Business Day HomeFront - 24 March 2017

HOMEFRONT 13 2016 WWW .BDLIVE.CO.ZA WWW.BDLIVE.CO.ZA 24OCTOBER MARCH 2017

MUST READ

Buy a slice of bushveld heaven PAGE 2

Commercial property trends PAGE 22

Executive rentals: to invest or not?

PAGE 28

Apartment living on the rise Property and citizenship PAGE 32

Convenience, safety and proximity, as well as excellent investment returns, are fuelling the middle-class urbanisation trend in SA’s big cities

PAGE 16

HOMEFRONT

DÉCOR

African dream

A bush lodge is a refuge by nature; add an injection of north African exoticism and it becomes an escape within an escape, a self-catering Saharan sanctuary in the African veld WORDS: JULIA FREEMANTLE :: PHOTOS: JULIA FREEMANTLE AND SUPPLIED

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n interior designer and travel expert by trade, Lodge 23 owner Sue Lederle is a clear case for making what you love doing your day job. She has poured both these passions into this beautiful, luxury self-catering lodge in the Elephant Point private reserve, an area known for its concentration of big game.

A luxury estate is being developed by the Legacy Group on 290 hectares bordering the Kruger National Park and neighbouring Sabi Sands, on the banks of the Sabie River.

Only 65 lodges are planned for the estate, making the opportunities for owning a piece of it finite.

Lederle’s skill as a designer and her experience as a travel agency owner show up on a macro and micro level — from the flow of the space to the smallest décor detail.

Seeing the vision for the

HOMEFRONT “Lederle also drew on bush motifs — the arches and pavilions married with thatch and rietdak roofing in a hybrid of bush camp and city riad”

properties like this cannot be let independently and can only be used by the owners. So this was a rare find — an investment that also earns an income.

ENTERTAINMENT

property through required site visits every two weeks, and with architect Jack Andrew, Lederle was on hand to steer the process in the right direction.

“I fell in love with the Moroccan style on my trips — there, the buildings themselves are beautiful and mysterious, with generous volume and interesting detailing, and don’t need much adornment to come alive.

That’s what I was aiming to achieve here,” Lederle says about the design of the 480m 2 space.

HYBRID While modelling it on Moroccan architecture, she also drew on bush motifs — the arches and pavilions married with thatch and rietdak roofing in a hybrid of bush camp and city riad. While the influence is very apparent, it has not been administered without discretion. Instead, Lederle has subtly woven other influences through — French antiques, floral fabrics, velvet-upholstered chaises, carved Indian fourposters — to give it a layered effect.

Colour is a key element too, and vibrant reds, oranges, pinks and teals make a bright splash against the taupe walls and sunbleached bush backdrop. “Colour is a big thing in my life, and it’s integral to the style.”

The effect is eclectic, without a whiff of the usual colour-by-numbers game lodge look.

Another thing that sets it apart, aside from a complete lack of safari clichés, is its capacity to be run as a self-catering lodge. Lederle and her late husband John had looked for years for the ideal location in the bush — most PRODUCED BY TIMES MEDIA PROPERTY PUBLISHING Unit G4, Old Castle Brewery, 6 Beach Road, Woodstock, 7925 021 447 7130

The layout of the public areas was designed with entertaining as a focus and the house is at its best filled with people. Inside, the huge kitchen/dining/living area is totally open, and upstairs a game-viewing deck cum bar looks onto the river.

The 395m 2 of outdoor living space navigates different levels and purposes. A sofa-filled pavilion centred on the pool invites lounging, an elevated roof deck is perfect for stargazing or sundowners, and the outdoor dining deck pizza oven and braai boma keep dinner interesting from night to night. But all focus on the spectacular setting and the idea of being social in the bush.

SLEEPING Four river-facing suites branch off in pairs to each side of the house. Each has its own identity and special features — one with an outdoor bath, one with an open-air shower, all with beautiful fabrics, black and white Moroccan tiles, unique furniture and a slipper bath.

You can leave your door open courtesy of a mosquito net screen, or keep cool in the aircon when the temperature spikes.

Lederle has achieved a fine line between guest house and home. Its little luxurious touches remind you that you are on holiday, while the warmth of the interiors makes you feel at ease. Everything has been thought through, from everyday necessities such as Wi-Fi and a coffee station complete with Nespresso, to nice-to-haves such as daily housekeeping, flasks for game drives, umbrellas by the door and solar lanterns outside. lodge23.co.za

“Colour is a big thing in my life, and it’s integral to the style”

Sue Lederle, owner, Lodge 23

A EDITORIAL TEAM Editor: Kim Maxwell Creative Director: Mark Peddle Designer: Samantha Durand

PUBLICATION

Editorial Consultant: Bridget McNulty Copy Editor: Lorraine Kearney Content Business Manager: Catherine Davis

ADVERTISING SALES Michèle Jones Susan Erwee

michele.jones@thecreativegroup.info susan.erwee@thecreativegroup.info

084 246 8105 083 556 9848

HOMEFRONT

Q&A with Sue Lederle Lodge owner Sue Lederle talks about how to earn an income from your game farm investment.

How easy was it to find a private property to buy in a game reserve?

It is really not easy at all as there are not many developments with rental flexibility. I wanted a property that could wash its face when we were not using it. Elephant Point is among the few that allow owners to rent their homes, which really makes a huge difference.

Advice for a potential investor? It is really quite difficult as there are not many developments quite like it, especially being that you are in the Kruger National Park and border the Sabi Sands. I found this after years of searching and actually just picked up on it via the Sawubona Magazine on a flight to Europe. One has to just keep nosing around to see what is happening in the area.

Which upgrades made it more rental-friendly?

Architectural designer Jack Andrew and I designed the

lodge from scratch, always with the luxury rental market in mind and it has paid off. Being that I am an interior designer from a hotel background, it was easy to work out the basic requirements. Because we were first to build and first to rent we set up our own website and did a lot of marketing to get the property out there. It has been enjoyed by all and we really do enjoy the most fabulous reviews.

The idea was to have your private use, while earning rental income to offset the bond payments. Has that happened? From the first month that we put it out there for rental, it has paid its way. It certainly is the way to afford your own little piece of heaven in a prime part of the bush.

What are the drawbacks of a self-catering game lodge as an investment?

Logistics and equipping the lodge was never a problem as this is our game. The climate is fairly harsh so to have beautiful things out there you do land up replacing fairly often.

However, one does put

it down to normal wear and tear as the lodge is constantly busy.

Is Lodge23 still for sale?

It is indeed and it is looking truly beautiful. The rain has transformed the area and it really is a piece of heaven.

“From the first month that we put it out there for rental, it has paid its way�

Sue Lederle, owner, Lodge 23

Lodge 23 is being sold fully furnished, price on application. Although it is currently run as a guesthouse, it can be added to the rental pool of the estate.

Enquiries to justin@ lederleholdings.co.za Elephant Point is a five-hour drive from Johannesburg, a 60-minute drive from Kruger Mpumalanga International Airport and a 40-minute drive from Skukuza Airport.

WESTERN CAPE Atlantic Seaboard 021 439 7415 / Southern Suburbs 021 673 4200

Bishopscourt / R35 million

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Bedrooms 5 / Bathrooms 6 / Garages 4 / Iconic home with palatial proportions offering views forever, perfect for entertainers and active families. This relatively new, north-facing mansion offers luxuries of a heated indoor and outdoor pool, customised squash court and tennis court. Spacious, beautifully decorated inter-leading reception rooms, equipped with bars and gas fireplaces flow seamlessly onto terraces with built-in-braai's, set in a manicured garden with magnificent mountain views.

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Constantia Upper / R21.9 million

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Clifton / R35 million

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Bedrooms 6 / Bathrooms 5 / Garages 3 / Exceptional proportions and open-plan living make this desirable home ideal for easy living. Set in a quiet enclave of 4 houses at the end of a cul-de-sac, this superbly appointed home has sophisticated features including Cherrywood kitchen built-in coffee machine, pellet fireplaces, central vacuum system, automated patio blinds, indoor/outdoor pools and wine cellar.

Bedrooms 4 / Bathrooms 2.5 / Parkings 2 / Live in one of the most desirable locations and own the entire Clifton bay from this superb spacious garden apartment. Large reception rooms lead onto an expansive undercover entertainer's patio complete with private pool. Spectacular views of the Atlantic Ocean and the Twelve Apostle mountain range. Open-plan kitchen for grand entertaining, separate laundry, sauna and storeroom.

