Page 1

South African Property Review

PROPERTY SOUTH AFRICAN

November 2017

REVIEW

PROPERTY REVIEW - LogoTreatment.pdf

1

2016/08/25

11:31 AM

GREEN ON THE HORIZON

International and local overview Green and the Environment

WATER, WATER EVERYWHERE And not a drop to drink

INDUSTRY FOCUS Facilities management November 2017

NETWORKING

Report back on events and workshops


YOU FOCUS ON WORK, WE’LL DO THE REST Our Facilities Management team is dedicated to providing the safest, most efficient, and cost-effective work environments. That’s why some of the largest, and most successful, corporations in the world trust us with the management and operation of their facilities. We are an extension of our client’s organisation. We add value because of our personnel’s experience and industry knowledge, and the use of cutting-edge technology. We work with you to understand your operating philosophy. Our services improve operating efficiencies across your entire portfolio.

Parking services Security services Business support services Sustainability programmes Environment, health & safety Catering and hospitality services Proactive/predictive maintenance Energy management & procurement Housekeeping and janitorial services Workplace management & optimisation Engineering & maintenance services (mobile)

Johannesburg +27 11 911 8000 cwexcellerate.com 4

SOUTH AFRICAN PROPERTY REVIEW

An independently owned and operated affiliate of Cushman & Wakefield


contents

November 2017

PROPERTY SOUTH AFRICAN

REVIEW

ON THE COVER Welcome to our prototype online Property Review offering, lookout for the pages that have interactive links to video and websites.

2 4 6 8 12 16 18 20 24 26 28 30 32 34 36 38 40 45 46 48

From the CEO From the Editor’s desk Industry news Legal opinion Business rescue: How the Tudor Hotel case has changed the landscape Legal opinion POPI: The Protection of Personal Information Act Education Increasing knowledgeof the property industry Planning & Development eTHEKWINI: Integrated Development Plan (IDP) 2017-2022 Renewable energy Green on the horizon Water conservation Water: The nation’s most valuable asset Western Cape water plan The City of Cape Town’s Critical Water Shortages Disaster Plan Facilities management The future of facilities management One on one Specialised outsourcing facilities management components Future architecture World Architecture Festival announces WAFX prize-winners Reconstruction Zeitz Museum of Contemporary Art Africa Cyber finance Blockchain technology 101 GBCSA Convention Dare to lead Social What’s on Upcoming events Eco construction Wooden skyscrapers: set to transform our cities? Off the wall Far from the madding crowd FOR EDITORIAL ENQUIRIES, email mark@mpdps.com 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

Editor in Chief Neil Gopal Editorial Adviser Jane Padayachee Managing Editor Mark Pettipher Copy Editor Ania Rokita Public Relations Officer Maud Nale Production Manager Dalene van Niekerk Designer Eugene Jonck Sales Nkepile Setshedi: sales@sapoa.org.za Finance Susan du Toit Contributors Brad Jones, Blockgeeks.com, Hanler van Eck, Ines Esmeraldo, Maud Nale, Mel Barends, Mumtaz Moola, Patricia de Lille, Phil Rhuimte, Tshepo Tshabalala, Worldarchitecturefestival.com Photography Mark Pettipher 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. Printed by Designed, written and produced for SAPOA by MPDPS (PTY) Ltd e: mark@mpdps.com

e: philip@rsalitho.co.za


from the CEO

SAPOA’s view regarding business rescue and the termination of leases upheld by the Supreme Court of Appeal hen a b siness is placed nder b siness resc e landlords often find themsel es in a sit ation where the b siness resc e practitioner s spends the payment of rental and charges

A

ccording to the Supreme Court of Appeal judgment in the matter of Tudor Hotel Brasserie & Bar (Pty) Ltd v Hencetrade 15 (Pty) Ltd (793/2016) [2017] ZASCA 111 (20 September 2017), the new angle is the fact that the lessor can cancel the lease if the rent is not paid. According to the decision, the ordinary consequences of non-payment of rent follow if the business practitioner decides not to pay the rent, whether the obligation is suspended or not. Once the lease is cancelled, the lessor can apply for ejectment of the tenant from the premises. Ejectment proceedings can only be instituted with the consent of the court, which will exercise its discretion based on the particular facts. These facts would include whether the premises are required for the business to trade, whether there is any prospect of the lessor recovering the growing debt in the course of the business-rescue proceedings, and the extent of the monthly loss that the lessor will incur. The Katz Specialist Committee, a committee of the Department of Trade and Industry set up to advise the Minister on the Companies Act, had a different view. The committee said the basic principle of business rescue is to try to rescue a trading company. If the lease is cancelled, there will usually be no chance of rescuing the company – because there will be nowhere to trade from if the company is rescued. The answer to that is that there is no reason why the landlord must bear that loss of rent on an ongoing basis, and the company should be liquidated. To support Professor Michael Katz’s view, the phrase in Section 136 of the Companies Act that “the business-rescue practitioner may entirely, partially or conditionally suspend, for the duration of the businessrescue proceedings, any obligation of the company that arises under an agreement to which the company was a party at the commencement of the business-rescue proceedings and would otherwise become

2

SOUTH AFRICAN PROPERTY REVIEW

due during those proceedings” would have to be interpreted to imply a temporary suspension. The argument would be that the obligation is suspended temporarily, and therefore the rent is not currently due and the company is not in breach of the lease. That presupposes that the suspension is a temporary suspension of the obligation to pay rent, which must be paid when the company comes out of business rescue. Section 136(3) of the Companies Act only allows a party whose agreement has been suspended to assert to a claim for damages. Such a damage claim by a landlord would be for holding over. A holding-over claim is only possible if the occupant is in unlawful possession, which would follow from the cancellation of the lease. The fact that all the lessor has is a damage claim implies that the suspension is not just a temporary suspension of the obligation.

There are two potential difficulties for lessors: ● The right to sue is granted in the discretion of the court. ● The cancellation principle has not yet been tested in any appeal court. The first person to go ahead with such a case cannot be guaranteed success, either with regard to leave to cancel or leave to sue. A lease is a bilateral contract, and the business-rescue practitioner cannot expect performance in the form of occupation of a fully serviced property without paying the rent. One party to a lease is not entitled to demand performance by the other party unless they offer the reciprocal performance. Leases should be specifically drafted on this basis so that there is no doubt about the bilateral nature of the obligations to pay rent in return for undisturbed possession. Neil Gopal, CEO


APPRECIATING PROPERTY LOCATION

NAA GLOBAL WINNERS

The key to property investment success is the appropriate development in a suitable location at the right price. Contact the international award winning property specialists today.

Appreciating Property Value Johannesburg - 011 684 2707 I Cape Town - 021 403 6433 I Durban - 031 830 5521

www.highstreetauctions.com A member of the National Auctioneers Association (NAA)

4

SOUTH AFRICAN PROPERTY REVIEW


from the Editor’s desk

Going green In the build-up to this edition of Property Review, a number of us attended the Green Building Council of South Africa’s convention, which took place in Cape Town. Much time was also spent on researching the “green” feature

I

'm excited to say that we're working towards an online, fully integrated and 'greener' Property Review. This edition we're online with our “prototype”: as you’re reading this, you’re doing so digitally. You’ll find that the online environment allows for a number of ways to add value. We’re embedding the magazine into its own website, at the same time it is still available online through Issuu.com (although that version is not as interactive). Those of you who want to be able to download a copy of the magazine can download a PDF version. Wherever we can, we’ll be adding video and sound bytes to the website version to enhance your experience. What this means is that our advertisers will benefit tremendously from a simple add on – which is either by hot-linking their URLs and e-mail addresses, or linking to full campaigns with call-to-action response capabilities. The possibilities are endless. Our look and feel will still remain crisp and easy to read and navigate – but now it’s going to be far more fun to go through. The online version will work best on a tablet, but you can also read it on your laptop or desktop. We’re developing an app as well, so make sure you stay online and connected! In this edition, you’ll find the usual news pages – although as we go forward with the digital edition, the news pages will be migrated to Property Review’s landing page, with a link through to the newsy bits that we get sent every month. We’re planning to upload those pages regularly, so you can stay up to date with what’s happening in the commercial property industry. With the recent revelation that the names, contact details and other personal information of more than 33-million South Africans have been dumped onto the World Wide Web, we thought it would be appropriate to run a legal piece on POPI in addition to Mumtaz’s regular legal offering. Planning takes us to eThekwini, where SAPOA has been involved with the Integrated

4

SOUTH AFRICAN PROPERTY REVIEW

Development Plan 2017-2022. We outline some of the strategies involved. In keeping with our green theme this month, we cover a number of related topics. In the renewable energy feature, we take a look at some of the more interesting green developments that have taken place recently. Water is a huge issue at the moment, especially in the Western Cape, so we got hold of Rand Water, who were kind enough to provide us with eight water-wise tips. We follow this article with Patricia de Lille’s Critical Water Shortages Disaster Plan. For those of you living in the Western Cape, please remember that we’re still at Level 5B in terms of water restrictions. Facilities management is an ever-changing environment in the age of technology. We asked some questions about the future of this particular profession, and got Mel Barends of Broll to provide some insightful answers. Building and new technology go hand in hand. We’re privileged to be able to share the World Architecture Festival prize winners with you, and to delve into the recent opening of the Zeitz Museum of Contemporary Art Africa with Hanler van Eck of Dimension Data, who talks us through some of the museum’s tech.

I’ve often been asked about “blockchain technology“. It’s something we’ve all heard of but probably know very little about. With a bit of cyber-digging, I came across Blockgeeks.com, where I was able to find a proper explanation of what it’s all about. I also had the pleasure of attending the Green Building Council of South Africa’s convention in Century City, Cape Town. All 600 delegates were rewarded with pertinent and exciting discussions. The takeaway is that all our cities need to get on board and start implementing the strategies that our local players and international speakers outlined. I look forward to being able to attend the convention again next year. As the year draws to an end, we find ourselves with several events and networking opportunities on the horizon. In addition to SAPOA’s Annual Convention, these smaller local events are the highlight of the year, so we’d like to extend a huge note of thanks to our partner sponsors. We simply could not put them on without you. As is usual, this issue of Property Review concludes with our Off the Wall feature – but what’s really “off the wall” this month is our article on wooden skyscrapers. Also, over in the United Arab Emirates, there has been a move to beat the heat and traffic congestion by jumping into an autonomous aerial vehicle – a man-sized drone that could be redefining the concept of city travel soon. Could this be the way to get around Jo’burg or make it to that 8am meeting? The final 2017 issue of Property Review – our December/January edition – will also be available online. In it, we’ll be looking at various CSI initiatives, rounding up the past year in property, and possibly making a few New Year’s resolutions. Keep connected, diversify and stay online. Happy scrolling! Enjoy the read this month. Mark Pettipher, Managing Editor


18420

PROPERTY DEVELOPMENT CHANGES THE VIEW, THE LONG TERM ECONOMIC VIEW. As the market leader in commercial property finance we look beyond the bricks and buildings and see the growth in communities, regions, our country and even our continent. When you look at it from this angle, the outlook is encouraging. nedbank.co.za/cib

see money differently Nedbank Corporate and Investment Banking is a division of Nedbank Ltd Reg No 1951/000009/06. Authorised financial services and registered credit provider (NCRCP16).

4

SOUTH AFRICAN PROPERTY REVIEW

18420 NB CIB Property Finance Generic Folder 297X210.indd 1

2017/08/28 4:55 PM


industry news

Emira boosts its energy savings with new solar farm at Randridge Mall

E

mira Property Fund has installed a R16-million solar farm on the roof of its Randridge Mall in Randpark Ridge, Jo’burg. This innovative project continues Emira’s drive to add more renewable energy solutions to its quality portfolio of properties across South Africa as part of its sustainability strategy. The photovoltaic solar farm, comprising 10 900 panels, produces about 1,2MWh of electricity. The is Emira’s second solar installation, and follows its successful solar-power pilot project launched in 2015 at the Epson Downs Shopping Centre in Bryanston, which produces about 271kWp and saves more than 515 000kWh each year. The new solar installation at the 22 500m2 Randridge Mall is set to save a massive 2GWh of electricity per year. It is estimated that, over 15 years, the use of this solar power will save Emira more than R40-million on its electricity costs at the mall. Its solar farm is a good investment that is also good for the environment. “Our pilot solar-power project has proved successful and delivered real, tangible benefits that we’re excited to extend to Randridge Mall,” says Justin Bowen, Development Manager at Emira. “At the same time as driving down electricity consumption and costs, our increased use

of renewable energy further reduces Emira’s carbon footprint.” Emira again partnered with Bright Black Solar to supply and install the solar power system at Randridge Mall. Its panels were imported and manufactured by Canadian Solar/Jinko; it uses SMA inverters. After months of planning and logistics, installation of the solar farm began in March this year. It includes a carport system of 550kWp, with the rest of the panels being roof-mounted. The solar photovoltaic installation began operating in May 2017. Bowen believes there is potential to use more renewable solar energy at other properties in Emira’s portfolio. “We are assessing further opportunities for using on-site renewable energy generation and reducing electricity consumption at other properties in the near future.” Solar installation

Wits programme joins IREM partnership

T

he postgraduate diploma programme in property development and management at Wits University has been accepted as an education equivalent for the certified property manager (CPM) designation education requirements by the Institute of Real Estate Management (IREM). An affiliate of the US National Association of Realtors, IREM is a key player for property management professionals. The IREM partnership was brokered by Saul Gumede, co-founder of the Dijalo Property Group and a board member of the South African Institute of Black Property Practitioners (SAIBPP) on behalf of the institute. This conforms with the SAIBPP’s intention of using skills development to broaden access to the local real estate sector.

6

SOUTH AFRICAN PROPERTY REVIEW

DölbergPremium acquires RentWorks

Kuben Rayan, RentWorks CEO

R

entWorks, South Africa's largest independent asset rental company, has been acquired by DölbergPremium. A subsidiary of WesBank, one of the country’s major asset financial services providers, RentWorks currently funds more than R3-billion worth of assets for more than 400 organisations across most industries and asset types.

The current management team and all employees of RentWorks will remain on board to ensure a seamless transition. “The reason behind this acquisition is alignment to worldwide trends in regulatory frameworks, which are more and more inclined towards the separation of banking and non-banking activities in the financial-services industry,” says Kuben Rayan, who remains the CEO of RentWorks. “We look forward to the journey ahead to better serve our valued clients and suppliers.” With this acquisition, DölbergPremium will be able to enhance its offering to current and future customers.

WSP settles into new Africa HQ

W

SP’s new HQ building in Bryanston is the first of seven to be completed as part of Emira’s redevelopment of the Knightsbridge office park. Construction began in January 2016; WSP took occupancy in early September. As the anchor tenant for the first phase of the redevelopment project, WSP played a pivotal role in the design of not only its own building, but also in the layout and planning of the precinct. For the construction of its new HQ, WSP provided a full host of design-consulting services, and worked closely with the architect, project manager, quantity surveyor and the full construction team. In the early design phase, WSP used its 3D assets to design an immersive virtual-reality rendering of the planned redevelopment for the precinct, and a detailed rendering for the company’s building. The WSP building boasts a 4-Star Green Star SA Design rating certification from the Green Building Council of South Africa; in time, the consulting company will seek its “Existing Building’’ rating, too, based on the actual performance of the building. The design of the building is at the cutting-edge of modern working environments. Following biophilic design principles, the building offers staff an amazing space to work in – and be inspired by.

According to Professor Samuel Azasu, who coordinates the postgrad and executive programmes in real estate, a benefit of the IREM partnership is that it enables the postgraduate diploma programme in property development and management to become a conduit for accelerated training of professional property managers for the South African market. It also increases the international credibility of South African graduates in the international real estate job market. Wits University hosted the first CPM preparatory classes in August. A licensing agreement was signed between Wits, IREM and SAIBPP on 18 August at the Professional Development Hub at Wits. Funding for the classes and exams for the pilot group came from Pareto Limited. The long-term aims for the partnership are to foster the development of a local chapter of IREM and professionalise property management.


industry news

Coega wins big at Lilizela Awards

T

he Coega Vulindlela Accommodation and Conference Centre (VACC) has been recognised for its state-of-the-art meetings, exhibitions and special events facility at the recently held provincial Lilizela Awards in East London. VACC also received a further nomination for the national leg of the Lilizela Awards, held at the end of October. “This accolade affirms the value proposition offered by Coega VACC and helps to boost the tourism industry in the area surrounding Port Elizabeth,” says Miliswa Filtane, Key Accounts Manager at the Coega VACC. “We pride ourselves on the experience people have in our stylish, comfortable

facility, and are looking forward to the national awards.” The Coega VACC beat four other Eastern Cape establishments to win the Meetings, Exhibitions and Special Events (MESE) Award at the provincial awards, which falls in the three-star category for Service Excellence in 2017. In addition, the Coega VACC was also a provincial finalist for the Guest House Service Excellence Award. The Lilizela Tourism Awards recognise and reward tourism players and businesses who work passionately and with pride to deliver world-class products and services. “This award is proof that the Coega VACC is helping to grow South Africa’s global destination competitiveness,” says Filtane.

