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South African Property Review

PROPERTY SOUTH AFRICAN

March 2017

REVIEW

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2016/08/25

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GBCSA gets new CEO

Developers and innovation

INNOVATION BY COLLABORATION

Mitchells Plain hospital a community-engaged project

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Inspiration from vibrant city trends

March 2017

DEVELOPER FOCUS SAPOA members: a positive outlook for the year ahead


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contents

March 2017

PROPERTY SOUTH AFRICAN

REVIEW

South African Property Review

PROPERTY SOUTH AFRICAN

March 2017

REVIEW

PROPERTY REVIEW - LogoTreatment.pdf

1

2016/08/25

11:31 AM

ONE on ONE

ON THE COVER Stepping up to the challenges of the year ahead and focusing on the positive developments for 2017.

GBCSA gets new CEO

Developers and innovation

INNOVATION BY COLLABORATION

Mitchells Plain hospital a community-engaged project

GOOGLE-d

Inspiration from vibrant city trends

March 2017

DEVELOPER FOCUS SAPOA members: a positive outlook for the year ahead

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From the CEO From the Editor’s desk News Legal update Competition Commission retail market inquiry – Massmart complaint Planning and development The Department of Rural Development & Land Reform’s progress update on the implementation of SPLUMA Education, training & development SAPOA partners with the EAAB towards continuing professional development One on one Meet South Africa’s newest “green” CEO SONA A draft of Property Practitioners Bill on the cards: Zuma IT and data Investec Private Banking launches #MoreThanData IT and data ARCHIBUS provides intelligent – and cost-effective – real estate software solution Development innovation The Growthpoint Greenovate awards programme Award-winning development Google office design takes its inspiration from the vibrant city Developmental overview From Gauteng to KZN East London development overview Positive moves ahead East London development overview Pearlstone a leading light on East London’s commercial property scene Award-winning development Innovation through collaboration Port Elizabeth developments From the cradle to retirement KZN developments Sail in and find the perfect spot at Ballito Junction Regional Mall Gauteng developments Loftus Park: A bull in a bear’s market Industrial development Lord Trust Developers transforms an unused quarry into a green industrial hub – Lords View Industrial Park Development funds Changing the landscape of South Africa Events What’s on Upcoming events Off the wall Nothing but air 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 Production Manager Dalene van Niekerk Designers Wade Hunkin, Eugene Jonck Sales Robbie Pansegrauw e: rob@mpdps.com Finance Susan du Toit Contributors Anne Lovell, Mumtaz Moola, Marguerite Lithgow, Maude Nale, Phil Ruimte, Portia Mkhabela Photographer 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 partners with the Department of Public Works’ PMTE for continued professional development SAPOA has partnered with the Property Management Trading Entity (PMTE) for skills-development training and facilitation within the division

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he PMTE operates as a trading entity within the Department of Public Works (DPW). Its mandate includes the provision of accommodation and rendering of expert built environment services to user departments at national government level. It is, among other things, also responsible for the planning, acquisition, management and disposal of immovable assets under the custody of the DPW. High on the list of priorities is increasing the knowledge and skills among its employees, with a commitment to improve service delivery. The strategic partnership, set to roll out for two years between PMTE and SAPOA, will involve the facilitation of training and development by SAPOA, aimed at improving skills and capabilities of PMTE employees. A total of 400 employees will benefit from tailored programmes aligned to their personal development plans. The programmes include Facilities Management, Property Management, Certificate for Commercial Property Practitioners, and Professional Development Programme. SAPOA has enlisted the University EARLY BIRD AD FOR DALENE-1.pdf

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At SAPOA, we pride ourselves on providing leading industry forums, and a platform that allows members to discover innovative ideas and to develop their business

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of the Witwatersrand, the University of Pretoria and the University of Cape Town’s Graduate School of Business to facilitate these. As SAPOA, we’re honoured to be partnering with PMTE on this opportunity. Our educational efforts are aimed at ensuring that the content of our programmes is aligned to industry needs, and raising the employability and competence of the practitioners in the industry. Formidable partnerships such as this one are in line with our vision to be actively and responsibly committed to representing, promoting and protecting the interests of our members’ commercial activities within the property industry. Our vision further extends to educating the future generations of South Africa, resulting in benefits such as empowerment, education and training. Neil Gopal, CEO


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from the Editor’s desk

Developing South Africa’s commercial property sector is an exciting place to be As the first quarter of the year draws to an end, it seems appropriate that I head out to some of the developments we reported on last year

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o sooner are we back into the swing of things, and suddenly we’re looking at the end of the first quarter of 2017. In the R5,8-trillion commercial property industry we operate in, time doesn’t stand still. I was fortunate to get a one-on-one interview with the newly appointed Chief Executive Officer of our affiliate, the Green Building Council of South Africa, Dorah Modise. One week into her tenure, we chatted about some of her past achievements in sustainable affordable housing developments and her drive for the upliftment of South Africa’s less fortunate. Over a cup of coffee in Johannesburg a couple of weeks ago, I met with Warwick Lord, SAPOA’s Property Development Committee Chairman. He was upbeat and positive – after all, he is in the property development side of the business. In his opinion, this year, although a bit of a slow starter, is going to be a better year than 2016. South Africa’s economy seems to be stabilising after the unsettling effects of Nenegate, and according to Lord, people are starting to invest. He is certainly off to a good start with his Cato Ridge modal development. In our last focus on developers, we touched on Port Elizabeth; since then, I’ve spoken to Cobus Bedeker, Development Director for Cape Town-based AMDEC, who is excited about his company’s latest mixed-use development, Westbrook. This development confirms that there is appetite for building secure live-workplay environments – and I’m certain that there will be more like Westbrook developed to compliment the shopping malls springing up all over the provinces. Heading over to East London, I met with Robin Knott, who was equally positive about Buffalo City’s progress. Since the launch of

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the Call2Action campaign a little over four months ago, it has become apparent that the city is taking the initiative seriously. The city is being cleaned up – certainly from driving into the CBD from the airport,

one can see just by being held up by traffic that results from the roadworks that the city is determined to repair the roads. Still in East London, I talked to SAPOA’s Developer of the Year award-winner Terry Cook. It’s good to see that we, as SAPOA, are taking notice of our ”smaller” members. Cook is an independent commercial property developer, who has for the past 10 years stayed very much under the radar, preferring to work

on smaller, “more niche” developments. I asked her about the businesses in East London; from what she said, it would appear that larger corporations, while not moving out of the office space sector, are looking to consolidate their work space and bring personnel into a central environment – not dissimilar to what Sasol did last year, and what Discovery is doing in Sandton. In 2013, we reported on an exciting development, rejuvenation and reusing of an old quarry on Annandale Road in Gauteng. So while I was in Johannesburg, I decided to take a look for myself. Lord’s View Industrial Park has come on in leaps and bounds – and judging from its tenant mix, it’s set to be a great place to situate a logistics company. Energy-efficient and fibreoptic-connected, the infrastructure that has been put in ticks all the right boxes. Much is being said about how technology is going to change our working environment, so in this issue we touch on some of what IT can bring us – and how tech can help us to ride on air, should we so desire. In the April issue of the South African Property Review, we’ll focus on RICS as our professional association. Quantity surveyors, valuers, engineers and town planners will also come under the spotlight. As part of SAPOA’s continued drive to get exposure for its members, we welcome your input – especially from those members who recently joined the organisation. South African Property Review would like to get know who you are – who knows, perhaps you’ll find yourselves being featured in the magazine. Send your enquiries to mark@mpdps.com, and let’s talk! Mark Pettipher, Managing Editor


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affiliate news

WPN 2017 Conference: Think Big

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omen’s Property Network (WPN) hosted its third annual Leadership Conference on 10 February. The halfday conference, sponsored by Standard Bank, was targeted at women working across the real estate sector value chain. This year’s theme, “Think Big”, encouraged women to take an out-of-the-box approach to their role in the industry. This included the way they think, position themselves and transform the sector, not necessarily by just going big in the property sector or building big, but also through making a meaningful contribution to the sector. “It is our intention to provide our members with the tools needed to alter their business strategies, and enhance their businesses in order to be successful within the sector,” says Sandi Mbutuma, National Chairwoman of the WPN. Gugu Cele, a senior anchor at CNBC Africa, was the event host, and the line-up of speakers included

Roy Gluckman, a diversity and inclusion consultant; Nooraya Khan, Lead Independent Director at Delta Property Fund Limited; Jayshree Naidoo, Head of Standard Bank Incubator; and Mandy Ramsden, Director and shareholder at Questco. The conference programme also included several panel discussions with leaders in the real estate sector, including Busi Nzo, co-founder and partner at Lakhanya Quantity Surveyors; Madeleine Truter, legal adviser at Setso Property Fund; Noluthando Moloa, Associate Director at Turner & Townsend; Sanam Shree, Chief Strategy & Investment Officer and HR Director for Shree Property Holdings; Melanie Hawkin, social entrepreneur and founder of Lionesses of Africa; Margaret Hirsch, Chief Operations Executive of Hirsch; Fundi Mazibuko, Director of Marketing & Business Development at FullServe; Dorah Modise, CEO and Chairperson of the GBCSA; and Lusanda Netshitenzhe, Development Impact Manager at TUHF.

The SA Institute of Black Property Practitioners supports land reform

Vuyiswa Mutshekwane, SAIBPP CEO

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he South African Institute of Black Property Practitioners (SAIBPP) supports the call at the recent State of the Nation Address (SONA) for land reform, and expediting the transformation of the property sector. The organisation does, however, caution that this will require actionable programmes and clearly defined time-based implementation strategies to guarantee success. President Zuma’s recent SONA highlighted a number of important economic policy shifts and pronouncements. The term “radical economic transformation”, as reiterated several times during the SONA,

is firmly entrenched in our day-to-day political rhetoric. It is key to note that without the support of a solid implementation strategy and measurable targets, it is unlikely that we will see results in either the short or medium term. SAIBPP is encouraged by the pronouncements on and the commitment to prioritise the transformation of the property sector by reviewing the Property Practitioners Bill, which addresses land reform, and expediting access to housing. Notably, private residential property ownership accounts for only half of the value of the property sector. The commercial sector still remains frighteningly untransformed, with less than 10% being black-owned, managed and controlled. Currently less than 10% of the buildings occupied by government departments are black-owned, managed and controlled, resulting in 80% of government lease spend going to B-BBEE-compliant but untransformed companies.

Positive aspects associate with an infill development: Urban Studies I

n the market research conducted by Urban Studies, the approach for the Mall of Africa was to regard this particular site and area as an infill development. There are a number of positive aspects associated with an infill development. The most important are that the centre is already surrounded by a large number of residential units (in the case of Mall of Africa, more

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than 100 000 middle-class and affluent households), the infrastructure in terms of roads is already well established, and the centre is also located in an area where at least 30 000 new houses will be built within the next 10 to 15 years. Shopping behaviour takes time to change, and in the case of a large super-regional centre such as the Mall of Africa, the change in shopping behaviour

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will take up to five years. During this period, many new businesses will be established at Waterfall City, and a large number of new housing units will also be completed and occupied. The main challenges for the Mall of Africa would be to attract and retain new shoppers to become loyal, dedicated Mall of Africa supporters. There is very strong competition around the Mall of Africa, and a further

challenge would be to offer something unique, and attract shoppers by offering a different shopping experience. The main question is how successful this new city will be during the next major growth phase. The focus will be to strengthen the residential sector, grow the office market and ensure that retail tenants go through a steep initial growth phase much more quickly.


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affiliate news

industry news

SAIV extends hand of collaboration to neighbouring country

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he South African Institute of Valuers (SAIV) and the Real Estate Institute of Zimbabwe recently signed a Memorandum of Understanding (MoU). The purpose of the MoU is to engender strong relationships between the two associations. Industry best practice, education and collaboration are highly ranked on both entities’ agendas. The MoU speaks to information sharing, training, conferences and market research, but first

and foremost to the creation and adoption of high-level, principlesbased international standards to help the profession to achieve consistency and quality while advancing the public interests. To this end, the SAIV made the International Valuation Standards 2017 (IVS2017) – the key guidance for valuation professionals across the world that will underpin consistency, transparency and confidence in valuation – available to all their members.

Otis President for Europe, Middle East and Africa Patrick Blethon with Managing Director: Africa & South Africa Daniel Daphne

Otis sets its sights on Africa

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ultinational manufacturer and maintainer of peoplemoving products (including elevators, escalators and moving walkways) Otis says it wants to create an African hub for its products by the end of 2018. The company said it was trying to develop expertise in Africa to reduce the continent’s reliance on France and China for goods and services. As part of its programme to create skills in African markets, Otis is managing an academy to train aspirant mechanics.

The allure of green building warms up as the globe heats up

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he built environment has a major role to play in climatechange mitigation, and more and more South African property investors are rising to the challenge with positive impacts on the environment and their businesses. This is the word from the Green Building Council South Africa (GBCSA) in light of the World Meteorological Organisation’s (WMO) recent announcement that 2016 is now the hottest year on record. Record-keeping began in the 1880s, and 2016 set a new global heat record for the third year in a row. This means that 16 of the 17 hottest years on record have occurred since 2000. For its calculations, the WMO combined global temperature datasets from various reputable sources across the globe. Despite their different data methods, all agencies agree that 2016

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continued the trend of global warming that's been persistent since the 1970s. They concur that by pumping greenhouse gases into the atmosphere, human behaviour is warming the planet in the long term. “The good news is we can change our behaviour. In fact, we already are,” GBCSA Chief Executive Officer Dorah Modise. “The property sector knows it has a substantial contribution to make in rapidly reducing emissions. It is taking action by designing, building and operating buildings in ways that are better for the environment.” So far, 230-plus formal green building certifications have been achieved in South Africa. “We believe this is only the beginning,” says Modise. “There is much more to come. We have already started doing what needs to be done. Now, we need to do it more – and do it better.”

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In 2016, 74 people signed up in South Africa and 21 have graduated from the programme. “By the end of 2018, we would like to have specialised regional hubs that can locally address our customers with our service and products in SA and for the rest of Africa,” said Otis’s African MD, Daniel Daphne. Otis’s most recent coup was its appointment as the lift and escalator provider for the iconic Sasol headquarters in Sandton, Johannesburg.

Robust UK property market provides shelter from EU storms

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ncreased uncertainty in the European Union this year will have a positive effect on the UK, making it a more attractive property investment destination than its European counterparts, according to global property investment firm IP Global’s Director of Africa George Radford. “The future for the single market is very uncertain,” he says. “This continued uncertainty will have a favourable effect on the UK, which has attracted more

than £15-billion in foreign investment since it voted to leave the EU. Should any of its European counterparts make a similar decision, they will have to unravel their currency from the euro. The UK, which retained its sovereign currency, is in a stronger position on exit.” A recent World Bank report ranks the UK as the seventh-best country in terms of the ease of doing business, while Germany is ranked 17th and France 29th.


industry news SAPOA actively participates in the municipal integrated development planning process 2017/18 – 2021/2022

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ntegrated Development Planning (IDP) is defined by the Municipal Systems Act No. 32 of 2000 as the principal strategic planning instrument that guides and informs all planning and development, and all decisions with regards to planning management and development. In essence, the IDP is a short-to-medium-term strategic plan developed by the municipality in partnership with its citizens (stakeholders) in order to direct appropriate resources to key municipal performance areas for the purposes of justifiable social and economic development. SAPOA, in alignment with its mission statement, is actively participating in the 2017/18 IDP process at a regional level, with planning consultants appointed to assist with the engagement on the following municipal areas: Polokwane Municipality, City of Jo'burg Municipality, eThekwini Municipality, Buffalo City Municipality and the Nelson

Mandela Bay Municipality. SAPOA Western Cape (with focus on the City of Cape Town Municipality) and Mpumalanga (with focus on the Mbombela Municipality) regional offices is also participating in this process through committee representatives. The key municipal performance areas targeted by the IDP are spatial analysis, service delivery, local economic development, municipal transformation and organisational development, municipal financial viability, good governance, and public participation. All these are important to the property sector. The IDP is a fiveyear plan (aligned with the municipal elections period), and is reviewed on an annual basis, subsequent to a 10-month process. The current IDP process was initiated in September 2016 and, once approved, it will be implemented from 1 July 2017 to 30 June 2018.