Angie Bloom 083 678 7876 / Arie KadĂŠ 083 448 0488 / Lauren Clark 083 306 3830

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Kleinmond / R1.95 million Bedrooms 3 / Bathrooms 2 / Garages 2 Great Value. Located in a quite area close to sea front and reserve. Abundance of living space - 4 separate living areas. Lovely sea views from kitchen, lounge, dining room and main bedroom.

Lise GĂśtz 083 609 7215 / Adri 071 157 6689

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Onrus River / R5.8 million

Wellington / R 2.392 million

Bedrooms 5 / Bathrooms 5 / Parking 4 Vintage charm on the Onrus Peninsula. Tucked away in a quiet cul-de-sac. Walk to popular Onrus beach – this home will steal your heart.

Bedrooms 3 / Bathrooms 2 / Garages 2 Spectacular, uninterrupted views. This large modern family home is set high on a hill in Berg-enDal and offers entertainment patios and a lovely garden with lapa and swimming pool.

Annamarie Gaigher 082 578 3334

Lynette Kanneyer 082 672 1022 / Erika Odendaal 082 412 6964

HOMEFRONT

BUY TO LET

How to get the best returns

Solid, practical advice from two industry experts for those considering residential or commercial property investment WORDS: NEESA MOODLEY & SUPPLIED :: PHOTOS: ISTOCK

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uying a property as an investment with the intention of letting it can be a stressful and costly exercise, both in money and time. However, there are things to be aware of if you are aiming for good returns.

These industry experts offer their respective tips for choosing commercial or industrial properties, or opting for a residential buy.

Quagga Properties MD Len Pearson offers these tips for investing in commercial or industrial property: 1. Buy-to-let investments in the commercial and industrial property sector yield rental returns far higher than residential rental returns. Typically, you can expect a gross return (before expenses) of 11.25% and a net return (after expenses) of 9%.

2. Rental leases are usually three to five years, which means that you do not need to look for a new tenant or renegotiate rental rates.

The escalation rates are included in the contract and are normally between 8.5% and 9.5% a year.

3. Due to the nature of the buildings, commercial and industrial properties

are far more difficult for tenants to “destroy� and therefore easier to keep in optimal condition. Another plus in the commercial and industrial sector is that when tenants vacate a property at the end of a lease they are legally required to return the premises to the exact condition it was in when they first moved in, at their own expense.

4. The best size commercial premises to invest in are between 200m 2 and 500m 2 as these have the biggest demand from tenants.

5. It is not advised to invest in a smaller factory (under 100m 2) as these factories

generally attract start-up businesses that are not financially stable and could end up not being able to fulfil their lease obligations.

6. New or virgin commercial and industrial property investors should always go through a reputable broker active in the sector. The broker will be able to advise you on all properties available as well as help with financing costs and securing financing arrangements, for example through a bond originator.

In terms of location, Pearson says one of the best industrial investments and best value for money in the Western Cape currently

HOMEFRONT

Lansdowne Investment Property CEO Jonathan Kohler offers simple rules for buy-to-let property investment: is Capricorn Park in Cape Town’s southern suburbs.

“From a commercial property perspective, the Steenberg A Grade offices, just below Ou Kaapse Weg in Cape Town’s southern suburbs, are definitely one of the best places to invest,” he says.

Nationally, the latest research in the South African Property Owners Association Office Vacancy Survey for Q4 2016 shows that 48% of new offices being built are in Sandton, creating opportunities for potential buy-to-let investors.

“Buy-to-let investments in the commercial and industrial property sector yield rental returns far higher than residential rental returns” Len Pearson, MD, Quagga Properties

1. A managing agent can choose a good tenant, but it is key to ensure that the agency’s credit department is independent of it. The deposit paid by the tenant will safeguard against any damages made to the property during the rental agreement, so it is critical to have this in place.

2. A property in a good area with high demand for rental properties will yield excellent returns on rent every month. Keep your investment properties in the property price sweet spot of R800,000 to R1m and you will increase your chances of the property always being tenanted, and easily sold at a good price. A one-bedroom

flat has a 2% higher rental return than a two-bedroom.

It is also important to remember how much bigger the market is that can afford to pay on average R7,000 a month in rent.

3. The less you have to pay to make up for the difference in either monthly bond repayments or levies, the better the investment.

The shortfall payment, which is the difference the investor has to pay monthly to make up the total amount required by the property, should be as low as possible. On a good investment, you should start seeing a surplus from the rental income collected after 24 to 36 months. Annual

rental escalations, which should be incorporated into lease agreements, will also help to reduce the overall shortfall.

4. Do your due diligence, especially if you are investing in sectional title developments, to ensure the body corporate and trustees are financially viable. From an estate management perspective, assess the types of service providers used. Many investors tend to neglect their rental properties and only conduct maintenance when things are falling apart.

5. Check the valuation of the property, whether you buy it at market value or

from a distressed seller, to ensure your capital appreciation, which is linked to purchase price.

Capital appreciation is only realised when the property is sold.

Kohler says: “A rental property should always be competitive in price and must be well maintained.

If a good tenant is placed in the property and it is well looked after, the owner will get the best out of it and tenants will also be willing to pay the asking rental charge.”

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FOCUS ON: SITARI COUNTRY ESTATE

ADVERTORIAL

An award-winning country lifestyle A Sitari offers it all — beautiful parklike gardens, a wetland, security, a top quality school and close proximity to the big city WORDS AND PHOTOS: SUPPLIED

s the winner of the five-star award for Best Residential Development South Africa 2016/2017 at the prestigious African Property Awards, Sitari Country Estate is in a class of its own. Situated just outside Somerset West, the exclusive estate seamlessly merges luxurious country living with modernday conveniences.

Interwoven with the beautiful homes are green open spaces, herb

gardens, orchards, ponds and tranquil streams.

Children can run free, while their parents can enjoy leisurely evening strolls along the 14km cycle and pedestrian route. The reinstatement of the second largest wetland in the Helderberg basin, Sitari’s Zeekoevlei, will add an element of natural serenity on residents’ doorsteps.

A central park spine stretches all the way from the R102 to the country clubhouse. The park features smaller, more intimate spaces such as parterres, seasonal vegetable gardens, rose gardens, pergolas and tall hedges. The clubhouse features a café and deli, resort-like pool area, and children’s play zone.

At Sitari, learning is just as important as playing.

That is why the fastestgrowing independent school brand in South Africa, Curro, opened at the estate in 2016.

At this sought-after school, children receive education of the highest standard in a vibrant, stimulating environment.

For Joburgers relocating to the Cape, Sitari offers the perfect new home.

Trade the chaos of the city for tranquil country living in a safe, family-friendly

community at the foot of the Helderberg.

Here, you will enjoy the winelands’ gorgeous vistas, as well as close proximity to Cape Town and beautiful beaches.

TOP-NOTCH SECURITY Sitari’s security system is of the highest standards, with the Princeton Group acting as the estate’s accredited service provider. On-site security is monitored via the main gatehouse, with visitors entering through either the main or secondary gatehouse — both of which have biometric readers, number plate recognition and 24/7 staffed access control.

Perimeters on the outside of the estate feature underdig protection, serrated strips, anti-cutting and anti-climbing fencing with electrics on top, as well as Future Fibre technology with heatsensitive triggers.

Each junction inside the estate also has four-way cameras connected to the control room.

PROPERTIES ON OFFER Buyers can choose from country plots, luxury and premium apartments, village homes, country homes and the premium

Signature Collection.

Each of Sitari’s homes boasts high-quality, luxury finishes and is curated with incredible attention to detail.

Purchasers also have the option of building their own home on one of the country plots, with the help of an approved panel of accredited architects and builders.

The exclusive Signature Collection, of which 45% is already sold out, includes 22 premium stands that front on to the landscaped central park spine. Buyers can also design their dream homes with the help of the estate’s accredited professionals and suppliers.

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GET IN TOUCH Sitari Country Estate sitari.co.za Tel: 021 201 7337

HOMEFRONT

TENONQ, Sea Point

URBANISATION

Apartment living on the rise

Convenience, safety and proximity, as well as excellent investment returns, are fuelling the middle-class urbanisation trend in SA’s big cities WORDS: HELEN GRANGE :: PHOTOS: SUPPLIED

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The Winchester, Observatory

he global urbanisation trend, defined by young professionals and families relocating to smaller, more conveniently located urban hubs, is gathering momentum in Johannesburg and Cape Town, as developers tap into a clear demand for central locations, low maintenance and stateof-the-art security.

