building and its courtyard garden are of great historic and cultural significance, and played a central role in the civic life of the town.

The Drostdy is the second-oldest in the country, designed by Louis Michel Thibault in the Cape Dutch Style in 1804/1805.

The hotel was declared a National Monument in 1987, and several parts of its precinct are protected Provincial Heritage Sites.

The restoration project sought to integrate the historic fabric with new interventions throughout the property, creating a seamless experience of the rich heritage of the site while bringing the hotel provision up to the five-star luxury country hotel standard envisioned by the owners. It included the master plan of the entire site, sensitive restoration of significant historic buildings, and architectural design of discreet new insertions.

The completely reinvigorated Drostdy Hotel property now accommodates 48 new

Developer De Oude Graaff Reinetse Drostdy (Pty) Ltd Architects dhk Architects Quantity surveyors De Leeuw Quantity Surveyors Structural engineers Aurecon Mechanical engineers Aurecon Other consultants Blok Designs, Moffat Whitlock Architects, Moorhouse Consulting, Setzkorn & Van der Walt Professional Land Surveyors, Stephen Falcke Interior Design, Urban Concepts Principal contractors GVK-Siya Zama Electrical engineers Aurecon Fire consultants Aurecon

luxury hotel rooms with three swimming pools, a fine-dining restaurant, bar and lounges, art gallery, wine shop, wine cellar, spa, and associated hotel amenities set within landscaped grounds.

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Corporate Office Development Award Winner, Overall Green Award The Department of Environmental Affairs

The building comprises 27 422m² of office and circulation space, houses 1 305 people and provides parking for approximately 600 vehicles. The overall building concept is reflected in three distinct elements: through the masculine, utilitarian machine-like office wings, the feminine, organic central reception building, and finally the “bridge structure” that links all of the elements together.

The interior design response reflects a modern African feel, which is based on the sensitivity of sustainable and environmentally friendly spaces without resorting to the usual highly literal pastiche.

The primeval nautilus shell motif, based on naturally occurring fractal geometry, speaks of birth and origin, growth and progression. This is also reflected in the landscape design, which includes a four-

Developer Imvelo Concession Company Architects Boogertman + Partners Architects Project managers Aveng Grinaker LTA (Inland) Quantity surveyors Pentad Civil and structural engineers PD Naidoo & Associates Mechanical engineers PD Naidoo & Associates Other consultants Beads Space Planning, Boogertman + Partners Interiors, Uys and White Principal contractors Aveng Grinaker LTA, Keren Kula JV Electrical engineers PD Naidoo & Associates Fire consultants PD Naidoo & Associates Green/Sustainable consultants PD Naidoo & Associates

storey-high feature vertical garden.

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Innovative Development – Award Winner

The Watershed, V&A Waterfront

- INNOVATIVE AWA NER RD WIN

The Watershed at the V&A Waterfront is a space where craft and design come to life. As a result of the transformation of the Blue Shed Craft Market, Watershed combines the former tenants of the Red and Blue Sheds and can be found opposite the Two Oceans Aquarium, overlooking the oldest dry dock in the southern hemisphere, the Robinson Dry Dock.

Developer V&A Waterfront Architects Wolff Architects Quantity surveyors Pentad Structural engineers LH Consulting Mechanical engineers Basil Nair & Associates Principal contractors WBHO Electrical engineers Gibb Fire consultants Solution Station

Other Development – Merit Award Winner Hatfield Studios

This project’s goals were to provide unique, unrivalled accommodation and lifestyle with the

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best location, providing student accommodation on the doorstep of the University of Pretoria.

There are two basement parking levels forming the footprint of the development. The roof level of the podium development houses most of the common facilities such as laundry room, games room and study room, and spills out onto a green landscaped external area complete with features, benches and paved walkways.

The high-rise residential blocks rise from and are on top of this podium level. There are rooms for disabled student on the podium level (ground level). The standard studio units start from the first-floor level.

Developer Feenstra Group (Pty) Ltd Architects Boogertman + Partners Architects Project managers Feenstra Group (Pty) Ltd Quantity surveyors DelQS Civil and structural engineers DG Consulting Engineers Mechanical engineers IMEC Other consultants Cairnmead, Leap, J Paul van Wyk, Buckley & Strydom Principal contractors Basil Read Electrical engineers SVR Engineers Fire consultants WSP Group Africa

Commercial Office Development – Merit Award Winner Alice Lane Phase 2

This office building located on the corner of Alice Lane and Fifth Street in Sandton’s IAL OFFICE DEV ELOP MMERC - CO MEN RIT T ME

commercial centre is designed around an office anchor tenant but will include showrooms, retail elements and concept stores on the piazza level and the interstitial spaces generated with phases one and three.

This is the second of three buildings that will complete the enclosure for a much-needed green lung in Sandton’s retail precinct. Phase two tenants are Sanlam and Santam, who occupy the ground to sixth floor.

The ground floor extends to the exterior as a floating platform, with spill-out spaces

Developer Standard Bank, Abland Architects Paragon Architects Project managers Abland Quantity surveyors Quanticost Structural engineers L & S Consulting Mechanical engineers C3 Consulting Engineers Other consultants The Ochre Office Principal contractors WBHO Electrical engineers Taemane Consulting Fire consultants International Fire Engineering SA Green/Sustainable consultants Solid Green

for the canteen and auditorium. This interacts visually with the street. The relationship with the street is further explored with the idea of surfaces that peel away to provide vehicular and pedestrian access.