SAPOA re-appoints Rates Watch to monitor rates policies

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ising municipal rates and taxes are a hot-button issue – one that not only negatively affects operating costs and gross rentals, but also makes demands on property management resources. To this end, SAPOA has re-appointed specialist consultants Rates Watch on a five-year contract to monitor rates policies. Rates Watch will continue to focus on unearthing municipal budget information on key property-related costs, such as rates and taxes, electricity or water in South Africa’s 11 largest municipalities. It’ll be responsible for identifying, analysing and collecting information on relevant municipal policies and legislation, as well as the municipalities’ Medium-Term Revenue and Expenditure Frameworks, at 11 of the largest metropolitan municipalities in South Africa. These municipalities include City of Cape Town, Nelson Mandela Bay Metro,

Buffalo City, Mangaung, eThekwini, Msunduzi, Ekurhuleni, City of Johannesburg, City of  Tshwane, Polokwane and Mbombela. SAPOA represents member companies and organisations in the commercial property sector and, as CEO Neil Gopal points out, “SAPOA members contribute significantly to the rates base. We believe it to be in the interest of both ourselves and municipalities across the country to partner on this matter. As a sector, commercial and industrial property wants to contribute in a positive way towards efficient functioning of municipalities.” SAPOA has, in the past, been vocal in challenging the legality of increased municipal rates charged to its members. “Our primary goal is to alert our property owner and investor members of any changes in property-related municipal costs that could impact them,” says Gopal.

Solutions to address South Africa’s housing crisis

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ince the dawn of democracy and the introduction of the RDP housing programme in South Africa, the government has constructed upwards of three-million housing units. In 2011, state-subsidised housing stock was estimated to make up 24% of all residential deeds registered in the country. In a report published by the Centre of Affordable

Housing in Africa, 3,8million households or 28,8% of all occupied units earned a household income of between R3 500 and R10 000 per month. This figure represents those who fall squarely in the housing “gap”, with many still waiting to enter the formal housing space. For the three-million more people who do not

have access to formal housing, their salaries deny them the opportunity to qualify for an RDP house – yet they are not enough to be approved for a 100% home loan. Pension Backed Housing Loans is an alternative form of housing finance, where the loan is secured by the member’s retirement-fund savings instead of a mortgage bond.

Musa Group CEO William Jimerson

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industry news International construction contract changes expected in 2017

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ew FIDIC contract documents are under development by the International Federation of Consulting Engineers to significantly reduce uncertainty for construction contractors and employers. The FIDIC suite of construction contracts is commonly used in South Africa, particularly the Red Book-adapted versions used by SANRAL and Eskom. Sixty years after the first contract document was published by FIDIC (the Red Book), the rainbow suite of standard construction

contracts is due to be published in 2017. A revised version of the Contract for Dredging and Reclamation and the White Book (the Model Services Agreement) will also be published shortly. A completely new contract document has also been drafted specifically for tunnelling and underground works. Called the Emerald Book, this should be ready for publication in 2018, according to Ian Massey, Director at MDA Consulting, who has recently returned from the FIDIC International Contract Users Conference in London.

Good for the environment and creating jobs: Cornubia’s win-win rehabilitation solution

Bongani Gumede, Tongaat Hulett Developments Corporate Director, with Louise Duys, Wildlands Director of Partnership, Marketing and Events

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iparian areas – the strips of land on either side of a river – are an important element of healthy rivers. They provide essential habitats for wildlife while also acting as buffers between upland areas and open water. Having the correct plants in place assists in filtering pollutants from the water and provides

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a barrier to erosion. The shade afforded by the vegetation helps to reduce water temperatures which, in turn, leads to better oxygen levels to support aquatic animals. “Years of human settlement, including sugar-cane farming, have left the banks of the Ohlanga River in Cornubia degraded and filled with alien plants,” says Bongani Gumede, Corporate Director of Tongaat Hulett Developments. “We recognise the importance of a healthy riparian zone. For this reason, we’ve teamed up with Wildlands Conservation Trust to rehabilitate the stretches of land on either side of the river.” “By removing the alien vegetation and replacing it with indigenous flora, we can restore the valuable habitat to its original state,” says David Moldenhauer, Strategic Manager: Technical Support of Wildlands.

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Allen Swiegers joins Atterbury Property Fund board of directors

Allen Swiegers

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tterbury Property Fund has appointed Allen Swiegers as the new Chairman of the Atterbury Property Fund Board of Directors. Positioned to add value to Atterbury’s newly launched real estate holding fund, Swiegers’s esteemed career started 33 years ago with Deloitte after he completed a BCom degree,d a BCom (Hons) (Acc) and CTA at the University of Pretoria. Swiegers joined Deloitte

in 1984 as a trainee accountant, where he successfully completed his board exam that same year, joining the partnership only four and a half years later. His career at Deloitte included a succession of senior positions, starting with taking charge of its Pretoria office in 2000, where he served many private-sector and publicsector institutions, including prestigious clients such as Vodacom and Steinhoff. Swiegers also served as a Deloitte board member and on the Executive Committee in 2005, as Chief Operating Officer of Deloitte Southern Africa, and then as COO of Deloitte Africa.

Atterbury builds a vibrant new base for SA’s legal community at The Club Advocates’ Chambers

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ffering advocates the opportunity to own or rent offices in a modern urban precinct with a live-work-play lifestyle, Atterbury is developing The Club Advocates’ Chambers in Pretoria. Working hand in hand with a group of advocates from the city, the leading South African property investor and developer is building bespoke office space of about 6 000m² for about 120 advocates. And, in a trailblazing move, Atterbury is giving the advocates the

The Club Advocates’ Chambers aerial view

option of sectional title ownership of their own offices. Atterbury has already started construction on the new office development at the landmark The Club, with the fourth of five buildings that will ultimately comprise the prestigious precinct. The Club precinct is already home to 14 400m² of vibrant retail, restaurant and office space in Club Retail and Club One. The 5 200m² Club Two is also under development and will house a Planet Fitness gym and offices.


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industrial news

Corobrik face bricks combine to create attractive housing development

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ore than three-million of Corobrik’s quality face brick products were used in the construction of  The Junction @ Forest Hill in Centurion. The 440-unit rental housing development in Heuweloord has just been completed by Central Developments to meet the growing need for well-constructed housing in the R5 000 to R7 000 rental price range. “There is a huge demand for affordable rental properties in the Centurion area,” says Schalk Eagar, project manager for Central Developments. “The site was selected because of its proximity to Forest Hill Mall as well as major highways in the vicinity.” The Junction @ Forest Hill consists of 20 four-level blocks with a total of 440 apartments. Each unit has two bedrooms and one bathroom with modern interior finishes, letting from R5 600 to R6 200. C The development also includes three children’s play areas, a laundromat M and 24-hour security for all residents. Y

Ballito Junction Regional Mall Urban Eatery sets a new standard for mall dining and entertainment

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allito Junction Regional Mall Urban Eatery is unlike anything South Africans have experienced before, taking mall dining and entertainment to an entirely new level when Ballito Junction opens on 23 March 2017. Ballito Junction Regional Mall is the major expansion of an existing 10 000m² shopping centre. It is increasing in size to a whopping 80 000m² of contemporary retail space with a complete selection of more than 200 shops, restaurants and services. Owned and developed by the consortium of Menlyn Maine Investment Holdings and Flanagan & Gerard Property Development & Investment, Ballito Junction Regional Mall is an extraordinarily intricate development in many ways, especially as a result of the layout of the land it is being built upon. “It takes a unique vision to transform the complexity of this project into an opportunity that both harnesses and enhances its surroundings to create an unmatched platform for an exceptional shopping and leisure experience,” says Carl Jankowitz, Director at Menlyn Maine.

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legal update

Competition Commission retail market inquiry – Massmart complaint By Mumtaz Moola

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he Competition Commission received a number of complaints regarding exclusivity clauses in the industry. As a result of the complaints it received, the Commission elected to conduct a market inquiry into the grocery retail sector. On 30 October 2015, the Competition Commission, in the exercise of its powers under the Competition Act No. 89 of 1998, published a notice that it would conduct a market inquiry into the grocery retail sector. The official commencement date of the inquiry was 27 November 2015; it is expected be completed by 29 May 2017. The Commission may, however, by notice in the Government Gazette, amend this time frame. Massmart chose not to wait for the conclusion of the retail market inquiry; rather it elected to proceed with its complaint (hearing) against Shoprite, Pick n Pay and Spar (retailers) to the Competition Tribunal. On 11 June 2015, Massmart referred its complaint against Shoprite, Pick n Pay and Spar (retailers) to the Competition Tribunal, following the Commission’s decision to “non-refer” the matter due to the market inquiry. In other words, because the issue is of great significance to Massmart’s plans to expand in the grocery market in SA, it was not willing to wait for the outcome of the Commission’s market inquiry, but has chosen rather to ask the Tribunal to decide on the lawfulness (alleging anticompetitive behaviour) of these clauses.

Issues raised by parties with regards to exclusivity clauses in lease agreements Interesting to note is the submission made by the Centre for Competition Research and Economic Development (CCRED), which makes reference to a SAPOA survey that was completed in 2012 (in which 15 property owners were interviewed). It is submitted the survey indicates that 94% of property owners were of the view that they would prefer not to have exclusivity clauses in their lease agreements. A range of reasons for this view is also given. Further, 56% of property owners were of the opinion that “exclusivity clauses had no benefit (presumably to property owners) and were actually detrimental to the management of their assets”.

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Reference is also made in the CCRED submissions to SAPOA’s complaint regrading exclusivity clauses. Spar – In Spar’s submission, the company indicates the following points of interest regarding exclusive leases: lease agreements are on average for an initial period of 10 years, often with an option to renew. Most Spar retailers are located in small developments and require long-term leases to secure financing. Approximately 30% of Spar’s stores are subject to exclusivity clauses in lease agreements. Spar estimates that most retailers take approximately three years to break even and then need to earn a return on their investment. Spar stores are subject to exclusivity arrangements in order to reduce the risk of opening a new store.

The retailers each argued that the substance of Massmart’s complaint referral does not meet the strict procedural and content requirements to allow the respondents to deal with the complaint Woolworths – Woolworths submits that exclusive lease agreements should only endure for the period necessary to recover a retailer’s initial investment, and that they should be for no longer than five years. Massmart – The section of Massmart’s submission in relation to exclusive lease agreements is very brief. Massmart did, however, also refer to (and attach a copy of ) its complaint referral that is currently before the Competition Tribunal. The short submission states that exclusive lease agreements are anti-competitive, and that they prevent entry and expansion by new retailers into areas where the three large retailers are incumbent.

Pick n Pay – Pick n Pay provided a lengthy and detailed submission, which includes the following points on exclusive leases: exclusive lease agreements have not diminished competition between large grocery retail chains. Because Pick n Pay sets its prices on a national basis, there is no reason to believe exclusive leases have an impact on prices set in particular stores. Informal retailers are not generally affected by exclusive lease arrangements. From a competition law perspective, the appropriate manner in which exclusive leases should be assessed is to determine appropriate parameters of the relevant geographic market and whether exclusive lease arrangements substantially prevent or lessen competition. Based on previous decisions of the Tribunal, a relevant geographic market would be within a two- to five-kilometre radius, and in certain cases would be within a 10- to 30-kilometre radius.

Massmart’s complaint referral The retailers each argued that the substance of Massmart’s complaint referral does not meet the strict procedural and content requirements to allow the respondents to deal with the complaint. Massmart conceded that its pleadings needed to be improved in respect of the abuse of dominance allegations. However, Massmart argued that it makes out a proper case in terms of Section 5, regarding vertical restrictive agreements. The focus of Massmart’s allegations of vertical restrictive agreements was clarified as being a “network of exclusive lease agreements” in South Africa, which together have the effect of substantially lessening or preventing competition by impeding Massmart from competing in the national market for fresh groceries. Although the principle of a network of agreements has been recognised in European case law, there was some debate as to whether this type of case fits within the parameters of Section 5 of the Competition Act. Counsel from both sides submitted that where pleadings are found to be defective, the usual position is to grant the party an opportunity to rectify its pleadings and only where pleadings are irremediable should they be struck out.


legal update

Massmart acknowledged in the hearing that its abuse of dominance complaint under Section 8 of the Competition Act needed to be reconsidered and amended. The Tribunal’s main reasons for upholding the exceptions to Massmart’s Section 5(1) complaint included that: ● The complaint is vague and embarrassing in that it is not coherent and consistent. ● Massmart is required to provide allegations of material facts to support its assertions on market definition and anti-competitive effects.

Current status Massmart elected to file an entirely new affidavit, as opposed to amending or reworking its original affidavit. To be clear, the attached founding affidavit replaces the referral affidavit of June 2015 in its entirety. The most substantive change is that the referral no longer alleges contraventions of the Section 8 abuse of dominance provisions of the Competition Act. It focuses solely on a Section 5(1) vertical agreement contravention. This is not surprising, given Massmart’s concessions (in relation to its abuse of dominance allegations) at the hearing of the respondents’ exceptions. We note that although the Competition Tribunal may not impose an administrative penalty for a first offence of Section 5(1), it is entitled to impose the type of relief sought by Massmart. The relief sought has been amended to exclude a declaration that the exclusivity provisions in the agreements are null and void. This is presumably for practical reasons. The request for an interdict and declaration of a prohibited practice are still sought.

Relevant markets defined Massmart has defined the relevant markets more thoroughly and – importantly – more specifically to meet the requirements of a vertical agreement contravention. This type of agreement naturally involves an upstream market and a downstream market. ● The downstream market is defined as the market “for the retail supply, by stores located in shopping malls, of a wide range of fresh grocery products and non-perishable grocery products” (alternatively, not limited to stores in shopping malls). ● The upstream market is defined as the market “for the supply of retail space in shopping malls that is suitable in character for use as a store that offers a wide range of both fresh and non-perishable grocery”.

In short, Massmart alleges it is hindered from competing in the downstream market through the various exclusive lease agreements in the upstream market. It also briefly mentions that the agreements have an anti-competitive effect both individually and cumulatively. Massmart was due to file its amended complaint referral. It failed to meet the initial

● Instances where exclusive lease agreements were not waived and where a competing retailer was not allowed to trade in a shopping centre or mall; and ● Instances where small businesses have been excluded from trading in shopping centres and malls because of exclusive lease agreements. Topics that have previously been raised by the Commission and are again raised include: ● The prevalence and duration of exclusive lease agreements; ● The role of financiers in these agreements; ● The extent to which exclusive lease agreements have: ◆ excluded small businesses and large competitors or potential competitors, ◆ contributed to the high-level of concentration in the market, and ◆ benefited or harmed consumers, and led to increased or decreased efficiencies.

Massmart elected to file an entirely new affidavit, as opposed to amending or reworking its original affidavit. To be clear, the attached founding affidavit replaces the referral affidavit of June 2015 in Additional suggested topics its entirety In addition to the issues identified by the deadline and was given an extension. It then requested a second extension during the holiday period. All of the parties agreed to this, except for Shoprite. Shoprite has insisted that Massmart bring a formal condonation application for failing to meet the deadline. The hearing for the condonation application was held on 21 February 2017. (At the time of writing, it was expected that Massmart would be successful with its application, following which proceedings will continue as usual.) The next phase of the Grocery Retail Sector Market Inquiry – public hearings – will be held during February and March 2017 in Pretoria, Cape Town and Durban. The market inquiry team has invited all consumers, retailers and other interested parties to participate in the hearings. In addition to the topics that the Commission has previously raised, the team now specifically invites comment and information on the following: ● Justifications for the exclusive lease agreements entered into between property developers or landlords and supermarket chains, including justifications for the duration of the exclusive lease agreements; ● Instances where exclusive lease agreements were waived and a competing retailer was allowed to trade in a shopping centre or mall;

Commission for submission, the Commission is looking for suggestions as to how exclusive lease agreements could be best handled in the future. For example, suggestions would be welcome on: ● How, from a practical point of view, current exclusive lease agreements could be phased out or adapted, if found to be anti-competitive; ● What limitations, if any, should be imposed on new lease agreements regarding exclusivity, which will deal with the requirement of the financiers, developers and anchor tenants while still ensuring competition in the development.

