SAIBPP

THE OFFICIAL JOURNAL OF THE SOUTH AFRICAN INSTITUTE OF BLACK PROPERTY PRACTITIONERS

SAIBPP VOLUME 2

Advancing property practitioners beyond borders

SAIBPP gets new leadership

Top property experts on investing in Africa

Exciting projects on the continent

ESSAY

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SAIBPP | VOL.2 EDITORIAL

CONTENTS 02.

CEO’s CORNER | An exciting journey ahead

04.

PROFILE | Thomas Matlala’s enduring legacy

06.

FEATURE | Lynette Ntuli is ready to serve

08.

FEATURE | Nkuli Bogopa’s strong passion for Africa

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PERSPECTIVES | Africa – A sensible investment

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ESSAY | New buildings spring up in former war zone

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ESSAY | A dynamic continent reawakens

28.

SAIBPP CONVENTION | Time for collaboration

32.

SAIBPP CONVENTION | KZN’s allure

36.

SAIBPP CONVENTION | A round-up of all activities

42.

BUSINESS SHOWCASE | Neo Mokhobo’s drive to excel

46.

BUILT ENVIRONMENT NEWS | NHBRC champions IBTs

50.

FEATURE | Top African development projects

66.

TRAVEL | Luxury in the wild

Propelling Africa’s development

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property companies, and some of its members occupy the highest echelons in various property organisations and government departments.

SAIBPP has managed to raise its profile within the property sector and, indeed, its name is synonymous with progress, change and inclusion.

Through SAIBPP’s tireless lobbying, the face of the real estate sector has changed; diversity, in terms of race and gender, is now an accepted norm within

The organisation managed to meet its objectives through forging solid links with key stakeholders such as government and corporates. The number of SAIBPP members – both individuals and corporates – has increased and the organisation continues with great determination in its efforts of unearthing young talent; through a Legacy Programme, SAIBPP members reach out to learners at high schools or students at tertiary institutions with career information.

ince 1996, the South African Institute of Black Property Practitioners (SAIBPP) has been vigorously championing transformation of the South African property sector.

It’s a role the organisation has played with great determination and, 19 years and seven presidents later, SAIBPP can be proud of meeting most of its objects.

As you will read in this edition, SAIBPP is entering a new phase. The organisation wishes to go beyond South Africa’s borders and have its presence felt throughout the continent.

Simply put, this means encouraging its members to venture out to the rest of the continent for economic opportunities that will, in the long run, help the rest of the continent develop.

This was the chief message of the 2015 SAIBPP Convention in Durban.

We hope you find this edition enlightening and you will join SAIBPP on the exciting journey of making real estate a tool of development for all Africans. Happy reading.

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CEO’s CORNER

An exciting journey ahead New CEO is ready to take SAIBPP to even greater heights

By Vuyiswa Mutshekwane

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joined SAIBPP as CEO in September 2015. My immediate goal in this position is to see the vision of our founders, previous presidents and current board realised. I hope to do this by increasing membership growth, driving substantive transformation in the sector (through active engagement with government and private sector) as well as facilitating learning and economic development opportunities for our existing and future members.

I believe SAIBPP has an enormous unrealised potential at this stage given the profile of our members and former board members, and also given the organisation’s historical achievements in the drive for transformation of the property sector. My main objective will be to unlock that potential and steer SAIBPP in the direction it was always headed in. The next couple of years will be pivotal for driving membership growth, re-establishing our core objectives and increasing our continental footprint.

To achieve my objectives, I hope to tap into the skills acquired before I joined SAIBPP. I am a serial entrepreneur with a background in fashion retail and marketing. I also have extensive experience in events management.

Generally, I find it difficult to turn away from an exciting project, particularly when it presents an opportunity to develop myself and grow an

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organisation. I’m a real builder with a bigger picture mentality and a ravenous appetite for a good challenge.