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2015/06/03 2:23 PM

SAPOA Journalism Awards and exhibitor stand winners

Winning wordsmiths and exhibitor excellence SAPOA commends the South African property industry’s respected media fraternity as well as the best exhibitor stands at this year’s Convention

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he winners of the annual SAPOA Property Journalism Awards, sponsored by JHI Properties, were announced at the Annual SAPOA International Convention and Property Exhibition in Durban as the commercial property sector honoured and recognised the dedicated and professional members of the media who have contributed immensely to the industry.

The categories, winners and runners-up Property News Journalist Winner: Alistair Anderson Property writer at Business Day Live Alistair Anderson has degrees in economic science, management accounting and journalism from the University of the Witwatersrand. He has been commended for his superb writing skills, his ability to cover a wide range of topics and his fresh approach to breaking property news.

Runner up: Roy Cokayne Senior financial reporter at Business Report Roy Cokayne was chosen as the runner-up in this category because of his experience, knowledge and writing on the property sector.

Property Feature Journalist Winner: Karabo Ray Mahlaka With an interest in markets, property and public policy, Moneyweb journalist Karabo Ray Mahlaka is a noteworthy up-and-coming writer who boasts an exceptional writing style.

Runner up: Alistair Anderson Having won this year’s Property News Journalist category, Alistair Anderson was also selected as the runner-up in this category.

Best Property Publication

FROM TOP Nomzamo Radebe, Neil Gopal, Alistair Anderson and Amelia Beattie; Nomzamo Radebe, Neil Gopal, Karabo Ray Mahlaka and Amelia Beattie; Nomzamo Radebe, Neil Gopal, Amelia Beattie and Neale Petersen from Real Estate Investor; Nomzamo Radebe, Ortneil Kutama from SA Commercial Property News, Neil Gopal and Amelia Beattie

The judging panel Nomzamo Radebe, Managing Director at JHI Properties; Rob Rose, Editor of Business Times; Vernon Matzopoulos, Head of Business Day TV; Mark Pettipher, Managing Director at Design & Photography Services; Brian Azizollahoff, Managing Director at Capstone Property Group

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Winner: Real Estate Investor Keeping you up to date with the latest investment techniques and strategies, Real Estate Investor is this year’s winner for best property publication. Real Estate Investor is a monthly guide that offers a unique insight into the world of investing. Editorial is split into the four key areas of property investment: residential, commercial, offshore and lifestyle.

Runner up: Architect and Builder With its aesthetic appeal and on-point features for architects, Architect and Builder was selected as the runner-up. The publication has been showcasing South Africa’s top architectural projects for 65 years and is widely read by key players in the architectural, building, engineering and allied industries.

Property Online News Winner: SA Commercial Property News Once again SA Commercial Property News impressed judges with its comprehensive site, which they felt presented a wide variety of current and topical property information.

Its neat, visually appealing, easy-to-navigate structure earned it top place in the category.

Runner up: Property Wheel Having received a special mention at last year’s Convention, Property Wheel was the runnerup in this category. Property Wheel’s website, social media presence and newsletters allow users – including brokers, investment professionals, estate agents, analysts, and other industry professionals and leaders – to keep up with the latest happenings in real estate.

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SAPOA Journalism Awards and exhibitor stand winners Winning exhibitor stands Innovative stand: Growthpoint Properties Green stand: Growthpoint Properties Large stand: FNB Medium stand: STANLIB Small stand: Zendai

CLOCKWISE FROM TOP Growthpoint Properties’ stand came first in the innovative and green categories; FNB was the large stand winner; STANLIB’s winning medium stand; Zendai had the winning small stand

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interview

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interview

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eye on Africa

Egypt With a past filled with ancient wonder and political turmoil, Egypt’s goal for the future is to work with its problems and create a strong, highly attractive African market

By Candace King

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Egypt at a glance ▼ Population 83 386 739 (2014) ▼ Major cities Cairo (9,1-million), Alexandria (4,1-million), Giza (2,7-million) ▼ Currency Egyptian pound (EGP) ▼ Total area 1 001 450km² ▼ GDP growth 6,8% (2014/2015) ▼ Key industries Textiles, food processing, tourism, chemicals, pharmaceuticals

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amed for its rich and intriguing history, Egypt is a country that the world knows quite well when it comes to awe-inspiring pyramids and larger-than-life pharaohs.

Situated in northern Africa, bordering the Mediterranean Sea between Libya and the Gaza Strip, and the Red Sea north of Sudan, and including the Asian Sinai Peninsula, Egypt is the biggest Arab country and has played a pivotal role in Middle Eastern politics in recent times. It was one of the first Middle Eastern countries to open up to the West following Napoleon’s invasion.

With its regularity and richness, the annual Nile River floods contributed heavily

towards the establishment of one of the world’s most iconic civilisations. The grandeur of ancient Egypt was also the result of the fact that deserts situated to the east and west provided the early civilisation with protection from its enemies.

Egypt’s political and ruling landscape has been one that has changed often. In around 3200BC, a unified kingdom arose, which was followed by a series of dynasties that ruled Egypt for the next three millennia until the last native dynasty fell to the Persians in 341BC. The Persians were replaced by several powers of the time, including the Greeks, the Romans and the Byzantines.

In the 7th century, the Arabs introduced Islam and the Arabic language to the region – they ruled Egypt for the next six centuries.

After a few takeovers and conquests, Britain seized control of Egypt’s government in 1882.

Partially independent from the UK by 1922, Egypt acquired full sovereignty in 1952.

In recent times, Egypt’s political arena has been quite rocky. Inspired by the Tunisian revolution in 2010, Egyptian opposition groups led demonstrations and

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ABOVE An outdoor market

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labour strikes countrywide, which resulted in the ousting of former President Hosni Mubarak in 2011. After further unrest, in midJanuary 2014 voters finally approved a new constitution by referendum. As of June 2014, Egypt’s sixth President Abdel Fattah el-Sisi boasts great plans for the country.