In Johannesburg, the growing choice of apartment developments proliferating in and around Sandton, Rosebank and Bryanston has yet to saturate the demand.

One- and two-bedroom flats priced from R1.5mR2.5m are selling out within days of their release, and in Rosebank particularly,

where commercial redevelopment has spawned a strong demand for residential property, investors are seeing excellent returns.

ROSEBANK Developer Renprop has The Vantage, The Tyrwhitt and The Median in the heart of Rosebank. It confirms it is responding to a “strong, pent-up demand” for accommodation in this city hub as a result of the upgrades to the Rosebank precinct.

Says Chris Renecle, Renprop MD: “The market is mostly executives and corporates looking for upmarket accommodation, as well as investors looking for a good buy-to-let opportunity that offers solid rental potential and good

HOMEFRONT capital growth.”

Flats are priced at about R1.75m, with penthouses from R7.5m, and they are within walking distance of The Zone@Rosebank, Rosebank Mall, the Gautrain station and fitness, entertainment, restaurant and medical facilities.

SANDTON Similarly, the live, work, play lifestyle these developments offer is the strongest drawcard for luxury Sandton flats such as Sandton Skye, developed by CHN Eagle, and Regiments Real Estate’s 200,000m 2 residential estate that is planned for Sandton CBD, Kgoro Central.

Units at Kgoro Central, which is being built over the next six years, are selling at an average of R2.5m, and according to Regiments executive director Sydney Barlow, there is a huge, untapped demand for safe city spaces where people can live, work and even raise young families without the need to drive anywhere.

“We’ve already exceeded 70% sales of units, and are now busy with senior level finance to start building. Given its unbeatable location and truly cosmopolitan lifestyle offering in Africa’s richest square mile, the value growth on these units is expected to be exceptional, at about 25% per annum,” says Barlow.

Melrose Arch, Amdec Group’s trendy mixed-use precinct south of Sandton, last year launched its own apartment development, the 45,000m 2 One-onWhiteley, which has proved

7 on Middle, Morningside popular. “We have sold 90% of the 220 units released in the first phase release, which are targeted at young professionals and young families. The uptake has been exceptional,” says Nicholas Stopforth, Amdec head of developments.

BRYANSTON Apartment developments are also mushrooming in Bryanston, the burgeoning urban hub adjoining Sandton to the north.

Leogem’s Shearwater

“Given its unbeatable location and truly cosmopolitan lifestyle offering in Africa’s richest square mile, the value growth on these units is expected to be exceptional” Sydney Barlow, executive director, Regiments

Estate, for example, has sold 10 of its 39 contemporary units (priced between R2.7m and R5.5m) since launching towards the end of last year. “The attraction is lifestyle — it has a gym for the residents and excellent security, and of course it has excellent location — it’s near Rivonia Junction and Riverside mall, and right opposite is Sandton preprimary,” says Jessica Cabanita, marketing manager for Leogem.

The same goes for

Limestone’s new 7 On Middle in Morningside, which has sold more than 85% of its units, priced from R1.79m. Aside from its central location, it offers a clubhouse, gym, swimming pool, high-speed fibre internet, restaurant and 24-hour security. Investors have been guaranteed R15,500 a month in rentals, escalating at 6% annually.

Even at the top end of this market, in the R5m-R10m bracket, there is a definite pull towards apartment

living. The average price for a unit in The Houghton, which is geared to all types of home owners but strikes a particular chord with young professionals who enjoy proximity to key nodes, is R8.5m.

“It is also attracting families with children who previously commuted to the good schools in the area from outlying areas, but are finding the traffic congestion unfeasible,” says Arnold Forman, director of Seven and Twelve on Houghton.

Shearwater Estate, Bryanston East

The Median, Rosebank

The Median, Rosebank

CITY BOWL In Cape Town, new flats are concentrated in the City Bowl, Green Point and Sea Point, with one of the most exciting residential developments in the pipeline being Amdec Group’s Harbour Arch mixed-use precinct, in the vein of Melrose Arch, on the Foreshore.

“Cape Town’s expanding population and escalating traffic congestion between the city and suburbs during peak hours is driving the

HOMEFRONT

Arnold Forman, director, Seven and Twelve on Houghton demand for living space close to the city,” says Chad Shapiro, senior commercial broker for Lew Geffen Sotheby’s International Realty.

Shapiro predicts that within a decade, the entire Main Road stretching from Sea Point to the central city will have become an extension of the CBD, as well as a top-end commercial zone and popular residential zone in its own right, with

7 on Middle, Morningside semi high-rise flats and mixed-use complexes lining the thoroughfare.

Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty, says rampant sectional title development here and sharp escalation of sale prices confirm Shapiro’s prediction. He says Propstats records show the average sale prices of flats are R3.6m in Sea Point and R3.47m in Green Point, reflecting an annual growth of 15% and 21% respectively, since 2010. At the top end, Cape Town flats are now breaching the R20m mark.

Shearwater Estate, Bryanston East

OBSERVATORY Observatory is equally robust, with blocks such as The Eden by Horizon Capital and Rawson’s The Paragon, Madison Place and The Winchester turning excellent sales. Within days of its release on the market, The Winchester sold 93% of its 105 units, selling for upwards of R1.7m.

Says Rawson sales agent Brad Morgan: “Its proximity to UCT and Groote Schuur hospital attracted a lot of medical professionals, and wealthy parents of students also looking at it as a good opportunity to capitalise on

the market growth. A big factor is because it’s in an urban development zone, the buyer can claim 55% of the purchase price as a tax deduction over 11 years.”

Morgan says security is another strong drawcard for these contained city blocks, many of which have biometric access control and 24-hour guards.

SEA POINT There is also a need for people in urbanised areas to be interconnected, however, and this is the underpinning objective of Blok’s TENONQ in Sea

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Point. Communal urban living was the cornerstone around which this 53-unit complex was designed, so the flats are double-volume and pet friendly, and there is a concierge, walkways which lead to a roof deck, as well as a gym, pool, braai facilities and lounge areas.

Says Block MD Jacques van Embden: “We hope that buildings such as TENONQ will encourage more development along these lines, as there is most certainly a need for residential density that delivers more than just a place to rest one’s

head, but also to connect with neighbours and neighbourhoods.”

Finance Minister Pravin Gordhan’s recent increase in the transfer duty threshold, from R750,000 to R900,000, does not affect sales of new flats, as no transfer duty applies.

However, it will make it more possible for firsttime buyers to buy a flat closer to city hubs, and agents are predicting that in incentivising the investment market, good rental opportunities closer to big city and urban hubs will become ever more available.

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HOMEFRONT

COMMERCIAL PROPERTY

Looking ahead Property developers and various funds may diversify to cater for student housing demand, while institutional investors will be forced to scale back their exposure to shopping centres WORDS: HAYLEY IVINS DOWNES, LIGHTSTONE PROPERTY HEAD OF REAL ESTATE :: PHOTOS: ISTOCK

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he economy underperformed again in 2016; however, there is a slight increase in the level of optimism.

The International Monetary Fund expects SA’s gross domestic product (GDP) growth to remain flat at 0.1% this year, noting

that the economy will only experience a modest recovery. The government is slightly more optimistic and expects moderate GDP growth recovery. Finance Minister Pravin Gordhan recently said expectation at this stage was that GDP growth would increase from 0.5% in 2016 to 1.3% in 2017.

Rosebank is starting to attain rentals that supersede those of Sandton, and there is still activity in Waterfall Estate, Steyn City, Umhlanga and Cape Town CBD, with a continued drive to green buildings. Regardless of this, consumers are still finding it difficult to

meet increasing costs.

Consumer price inflation averaged 6.5% in 2016, increasing to 6.6% for January this year.

This is higher than the averages we have seen in the past five years and the cost increased at an even faster pace for food and nonalcoholic beverages, and housing and utilities. Property funds have turned their attention offshore for additional growth.

1. Strong competition in Gauteng shopping malls There are signs of pressure in the retail property space, mainly as a result of cannibalisation and strong market competition.

New regional and superregional malls are opening or undergoing massive expansion in Gauteng in particular. This has put pressure on trading densities in neighbouring centres, exacerbated by the slowdown in the economy that has strained retail

spending in the past year.

The same centres are competing for the same struggling and debt-ridden customers. In 2016 alone, two new centres were added to the market: the 90,000m² Mall of the South and the 131,000m² Mall of Africa. Menlyn Park Shopping Centre and Fourways Mall are also undergoing major expansion. Menlyn Park is the largest shopping centre in Africa with 170,000m² of retail space.