This legal opinion is only a guide and should not be copied with the expectation that it will serve specific individual circumstances. Most of these recommendations have not been tested in our courts. SAPOA cannot guarantee any success in any court if any of these recommendations are put to use. SOUTH AFRICAN PROPERTY REVIEW

13


planning and development

The Department of Rural Development & Land Reform’s progress update on the implementation of SPLUMA SPLUMA creates Background reform of a complex a coherent The legislative environment allocation of for Spatial Planning and powers and Land Use Management (SPLUM) in South Africa functions between remains a challenge. The the political and current complexity is attributed the legacy of a regulatory administrative to framework and its inherited components systems and practices that of a municipality were used as instruments

One of the key objectives of the Act is to provide for a uniform, effective and comprehensive system of spatial planning and land use management 14

to implement the policies of the previous government. The complexity and inefficiency of this regulatory framework was confirmed in the White Paper on Spatial Planning and Land Use Management (White Paper on SPLUM, 2011). The impact of apartheid on the development of South Africa is evident in a spatial pattern that is discriminatory, inefficient, unequal and costly, and this problem is deeply entrenched (NDP 2011). The apartheid spatial and socioeconomic legacy has proven difficult to unravel in all types of settlements. South Africa’s cities, towns and settlements still require restructuring to reflect the priorities and principles of a democratic government. The challenges highlighted above remain unresolved despite various initiatives by the government, and one of the key challenges inhibiting efforts is that the legislative environment for spatial planning and land use management remains unreformed. The legislative environment is characterised by fragmentation with the existence of multiple laws and often the duplication of functions caused by parallel

SOUTH AFRICAN PROPERTY REVIEW

and conflicting legislation (NDP 2011). The introduction of the Spatial Planning and Land Use Management Act No. 16 of 2013 (SPLUMA) has heralded in a new dispensation for planning in South Africa. It is the first single national and integrated planning law that clearly sets out a new planning system in South Africa. The Act has introduced new responsibilities for each sphere of government to execute to ensure effective, efficient and sustainable spatial planning and land use management in the municipal space.

A new era The Spatial Planning and Land Use Management Bill was assented to the President on 2 August 2013, and gazetted on 5 August 2013 as the Spatial Planning and Land Use Management Act. It came into operation on 1 July 2015. The final Regulations to SPLUMA were gazetted on 23 March 2015 and came into operation on 30 October 2015. SPLUMA creates a coherent allocation of powers and functions between the political and administrative components of a municipality, and further introduces a new regime of land use regulators who are responsible for making decisions on land development applications and disposing of appeals against land development application decisions. One of the key objectives of the Act is to provide for a uniform, effective and comprehensive system of

spatial planning and land use management. The enactment of SPLUMA has brought about several fundamental changes in spatial planning and land use management. Some of the most important include: ●● The reiteration of the sole mandate of municipalities where municipal planning (land development, land use management) is concerned, placing municipalities as authorities of first instance invalidating inconsistent parallel mechanisms/systems; ●● The establishment and composition of Municipal Planning Tribunals and appeals structures by municipalities to determine and decide on land development applications with options for the tribunals and appeals structures to be created based on capacity; ●● The development of a single and inclusive land use scheme for the entire municipality with special emphasis on municipal differentiated approach and the development of respective Spatial Development Frameworks by all three spheres of government, norms and standards guided by development principles. (DRDLR 2013) The change from current disjointed approaches to spatial planning and land use management to the integrated system as espoused in SPLUMA is a watershed in the history of spatial planning and land development in South Africa. The diagram opposite provides an overview of the contents of the Act.


planning and development

The SPLUMA will assist in achieving the following: ● Economically – promoting investment in land development and establishing sufficient certainty in the land market; ● Spatially – addressing the segregated and unequal spatial patterns inherited from apartheid; ● Environmentally – balancing the country’s socioeconomic needs with those of environmental conservation; ● Service delivery – improving and supporting infrastructure and service delivery initiatives.

The implementation of the SPLUMA Prior to the SPLUMA being brought into operation, the Department of Rural Development and Land Reform (DRDLR) undertook intensive consultation with key stakeholders to make municipalities aware of their responsibilities in terms of the SPLUMA.

The initial focus for readiness of the implementation of SPLUMA was on the development of municipal by-laws and the appointment of Municipal Planning Tribunals (MPTs). The DRDLR, in ensuring that municipalities were ready for the implementation of the SPLUMA, undertook several initiatives, as detailed in the table on the right. The immediate focus areas for the implementation of the SPLUMA are as follows: ● Establishment of Land Use Regulators, including MPTs and appeal authorities; ● Development, customisation and gazetting of SPLUMAcompliant municipal by-laws; and ● Delegations, tariffs and interim measures. On the next page is a summary of SPLUMA implementation across the country up to January 2017 in terms of the above criteria.

Type of support provided

Details

Development of model by-laws

The DRDLR supported the development of model by-laws in six provinces, which included KwaZulu-Natal, Eastern Cape, Limpopo, Mpumalanga, Gauteng and North West. In most instances, support was also provided to customise these by-laws on behalf of municipalities. This process was, however, delayed in some areas because of a lack of legal capacity within those municipalities.

Development of generic council notices

Where the need was identified, the DRDLR also provided generic notices/council resolutions to ensure that processes were not delayed.

Funding for the gazetting of municipal by-laws

Many municipalities did not have sufficient budget to gazette their final by-laws, and the DRDLR made an amount of R20-million available for this purpose. However, only about 45% of this budget was utilised because of delays by municipalities in the finalisation of their by-laws.

Development of guidelines, tools and systems

In order to ensure municipalities are able to undertake their functions in accordance with the requirements of the Act, the department has developed guidelines for the development of SDFs and corridor development guidelines. The department is in the process of developing guidelines for the development of land use schemes. Further to this, a portal has been developed to facilitate information sharing.

Training programme

The DRDLR, in conjunction with the South African Local Government Association and provincial departments of cooperative government, has undertaken a joint training programme to prepare municipalities for the implementation of SPLUMA. Approximately 2 700 officials have been trained in the first 12 months. The training will be provided on a continuous basis and will also be focused on members of MPTs.

SOUTH AFRICAN PROPERTY REVIEW

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planning and development The graphs below indicate the percentage progress for the establishment of the MPTs in provinces, as well as the progress that the municipalities have made with regards to the finalisation of the by-laws.

in the financial year 2016/17. This programme is focused specifically on training MPTs. The department is also currently developing the training materials for councillors, appeals authorities as well as authorised officials.

◊ The lack of funding in the financial year 2016/17 to prepare and gazette by-laws; ◊ Delays in municipal council decision-making; ◊ Participation of the Institution of Traditional Leaders.

Conclusion The implementation of the SPLUMA remains a priority for government and is still in its initial stages. The Act is now in operation for approximately 19 months, and progress has been made despite the challenges that exist. The implementation process is also being used to understand whether the planning system as espoused in the SPLUMA works, and what needs to be changed and addressed.

The maps on the right indicate the progress made by the municipalities with regards to the preparation of tariffs and the progress made with regards to the finalisation of delegations. In addition to the above, the DRDLR, in conjunction with the South African Local Government Association and provincial departments responsible for planning, rolled out the first phase of the SPLUMA training programme in eight provinces for the implementation of SPLUMA. The total number of officials trained was 2 108 in the financial year 2015/16. The DRDLR rolled out the second phase of SPLUMA training in the Free State, Eastern Cape and Limpopo

16

SPLUMA implementation challenges Despite the support initiatives provided by the Department in conjunction with its provincial partners and the continuous engagements with municipalities, the journey has not been without its challenges. These include: ● Capacity challenges across all three spheres of government. ● Rationalisation of old order legislation (some laws that are assigned to or managed by provinces still remain in operation). The finalisation and adoption of the by-laws has been slow in some provinces as a result of the following:

SOUTH AFRICAN PROPERTY REVIEW

It is envisaged that the SPLUMA will be amended to deal with any gaps that were unforeseen. While it is agreed that the SPLUMA is not the panacea that will address all the challenges created by a system that is deeply entrenched, it is a first step towards an improved intergovernmental coordination and cooperation relationship. The Department is in the process of developing systems that will also assist in the monitoring of SPLUMA, and continues to put systems in place to ensure the effective implementation of the Act. This article was submitted by Rajesh Makan: Chief Director of Integrated Spatial Planning at the Department of Rural Development & Land Reform.


education, training & development

SAPOA partners with the EAAB towards continuing professional development By Portia Mkhabela

All of the above must be supported by a mini portfolio of evidence (SAPOA certificate, attendance registers, proof of payment). The following SAPOA courses can apply for non-verifiable CPD points.

Introduction to Real Estate (IRE)

5 days

Building Services (BS)

5 days

Facilities Management (FM)

5 days

certificate and the synopsis from the website as evidence. ● You can only claim a maximum of five points per category in one year, and each category can only be chosen once. By participating in the SAPOA activities, members can fulfil the requirements of the categories as indicated above ● Members could be sent an email about the EAAB and CPD, as well as how SAPOA helps individuals attain their CPD points every year.

Real Estate Investment Analysis (REIA)

5 days

Equivalence matrix

Commercial Real Estate Valuation (CREV)

5 days

Project Management for Property Developers (PMPD)

5 days

Real Estate Corporate Finance (RECF)

5 days

Real Estate Finance (REF)

5 days

Strategic Corporate Real Estate Management (SCREM)

5 days

Course

C

ontinuing professional development (CPD) refers to the process of tracking and documenting the skills, knowledge and experience you gain (both formally and informally) as you work, beyond any initial training. The CPD process helps individuals manage their own development on an ongoing basis. The CPD function is to help professionals record, review and reflect on what they learn. As part of SAPOA mandate, it is up to us to offer members value for money, and to ensure that we continuously strive to improve the image and standard of property management and development. SAPOA has reached an agreement with the Estate Agency Affairs Board of South Africa (EAAB) to offer our members non-verifiable CPD points as follows: Non-verifiable category programmes ● Professional development (elective, non-verifiable) – SAPOA workshops and offerings through Wits and the University of Pretoria listed on the SAPOA website ● Reading and publishing (elective, non-verifiable) – reading of SAPOA research reports and magazine ● SAPOA Convention (elective, non-verifiable) – attendance of the annual SAPOA Convention ● Personal development (elective, nonverifiable) – breakfasts or networking sessions hosted by SAPOA.

Duration

Management and Leadership in the Built Environment (MLBE)

4 months

Property Management Programme (PMP)

2 weeks (block session)

Property Management Programme (PMP)

1 year (part-time)

Property Development Programme (PDP)

2 weeks

Individuals are encouraged to apply for exemption directly to the EAAB, with regards to the qualification that appears on the EAAB matrix documents. For more assistance and procedures that must be followed when applying for equivalence exemption, email cpd@eaab.co.za or call 087 285 3222. SAPOA will still strive to work in collaboration with the EAAB to include the verifiable courses, and feedback on the process will be communicated in due course.

Workshop

Certificate for the Commercial 1 year (distance learning) Property Practitioner (CCPP) Property Financial Programme (PFP) Basic

2 days

Property Financial Programme (PFP) Intermediate

3 days

SAPOA workshops, breakfasts and seminars in 2017 The following are the requirements to claim the non-verifiable CPD points: ● In order to claim for the EAAB nonverifiable points, members need to choose this as their category on the EAAB portal and then use their SAPOA

The Method For Measuring Floor Areas in Buildings (MOMFA)

Duration Half-day

SANS 10400

1 day

Introduction to Brokering Seminar

2 days

Negotiation Skills Masterclass Programme (NSMP)

2 days

Property Finance Workshop

Half-day

Property Economics Workshop

Half-day

Property Law Workshop

Half-day

Asset Management Workshop

Half-day

Contact: Portia Mkhabela, Education & Training Manager at SAPOA t: +27 (0)11 883 0679 e: education.manager@sapoa.org.za

SOUTH AFRICAN PROPERTY REVIEW

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one on one

Meet South Africa’s newest “green” CEO The Green Building Council of South Africa (GBCSA) has a new CEO. South African Property Review caught up with Dorah Modise in Johannesburg – just one week into her appointment By Mark Pettipher

D

orah Modise is no stranger to the Green Building Council of South Africa, having served on its board since 2009. She is a sustainability specialist with more than 16 years of experience in the field, and previously served as a Strategic Executive Director for City Sustainability at the City of Tshwane. “I started there in 2013” she says. “My role in Tshwane was to initiate a city sustainability programme that will ensure a transition to a green economy and an efficient Climate Change Response mechanism implementable through all city departments. “The initial step was to develop a Green Economy framework that clearly articulated how the city will ensure a low carbon, resource efficient, and climate resilient economy that would still stimulate industrial innovation, and generate employment opportunities. Key priorities were identified and pursued, these include — diversification of the energy mix, implementation of systems geared towards enhancing efficiency savings in our service delivery models, city owned buildings, and in broader, economic development projects. “Cities are no doubt better placed to make a real dent in the sustainability space, and the appetite for real impact was also demonstrated through the mainstreaming of sustainability into the city’s water resource management systems, housing developments, and road and transport. The introduction of CNG buses, which are electric vehicles, as part of the city fleet, included a solar powered charging infrastructure. Part of the programme was to look at transit oriented development where development in the built environment would directly influence, or be influenced by, transport and connectivity infrastructure. Another key deliverable was the completion of the green building by law, making Tshwane the only municipality in South Africa that had such a by law. Its intention is to transform the built environment within the city through compliance of certain basic principles by property developers. “Prior to working with the Tshwane municipality, I worked with the National Department of

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one on one

Environmental Affairs (DEA), where I was the Head of the Sustainable Development division. The DEA is in charge of sustainable development and policy making in the country. A big part of my work was to develop and finalise the national strategy on sustainable development (which is in place), and the green economy strategy for working closely with key departments in the country, namely trade and industry, economic development, and the departments of energy, and public enterprises.” “One of my greatest achievements while at the DEA was the establishment of the National Green Fund, where I worked with the National Treasury and the Development Bank of South Africa,” Modise says. “Part of what was needed to put a boost on implementation of green economy programmes in South Africa was to have

“One of my greatest achievements while at the DEA was the establishment of the National Green Fund, through collaboration with the National Treasury and the Development Bank of South Africa.”

some sort of catalyst financing for green programmes and projects. As the government, we needed to establish a special fund that would get innovative green economy projects initiated, albeit at feasibility stages, with the aim of attracting conventional financiers to come on board for full funding of bankable projects. As its

first instalment, the National Treasury put forward an R800 million injection. It’s something I’m still very proud of today.” Speaking more about her career, Modise said, “I spent a short time at Eskom, as well, as a corporate sustainability advisor. Throughout my career, I’ve always been attracted to sustainability or the sustainable development field. “I was attracted to the work of the Green Building Council in 2009, when the GBCSA was still only 2 years old. I was impressed by the fact that in its first two years, the council gained a huge amount of traction in the education and green star certification offerings. From a national perspective, there was room for such an organisation — an industry driven organisation that’s not for profit, and non governmental, an organisation that would be able to objectively certify, and advocate for, green development within the property sector. “In 2011, South Africa hosted the 17th session of the United Nations Framework Convention on Climate Change (COP 17). I was responsible for the greening of COP 17 as well as South African local government participation. One of the initiatives I proudly got involved in was the Cato Manor green street programme spearheaded by the GBCSA. This collaboration enabled us to secure financial support from the British Council. This initiative saw the installation of green features to the entire block of houses within that residential area; these included lighting retrofits, insulated ceilings, food gardens as well as rainwater harvesting tanks. That pilot project attracted a lot of attention and was selected as one of the COP 17 legacy projects”. Taking lessons learnt from the Cato Manor project, Modise started a similar, albeit enhanced through size and features, project, on the eastern side of Tshwane — a project called The Tshwane Food and Energy Centre. “The conceptualisation of this project was stimulated by a need to demonstrate green economy implementation at a grassroots level, to not only make an impact on the lives of direct beneficiaries but also educate broader communities and development workers.”