Pareto bags major awards

P

areto Limited shopping centres have won both of the South African shopping centre industry’s highest accolades – the 2017 Spectrum Award for Retail Development and Design and the 2017 Spectrum Award for Shopping Centre Marketing. Only two Spectrum Awards are given out every year by the South African Council of Shopping Centres; one for the overall winner of the Retail Development and Design Awards and the other for the overall winner of the Footprint Marketing Awards. Pareto’s extension and refurbishment of Menlyn Park Shopping Centre scooped the Spectrum Award for Retail Development and Design, and the launch of Pareto’s Cresta Shopping Centre’s new Food and Entertainment Court triumphed to win the Spectrum Award for Shopping Centre Marketing. “Winning these awards is an honour and an accomplishment that our people and partners can be tremendously proud of,” says Pareto Group CEO Malose Kekana. “These accolades confirm that our portfolio is distinguished by investment in prime locations that are also the heart and soul of their communities, and where individuals enjoy experiences that extend beyond traditional shopping.”

HEALTH & SAFETY CONSULTANTS

Cairnmead Industrial Consultants provide Clients with a unique Consulting Service within the Occupational Health and Safety discipline. We take pride in implementing the understanding required in the industry, as well

Christof Lourens Managing Director

as the theoretical knowledge involved. We assist our Clients with the relevant hands on application of the Occupational Health and Safety Act, Regulations and associated Southern African National Standards in their business. Our Consultants are fully equipped with a mobile office enabling them to compile and issue reports on site.

We strive to protect our Clients by ensuring that documentation and physical audits are done on all Contractors appointed on a Project. We further ensure that the Tenants and their Contractors act to their Legal responsibilities.

tel: 012 346 5752 | fax: 086 685 1118 | email: christof@cairnmead.co.za

Menlyn Park Shopping Centre

78 Kalkoen St, Monument Park, Pretoria, 0181 | website: www.cairnmead.com

SOUTH AFRICAN PROPERTY REVIEW

7


legal opinion

Business rescue:

how the Tudor Hotel case has changed the landscape hen a b siness is placed nder b siness resc e landlords often find themsel es in a sit ation where the b siness resc e practitioner s spends the payment of rental and charges Words by Mumtaz Moola

A

lease is a bilateral contract. The business rescue practitioner cannot expect performance in the form of occupation of a fully serviced property, without paying the rent. One party to a lease is not entitled to demand performance by the other party unless they offer the reciprocal performance. Leases should be specifically drafted on this basis so there is no doubt about the bilateral nature of the obligations to pay rent in return for undisturbed possession. According to the Supreme Court of Appeal judgment in the matter of Tudor Hotel Brasserie & Bar (Pty) Ltd v Hencetrade 15 (Pty) Ltd (793/2016) [2017] ZASCA 111 (20 September 2017), the new angle is the fact that the lessor can cancel the lease if the rent is not paid. The lessee admitted that it had not paid the rental in terms of the lease agreement, but denied that any was due on the basis that its obligation to make payment was suspended as a result of the failure by the lessor to afford to the lessee vacant occupation of the entire leased premises. The lease agreement obliged the lessee to make payment of the rental “on or before the first day of each month” and “without any deductions or set-off whatsoever”. It was held that the rent had to be paid in advance by the lessee, and was accordingly not reciprocal to the obligation of the lessor to provide beneficial occupation of the entire premises. The terms of the lease therefore precluded suspension of the payment of rental by the lessee, as a result of the failure by the lessor to afford to the lessee beneficial use of the entire leased premises. As a result, the cancellation of the lease by the lessor was justified because the lessee was in arrears with the rental payments. According to the decision, the ordinary consequences of non-payment of rent follow if the business practitioner decides not to pay

8

SOUTH AFRICAN PROPERTY REVIEW

the rent, whether the obligation is suspended or not. Once the lease is cancelled, the lessor can apply for ejectment of the tenant from the premises. Ejectment proceedings can only be instituted with the consent of the court, which will exercise its discretion based on the particular facts. These facts would include whether the premises are required for the business to trade, whether there is any prospect of the lessor recovering the growing debt in the course of the business rescue proceedings, and the extent of the monthly loss that the lessor will incur.

The facts of the cases are as follows: the respondent, Hencetrade 15 (Pty) Ltd, successfully brought an application before the Western Cape Division, Cape Town (Binns-Ward J) for the eviction of the appellant, Tudor Hotel Brasserie & Bar (Pty) Ltd, from premises located at 153 Longmarket Street, Cape Town, used by the appellant to conduct the business of a hotel. The right to occupation of the premises by the appellant was based upon a written lease agreement concluded between the parties on 29 June 2012

The Katz Specialist Committee on the Companies Act, however, held a different view. It said that the basic principle of business rescue is to try to rescue a trading company. If the lease is cancelled, there will usually be no chance of rescuing the company because there will be nowhere to trade from if the company is rescued. The answer to that is that there is no reason why the landlord has to bear that loss of rent on an ongoing basis, and the company should be liquidated. The facts of the cases are as follows: the respondent, Hencetrade 15 (Pty) Ltd, successfully brought an application before the Western Cape Division, Cape Town (Binns-Ward J) for the eviction of the appellant, Tudor Hotel Brasserie & Bar (Pty) Ltd, from premises located at 153 Longmarket Street, Cape Town, used by the appellant to conduct the business of a hotel. The right to occupation of the premises by the appellant was based upon a written lease agreement concluded between the parties on 29 June 2012. The eviction was granted on the basis that the respondent had validly cancelled the lease after the appellant had fallen into arrears with the rental payments. Despite the respondent having afforded the appellant the requisite notice to cure its default, it had failed to do so. The appellant admitted that it had not paid the rental in terms of the lease agreement, but denied that any was due, on the basis that its obligation to make payment was suspended as a result of the failure by the respondent to afford to the appellant “vacant occupation or beneficial use of the entire leased premises”. It was common cause that, at the time that the appellant was given occupation of the premises, the respondent had retained a portion of the third floor to store property.


4

SOUTH AFRICAN PROPERTY REVIEW


legal opinion The legal basis for the argument of the appellant was the exceptio non adimpleti contractus (the ‘exceptio’). The appellant submitted that this raised the legal question of whether the exceptio was available to a lessee who received only partial occupation of leased premises, but did not cancel the lease.

The court a quo pointed out that the appellant’s approach to the issue of its liability to make payment of the rental ran counter to a line of authority commencing with Arnold v Viljoen 1954 (3) SA 322 (C), and stated (at para 9) that: “In terms of that line of authority, a lessee who takes occupation of premises which are deficient in any respect is obliged, while it remains in occupation, to pay the full rental stipulated in terms of the lease” The court a quo pointed out that the appellant’s approach to the issue of its liability to make payment of the rental ran counter to a line of authority commencing with Arnold v Viljoen 1954 (3) SA 322 (C), and stated (at para 9) that: “In terms of that line of authority, a lessee who takes occupation of premises which are deficient in any respect is obliged, while it remains in occupation, to pay the full rental stipulated in terms of the lease. Its remedy is to claim compensation by way of an abatement of rental and/or damages. A lessee who, having taken occupation, fails to pay the full rental is exposed to the cancellation of the lease for non-payment.” The court a quo then referred to the decision in eThekwini Metropolitan Unicity Municipality (North Operational Entity) v Pilco Investments CC [2007] ZASCA 62; [2007] SCA 62 (RSA) para 22, where it stated that “unless the abatement in rent to which the respondent might have been entitled in respect of the part of the third floor of Huys Heeren XVII not made available by the applicant was capable of prompt ascertainment, the respondent was obliged to have paid the full rental during the first period”.

10

SOUTH AFRICAN PROPERTY REVIEW

Finding that any remission in rental to which the appellant might have been entitled was not capable of prompt ascertainment, the court a quo decided that the appellant was in arrears in respect of the payment of rental, when the respondent validly exercised its right to cancel the agreement. An order evicting the appellant from the leased premises was accordingly granted. The respondent, by way of supplementary heads of argument, relied upon the unreported decision in Baynes Fashions (Pty) Ltd t/a Gerani v Hyprop Investments (Pty) Ltd [2005] JDR 1382 (SCA). In Baynes Fashions (at para 4), the following relevant clauses in the lease agreement provided as follows: “All rentals payable by the TENANT in terms hereof shall be paid monthly in advance without any deduction or set-off ; the TENANT shall have no claim against the LANDLORD for compensation, damages, or otherwise by reason of any interference with his tenancy or his beneficial occupation of the premises occasioned by any … repairs or building works as herein before contemplated…” In Baynes Fashions, the interpretation the court placed upon the provision that the rent was payable “in advance”, namely that “payment of rent by the lessee is not contingent upon prior performance by the lessor”, necessarily involved a finding that the principle of reciprocity was excluded by the terms of the lease. The conclusion in Baynes Fashions that the lessee was not entitled to a “reduction of rent”, caused by interference with the lessee’s right of beneficial occupation, was based upon the provisions of clause 6.2 that the rent was payable “without any deduction or set-off ”, and clause 25.4 that the tenant would not have any claim against the landlord “by reason of any interference with his tenancy or his beneficial occupation of the premises” caused by any repairs or building works. The relevant clauses in the present lease agreement must be interpreted against the background set out above. “All payments in terms of this lease to be made by the tenant to the landlord shall be made on or before the first day of each month without demand, free of exchange, bank charges and without any deductions or setoff whatsoever.” Clause 21 of the lease agreement provides for the “landlord’s limitation of liability” in the following terms: “The tenant shall not have any claim of any nature

whatsoever against the landlord, whether for damages, remission of rent or otherwise, for any failure of or interruption in the amenities and services provided by the landlord, any local authority and/or other service provider to the leased premises, building and/or property unless such failure or interruption is caused by the negligent or wrongful act or omission by the landlord or its agent or representative, notwithstanding the cause of such failure or interruption; not be entitled to withhold or defer payment of any amounts due in terms of this lease for any reason whatsoever.” The provision that the rental was to be paid “on or before the first day of each month” had the effect that it was to be paid in advance by the appellant. The obligation of the appellant to pay the rental was accordingly not reciprocal to the obligation of the respondent to provide beneficial

The terms of the lease therefore precluded the suspension of the payment of rental by the appellant, as a result of the failure by the respondent to afford the appellant beneficial use of the entire leased premises. As a result, the cancellation of the lease by the respondent was justified, the appellant being in arrears with the rental payments occupation of the entire premises. Further, clause 21.1.2 precluded the withholding of rental as a result of a “failure of or interruption in the amenities and services provided by the landlord”. The terms of the lease therefore precluded the suspension of the payment of rental by the appellant, as a result of the failure by the respondent to afford the appellant beneficial use of the entire leased premises. As a result, the cancellation of the lease by the respondent was justified, the appellant being in arrears with the rental payments. The Supreme Court of Appeal dismissed the appeal by a lessee against an order of eviction granted by the High Court, as a result of the lessee having had fallen into arrears with the rental payments.


Attacq is a premier property company delivering exceptional and sustainable growth through real estate investments and developments. Waterfall, Attacq’s flagship development, boasts a diverse portfolio that includes retail, industrial, office, mixed-use and hotel investments. A key element of the company’s success is that a deep and deliberate commitment to sustainable building practices, lies at the heart of all its development projects.

BEING SUSTAINABLE Sustainability goes far beyond simply being a good corporate citizen, it’s also about making good business decisions. As a company committed to creating long-term value for all our stakeholders, sustainability forms part and parcel of Attacq’s DNA. As property owners, we go to great lengths to understand and assess the environmental and social impact of all our developments. We design and build, incorporating the very best in urban design and sustainability principles. One such example is our premium development, Waterfall City. Over and above its great access, location and proximity to amenities, its sophisticated infrastructure is a benchmark of sustainability best practice.

“Although green buildings may cost more to design or initially develop, the benefit their users (and broader society) experience during the life of the asset, cannot be understated”

All our new developments in Waterfall, are built using environmentallyconscious building materials and incorporate energy efficiency, water conservation and indoor environmental quality measures. Energy and water ratings of all our buildings are evaluated on an ongoing basis, which is not only good practice in transparent, ethical development, but also highlights additional areas for improvement. Many of our buildings have achieved the Green Building Council of South Africa’s (GBCSA) Green Star SA rating, which considers the environmental impact of building design and construction.

said Morne Wilken, Attacq CEO.

CASE STUDY: In line with Attacq’s commitment to environmental sustainability, a solar photovoltaic (PV) plant was developed on the roof of the super-regional, Mall of Africa, in Waterfall City. The 4 755 kWp PV plant, with 15 080 solar panels covering an area of 30 000 m2, will supply electricity directly to the six substations in the Mall of Africa. Once complete, it will be the largest rooftop diesel/PV hybrid system in the world. At maximum capacity, the unit generates more than 16% of the centre’s Our power requirement. The clean, renewable energy generated from PV plant is expected to reduce Waterfall City’s carbon footprint by 8 180 tonnes of CO2e in the first year of operation.

“The aim is to grow total PV capacity on our properties to supply over 12.5% of power requirements. In time, these systems will deliver considerable cost savings for us, as landlords, and also for our tenants.”

ATTACQ’S SUSTAINABILITY DRIVERS: sustainability approach is built around three major drivers:

BUSINESS SUSTAINABILITY

• Cost effectiveness and efficiency of our buildings in terms of: › Energy › Water › Waste management

Werner Mulder, Head of sustainability at Attacq.

OPERATIONS SUSTAINABILITY ATT House, 2nd Floor, Maxwell Office Park 37 Magwa Crescent, Waterfall City T +27 10 596 8892 T +27 87 845 1136 reception@attacq.co.za www.attacq.co.za

• Continuity of utility supply: › Back-up power for realistic scenarios (not just load shedding) › Water and waste continuity plans

ENVIRONMENTAL SUSTAINABILITY

4

• Managing and monitoring our impact on the environment: › Green strategy › Carbon footprint › Light pollution › Energy efficiency

SOUTH AFRICAN PROPERTY REVIEW

Attacq-SAPOA Full Page Ad-210x297mm-October 2017.indd 1

2017/10/12 9:14 AM


legal opinion

POPI: The Protection of Personal Information Act The Protection of Personal Information Act (“POPI”) is legislation whose goal is to safeguard every organisation (“responsible party”) to handle the personal information of another entity in an accountable way when gathering, dispensing, stowing and distributing it, by holding the organisation answerable if it misuses or compromises any individual’s personal information in any way Words by Ines Esmeraldo, Attorney at Law: Esmeraldo and Associates

P

OPI regulates the processing of information from the commencement of gathering of the information to the obliteration of the information gathered. In POPI’s implementation, companies and consumers are protected from the threats related to personal information tumbling into erroneous hands as a consequence of data breaks, and industries that handle personal information are to do so in accordance with POPI. This piece of legislation will expressively affect insurers, insurance agents and loss adjusters. POPI applies to anybody who possesses any kind of chronicles involving the personal information of anybody else. All responsible parties will be faced with issues including: ● That POPI will influence technology, procedures and the means in which personnel process personal information. ● That personal information may only be used for the reasons approved by clienteles and personnel. ● That advertising by means of uninvited e-mails is banned. Therefore, companies and employers need to implement opt-in and opt-out policies. ● That personal information may only be reserved for as long as is required. ● That organisations should not gather more personal information than is required. ● That processing of distinct personal information is banned.

“I want my government to do something about my privacy – I don’t want to just do it on my own” –Evgeny Morozov

The importance of POPI POPI places a set of conditions to ensure an individual’s (“data subject’s”) information is lawfully processed, which protects the data subject’s money from being stolen and their identity from being stolen, and safeguards the data subject’s essential right to privacy. These conditions are discussed as follows: ● Consent from the data subject is required in order to ensure when and how the responsible party shares the data subject’s information. This places processing

12

SOUTH AFRICAN PROPERTY REVIEW

limitations, so that when the responsible party gathers information from the data subject, he or she must ensure that such information is collected straight from the data subject with his/her consent, and warrant that the information the responsible party collects is legitimate, passable and pertinent. The nature and degree of information the responsible party chooses to share must be valid. The collection must have a precise purpose: i.e. there must be a certain rationale for the collection of the data subject’s information. Transparency and accountability on how information is used limits the purpose, and notifies the data subject if or when the information is compromised. Such accountability ensures that the responsible party takes accountability in ensuring obedience to POPI. Access to the data subject’s information must have passable procedures and panels in place to trail access and to prevent unauthorised people from retrieving a subject’s data. Furthermore, judicious requirements need to be in place to ensure that data subjects are informed of any data that a responsible party aims to share with any third parties. Data subjects also have a right to have access to their own information if they request it from the responsible party. Data subjects have a right to request the details of the parties who have access to

their personal information, and the right to request that the responsible party destroys their information, whereby the responsible party has no authority to keep their information or dispense it to third parties. ● Accuracy and integrity of the data subject’s information must be captured correctly and, when collected, the responsible party is accountable to continue it. This will sustain respectable business practice when dealing with data subjects. ● Safeguard measures and controls need to be in place to protect the data subject’s personal information from theft or being compromised. Safety instruments ought to be created and upheld to guard the data subject’s personal information against dangers such as forfeiture, illegal access and obliteration. ● Additional dispensation must be wellmatched with the originally gathered information to guard the genuine interest of data subjects.