Egypt officials are stating that “postrevolutionary Egypt is open for business”, as the Egyptian government aims to attract new and significant foreign investment. Along with this, the government’s goal is to address the country’s problems.

One of Egypt’s biggest matters is its rapidly rising population, which is the largest in the Arab world. Coupled with this, limited arable land and dependence on the Nile continues to overtax resources and stress society. The government has battled to meet the demands of Egypt’s population via economic reform and large investment in communications and physical infrastructure.

Regarded as the intellectual and cultural leader in the region, Egypt is home to a plethora of busy cities that meander along the banks of the Nile and on the river’s delta.

Most of the country’s agricultural activity is concentrated along the Nile. Agriculture plays a focal role in Egypt’s economy – cotton, rice, corn, wheat, beans, fruits, vegetables, cattle, sheep and goats are prime agricultural exports.

The economy also depends heavily on tourism and cash remittances from Egyptians working abroad, mainly in Saudi Arabia and the Gulf countries. Other key sectors include textiles, food processing, tourism, chemicals, pharmaceuticals, hydrocarbons, construction, cement, metals and light manufactures.

The Egyptian economy is the second largest in the Arab world after Saudi Arabia.

However, its economy has been up and down over the years: between 2004 and 2008, Egypt’s capital Cairo tried to pursue economic reforms in order to attract foreign investment and to stimulate growth, yet unrest persisted.

Growth appears to be fragile, and the economic outlook during 2014 remained weak.

Egypt continues to implement expansionary macroeconomic policies with aid from the Gulf countries.

Poor living conditions and limited job opportunities have led to public discontent.

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eye on Africa GDP per capita, current prices

Percent of GDP

4k

2k

0k

2007

2008

2009

2010

2011

2012

2013

2014

2015

Source: Opendataforafrica.org

Gross domestic product (in US$-billion, current prices) 400

US dollars (billion)

300

200

100

0 2007

2010

2012

2014

Source: Opendataforafrica.org

According to the African Economic Outlook Egypt 2014 report, “Against the backdrop of mounting political unrest and insecurity, socioeconomic conditions continue to deteriorate: the unemployment rate is rising, especially among youth (39% of the 20 to 24 age group are unemployed), and rural-urban income disparities remain wide. The approval of a new Constitution in January 2014 was a key milestone of the transition road map issued in July 2013 after the ousting of President Morsi. However, an uncertain political outlook in 2014 will continue to undermine economic recovery prospects.”

The Egyptian property industry On the back of Egypt’s escalating population, there’s a demand for property development in the country, especially in terms of retail and affordable housing. Developers have taken notice of the rising trend and are engaging with the demand.

Egypt’s construction sector is mandated to deal with the issues regarding the domestic residential market. In light of this, projects are focusing on providing affordable housing

to the country’s increasing demographics. As the housing supply improves, opportunities for foreign investors will heighten as they seek income-generating assets in Egypt.

Development is soaring in the region: Egypt has signed preliminary deals with four Arab real estate developers for projects totalling €12-billion. Four memorandums of understanding with Egyptian developers Mountain View and Palm Hills, as well as Saudi Arabia’s Sisban Holdings and a consortium of Arab firms, have been signed for both residential and commercial projects in Egypt. in thousands The proposed developments will be located 160 Population 000 - 1 150 000 1 150 000 -700-2 200 4 500 000 in New Cairo and 6th October City.

9 200 000 Egypt’s government aims to improve 4 500 000 -2 200-2 380 the country’s investment climate and settle 2 380-4 800 looming business disputes in order to boost its development vision. The country recently unveiled plans to build a new capital estimated to cost US$45-billion, presumably its biggest development proposal to date.

Proposed to be developed somewhere to Cairo’s east, closer to the Red Sea, the city will span about 4 000km² and potentially be home to seven-million people.

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eye on Africa GDP by sector (percentage) Population density (persons per km2)

Land area (km2)

13,2

14,5

Agriculture, hunting, forestry, fishing Mining

15,6

17,3

of which oil

15,2

16,9

Manufacturing

16,3

15,6

Electricity, gas and water

1,7

1,6

Construction

4,3

4,6

Wholesale and retail trade, hotels and restaurants

14,7

14,1

of which hotels and restaurants

3,8

3,1

Transport, storage and communication

10,6

8,6

Finance, real estate and business services

10,1

9,4

Public administration, education, health and social work, community, social and personal services

9,3

10,4

Other services

4,2

3,8

Gross domestic product at basic prices/factor cost

100

100

Source: Opendataforafrica.org ABOVE A cotton merchant in Cairo

Macroeconomic indicators 2012

2013(e)

2014(p)

2015(p)

Real GDP growth

2,2

2,1

2,1

3,6

Real GDP per capita growth

0,5

0,5

0,4

2,1

CPI inflation

8,5

6,9

11,5

9

-10,6

-13,7

-13,1

-11,3

-4

-2,1

-1,1

-1,8

Budget balance % GDP Current account balance % GDP

Source: Data from domestic authorities; estimates (e) and projections (p) based on authors' calculations

Cairo prime rents and yields Prime rents

Prime yields

Offices

US$40/m2 per month

10%

Retail

US$100/m² per month

8%

Industrial

US$3.50/m² per month

11%

Residential

US$3 500 per month*

8%

Source: Knight Frank LLP * Four-bedroom executive house – prime location

The development of the planned new capital is aimed at boosting the country’s flailing economy, as well as helping to ease congestion and overpopulation – Cairo is home to 18-million people and is plagued by failing infrastructure and horrendous traffic.