“This project appeals to the humanitarian in me. Taking a small pilot programme implemented in KZN, it demonstrates how, by expanding it a bit, we can make a difference to communities by making them self-sufficient.”

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one on one

Dorah Modise, CEO of the Green Building Council of South Africa, with former CEO Brian Wilkinson

“We took a 150 hectare piece of land and built 26 production units comprising a housing unit, a chicken shed that can accommodate 1,000 chickens over an 8 week cycle, and a greenhouse for high value crops. In addition to these units, a central farm aimed at taking produce to the market was erected, as well as a market hall for direct retail on site. The housing units were fitted with rainwater harvesting tanks and solar water heaters, and the complex boasts a central borehole that channels sufficient water to all units, a state of the art septic tank system for sewage and wastewater management, a 100kw solar photovoltaic system as well as a biogas plant fuelled by biodegradable waste from the farming units, and sorghum planted on a 50 hectare piece of land within the centre. These features effectively rendered the Tshwane Food and Energy Centre as an almost closed system that ensures its residents live, work and play within the facility, and that there is no, or minimal, reliance on grid electricity and piped water. “This project appeals to the humanitarian in me,” says Modise. “Taking a small case study that we did in KZN, it demonstrates how, by expanding it a bit, we can make a difference to communities by making them self-sufficient. This pilot, done by the Tshwane municipality, cost about R40 million — and when you compare it with what any

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locality would traditionally spend on social housing, this project utilises a relatively low capital budget for benefits that go much further than just housing provision. “Often, social houses are located away from places

“For us, the objective at the end of the day is to transform the built environment towards longer term sustainability and reduced climate change impacts, while keeping our members engaged and relevant.”

of employment, resulting in residents spending a high percentage of what little income they have on transport. This model ensured the provision of houses, a place of employment and a business opportunity, all at the same time, and each household

becomes a business unit in its own right. Broader roll out of similar initiatives will have far reaching economic benefits. “That said, what’s exciting me right now is my current role at the GBCSA and where the GBCSA itself is at right now. We know that the GBCSA has seen tremendous implementation of green development principles, therefore translating into green star certifications across the different sectors, with the biggest uptake being in the commercial building sector. While we will continue to advocate for and support work in this area, there is a need to punt more for other areas, the first being the residential sector. “Now that we have a residential, and the EDGE, rating tools in place, we can push ahead and tap into the conventional residential market. These tools allow for certification of both the individual household and the multi-residential complexes (a mainly EDGE tool). A lot of energy will be put into advocating for transformation of this sector — the ultimate objective will be to have individual property owners and seekers driving the demand for green residential units. “While there is legislation in place, such as SPLUMA, and there are building codes around energy usage, these regulations are perhaps a bit too tight and restrictive,” says Modise in answer to a question I pose on how she feels about certain legislation. “If we can look at the different rating tools, bring in the building codes as well as the land use policies and regulations, and encourage the property industry to be more self regulating through pro active measures such as green star certifications, we can at the same time continue to advocate for the sector through our engagements and partnerships with key government institutions. “We would like to work more closely with bodies such as the NHRBC, SAPOA and CESA on the advocacy side of our industry. How do we ensure that whatever comes out of government in terms of what’s being legislated for the built environment is in line with what we are planning to put in? Our relationship with the National Department of Public Works and SALGA, for example, is very important in ensuring alignment between government programmes and our member expectations. “For us, the objective at the end of the day is to transform the built environment towards longer term sustainability and reduced climate change impacts, while keeping our members engaged and relevant.


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We’re not landlords. We’re people. SOUTH AFRICAN PROPERTY REVIEW

29


SONA

A draft of Property Practitioners Bill on the cards: Zuma Government is actively involved in the property sector, having provided more than four-million houses since 1994, President Jacob Zuma said at the State of the Nation Address By Stanley Karombo

T

he South African property sector is worth an astonishing R5,8-trillion. Residential property makes up around two-thirds of the value of property owned and has grown from an estimated R3-trillion in 2010 to R3,9-trillion. The study, which was compiled for the Property Sector Charter Council, is the first in the property sector since the inaugural report was published at the end of 2010. The 2010 report measured the size of the market at R4,9-trillion, which suggests the market has grown by almost R1-trillion in four years. “However, less than five percent of the sector is owned or managed by black people, and Africans in particular,” said Zuma. “A draft Property Practitioners Bill will be published by the Department of Human Settlements for public comment with the purpose of establishing a more inclusive, representative sector towards radical economic transformation.” SAPOA welcomed the President’s input on the property industry. “As a one of the leading – and the largest – property associations in the country, we would like to have an input in the draft Property Practitioners Bill,” said SAPOA’s legal consultant Mumtaz Moola, adding that there was a need for the bill and that her association “wants to be part of the comments and the drafting of the Bill”. According to the Department of Human Settlements, the new Bill will upgrade many of the practices for selling home property, set out provisions for the establishment of this new authority, re-emphasise and tighten up certain aspects of governance in the industry, regulate for property home inspectors/ surveyors, and regulate for their registration by the new authority before they can be part of any sale process. Where the big change will come, it seems, is in the area of generalised consumer protection, which it is proposed will fall under the common jurisprudence of the new authority rather than relate to the Consumer Protection Act. It is suspected that many more possible registered “home inspectors” than those who potentially exist at the moment will have to be trained and registered by the

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new authority before the current volume of sales can be processed. Meanwhile, among the key priorities this year, Government will address the increasing delays and backlogs in registration and issuing of title deeds to beneficiaries of housing projects funded by the capital subsidy. “We reiterate that radical economic transformation should mean moving beyond share ownership schemes only,” he said. Data from the Department of Human Settlements shows that 2  835  275 houses were built by the government between 1994/95 and 2013/14.

Jacob Zuma, President of South Africa

A further 95  210 were built in 2014/15, and 100  339 were build in 2015/16. Zuma could have been referring to the delivery of both houses and serviced sites. When serviced sites are included, the number of “housing opportunities” delivered rises to 4  060  795 as of 2015/16.

Undeveloped land: an opportunity to add value Around R520-billion worth of undeveloped urban land, which is zoned for commercial or residential development, is available in the country. Representing 1,1% of total land in South Africa, it has the potential to add a huge amount of value to the property sector if developed and utilised effectively,

says Portia Tau-Sekati, Chief Executive Officer of the Property Sector Charter Council. Of this land, R237-billion’s worth is currently in the hands of the public sector, with R102-billion held by the Department of Public Works, R66billion held by state-owned enterprises such as Eskom and Transnet, and R69-billion held by metros and municipalities. The remaining R283-billion belongs to the private sector.

Land Zuma also said it would be “difficult, if not impossible” to achieve true reconciliation until the land question was resolved. Arable land needed to be returned to black people, he said. “Only eight-million hectares of arable land have been transferred to black people, which is only 9,8% of the 82million hectares of arable land in South Africa.” He said there had been a 19% decline in households involved in agriculture, from 2,9million in 2011 to 2,3-million households in 2016. Zuma said he would be referring the Expropriation Act back to Parliament for more public participation so that they could continue to pursue land reform and land redistribution, in line with the Constitution. He also said that the government would continue to implement other programmes, such as the Strengthening of Relatives’ Rights programme, also known as the 50-50 programme. “In this programme, the farm workers join together into a legal entity and, together with the farm owner, a new company is established and the workers and the owner become joint owners,” he said. “To date, 13 proposals have already been approved, benefiting 921 farm-dweller households at a value of R631-million. We applaud farmers and farm workers for this innovation.” He also said that many black workers would be better off keeping the land they had rights to, rather than accepting deals for their land. Government would also commit itself to black farm owners, and would implement a commercialisation support programme for 450 black smallholder farmers, especially women.


IT and data

Investec Private Banking launches #MoreThanData In an age of increased reliance on big data and analytics, organisations are using broad brush-strokes to paint a picture of their customers and deliver generic financial services solutions. The concept of “customised” offerings is being lost to algorithms, averages, collective needs and pre-defined silos

By Stanley Karombo

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ata often gets the numbers right but the people wrong. For this reason, Investec Private Banking is offering an alternative perspective on bank-client relations with a new campaign, #MoreThanData, which focuses on the importance of individual needs, wants and preferences. Deon Katz, Investec’s Head of Private Banking (South Africa) explains: “Investec uses sophisticated data analytics as enabling tools,” he says. “But we don’t believe in a onedimensional approach where we place clients

“This approach is not new for Investec. This personal connection with our clients and an exceptional client experience is at Investec Private Banking’s core. It is something we have always been known for, and it continues to be our key differentiator. We believe in a client experience that is personal, flexible and simply out of the ordinary”

into rigid, defined boxes. It’s impossible for cold data to tell us who they really are. We take the time to get to know our clients personally and professionally, and form longterm relationships with them. This enables us to personalise our products and services, and ultimately ensures an extraordinary client experience.” The marketing campaign, launched on 7 February 2017 at Investec’s Sandton head office, drives home this #MoreThanData message across print, cinema, digital and social media channels. The campaign kicked off with three vignettes in which Luke Jedeikin, Abed Tau and Nothando Moleketi illustrate how data can only tell some of their story. Generalised assumptions are most often incorrect; people are so much more than what their data suggests or predicts. The main #MoreThanData film explains Investec’s philosophy that, while other banks might see clients as the sum of their data, Investec sees the individual. “This approach is not new for Investec,” says Katz. “This personal connection with our clients and an exceptional client experience is at Investec Private Banking’s core. It is something we have always been known for, and it continues to be our key differentiator. We believe in a client experience that is personal, flexible and simply out of the ordinary.”

Deon Katz, Investec’s Head of Private Banking (South Africa)

“Investec uses sophisticated data analytics as enabling tools. But we don’t believe in a onedimensional approach where we place clients into rigid, defined boxes. It’s impossible for cold data to tell us who they really are. We take the time to get to know our clients personally and professionally, and form relationships with them. This enables us to personalise our products and services, and ensures an extraordinary client experience” SOUTH AFRICAN PROPERTY REVIEW

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IT and data

ARCHIBUS provides intelligent

– and cost-effective – real estate software solution

ARCHIBUS provides the most comprehensive, intelligent and cost-effective real estate, infrastructure and facilities management software solution in the industry to lower its total cost of occupancy, which can improve asset utilisation and operational efficiency and increase shareholder value, says ARCHIBUS South Africa business development head JC Swanepoel By Stanley Karombo

JC Swanepoel, Head of ARCHIBUS South Africa business development

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RCHIBUS South Africa, which opened its doors in 2015, is a US enterprise, asset life cycle and information management company that is poised to assist statecontrolled departments manage their asset registers of movable and immovable assets with one system. “This will be done by linking information silos and diverse applications that support people, places and physical assets into a single source of the truth on enterprise assets,” Swanepoel says. The seamless, integrated solution of ARCHIBUS stays true to three principles: be empowered to get the job done, be mobile with information anywhere, and be easy to learn and use as a tool. To date, many countries and customers are using the system to their best advantage. ARCHIBUS’s global clients include more than 8 000 000 enterprise and web users, more than 44 000 customer sites, more than 22 000 000 buildings and properties managed, more than six-billion square metres managed, 30 years of industry experience, and 20 ARCHIBUS Solution Centres. ARCHIBUS has 1 700 business partners deployed in 120 countries around the globe.

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With more than 30 years of experience, the company has also spread its wings in Africa. The firm assists organisations in managing the total life cycle of their assets, including planning, acquisition, operations, maintenance, depreciation and disposal. In Africa, the company has a footprint in more than 7 000 000m² of space and 200 000+ buildings and properties managed, and is GRAP (asset and lease reporting-compliant) and utilised in more than 20 countries in Africa. “ARCHIBUS provides a unified, correlated view of real estate, infrastructure and facilities assets and costs so they are optimally aligned to support an organisation’s mission,” explains Swanepoel. The system is currently in use in 190 countries, with more than 44 000 customer sites worldwide. It has also been translated into 32 languages.

“ARCHIBUS provides a unified, correlated view of real estate, infrastructure and facilities assets, and costs so they are optimally aligned to support an organisation’s mission” The company also provides a common operating picture to view capital and operating expenses for the portfolio. According to Swanepoel, the system also provides data-driven management for toplevel managers using various standards and categories. The system evaluates the mix of leased and owned properties relative to space vacancy/occupancy/availability for specific buildings, sites, cities, regions, provinces or for the entire portfolio. The system also optimises the total cost of ownership, the total cost of

occupancy and the life cycle for real estate, infrastructure and facility assets. By comparing benchmarks and monitoring performance trends for assets that include structures, properties, buildings and equipment, he says the system bridges and fills the gaps between finance, HR, IT and traditional ERP systems. However, the true value of the ARCHIBUS system is derived from the meta-data capabilities, as any portions of the information can be drawn into the information displays, or dashboards, enabling companies to support employees with the data they require to fulfil their functions in real time. The system also assigns all assets to various company standards and categories, and enables likefor-like replacement. Managers have access to all the information about buildings and assets within their portfolios, displayed on a map as a geographic information system within which further details of assets and asset categories can be interrogated, including supporting documents. Because the system uses master-data categories to manage assets, it can easily calculate the cost per square metre, utilisation rates and return on investment of any type of asset or a combination of assets, with each asset category assigned specific values and depreciation rates. “The system provides a holistic, datadriven management solution where top-level managers set the various categories and standards, as required by regulations or company policy, which are then applied to all the corresponding categories and uses,” says Swanepoel. “Intelligent property portfolio management is a journey, but the benefits of such a system include real-time visibility of all the properties in a user-friendly manner and with an audit trail.”