Understanding POPI To allow for a more detailed understanding of POPI, certain of its points have been highlighted below.

The rights of data subjects All data subjects have the right to access their own personal information, and to entail their personal information to be amended or destroyed, or to refuse such information from being administered.

1 SECTION 11: Personal information can only be administered: ● With the permission of the data subject; ● If it is essential for the decision or presentation of an agreement to which the data subject is a party to; ● If it is required by law; ● If it guards an authentic interest of the data subject; or


legal opinion ● If it is essential to follow the data subject’s lawful benefits or the interest of a third party to whom the information is provided.

2 SECTION 13 AND 14: A responsible party has to gather personal information straight from the data subject, except if: ● This information is confined in some free public chronicle or has intentionally been made available by the data subject; ● The information can be gathered from an alternative foundation that does not bias the subject; ● It is essential for some public purpose, or to guard the responsible party’s individual benefits; or ● Procurement of the information straight from the data subject would bias a legal determination or is not rationally possible.

● Who will be getting the information; ● That the data subject has access to the information and the right to remedy any particulars; ● That the data subject has the right to refuse the information from being administered; and ● That the subject has the right to lay a grievance to the Information Regulator. The details of the Information Regulator must essentially also be provided.

The types of “personal information” for data subjects could include:

3 SECTION 18: Certain requirements need to be met when information is being collected. The requirements are that the data subjects must be made aware of:

● Identity and/or passport number ● Date of birth and age ● Phone number/s (including mobile phone numbers) ● Email address/es ● Marital/relationship status and family relations ● Online/instant messaging identifiers ● Physical address ● Gender, race and ethnic origin ● Photos, voice recordings, video footage (also CCTV), biometric data ● Criminal record ● Private correspondence ● Religious or philosophical beliefs, including personal and political opinions ● Employment history and salary information ● Financial information ● Education information ● Physical- and mental-health information including medical history, blood type, details about your sex life ● Membership to organisations/unions

● The information that is being gathered from the responsible party, and if the information is not being gathered from the responsible party, it is essential that the data subject be alerted about where the information was collected; ● The designation and address of the individual or organisation gathering the information; ● The reason for the gathering of information; ● Whether the provision of the information by the data subject is with consent or compulsory; ● The penalties of failure to deliver the information; ● Whether the information is being gathered in accordance with any regulation; ● Whether it is intended for the information to leave the country, and what level of guard will be provided for the information after it has departed from South Africa;

Privacy is one of the biggest problems in the electronic age. As US politician Earl Warren once said, “The fantastic advances in the field of electronic communication constitute a greater danger to the privacy of the individual.” Section 69 of POPI places significant limitations on the circumstances in which direct marketing is conducted by means of unwelcome communications, except if the data subject has consented thereto. An existing relationship between the responsible party and the data subject does not result in the consequence of a liberty to make frequent communications without consent from the data subject. Examples of such direct marketing by means of electronic communication include emails, SMSs and programmed calling machineries. A subject can only be approached once to obtain such consent.

It should be noted that the data subject’s personal information should be collected for a precise, clearly definite and legal reason, and the data subject must be informed of the reason for the collection of the information. Such information collected must be used only for the purpose it was required. Should the information no longer be required, it must be disposed of, unless the responsible party needs to retain it or has consented to retain it.

POPI and direct marketing

If the data subject is a consumer, his or her details must have been obtained in the context of the sale of the product or service, where the responsible party who initially collected the information has similar services or products. The consumer should have been informed and should consent each time electronic communication is sent. Any person sending out electronic communication must reveal the identity of the promoter and deliver an address to which the customer can direct a request to unsubscribe from receiving such communication. In cases where the data subject is in any type of directory, he or she must be informed of the reason for the existence of the directory and about any forthcoming usage to which the directory might potentially be put. It is essential that such a data subject has the chance to refuse the use of the personal information in such a manner. As a result of electronic communication, it is easy to send personal information outside South Africa. In terms of Section 71 and Section 72 of POPI, such personal information sent from South Africa to foreign countries is prohibited unless: ● The individual getting the information is subject to comparable regulations; ● The data subject has consented to the forwarding of his or her information; ● Such forwarding of information is part of the performance of a contract which the data subject is a party to; or ● Forwarding of personal information is for the benefit of the data subject and it is not judiciously feasible to find their permission, and that such permission would be possible to be prearranged. The topic of direct marketing and influence of POPI is vast and endless, so only four elements are discussed below.

1 Purchasing or buying a directory with personal information With databases being created over the years, many responsible parties already have a directory listing their data subjects’ personal information. This is more commonly found with brokers and agents. It is possible to purchase and sell personal information, but this can only be done with consent of the data subjects. POPI ensures that the data subjects always maintain access, power and control over their personal information.

2 Consent not required in certain instances when collecting information Personal information can be collected from various sources, such as public directors, people who send an email, by registration SOUTH AFRICAN PROPERTY REVIEW

13


legal opinion on a website, subscribing to offers or alerts, downloading an app or when entering a competition. For such collection of information, no person is required to give consent. However, if you plan to send them electronic communication for the purposes of direct marketing, you need to get their consent to use their information in that way. But you don’t need consent to collect it. Although no consent is required, it is essential the collection of personal information is for a specific purpose related to where you obtained the information. Should the person state upon receipt of your marketing to opt out of receiving such communication, then no further direct marketing is allowed.

3 What to place on your direct marketing communications POPI requires parties to identify themselves when attending to direct marketing communication. In all communication for direct marketing, the direct marketer needs to provide their full company name, contact details for the recipient to opt out, company registration number and, if they are a registered credit provider, their number.

4 National opt-out register The opt-out register is a place where people have registered, expressly stating that they do not want to receive direct marketing. Where individuals have registered on the opt-out register, no direct marketing may be sent to those individuals. It is important that, prior to attending to any direct marketing, the marketers check any register where people refused any direct marketing, including their own.

How to handle the gathering of personal information In terms of Section 19 of POPI, it is important that the responsible party thwarts illegitimate access to or illegitimate processing of personal information, as well as takes steps to prevent the loss, damage and unauthorised destruction of the personal information. One has to identify the risks and establish mechanisms to avoid them. According to Chinese politician Lu Wei, “The Internet is a worldwide platform for sharing information. It is a community of common interests. No country is immune to such global challenges as cybercrime, hacking and invasion of privacy.” Because of ransomware dispersion and infected devices, offenders will keep reinventing ways to exploit weaknesses and find ways to attack,

14

SOUTH AFRICAN PROPERTY REVIEW

breach and steal. Such risks, therefore, need to be continuously evaluated, and mechanisms need to updated to defend against such risks. In terms of Section 20 of POPI, all personnel involved in the gathering of personal information and having access thereto on behalf of an employer is required to enter into a written contract with their employer, binding them to upholding the truthfulness and privacy of the personal information and to implement the precautions against recognised dangers. In terms of Section 21(2) of POPI, should such an employee become aware that personal information of clients has been jeopardised, they are to inform the employer. It is advised that all companies or responsible parties collecting personal information should implement necessary steps or take various steps to comply with POPI. Such steps could, for example, include: ● Appointing an information officer ● Creating a personal information inventory ● Drafting a privacy policy and ensuring organisational policy reviews ● Privacy training and awareness ● Creating mechanisms to avoid risk in data in transit, data portability, privacy by design, explicit consent, and breach notification ● Advancing alertness among all personnel by implementing incident management plans ● Revising agreements with operatives ● Deploying governance and data privacy target operating models for sustainable data privacy compliance ● Being accountable for data breaks to the supervisor and data subjects ● Ascertaining whether they are legally entitled to disperse personal information to other countries ● Only disclosing personal information when they are legally able to ● Restricting data exports ● Ensuring that all who handle the personal information have the right to access that personal information.

Non-compliance: offences, penalties and administrative fines Unfamiliarity cannot be used as a defence, therefore POPI should not be taken casually. The only means of enforcing protection of personal information is to place penalties and fines that will hopefully discourage the dispersal of unsolicited personal information. In terms of Sections 100 to 106 of POPI, instances where parties could be found guilty of an offence include:

● Any person who hinders, obstructs or unlawfully influences the Regulator when complaints are lodged; ● A responsible party that fails to obey an enforcement notice; ● Offences by witnesses; ● Unlawful acts by a responsible party in connection with account numbers; and ● Unlawful acts by third parties in connection with account numbers. In terms of Section 107 of POPI, there are significant consequences for serious offences in non-compliance, including: ● Reputational damage ● Losing customers and employees, and failing to attract new ones ● Paying out millions in damages, in civil action, to data subjects to compensate them for the damage they have suffered ● Fines of up to R10-million, or up to 10 years in jail for committing an offence. For the less serious offences, the maximum penalty would be a fine or imprisonment for a period not exceeding 12 months, or both a fine and imprisonment.

Legislation linked with POPI There are various other laws that also protect personal information. The key ones are: ● Consumer Protection Act (CPA) ● National Credit Act (NCA) ● Regulation of Interception of Communications Act (RICA) ● Promotion of Access to Information Act (PAIA) If there is a conflict between POPI and another law, POPI prevails. However, if another law provides a superior defence to personal information, the other law will triumph.

Conclusion No matter how you look at it, POPI will come into play in everyone’s life. Compliance will have a bearing on the procedures, technology and methods in which personnel and organisations use and process personal information. It is imperative for organisations that process personal information of personnel, clients or other juristic persons to create privacy and safety ingenuities in order to be in line with POPI. POPI is moving towards the protection of our personal information. As technology changes, so will the access to our information. Nevertheless, in the words of former Polish president Lech Wałęsa, “I believe that any violation of privacy is nothing good.”


4

SOUTH AFRICAN PROPERTY REVIEW


education

SAPOA and the University of Johannesburg honour the Property Management Class of 2016 The certification ceremony for the two-week block session, held in partnership with the University of Johannesburg, took place in late September in Johannesburg. The course is the result of an ongoing collaborative effort between SAPOA and the university

The class of 2016 – delegates who completed the two-week block session, in partnership with the University of Johannesburg: FROM LEFT, STANDING Malekutu Matlola, Haseena Alli, Nur-ud-din Tolker, Niel Oberholzer, Jan van Niekerk Celliers, Kele Nomini, Sello Mashiane, Thobile Dlamini, SAPOA’s Mafonti Morobi and Rofhiwa Tshivhase of the University of Johannesburg SITTING Andre Kruger, Programme Manager: Department of Property Valuation & Management at UJ, and Marno Booyens, Property Management Programme Course Facilitator

A

ccording to SAPOA’s Education Officer Mafonti Morobi, one of SAPOA’s key driving forces is to contribute towards the advancement of its members’ commercial property interests within the property industry. “As a professional association, the educational efforts of SAPOA are aimed at increasing the knowledge and skills of the property industry among employees in the industry, and ensuring that the content of the programmes, workshops and other

16

SOUTH AFRICAN PROPERTY REVIEW

educational interventions is aligned with industry needs, thus raising the employability and competence of the professionals in the industry,” she says. Niel Oberholzer, Head of the Department of Finance & Investment at the University of Johannesburg, had only congratulatory words for the certificate recipients. “Today is a celebration of having completed the programme,” he said. “It is the final result of all your hard work. Look back at this day

with pride, and take time to reflect upon your journey – because it’s a very rewarding one. Celebrate your hard work and dedication, and be very proud of what you have accomplished. Congratulations on your achievement.” He also thanked SAPOA for its support, and for partnering with the university. “We hope that we can build on this and make it a success going forward – and that we can do more with the industry because I think that’s very important,” he said.


education

Increasing knowledge of the property industry Property Sector Charter Council hosts its annual Career & Construction Week

Portia Tau-Sekati of the PSCC

A

lready in its fifth year, the Career & Construction Week aims to promote property and construction as a career at previously disadvantaged schools. It attracts more than 300 learners in Gauteng alone. Portia Tau-Sekati, Chief Executive Officer of the Property Sector Charter Council (PSCC), says the programme is critical. “The mandate of the PSCC is to make transformation of the property and construction sector sustainable,” she says. “Without such a programme, most previously disadvantaged individuals would not have any knowledge or understanding of the various careers within the industry.” The programme has been running since 2012, and was originally a Property Career Week. “Three years ago, we partnered with the Construction Charter, and we now run it as Property & Construction Career Week,” says Tau-Sekati. The model was initially piloted in Gauteng for three years, before moving to other provinces. “In 2015, we included KwaZulu-Natal and the Western Cape, and this year we extended our reach to the Eastern Cape, the Free State and North West. With the inclusion of the other provinces, we reached more than 900 learners. We are proud of our efforts in creating a platform for learners to engage and interact with the professionals in the property and the construction sector.”

When asked how the real estate industry can partner with the PSCC for the annual Career & Construction Week, Tau-Sekati said she welcomes any support from the industry in the sponsorship of venues, transport, food, exhibition tables, site visits, goodie bags and mentorship platforms for the learners. “If anyone is interested in being a part of this exciting and most critical development programme, they can call the Property Charter office on 011 880 9918 or e-mail manager@propertycharter.co.za,” she says. “In return, under the Property Sector Code, companies can claim the market cost of such support under the socioeconomic development section, which is part of the Property Sector Code.” Property organisations that participated in the Gauteng leg of the career week included the Department of Public Works, the University of Johannesburg, the University of the Witwatersrand, the Estate Agency Affairs Board (EAAB), SAPOA, the South African Institute of Black Property Practitioners (SAIBPP), the South African Facilities Management Association (SAFMA), Women’s Property Network (WPN) and the Council for the Built Environment (CBE).

Joseph Komane of CBE

Pumi Lukhele of WPN

Margie Campbell of the EAAB

SAPOA Bursary & Career Specialist, Moeketsi Moshata

Xolani Zuma of SAFMA

Vuyiswa Mutshekwane of SAIBPP

SOUTH AFRICAN PROPERTY REVIEW

17


planning & development

eThekwini: Integrated

Development Plan 2017-2022

SAPOA participates in the city’s business planning process

S

In the preparation of eThekwini’s IDP 2017APOA has, for a number of years, recognised In terms of the Municipal the importance of participating in the 2022, the city identified a number of challenges, Systems Act (Act No. 32 of business planning process of eThekwini with including slow economic growth, poor service a view to building a meaningful strategic and delivery, poverty and inequality, environment 2000), every municipality operational relationship. Through SAPOA’s decay, corruption, inadequate police visibility, in the development and social disconnect and informal economy. is required to prepare an participation preparation of the City of Johannesburg IDP, Integrated Development a greater understanding has been realised Spatial Development Framework of the complexities faced in developing SAPOA was an active participant in the review Plan I P his is a fi e and managing a major urban complex such and preparation of the SDF 2040. However, there are a number of issues that we believe year business plan as Johannesburg. In terms of the Municipal Systems Act (Act still need to be addressed through the IDP. for the municipality to No. 32 of 2000), every municipality is required These include: to prepare an IDP. This is a five-year business plan ● Building capacity to manage and address developmental for the municipality to address developmental implement the policies and interventions priorities and objectives through economic and relating to spatial development and priorities and objectives social initiatives, and plan capital investment land-use management in the city; through economic and in physical and social infrastructure. It includes ● Recognition by the city that its assets a vision for long-term development based include the citizens, investors and social initiatives, and on an assessment of the existing levels of developers and their diversity in development, developmental and operational plan capital investment strategies, and a financial plan with capital and The particular focus in physical and social operational budgets. Disaster management of SAPOA’s members plans are prepared to address the identified infrastructure. It includes risks, and key performance indicators and to the strategic and performance targets are set to measure and a vision for long-term monitor achievements. working partnership and collaboration development based Establishment of a with the city would on an assessment collaborative strategic and be to contribute to the of the existing levels working relationship with the city SAPOA believes the focus should be on making of development, the city a great place for all the citizens in the sustainable and equitable spatial, economic, social realisation of a resilient, sustainable, liveable, developmental and safe and secure city environment. and environmental The particular focus of SAPOA’s members operational strategies, transformation and to the strategic and working partnership and a financial plan and collaboration with the city would be to development of the city contribute to the sustainable and equitable with capital and spatial, economic, social and environmental through their interests operational budgets transformation and development of the city in the commercial, through their interests in the commercial, industrial and residential industrial and residential property sectors, in terms of investment, development, ownership property sectors, in and management. terms of investment, A particularly important component is the Spatial Development Framework (SDF), development, ownership which sets out the city’s plans and priorities and management to manage urban growth and development.