Currently, that challenge is to help SAIBPP’s mission of levelling the playing field in the property sector. The call for transformation is not, as many suggest, an act of petty retribution or about implementing a set of national policies that further entrench social inequality by benefitting only a select few. It is an admirable and necessary goal that we should all aspire to if we hope to achieve the desired rates of sustainable economic growth in this country. The property sector is so well placed to be at the forefront of that change and drive the subsequent economic growth in that the barriers to entry in this industry are relatively much lower than that of other essential industries, for example it is much easier to become a land or property owner than own mines or energy plants and so on. I am drawn to the sheer magnitude of the task that SAIBPP has at hand in being instrumental in transforming this industry and positively contributing to the economic future of our country, as well as make a positive impact in the development of our continent through linking up with like-minded organisations on the continent.

The key values I subscribe to as a professional and leader include empowerment, entrepreneurship and

collaboration. I believe that everyone on the team is a leader and has value to add (otherwise they wouldn’t be on my team) and it is my duty to assist in unlocking that potential and steer the organisation in a unified direction. As a woman, I also have a bit of an unfair advantage because I am naturally more collaborative, which creates a greater sense of ownership and cooperation in a team and can get us there faster.

The first few months in my new job have been nothing short of riveting. It has been a pleasure getting acquainted with the board members and meeting some of the key players in the industry.

But, without a doubt, the highlight of my new position is the 2015 SAIBPP Convention that took place between November 4 and 6 in Durban. We managed to put together a solid programme that featured property experts with deep knowledge of the property boom happening in the rest of Sub-Saharan Africa. Another milestone of the convention was organising a career day, which saw learners from two schools in Durban, interacting with SAIBPP members about the vast number of careers in the property industry.

I’m looking forward to delivering on many other SAIBPP initiatives and working well with the president, deputy president, the board and all other stakeholders.

SAIBPP | VOL.2

Picture: Elijah Semose

CEO’s CORNER

Vuyiswa Mutshekwane, SAIBPP CEO

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PROFILE

An enduring legacy Matlala looks back with pride at achievements of past years

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homas Matlala has every reason to be proud about the healthy state of the South African Institute of Black Property Practitioners (SAIBPP) as he steps down as president after serving for two terms since 2012. The lobby organisation that was formed in 1996, as South Africa was still savouring its hard-fought freedom, has achieved so much in championing transformation of the property industry ensuring that more black people and women become serious players in various facets of the sector.

Matlala, who has vacated the presidency seat for Nkuli Bogopa, is content about his achievements at the help of SAIBPP. He achieved most of the goals he had set out for himself and his board. “Firstly, my team and I wanted to make sure that SAIBPP was financially independent.

Secondly, we had to increase the number

By Phakama Mbonambi

“Two, the number of our members has increased. When I came in, individual members were about 300. We now have more than 1 000 individual members.

We used to have five or six corporate members and we’ve doubled that number. We also have a number of potential members we are targeting, and there are constant queries about membership through our office.”

One of the ways of growing membership was opening chapters in Western Cape, KwaZulu-Natal and Eastern Cape. “We’ve also grown exponentially in Gauteng,” Matlala says.

On the third point of grooming new talent for the property industry, SAIBPP started a bursary programme in 2013 with the assistance of Pareto Limited.

Currently, SAIBPP sponsors property studies of two Wits University students – Nthabiseng Makgabo and Thuto Mokoena – who began their studies

“Why should we limit ourselves to an economy that is growing at only 1,4% when the rest of the continent is growing at an average 6%?” of black property players in the country.

Thirdly, we wanted to capture young talent coming through universities and at matric level,” Matlala says.

According to him, SAIBPP has excelled at these areas. “One, we are financially independent. SAIBPP has a trust and we have about R2-million in the bank.

We also have a number of sponsors,” Matlala says.

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in 2013. “A number of our corporate sponsors wish to join the bursary scheme, which is a good thing as more resources will allow us to accommodate more qualifying students studying property studies,” Matlala says.