SAPOA events

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development innovation

The Growthpoint Greenovate awards programme Growthpoint Properties, in collaboration with the Green Building Council of South Africa, has started a project to explore ideas for the development and establishment of a student awards programme By Stanley Karombo

Dion Chang, Keynote speaker at the 2016 Greenovate gala dinner, held at the Radisson Blu Hotel

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he programme, dubbed “the Greenovate awards”, is envisaged to introduce university students to green-building thinking, and recognises excellence in application. The Greenovate Awards programme is expected to provide opportunities for students who are finishing their degrees in property studies, construction studies and quantity surveying, to connect and interface with industry experts in sustainability. “These students are tomorrow’s leaders, who will take the green building movement forward and ensure it continues to innovate and inspire,” says Remy Kloos, Growthpoint Properties’ Sustainability Manager. “We want them to enter the market as advocates for green building, with a passion to create better and more sustainable cities, towns and neighbourhoods.” After being embraced by universities, the programme is poised to grow in leaps and bounds. The Greenovate awards competition

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will “target students in their honours year in the property, construction and quantity surveying departments,” says Kloos. The Growthpoint Greenovate Awards was piloted at the University of Cape Town, Wits and the University of Pretoria in 2015. Students were challenged to come up with ideas that would result in a research project to promote a more sustainable built environment. Their projects could be applied to any aspect of a building, including design, development, planning, construction and materials – anything that makes the way we live greener, and our environmental footprint lighter. The top two performers from each institution competed against one another for a grand prize of R30 000. The 2016 grand prize included a R30  000 cash prize and the opportunity to present at the annual GBCSA convention (tickets, flights and accommodation included). The second and third prizes included a R15  000

and R10  000 cash prize respectively, along with GBCSA convention tickets. The intention behind this programme is to expose the students to key focus areas concerning sustainability within the industry, and to introduce industry leaders to the talent available to them. It also acts as a platform for Growthpoint to recruit students for graduate programmes and internships, culminating in potential job opportunities. Everyone wins when innovation for a greener, healthier, more sustainable environment is nurtured. The students’ smart and inspiring thinking shows how we can drive green-building thinking forward to ensure a better, greener future. Growthpoint sees the programme becoming much bigger than it is now. After the pilot in 2015, the University of the Free State and the Nelson Mandela Metropolitan University were added in 2016. “Growthpoint is excited at the potential of this programme,” says Kloos.


development innovation The benefits of participation go beyond winning the first prize. The programme also provides students with an opportunity to work with leading industry thinkers and potentially exposes them to exciting employment opportunities. It gives leading companies direct access to real talent. The feedback from the students involved in the pilot programme and the 2016 programme was very positive – they thanked Growthpoint and the GBCSA for setting up the initiative. Students are also exposed to the Green Star SA Accredited Professional programme (GSSA AP), which is made available to entrants at a discounted student rate. The aim of the latter is also to educate honours-level students as well as possible in green building principles. This includes awareness of South Africa’s own Green Star SA rating system, and involves a supported online course as well as a face-to-face workshop. On completion of the GSSA AP programme, students will have the option of completing the online exam and becoming a GSSA AP. The awards programme encourages students to learn about green building and sustainability early in their career, so that the next generation of property professionals can have many positive impacts on our urban environment, which will benefit all South Africans hugely. Investing in the youth is investing in our future. The built environment has a major impact on the environment and sustainability. With the Greenovate Awards, we want to recognise excellence and innovation in students’ own understanding of green principles for the built environment, across all aspects and disciplines. The aspiring young professionals have the potential to transform the way we live, with gentler impacts on the world around us. The Greenovate awards will link environmental challenges to innovative thinking through a programme that was designed to inspire and encourage students of the built environment. To date, the Greenovate programme has enlisted the expertise of the following industry experts to sit on the judges’ panel: GBCSA Chief Executive Officer Brian Wilkinson; SAPOA Chief Executive Officer Neil Gopal; SAPVIA Chief Executive Officer Moeketsi Thobela; Thulani Kuzwayo, Managing Executive: Public Sector at the GBCSA; Tesla Business Development Manager Evan Rice; Martin Smith, Technical Director: Buildings at Aurecon; Mike Aldous, an associate at Green Building & Sustainability Services/BIM Champion of Mott MacDonald; and Werner van Antwerpen, Head of Sustainability and Utilities at Growthpoint Properties.

First prize recipients Cédric Fournier and Priscilla Nthai of UCT, with supervisors Saul Nurick and Abby Street

Second prize recipients Nthabiseng Makgabo and Bongiwe Dlamini of Wits, with supervisor Samuel Azasu

Third place recipient Lungelo Gcwabaza of NMMU, with Growthpoint’s Sustainability Manager Remy Kloos

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award-winning development

Google office design takes its inspiration from the vibrant city Google SA head office in Bryanston is breathtaking. The office design takes its inspiration from the vibrant city it’s located in. The design concept was developed from the cultural and urban fabric of Johannesburg, and developed into a visual language where all spaces showcase the local personality and unique flavour that makes Johannesburg a proudly mixed-and-matched melting pot, says Elené Olwagen, interior design team leader at Boogertman + Partners Architects By Stanley Karombo

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“ t’s a gathering place, a place of storytelling, a place of expression and, most importantly, a place where the crosspollination of cultures and ideas takes place,” says Elené Olwagen about Johannesburg. The City of Gold is the heart of our culture, she says. It’s a city where cultural matter is borrowed, mixed and matched; similar to the activity (cooking) that takes place in a kitchen. Google’s head office sets new benchmarks in Green Star SA ratings, and Leadership in

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Energy and Environmental Design (LEED) and healthy-materials targets, and celebrates local design and locally sourced materials.

Reception The Google reception was designed to give Google staff and visitors a big South African welcome when they enter the space. Olwagen says the beaded “Howzit” breaks the ice and makes people feel at ease. The chaotic beauty of the beaded wall represents the

softer side of Johannesburg, its people and its cultures. “The contrast in finishes from sleek to rustic represents the juxtaposition between the business hubs of Johannesburg – such as Sandton and Fourways – and how they rub shoulders with townships such as Alexandra,” she says. The various break-out zones are developed around the diversity seen throughout the city. The “Book Nook” was designed as a creative escape from the digital work that Googlers perform daily, and boasts seating inspired by a set of punctuation marks (brackets). The “Egoli” area was designed to showcase Johannesburg’s industrial and financial diversity, while the conceptual design of  “The Nest” was inspired by a weaver’s nest and revolves


award-winning development around creating a space where Googlers can relax or get some sleep. These spaces are only a few of those developed to give the Johannesburg Google office a cutting edge in its spatial experience. The conceptual and design methodology were developed as an extension of the project’s initiative to celebrate the way of life in Johannesburg, which has innovation and entrepreneurship at its core, says Olwagen. “This was achieved by including local artists, furniture and materials, as well as rethinking traditional ways of resolving spatial challenges.” The methodology of context-conscious design aligned the original concept with the implementation process through a particular mindfulness of sustainability and responsible development as an extension of the spatial design concept. This was achieved through the reuse of second-hand magazines, advertisement banners, crates, jeans, recycled timber and African beads, among other non-traditional building materials sourced from the city and used within the design. The conceptual implementation and thoughtful approach to up-cycling, recycling and reusing materials, mediums and local talent was done in an innovative manner, celebrating Johannesburg in a unique and proudly South African way.

Interesting facts The Google Jozi project boasts an accreditation of both a 5-star Green Star SA rating as well as a Gold LEED certification. In line with Google’s drive to create a healthy and

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award-winning development ● 7 500 recycled magazines were used for the cladding in the waiting nook ● Jeans were collected from staff members, converted into fabric and used as upholstery (all other upholstery material is recycled material) ● Furniture was made of recycled/ up-cycled items (for example, old wheelbarrows were converted into chairs) ● Carpets used are a cradleto-cradle product ● Crates from the city were reused as structural support for counters and stools ● 46km of glass beads were used in the cladding of the reception wall ● Local furniture was used, reducing the carbon footprint. productive work environment to energise and inspire its employees, all materials on the project were required to conform to the company’s Healthy Materials Programme. ● All internal building material (ceiling boards, partition boards, and so on) comply with the ISO14001 Certification

● 95% of all internally applied paints meet the total VOC limits ● 95% of all internally applied adhesives and sealants are less than the total VOC limits ● All timber used for cladding is reconstituted ● 3,1km of reconstituted timber were used to build “The Nest”

Google Jozi was the project of a lifetime. “It was an enriching experience for everyone involved, from client to contractor, because of the innovative nature of the space,” Olwagen says. The innovation lies in its Green Rating, the creative use of recycled materials, the unique Jo’burg flavour, and the functionality and aesthetics of the space.

group

Trend Group is a comprehensive project implementation company offering a streamlined approach to commercial interior building refurbishments and upgrades, covering all aspects of the turnkey and fit-out process.

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award-winning development

A partnership that stays on trend T

rend Group is a comprehensive projectimplementation company that offers a streamlined approach to commercial interior building refurbishments and upgrades, covering all aspects of the turnkey and fitout process. With its extensive experience and track record, Trend Group is strongly positioned to take complete control of various project requirements in the commercial, industrial and retail sectors, and is a certified BEE Level 2 contributor. Trend Construction is the delivery arm of Trend Group. It partners with external professionals, designers and architects to provide the full planning, execution and construction components of each project. With a strong delivery team of professionals

who have a proven track record in the delivery of multi-level commercial fit-out projects, Trend Construction delivers projects ahead of schedule and within budget. Since Trend Group’s inception, it has worked for a number of key clients throughout South Africa. The group believes in a collaborating with other professionals to complete projects for key clients (such as Google and Booking.com) with best-in-class professionals such as Boogertman + Partners. Having completed a number of office fitouts for clients such as Bloomberg, Bidvest, King Price, South32, Motseng, Eli Lily and Etihad Airways, Trend Group has demonstrated its expertise across a number of industries and has proven to be a clear market leader within the industry.

“We hope that future interior designers will see how artisans and craftsmen add value and richness to interior spaces – a richness far greater than machine-made products,” says Olwagen. “We also hope that unconventional use of recycled materials gains respect in terms of its industrial character and nature, breaking the stigma of recycled materials equating to low value.” Interior architects Boogertman + Partners Architects Project managers Profica Quantity surveyors Turner & Townsend Mechanical engineers CKR Consulting Principal contractor Trend Group Electrical engineers CKR Consulting Fire consultants CKR Consulting Acoustic engineers Linspace Kitchen consultants Talman & Associates Green/sustainability consultants Solid Green, Ecocentric, Ecolution Wet services CKR Consulting

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PROPERTY REVIEW - LogoTreatment.pdf

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EACH YEAR WE ACCEPT a large number of listings and advertisements from SAPOA professionals and service providers across the entire spectrum of property activities. Don’t miss out on this well-used, popular industry resource. SAPOA aims to provide added value by offering the basic listings free of charge to all members. In this respect, we hope that we are assisting you in your marketing endeavours to some extent. We thank you for your support in previous years. In an effort to improve the look and ease of usage, we have redesigned the directory layout to a four-column grid and have made available certain entries that will stand out from the norm.

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developmental overview

From Gauteng to KZN Since we last spoke to Warwick Lord, SAPOA’s Property Developer Committee Chairman, he has, due to work commitments, moved to Durban, where there are exciting developments with the Cato Ridge project, and the project has taken on a life of its own By Mark Pettipher

Warwick Lord, SAPOA’s Property Developer Committee Chairman

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arwick’s self imposed mandate is to help achieve transformation within the commercial property sector, and to have greater integration in terms of the Property Developers Forum’s objectives around the provinces. The aim is to achieve more inclusiveness, and to encourage developers and property owners to adapt to the uniquely South African challenges. The Property Developer’s Forum was in the past very Gauteng centric, and when Warwick settled in Durban, in December last year, he felt that there was a need to work with Edwin van Niekerk of SAPOA’s KZN Regional Chairman, on the Durban Developer’s forum. “What is apparent from working with both forums is that the subjects tackled are not necessarily specifically metro focused; many of them are national level issues, with some brought about by the implementation of the new SPLUMA regulations,” says Lord. Lord went on to mention that, as developers, there are issues around the un readiness of various municipalities throughout the country, where permissions are taking time to get planning through, and developers are faced with being stuck between the old ordinance and the

new. Here is where SAPOA’s strength lies: “We are able to engage with the government, both locally and at metro municipal level, to try to find ways of smoothing the process of getting approvals,” Lord says encouragingly. The work done by SAPOA regarding the issuing of Water Use Licences (WULA’s) has also been tremendously helpful. The department of Water & Sanitation requested that SAPOA provide them with case studies and application details so that it can investigate these. The department has appointed a committee that sits at national office to focus on all WULA issues raised by SAPOA. By way of example of how constructive this engagement has been with the department of Water and Sanitation, all the applications that were raised as concerns have been addressed with the exception of one. The department has indicated they would like to have regular engagements with SAPOA members to discuss policies they are going to implement. Communication regarding contact details for queries has been sent to

members via the SAPOA newsletter. Moving onto one of KZN’s biggest industrial projects, Lord went on to expand on the Cato Ridge development. “Whilst still at a very early stage, the Cato Ridge intermodal hub has gained serious traction over the last twelve months”. The increase in the demand for goods has placed tremendous pressure on ports all over the world where it has become a necessity to adjust capacity at ports to accommodate demand accordingly as the growth in trade surges from one year to the next. The liner trade is growing in size and in vessels, as well as the demand for containerized goods, is growing far more rapidly than a few years ago. The Cato Ridge Intermodal development aims to address a number of these pressures in a transformative sustainable development. More detail will become available as the project unfolds. From a SAPOA perspective, this will go a long way to achieving its mandate of expediting transformation in the commercial property industry.

Map showing the location of Cato Ridge, approximately 50 km outside Durban

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East London development overview

Positive moves ahead South African Property Review speaks to Robin Knott, who is upbeat about East London’s year ahead By Mark Pettipher

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n arriving at East London’s airport, disembarking and moving through arrivals, not much appears to have changed since our last report on Buffalo City. I had two appointments that day, a whistlestop visit on my way to Cape Town – but I was focused on seeing for myself what changes, if any, had happened in the past few months. What is immediately apparent is that the Call2Action initiative is working. The drive into East London along the R72 and across the Buffalo River bridge seems devoid of litter, and on heading into “downtown” East London, it appears that the municipality has taken heed and is cleaning up and fixing the roads. Traffic is a little slow as a result of these road works. But the CBD seems to be deserted. Many of the shops and offices are boarded up, and the buildings look tired. The best way to get answers was for me to talk to Robin Knott of Investpro, SAPOA’s Buffalo City Regional Councillor. Knott is positive: “Since the municipal elections, it appears that municipal officials are more settled, and are able to see ahead to the next five years,” he says. “This has helped with a feeling of greater stability. “Warehousing, retail and residential are positive; however, offices are over-subscribed. On the rentals side of things, we’re quite busy. Because we have a diverse property portfolio, we can cater for the majority of needs. “SKG Properties’ Beacon Bay Crossing is under way and on track for timely completion.

“Student accommodation will play a big part in future development, as a means of rejuvenating many of East London’s downtown areas” Robin Knott, SAPOA’s Buffalo City Regional Councillor

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This multimillion-rand mixed-use development will be a welcome addition to the commercial property market. “One of the bigger deals we have done so far this year was to look at leasing buildings in the CBD for student accommodation. It’s an area we believe will generate and develop activity in a place that is in dire need of upliftment. We are also seeing a lot of development in Mthatha – the major car franchises are expanding there, and moving their service offerings, which goes a long way towards relieving the congestion at the East London service facilities.” Access to Mthatha via flights from Johannesburg has vastly improved, although it has meant one less daily flight into East London. “We are also excited about the construction of a multibillion-rand N2 Wild Coast toll road that is scheduled to start in April,” says Knott. “This toll road has been on the cards since 2004. It’s going to be about 410km, starting in East London and ending at the Mtamvuna River Bridge.” According to a report in East London’s Daily Dispatch, it appears that seven bridges will need to be built at an estimated cost of R3,5-billion. Construction of the bridges will begin in September. “This toll road will be of tremendous benefit to East London,” says Knott. “It will help the tourism industry. At the moment, tourists stop at Port Elizabeth, which is the end of the Garden Route. This Wild Coast road will mean that tourists will continue through, possibly stopping here in East London. The toll road will effectively link by road our main ports of Port Elizabeth, COEGA, East London and Durban.” From a SAPOA perspective, Kreason Naidoo of Tshani Consulting has been appointed to work with East London on the IDP. “We will be looking at a number of possible interventions, and primarily at building a better relationship between SAPOA and BCMM,” he says. “Other discussion points the committee would like to engage on with the BCMM include topics such as the high commercial rates that developers and property owners are being charged, and working with the City on the establishment of City Improvement Districts and/or Business Improvement Districts.

“Change through cooperation, workshops and meetings will ultimately spur positive change in East London and the Eastern Cape as a whole” Kreason Naidoo, Tshani Consulting

Speeding up the processing of development applications is another key issue that requires discussion, as does the topic of development levies and how they can benefit the city’s development. We will also be establishing a series of workshops and meetings to drive SAPOA’s agenda, with the view to improving SAPOA’s exposure and effectiveness in the area. Naidoo is well placed to run with representing SAPOA: his company, Tshani Consulting CC, is a local multi-discipline professional practice that provides consulting services in town and regional planning, development coordination, project implementation, and tourism development and facilitation. Together with being involved in the longterm future of the Eastern Cape through identifying opportunities for growth and development so land can be managed in the best interest of the public, this means that Tshani Consulting is well placed to keep SAPOA’s finger on East London’s development pulse. The company is also committed to establishing areas of quality with consistent meaning and significance. Central to its practice is the motivation to create and design areas that bring about effective change in an attempt to boost the liveability of settlements, cities and regions, which dovetails well with SAPOA’s mandate to bring about effective change in the region.