18

SOUTH AFRICAN PROPERTY REVIEW


planning & development addressing the wide variety of spatial, economic, social and environmental transformational opportunities; ● Ensuring adequate resources and management to bring about innovation and investment within priority transformation areas; ● The practical and balanced implementation of integrated transportation systems, and ensuring adequate resources and infrastructure for all modes of transportation; and ● The management of urban sprawl, and the containment of public and private development expansion of urban areas into open space and environmentally sensitive areas. SAPOA recognises that national and provincial policies and strategies have to be taken into account and considered as part of an IDP for the city. However, of concern is the imposition of spatial and infrastructural developmental imperatives and priorities by the Gauteng province on the city. These would appear not to be in alignment with a number of the city’s strategies and priorities, particularly with respect to the SDF. This dissonance between different spheres of government regarding developmental priorities establishes uncertainty regarding the long-term investment and development of property. To create an enabling environment that will attract and retain investment and development for the city, there is a need for greater integration of strategies and policies between the different spheres of government through intergovernmental forums and working teams, with the involvement of private sector investors and developers. A recent case study of South African Transit Oriented Development (TOD) established a framework of guidelines to improve the effectiveness of TOD implementation, which included: ● Integration of urban-form and public transport; ● Changing ridership patterns; ● The need for appropriate precinct plans; ● Private development facilitation; ● Releasing strategic public owned land for TOD institutional structure and procedures; ● Capacity building and awareness creation; ● Cooperation between transit operators, municipalities and landowners; and ● Urban management. SAPOA believes these guidelines should be incorporated into the IDP for the promotion and growth of TODs through the city, to bring

The imperatives for South African cities and towns to give greater attention to urban management are intensifying in the face of increased migration from rural areas. Among the factors that need to be achieved in order to ensure that cities and towns manage the in are attention to spatial equities and effective and affordable public transport about spatial transformation and integration through investment/development to improve economic growth. This also requires a collective and collaborative approach involving a wide range of role-players and partners to achieve mutually beneficial and agreed outcomes. The imperatives for South African cities and towns to give greater attention to urban management are intensifying in the face of increased migration from rural areas. Among the factors that need to be achieved in order to ensure that cities and towns manage the influx are attention to spatial equities; effective and affordable public transport; the creation and maintenance of safe and attractive public spaces; and stimulation and growth of the economy. It is the last-noted that will be accompanied by job creation – but all the factors will contribute to social cohesion and more liveable urban spaces. The key to urban management is dependent on sound planning supported by precinct management, where focused attention may be given to the conditions within a demarcated area. In these areas, property owners are critical stakeholders, for it is they who support the municipality’s rates revenue. The value of their properties is directly proportional to the rates revenue. Unfortunately, South African cities are experiencing urban decay in some areas, with the consequence that both value and revenue are declining. It is clear that the provision of services to urban areas cannot be sustained at equitable and optimal levels owing to the strained financial capacity of municipalities. It is for this reason that mechanisms need to be found

for the private sector – and property owners in particular – to invest in urban management, because it is in their interest to do so. Such a mechanism exists in a partnership model that’s already being utilised in South Africa and other countries around the world. Precinct management is a sub-component of broader urban management, largely driven through partnership activity between the private and public sector. In “The Art of Precinct Management: A Municipal Guide”, the National Treasury stated that precinct management “is focused on the post-implementation management of public spaces knitting the public, private and community facilities and properties together”. Considering the municipality’s commitment to area-based management and the inner city regeneration strategy, the IDP will contain reference to urban and precinct management. It is the view of SAPOA that the role and importance of private sector investment in the inner city, and other areas within the city (via additional rates payments following the establishment of urban improvement precincts), should be encouraged as being complementary to the municipality’s strategic and operational intentions. The IDP should also reflect the desirability of a strong and constructive partnership between the municipality and SAPOA, to ensure that the private sector appetite for investment in the economic and social development of precincts is whetted, and that UIPs are developed in areas that constitute important economic development nodes and are considered strategic (and therefore desirable) by the Municipality.

The IDP should also re ect the desirability of a strong and constructive partnership between the municipality and SAPOA, to ensure that the private sector appetite for investment in the economic and social development of precincts is whetted, and that UIPs are developed in areas that constitute important economic development nodes and are considered strategic (and therefore desirable) by the municipality SOUTH AFRICAN PROPERTY REVIEW

19


renewable energy

Green on the horizon We take a look at some of the technology around renewable energy, as well as what is happening in this area internationally Compiled by Mark Pettipher

W

hile doing research for this article, I came across a number of interesting statistics. For example, in June this year, China launched the world’s largest floating solar farm: the 40MW power plant has 160 000 panels resting on a lake that resulted from the collapse of a coal mine in central Anhui province. In the same month, China Merchants New Energy Group completed the first phase of a 100-hectare solar farm in the shape of a giant panda – a 50MW plant that began delivering power to the grid in northwestern China. A second panda is planned to come online by the end of the year. It is estimated the Panda Power Plant will be able to produce 3,2-billion kWh of solar energy in 25 years. Interestingly, China is also reportedly producing two-thirds of the world’s solar panels and, according to Bloomberg News, it has been the world’s largest investor in clean energy since 2012, spending US$88-billion on wind and solar power in 2016. Over in the Scotland, the world’s first floating wind farm – Hywind Scotland – began delivering electricity to the Scottish grid in September. The 30MW wind farm, operated by Statoil in partnership with Masdar and situated about 25 kilometres offshore, provides power for approximately 20 000 households. In a statement at the opening event, Scottish First Minister Nicola Sturgeon said, “This marks an exciting development for renewable energy in Scotland. Our support for floating offshore wind is testament to this government’s commitment to the development of this technology. Coupled with Statoil’s Battery Storage Project, Batwind, this puts us firmly at the forefront of this global race, and positions Scotland as a world centre for energy innovation.” Masdar, a renewable-energy company in the United Arab Emirates, is a leading developer and operator of utility-scale, grid-tied projects as well as small-scale applications that provide energy access to communities that are off-grid. Since 2006, Masdar has invested in renewable energy projects with a combined value of US$8,5billion – not only in the UAE, but also in

20

SOUTH AFRICAN PROPERTY REVIEW

Jordan, Mauritania, Egypt, Morocco, the UK, Serbia and Spain. The electricity-generating capacity of these projects (which are either fully developed or under development) is 2,7GW gross. “Hywind Scotland is showing that floating wind technology can be commercially viable wherever sea depths are too great for conventional fixed offshore wind power,” says Masdar Chief Executive Officer Mohamed Al Ramahi. “This opens up a number of new geographies, and we are already looking at future opportunities with our partners, building on our existing international portfolio in on-shore and off-shore wind energy, and solar power.” In the US, the Energy Information Administration (EIA) statistics tell us that in 2016, about 4,08-trillion kWh of electricity were generated at utility-scale facilities. About 65% of this electricity generation was from fossil fuels (coal, natural gas, petroleum, and other gases), about 20% was from nuclear energy, and about 15% was from renewable-energy sources. The EIA estimates that an additional 19-billion kWh (or about 0,02-trillion kWh) of electricity generation was from small-scale solar photovoltaic systems in 2016.

Major energy sources and percentage shares of US electricity generation at utility-scale facilities in 2016 ● ● ● ● ● ● ● ● ● ● ● ● ●

Natural gas: 33,8% Coal: 30,4% Nuclear: 19,7% Renewables (total): 14,9% Hydropower: 6,5% Wind: 5,6% Biomass: 1,5% Solar: 0,9% Geothermal: 0,4% Petroleum: 0,6% Other gases: 0,3% Other non-renewable sources: 0,3% Pumped storage hydroelectricity: -0,2%

Source: Eia.gov/tools/faqs/jaq.php?id=427&t=3

According to an article published in National Geographic magazine, the US set a new renewable energy milestone in March this year: for the first time, wind and solar electricity generation accounted for 10% of the US electricity generation. (Eight percent came from wind, and two percent from solar). National Geographic also pointed out that while fossil fuels still dominate overall energy production in the US, solar and wind production are on a growth trajectory (especially in China, India and some other developing countries, as well as in parts of Europe). But 2015 was the first record-setting year in which more new infrastructure for renewable energy was installed than new infrastructure for non-renewable energy. In November 2016, the small Pacific island of Ta’u shifted its reliance from diesel energy to solar, thanks to a solar project installed by Solar City, a California company that was recently purchased by Elon Musk’s Tesla. The US$8-million project was funded by the US Department of the Interior and the American Samoa Power Authority. Located on three hectares of land on the northern coast of the island, the system includes 5 328 solar panels that generate 1,410MW of electricity. The energy is stored in 60 Tesla Powerpacks – large batteries that allow Ta’u to stay powered for up to three days without any sunlight. The system was built with the capability of withstanding Category 5 hurricane winds. The solar project on Ta’u may also be helping to inform conversations that are taking place on other islands around the world. In a similar vein, the Greek island of Tilos announced in June of this year that it was the first Mediterranean island to get its energy solely from wind and solar panels. Tesla Chief Executive Officer Elon Musk says renewable energy is inevitable. “By definition, we must move to renewable energy – because the alternative is that the world simply runs out of energy,” he says. “The question is, how fast should we move? What pace should we go at? And the answer is, we should go as fast as we can.


renewable energy Closer to home, in a recent utility-scale renewable energy report by GreenCape, (www. greencape.co.za), we are informed that “South Africa’s green economy, partly driven by the country’s utility-scale Renewable Energy Independent Power Production Procurement Programme IPPPP re ects these trends and is even leading the way in some areas We should get there before we do the environmental damage, and not afterwards.” Of all the options for renewable energy, Musk points to solar as by far the most abundant. He notes that the globe, without solar energy, “would be a frozen ice ball at about four degrees above absolute zero”.

In South Africa Closer to home, in a recent utility-scale renewable energy report by GreenCape, (www.greencape.co.za), we are informed that “South Africa’s green economy, partly driven by the country’s utility-scale Renewable Energy Independent Power Production Procurement Programme (REIPPPP), reflects these trends and is even leading the way in some areas. According to Moody’s, South Africa had the fastestgrowing green economy in the world in 2015.” REIPPPP, a key factor in this growth, is in its sixth year and has achieved remarkable successes. To date, the programme has: ● Procured more than 6 300MWp of RE generation capacity, of which more than 2 500MWp has been connected and is feeding electricity into the national grid. ● Selected 102 preferred bidders to develop utility-scale projects across the country, with projects in every province across South Africa. ● Received a ministerial determination to procure a further 6 300MWp of generation capacity. This is the second time capacity to the programme has been doubled

– a testament to its success. ● Attracted more than R195-billion of investment into South Africa, with more than 25% from foreign investors. In doing so, the programme (through local content requirements) has successfully stimulated the development of a local RE technology components manufacturing sector. Given the additional 6 300MWp still to be procured, this sector is set to grow further. ● Achieved significant technology price reductions, with South Africa boasting some of the world’s lowest clean energy. Beyond these successes, the programme – and consequently, the utility-scale RE industry – is well positioned to continue contributing to South Africa’s national development as enshrined in the government’s strategic infrastructure projects and the National Development Plan. The programme’s socioeconomic development and enterprise development mechanisms give successful project developers a unique opportunity to be competitive in their bidding strategy, while contributing meaningfully to the local and national economy. Project developers have fully embraced the socioeconomic development and enterprise development component of the REIPPPP, resulting in numerous inspiring contributions to priority areas on the government’s developmental agenda. Among other areas, these contributions span community development, local economic development, skills development, as well as early childhood development. Recent uncertainty involving stateowned utility Eskom highlights the need for reform in an evolving energy sector, where electricity generation, transmission and distribution systems require unbundling. The interest from local municipalities in procuring RE generation capacity from independent power producers contributes further to the shift in the structure of the country’s power sector. Evidently, the South African government is also committed to ensuring that the country’s model for public-private power procurement, widely rated as world-class, continues. For instance, during the impasse with Eskom, the Presidency, the Deputy President, the Minister of Energy and the Finance Minister all expressed explicit support for RE procurement. This was finally resolved when the President made

a directive during the 2017 State of the Nation Address for Eskom to sign all outstanding PPAs. Just a week later, Eskom stated that those agreements would in fact be signed. Government policy also continues to strongly favour and support the inclusion of RE resources, as demonstrated by the release in 2016 of the Integrated Resource Plan update. Although not yet finalised, the updated Integrated Resource Plan provides continued policy certainty, while the 6 300MWp that has been allocated for further RE procurement provides an accurate estimate of the potential market size. Without doubt, the changes brought about by the finalisation of the Integrated Resource Plan and the resolution of outstanding issues involving Eskom will create numerous opportunities for investors and businesses in the utility and embedded generation-scale RE sector.

Policies and regulation in the country South Africa’s economic growth is largely guided by several key policies. Of these, the policies highlighted below relate directly to procurement within the RE sector via the economic development component of the REIPPPP. The design of the REIPPPP takes into account all these policies, making it a highly strategic infrastructure and development programme. National Development Plan (NDP): Supports procurement of at least 20GW of RE by 2030 in its outline of the country’s development path.

South Africa’s economic growth is largely guided by several key policies. Of these, the policies highlighted below relate directly to procurement within the RE sector via the economic development component of the REIPPPP. The design of the REIPPPP takes into account all these policies, making it a highly strategic infrastructure and development programme SOUTH AFRICAN PROPERTY REVIEW

21


renewable energy

With the continuing, sharp decline in technology costs, Solar P offers an attractive option for private building owners and is, increasingly, expected to make a marked contribution to RE capacity in the country. A Solar P baseline study99 completed in 2013 as part of the South African Solar P technology roadmap, considered current trends and different penetration rates it predicted the combined

New Growth Path Sets targets creating Sector distribution of registered Solar PV installations jobs, and identifies priority areas, with infrastructure development named as key to the success of this vision. Residential 4% Green Economy Accord Incorporated into the New Growth Path, this 12% Agricultural accord between government, labour and business seeks to Industrial shift the country’s economy towards anufacturing sustainable development, green job 13% ining Co ercial 57% creation and industrial development. Local Procurement Accord As the economy grows and the country 14% Unspecified Other industrialises, this accord sets an aspirational target of 75% of all products used in the country to The ma ority of recorded installations have been in Gauteng and the Western ape. Surprisingly, be manufactured locally. This is considering the solar radiation statistics country, wa ulu- atal has recorded the third highest Sector distribution of registered Solar for P the installations particularly evident in the REIPPPP’s Figure 46: installed capacity. R 4 000share 000 of recorded small-scale (rooftop) solar PV Provincial local content rules. IEP Outlines the general energy Li popo R 3 500 000 plan for the country. The IEP looks 99 Maphelele, T., Standord, R., orth oover est i, B. May 2013. Solar P baseline report 2 888 100 Unverified industry pro ect database: http://pqrs.co. a/s-a-solar-pv-list-2/as published 21 June 2015 pu alanga into energy security, access to energy, Installed capacity (kW) 2 261 R 3 000 000 Installed capacity (kW) 6.59% reducing cost of energy supply, energy 1 144 Percentage share Installed capacity (kW) 5.16% efficiency, localisation and sustainability Percentage share R 2 500 000 2.61% in all energy matters. Percentage share Integrated Resource Plan Specifically R 2 000 000 orthern Cape outlines the planning,84 sourcing and of Renewable Energy in South Africa auteng | State 1 157 R 1 500capacity 000 quantities of electricity generation Installed (kW) 13 267 Installed capacity (kW) 2.64% sources contributing to the county’s Percentage share 30.28% R 1 000 000 generation mix. Percentage share RE White Paper Determines that R 500 000 a significant and equitable level K a ulu atal of national resources should be R0 estern Cape 3 263 invested in RE, while also setting Installed capacity (kW) 11 736 2017 2021 2025 2029 2033 2037 2013 targets for RE generation capacity. 7.45% Installed capacity (kW)

Government departments involved in the energy and electricity sector

Percentage share

26.78%

FigurePercentage 52: ommunity share trusts cash ow pro ection Eastern Cape

605

Installed capacity (kW)

ree State 1 331

Installed capacity (kW)

are being investigated for subsequent bid windows that will Different government departments are pportunities and/or alternate vehicles 1.83% 3.04% enable a more even distribution of community trust cash ow Percentage and will realise Percentage share share community benefits involved in various capacities in executing Indicated as national sooner. or unspecified the policies listed. The most prominent departments are listed below, with a brief 1 331 Total Installed capacity (kW) summary of their interaction with the REIPPPP. 43 821 Installed capacity (kW) 3.04% In est ent by technology National Treasury Ensuring value for money, Percentage share 100.00% Percentage share affordability of electricity supply and providing Wind, Solar P and SP have attracted the most significant share of the investment across all bid Figure 47: Provincial share of recorded small-scale (rooftop) Solar P sovereign guarantees for the signed PPAs. windows (see Figure 53). Department of Environmental Affairs Relative share of investment Ensuring environmental custodianship and assessment of environmental impact studies The trend is likely to accelerate with streamlined regulatory processes and greater clarity regarding as well as ensuring appropriate land use. tariff structures (resolution of uncertainty in this environment has already been prioritised, refer to Figure 15 on page 38). Department of Trade and Industry Responsible for ensuring industrialisation The Finance Minister, in his Budget Speech, announced a financial incentive in the ind February Solar 2015 V CS Bio ass S all hydro Landfill gas through the REIPPPP’s economic form of an accelerated depreciation for Solar P RE installations. The announcement reinforced development component, especially R billions commitment to this initiative and the promotion of energy efficiency and lower Government 73.4 62.4 53.3 2.3 1.0 0.3 invested local content; as well as black economic greenhouse gas emissions. empowerment and the development Percentage share of 38% 32% 28% 1% 1% 0% of small businesses. investment Department of Public Enterprises (MW) 3 357 2 292 600 42 19 18 an untapped resource Shareholder in Eskom, the sole power Bioenergyapacity off-taker.