Customers are spoilt for choice; the bigger the centre the more choices available. This means the smaller centres will be forced to specialise, much like Nicolway Bryanston and Morningside Shopping Centre in Johannesburg, which offer restaurant facilities.

Competition is prevalent in the retail space; however, from 2017 onwards, with the economy unlikely to improve, real estate institutional investors will be forced to scale back and diversify into other segments of property.

2. Office market movement The office market will remain under pressure, with slow growth in rental rates.

Grade A Johannesburg office rentals have had the highest year-on-year growth rate, with an overall average growth rate of 5%, while Grade B rentals had a

2.9% growth rate.

Vacancy rates had a marginal increase from 11.3% in Q3 2015 to 11.8% in Q3 2016. This can be attributed to demand being focused in the prime areas.

In Cape Town, numerous office completions have been no threat to the office vacancy rate. This indicates stable demand and strong rental growth well above inflation. The low vacancy rate does imply limited options for larger office requirements.

3. Buoyant demand for student accommodation One of the many results of the #Feesmustfall movement, which became more violent in 2016, is students fearing being on campuses because of the unrest. This is encouraging more students to find accommodation off campus. Further to this, the student population has been increasing, with a number of students looking for safe, secure and affordable accommodation.

There has been an increasing demand in students looking for accommodation that current campus housing stock cannot meet.

Property developers will consider increasing investment in this sector of the economy as the demand continues to rise.

We are likely to see various funds diversifying to cater for student housing demand this

HOMEFRONT year. Developers have ignored this real estate sector for a long time as much of their investment has been allocated to industrial, office and retail development, which is evidently becoming saturated.

According to Higher Education and Training Minister Dr Blade Nzimande, student accommodation supply caters for only 100,000 out of the 530,000 students. The ministry estimates that by 2030, an additional 400,000 beds will be required as various old universities are housing students in derelict buildings, old hotels and office conversions in inner cities.

For property developers, the opportunity is ripe for penetration and will alleviate the social challenges faced by the future employees and employers of this economy.

4. Infrastructure investment to drive real estate investment Through the expansion of Gautrain lines expected to begin in five years’ time, space for commercial activity will be created particularly in areas such

as Soweto, Mamelodi and the western suburbs of Johannesburg. The expansion is also expected to create more real estate demand, particularly around the stations, be it for commercial property, rental stock or more residential sectional schemes.

The Bus Rapid Transport (BRT) system is also likely to influence acquisition decisions. All major municipalities have or are implementing a BRT system, which is aimed at improving access to safe public transport. With this investment in mind, it could revive some of the nodes that are under strain, particularly where infrastructure is developed along busy commercial secondary nodes.

5. Transaction activity dominated by private funds Commercial transaction activity reached about R127bn in 2016, from R118.9bn in 2015. Although this is an improvement, it is only a 7.3% increase and a slight drop from the 13.1% increase seen in 2015.

The listed sector dominated transaction purchases in 2016,

“The office market will remain under pressure with slow growth in rental rates”

increasing by 42% from 2015. Funds are looking for valuable assets and land for development to cater for future demand. In 2017, we are likely to see even more purchases as various funds

diversify from traditional sectors to residential and student accommodation.

6. Top suburbs Below are the top 10 commercial areas in SA

ranked according to total transaction value.

The majority of commercial transactions are in Gauteng and the Western Cape. Gauteng, however, is leading the

field in terms of the total value of transaction, which exceeds R9.6bn.

Lightstone Property is a data and analytics company

Province

Suburb

Number of commercial properties

Volume of transfers

Value of transfers

Property volume transfers

Western Cape

Cape Town centre

7,164

491

R3,584,108,606

6.9%

Gauteng

Centurion CBD

141

9

R2,081,231,533

6.4%

Gauteng

Pretoria Central

741

29

R2,002,185,000

3.9%

Gauteng

Halfway House Estate

317

17

R1,954,527,427

5.4%

Western Cape

Epping Industrial

386

35

R1,893,782,555

9.1%

Western Cape

N1 City

37

3

R1,855,822,630

8.1%

Free State

Bloemfontein Central

811

58

R1,403,210,871

7.2%

Gauteng

Isando

220

11

R1,332,106,544

5.0%

Gauteng

Sandown

743

65

R1,191,327,104

8.7%

Gauteng

Rosslyn

192

12

R1,098,606,678

6.3%

Home is where the heart is.

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FOCUS ON: WATERFALL

Mall of Africa

ADVERTORIAL

Waterfall — Gauteng’s new lifestyle city Attacq is building an entire lifestyle city where people can live, work and play — with offices, malls, homes and healthcare completing the picture WORDS AND PHOTOS: SUPPLIED

W

aterfall is quickly developing into Gauteng’s new lifestyle city where people can live, work and play. Every aspect of the central business district, Waterfall City, has been planned and designed according to new urbanism principles to include the centrally located 1.3ha Waterfall Park, the world-class Mall of Africa, various office developments, pedestrianfriendly landscaped sidewalks and more.

diversified portfolio and development pipeline. “The concept behind Waterfall is to create a new lifestyle city where people can live, work and play,” says Attacq CEO Morné Wilken. “Waterfall is a strategic priority for Attacq as an infill development that is easily accessible, close to major transport routes and centrally located between Johannesburg and Pretoria.”

and managed by a single company — Attacq.”

QUALITY RETAIL Says Wilken: “Our crown jewel, Mall of Africa, performed above expectations in the first

GROWTH NODE The second wave of Attacq’s Waterfall development beyond Mall of Africa is well under way. Waterfall is Attacq’s core development and is a catalyst for growth in Gauteng. The company behind Gauteng’s new city development is Attacq, a company in a unique position to develop, own and manage Gauteng’s new integrated lifestyle city with a wide variety of offerings from retail and recreation to business and light industrial developments.

Attacq is a South African company with a quality

During construction, more than 27,000 jobs will be created in Waterfall and upon completion about 60,000 people will work in the city and surrounds.

“Attacq is proud to invest, develop and grow Waterfall and Waterfall City as a world-class lifestyle city,” says Pete Mackenzie, Attacq head of development.

“We are very positive about the way ahead.

Attacq has internalised the complete development and management of Waterfall City. We are in the unique position that in the future, Waterfall will be a city that has been developed, owned

The Atria

eight months of trading to December 31 2016.

Mall of Africa generated an exceptional monthly average trading density of R2,777/m 2 and achieved more than 1.1-million visitors per month since

opening on April 28 2016.

The mall’s average gross rental per square metre is about 16% below other comparable super regional malls. This positions Mall of Africa well for future value growth.”

FOCUS ON: WATERFALL

“The concept behind Waterfall is to create a new lifestyle city where people can live, work and play” Morné Wilken, CEO, Attacq

Gateway West building Waterfall City is ideally located on the N1 just off the Allandale interchange. A dedicated Gautrain bus route from the Gautrain Midrand station gives commuters a convenient way to travel between Mall of Africa and the rest of Gauteng.

Mall of Africa boasts a variety of top international and local retail brands, and is fast becoming a shopping destination of choice. A range of restaurants and food outlets cater for every taste, extending the social dining experience into the evening.

LIVE, PLAY In addition to Mall of Africa, Waterfall Corner and Waterfall Lifestyle

retail centres, located on the corners of Waterfall and Woodmead drives, offer the growing local residential estates a convenient shopping and dining experience.

As Waterfall City and the surrounds grow, additional services, amenities and lifestyle features are being added.

These include top restaurants such as Kream and Remo’s, the very popular Bounce!, Virgin Active gym, a Netcare private hospital, exclusive private schools and excellent retirement facilities, all of which attract visitors to the Waterfall precinct and residential developments.

BUSINESS LIFE The imposing Gateway West building, located on the Magwa Crescent entrance into Waterfall City, will be completed in November 2017. The contemporary building has a gross lettable area of 13,891m 2.

The Gateway West building will be the first of two iconic identical buildings in line with the modern architecture of Waterfall City. The buildings are located adjacent to Mall of Africa, and office workers will be able to take a short stroll to Mall of Africa and all it has to offer.

Environmental sustainability is an important focus for the

Waterfall development team. The intension is for the Gateway West building to achieve a Silver Leadership in Energy and Environmental Design (LEED) green rating by design.

Waterfall Point, opposite the Waterfall Polo Fields, is a unique offering not currently available elsewhere in the city. Waterfall Point is a contemporary sectional title office development that is being offered for sale.