East London development overview

Pearlstone a leading light on East London’s commercial property scene South African Property Review speaks to Terry Cook, owner of Pearlstone Investments, specialists in the investment, development and management of architecturally innovative buildings and spaces for the commercial and leisure-related markets By Mark Pettipher

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owards the end of last year when SAPOA East London hosted its bi-annual SAPOA Buffalo City Developers’ Awards evening, Pearlstone took top honours and was awarded recognition for Commercial Office Developments in East London. The award was for the new Nedbank corporate offices in Cedar Square office park on Bonza Bay Road in Beacon Bay. The offices were described as restrained, with the development designed around an open court mediating between the public double-volume entrance space and the more intimate board rooms and offices surrounding the peaceful courtyard. Careful use of cantilevered overhangs to large glazed areas, the judicious use and management of lowenergy lighting and the provision of extra water tanks in the basement all contribute to a sustainable environment. This offers the tenant a bespoke, inspiring space, enhancing corporate productivity and efficiency. Pearlstone Investments’ Terry Cook likes to incorporate natural light and air, and merge internal and external spaces at the same time. This is not always possible because of the clash between viability and aesthetics. “We always try to bring a brighter atmosphere into the work environment, as well as to embrace energy-efficiency,” she says. “We used contemporary materials sourced locally where possible, blended into a customised, practical aesthetic. As an instruction, we give all the usual ecofriendly and sustainable elements as main governing requirements to the architect.”

ABOVE Nedbank recently developed corporate offices in Cedar Square, Beacon Bay BELOW The glass-work in the courtyard demonstrates Terry Cook’s drive to incorporate natural light in her office buildings

To get an overview of East London’s commercial real estate scene, I asked Cook what was happening in Buffalo City. “Competition is unusually tough in the present climate, with a more competitive rental market emerging,” she says. “Being a relatively small player for the past 10 years, I have focused on small-ish, niche developments. We constantly refresh our development profile, ensuring that we remain competitive and contemporarily relevant. Some of our older anchor tenants are asking for refurbishments and reassessing their space requirements rather than moving to other rental properties. Naturally, we’ve done those refurbishments, and we work extremely hard to deliver against their ongoing expectations. Our tenant profile is a prized fundamental in our business, and includes nationals such as Nedbank, PwC, Transnet, Old Mutual and Eskom.” Asked whether businesses are moving into East London, Cook feels there are changes that can encourage new business to come to Buffalo City. Initiatives such as Call2Action

are having positive effects on the city. The municipality has been efficient and helpful in the past – but since the new SPLUMA legislation has come in, Cook has noticed delays in getting approvals from the necessary departments. “Technology will have a huge effect on how we develop office spaces,” she says. “Flexitime and ease of getting to the places of work all have governing effects on the work environment. We also have to take into account what the modern trends are – some corporates have changed from cubicle-type offices to open-plan and back again, looking for a happy medium. Break-out rooms, smaller meeting rooms and intimate spaces for meetings seem to be the norm. “We see a circle of trends. Take the Nedbank corporate offices as an example: the bank’s need was to bring utilities and people into a single building, which meant we were in an ideal position to deliver a new quality building. We may not necessarily be getting new business into East London – but the bigger corporates are rationalising their space and have a need to bring their staff together in a single building.” In terms of her plans for the future, Cook is looking at the hospitality sector. “There seems to be a need for niche, almost boutique business accommodation,” she says. “Yes, the traditional hotel chains have small-roomed facilities on offer – but those don’t really have any personality to them. What interests me is that, looking at a lifestyle business hotel where all the usual facilities are available, it’s not quite a B&B and not quite a five-star hotel. It’s something that, as a busy business traveller, you’d feel more at home with – trendy and intimate, yet businesslike.” SOUTH AFRICAN PROPERTY REVIEW

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award-winning development

Innovation through collaboration Mark Pettipher interviews the winners of the SAPOA Development and Transformation Award – Henk Stutterheim, Ayesha Danyal and Project Manager Courage Karenyi – to discover how they came up with their inspiration and sensitive collaboration for the creation and development of the new, world-class Mitchells Plain Hospital, and whether it necessitated any specific technology and innovation Words by Marguerite Lithgow

Henk Stutterheim

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rom the start of the project, we needed to be innovative on a number of levels. This was the first delivery of a hospital of this nature in the Cape Flats in more than 40 years, which meant there was a huge need for this particular facility. The project was partly the result of transformative processes taking place in South Africa at the time (2006-2007), but was also the culmination of the patients’ needs, the clinical understanding, the community’s requirements, the funding, and not least the will to develop two new hospitals almost in tandem, one in Mitchells Plain and the other in Khayelitsha. They might have had

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a common brief but they had very different site conditions – and to some extent the manifestation of the plans was a reflection of the innovative approach required to accommodate each brief. We had a green field site in Mitchells Plain (an unused, vacant fynbos area) and we found we were allowed carte blanche to come up with whatever concept we wanted, a situation that allowed us room for some innovative thinking. Our thinking was that we should respect it first and foremost as a nature reserve, as it was of great value to the community. Our vision was to preserve its natural appeal, to enhance it if we could, and make a green lung part of the larger urban development. By “urban”, we mean in the sense of building something specific amid an otherwise open environment, and not creating density throughout. Our goal was to disturb the environment as little as possible, and return it, on completion, in an even healthier state than we found it, as a recognisable nature reserve. A plant and animal rescue process was undertaken by a team of environmental experts. This took place over three seasons, largely because of the site’s biodiversity and the importance of the aquifer beneath. The research included a night survey of

all the animals, in which everything from frogs, chameleons and insects to small antelope was discovered. All indigenous flora was removed for propagation in nursery conditions elsewhere; the fauna was carefully removed as well, and we created a fencedoff nature reserve garden in the front three hectares of the plot. The environmental experts relocated all the animals and all the fynbos and other flora – with an irreplaceability value of 100% – and only then did we start building. It took two or three years before all the plants and animals were returned, and the building then looked as though it had grown out of the landscape. It was a naturally healing experience for the patients to be able to look out from the wards onto the nature reserve, with its many bird species. The reserve is now managed by the City of Cape Town, and remains a tranquil and healing place, also used for educational purposes and research. The nature reserve has since been fenced to keep it as a reserve in perpetuity, and the rest of the area around here will remain always as a green lung. We also discovered a lot of calcrete (porous rock) occurring naturally on the site. To save the costs of removing it, we trained local stonemasons in the dressing of it, and used


award-winning development

Ayesha Danyal

it for paving, stone walls and cladding for benches. We also incorporated some into the building, and in various other ways on the site, leaving some of it as an attractive natural feature. This saved the project thousands of rand. During construction, we are asked at one point by the client to investigate installation of rat poison boxes to deal with a future onsite rat problem. As a team, we felt this to be the wrong approach in a sensitive fynbos area – and not having a huge budget for this project, we preferred to create a sustainable natural solution for the ecosystem. We were fortunate to find a research professor in Stellenbosch who created nesting boxes for owls and falcons, and had the knowledge to help us. Our client agreed to engage him and, following his advice, we created and placed the nesting boxes. We have since discovered that the solution was a success. There is now evidence of falcons and owls living permanently in the area; there is no rat problem; and the falcons – which are very territorial birds of prey – have also solved the

problem of too many pigeons. The professor continues to make use of the hospital and nature reserve as a research site for his ongoing research, which is encouraging education programmes, too. We felt this to have been successful, and very innovative. The rezoning of the site ultimately meant we would have to pay a lot more for upgraded municipal services. As a team, we decided to try to save on expenses by relooking ways to maintain storm water on site without connecting it into the city’s system. As a result, our engineers created retention ponds – two big and two smaller – and a system that feeds into itself. Situated at different levels, they all drain into each other; when they fill up, the water seeps down into the aquifer beneath. Our solution saved us quite a few million rand in the immediate term and will be economical for the hospital in the long term. The irrigation system for the property works off the aquifer, which is what was needed for irrigating the trees and plants, etc. This is sustainable – and once the indigenous plants are established, only the foreign trees growing there will need to be irrigated. An advantage we hadn’t planned or counted on was that by creating this whole water system, we were in fact establishing a micro-environment of wetlands, encouraging the growth of new kinds of plants – the kind that attracted a whole different range of water birds. Now, when you stand in the building and look down, you can see the birds flying over, landing and busying themselves in the new wetland environment. It’s as though we have re-introduced an ecosystem that was there before building began. This has proved very popular, as has been the peacefulness of listening to the sound of birdsong. The birds seem to like the

What was the biggest challenge you had with regards to the wetland, being the project manager, and having to get the foundations laid?

Courage Karenyi

A very big challenge was dealing with the communities of Mitchells Plain and Philippi. The project started in 2006, and the government promised the community a new hospital and job creation, with 30% of all contract work to go to local people. The community was demanding and very sure of what they wanted, and it was difficult for me to make good on political promises because it was different to what we had in the contracts. Ultimately, though, we succeeded. We created a procurement committee to sort out the various processes within the community. The committee consisted of me, a community facilitator, and a representative for the contractors, an empowerment consultant, two CLOs and two sets of representatives from Mitchells Plain and Philippi respectively. The hospital is positioned between two communities, so we had to service both of them. Initially, the procurement committee sat for two hours every Thursday, and every Thursday I’d feel really stressed going into the meetings because the entire project would have to be halted if community participation hadn’t been sorted out satisfactorily. I ended up being a politician on Thursdays, simply to try to balance the issues – but in the end it was a great team effort, and worth every minute. At the procurement meetings we’d let the community know what procurement items were going to be earmarked in the short to medium term, and what contract work we needed. They would go away, figure out which of their people were capable of doing it, then give us the names of who was able to carry out which portions of the work. We would vet them and interview

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award-winning development them, and they would tender alongside everyone else in the industry on our lists. If they were successful, they’d win that specific portion of the work, so it was fair. In the long term, we steered about 30% of the work we handed out to contractors in Mitchells Plain and Philippi, and this translated into more than R90-million worth of contractual work going directly to those two communities. There were many challenges: for example, we would (under different circumstances) have been able to construct the project in 24 months, but it took us 37 months to complete. The delays were caused by working with unskilled labour and by creating labourintensive activities – for instance, instead of digging a channel using the usual mechanical system, we would instead get labourers to dig it in order to give them the work to do. Employing and training unskilled labour causes time delays and costs more, but in the end it creates jobs for the unemployed. So this is what we ended up doing and we were totally committed to it, and able to absorb it as part of the construction process. This forced us to change how we did things as a team, to vary our procedure and to look at job creation as part of the construction. Time is money, so our client knew it would cost more in the end, and it did require extensive extra budgeting. A good spinoff for the community was that they were effectively up-skilled in the contractual process. We identified nine or 10 trades, including bricklaying and plastering, and asked the community to give us the names of people to train. We had a budget for training, so we sent the people they’d chosen to different training colleges, from which they received certifications that we used on the contract. We deliberately sought out mentorship among established businesses for local subcontractors. For example, we would specify to an established business that it could have a specific contract job, with the proviso that it associated itself with some of the subcontractors and helped them do the job. The established business would then agree to work with the local subcontractor, show him how to do the various things, and thus there was some mentoring, too. In the end it was all worth it, because the outcome was a very, very happy community. And we’ve had no complaints about the building. It is colourcoded and easy to navigate. We created simplicity for the people.

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new environment, and are naturally attracted back to the site. They must have noticed they are welcome! A tremendous amount of thought went into many aspects of the building to create an atmosphere of hospitality and warmth. We also wanted to create a sense of ownership in the community by involving them directly in the artwork used to decorate the interior. We commissioned and worked with a local mosaic artist Lovell Friedman, who ran a programme to train local people over a period of about two years in the skilled mosaic work that now adorns the entrances and foyers. To prepare some of the themes we wanted, we workshopped at local schools, and also engaged residents in retirement homes in the community to include them in our themes, which were along the lines of, “What is your definition of healing?” or “What is your definition of a hospital?” A lot of research went into something supposedly as simple as the signage in the hospital, which was thoroughly researched and customised to fulfil the needs of the people who live locally, including the use of colour coding. The signage takes into consideration anyone who might not read English or Afrikaans, or might be illiterate, and who could easily feel overwhelmed at the thought of getting lost, confused or anxious in such a large new hospital. The signage and the decor, combined with the many outdoor views of nature from all parts of the building, and the comfortable nooks, courtyards and waiting areas, are all designed to be calming and reassuring for patients and visitors alike. Collaboration was the key factor in making a success, in its entirety, of every aspect of the Mitchells Plain project.

Quotes ●● “It was an amazing experience to have participated in such a nation-building project – one which will continue to heal and nurture two communities for many, many years, and bring them hope for the future.” – Ayesha Danyal ●● “We were a strong team, and we stretched ourselves professionally and individually to pursue excellence at every level of the project. I think we wanted to offer something perfect to the community.” – Henk Stutterheim ●● “Looking back, I am reminded how much I thoroughly enjoyed it all – yes, even the volatile Thursdaymorning community meetings. We created a welcoming building, a fantastic building; and our vision included the community’s fingerprints by allowing them to participate in the construction process. I’d do it all again.” – Courage Karenyi

Developer Western Cape government: Department of Public Works, Department of Health Architects Magqwaka Associates Architects, Munnik Visser Architects, New Era Architects Project managers Stauch Vorster Architects Quantity surveyors Mahlati Quantity Surveyors, SIBA Civil engineers Hatch Goba Structural engineers BSP Consulting Engineers, Nadeson Mechanical engineers BMDS Consulting Engineers cc, NAKO Triocon Other consultants Cecily Rocher Design, Lovell Friedman Principal contractor Aveng Grinaker-LTA Electrical engineers Jakoet & Associates, NAKO Triocon Fire consultants Keith Fletcher & Associates cc Green/ sustainability consultants Amathemba Environmental Management Consulting cc, C2C Consulting Engineers, TKLA Landscape Architect


SAPOA events

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Port Elizabeth developments

From the cradle to retirement Cobus Bedeker, a qualified town planner and a Director at Amdec Property Development, talks to South African Property Review about the exciting lifestyle estate being developed as the suburb of Westbrook in Port Elizabeth, where the latest units are being snapped up as soon as they come onto the market Interview by Mark Pettipher

Cobus Bedeker, qualified town planner and Director at Amdec Property Development

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he brand-new suburb of Westbrook, situated on a beautiful 128-hectare tract of land with gently undulating slopes, has the natural beauty of a stream and ravine running through it, a lovely outdoor area, and an opportunity for homes to have a view overlooking the valley and parts of the estate. This greenbelt of parklands and children’s play areas is minutes away from the Bay West Centre with its 250 stores, restaurants and other entertainment attractions, and also has very easy access to the N2. From a property development perspective, Port Elizabeth has traditionally trailed behind Johannesburg, Cape Town and Durban. Our latest thinking, however, is that with all the work opportunities now expected in Port Elizabeth, this could be the next significant  Westbrook lies on 1,2-million square metres (128 hectares) of land.  There is more than 40 000m2 (four hectares) of premium office and commercial space.  Fully developed, it will be made up of 3 500 units.