22

ompared with the market gains of RE technologies in general, development of Bioenergy101 solutions Figure 53: Relative share of investment has SOUTH AFRICAN PROPERTY REVIEW been slow, despite the important initial contribution to RE in the country, as well as the significant market potential and contribution expected by the RE White Paper, 2003. pportunities to unlock the country s bioenergy potential are therefore under development.


windows. Foreign equity in the REIPPPP (BW 1 - 4) is R35 billion, equivalent to 56.5% of the total foreign direct investment (FDI) attracted into South Africa during 2014 (i.e. $8.2 billion)109,110. Foreign equity and financing combined (R53.2 billion) was 85.8% of FDI in 2014. This success is largely ascribed to the well-designed and transparent procurement process and an investment environment where key risks are mitigated by Government and transactions offer reasonable levels of profitability.

renewable energy

An analysis of the funding sources and shareholding (see Figure 50) demonstrates how diverse the investor interest is. Financing and investments (equity and debt), originate from a variety of countries across the globe, with Europe and the USA representing the largest sources of finance. The FDI analysis identified at least 19 different countries that have participated in providing financing and/or equity to A report published by the Department IPPs. of

Funding sources and shareholding Energy in 2015 tells us there is a growing contribution from solar PV distributed UK + Ireland Europe China Korea Japan generation applications. With a continuing + British Virgin Lenders Equity Equity Lenders sharp decline in technology costs, solar PV Islands R 10 592 899 029.32 R 1 014 940 461.22 R 89 619 466.83 R 127 601 579.06 Equity Total Total Equity offers an attractive option for private building Equity R 25 022 014 058.01 R 1 014 940 461.22 R 89 619 466.83 R 440 861 599.32 R 329 702 963.44 owners and is, increasingly, expected to Total Total Total R 35 614 913 087.33 R 568 463 178.38 R 329 702 963.44 make a marked contribution to RE capacity in the country. A solar PV baseline study completed in 2013 as part of the South African solar PV technology roadmap considered trends and different penetration rates. At the time, it predicted that the combined commercial, industrial and residential installations of rooftop PV in the country is likely to be between 3,5GW and 11,6GW by 2035. A voluntary database of small-scale, typically rooftop, solar PV installations in the country had, by May 2015, recorded 43,8MW capacity established since 2011. Since the first publication of the database in January 2015 with 19MW installed, the registered capacity has more than doubled. Among those listings that were specified, the majority of installations were recorded in the USA Africa Saudi Arabia India Unspecified commercial, agriculture, industrial and mining Lenders Lenders Lenders Equity Equity R 5 161 481 262.80 R 1 473 138 384.69 R 814 362 101.95 R 757 446 858.89 R 3 373 248 134.67 sectors. The majority of recorded installations Equity Equity Equity Total Total R 2 068 448 816.52 R 133 843 428.78 R 1 814 007 075.72 R 757 446 858.89 R 3 373 248 134.67 have been in Gauteng and the Western Cape. Total Total Total Surprisingly, considering the solar radiation R 7 229 930 079.32 R 1 606 981 813.47 R 2 628 369 177.67 statistics for the country, KwaZulu-Natal Lenders Equity Total recorded the third-highest installed capacity. R 18 169 482 357.81 R 35 044 132 863.41 R 53 213 615 221.22 The report further indicates which countries are investing in South Africa. realised at cost-effective prices while The REIPPPP had in 2015 attracted R53,2- The conclusion Figure 50: Funding sources and shareholding billion in foreign investment and financing. During the past decade, South Africa has accomplishing broad benefits to the Foreign equity in the REIPPPP was R35- achieved a momentous shift in the way it economy and the people of South Africa. The development approach in the billion, equivalent to 56,5% of the total thinks about and produces electricity. 109 South Africa Reserve Bank (SARB). 2015. Quarterly Bulletin. March 2015:45. Pretoria. SARB. 110 27 July 2015 exchange ratethe coal-dominated energy Historically, sector is continually refined to unlock foreign direct investment attracted into South Africa during 2014 (i.e. US$8,2- sector provided for inexpensive electricity, inclusive economic growth, development billion). Foreign equity and financing supporting an energy-intensive economy. and wealth creation within the country. combined (R53,2-billion) was 85,8% of But price escalations, severe electricity Towards this end, a comprehensive supply constraints and environmental enabling platform is being created in an foreign direct investment in 2014. 94 | State of Renewable Energy in South Africa This success is largely ascribed to a well- considerations have necessitated a radical effort to build a green economy skills development, designed and transparent procurement transformation. Renewable energy is a incorporating process, and an investment environment critical part of this transition towards a technology research and development and development, and where key risks are mitigated by the more diversified, cleaner energy system. infrastructure government and transactions offer reasonable With the introduction of the ground- encouraging local manufacturing and levels of profitability. An analysis of funding breaking REIPPPP in 2011, South Africa securing participation for South Africans sources and shareholding demonstrates emerged as a major hub for RE in the world. (individuals and businesses). This programme delivered a rapid In reviewing the progress made, it is how diverse the investor interest actually is. Financing and investments (equity and ramp-up in the development of RE also recognised that there are areas debt), originate from a variety of countries resources, growing the share of RE from requiring additional support to catalyse across the globe, with Europe and the US being negligible to four percent in just development and/or unlock the full representing the largest sources of finance. four years. This rate of growth is set to spectrum of potential benefits. Initiatives The foreign direct investment analysis continue, both as the procured portfolio such as biofuels, biogas, solar home identified at least 19 different countries that becomes fully operational and as newly systems and distributed RE generation will have participated in providing financing announced procurement rounds are rolled become important focus points in the out. In addition, the RE portfolio is being continuing green journey. and/or equity to IPPs.

1%

67%

2%

<1%

1%

14%

3%

5%

1%

6%

TOTAL

SOUTH AFRICAN PROPERTY REVIEW

23


water conservation

Water:

the nation’s most valuable asset As we head into summer, it’s worth remembering that we all need to take care of our water resources. In South Africa, no-one is exempt! Words Tshepo Tshabalala

T

alking to people in the know and trawling the various water-company websites, it is apparent that there are ways of saving wisely. Last month, our Off the Wall feature looked at how we can get water out of air. This article aims to look at our water resources and offer a few tips we can all use in our business to conserve this precious commodity. In water-stressed South Africa, concerns of a looming water crisis are under the spotlight. It has been stated that if the country continues at its present rate of consumption, we could run out of drinking water by 2025. At least 60% of the country’s water resources is used in farming irrigation. Alien invasive plants are said to use seven percent of South Africa’s potential drinking water. Over the next 20 years, demand for water in Gauteng is expected to increase by 30% – so urgent action is required by all role-players. Water neutrality is a process of installing water-savings projects and initiatives that will offset the amount water used by either a company or a person. The practice of water neutrality is urgent: less than three percent of the world’s water is fresh and drinkable, and of that 2,5% is frozen in glaciers.

24

SOUTH AFRICAN PROPERTY REVIEW

If we want to avert water-shedding in South Africa, we need to invest in water security now. Currently, more than 98% of South Africa’s available water supplies is allocated. With limited options left for new dams, everincreasing demand resulting from economic growth, and unfavourable climate-change predictions, we need to think innovatively about how we manage our water supplies. Water – whether it’s used for industrial processes, restrooms or cleaning and landscaping – is a large part of any business’s operating costs. But there are many ways to reduce water use while meeting all of your business needs. Consider implementing the following water-wise tips in your business, as recommended by Rand Water.

Educate your employees and customers All businesses can encourage their employees to conserve water by training them in watersaving techniques and providing incentives for those who develop new water-saving procedures. Raising staff awareness is one of the most cost-effective and sustainable ways to save water at your workplace. Simple ideas to help you include:

● Establishing an ideas box to encourage employees to suggest ways to save water; ● Incorporating water conservation policies and procedures into employee training programmes; ● Using communication tools such as bulletins, newsletters and emails to send ideas, announcements, progress reports and news of special achievements; ● Encouraging water conservation in the employee kitchen, locker rooms and restrooms using notices that are changed regularly; ● Communicating water-conservation plans and progress in staff meetings, and using visual tools such as charts and graphs to highlight savings. (Set attainable goals for water-use reductions, read water meters weekly to monitor success of your waterconservation efforts and let employees know how they’re doing); ● Providing incentives by linking water-conservation measures to staff performance reviews; ● Assigning an employee to determine and monitor the quantity and purpose of water use, and to identify water waste;


water conservation ● Using budgeted amounts of water when cleaning; and ● Encouraging the reporting of leaks, including those in ablutions. It is also important to let your customers know that water conservation is a priority to your business. Lead by example!

Think smaller Many small offices have the same capacity geyser as homes. But there is no showering or laundry to be done – only washing of dishes. You can save costs by installing a smaller geyser that’s better suited to your needs.

Have a water audit This will help you maximise your water-use efficiency. It also highlights where problems exist, and assists in fixing them and increasing your water savings. Keeping track of water used by checking the meter during periods of no flow will allow you to track possible leaks. Monthly water audits also allow for the tracking of water use in different seasons.

Fix leaks Businesses can save money (and water!) by monitoring and repairing leaky faucets, toilets and pipes. Leaks and drips can waste thousands of litres per year – a dripping tap can waste as much as 1kL of water per month! Regular maintenance will eliminate water waste and lower your bills.

Replace water-wasting equipment and fixtures

● Incorporate mulch and compost. Compost increases the soil’s nutrientand water-retaining capability. Mulch assists in reducing soil water loss; it also regulates soil temperature. ● Keep irrigation systems in good repair, and use appropriate sprinkler heads. ● Have your irrigation system linked to a weather station – or at the very least a rain sensor that shuts off the system when it rains. ● Ensure your irrigation system waters only greenery, not walls and pavements. ● Operate sprinkler systems before sunrise and after sunset, and avoid irrigating during windy conditions. If this is not possible, water before 10am and after 2pm in summer. ● Hire a landscape manager or service experienced in water-wise concepts. ● For any new or redesigned landscapes, ensure the contractor zones the garden into high-, medium- and low-water areas, allocating the plants accordingly and setting the irrigation system times to match these zones.

Engage top management

● Verify that your business is leak-free. Many businesses have hidden water leaks. ● Repair faulty faucets by replacing washers. ● Check toilet tanks for leaks. Check the toilets for worn-out, corroded or bent parts. These are easily replaced and relatively inexpensive. ● Have cool water on hand or store drinking water in the refrigerator to prevent staff from letting the tap run every time they want a cool glass of water. ● Install an instant water heater over the kitchen sink so you don’t have to let the water run while it heats up. This will reduce heating costs for the business and save potable water. ● Never install a water-to-air heat pump or air-conditioning system. Air-to-air models are just as efficient and do not waste water. ● Sweep materials from floors instead of washing whenever possible. ● Install water-saving devices to decrease consumption, such as toilet dams, flowreduction valves and faucet aerators. ● Use two-litres-per-minute flush valve kits in urinals, or install waterless urinals. ● Install efficient dishwashers.

With many interventions in business, unless there is support and buy-in from top management, programmes and interventions do not take off as they could. It is important that they support it with time and funds to make the necessary changes and benefit the organisation in the long run.

The important thing to remember is that everyone plays a role in water conservation. Monitoring water use is a priority – and making people more aware of water conservation at work will make them more aware of water conservation at home.

Install low-flow aerators on company faucets (taps) – you can cut faucet water consumption in half. This can significantly reduce your business’s consumption. Toilets and urinals account for about one-third of all water consumed in buildings, so install dual-flush toilets and water-efficient urinals. Use aircooled ice machines. Replace air conditioners and refrigeration units that are cooled by water with ones cooled by air.

Limpopo Gauteng

86.5% / 80.1%

North West

79.3% / 58.9%

70.9% / 47.3%

Mpumalanga

70.6% / 50.0%

Free State

74.7% / 52.9%

Design and maintain water-efficient landscaping Smaller businesses with small landscapes are often bigger water wasters than businesses with larger gardens, because they tend to over-water their gardens. ● Lawns require a deep watering once a week. Consider reducing lawn areas as they are high water users. ● Plant indigenous shrubs and plants that add colour and texture to the garden. Indigenous plants require less water than exotics.

More water-saving tips for corporates

KwaZulu-Natal

49.5% / 41.9%

Northern Cape

91.1% / 58.5%

Eastern Cape

55.0% / 64.2%

Western Cape

36.0% / 62.3%

Provincial water levels Current % / Last Years %

SOUTH AFRICAN PROPERTY REVIEW

25


Western Cape water plan

The City of Cape Town’s Critical Water Shortages Disaster Plan There are three phases to avoiding acute water shortages. The City of Cape Town is currently in Phase 1, with water rationing through extreme pressure reduction. If rationing and savings are not successful, we risk entering Phase 2 (which is a disaster phase), followed by Phase 3 – the extreme disaster phase during which the city would be incapable of drawing water from its surface dams Words Patricia de Lille, Executive Mayor of the City of Cape Town

Patricia de Lille, Executive Mayor of the City of Cape Town

A

s a result of climate change and reduced annual average rainfall seen this past winter, the City of Cape Town has adopted a scenario called the New Normal, where we are no longer only relying on rain water to fill our dams for our water supplies. The New Normal means that, as a permanentdrought region, we have to change our relationship with water as a scarce resource and augment our supply with alternative non-surface sources. As part of our regular updates on the drought crisis, these are the key aspects of the City of Cape Town’s Critical Water Shortages Disaster Plan. It essentially deals with the measures we are putting in place to avoid a time when water users do not have access to municipal drinking water. I want to assure residents that we will not allow a well-run city to run out of water. A responsible city plans for the impossible. Our outline plan to avoid critical water shortages is based on the here and now. As things stand now, if we all use the water left in our dams (which at the time of writing stands at 27,6% usable water) more sparingly, combined with other demand-management measures that are under way, we can stretch out the number of days of water we have left in our dams to beyond March 2018.

26

SOUTH AFRICAN PROPERTY REVIEW

If consumption is not reduced to the required levels of 500-million litres of collective usage per day, supply of municipal water would not be available by March 2018. The day or month of this happening is, however, not as important as what we do right now to avoid such a time. Currently, our collective water use remains dangerously high, with daily consumption at 618-million litres per day. We have done well to reduce our consumption – but there is still room for improvement. As part of our water demand measures, we are going after the approximately 55 000 households and people who are still abusing water, and show no regard for this crisis and the efforts of the many people who are using water sparingly. They are playing with our future. We are going after the excessive water users with a mass roll-out of the installation of water-management devices, which are being set at 350 litres per day per property. We are also monitoring the commercial sector, which must reduce its water use by 20% compared to a year ago. In terms of our Water Resilience Plan, which aims to augment supply with new schemes, we are expecting the first water to come online by the end of this year, if all goes according to plan. Other new sources will come online at various stages, and the yield of each source will rise incrementally. For instance, water from temporary landbased desalination plants in Monwabisi and Strandfontein is expected to come online by February 2018. Thereafter, from March 2018 onwards, additional desalination projects are expected to come online. In terms of ground-water extraction at the Atlantis and Silverstroom aquifers, additional water from these projects is expected from about January/February 2018 onwards. In fact, the city has already managed to increase the production capacity from the Atlantis aquifer as part of our Water Resilience Plan,

and we are continually looking at optimising operations in other areas. It is also expected that additional water through water reuse from our Zandvliet Wastewater Treatment Plant will be coming online from January/ February 2018. I have recently met with the Minister of Water and Sanitation Nomvula Mokonyane. The meeting was held to discuss water security and water licences for the new emergency schemes. In terms of our Critical Water Shortages Disaster Plan, as with all parts of our operations, we have a disaster plan for all eventualities – as every organisation does as part of risk management. In order to avoid disaster and build up reserves, we have been reducing pressure over the past few months. This has been intensified. We are now set to increase it further to force consumption down.


Western Cape water plan Phase 1: the current situation

Phase 2: the disaster phase

Our plan to avoid acute water shortages consists of three phases. The city has activated Phase 1, with water rationing through extreme pressure reduction (throttling). This is a critical stage, during which we must all do everything we can to stretch the water supply in our dams. As water rationing is intensified, some areas will be affected for short periods of time. This will lead to intermittent, localised, temporary water-supply disruptions. This process does not result in a complete shut-down of the water reticulation system, but it will severely limit available water supply in the system per day. We have therefore been asking water users to store up to five litres of municipal drinking water for essential usage. Please do not store excessive municipal water. Unfortunately, the city cannot provide definitive timetables of the disruptions because the water systems must be managed flexibly to prevent damage to critical infrastructure. Any zoned outages will likely occur during peak water-usage times in the mornings and evenings. We are asking people to prepare for water supply to be disrupted for a short period of time. Critical services such as clinics and hospitals will be largely unaffected, and mitigation measures will be put in place if they experience intermittent water supply. We will share the plan summary with businesses in Cape Town to enable their planning and to ask them to assist us.