Waterfall Corporate Campus is an office park development of 35,000m 2 being developed on Waterfall Drive. The first building of six is

under construction and is due for completion in February 2018. The office park includes a shared conference centre and restaurant.

“The urban fabric was a key design consideration for Waterfall and was used to create public spaces that encourage both pedestrian movement as well as pedestrian pause areas. The overall result is a park-like environment across the city that is not only nice to look at but also entirely usable,” says Wilken.

THE ATRIA The Atria is another exciting development in its final stages of design.

Atria East and West office buildings together with the residential tower and a hotel will form part of a mixed-use development in the heart of Waterfall City, directly west of Mall of Africa. The precinct is designed around beautiful landscaped terraces framing the urban spaces.

Each office building will comprise about 7,000m² and will have multivolume atria, allowing for ample natural light. The buildings have dedicated basement parking in a super basement and will be completed in 2019. The buildings are intended to be environmentally sustainable with a Silver LEED rating.

STEADY PROGRESS Schneider Electric offices in the Allandale Building

PwC Tower and Annex

Four more buildings were completed in Waterfall in the past nine months.

The Allandale, Dimension Data, Torre Industries and Amrod buildings increase the total directly held gross leasable area in Waterfall by 70,424m 2.

The second wave of the Waterfall development will enhance the lifestyle experience at Waterfall even further. “We look forward to the opening of the PwC Tower and Annex in February 2018. The opening of the PwC Tower will add an additional 3,500 mostly high LSM people to Waterfall,” says Wilken.

As the city grows it will increase trading densities in the various retail properties across Waterfall and increase weekday trading to more closely match the weekend visitor numbers.

“Currently we have active enquiries for more than 298,000m 2 of additional business space in Waterfall, including 172,000m 2 of light industrial space,” says Wilken. An agreement has been concluded for a regional distribution centre of 32,000m 2 for a highly respected global brand.

More announcements in this regard will follow soon.

Attacq is well on the way to designing and developing a new city in the heart of Gauteng, where people can live, work and play.

GET IN TOUCH Attacq ATT House, Waterfall City Tel: 010 596 8892 reception@attacq.co.za attacq.co.za

HOMEFRONT

An Ennik Estates rental

INVESTMENT

Executive rentals: good returns?

T It can be a great investment when luxury properties are rented by foreign multinationals. But there are pros and cons to servicing this niche market

WORDS: SUNGULA NKABINDE :: PHOTOS: SUPPLIED

An Ennik Estates rental

he market for executive rentals can seem appealing to property investors, simply because the rental income is so high. When dealing with corporates, particularly multinationals, which will cover the cost of a seniorlevel employee, lease agreements can be over a longer period than usual so there is greater security — if you can get that tenant.

Tamara Markman, Ennik

Estates rental agent of the year, says the key driver of the Johannesburg rental market currently is the sustained demand from relocating foreign and local corporate tenants. They account for about 50% of active leases in the leafy suburb end of the rental market, she says.

“In spite of the prevailing economic conditions, we are still taking calls from [mainly foreign] corporates for rentals in the R120,000 [bracket] per month. In

An Etchells & Young Property Brokers rental

“It’s not easy to get a decent return on a fully furnished property as there can be a high vacancy factor” Steven Leveton, owner, Blue Chip Accommodation

HOMEFRONT

An Etchells & Young Property Brokers rental fact, our highest rental right now is at R150,000 per month,” she says.

Multinationals, particularly in financial services, telecommunications, airlines and resources industries, are the most active, signing rental contracts for periods of up to five years.

The popular corporate rental locations are good northern suburb areas that are close to top private schools, such as Westcliff, Sandhurst, Hyde Park, Morningside, River Club, Atholl, Inanda, Melrose and Saxonwold, Markman says.

NO GUARANTEES But it is a risky business, especially in such a low growth economy. Corporate clients usually want these

“A good return on investment is if you can break even on a property after five years” Marius Bezuidenhout, corporate rental agent, Etchells & Young Property Brokers

properties to be fully furnished. Not only does the furniture have to be new and modern to appeal to corporate clients, the property often has to have all the features and services that a hotel might offer, from Wi-Fi to cleaning and gardening services.

Even with all those bells and whistles, however, there is no guarantee of finding a tenant.

Blue Chip Accommodation owner Steven Leveton says the market is extremely competitive, especially with the likes of Airbnb and other companies that market properties at daily rates.

“Most body corporates do not allow daily rentals and you would need longer leases to satisfy body corporate regulations, and it’s not always easy to get longer leases so your apartment may stand empty for a few months, thus dropping the return considerably,” he says.

“It’s not easy to get a decent return on a fully furnished property as there can be a high vacancy factor. However, if you are lucky enough to get a longterm lease it can provide a slightly better return than

“Our highest rental right now is at R150,000 per month” Tamara Markman, rental agent, Ennik Estates

development. It has resulted not only in corporate clients demanding lower prices, but also in owners having to accept lower rentals as the supply is too high, especially in Sandton where new developments are still being built.

BREAK EVEN an unfurnished one as long as you are prepared to put up with all the hassle of fixing any electrical appliances,” he says.

SATURATED Premier Classe Suites director Merle Chevreau says the Sandton market is particularly saturated.

The company owns and manages highend apartments.

“Everyone and their dog are jumping on the [executive suites] bandwagon. I’m not sure where the developers and investors think the people are coming from.

“I have had to reduce my rates so extensively it’s becoming a joke.”

Marius Bezuidenhout, corporate rental agent at Etchells & Young Property Brokers, says developers are part of the problem because the economy has not kept up with the rapid

A luxury Sandton apartment in a prime location, with the price for a two-bedroom, two-bathroom unit at about R4.5m, may not be a good investment.

“Because, even if you furnish that apartment, the most you can ask for is R35,000 per month, or R38,000 if it’s a really nice place. So there is no way that you will get a return on investment immediately. There will be a R5,000-R7,000 shortfall on the bond repayment amount so you would be losing money.

“A good return on investment is if you can break even on a property after five years,” says Bezuidenhout.

“If you can buy the property cash, however, it is a different story, because you can’t get that kind of interest if the money is sitting in your bank

account, but how many people can buy property for cash these days?”

Rosebank offers a better prospect because comparable furnished units in that area can go for almost half that amount,

he says. Ideally, the best investments are those where the owner can charge R15,000-R18,000 for a fully furnished place, because those are the easiest properties to market, he says.

BASIC NECESSITIES These are the must-haves for corporate tenants, says Etchells & Young Property Brokers:

position. All crockery and cutlery should be provided including appliances such as vacuum cleaners and irons.

Appearance: Grounds and buildings must be safe, well maintained and tidy. Parking areas must be clearly designated, well-lit and tidy.

Electronic appliances: There must be a flat screen TV (no box TVs) with all instruction manuals, DSTV with premium subscription and Wi-Fi.

Security: Alarm system and burglar bars are a bare minimum. Corporate tenants like to have CCTV, electric fencing and armed response. You also need a complete list of security procedures and contact numbers, instruction manuals, panic buttons and codes.

General conditions: All cupboards, drawers and windows must be clean.

Carpets should be clean, as should the curtains and blinds. Walls must be clean.

Taps should be in working order. Showers should have a strong adjustable flow of water and have doors.

Furnishings: There must be new, modern furniture — two sets of linen per bed, two sets of towels and two sets of bathroom mats for each bathroom, as well as two quality pillows for each sleeping

Other: All keys must be marked and remotes working. If there is a generator or inverter, there must be instructions for it.

A domestic service with a minimum of once a week should be provided.

HOMEFRONT IMMIGRATION

Get moving Citizenship by investment is an attractive option for SA’s mobile investors, made more desirable as an increasing number of countries offer such programmes WORDS: JOCELYN WARRINGTON, DAVID A STEYNBERG :: PHOTOS: ISTOCK BY GETTY IMAGES

The US SELLING POINT The US economy is the largest in the world in nominal value and purchasing power parity.

I

n exchange for a significant financial contribution or property investment, citizenship-byinvestment programmes provide the world’s elite with something more desirable than any material object — personal security and mobility.

“Applications for immigration grow monthly,” says Andrew Rissik, MD of Sable International, specialists in European and Australian citizenship. “The declining rand makes it increasingly difficult for South Africans to accumulate sufficient foreign exchange to meet investor-class criteria and is encouraging them to expedite their departure.”