To be built in partnership with a private developer from the United Arab Emirates, the city supposedly will take only five to seven years to complete.

Retail market Retail in Egypt has picked up significantly in the past few years. Retail has been characterised by modern schemes and large-scale projects that will be delivered to market shortly.

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The biggest malls in Greater Cairo are City Stars (150 000m² GLA) and the Mall of Arabia (180 000m² GLA). Major project Cairo Festival City Mall (168 000m² GLA) opened in 2013.

According to the Knight Frank Africa 2013 Report, most of the recent and planned development is in peripheral areas to the west and east of the city.

“Development time-scales can be unpredictable but about 500 000m² of additional retail space could be built in the next two years,” says the report. “Despite this development activity, the supply of modern retail space in Cairo will remain limited in comparison with some other cities in the MENA region, such as Dubai.”

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eye on Africa Industrial and office market In recent years, the industrial sector has been stimulated. Since the establishment of the Industrial Development Authority in 2005, there has been a major drive to attract new industrial activity to the country. In Cairo, industrial activity has mainly been focused on the locations of 6th October City and 10th Ramadan City.

In terms of the office sector, there has traditionally been a demand for office space from national and international companies in Cairo. At times, international companies are seeking as much as 10 000m², especially in the banking and petrochemical sectors.

“Orascom’s Nile City Towers dominates Cairo in terms of Grade-A space” notes the Knight Frank Africa 2013 Report. “However, demand has shifted to more peripheral areas such as New Cairo and 6th October City. This trend is likely to continue for the foreseeable future due to the ongoing congestion and political protests in the city centre.”

At the higher end, the market has been saturated, with some developers having adjusted their strategy to target the middle market.

“It is generally acknowledged that the middle- and lower-income brackets offer the greatest potential for growth because these markets are much larger than the high-income sector,” says the Knight Frank Africa 2013 Report. “One noteworthy feature of the Egyptian residential market is that it is ‘cash only’, with no mortgages available for off-plan property, which means that purchasers usually pay developers in instalments.”

BELOW A typical textile market in Cairo BOTTOM A boat on the Nile

Residential market Over the past few years, there has been great activity in the development of residential schemes, focused mostly on satellite cities such as 6th October City and New Cairo.

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cover story

ABOVE Illovo Edge Office Park Phase 2 OPPOSITE Mont Blanc Heights Executive Apartments

Ahead of the curve Developing sustainable property for the future, Mont Blanc Projects & Properties puts responsible development first

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t the heart of every successfully completed development is an equally successful property developer – and in the case of Illovo Edge Office Park, that success story is Mont Blanc Projects & Properties (MBPP).

Considered a pioneer in the field because of the standard of products and level of service it provides, MBPP’s operating divisions include quantity surveying, project management, project development and facilities management, tenant coordination and investor funding. As such, it is the goto company for property development, from design concept, through the feasibility studies to the proposal stage and, finally, project completion.

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Created in 2004, MBPP is a young and dynamic company that runs a tight ship with a team of experts drawn from different build industry backgrounds complemented by skills and experience. They take a holistic approach to each client’s needs in order to provide a successful, unique and individually tailored development for each client.

MBPP relies on a distinctly focused blend of skills to provide speedy, concise and unambiguous advice.

Sustainable and responsible building is the core of MBPP’s ethos. Green and energyefficient buildings are devised to reduce the overall impact of the built environment on

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cover story

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cover story “Current sluggish economic growth is having a negative impact on industrial property investment in KwaZulu-Natal, resulting in an upward movement in rentals”

Illovo Edge Office Park Phase 1

human health and the natural environment by efficiently using energy, water, and other resources; protecting occupant health and improving employee productivity; and reducing waste, pollution and environmental degradation. The company’s ultimate goal is to address the very real impact of climate change and act as a catalyst in South Africa’s transition to a green economy.

MBPP is involved with commercial, industrial, retail and high-end residential

56

sectors and has a number of successful developments under its belt. It also has superb projects presently on the go in the form of office blocks, industrial facilities, retail outlets, mixed-use developments and luxury residential units (including houses and apartments). The company is also involved in refurbishments and alterations to commercial buildings.

MBPP aspires to be a market leader in development and property by anticipating

and servicing the needs of clients while striving for quality, efficiency, integrity and reliability to secure the best commercial, industrial and residential solutions. MBPP is located in Johannesburg but carries out work on projects across Africa.

Illovo Edge Office Park, Corner Fricker & Harries Roads, Illovo, Sandton t: +27 (0)11 243 5001 w: Mbpp.co.za

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interview ILLOVO EDGE PHASE 2

EMPOWERED SPACES

McDONALDS LYNDHURST

WÜRTH

MONT BLANC HEIGHTS APARTMENTS

ZARA CRESTA MALL

ELVEY WAREHOUSE

NET#WORKBBDO

MONT BLANC CONSTRUCTION

placing responsible construction first

www.montblancconstruction.co.za

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on show

Three’s a charm Phase 3 of Illovo Edge Office Park is following in the successful and award-winning footsteps of the development’s Phases 1 and 2

I

llovo Edge Office Park, a premium commercial development, is positioned in the Illovo precinct; a prestigious mixed-use node located midway between Rosebank and Sandton in Gauteng. Phase 1 was successfully completed in 2009 and achieved the highest rental and sales per square metre in the country in late 2009.

In a vote of confidence, the MBPP group even acquired its own office space in the development. Phase 2 was successfully completed mid-2012 and secured a blue-chip tenant, Rio Tinto South Africa.