The difference between Phase 1 and Phase 2 is that in Phase 1 we are rationing the whole system with reduced supply. In Phase 2, we are only keeping a certain portion of the system alive, close to water-collection points. Residents will be able to collect a pre-defined quantity of drinking water per person per day from these collection sites. During this phase, the city would more actively assume control over the daily water supply available to households and businesses, with even more extreme rationing. Strategic commercial areas, high-density areas with significant risk of increased burden of disease and fires (such as the majority of informal settlements) and critical services such as hospitals would, where possible, continue to receive drinking water through normal channels. The cityâ&#x20AC;&#x2122;s law-enforcement and policing resources, as well as the various resources of our intergovernmental partners (such as the South African Police Service and the South African National Defence Force) will be deployed to ensure that general safety is maintained throughout the city in this phase. This plan will be submitted to the SAPS and the SANDF, who will provide key intergovernmental support.

Phase 3: the extreme disaster phase At this point, the city would be incapable of drawing water from its surface dams in the Western Cape water supply system. There would be a limited period in which the city

can continue to supply water before complete water-system failure. Non-surface drinking water supplies, sourced from ground-water abstraction from various aquifers and spring water, will be available for drinking purposes only. The city will distribute this drinking water to residents through water distribution points. I must emphasise that the disaster and extreme disaster phases can be avoided with progressive savings and rationing in Phase 1. This extreme can only be avoided if we all do what we need to do now to save water. In a responsible city, the likelihood of such a risk materialising must be balanced against the potential impact of that risk. It is therefore necessary that the city and its residents and stakeholders plan for such a situation if it were to occur. The city has been investing much of its resources, through our water-resilience task team, to avoid a disaster scenario. But as a city that plans ahead, the above plan is necessary to have in place. Intricate operational plans are being finalised as we speak because this is an ever-changing situation. This is a call to action to all our water users. We can only get through this by working together. The severity and duration of this drought could not have been predicted. As a city, we are managing the situation with absolutely every drought intervention we have at our disposal. We have not let Cape Town down before, and we do not intend to do so now. We need all water users to stand with us, to support us during these trying times, and to be constructive partners.

SOUTH AFRICAN PROPERTY REVIEW

27


facilities management

The future of facilities management The facilities management landscape in South Africa and abroad is not static. As organisational strategies, economic climate, statutory compliance, and targets and objectives change, facilities management (FM) needs to adapt. In the next few years, there will be real opportunities for facilities managers to demonstrate how the FM function can deliver real value to organisations, and impact the bottom line positively Words Mel Barends, Director: Broll Facilities Management

Mel Barends, Director: Broll Facilities Management

G

one are the days of looking at FM as an expense. The future looks promising in that, if done correctly, FM will be seen as an income driver. We need to be forward-thinking in our approach, which will require real collaboration with internal and external stakeholders. As facilities managers, we need to look at how the future will shape the way we plan for FM, and be ready for the change. What follows is a number of specific ways to start thinking about the future of FM – and how not to be left behind.

Maintenance and repairs for facilities The conventional way of tracking maintenance and repair costs is by contractor, discipline, location, type and size of facility. This is important in the process of identifying which facilities are performing against the metrics and budget relative to one another. This is the old way of doing things: when costs are looked at, one is able to identify which facilities are within budget and which are over.

28

SOUTH AFRICAN PROPERTY REVIEW

In the future, facilities managers will continue to look at the above but will also start including revenues of the organisations that own the facilities. When you do that, the real picture is put into perspective. For example, looking at maintenance and repair costs, you might find one of your Johannesburg facilities’ costs are 70% higher than all the others’. Clearly there is poor management or over-spending taking place – right? Not necessarily. When you bring the facilities’ revenue into play, the picture can look completely different. Say a facility has twice the sales income of other facilities for a specific organisation, or four times the foot traffic. A corresponding 70% increase in maintenance costs could actually show a more optimised facility spend when seen from this perspective. Changing the picture from simply costsper-facility to costs-per-sales can change a negative perception to one that’s in line with other facilities.

Green building FM practices A lot has been said about being eco-friendly, green buildings and sustainability – but very few companies actually develop plans and implement them with the aim of aligning to green building practices. Often, “green” is simply nothing more than a buzz word. In the future, organisations will have to comply as governments start putting more pressure on carbon taxes. There are a number of ways in which facilities managers can demonstrate and put into practice any organisation’s commitment on this front. Technology will obviously play a massive role in tracking, monitoring and measuring green building practices. With the aid of FM systems, organisations will be able to manage and report on the following in real time:

● Waste management ● Green Star certification ● Material safety data sheets for eco products ● Water purification ● Energy monitoring ● Renewables (solar) ● Eco product handling and training ● Local by-law compliance Facilities managers currently manage these aspects using manual and labour-intensive practices – but this will change in the future when organisations adopt more technologically advanced FM systems.

Self-monitoring equipment and assets Equipment and assets are generally managed via inspections, services and check lists. The way of the future is to spec equipment for facilities that are internet-enabled, and combine it with smart sensors that can predict behaviour aligned to repair and maintenance. Even existing equipment can be enabled by bolting on self-monitoring devices that will do what the human force currently does. For example, a machine will self-inspect its critical components and recognise

Equipment and assets are generally managed via inspections, services and check lists. The way of the future is to spec equipment for facilities that are internetenabled, and combine it with smart sensors that can predict behaviour aligned to repair and maintenance


facilities management a potential failure or service ahead. A job card will automatically be sent to the help desk for a preventive maintenance or inspection call, identifying any needed part. This way, the technician will arrive before the problem deteriorates further, with all the materials, parts and equipment required to perform the service. This is a very efficient way of doing things and will increase productivity. Massive financial benefits can also be derived by only doing maintenance when the equipment actually needs it, as opposed to coming in every month and doing a service that might not be necessary. Self-monitoring helps to understand the consumption and usage cycles of the equipment.

     Â

            

  

   

 



Weather stations

   

 

Letâ&#x20AC;&#x2122;s say you know a heat wave is spreading from province to province across your facilities portfolio. With both facilities and weather data integrated, you can discover that, in previous scenarios, you had air-conditioning compressor problems â&#x20AC;&#x201C; so you make sure to proactively perform maintenance services. You can also ensure that funds are allocated for parts, and that technicians are ready based on weather patterns. This is the future of FM, and will help in managing downtime.



Future FM systems will be able to track weather patterns and act based on the weatherâ&#x20AC;&#x2122;s likely impact. With smart use of historical facilitiesâ&#x20AC;&#x2122; spend data, trend analysis, weather records and real-time expenses, facilities managers will be able to know: â&#x2014;? What happened in specific locations with similar weather before; and â&#x2014;? Whatâ&#x20AC;&#x2122;s happening with other locations that will likely impact them.





 

Video and chat technology also holds out promise of bringing facilities managers closer to their internal customers, vendors and the problems themselves without having to be on site constantly. Connecting with people who are already on site, facilities managers can dramatically increase their reach and actual visibility â&#x20AC;&#x201C; which is often a burning issue. Even emerging trends such as augmented and virtual reality have the potential to change the FM industry â&#x20AC;&#x201C; from training to site audits and issue resolution â&#x20AC;&#x201C; by displaying exactly how a facility should look or how a piece of equipment should operate. Other technologies that will become commonplace include motion sensors, facial recognition, biometric systems, smart buildings and building information modelling.

New technologies

  

SOUTH AFRICAN PROPERTY REVIEW

29


one on one

Specialised outsourcing of facilities management components Facilities management is a huge industry. Some companies offer the full gamut of services, while others offer specialised services as part of an outsourcing service contract. SFI is one of those specialists. Property Review speaks to Edward Hector, founder and CEO, about SFI’s role in this service industry Interview by Mark Pettipher

W

Edward Hector, founder and CEO of SFI

ith a master’s in property studies and an MBA focusing on facilities management, Edward hector founded SFI 13 years ago. Initially he had a facilities management division within SFI; he has subsequently sold it off to focus his attention on energy, and specialise in technical outsourcing on buildings that focuses on air-conditioning and air-quality provisions within those buildings. SFI’s speciality is to provide air-conditioning and related maintenance services for retail, commercial and hospitality buildings. The SFI Group has grown its original Cape Town-based business to a national footprint, with operations in both Johannesburg and Durban. The firm counts as its clients some of the largest commercial and industrial property owners and management companies in the country, and has established itself as a leader in its field. SFI Group specialises in the servicing and maintenance of all aspects of commercial air-conditioning systems, including: ● Mechanical plants ● Chiller plants ● Water treatment ● IAQ (indoor air quality) analysis ● Electrical and electronic infrastructure maintenance ● Remote monitoring of air-conditioning plants ● Energy optimisation ● Retrofit projects for HVAC systems. Hector’s passion lies in finding new ways to incorporate energy solutions into the maintenance contracts that SFI holds. “Rather than just servicing the plant and equipment, we need to monitor and track the performance of the units,” he says. “By tweaking the way the building operates you can instigate energy savings. By controlling the temperature and lighting, as well as the time when lights and

30

SOUTH AFRICAN PROPERTY REVIEW

air conditioners come on and off, you can programme and plan more efficiently. By doing so, you not only manage your labour costs, you can also save on a building’s energy usage. This component is an important part of the facilities management of a building. “We are always looking for ways to integrate maintenance solutions in a single service contract. For example, with the Menlyn Shopping Centre, we have integrated the air conditioning and the electrical maintenance and management into a single facilities management solution. We are constantly monitoring how we manage the building through regular maintenance of the air-conditioning systems, through their consumption and through the overall electrical usage in the building. Then there is the usual facilities management of the electrical system, which would also include monitoring, maintenance and scheduling of upgrades of items such as transformers, distribution boards, generators and lighting solutions, and the technology that makes them work.” It is also important to replace and refurbish equipment within the recommended life cycle to ensure optimum performance of the property.

We are always looking for ways to integrate maintenance solutions in a single service contract. For example, with the Menlyn Shopping Centre, we have integrated the air conditioning and the electrical maintenance and management into a single facilities management solution


one on one Outsourcing is becoming more and more important in facilities management. For the facilities manager, it is often better to outsource technical expertise to a service provider, rather than try to duplicate it. As a specialist in air conditioning, electrical management and energy efficiency, SFI’s future opportunities lie with the analysis of data, its technology and the integration of that technology into the management systems the company uses and offers. “Building management is moving towards the tools that are available and the automation of data provided by the management of those tools,” says Hector. “Accurate analysis of the data allows us to provide better management solutions to our clients. The data shows us trends with like-for-like buildings and centres. We’re on the cusp of what was described during the Green Building Council’s recent convention as the ‘internet of things’. Given that we know that 60% of a building’s energy usage comes from air conditioning, we are able to monitor common temperature points.” By using comfort cooling green technology, SFI is able to figure out how it

can, where necessary, retrofit things such as fans, motors and cooling towers, and how to recycle water used in the cooling process.

Accurate analysis of the data allows us to provide better management solutions to our clients. The data shows us trends with like-for-like buildings and centres. We’re on the cusp of what was described during the Green Building Council’s recent convention as the ‘internet of things’. “What is exciting about being a specialist in comfort cooling is that we work with consultants to redesign systems,” says Hector. “We look at using advanced chillers

and high-efficiency pumps, and find ways to make the piping and pumping system work better through variable primary-flow technology. That way we reduce energy usage and cost. “In some cases, we’ve been awarded contracts on already green-rated buildings, such as the Portside FNB building. Our role there is to make sure the installed systems are working to their maximum efficiency. The building uses borehole water and harvested rainwater, so we need to ensure the correct metering and monitoring of all usage in the building to prevent having to dip into municipal water for the building’s cooling needs. And because we are involved in energy efficiency, we look after the electrical usage of the building, which employs automated technology to turn on the lights and the air-conditioning systems. “Technology has certainly come a long way since I started in this industry. We are moving towards intelligent buildings, which means we’re seeing system providers offering complete suites of products to help developers integrate their buildings by using compatible systems.”

SOUTH AFRICAN PROPERTY REVIEW

31


future architecture

The Hydroelectric Canal by Paul Lukez Architecture: overall winner, and winner of the Climate, Energy & Carbon prize

World Architecture Festival announces WAFX prize-winners The WAFX Prize is awarded to future projects that identify key challenges architects will need to address over the next 10 years, and is part of the World Architectural Festival’s 10th anniversary celebrations in Berlin. WAF has selected 11 winning future projects, entered for its awards programme, that critically address the manifesto issues. These challenges span diverse topic areas, including climate, energy & carbon, water, ageing and health, re-use, smart cities, building technology, cultural identity, ethics, power and justice Source: Worldarchitecturefestival.com

And the winner is… After much deliberation, the festival’s directors selected the Hydroelectric Canal by Paul Lukez Architecture (PLA) as the overall winner – and winner of the Climate, Energy & Carbon prize – for its innovative approach to shaping economic and environmentally resilient selfsustaining communities. PLA will be presented with a trophy at the gala dinner, to be hosted in the Postbahnhof in Berlin on 17 November. The Hydroelectric Canal addresses the complex challenge of rising sea levels. PLA, with a multidisciplinary team, is working on a scheme to harness the energy from the rising tides in low-lying urban areas. The communities will be able to draw clean energy through advanced hydroelectric systems, which will generate power from the tidal changes.

Other winners Floating Ponds by Surbana Jurong Consultants has been chosen as the winner of the Water prize. This project’s systemic integration of water, nutrients and energy leads to a concept that enables the creation of a self-sustained

32

SOUTH AFRICAN PROPERTY REVIEW

and closed-loop farming eco-system. Floating Ponds omits the traditional dependency on land, and will enable rapidly expanding and densifying cities to build resilience through the creative use of space and water. Energie- und Zukunftsspeicher im Energiepark Heidelberg by LAVA Berlin is the winner of the Building Technology prize. This animated energy tower reinvents a 1950s tank typology into a hub of sustainability – both a renewable-energy storage and an educational destination for renewable energy. The external façade is animated by more than

20 000 diamond-shaped steel plates; the number of moving plates will indicate the number of households supplied by the renewable energy stored in the tower. Organisers awarded the Smart Cities prize to three distinct entries: Media City by Gad Architecture; Oresund City, a new European metropolis by 2030 by Sweco Architects AB; and Jakarta Jaya: The Green Manhattan by SHAU. Media City will be a vibrant habitat where people can see the design and application of virtual reality and multimedia products; it will also be a beacon for future smart-city strategies.

Floating Ponds by Surbana Jurong Consultants: winner of the Water prize


future architecture

Energie- und Zukunftsspeicher im Energiepark Heidelberg by LAVA Berlin: winner of the Building Technology prize

Sweco Architects’ entry is based on a vision of using a new archipelago to join Copenhagen and Malmo to form a new city: Oresund City. Jakarta Jaya: The Green Manhattan by SHAU is a proposal for a multitude of ecological and social projects combined to form one sustainable city at Jakarta Bay. Södra Skanstull by White Arkitekter is the winner of the Ageing and Health prize. White Arkitekter has developed a new master plan for Södra Skanstull, an area located in the south of Stockholm. The focal point of the scheme is a new diagonal boulevard for pedestrians and cyclists, which makes use

Södra Skanstull by White Arkitekter: winner of the Ageing and Health prize

Media City by Gad Architecture: one of the winners of the Smart Cities prize

of an old railway route and improves public movement through the area. White’s proposal shows how creating walkability is at the heart of building a people-centred sustainable city of the future. Whitmore Community Food Hub Complex: Building Community Around Food by the University of Arkansas Community Design Center has been awarded the Ethics prize. In addition to providing processing and distribution support for an under-served agricultural community, the 37 000m2 Whitmore Food Hub serves additional community needs – such as agricultural workforce housing, retail, local business incubation and cultural tourism.

Lagos’s Wooden Tower by Hermann Kamte & Associates is the winner of the Cultural Identity prize. It aims to create a new generation in the city, above the existing urban fabric. The Lagos Wooden Tower is built with a high-resistance LVL timber system, and stands out as a residential tower that acts as a smart and sustainable monument to the city.

I LOVE NYDALEN by SAAHA AS is the winner of the Re-use prize. SAAHA AS’s proposal maps out how the historic industrial buildings in the Nydalsveien 32B area of Oslo can be preserved and redeveloped into housing to enable an active and vibrant city life. The centre of the district will be transformed into a greenhouse, a common and shared space for both residents and the general public. Revolution 4.0 by Abdullah Ahmed N AlDabbous has been selected as the winner of the Power and Justice prize. The project utilises Cairo’s unused urban spaces (such as motorway flyovers) to provide both learning and opportunities for advancement for street children. This project aims to engage with the street children (who have become part of Cairo’s social and spatial structure) as positive economic assets rather than liabilities.