Says Andrew Taylor, vice-chairman of Henley & Partners, residence and citizenship planning experts: “Buying a property

MINIMUM INVESTMENT abroad is a hedge against future losses in the value of the rand, since your investment becomes an asset you can later dispose of in the stronger currency.”

Stats SA puts the number of South Africans who emigrated between 2000 and 2016 at more than 102,793. According to New Wealth Management, which tracks the movement and ownership of high-networth individuals, of the 8,000 South African dollar millionaires who left the country in the past 10 years, 36% moved to the UK, 15% to Australia, 11% to the US, 8% to Canada, 5% to Mauritius and 4% to Israel.

“While the majority of the country’s emigrants with good skills and qualifications go via points-based emigration programmes to traditional destinations such as Australia, New Zealand,

the US, Canada and the UK, growing numbers of wealthy South Africans are using their cash to acquire second passports in lessfamiliar parts of the world such as Cyprus, Portugal and the Caribbean,” says Taylor. The most affordable citizenship-by-investment programme is offered by Dominica, for a contribution of $100,000.

“In many respects, alternative citizenship has become a strategic resource for wealthy individuals who want to operate transnationally, while, for South Africans in particular, it provides a lifestyle hedge and the ability to secure their futures and those of their children,” says James Bowling, CEO of Monarch & Co, specialists in international residencyand citizenship-byinvestment programmes.

As part of the EB-5 Immigrant Investor Program, you need to invest $500,000 in an EB-5 approved Regional Center commercial enterprise project in a targeted employment area. In return, you may get conditional permanent residence (a Green Card) for two years.

Thereafter, conditions may be removed and you can be granted full permanent residence.

Once you have been a permanent resident for at least five years can you file for naturalisation.

FINANCING There is no financing on the programme. The full investment amount and all fees must be paid upfront.

INCOME TAX There is a dual tax treaty between SA and the US, which means that people

who have lived in the US for less than 182 days during the tax year are regarded as tax nonresidents and only pay tax on income earned in the country. Tax rates range from 15%-39.6%.

Once a Green Card has been issued and you stay in the US, you must register as a tax resident.

SELLING You do not lose your citizenship if you sell.

Investors can sell their EB-5 preferred shares once they have their Green Card and its conditions have been removed, which generally takes between five and six years.

SCHOOLS The US offers high standards of free state schooling to all residents, from preprimary to secondary. There are also countless top-quality private institutions. The Webometrics Ranking of World Universities includes 103 US colleges in the Top 200, among these are Harvard, MIT, Stanford, Princeton and Yale. State

universities offer tuition to residents at fees that are significantly lower than those for foreign students.

TIP Says James Bowling, CEO at Monarch & Co: “Residency acquired through the EB-5 Immigrant Investor Program allows the visa holder to settle in any of US’s 50 states.

“Ask us about the exciting EB-5-qualifying investment opportunity we are currently launching in Manhattan.” americaregionalcenter.com henleyglobal.com monarchandco.com uscis.gov

HOMEFRONT

Mauritius SELLING POINT Mauritius’s fiscal benefits are an incentive to investors who make the country their tax residence.

MINIMUM INVESTMENT You need to invest a minimum of $500,000 into a Property Development Scheme (PDS), which replaces the Integrated Resort Scheme (IRS) and Real Estate Scheme (RES).

However, there remain a number of these latter developments actively offering properties for sale.

A residency permit entitles you to apply for an occupation certificate, which allows you to start a business or to become an employee of a company in Mauritius. After living in the country for five years, you can apply for a Mauritian passport.

SCHOOLS The north of the island has good private schools, including Northfields International School, the International Preparatory School and Lighthouse.

West Coast Private School

is also an excellent option.

Universities include the Mauritius campus of Middlesex University London, the University of Technology and the Open University of Mauritius.

FINANCING Access to finance is by application to banks. A loan of up to 50% of the property’s value can be offered to foreign residents.

INCOME TAX Key tax benefits include a 15% corporate and individual income-tax rate. This can be as low as 3% after allowing for tax credits through the Global Business Company – International Revenues structure.

SELLING You lose your citizenship if you sell unless you are buying in another IRS, RES or PDS designated development.

TIP Says Pam Golding Properties Mauritius director Richard Haller:

Portugal “We have for the past 10 years focused on the Grand Baie and Tamarin region, where infrastructure is continually growing. These are the areas where the majority of people moving to the island reside, so the ability to rent your unit is higher, capital growth is better and your ability to resell the unit is greater.” govmu.org itsaboutlife.co.za maurinet.com monarchandco.com pamgolding.co.za villasvalriche.com

SELLING POINT Portugal’s Golden Visa is one of the most affordable in the world — and it takes just eight weeks to obtain residency.

MINIMUM INVESTMENT

provide tuition in English and Portuguese.

FINANCING Banks will lend up to 50% of the investment sum to foreigners.

There are various ways to obtain a Golden Visa, which grants investors residency in Portugal for one year.

This can be renewed twice for two-year increments as long as you reside in the country for at least 35 days during a five-year period.

The €350,000 realestate investment is by far the most popular route. After five years of residency, you can apply for citizenship through nationalisation, although this is conditional on you being able to speak basic Portuguese.

INCOME TAX

SCHOOLS

TIP

International schools include the English and American schools in Estoril.

All educational facilities supply students with lunch daily. Tertiary facilities include the universities of Lisbon and Porto, which

Says Sable International MD Andrew Rissik: “Cascais, a prosperous former fishing village situated on the western edge of the beautiful Lisbon coastline, is to Portugal what Camps Bay is to Cape

There is normal country tax if you are a tax resident, on a sliding scale between 0% and 35%. Golden Visa holders who do not stay in Portugal for more than 183 consecutive days are not required to pay taxes for income generated outside the country. Income arising from rentals, interest or dividends is taxed at 28%.

SELLING You do not lose your citizenship if you sell if you have held your investment for the required five years.

Town. It boasts a strong tourist component and some of the best beaches in the world, and it’s half an hour from the city by train.

It’s an ideal location for a good property investment.” goldenvisa-portugal.com henleyglobal.com pamgolding.co.za sableinternational.com

HOMEFRONT

Cyprus

Caribbean

SELLING POINT

INCOME TAX

FINANCING

MINIMUM INVESTMENT

Cypriot residency is for life while citizenship can be passed on by descent.

You pay normal country tax if you are a tax resident, on a sliding scale between 0% and 35%. There’s no worldwide taxation if you are not a tax resident.

The programme does not offer financing. The investment amount and fees must be paid in full upfront.

Five Caribbean countries run citizenship-byinvestment programmes: Antigua and Barbuda, Dominica, Grenada, St Lucia, and St Kitts and Nevis. You can get a Caribbean passport through contributions to national development funds or the treasury, ranging from $100,000 to $250,000, or through property acquisition, starting from $200,000.

RESIDENCY MINIMUM INVESTMENT You need a single, secure property investment of €300,000, along with a letter from a Cypriot bank confirming that you have a three-year fixed deposit of €30,000.

Dependents up to the age of 25 also qualify for residency permits.

SCHOOLS State schooling and higher education are paid by taxes.

The European University Cyprus and Frederick and Nicosia universities are English medium, while Neapolis University is Greek and English.

FINANCING Financing for a residency visa is available — only two-thirds of the purchase price needs to be paid before the fast-track residency application process can start. All resales need to be in cash.

SELLING You do not lose your residency if you sell provided you hold the investment for three years and retain a minimum investment of €300,000.

CITIZENSHIP MINIMUM INVESTMENT You need a minimum investment of €2m for the acquisition or development of real-estate projects; the acquisition of land is not deemed a qualifying investment.

Dependents up to the age of 28 also qualify for citizenship.

SELLING You do not lose your citizenship if you sell provided you hold the investment for three years and you retain an investment of at least €500,000.

INCOME TAX Income tax works the same as with residency.

TIP Says James Bowling, CEO, Monarch & Co: “Ensure you purchase property (which can include commercial property) in the right location in Cyprus. The country is split in two, the north belonging to Turkey and the south to Cyprus.” cyprusvisa.eu henleyglobal.com monarchandco.com cypriotrealty.com

SCHOOLS There are a number of well-regarded private and public schools in all five countries and the International University for Graduate Studies is in St Kitts and Nevis.

FINANCING None of the programmes offers financing options. The investment amount must be paid in full upfront.

INCOME TAX Those who live in Dominica or Antigua and Barbuda for less than 182 days a year only pay tax on income

earned in those countries.

Provided you do not do business in St Kitts and Nevis, you are not liable to pay tax at all.

SELLING You do not lose your citizenship if you sell provided the investment is held for the required five years.