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area where government creates opportunities for business growth. Naturally, where business thrives, people flourish, and the residential component soon follows. There is serious opportunity in Port Elizabeth for development, and we firmly believe our idyllic lifestyle brand, delivering as it does a top-quality lifestyle for the entire family, is exactly what is needed for this area. The well-planned, well-managed residential country estate of Westbrook incorporates a new Curro private school, offering pre-primary, primary and high school once complete. There are plans to include an acclaimed Evergreen retirement village for grandparents, which will be located near the town centre. These, and all state-of-the-art cultural amenities and sports facilities, are all within easy walking distance of each other and the abodes. The Westbrook town square, an independent and fully developed CBD, will be within strolling distance of home, and will sport trusted names in the way of supermarkets and restaurants alongside boutiques, coffee shops, beauty and hair salons, and essential financial services. The town square will also offer world-class medical facilities, and premium office and commercial space. In short, it will be a thriving business precinct which is fully accessible to the general public via the four main, gated entrances to the estate. Set in a charmingly self-contained village atmosphere, and with highly professional, around-the-clock monitoring of its fully secured perimeters, the Westbrook lifestyle will offer a supremely safe, relaxing atmosphere that will attract people of all ages, and from all walks of life, who are looking for a sanctuary where their families can live, learn, work and play. Ideally, the only reason for wanting or needing to leave the estate will be to go to the beach! When completed, the new suburb’s nine planned residential villages will provide a variety of homes and apartments, and will include a retirement lifestyle estate, a retail village and an already established Curro school. There will also be the added

convenience of a ‘“walk to work” reality, with more than 40  000m² of premium office and commercial space connected by lush parklands, and criss-crossed with pedestrianand cyclist-friendly lanes and pathways. From a bird’s eye view, the school, positioned in the middle of the estate, poignantly reflects what it is – the heart and soul of the project. It is already the school


Port Elizabeth developments

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Port Elizabeth developments of choice for many parents in Port Elizabeth whose children currently come to school from outside the suburb, and it is expected to be a big draw-card for young professional adults wanting to take full advantage of the private education and the secure, serene lifestyle. Harmonious to the long-term vision for the estate, every child living in Westbrook will have a guaranteed place at the school. Correspondingly, the most recently developed village of Riverdale, situated on the western border of Westbrook and the second village to be launched, is aimed at the young-adult, first-time buyers, often with younger children, whose first two essential considerations when choosing a home base are safety and the best school they can find. These semi-detached, entry-level units, each with three bedrooms and two bathrooms set on 80m², are considered incredibly good value for money at under R1  million each. Riverdale is being developed with plenty of park areas in it, suitable for family picnics and a casual game of rugby or soccer. The Ridge, on the eastern border of Westbrook and originally the first of the individual estates to be launched, has proved very popular at a purchase price of R1,5million, with Phase 1 already sold out. It is anticipated that The Ridge will, in time, be considered desirable to residents of Riverdale when they reach the stage of wanting to make a property move upwards. Bookings are currently being taken for Phase 2, which presents an excellent selection of 36 designer homes, each having three or four designer bedrooms and two bathrooms. It is typically a modern type of home, and comes standard with burglar bars, alarm, solar panels, solar geyser, a grand kitchen and built-in cupboards. A major reason that the Westbrook lifestyle dream works, and will continue to work, is the Westbrook Property Owner’s Association, which manages the entire estate and maintains the smooth running of all services, including the upkeep of all the main roads,

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the beautiful landscaped areas, and especially every aspect and detail of the estate’s security. This highly professional management service is at all times guided and steered by the driving force underpinning almost all of the ideas, plans and ambitions supporting Amdec’s grand vision for Westbrook: the allencompassing goal of keeping costs and expenses under control on everyone’s behalf, in particular those costs that affect the rising cost of living on a month-by-month basis, which everybody feels most acutely. The Association is, in many ways, responsible for the atmosphere of calm,

the sense of freedom to participate in the great outdoors and to come and go, and the feeling that one can just relax and enjoy the luxury of living in a top-quality estate while relieved of most of a home-owner’s responsibilities. It enables one to open the sliding doors leading into the garden, and put one’s feet up. “When you invest in Westbrook, you are purchasing a way of life on one of our beautiful, exclusive residential estates,” says Bedeker. “People are rapidly discovering that our brand is a dream that comes true for every member of the family.”


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SAPOA events

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KZN developments

Sail in and find the perfect spot at

Ballito Junction Regional Mall

Opening on 23 March 2017, Ballito Junction Regional Mall is the extensive expansion of an existing 10  000m2 shopping centre to an 80  000m2 modern mega-mall. It is owned and developed by Menlyn Maine Investment Holdings, and Flanagan & Gerard Property Development & Investment By Anne Lovell

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allito Junction Regional Mall is designed to offer the best customer experience – one that begins even before you get to the mall. Smart planning ensures that it is easy to get Ballito Junction and enjoy its exciting selection of more than 200 shops, restaurants and services – whether you come by car, bus, taxi or bike, or on foot. Ballito Junction also features first-hourfree safe undercover parking, completely interlinked parking levels, generous parking bays close to your favourite shops, a drop-off and pick-up zone, and special links for public transport and pedestrians. Underpinning all this is Ballito Junction’s location – perfectly positioned for easy access from all directions. “Because it is nestled between the old M4 highway and the new N2 highway, getting into Ballito

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Junction is a breeze,” says Carl Jankowitz, Director at Menlyn Maine. The old M4 highway leads directly into one of the centre’s two main parking entrances. For visitors coming from the sea side of the mall, there is dedicated access around the traffic circles of Leonora Drive, off both Ballito Drive and Simbithi Drive. The mall is just off the N2 highway on Ballito Drive. From this direction, you will find Ballito Junction’s entrance at the first traffic light, where a massive six-lane gantry-system clearly signposts the mall’s entrance and access to each level of parking. So whether you come from Ballito or from its north, south or inland areas – or even from much further afield – getting to Ballito Junction is simple, easy and superconvenient. Then, once you actually reach

the mall, prominent directional signage at the mall’s entrances guides visitors to the colour-coded parkade levels closest to their favourite shops. “Don’t worry if you find yourself on the wrong level – you can easily link to all the other levels of the mall’s parking once you are inside the parkade,” says Pat Flanagan, co-chairman of Flanagan & Gerard. “There’s no need to exit if you want to park elsewhere at the mall.” Parking levels two, four and six correspond directly with the mall’s vibrant retail levels. There are also two mezzanine levels – three and five – dedicated to parking. On level one, the mall features a dedicated truck tunnel for deliveries. This ensures that its behind-the-scenes workings do not get in the way of a smooth shopping experience. “The parking at Ballito Junction is cleverly designed to enable visitors to easily park on the same level as their preferred destination shops, and close to every entrance,” says Jankowitz. “You can park and shop without being exposed to the weather, with the benefit of a secured environment, and enjoy the first hour of parking free.” All in all, Ballito Junction has 3  600 parking bays. It also offers dedicated bays for paraplegic parking as well as wider parking spaces for moms and tots. The mall will also have a dedicated shopper pick-up and dropoff zone, as well as an adjacent taxi facility with a pedestrian crossing and safe pedestrian access to the mall. “Ballito Junction Regional Mall will introduce a large and attractive mix of leading retail and leisure, boosting its appeal across a wide market when it opens on 23 March,” says Flanagan. “The mall’s access, entrances and parking have all been designed to welcome everyone who wants to enjoy its world-class shopping offering and entertainment.”


Gauteng developments

Loftus Park:

A bull in a bear’s market Abland’s commercial development is larger than one may realise at first glance. It will use as much steel as half of the Eiffel Tower, and cater for business executives and families alike

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onstruction is progressing well on Abland and the Pivotal Fund’s project in collaboration with the Blue Bulls, adjacent to the legendary Loftus Versfeld. The main contractor has no less than five tower cranes on site, and the first level of super-basement is almost completed. Abland’s R1,45-billion project has achieved a few milestones already. The bulk earth works included the removal of 270  00 cubic metres of soil (or 33  800 truckloads), and was completed in eight months. This was no walk in the park, as residents and schools in the vicinity had to be accommodated with regards to traffic. To minimise the number of

trucks on the road during peak hours, the contractor worked more night than day shifts. The hole excavated for the two levels of basement parking is equal to the size of 86 Olympic swimming pools, and two massive pumps are working around the clock to keep the ground water and rainwater at bay. To put the size of the project in perspective, Abland will be using 5  200 tons of steel, equal to half that used for the construction of the Eiffel tower. The 46  000 cubic metres of concrete, 170  000 litres of paint and no fewer than 2  200  000 bricks further testify to the enormity of the development, which is the first significant project in the area

since Brooklyn Mall was constructed here in the 1990s. Once completed, this dynamic mixed-use development will comprise premium-grade office space, select retail, five restaurants, a 3  500m² gymnasium with pool, a hotel, and a Sport Rehabilitation Centre of Excellence, where top medical specialist will focus on the treatment of sports injuries. The buildings are designed around a central piazza with recreational and entertainment space where the public will be able to enjoy an exceptional atmosphere. Loftus Park will not only cater for top-end companies but also for the numerous embassies, diplomatic missions and consulates in the area. A specific emphasis is placed on entertainment and recreation for young and old. Families will be able to enjoy a great meal at one of the restaurants while children play (within eyesight) in the artistically designed playing spaces. State-of-the-art security goes without saying, and internationally renowned advisers were contracted to assist with the planning and implementation thereof. The focus is definitely on sustainability, with green building methods that will provide energy savings of up to R10/m² for tenants. Numerous planters for fully grown trees are scattered around the piazza to provide a parklike atmosphere with ample natural shading.

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industrial development

Lord Trust Developers transforms an unused quarry into a green industrial hub – Lords View Industrial Park Managing Editor Mark Pettipher spent some time with Ndaba Ntanzi, Lords View Industrial Park’s Sales and Marketing Manager, and reports on how much progress has been made since South African Property Review first mentioned the development in 2013, when the park was conceived

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n a sad note, Lord Trust Developers is mourning the passing of former Sales and Marketing Manager Alan Hendricks, who lost his battle with cancer in October 2016. His strong character, warm personality, unshakeable integrity and the sense of humour for which he was well known in the property industry will never be forgotten. Hendricks played an instrumental role in conceptualising Lords View Industrial Park (which is developed by Lord Trust Developers) and securing its anchor clients. Ndaba Ntanzi will represent Lord Trust Developers as the Sales and Marketing Manager to facilitate all the components required for the successful completion of this development. Ntanzi’s final duty will be to hand over Lords View to the Property Owners Association which, under the administration of GEMS Estate Management, will then control the park completely. Warwick Lord, Director of Lord Trust Developers, answered the call to a greater challenge, developing an intermodal project in Cato Ridge, KwaZulu-Natal, which he heads as a major shareholder. Despite new ventures and projects on the horizon, he assures us of his commitment to the large investment at Lords View, which he is keen to see blossoming into a completely green, first-of-its-kind industrial park. In his words, “Although I may be scarce, you are welcome to visit when next you’re in Cato Ridge.” Lords View Industrial Park has come a long way since inception. Exceptional growth aside, the Park, with its many green elements and interesting aspects, differs from other industrial townships, claiming a unique, green township

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development. “We haven’t been sitting on our hands,” says Lord. Only 434  331m² of the 1,3-million square metres of total sellable area are still available. Phase 1 sold to major customers – Unilever, the Cochrane Group, Green Cross and Freightmore. Unilever built an Ola factory and is considering erecting a cold-storage depot. Green Cross has built a pharmaceutical building. Grandmark, importer and distributor of automotive parts, owns the majority of Phase 2. Laser Transport Group purchased almost all of Phase 3. Lord Trust Developers decided to service Phases 4, 5 and 8 because of market demand driven by the 22  000m² distribution centre in Phase 8 developed for the Foschini Group. Phase 8 is jointly owned by Lord Trust and Equites Property Fund. Provision is made for future expansion of 18  000m². Phases 6 and 7 have been opened for sale. “We held Phase 6, our prime land, so the early phases of the development would push up the market’s appetite for it,” says Lord. Phase 7 will be sold as one stand. According to Ntanzi, “Today’s importers, distributors and manufacturers require larger facilities, higher clearance heights, and greater parking and storage capacity while still focusing on security and an environmentally sustainable design. Lords View provides all this, and its prime location reduces transportation costs, streamlining the supply chain. With increasing global competition and transport costs, a company’s distribution centre or manufacturing base location becomes vitally important to cost management. Lords View plans to be an environmentally friendly, eco-sensitive industrial and logistics park

to improve cost management. We use the latest innovations to create cleaner, greener township development. “Part of our sustainability drive is the central attenuation of storm water. The land was previously a sand quarry. When bedrock was reached, quarrying continued on different portions of the site, creating several borrow pits. Filled with rainwater, they created a new wetland attracting varieties of flora and fauna. The ponds, incorporated into the Lords View layout, are rehabilitated to promote an abundance of species.” Because of their depth and size, the ponds are also used as storm water retention dams, enabling Lords View to attenuate 63% of the entire park’s storm water into a central location. Sixty-three percent of the storm water is centrally attenuated. It is no surprise that 81% (by gross area) of the stands offering central storm water attenuation have been sold. This is a cost saving for the customer and, at the same time, a sustainable feature of the Park. The ponds will be used for water storage and, ultimately, for irrigation of common areas, including landscaped sidewalks, the feature garden at the guardhouse, and green areas surrounding the dam.

Lords View green initiative 1. Lords View, once completed, will have rehabilitated an old quarry into a large-scale logistics and industrial park. 2. The old borrow pits are being rehabilitated and beautified, and will be utilised further as storm water attenuation ponds. These attenuation ponds will release storm water at a slower rate than the current run-off, and have also been designed to attenuate storm water from surrounding areas. 3. The dam water will be used to irrigate the common areas and the green lung of the Park. 4. The tailings (fine sand that is not suited for construction) that was created in the quarrying process has been used in the capping of the Enviroserv land-fill site, adjacent to Lords View, and the NCP Chloorchem evaporation ponds. 5. Lords View incorporates Sustainable Urban Drainage Systems (SUDS). These are designed to reduce the potential impact of new developments with respect to storm water drainage discharges.


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REVIEW With a South African property market value in excess of R250-billion, SAPOA members control in the region of 90% of South Africa’s private sector commercial land and building stock, and manage the majority of property funds listed on the JSE. Each member is a leading player and decision-maker in the commercial property arena – and they use the South African Property Review as an extension of the SAPOA website and information platforms. These members – company chairmen, CEOs and MDs – often control massive companies and their associated budgets. As true decision-makers, some of the brightest and most talented people in the sector occupy senior roles in the SAPOA member organisations. The South African Property Review is mailed directly to the association’s leading members, and is also available to the general public both internally and online via Issuu - the online version is an exact copy of its printed original and has on average over 3675 impressions a month, with an average read of upwards of six minutes per issue, giving a monthly reader exposure of over 5000. The true value of the online versions is that they get revisited over and over again and generate a liquid international exposure for your company, making the South African Property Review a ‘must include’ in your marketing plans.

September 2016

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1 Medical facility for 200 Rivonia Road in Morningside, 2 The Union office Johannesburg development . Architects: Geyser for Eris Properties Hahn Architects. 3 & 4 Head office in Accra, Ghana. for Business Connexion Architects: Boogertman for BCX HQ Offices Vorster International. + Partners. Co-ownership QS services in JV in Centurion, JV. Pretoria. Architects: Stauch

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With a monthly average exposure of more than 5000 readers, the South African Property Review is a growing and recognised news platform and go-to source of important industry information, interviews as well as in-depth African and regional reports.

For advertising opportunities and rates contact Robbie Pansegrauw t: +27 (0)21 856 0321 / e: rob@mpdps.com SOUTH AFRICAN PROPERTY REVIEW

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development funds

Changing the landscape of South Africa South African Property Review talks to Nigel Adriaanse about his transformation initiative for the property industry one of hopefully many initiatives to completely destroy the legacy of disproportionate economic ownership patterns.”

Element

B-BBEE codes

“After 23 years of democracy, the property sector is one of the (if not the) slowest industries to transform” Nigel Adriaanse CEO, Enterprise Development Property Fund

F

rom the start of the interview, Adriaanse is controversial in his opinions. “I don’t think the property sector has the appetite for transformation,” he says unapologetically. “After 23 years of democracy, I can’t understand why this industry has been so slow to transform,” he continues. After working in property for more than 15 years, Adriaanse left a lucrative job as Senior Asset Manager for listed companies Rebosis and Ascension to pursue his dream of “changing the landscape of property ownership in South Africa”. Working with the Property Sector Charter Council, SAIBPP, SABEF, Shanduka Black Umbrellas, TUHF, SAPOA, government departments and the banking and property sectors, his aim is to transform the R5,8-trillion property sector that has been slow (or unwilling) to be part of the transformation process.