NYDALEN by SAAHA AS: winner of the Re-use prize

SOUTH AFRICAN PROPERTY REVIEW

33


reconstruction

Zeitz Museum

of Contemporary Art Africa Zeitz MOCAA has been dubbed the “Guggenheim of Africa” – in the art world for its staggering collection of contemporary art from Africa, and in the construction industry for its extraordinary architecture, a milestone combination of “smart and sexy”. Hanler van Eck, ICT Manager at Dimension Data, provides a behind-thescenes look at the tech journey of the iconic masterpiece

A

rt enthusiasts from around the world converged on a building that set the standard for the African art experience. The Zeitz MOCAA was undoubtedly one of the most anticipated construction projects in the world. It was three years ago that the V&A Waterfront first approached Dimension Data to provide ICT with guidance around the Zeitz MOCAA’s conceptualisation and construction. At the time, the museum’s management had a clear vision on the art experience the MOCAA would offer, but sought to explore exactly what it needed from both a business operations and technological standpoint. Dimension Data’s consulting practice performed a structured discovery workshop to align the thinking of various stakeholders,

34

SOUTH AFRICAN PROPERTY REVIEW

and to marry cutting-edge possibilities with business expectations and functional needs. Key outcomes included a foundational yet flexible building network and a Wi-Fi platform that would support a rapidly evolving visitor experience, but would also enable groundbreaking curatorial content and unique educational programming.

Next-level construction consultation Dimension Data’s experience as a master systems integrator (MSI) in complex construction projects played a vital role in its ability to work with the project’s stakeholders to ensure the building fabric was fit for all its IT requirements. The MSI liaises with architects, main contractor as well as electrical, mechanical and security

consultants and sub-contractors. A broad range of questions needed to be answered around functional business requirements and how these would relate to the built environment and the people who interact with it. For example, which technologies would be required to secure and control the museum, and how could the system be used for operational functions? What were the needs of the staff and visitors, and how would both the staff and visitors interact with the technology? Also important was how the visitors would interact with the art, how this would translate to building expectations, and how data useful to improving operations or for marketing purposes would be identified. These were just some of the issues that had to be addressed.


reconstruction Wi-Fi and free internet will be provided through an unobtrusive landing page with registration, and guests will automatically reconnect to the MOCAA network during subsequent visits. The use of Wi-Fi will enable the museum to establish trends such as the demographic of individuals visiting the museum at any given time, which parts of the museum are most frequented, and how external factors such as the weather affect attendance. Not only will the Zeitz MOCAA then be able to develop targeted exhibitions for customers at specific times, it will also be able to develop a CRM database that can be used to send targeted communication to potential visitors. Bringing together the very best of architecture, technology and visitor experience, the Zeitz MOCAA is not unlike the iconic pieces of art it will house – an African masterpiece in its own right.

Services that run over a single, converged network For ease of management and to reduce costs associated with traditionally silo-ed building services systems, it was decided that all of the museum’s facilities, applications and internet services would be run over a single secured network, allowing for ease of integration and operational flexibility – something that makes the building highly advanced as far as technological infrastructure is concerned. At the same time, all services consumed by the Zeitz MOCAA business are cloud-based, with not a single server on site. This means lower operational costs, data security and lower building energy consumption from an ICT perspective.

Phone extension in your pocket

business and its plans for a mobile app. In the near future, visitors will be invited to bring their smartphones into the museum, from which they will be able to use the app to access content related to the work of art they happen to be viewing. In the next phase of the museum’s tech development, artificial intelligence (AI) will also be used to auto-detect visitors lingering near specific pieces and push relevant embellished content to the user.

Advanced analytics Dimension Data will provide the museum with support services for the next three years. During this time, it will assist the Zeitz MOCAA in setting the standard in consumer experience through the use of data analytics. When smartphone users enter the building and connect to the Wi-Fi, the network will detect their device.

Because the building is a heritage site, the physical impact of technology in the building fabric had to be minimised. The result is an extensive, enterprise-grade wireless service that enables the museum’s staff members to roam across the museum with “phone extensions in their pocket”. This they do through the use of their own smartphones or tablets – a bring-your-own-device (BYOD) concept that further reduces operational costs. Through a digitised communications app, all phone calls are made over the Wi-Fi network, while phone-call analytics can be used to flag high spenders and contain both individual and overall communications costs.

The “mobile guide” Given the era of rapid digitisation, a ubiquitous Wi-Fi platform was essential to enable the SOUTH AFRICAN PROPERTY REVIEW

35


cyber finance

Blockchain technology 101

ac in the loc chain esearch Instit te described bloc chain as a global spreadsheet an incorr ptible digital ledger of economic transactions that can be programmed to record not st financial transactions b t irt ally e erything of al e and importance to h man ind birth and death certificates marriage licences deeds and titles of ownership ed cational degrees financial acco nts medical proced res ins rance claims otes transactions between smart ob ects and anything else that can be e pressed in code Source: Blockgeeks.com

B

y allowing digital information to be distributed but not copied, blockchain technology created the backbone of a new type of internet. It was originally devised for the digital currency bitcoin; now the tech community is finding other potential uses for the technology. Bitcoin has been called “digital gold”, and for a good reason. To date, the total value of the currency is close to US$9-billion. And blockchains can make other types of digital value. As with the internet (or your car), you don’t need to know how the blockchain works to use it. However, having a basic knowledge of this new technology shows why it’s considered revolutionary. Picture a spreadsheet that’s duplicated hundreds of thousands of times across a network of computers. Then imagine that this network is designed to update this spreadsheet regularly, and you have a basic understanding of the blockchain. Information held on a blockchain exists as a shared – and continually reconciled – database. This is a way of using the network that has obvious benefits. The blockchain database isn’t stored in any single location, meaning the records it keeps are truly public and easily verifiable. No centralised version of this information exists for a hacker to corrupt. Hosted by millions of computers simultaneously, the data is accessible to anyone on the internet.

36

SOUTH AFRICAN PROPERTY REVIEW

Durability and robustness Blockchain technology is like the internet in that it has a built-in robustness. By storing blocks of information that are identical across its network, the blockchain: 1. Cannot be controlled by any single entity, and 2. Has no single point of failure. Bitcoin was invented in 2008. Since then, the bitcoin blockchain has operated without significant disruption. To date, any problems associated with bitcoin have been the result of either hacking or mismanagement. In other words, these problems have come as a result of bad intention and human error, not flaws in the underlying concepts. The internet itself has proven to be durable for almost 30 years. It’s a track record that bodes well for blockchain technology as it continues to be developed.

Transparent and incorruptible The blockchain network lives in a state of consensus – one that automatically checks in with itself every 10 minutes. A kind of self-auditing ecosystem of digital value, the network reconciles every transaction that happens at 10-minute intervals. Each group of these transactions is referred to as a “block”. Two important properties result from this:

1. Transparency: data is embedded within the network as a whole, so by definition it is public. 2. Incorruptibility: altering any unit of information on the blockchain would mean using a huge amount of computing power to override the entire network. In theory, this could be possible. In practice, it’s unlikely to happen. Taking control of the system to capture bitcoins, for instance, would also have the effect of destroying their value.

A network of nodes The blockchain is made up of a network of so-called computing “nodes”. Together, these nodes create a powerful second-level network – a wholly different vision for how the internet can function. Every node is an “administrator” of the blockchain, and joins the network voluntarily. (In this sense, the network is decentralised.) However, each one has an incentive for participating in the network: the chance of winning bitcoins. Nodes are said to be “mining” bitcoins, but the term is something of a misnomer. In fact, each one is competing to win bitcoins by solving computational puzzles. Bitcoin was the blockchain’s raison d’être as it was originally conceived. It’s now recognised to be only the first of many potential applications of the technology.


cyber finance Today, there are an estimated 700 bitcoinlike crypto-currencies (exchangeable value tokens) already available. In addition, several other potential adaptations of the original blockchain concept are either currently active or in development.

were sent in 2015. And at the moment there is a high demand for blockchain developers. The blockchain potentially cuts out the middleman for these types of transactions. Personal computing became accessible to the general public with the invention of the

The idea of decentralisation

A global network of computers uses blockchain technology to jointly manage the database that records bitcoin transactions. That is, bitcoin is managed by its network, and not by any one central authority. Decentralisation means the network operates on a user-to-user (or peer-to-peer) basis. The forms of mass collaboration that this makes possible are just beginning to be investigated

By design, the blockchain is a decentralised technology. Anything that happens on it is a function of the network as a whole. Some important implications stem from this. By creating a new way to verify transactions, aspects of traditional commerce could become unnecessary. Stock market trades become almost simultaneous on the blockchain, for instance – or it could make types of record-keeping, such as a land registry, fully public. And decentralisation is already a reality. A global network of computers uses blockchain technology to jointly manage the database that records bitcoin transactions. That is, bitcoin is managed by its network, and not by any one central authority. Decentralisation means that the network operates on a user-to-user (or peer-to-peer) basis. The forms of mass collaboration that this makes possible are just beginning to be investigated.

Who will use the blockchain? You don’t need to know about the blockchain for it to be useful in your life. Currently, finance offers the strongest use cases for the technology. Take international remittances, for instance: the World Bank estimates that more than US$430-billion in money transfers

graphical user interface (GUI), which took the form of a “desktop”. Similarly, the most common GUI devised for the blockchain are the so-called “wallet” applications, which people use to buy things with bitcoins, and store along with other crypto-currencies. Transactions online are closely connected to the processes of identity verification. It is easy to imagine that wallet apps will transform in the coming years to include other types of identity management.

The blockchain and enhanced security By storing data across its network, the blockchain eliminates the risks that come with data being held centrally. Its network lacks centralised points of vulnerability that computer hackers can exploit. Today’s internet has security problems that are familiar to everyone. We all rely on the “username/password” system to protect our identity and assets online. Blockchain security methods use encryption technology. The basis for this are so-called public and private “keys”. A “public key” (a long, randomly generated string of numbers) is a user’s address on the blockchain. Bitcoins sent across the network get recorded as belonging to that address. The “private key” is like a password that gives its owner access to their bitcoins or other digital assets. Store your data on the blockchain and it is incorruptible – although protecting your digital assets will also require safeguarding your private key by printing it out, creating what’s referred to as a “paper wallet”.

A second-level network With blockchain technology, the web gains a new layer of functionality. Already, users can transact directly with one another – bitcoin transactions in 2016 averaged more than US$200 000 per day. With the added security brought by the blockchain, new internet businesses are on track to unbundle the traditional institutions of finance. Goldman Sachs believes that blockchain technology holds great potential, especially to optimise clearing and settlements, and that it could represent global savings of up to US$6-billion per year.

SOUTH AFRICAN PROPERTY REVIEW

37


GBCSA Convention

Dare to lead With 600 seats available, this year’s Green Building Council of South Africa Convention was fully subscribed. Held at the Century City Conference Centre in Cape Town, the three-day event was a hive of activity Words by Mark Pettipher

Dorah Modise, Green Building Council of South Africa CEO

Patricia de Lille, Executive Mayor of the City of Cape Town

A

fter an enthralling professional dance routine, Manfred Braune, the Green Building Council of South Africa’s (GBCSA) Managing Executive: Certifications and Executive Director, opened proceedings on the afternoon of day one, welcoming newly appointed GBCSA Chief Executive Officer Dorah Modise to the stage. Modise was proud to announce that, after 10 years in existence, the GBCSA has certified 300 buildings. Its focus now will be on enhancing collaborative relationships with all key sectors in the built environment to enhance and develop green building practices, and to encourage as well as improve the sustainability of communities in South Africa and in Africa. Next, GBCSA Chairman Rudolf Pienaar reiterated the importance of the association, as well as the importance of the worldwide body of Green Building Councils. Lee Siang Tai, the Chairman of the World Green Building Council, was the first of the conference’s 11 keynote speakers, describing the trends in global green buildings and the evolution of councils around the world. Concluding day one, Fred Kent, the founder of Project for Public Spaces, spoke about the importance of revitalising city spaces – a topic that soon became one of the themes of the convention, along with the realisation that buildings are more about their use and functionality, and the need for clean, light-filled and healthy workspaces that take the “human element” into account.

Rudolf Pienaar, Green Building Council of South Africa Chairman

38

Lee Siang Tai, World Green Building Council Chairman

SOUTH AFRICAN PROPERTY REVIEW

Day two kicked off with a talk by Master of Ceremonies Kura Chihota, followed by a welcoming address by the Executive Mayor of the City of Cape Town Patricia de Lille, who outlined the acute water shortage that the city and the Western Cape are facing. This issue of Property Review contains an in-depth look at the points she was making. Day two’s plenary morning session focused on sustainability, health and wellbeing, as well as how technology and “the internet of things” can help improve our environment through data mining and the application of information in planning and execution of buildings as well as their management. Another session focused on policy and innovation, and was led by Professor Edgar Pieterse, Director at the African Centre for Cities and South African Research Chairman in Urban Policy at the University of Cape Town. His presentation focused on the major challenges that South African cities face today. The panel for this session included Councillor Bret Herron, who put forward a case for how policy shapes our cities. He was followed by Rob Macgaffin’s views on the economic drivers for new development in cities; Jodi Allemeier’s explanation of the role of citizen action groups in the building of more sustainable cities; and Dr Geci Karuri-Sebina, who highlighted the importance of innovation when it comes to addressing the challenges presented by Pieterse. The afternoon format presented three sector-specific parallel sessions: Commercial Track, chaired by Braune; Public Sector Track, chaired by Thulani Kuzwayo; and the Residential Track, chaired by Grahame Cruickshanks. The gala awards dinner followed thereafter. Day three began with a theatrical representation of the mind-set in construction by one of the Convention’s sponsors, Lafarge, which drew the attendees into re-thinking concepts. Internationally renowned speakers included Lance Hosey of the US, Dr Pablo van der Lugt of the Netherlands and Anthony Sprigg of Australia, as well as our very own Kevin James. The closing plenary session included keynote speakers Parks Tau, President of the South African Local Government Association, as well as Agriprotein founder Jason Drew and Professor Mark Swilling. Modise then officially closed the Convention, thanking speakers and delegates for making it a success – and inviting all delegates to next year’s edition.

Fred Kent, founder of Project for Public Spaces

Vivian Loftness, Professor of Architecture at the CMU School of Architecture in the US


GBCSA Convention tons to 89-billion tons per year. And less land will be available to supply these resources. In 2050, cities will more than double their current surface area. If this expansion takes place, it will eat into the most productive agricultural land, usually found on urban outskirts.

African cities can pivot easier to sustainability Dr Nigel Oseland, workplace strategist and change manager at Workplaces Unlimited in the UK

Edgar Pieterse, Director at the African Centre for Cities; South African Research Chairman in Urban Policy at UCT

Lance Hosey, architect, author and Design Excellence Programme Lead at Harley Ellis Devereaux in the US

Kevin James, CEO of GCX

Anthony Sprigg, CEO of the Infrastructure Sustainability Council of Australia

Parks Tau, President of the South African Local Government Association

But what if a sustainable growth scenario occurred, where everyone lived in a green building, used bus transit, and were powered by minigrids connected to renewable-energy sources? “We found there’d be a 40% saving in total quantity of resources consumed,” Swilling said. And the challenge will not be introducing sustainable technology or systems, but rather the reconfiguration of governance necessary to bring about the change.“We need an entrepreneurial mode of governance that allows experimentation,” he said. “In my view, cities in Africa have an extraordinary opportunity to do things differently. We are still going through the big decisions on the types of urban systems required, and we can learn from cities in more developed countries. Are we going to emulate older, outdated nodes – or are we going to anticipate and act? Are we going to say we don’t need private cars, we don’t need sprawl, we can do zero waste, we can do net zero multi-storey buildings?”

Resource crunch creates gap for green building standards What of South Africa, where local government requires financial surplus from water and energy to cross-subsidise other service-delivery efforts? “As an advocate for sustainability I am equally an advocate for longterm municipal sustainability,” Tau said. “This is why, during my tenure as Mayor of Johannesburg, I asked City Power for a new business model. I asked for reduced greenhouse gases, increased revenue, increased collections. It was a long conversation. Now, consider if City Power were a facilitator of micro-grids, and so enabled demand-side supply.” City Power used to be in a position to create billions for the City of Johannesburg’s budget, but Tau forecast that by 2022 this opportunity would be gone, “so it needed to start thinking about another plan”. Similarly, while urbanisation places municipal services “under massive stress, there is an opportunity,” said Tau. “For example, amend building codes to meet GBCSA guidelines.”

Future cities will share and repair

Jason Drew, author and founder of Agriprotein

Mark Swilling, Programme Coordinator for Sustainable Development at the University of Stellenbosch School of Public Leadership; Academic Director at the Sustainability Institute

A focus beyond buildings to green cities “The world has broken out in a rash of experiments across all dimensions of urban life,” Swilling told delegates. “We cannot continue to see cities simply as opportunities to channel finance into property development, or to spend money on out-of-date infrastructure.” “Local government and the GBCSA members need to talk about not just green buildings, but about green cities,” said Tau. “Cities should be our focus, so that our impact is greater than singular buildings.”