TIP Says Andrew Taylor, vice-chairman, Henley & Partners: “While citizenship by investment provides conditional freedom of movement within the Caribbean Community (Caricom), as a Caricom citizen you also need a skills certificate, which is generally easily obtainable, together with your passport to avail yourself of that freedom of movement.” caricom.org henleyglobal.com monarchandco.com

RESIDENCY AND CITIZENSHIP Residency is the legal right to live, work, travel and study in a country, subject to certain conditions.

Typically you would not give up citizenship in your own country.

Citizenship confers additional legal privileges in that country, for example, the right to vote. Some countries allow dual citizenship; others do not.

TWO ICONIC TOWERS RISING 53 STOREYS WITH STUNNING CITY & RIVER VIEWS I N T H E C E N T R E O F L O N D O N ’ S N E W F I N A N C I A L D I S T R I C T- C A N A RY W H A R F P R I VAT E B A L C O N Y G A R D E N S R A N G I N G F R O M 1 0 9 S Q F T – 4 0 1 S Q F T M E M B E R S H I P T O T H E E XC L U S I V E WA R D I A N C L U B’ S P R I VAT E F I R S T C L A S S FA C I L I T I E S

J O I N U S F O R A L O N D O N R E S I D E N T I A L M A R K E T U P DAT E A N D E XC L U S I V E A C C E S S T O O N E O F L O N D O N ’ S F I N E S T N E W R E S I D E N T I A L D E V E L O P M E N T S – WA R D I A N .

A P A N E L O F L O N D O N P R O P E R T Y E X P E R T S W I L L P R O V I D E A N U P - T O - D AT E M A R K E T O V E R V I E W, I N C L U D I N G S O M E O F T H E M O S T I M P O RTA N T FA C T O R S I N F L U E N C I N G L O N D O N ’ S H O U S I N G M A R K E T P R I C E S F R O M £ 7 5 6,0 0 0 AT T E N D A N C E I S S T R I C T LY BY R S V P I N F O @ S M U T S A N DT YA L O R .C O M +27 (0) 11 083 6366 9 M AY 2 0 1 7 THE OYSTER BOX UMHLANGA ROCKS, DURBAN

1 0 M AY 2 0 1 7 O N E & O N LY V & A WAT E R F R O N T, C A P E T O W N

1 2 M AY 2 0 1 7 SUMMER PLACE SANDTON JOHANNESBURG

Whilst every care has been taken in preparing these particulars, the agent and the respective landlords/vendors give no warranty, express or implied, as to the completeness or accuracy of the information contained herein. These particulars are subject to errors, omissions, change of price/rental or other conditions, withdrawal without notice, and any special listing conditions imposed by our principals. The agent will not be liable for negligence, or for any direct or indirect consequential losses or damages arising from the use of this information.

You should satisfy yourself about the completeness or accuracy of any information or materials. The information contained herein does not form part of an offer or contract “*Prices and details correct at the time of going to press. Readers are advised to make their own enquiries to verify such information.

BUH-REIN ESTATE

CAPE TOWN - NORTHERN SUBURBS

C H A N D E L L E A PA R T M E N T S

From

R829 900

2

1

1

54 m²

Chandelle is situated in the acclaimed Buh-Rein Estate and is bordered by a public open space on the west and a multi-purpose sport field on the northern side. These trendy apartments are affordable and offer exceptional value for money.

Amazing finishes are standard.

sales@msp.property

087 802 9005

ACORN CREEK LIFESTYLE ESTATE

HELDERBERG - SOMERSET WEST

PHASE 2 NOW SELLING

From

R2 249 000

3

2.5

1

175 m²

Acorn Creek is situated in the spectacular Helderberg region of the Western Cape. It is a place where you can be at your ease and do those things that you really please. The surroundings offer beautiful mountain trails, prestigious golf courses, innumerable wineries and stunning beaches.

Melissa

072 920 0593 CAPE TOWN - NORTHERN SUBURBS

ZEVENWACHT LIFESTYLE ESTATE OPEN DAY 5 MARCH 2017

I N D E P E N D E N T L I V I N G A PA R T M E N T S

From

R949 900

1

1

1

47 m²

Situated in the Cape Winelands, Zevenwacht Lifestyle Estate offers its residents the epitome of luxury retirement living.

Embodying South Africa’s abundant natural beauty, this region offers spectacular views, temperate weather and an endless array of activities to explore.

Sunette Schlemmert

082 656 2852

LIFESTYLE E STATE

RETIREMENT HOMES

From

R3 199 900

2

2

1

142 m²

Whether you choose a free-standing lifestyle home or an apartment, our market-leading, 24-hour nursing care will provide the peace of mind you need to live life to the full and enjoy the retirement you’ve earned.

Francois Schlemmert

082 441 6031

LIFESTYLE E STATE

Z E V E N WA C H T L I F E S T Y L E E S TAT E O F F E R S Y O U : Care Center Access to home care available at request as and when required by prior arrangement with the Care Services Provider situated at the Care Centre. Included in the levies for all residents living within the Independent Living Apartments. Also available to residents of the Lifestyle Homes, at an additional cost.

• 24-Hour Care Centre • Dining Room, Social Interaction, Domestic, Laundry and Concierge Services Clubhouse • Home Nursing Care

Other Services include: • Clubhouse, Library • Security • Call4Care • Patronage Card at Zevenwacht Wine Estate

LIFESTYLE E STATE

087 802 9003 msp.property sales@msp.property

The images, perspectives and finishes shown in the advertisment are merely impressions of the proposed development and are therefore subject to change at the developer’s discretion. The developer will not be held liable for any changes.

FOCUS ON: ACORN CREEK LIFESTYLE ESTATE ADVERTORIAL

Tranquil country village living MSP pays close attention to environmentally friendly building principles when developing homes that are sustainable for the future and Acorn Creek Lifestyle Estate is leading the way WORDS AND PHOTOS: SUPPLIED

O

ne of the largest and most active development nodes in the Western Cape currently is that in the tranquil surrounds of the Helderberg basin, about 5km from Somerset West. “Acorn Creek offers a pocket of exclusivity, security and energy-efficient living,” says Riaan Roos, CEO at MSP Group of Companies, the multiple award-winning developer of Acorn Creek.

“Acorn Creek is a true village — which you don’t get at the other estates nearby — and is unique in terms of the village design layout and architecture by the award-winning Dennis Moss Partnership team. The spatial arrangements have been carefully considered, with use of cobblestones and archways through buildings that provide clear lines of sight to customdesigned focal points, parks and water features.”

With activity well under way on the civils, building of the first homes in phase one is set to commence in April, with completion of the first homes around October 2017. Phases one to six will

comprise 320 homes, and phases seven and eight will offer 195 village apartments.

The homes are designed in a Cape vernacular style.

FINISHINGS Grohe taps, granite kitchen tops, a gas hob with electric oven, cooker hood and builtin braais are standard. Some home designs include a fireplace with a gas or wood option. A wide selection of carpets and tiles will turn your house into a home.

Acorn Creek also offers fibre optic internet.

The development features a 1.4km walking or jogging trail along the river.

Landscaped ponds with berms and walkways add to the park-like surroundings, as do the children’s play equipment and outdoor gym. The communal areas are served by an integrated water management system and retention dams, which use storm and roof water, borehole water and municipal water.

SUSTAINABILITY “Our developments already include solar geysers and indigenous landscaping as standard features to contain the impact on the

“Acorn Creek offers a pocket of exclusivity, security and energy-efficient living” Riaan Roos, CEO, MSP Group of Companies environment,” says David Britz, MSP operational director. “However, with the launch of the new Acorn Creek Lifestyle Estate in Somerset West, we’re taking our environmental consciousness a step further.”

Each of the homes has its own solar-powered electrical backup system and a grey water collection

and distribution system.

“When the energy crisis hit South Africans hard a few years ago and load shedding became a part of daily life in SA, people became more aware of solar energy and how it can be harnessed to keep a household running despite power interruptions.

WATER The Power-up battery packs installed at the Acorn Creek houses are charged through solar panels. These batteries can supply between 60% and 70% of a household’s energy needs,” says Britz.

“The severe drought has also resulted in consumers waking up to the fact that we need to reduce our water consumption and conserve this valuable resource.

Grey water systems such as the ones which will be a standard feature at Acorn Creek’s homes provide an easy answer to reducing water consumption and reusing water that has already been circulated through the household.”