Located between Phase 1 and 2 on the corner of Fricker and Harries Road, the development’s location is of strategic significance: it is situated on the much sought-after Bus Rapid Transit system (BRT), allowing tenants easy access to the Rosebank and Sandton Gautrain stations.

The new Phase 3, like its neighbours, is a responsible and sustainable precinct development. Sustainability forms the core of developer MBPP’s philosophy, both in this development and all others it is involved in. Placing responsible development first has been an important part of the development team’s approach to the project.

MBPP explains the thinking behind the building’s iconic design: “Key to the building design was the notion of an open-plan work space, ecologically friendly building materials, and finishes and colours that were cautiously selected

58

to synchronise with the structure and adjacent geometry of Illovo.”

Bentel Associates International (BAI) was chosen to follow through with MBPP’s vision as architects on the project. BAI has included the limestone, off-shutter concrete and steel, to remain consistent with the strong design of Phases 1 and 2. The design creates uniformity – but according to BAI’s Tommy Bosch, Phase 3 is still the jewel in the crown. “It is not only the biggest development with its own central courtyard and feature walls in double glazing and limestone; it also offers breathtaking panoramic views from every corner of the building, which makes you feel as though you are a part of the surroundings and nature, and not in a typical office building.

It is also targeting a five-star Green Star rating,” he says. BAI was an integral part of the green design, along with the green consultants and the rest of the professional team.

Greg Straw and his company Earth Outdoor Living were at the helm of the landscaping design of Phase 3. The development essentially boasts two rooftop gardens because the central courtyard is also considered a rooftop garden – it sits upon the three basement levels underneath. Straw and his team chose a predominately indigenous assortment of plants

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on show because they tend to be lowmaintenance and water-wise.

“BAI has designed a great building,” says Straw. “It’s proudly South African – so why not use proudly South African plants?”

The design of the planting process was equally important because it had to complement the architecture with the plant material while finding a balance so the plants didn’t clash with the contemporary building.

“We used waves of different plant material, which creates different gradients because the plants follow the soil up and down and create interest,” says Straw. Earth Outdoor Living is currently working on the landscaping in the front of the building – “the last piece of puzzle”, according to Straw.

Boasting four floors, all with balconies, Phase 3 clocks in at 5 000m² of premium office space. Its multi-divisible layout allows for flexible office spaces ranging from 200m² to 1 000m².

In order to achieve the Green Star rating, energy-efficient building principles have been applied wherever possible.

It speaks to a wide range of sustainability issues and adheres to the strictest global environmentally sustainable building principles and requirements. These include maximising the use of natural daylight,

100 95 75

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on show installing energy-efficient lighting and ventilation systems, and using natural materials with a low carbon footprint. Green policies in rainwater harvesting systems, the recycling of solid waste and a waterproofing and thermal insulation roofing system have all been incorporated.

Phase 3 features • Covered parking • Dedicated emergency standby generator and uninterrupted power supply (UPS) • Fully air-conditioned VRF system • Rooftop gardens with 360-degree views of greater Johannesburg • 24-hour, seven-daysa-week security patrols and guarding • Fully integrated closedcircuit TV monitoring and enforcement • First World City Improvement District (CID) management through the Illovo Boulevard Management District company

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• First world infrastructure (sewer, electricity, storm water, telecommunications and roads) • Vodacom Business dedicated fibre optic infrastructure and telecommunication – first in South Africa (5 to 100Mbps access speed)

Green features • Use of natural materials • Green principles for heating, cooling and storm water design • Storm-water retention tanks for reuse in irrigation • Solar heating panels for heating of geysers • Rooftop gardens to insulate the roof • Pedestrian areas • Rainwater collection • Intelligent lighting

With thanks to…

Developers Mont Blanc Projects & Properties Mbpp.co.za Architects Bentel Associates International Bentel.net

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SAPOA events

On the green SAPOA Western Cape hosted a great day of golf Photographs by Mark Pettipher

First place winners, representing Roman Alexander: (from left) Gerrard Fortuin, Cecil Jacobs, Raymond Davids and Wayne Arende

Second place winners, representing Spire Property: (from left) Adriaan Jonker, St John Gardner and Robert Surgison, with Jehan Begg, Caroline Coates and Dave Russell of SAPOA

Fourth place winners, representing Old Mutual Property : (from left) Geoff Earl, Gareth Pike, Jehan Begg (SAPOA), Hein Smit, Caroline Coates (SAPOA), Roly Hofmeyr and Dave Russell (SAPOA)

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Lucky-draw prize winner Roly Hofmeyr with Brenton Ashby (Dulux) and Caroline Coates (SAPOA)

Representing Abland: (from left) Pieter Hen, Grant Hill, James Cresswell and Ton Veen, with Jehan Begg, Caroline Coates and Dave Russell of SAPOA

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SAPOA events

Sundowners with SAPOA SAPOA Western Cape hosted an enjoyable networking session at the unveiling of the Bridge Park Building – a joint venture between Rabie Property Group and Growthpoint Properties Photographs by Pierre van der Spuy

FROM LEFT Dave Russell (SAPOA), SAPOA’s Western Cape Chairperson Refqah Ho-Yee, Mike Russell (Nedbank) and Jean Theron (Rabie Property Group)

FROM LEFT Shakira Adam Varachhia, Emma Dawber, Jenni Lombard and Alain Walker of the Green Building Council of South Africa

FROM LEFT Andrea van Niekerk (GVK); Leigh Metcalf, Angelique Rowe and Janet Wishnia (all Rabie Property Group administrators); and Charmaine Koen (GVK)