The sector at a glance This is a very large sector. Numbers from R5-trillion to R7-trillion have been bandied about, with black ownership somewhere between seven and 15%. “In this new democracy, with the majority of the population (90%) being black, this is massively disproportionate and completely unacceptable,” says Adriaanse. “Something has to give. This is the reason the Enterprise Development Property Fund (EDPF) was initiated: to become

50

EDPF works with large property owners and small black businesses to change the pattern of ownership. Through enterprise, skills and socioeconomic development as well as procurement, EDPF can help businesses change their B-BBEE score by up to 69 out of 117 points required by the codes. “But that’s not really what it’s about,” says Adriaanse as he looks at one of the tallest buildings in Cape Town, which he managed just a few months ago. “You see that building? I want to get the owners to assist a group of black entrepreneurs to buy that building, and grow their business so we can increase the number of black entrepreneurs in the property sector. At the same time, we’ll create new jobs and develop new black property practitioners. “At the end of the day, it’s about undoing the ills of the past. For too long after the advent of South Africa’s new democracy, we continued to live with this legacy – a legacy of inequality in land ownership. I don’t mean unproductive land, either: I mean land that can be used for productive economic purposes such as farming, commercial office space, retail shopping centres, and residential and industrial developments.”

Code numbers

Ownership

Code 100

30 points

Management Control

Code 200A

9 points

Employment Equity

Code 200B

13 points

Skills Development

Code 300

19 points

Enterprise & Supplier Development

Code 400

39 points

Socioeconomic Development

Code 500

2 points

Economic Development

Code 600

5 points

Total

117 points

How do we achieve such lofty goals?

How does one get involved?

“These goals have not been achieved to date; they’re almost like fantasy,” says Adriaanse. “Working with our partners, we will incubate black entrepreneurs and educate them to be property owners in a six-month property education programme. During incubation, we’ll teach them business skills, business-plan writing and marketing strategies, and give them access to mentorship and finance. In addition, we will give them office space, computers, printing and internet facilities, and boardroom and presentation facilities, as well as tax, bookkeeping and legal assistance.”

Property companies can support the EDPF through direct funding, mentorship and skills development. They can also support new entrants by selling assets to them at discounted rates, deal structuring, vendor finance, and supporting businesses in downstream services such as property and facilities management. Banks can show support by funding deals through “out-of-the-box thinking”, since most of the new entrants do not have the capital needed or the balance sheet to support these types of deals. “In fact, banks need to forget that the box even exists,” says Adriaanse. Government can help by creating leasing opportunities for new entrants and using their current stock of properties, worth more than R100 -billion, to support B-BBEE transactions by developing PPP opportunities. Finally, individuals and institutions can be part of the mentorship programme, thereby assisting in the development of skills. “The bottom line is to get involved and take transformation of the sector seriously,” says Adriaanse. “To borrow from an old cliché, be the change you want to see in the world.” The Enterprise Development Property Fund can be contacted on 021 418 0768 or via email at nigel@edpf.co.za.

EDPF goals 1. To educate existing property owners on the reasons why, and methods to, transform; and 2. To teach HDIs how to enter the property market and run a successful property business.

THE PROPERTY SECTOR AT A GLANCE SA property sector R5,8-trillion

Commercial R1,3-trillion

SOUTH AFRICAN PROPERTY REVIEW

Residential R3,8-trillion

Weighting

Amended Property Sector Code

Public R237-billion

Other R520-billion


SAPOA events An opportunity

I nnovatIve C orporateaward offiCe developm offICe

ents

PROPERTY DEVELOPMENT AWARDS FOR INNOVATIVE EXCELLENCE

not to be missed The SAPOA Property Development Awards for Innovative Excellence coffee table book 2017

SAPOA events

2 0 1 6

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

2 0 1 6

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Every year, buildings get smarter and more beautiful. SAPOA’s primary objective is to define excellence in property and recognise top-quality design and functionality as a benchmark for excellence. SAPOA awards for excellence 2016

award Ivehments refurbIs Innovat award vehments refurbIs InnovatI

e Park Lion Match OfficRoad, Durban

e Park Lion Match OfficRoad, Durban

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pment l combination of park is a wonderfuOffice Park is a redevelo The now-26 000m²he Lion Match and se various other medical facilitieshas rejuvenated an old warehou office space, cafes, project that a new parking redevelopment included l commercial space. services. The space into refurbished in its according to provincia building, designed a heritage keeping site and is unique garage and a new The property is ents and in As such, ks. AMAFA’s requirem landmar agency andlineiconic heritage with views railway l architec e theture historica alongsid formed the basis have been design with the area. Nestled has ble the new building fields,sustaina history rugby and of the ocean and of the project. contained a mixture a highlight of the project. d between property positione well000m² Park is 21 Officeoriginal The Lion MatchThe The year 2013 saw and major facilitiesl space. transport and industria , close tocial of commer into an urban Durban’s stadiums Mile”. pment of this space city’s redevelo the of the“Golden the tostart routes, and central

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Surveyors JT Ross, MLC Quantity JT Ross Quantity surveyors Mechanical Project managers May Houseman & Associates Surveyors s Dean Jay Architects l engineers Hatch Goba, s JT Ross, MLC Quantity Developer JT Ross Architect consultants Dynamic & Associates Structura cal JT Ross Quantity surveyor s BFBA Consultants Fire Goba, May Houseman & Associates Mechani Project managers n Electrical engineer Civil engineers Hatch s Dean Jay Architects r JT Ross Constructio s Hatch Goba, May Houseman Principal contracto Structural engineer Developer JT Ross Architect consultants Dynamic engineers BD&O, AECOM Houseman & Associates s BFBA Consultants Fire May Goba, Electrical engineer Civil engineers Hatch r JT Ross Construction Fire Solutions, AECOM

engineers BD&O, AECOM Fire Solutions, AECOM

2016 ds for excellence

SAPOA awards

Principal contracto

SAPOA awards

The SAPOA Property Development Awards for Innovative Excellence are widely respected within the commercial property design industry, illustrating various types of excellence, from the clarity of purpose in the brief to ingenuity of product, clever design solutions and delivery on time and within budget. 892 Umgeni

892 Umgeni

redevelopment Office Park is a he Lion Match warehouse rejuvenated an old project that has ed commercial space. space into refurbish is unique in its heritage site and The property is a landmarks. As such, ure and iconic architect l historica formed the basis ble design have history and sustaina of the project. d a mixture property containe The original 21 000m² The year 2013 saw industrial space. of commercial and into an urban pment of this space the start of the redevelo ent. business environm

tion of ul combina SAPOA awards for excellence 2016 park is a wonderf The now-26 000m² and various other medical facilities office space, cafes, a new parking pment included al services. The redevelo according to provinci building, designed garage and a new in keeping and ents AMAFA’s requirem heritage agency line with views alongside the railway with the area. Nestled has been fields, the new building rugby and ocean of the a highlight of the project. ed between Park is well position The Lion Match Office t facilities and major s, close to transpor Durban’s stadium Mile”. to the city’s “Golden routes, and central

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for excellence 2016

SAPOA awards

for excellence 2016

It is this recognition that owners, developers, architects and property practitioners strive for.

for excellence 2016

Cost: R15 000 excluding VAT (Includes design, photography and production) Deadline: 08 April 2017 Bookings: Jane Padayachee, Marketing Manager e: marketingmanager@sapoa.org.za t: +27 (0)11 883 0679

A SAPOA award is forever, much like the raw bricks and mortar that make up the timeless beauty of property. To be part of this amazing opportunity, partner with us by profiling your executives and/or team in our SAPOA Property Development Awards for Innovative Excellence Coffee-Table Book Volume 4

Volume 4 of this prestigious coffee table book will be given to each delegate attending the SAPOA Convention & Property Exhibition ● ●

20 - 22 June 2017 Cape Town International Convention Centre

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SOUTH AFRICAN PROPERTY REVIEW

SOUTH AFRICAN PROPERTY REVIEW

29


events

KwaZulu-Natal Cocktail Networking Evening Sponsored by Private Property and held at its ofďŹ ces at Richefond Circle in Umhlanga, the KZN Regional Council kicked off the year with its ďŹ rst networking evening

FROM LEFT Trevor Martin, Edwin van Niekerk and Grant Boonzaier

Kevin Pillay and Nirvana Kasichand

Regional Chairman Edwin van Niekerk welcomed guests, after which Private Property used the platform to announce its commercial portal. The evening was thoroughly enjoyed by all 103 delegates in attendance. A special word of thanks and appreciation goes to our sponsors, Private Property, for making the evening a huge success.

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SOUTH AFRICAN PROPERTY REVIEW

FROM LEFT Rajan Govender, Mthulisi Msimang and Mondile Mahlasela

FROM LEFT Jenny Venter, Samantha Stewart, Bev Nelson and Lea Hollinshead


events

Denis Davidson and Laura Radford

Farahana Mahomed and Heather Farah

Megan Church and Celeste Vaughan

FROM LEFT Caressa Naicker, Lorentha Govenden and Zithobile Jiji

Thabo Vilikazi

FROM LEFT Anthony Jackson, Werner du Plessis and Malcolm Hartwig

Clive Ngwenya

FROM LEFT Cheryl van Niekerk, Simon Bray and Edwin van Niekerk

Adhir Imrith

SOUTH AFRICAN PROPERTY REVIEW

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UPCOMING EVENTS & TRAINING PROGRAMMES

2017 MARCH

03 MAR 03 MAR 09 MAR 09 MAR 09 MAR 10 MAR Day 1 13-17 MAR 13-17 MAR 14-15 MAR 14-15 MAR 24 MAR Day 2 27-31 MAR 27 MAR

Gauteng SANS 10400 Gauteng Inclusionary Housing Workshop Gauteng Research Breakfast: Retail Trends Gauteng Legal Brokers Forum KZN

KZN Breakfast Presentation

Gauteng Introduction to Brokering Seminar Gauteng Real Estate Market Analysis (REMA) Gauteng Facilities Management (FM) Cape Negotiation Skills Masterclass Programme (NSMP) Town Gauteng Negotiation Skills Masterclass Programme (NSMP) Gauteng Introduction to Brokering Seminar Gauteng Real Estate Investment Analysis (REIA) KZN

Introduction to Brokering Seminar


MARNOV MARNOV 30 MAR

Gauteng Property Management (PM) Gauteng Certification for Commercial Property Practitioners (CCPP) Port Introduction to Brokering Seminar Elizabeth PROPERTY REVIEW - LogoTreatment.pdf

1

2016/08/25

11:31 AM

APRIL 06 APR 19 APR 20 APR 25 APR TBC

MP

Mpumalanga Breakfast Session

Port Elizabeth Cape Town Limpopo

Lease Agreement Workshop Method For Measuring Floor Areas in Buildings (MOMFA) Introduction to Brokering Seminar

Limpopo Limpopo Golf Day

MAY 19 MAY 30 MAY TBC

KZN

KZN Breakfast Session

KZN

Lease Agreement Workshop

TBC

Port PE Networking Event Elizabeth

Gauteng Legal Breakfast

Dates are subject to change. Please see Sapoa.org.za for regular updates.


off the wall

Nothing but air Any child who’s spent any time in the tub with a balloon-powered boat knows first hand that compressed air can move stuff. Put the balloon over the tube at the stern, blow it up, let go, and watch the toy boat surge through the soap suds, leaving nothing but bubbles in its wake Compiled by Phil Ruimte

W

hile the idea of using pressurised air to power vehicles is nothing new (it dates back to the 19th century), it has been sadly overlooked. A vehicle that runs on air sounds like a fantastic idea, but energy is still needed to compress the air, and the losses that go handin-hand with converting energy still have to be taken into account, just as in fossil fuelbased propulsion systems. Pros and cons aside, we still haven’t seen air-powered transport make an impact in the race to find economic, environmentally friendly ways to get from A to B. But Melbourne industrial design student Dean Benstead thinks compressed air does have a role to play in the future transport mix, and he’s designed a working, air-powered motorcycle prototype with a view to exploring the viability of the platform. Benstead’s “O2 Pursuit” motorcycle is based on the geometry of a current-spec 250cc motocross bike, and uses running gear from a WR250F and Engineair’s DiPietro air engine as its power plant. Compressed air is stored in a scuba-diving tank. In its current form, it can hit speeds of up to 139km/h – and, given that the first prototype was developed with a focus on design rather than engineering, Benstead believes performance can be improved with further development. “The concept evolved from research to sketches to computer modelling, before the chassis and bodywork were built and fabricated at local manufacturer Rinlatech Engineering,” says Benstead. “I wanted to explore the viability of compressed air as an alternative fuel, and my childhood experiences riding dirt bikes led me to design the motocross bike based around the Engineair engine. “The next prototype would involve a total re-style, and different material choices over the current steel tube chassis, such as

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SOUTH AFRICAN PROPERTY REVIEW

aluminium or even futuristic printed titanium, reducing the weight to something comparable to a heavy-duty mountain bike.” While the O2 Pursuit outs zero emissions itself and needs no batteries, the energy to compress air in the first place might still prevent the addition of the 100% green sticker. Solar energy used to power an electric compressor at home could do the job, though. All in all, since the working principle behind air-powered vehicles is relatively simple and affordable, it would be tremendous to see this technology advancing. And yes, the O2

Pursuit can almost 100km on a canister, with an impressive top speed of 139 km/h. Benstead isn’t the only one experimenting with this technology – multiple companies have been working on air-powered car tech for years. The most prominent recent case – the AirPod by Tata – chugs along at a maximum speed of 75km/h, and the manufacturers believe that the cleaner-tech car could revolutionise India’s streets. A working demo of the O2 Pursuit was revealed at the Sydney Motorcycle & Scooter Show in Australia on 25 November 2011.


SAPOA events

CUTTING EDGE HEALTHCARE SOLUTIONS

BROUGHT TO YOU BY WSP | PARSONS BRINCKERHOFF Rapid developments in science and technology, as well as organisational changes, create a complex and uncertain Healthcare environment. Pricing constraints due to government policies and increasing competition, as well as the rising costs of Research & Development and increasing legislative pressures, add to the complexity in an African context. WSP | Parsons Brinckerhoff’s team of expert engineers recognises the significant challenges our healthcare clients face. We have a strong Global track record in delivering healthcare projects from hospitals to local clinics, and from sophisticated laboratories to pharmaceutical production facilities. We bring specialist know-how in process intensification, process modelling and flexible facilities to our projects. Our unique combination of specialist skills, backed by global reach, enables us to offer a combination of the latest thinking and best client service – whatever and wherever the challenge.

36 700

500

40

EMPLOYEES

OFFICES

COUNTRIES

Learn more about this and other projects on www.wsp-pb.co.za

SOUTH AFRICAN PROPERTY REVIEW

29


SAPOA events

1

Specialised Knowledge and Expertise 3

2

4

1 Medical facility for 200 Rivonia Road in Morningside, Johannesburg. Architects: Geyser Hahn Architects. 2 The Union office development for Eris Properties in Accra, Ghana. Architects: Boogertman + Partners. 3 & 4 Head office for Business Connexion for BCX HQ Offices Co-ownership JV in Centurion, Pretoria. Architects: Stauch Vorster International. QS services in JV.

Whilst timeously and adequately providing traditional quantity surveying services DelQS identified and developed certain services vital to the bottom line of investors • Elemental construction cost estimating • Financial viability analysis (in-house developed program : precise and logical in presentation) • Building contract expertise • Final settlement with contractors • Cost control and reporting (in-house developed program: proactive and audit trail) • Africa projects (expertise and track record) • Specialised developments (retail, hospitality, healthcare, student housing, etc)

QUANTITY SURVEYING

Nico Roos

Liza Botha

Wilco Lourens

50

Gerhard de Leeuw Akopo Africa

Corné de Leeuw

Christine Larson

SOUTH AFRICAN PROPERTY REVIEW

DISPUTE RESOLUTION

PROPERTY VALUATION

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

South African Property Review March 2017  

South African Property Review is the official voice of the South African Property Owners Association, a B2B publication which is also availa...

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