Acorn Creek Lifestyle Estate’s environmental efforts extend to the

landscaping, which includes a natural stream that meanders through the entire estate. Indigenous and fynbos plants and more than 850 trees, including fruit trees, will adorn the communal areas.

Combined with this modern country village lifestyle is top-end access control including thermal imaging cameras, biometric identification, professional guards and state of the art perimeter securing by Fang, an industry leader, ensuring peace of mind.

ACCESS Acorn Creek is about 30 minutes from Cape Town, 20 minutes from Cape Town International Airport and 5km from Somerset West. Worldrenowned wine estates and Stellenbosch University are a 10-minute journey away, as are beaches, golf courses, weekend markets and mountain bike trails.

Acorn Creek is next to the new Curro School. A new flagship Checkers will answer retail needs.

Property prices start

from R2,249,900 for a three-bedroom home with two bathrooms and a single garage and buyers only need to pay their bond costs. This development is supported by all four major financial institutions and up to 100% bonds are available for approved buyers.

A fully refundable R25,000 deposit secures your dream home, which will be used towards the purchase price. Acorn Creek is ideal for young professionals, couples, small families and those looking to scale down into retirement.

SITE OFFICE HOURS Mondays-Fridays: 9am-5pm Saturdays: 10am-1pm Sundays: 1pm-5pm

GET IN TOUCH MSP msp.property Tel: 087 802 9005 e-mail: sales@msp. property

HOMEFRONT PROPERTY NEWS

Buyers still heading south

T

he residential property market across Cape Town’s southern suburbs generated more than R8.4bn in sales in 2016.

That, says James Lewis, Seeff’s MD for the area, equates to about 40% of the total value of property transactions recorded for the Cape metro last year.

The area remains very active, both in terms of sales and rentals, with some neighbourhoods busier than in the preceding few years, Lewis says.

The area encompasses about 31 smaller suburbs,

with Constantia the largest and having the highest number of households, followed by Claremont, Rondebosch and Kenilworth.

Some 2,948 transactions worth more than R8.4bn were recorded for 2016 at an average selling price of R2.86m, the highest on record.

Well-priced properties below the R8m-R10m price range are still selling within four to six weeks, the lower end of the price scale obviously selling much faster while the upper end takes a bit longer.

According to Seeff, Propstats data show that there were a number of R20m-plus sales across the area, with a highest price of R42m in Bishopscourt (Upper Torquay Road, sold

by Seeff).

There was also a few top-end transactions in Claremont Upper as well as in Constantia, including R30m in Spilhaus Avenue and R33.226m in Bellevue Road.

Lewis says these figures illustrate a resilient market.

Bishopscourt, for example, generated sales of almost R400m in 2016.

The beach comes to Pretoria

Seniors invest in top Cape properties

A

n increasing number of South Africans over the age of 65 are snapping up luxury and super-luxury properties in the Western Cape. In 2016, more than 70% of property sales in some suburbs were made to people in that age bracket, according to property data analysts Lightstone.

The data confirms a trend that Lightstone has

M

ultinational water innovation company Crystal Lagoons has partnered with Balwin Properties for the construction and operation of SA’s first Crystal Lagoon, which will bring beach life to Gauteng.

Balwin Properties’ new R4.2bn residential development, The Blyde at Riverwalk Estate, in Pretoria East, will showcase Crystal Lagoons’ technology, which is patented in 190 countries and brings beach paradises to new locations.

Says Balwin Properties CEO Steve Brookes: “By bringing the beach to Pretoria we are taking apartment living to the

next level by making resort lifestyle living a reality.”

Alastair Sinclair, Crystal Lagoons regional director for Africa, says: “At 1.5 hectares [which is equivalent to just more than two rugby fields], the Crystal Lagoon will be a key selling-point to the development, and be the first lagoon to feature our game-changing technology and unique concept in sub-Saharan Africa.”

The Crystal Lagoon at The Blyde at Riverwalk Estate will feature beaches and a pedestrian promenade, as well as exclusive clubhouses for residents’ use.

“A Crystal Lagoon is a family-oriented amenity that allows for swimming and practice

of water-sports in a safe, controlled environment, and in a sustainable manner,” says Sinclair.

Says Brookes: “We are very excited about our partnership with Crystal Lagoons and foresee this as the first of at least six lagoons in SA combined with the Balwin brand.”

Balwin developments appeal to a wide variety of buyers, from first-time home owners to retired people, as well as young families and investors.

A Crystal Lagoon can be filled with fresh, brackish or salt water and uses 2% of the energy of standard pool filtration technologies, as well as 100 times less additives.

been tracking for the past 12 years, indicating that there is an increase in senior citizens investing in property in the Western Cape. In 2005, when the company started tracking the numbers, 22% of residential properties sold in the province were bought by people over the age of 65. This has increased to 35% in 2016.

From a property

valuation perspective, sales in the superluxury segment were proportionally fairly evenly distributed across the age bands for people aged 35 and older.

The proportion of superluxury homes purchased by buyers aged 35-45 was almost the same as the proportion in the higher age bands, namely 45-55, 55-65 and 65+.

Suburb

Town

Municipality

Buyers over 65

Median Property Value

Eastford Downs

Knysna

73%

R1,150,000

70%

R3,450,000

64%

R1,475,000 R1,300,000 R3,675,000

Klipfontein

Malmesbury

Knysna City of Cape Town Swartland

Bergsig

Montagu

Langeberg

52%

The Heads

Knysna

Knysna

50%

Helderberg Village Somerset West

Percentage of buyers older than 65 40% 35% 30% 25% 20% 15% 10% 5% 0%

2005

2006

2007

2008

2009

2010

Western Cape

2011

2012

2013

2014

2015

2016

Gauteng

Nedbank funds sustainable affordable housing

N

edbank Corporate and Investment Banking (NCIB) has made the first disbursement from an innovative R120m Sustainable Affordable Housing finance facility, a collaborative effort between the bank and SA’s Green Fund.

The first recipient of funding is Belhar Gardens, a Cape Town social housing project owned and managed

by Madulammoho Housing Association (MHA). The 630-unit development is the result of a publicprivate partnership and was made possible through the

provision of land, grants and subsidies by the Western Cape provincial government and the Social Housing Regulatory Authority.

Belhar Gardens is aimed at households earning between R2,500 and R7,500 a month.

Rent starts from R750 a month. Belhar Gardens units

are also resource-efficient.

Head of Affordable Housing Development Finance at NCIB, Manie Annandale, says this is intentionally aimed at containing the total cost of accommodation for low-income households.

MHA CEO Renier Erasmus says the inclusion of green

energy devices such as centralised heat pumps and innovative ceiling insulation technology makes perfect sense for Belhar Gardens and, indeed, all future social housing developments.

Belhar Gardens is one of the first social housing projects in SA to have

applied for EDGE Green Building certification.

Annandale says meeting the rigorous EDGE standard requires that the development achieves at least 20% savings within the EDGE software in energy, water and embodied energy in building materials.

BRYANSTON

Luxury Apartments

2,3 & 4 bedroom units from R3.3 MILLION

Close-by amenities 1. Virgin Active - 280m 2. Nicolway Shopping Centre - 900m 3. Hobart Shopping Centre - 900m Brescia House - 2km Bryanston Shopping Centre - 2.8km St Stithians College - 3.8km Sandton Mediclinic - 3.2km Riverclub Golf Club - 5.2km St Peters School - 9km

Bruton Rd

Bryanston Cross F?d

� / Sandton

Contact Brendan

M 073 343 2449 T 0861 777 725

brendan@curriegroup.co.za

Prime location / / / / / / /

North-facing bedrooms Centralized water heating system Basement parking Lift access 24hr security Swimming pool Direct gym access

m IYID PROGRmBINPROPSrrV

-tltlPap@eorgiou ARCHITECTS & ASSOCIATES INC.

thewinstonjhb.co.za

Currie Property Expertise since 1887

LIVE IN A RESORT T H AT ’ S C O N V E N I E N T A N D C E N T R A L LY L O C AT E D

Our last penthouses and three and four-bedroom en-suite luxury apartments are ready for occupation.

Our hotel construction has reached second level. Don’t lose the

opportunity before it’s sold out

OSBORN RD

M1

Come and view our luxury apartment 12029.

Available daily for viewings

HOUGHTON GOLF CLUB

2ND AVE

ALAN BECKER 082 718 8100 | alan@thehoughton.com WARREN BECKER 082 302 3004 | warren@thehoughton.com Houghton on 12th, 53 Second Ave, Houghton | Show apartment 12029