The Rabie project team on the balcony of the Bridge Park Building: (from left) Colin Green, Jean Theron, Raynard Haupt, Sedica Knight, Greg Deans, John Chapman, Greg Jenkins, Colin Anderson, Miguel Rodrigues, Deidre Chapman and Tafadzwa Ncube

FROM LEFT Raynard Haupt and Colin Anderson (both Rabie Property Group); Chris Mackrill, Adriaan Read and Riaan Munnik (all Growthpoint Properties); Nabilah Varachhia and John Chapman (both Rabie Property Group); Bart Niemczynski (Growthpoint Properties) and Derick Henstra (dhk Architects)

FROM LEFT Kim Jacobs (Fairvest Property Holdings), with Lanston Foster and Tracey Palmer (both Old Mutual Properties)

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statistics

Durban in context 800 000 700 000 600 000 500 000 400 000

100 000 0

• • • • • •

• •

66

Land and water

50 000 Air and transport supporting activities

40 000 30 000

Post and telecommunication

20 000

Transport

10 000

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

0 2003

•

60 000

2002

•

70 000

2001

•

80 000

2000

•

Quarter 3

Number of formally employed sector and sub-sectors in eThekwini

1999

•

Quarter 2

Source: Port and Logistics EDGE Report, 11th Issue, December 2014

1998

• •

Quarter 1

1996

•

Situated on the east coast of South Africa in the province of KwaZulu-Natal The largest city in KwaZulu-Natal and the third-largest city in South Africa Known as the home of Africa’s best-managed, busiest port It’s estimated that the Port of Durban and its related industries contribute more than 20% of Durban’s GDP A major centre of tourism because of the city’s warm subtropical climate and multitude of beaches: Durban is the leading domestic tourist destination in South Africa (estimated visitor number for the financial year 2010/ 2011 was 9,95-million) Second-most important manufacturing hub in South Africa after Johannesburg Forms part of the eThekwini Metropolitan Municipality, which covers almost 2 300km² Total land area: 2 297km² (comparatively larger than other South African cities) Key economic infrastructure and landmarks: Durban International Convention Centre; Nandi Drive; the Durban beachfront promenade; the Port of Durban; Dube TradePort; the Moses Mabhida Stadium; King Shaka International Airport; Cornubia; Bridge City; King’s Park Sports District; uShaka Marine World; Gateway Theatre of Shopping Durban boasts a population of more than 3 442 398 people (as per 2011 Census) The population is predominantly black (68%), Indian (20%), white (9%) and coloured (3%) Main languages include Zulu (63%), English (30%), Xhosa (3%) and Afrikaans (1%) Main religions include Christian (68%), Hindu (11%) and Muslim (3%) The value of Durban’s domestic tourism economic impact on the region’s GDP is estimated to be eight percent Durban contributes approximately 55% to the KwaZuluNatal GDP, which in turn is approximately 15% of the South African GDP The maritime industry in Durban contributes between 1,5% and 2% of the national GDP By 2030, eThekwini Municipality’s goal is to boast the reputation of being Africa’s most caring and liveable city, where all citizens live in harmony

2014

200 000

Fast facts •

2013

300 000

1997

Source: Official website of the eThekwini Municipality, Durban.gov.za

Port of Durban: containers invoiced (Q1 to Q3: 2013 vs 2014)

Number of containers invoiced

The largest city in KwaZulu-Natal and the home of Africa’s busiest port, Durban is teeming with economic prosperity and tourism opportunity

Source: Port and Logistics EDGE Report, 11th Issue, December 2014

Number of formally employed sector and sub-sectors in eThekwini 8% 7% 6% 5% 4% South Africa 3% 2%

KwaZulu-Natal eThekwini

1% 0% -1% -2%

Source: eThekwini’s Economy – Fast Facts EDGE Report, 4th Issue, 2012

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editorial

TFMC focuses on new range TFMC launches Focused Services at the 2015 SAPOA Convention

B

idvest company TFMC, well known for its end-to-end total facilities management services, launched a range of focused solutions at the annual SAPOA International Convention and Property Exhibition, in line with the company’s strategy to extend its focused offerings to a broader market.

“Against the backdrop of power outages, we decided to focus on our provision of mobile generators to a larger market in an attempt to support the national energy crisis in South Africa,” Derek Jack, Chief Strategic Outsourcing at TFMC, commented at the exhibition.

Mobile generators According to Jack, TFMC’s large range of environmentally friendly and super-silent generators with full backup support on servicing, maintenance and refuelling will go a long way to bring peace of mind to small and large organisations during an emergency

or crisis situation. Long-term generator solutions are also provided to new and restructured building sites until such time as full power can be provided by the city council.

Effective utilities management TFMC also launched utilities management to a broader market, a service that the company has provided exclusively for many years to select clients in the telecommunications environment. According to Jack, this outsourced administration service includes the end-to-end financial management of large volume utilities billing (from 100 accounts upwards), encompassing analysis, reporting, review and negotiation of tariff structures, and query and legal dispute resolution when necessary.

In partnership with a sister Bidvest company, TFMC offers remote automated read meters and a team of skilled staff for manual meter reading in hard-to-reach areas.

Mobile maintenance TFMC launched a new service at the SAPOA Convention – Mobile Maintenance – which provides basic electrical, plumbing, mechanical and general building maintenance on both a scheduled-contract and planned-project basis by multi-skilled staff.

Jack said this is the first time in the industry that such a service is offered on a national basis with support from their 24/7 call centre.

“Our Mobile Maintenance service is suitable for all kinds of structures, from buildings, towers, and street lights to mobile structures,” he said.