Annual consumption: 89-million tons of natural resources Swilling used urban metabolic analysis to understand how resources are used globally, and found that if humanity’s consumption habits do not change, resource requirements would grow from the current 40-billion

“Change is a hockey stick, and we’re getting to the exponential bit,” said Drew. “We’ll see more change in the next five years than we can imagine.” Future businesses are moving away from the extract-manufacturethrow away product cycle and multi-generational product development, he said. A new way of doing business has begun, where durable products can easily be repaired, shared and operated in a closed-loop cycle. “Today, the world’s richest cities have huge bike-share programmes, and the world’s largest hotel company, which helps to find beds for 80-million people annually, doesn’t own any infrastructure but instead invites ordinary people to share their second-most-valuable asset: their spare room,” said Drew. In 2008, Drew himself started a closed-loop business involving flies in Tulbagh. “After many years of failing, we started to understand how to grow flies. Today our factory in Philippi receives tons and tons of organic waste from the City of Cape Town, which fly larvae then turn into fertilizer, and the flies are processed to create fishmeal or animal feed oil,” he explained. Agriprotein’s fly larvae factories are being commissioned all over the world, and Dubai will use them to become the first zero-waste-tolandfill city in the world by 2021. “We can repair the future – and we can do it in the most unusual ways,” said Drew. SOUTH AFRICAN PROPERTY REVIEW

39


social

KwaZulu-Natal brokers’ cocktail networking evening SAPOA KwaZulu-Natal Regional Council hosted a cocktail networking evening for brokers. It was sponsored by Growthpoint Properties and held at their offices in Umhlanga

FROM LEFT SAPOA KZN Broker Subcommittee Chairman Bradley Hancock, David Warmback, Sam Daykin and Winston Sjouerman

B

roker Subcommittee Chairman Bradley Hancock welcomed all 60 guests in attendance, using the opportunity to highlight some of the work being done by SAPOA’s national, regional and broker sub-committees. At the end of the evening, a businesscard lucky draw was held, with three prizes of gift vouchers for the La Lucia shopping mall. First prize went to Barry Sparks of Pam Golding Properties, second prize went to Gaylene Carlisle of Index Property Solutions, and third prize went to Warren Fielding of Cushman & Wakefield Excellerate. FROM LEFT Colin Memela, Eston Naidoo, Nelson Ndimande, Robert McInerney and Rainer Stenzhorn

40

SOUTH AFRICAN PROPERTY REVIEW


social

FROM LEFT Kalay Govender, Vaashnee Rasan, Sandra Reddy and Simla Hambraj

Melanie Mansur with Kasturi Perumal

Laura Radford with Brett Harding

First prize winner, Barry Sparks (centre), with Craig Davis (left) and Nelson Ndimande (right)

Neva Naidoo with Ramona Moonsamy

Second prize winner Gaylene Carlisle (centre), with Craig Davis (left) and Nelson Ndimande (right)

Clarin Norton with Kyle Mudgway

Third prize winner Warren Fielding (centre), with Craig Davis (left) and Nelson Ndimande (right)

SOUTH AFRICAN PROPERTY REVIEW

41


social

Swinging into action at the Western Cape Golf Day Gorgeous greens and perfect weather lent itself to a great round of amateur golf at the King David Mowbray Golf Club in Cape Town

Halfway House Sponsors: Ian Kitching (Indawo), Jurie Erasmus (Indawo), Noxolo Ndongeni (Ingozi) and Marlene Clark (Ingozi)

Dulux Fourball: Theo Mac Simlah (Blend Property Group), Roberto Benn (Cushman & Wakefield Excellerate (JHI)), Brenton Ashby (ICI Dulux (Pty) Ltd) and Henk Marais (Kotlowitz Marais Architects)

STBB Fourball: Michael McElhone, Allan White, Bradley Parker and Allan Williams

Gibb Fourball: Muzi Siyaya (Gibb), Johan Hoal (Gibb), Sean Malloy (Gibb) and Clive September

Boxwood Property Fourball: Pete Fauel, Len WorthingtonSmith, Rob Kane and Martin Rippon

Nigel Adriaanse (EDPF) and Patrick Parring (Par Equity)

Dave Russell (Baker-Street) and Marlon Parring (Par Equity)

O

ne-hundred-and-twenty players on an 18-hole pitch meant there’d be plenty of competition for top honours – but it was the V&A Waterfront who clinched the first prize. Second prize was awarded to Securitas, Plascon took the third prize and the fourth prize went to BTKM QS. We would like to thank the following sponsors for their support in making the day a success: ● Indawo Cape (Pty) Ltd (Halfway House sponsor) ● Smith Tabata Buchannan Boyes ● DoubleTree by Hilton Hotel ● Dulux Paints ● Auric Auto BMW ● Cliffe Dekker Hofmeyr (CDH Legal) ● Concrete Laser Flooring (Pty) Ltd ● Formfunc Studio (Pty) Ltd ● SFI Group (Pty) Ltd ● Plascon

42

SOUTH AFRICAN PROPERTY REVIEW


social

Growthpoint Fourball – Chris Mackrill, David Stoll and Adriaan Read – with Dave Russell and Caroline Coates

Dulux Fourball – Roberto Benn (Cushman & Wakefield Excellerate/JHI), Henk Marais (Kotlowitz Marais Architects) and Graham Smith (ICI Dulux) – with Dave Russell and Caroline Coates

Annenberg Fourball – Gerdus Oosthuysen, Lyall Johnson, Daniel Botha and Riaan du Toit – with Dave Russell and Caroline Coates

Rabie Fourball – Jason Elley and Mark Gedrych – with Dave Russell and Caroline Coates

BTKM QS Fourball – Fred Robertson (Brimstone), Nazeem Khan (BTKM QS), Makkie Isaacs and Rustum Mohamed – with Dave Russell and Caroline Coates

Plascon Fourball – Calvin Leen (Growthpoint), Rudi van Schalkwyk (Plascon) and Warren Powell (Plascon) – with Dave Russell and Caroline Coates

Securitas Fourball – Marius Hayes, Roy Fell, Newton Kies and Lester Thomas – with Dave Russell and Caroline Coates

V&A Waterfront Fourball – Vivian de Meillon, Deon Sloane, Clinton Sandmann and Koos van Rooyen – with Dave Russell and Caroline Coates

SOUTH AFRICAN PROPERTY REVIEW

43


social

Women’s Property Network announces winners of 2017 SA Women in Property Awards The Women’s Property Network (WPN) celebrated the award-winners at the Polo Room at the Inanda Club, Johannesburg. The awards recognise women who have excelled in the sector during the course of the past year

Professional of the year: Public sector award ● KZN: Roshinee Naidoo, Municipal Finance Director at KZN Cogta; and Logashri Sewnarain, Regional Manager: Eastern Region at SANRAL The 2017 winner in this category was Roshinee Naidoo.

The Lisa Blane Award was presented to Portia Tau-Sekati from PSCC. Handing over the award were WPN Chairperson, Sandi Mbutuma and Nonhlanhla Mayiela, Senior Manager: Infrastructure & Property Development at Airports Company South Africa

M

ore than 250 guests from the property industry celebrated the winners of the 2017 South African Women in Property Awards. Airports Company South Africa sponsored the event, while the Royal Institution of Chartered Surveyors sponsored the awards. WPN Chairperson Sandi Mbutuma says the WPN is not only recognising great women who have gone beyond the call of duty, it has also been able to raise funds for the WPN Educational Trust, which provides bursaries to female students in the tertiary environment who want to pursue a property-related degree. “The South African Women in Property Awards is a collaborative platform dedicated to recognising leadership, inspiration, vision and innovation in organisations that have stepped up and shaped women’s roles within the private and public sector,” she says. “The awards categories reflect the wide spectrum of work in which these deserving women are involved. They include CEOs, executives and leaders in corporate South Africa, SMMEs, government departments and agencies, as well as entrepreneurs.”

The following nominees were recognised in their respective categories: Young achiever award (under 35 years old) ● Gauteng: Vere Shaba, Director: Green Building and Certifications at Shaba & Ramplin

44

SOUTH AFRICAN PROPERTY REVIEW

● Western Cape: Gemma Moore, Director at De Leeuw Valuers ● KZN: Nicole Richards, Director at FWJK Architects The winner in this category was Vere Shaba.

Businesswoman of the year: Entrepreneur award ● Gauteng: Rirhandzu Letty Ngobeni, founder and Chief Executive Officer of Integrico ● Western Cape: Xoliswa Daku, Chief Executive Officer of the Daku Group of Companies The national category winner was Xoliswa Daku.

Professional of the year: Corporate/private sector award ● Gauteng: Madeleine Truter, Legal Adviser at Setso Asset Managers ● Western Cape: Joan Solms, Chief Operating Officer at Ingenuity Property Investments ● KZN: Subashnee Moodley, Managing Director at Livingston Leandy The nominations in this category caused much healthy debate among the judges: the women nominated were all strong candidates from varied backgrounds, who have all made a contribution to the industry. The final consensus was that Joan Solms of Ingenuity Property Investments be recognised as the winner.

Also at the gala dinner, the Lisa Blane Award was presented in recognition of Lisa Blane and her contribution to the WPN and the property industry. Blane was a founding member of the WPN and an originator of the Five Star and Rising Star Awards, which ensured that women would be acknowledged for their contribution to the industry. Blane was also a staunch supporter of education and an instigator of the WPN Educational Trust, which helps young women become adequately equipped to fulfil roles in the property industry. The Property Sector Charter Council’s Chief Executive Officer Portia Tau-Sekati was acknowledged for her contribution to the industry and for giving tirelessly of herself.

The awards were adjudicated by a panel of judges, which included: ● TC Chetty – Regional Manager: RICS South Africa, and Chief Executive of TC Chetty and Associates (TCAA) ● Gary Garrett – Head of Real Estate Finance at Standard Bank Corporate and Investment Banking ● Genevieve Naidoo – Head of Credit Risk Real Estate at Standard Bank Corporate and Investment Banking; WPN Chairperson ● Ipeleng Mkhari – Founder and Chief Executive Officer of Motseng Investment Holdings; SAPOA President Elect for 2018 In addition to Airports Company South Africa and the Royal Institution of Chartered Surveyors, the WPN also partnered with the Singer Group and Jo Malone London (for gifts for each of the winners), Jones Lang LaSalle (for guests’ gifts), and Pernod Ricard through its premier brand GH Mumm.


social Young Achiever (under 35 years old)

FROM LEFT Nonhlanhla Mayisela, Senior Manager: Infrastructure and Property Development at Airports Company South Africa; TC Chetty, Regional Manager: South Africa at the Royal Institution of Chartered Surveyors; Vere Shaba, Director: Green Buildings and Certifications at Shaba and Ramplin; and Sandi Mbutuma, WPN Chairperson and Managing Director at Azzaro Quantity Surveyors

Businesswoman of the Year: Entrepreneur

FROM LEFT Sandi Mbutuma, WPN Chairperson and Managing Director at Azzaro Quantity Surveyors; Xoliswa Daku, CEO of Daku Group of Companies; TC Chetty, Regional Manager: South Africa at the Royal Institution of Chartered Surveyors; and Nonhlanhla Mayisela, Senior Manager: Infrastructure and Property Development at Airports Company South Africa

Professional of the Year: Corporate/Private Sector

FROM LEFT Sandi Mbutuma, WPN Chairperson and Managing Director at Azzaro Quantity Surveyors; Joan Solms, Chief Operating Officer at Ingenuity Property Investments; TC Chetty, Regional Manager: South Africa at the Royal Institution of Chartered Surveyors; and Nonhlanhla Mayisela, Senior Manager: Infrastructure and Property Development at Airports Company South Africa

Professional of the Year: Public Sector

FROM LEFT Sandi Mbutuma, WPN Chairperson and Managing Director at Azzaro Quantity Surveyors; Roshinee Naidoo, Municipal Finance Director at KZN Cogta; TC Chetty, Regional Manager: South Africa at the Royal Institution of Chartered Surveyors; and Nonhlanhla Mayisela, Senior Manager: Infrastructure and Property Development at Airports Company South Africa

SOUTH AFRICAN PROPERTY REVIEW

45


eco construction

Wooden skyscrapers:

set to transform our cities? Wooden skyscrapers are cropping up in cities around the world. Thanks to cross-laminated timber, these structures are just as resilient as buildings made from steel – and they put much less of a strain on the environment By Brad Jones, Futurism.com

F

or centuries, wood was the construction material of choice for buildings around the world. During the Industrial Revolution, steel and concrete took its place. In more recent history, however, we’re seeing something of a resurgence of interest in wood as a competitive construction material. In 2012, the Forte residential block in Melbourne, Australia set the record for the world’s tallest building made from timber (at 10 storeys). Less than two years later, it was outdone by the Treet, a 14-storey construction in Central Bergen, Norway. The Treet has since been outdone by Canada’s 18-storey Brock Commons. Cross-laminated timber is the material that allows these structures to be built without safety concerns. It’s made from sheets of two-by-fours layered together and bound by fire-resistant

46

SOUTH AFRICAN PROPERTY REVIEW


eco construction

glue. The grain of each layer is rotated 90 degrees; as such, the material’s structural strength is comparable to that of steel.

Ecological edifice If we can make building materials from wood that are as strong as steel, its other advantages make it a very appealing prospect – the first of which is its major benefit in terms of the environment. Estimates published by the Green Building Council in the US state that as much as 39% of carbon emissions in the US are the result of the construction of buildings and their usage. Wood is far lighter than steel, which makes it easier to transport to a construction site, and the foundations for buildings don’t have to be

as deep. Both of these factors would serve to cut down on emissions. Of course, there are challenges too. While wood is a renewable resource, it’s critically important that we don’t use it irresponsibly, and that we continue reforestation efforts so we don’t exhaust our supplies. Still, wooden buildings offer some promising opportunities for more ecologically sound construction – as long as all the proper considerations are made.

Why are wooden skyscrapers good? Building out of wood may seem antiquated to some, but the material – particularly in its CLT form, which is new in the US – is undergoing a renaissance because of its capacity to be as strong as steel.

Creating structures from wood is a promising avenue for the environmental sector because it doesn’t create a flurry of carbon emissions: and now, designers of a new project named “Framework” (to be completed in 2018) hope that particular building will set a precedent as a carbonneutral project. As the website of Lever Architecture (involved in the project) states, “Framework is part of a mutually beneficial cycle between natural resources, the rural timber industries that rely on these resources, and the cities served by the completion of these buildings.” If the building’s construction is a success, it will be a shining example of the beautiful combination of material and form that wooden architecture is capable of. SOUTH AFRICAN PROPERTY REVIEW

47


off the wall

Far from the madding crowd Technology has revolutionised everything we do. From the days of “What do you mean, you don’t have a fax machine?” to “I’ll send you a PDF”, life has got faster – and more convenient. Could commuting by drone be next? Compiled by Phil Rhuimte

O

ff the Wall is a platform for exploring the more quirky innovations from around the world – and with this being the “green” edition, we decided to look at reducing cities’ carbon footprint through drone transport. Dubai in the United Arab Emirates recently became the first city in the world to introduce drone taxis. As Bloomberg reported, Dubai staged a public test of its drone taxi service at the end of September, offering a peek at what it might be like – or will be like – to commute by flying car. The drone was previously tested in Germany in April. The self-piloting, electric Volocopter is less noisy than a traditional helicopter and has a smaller physical and environmental footprint. Offering enough space for two passengers, the two-metre-tall ’copter is topped by a 6,7m-wide hoop studded with 18 rotors. The Germanproduced Volocopter prototype takes two hours to charge fully, and can fly for about 30 minutes on a single charge at a cruising speed of 50km/h (with a top speed of about 100km/h). For the sake of safety, the drone has redundant battery systems, propellers, motors and flight controls – and, for the worst-case scenario, emergency parachutes as well. The manufacturer says the first licensed Volocopter should be on the market in 2018, but the price is yet to be revealed.

48

SOUTH AFRICAN PROPERTY REVIEW

Speaking to Engadget reporter Mariella Moon, Volocopter chief Florian Reuter said the current model “is capable of flying based on GPS tracks” – but the company plans to “implement full-sense capability” in the future. It will ensure that the machine can avoid obstacles and collisions with other flying taxis on the way. If everything goes well, you could catch a Volocopter ride in Dubai in the next five years. Rival Chinese manufacturer Ehang unveiled its Ehang 184 Autonomous Aerial Vehicle (AAV) during the 2016 CES gadget show in Las Vegas in the US. Powered by eight propellers, the 184 (which stands for one person, eight propellers, four arms) will cruise at about 100km/h. The 184 is designed with full redundancy: if one section of the power system were to operate abnormally, the vehicle could still complete a normal flight plan, ensuring the safety of both it and the passenger. Routes are programmed by a ground control centre through an encrypted 4G network,

which also monitors the flight. The 184 flies in an inverted U-shape. The take-off and landing points are pre-set and navigated with the help of a landing camera, which automatically and accurately pinpoints the exact sites and positions. The 184 was designed to be 100%-green, and is powered by electricity only.


“How can you help us realise our vision?” “We’re geared for it.”

In the real estate sector you need a partner with fortitude, experience and know-how to see you through. With our capabilities and deep local sector insights we have innovative solutions to meet your needs. Let us be your partner for wherever your ambition takes you. standardbank.co.za/business

4

Authorised financial services and registered credit provider (NCRCP15).

The Standard Bank of South Africa Limited (Reg. No. 1962/000738/06). Moving Forward is a trademark of The Standard Bank of South Africa Limited. SBSA 230709 – 1/16 SOUTH AFRICAN PROPERTY REVIEW


30 4

SOUTH AFRICAN PROPERTY REVIEW

30471 - DelQS SAPOA A4 Ad.indd 1

2017/05/12 11:09:17 AM

Property Review November 2017