“It includes health, safety and environmental compliance.

Standard contracts are structured to client’s requirements and can be upsized, downsized and customised to offer flexible options to suit planned maintenance projects.”

For more information, visit Totalfmsolutions.com

TOTA L FAC I L I T I E S M A N A G E M E N T C O M PA N Y

sales@tfmc.co.za

Didi on (012) 641-8000

www.totalfmsolutions.com

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June Region

Date

Event

Western Cape

4 June 2015

Green Building Breakfast Session

Gauteng

9 June 2015

Research Breakfast

Gauteng

11 June 2015

Networking Event

KwaZulu-Natal

12 June 2015

Breakfast Presentation

TBC

13 June 2015

Protection of Personal Information

Port Elizabeth

17 June 2015

Regional Meeting

East London

23 to 25 June 2015

ICPP

KwaZulu-Natal

25 June 2015

Golf Day

USA

28 to 30 June 2015

BOMA International Conference

July Region

Date

Event

Gauteng

2 July 2015

Negotiation Skills Masterclass Programme

Mpumalanga

3 July 2015

Networking Event

Gauteng

7 July 2015

Introduction to Brokering Seminar

Gauteng

15 July 2015

Regional Meeting

East London

23 July 2015

Networking Event

Gauteng

23 July 2015

Legal Breakfast

Gauteng

28 July 2015

Golf Day

KwaZulu-Natal

31 July 2015

Breakfast Presentation

August Region

Date

Event

Gauteng

4 August 2015

Research Breakfast

Gauteng

6 August 2015

SAPOA Audit Risk

Gauteng

11 August 2015

PWC Breakfast

KwaZulu-Natal

11, 12 and 14 August 2015

ECPP Training

Polokwane

12 August 2015

Breakfast: Town Planning Scheme

Polokwane

12 August 2015

Breakfast Session

Gauteng

13 August 2015

Lease Agreement Workshop

East London

14 August 2015

Golf Day

Gauteng

14 August 2015

PWC Power Hour Breakfast

Gauteng

17 to 21 August 2015

FMP Training

East London

19 August 2015

Introduction to Brokering Seminar

Port Elizabeth

19 August 2015

Regional Meeting

TBC

20 August 2015

Introduction to Brokering Seminar

Gauteng

20 August 2015

SAPOA HR Meeting

Mpumalanga

20 August 2015

Networking Breakfast

TBC

20 August 2015

SAPOA Board Meeting

KwaZulu-Natal

25 August 2015

Golf Day

Gauteng

25 to 28 August 2015

ECC Training

Gauteng

27 August 2015

Networking Event

Gauteng

28 August 2015

MOMFA

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Events and dates subject to change.

September Region

Date

Event

Port Elizabeth

1 to 3 September 2015

ICPP Training

KwaZulu-Natal

3 September 2015

Negotiation Skills Masterclass Programme

Gauteng

7 and 8 September 2015

ICPP Training

TBC

7 to 11 September 2015

ECPP Training

Port Elizabeth

8 September 2015

Golf Day

Western Cape

8 to 11 September 2015

ECPP Training

Polokwane

10 September 2015

SANS 10400 Workshop

Gauteng

15 September 2015

Retail Trends Report Breakfast

Port Elizabeth

16 September 2015

Council Meeting

Port Elizabeth

17 September 2015

Networking Event

Mpumalanga

17 September 2015

Golf Day

TBC

17 and 18 September 2015

National Council Meeting

Port Elizabeth

22 September 2015

Golf Day

Mpumalanga

23 September 2015

Networking Dinner

Western Cape

26 September 2015

Property Development Workshop

Gauteng

28 to 30 September 2015

IPMP Training

Gauteng

29 September 2015

Legal Breakfast

KwaZulu-Natal

29 September 2015

SANS 10400 Workshop

KwaZulu-Natal

30 September 2015

SACSC Annual Congress

October Region

Date

Event

Gauteng

1 and 2 October 2015

IPMP Training

Western Cape

6 to 8 October 2015

ICPP Training

Gauteng

7 October 2015

Media Lunch

Gauteng

8 October 2015

Legal Breakfast

Polokwane

15 October 2015

Golf Day

KwaZulu-Natal

15 October 2015

Breakfast Presentation

Gauteng

17 October 2015

Research Breakfast: Industrial Industry Report

Gauteng

20 October 2015

Industrial Vacancy Report Breakfast

KwaZulu-Natal

23 October 2015

Networking Breakfast

Gauteng

23 October 2015

Brokers Economic Update

Gauteng

26 to 30 October 2015

BCTP Training

Port Elizabeth

29 October 2015

Gala Dinner

November Region

Date

Event

Gauteng

4 November 2015

ECPP Training Course

TBC

5 November 2015

SAPOA Board Meeting

Gauteng

6 November 2015

Legal Power Hour

TBC

10 November 2015

Research Breakfast

KwaZulu-Natal

11 November 2015

Gala Dinner

Gauteng

11 November 2015

Negotiation Skills Masterclass Programme

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November Region

Date

Event

Gauteng

12 November 2015

Networking Event

TBC

13 November 2015

Networking Evening

Gauteng

16 to 20 November 2015

FMP Training

Gauteng

17 November 2015

FM and IAMP Training Courses

Port Elizabeth

18 November 2015

Council Meeting

KwaZulu-Natal

19 November 2015

Gala Dinner

Polokwane

20 November 2015

Council Meeting

Gauteng

20 November 2015

Brokers and Legal Update

Western Cape

21 November 2015

Property Development Workshop

Mpumalanga

25 November 2015

Gala Dinner

Polokwane

26 November 2015

Gala Dinner

Gauteng

27 November 2015

PWC Half-Day Workshop

Port Elizabeth

29 November 2015

Gala Dinner

December Region Buffalo City

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Date 3 December 2015

Event Developers’ Gala Dinner

2015/06/03 1:21 PM

interview

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Bentel boosts Durban’s retail Bentel Group’s R250-million investment gives Durban’s old Overport City shopping centre a bright future as The Atrium Berea

T

he Gauteng-based Bentel Group’s R250million investment in the acquisition and redevelopment of The Atrium on the Berea in Durban, previously known as Overport City, has unlocked significant untapped potential for this unique retail asset.

“We acquired the centre in late 2013 from Durban-based Terrafirmanet Investments and continued their redevelopment vision,” says Selwyn Bentel, Director of Bentel Group.

“The centre was built in the early 1970s, and this is its first major refurbishment in 30 years. The Atrium has now been transformed into a bright, airy, secure and contemporary shopping destination that reflects the shopping, business and leisure needs of the up-market consumers who reside in the surrounding suburbs.”

The Atrium is centrally located in the densely populated up-market suburb of Essenwood, which is home to the most affluent residents on the Berea. It is also within easy reach of residents across a broad spectrum on the Berea and the surrounding areas, which include Overport, Morningside, Greyville and Glenwood. ”The area boasts many of the best private schools in KwaZulu-Natal and The Atrium is proud testament to this important Durban heritage” says Bentel.

The 25 000m² centre comprises 18 000m² of retail on three easily interlinked shopping levels, and offers about 7 000m² of triple “A” quality offices in a seven-floor office tower. Each retail level has its own parkade and the centre boasts generous covered parking overall.

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A design highlight of The Atrium is the striking 17,8m-high atrium at the heart of the centre, where natural light streams in, creating a refreshing and pleasant shopping experience. “This key feature inspired the centre’s new name,” explains Bentel.

The mall’s bright court spaces also give it the ability to excite shoppers with different and changing experiences, making it the ideal venue for events, shows and activations, in addition to is compelling retail appeal.

The Atrium boasts a 4 000m² Checkers, Dis-Chem and Virgin Active. Its fashion mix includes various Pepkor brands, Pick n Pay Clothing and several hand-picked local boutiques. Spur, John Dory’s and Maxis round off its restaurant offering, with entertainment offered by Gold Circle Gaming. Strong on everyday services, it boasts seven full banking branches, six cellular shops, a post office, medical facilities, a travel agent, a UK visa application centre and a photographic studio.

“Our retail mix includes the brands that have proved most popular at the centre over the years, plus some exciting new additions that bring it in line with the latest trends,” says Bentel. “We have held back a few small spaces and are in the process of selecting the final brands and concepts to complete the optimal retail mix for the centre.”

The Atrium’s prominent high-rise office space provides an excellent business address.

Its office tower refurbishment is creating a modern working environment, supported by the centre’s retail and business services, with ample parking and excellent accessibility, including bus and taxi routes to the city.

“The strong take-up of offices complements the mixed-use vision for The Atrium,” says Bentel. “The refurbishment of the office tower has helped us secure various large corporate office users.” Among these is a Virgin Active Health Club that offers members some of the best views in the city while training.

Bentel adds that each floor offers about 1 100m² of office space, and between 2 000 and 3 000m² of office space will be available as the office refurbishment rolls out.

This is Bentel Group’s first retail centre investment in KwaZulu-Natal, and it has been able to bring a fresh perspective.

“The Atrium is a real property gem and the polish it has received with this major refurbishment has allowed it to really shine. It has resulted in an exceptional modern retail and office environment,” says Bentel. “The Atrium is a prime asset that would be incredibly difficult to replicate in the current business context, and we’re excited to be part of the centre’s future success.”

SOUTH AFRICAN PROPERTY REVIEW

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STRONG RELATIONSHIPS ARE BUILT ON SOLID FOUNDATIONS We know the importance of relationships.

Working together allows us to understand your needs so we can offer the best real estate solutions for you. With over 152 years of banking experience, this is how we’re moving real estate forward.

They call it Africa. We call it home. www.standardbank.co.za/cib

Authorised financial services and registered credit provider (NCRCP15).

The Standard Bank of South Africa Limited (Reg. No. 1962/000738/06). SBSA 204201 – 04/15 Moving Forward is a trademark of The Standard Bank of South Africa Limited

Contents_JUNE_SUBBED.indd 5 204201 Real Estate NIGERIA Portrait SA A4.indd 1

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1

2

Proactive Quantity Surveying 3

4

1 Head office for Ecobank in Accra, Ghana. Architects: Arc Architects 2 West Hills Mall in Accra, Ghana for a subsidiary of Atterbury Properties. Architects: Arc Architects 3 Student accommodation in Pretoria for the Feenstra Group. Architects: Boogertman + Partners 4 Vdara Office Park in Johannesburg for Bakos Brothers. Architects: Integrale Architectural Design

Our track record speaks for itself.

DelQS was established in 2000 and has since built up a remarkable track record. We have provided quantity surveying services for almost all building types ranging in construction cost from relatively small to multi-billion Rand developments. Building and property economics is a specialty.

QUANTITY SURVEYING

Gerhard de Leeuw

Akopo Africa

Nico Roos

Dr CornĂŠ de Leeuw

DISPUTE RESOLUTION

PROPERTY VALUATION

www.delqs.com | JHB +27 (11) 642 8751 | PTA +27 (12) 460 3304 Associated offices: GHANA | KENYA | MAURITIUS | NAMIBIA | NIGERIA | TANZANIA | UGANDA

2

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