“So, when I came in [as president] we decided we’d try to do all the things we had set out to achieve. There are some

areas where we have done very well and others not so well. But, on the whole, looking back, we’ve achieved a lot.”

In 2014, SAIBPP turned up the heat when it called for government to stop crafting wonderful empowerment policies and start implementing in order to accelerate the transformation of the property sector. This was borne out of the realisation that, as the largest owner of property stock in the country, government has an unmatched power to radically change the face of the South Africa’s real estate sector. Government intervention, Matlala said at the time, could also force established corporates to take transformation seriously.

All this lobbying was typical of the organisation’s primary mandate, levelling the playing field in the local property industry and using property as a vehicle for economic inclusion. But, as Matlala points out, small as it has always been and while grappling a lack of resources to operate, SAIBPP has always yearned to play a constructive role on the African continent. “Even at that time there was a realisation that SAIBPP, because of achieving so much with so little, needed to consider going beyond borders. We realised that our organisation was well poised to start a real estate revolution on the continent,” Matlala says.

With its Pan-African thinking, SAIBPP recognises that in its membership ranks are highly respected property experts whose immense experience in the built industry can benefit a continent experiencing an unprecedented economic boom and embarking on large infrastructure projects, from roads to shopping malls, to office parks to residential developments.

Apart from lucrative deals for property practitioners, the organisation’s PanAfricanism emphatically affirms that South Africa is very much part of Africa and is, therefore, duty-bound to play a meaningful role in helping the continent develop through real estate and, in line with the vision of the African Union, build a world-class infrastructure that promotes intra-

SAIBPP | VOL.2 PROFILE

African trade and economic prosperity for all Africans.

At the 2015 SAIBPP Convention, which was held in Durban at the beginning of November, various property experts proved SAIBPP’s thinking about the continent when, in their presentations, they highlighted the many prime business opportunities for South African property players and how to navigate the terrain. All in all, the convention loudly proclaimed that Africa was ready for business and that potential investors needed to drop Western blinkers and go out to the rest of Sub-Saharan Africa to see for themselves the extraordinary real estate boom taking place and the part they can play in this explosion.

“It was a wonderful and informative conference. We managed to shed light on the many opportunities that our continent offers. It’s now up to our members to follow through with action if they want to venture beyond our borders. Africa is calling,” Matlala says. “Why should we limit ourselves to an economy growing at only 1,4% when the rest of Africa is growing at an average 6%, and where we can add lots of value as property practitioners?”

Matlala strongly advises local property practitioners to go beyond borders in search of opportunities. “First, you need to understand your market.

Secondly, have guts. Lastly, believe in your market. If you do this, you are guaranteed to make it,” he says.

Picture: Johannes Dreyer

Matlala is happy to be handing over the reins of a stronger SAIBPP to Bogopa. As for what the new president should focus on, Matlala is coy, save to say that he has absolute faith in Bogopa’s capabilities and vision. “I cannot tell her what to focus on,” Matlala says. “She has her own ideas on how she wishes to see SAIBPP going forward. But I think in her early years she needs to cement what we have already started – consolidate on the bursary front and skills development, continue contact with government and on taking SAIBPP beyond borders,” Matlala says.

Thomas Matlala has just stepped down as SAIBPP President

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Picture: James Gibb

FEATURE

Lynette Ntuli, SAIBPP Deputy President 6

SAIBPP | VOL.2 FEATURE

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t the Annual General Meeting following the 2015 SAIBPP Convention at the Elangeni Hotel in Durban, Lynette Ntuli was appointed Deputy President of the organisation. She will serve alongside SAIBPP President Nkuli Bogopa.

Ntuli’s appointment, which, as mandated by the SAIBPP constitution, will see her take over the presidency reins when Bogopa steps down, is a fitting recognition for someone who has tirelessly worked to bring change to the real estate industry by linking up with like-minded professionals.

Ntuli has been a member of SAIBPP for five years. During that time she served in various positions, including being Chairman of the KwaZulu-Natal chapter of the organisation, a position she held for two years.

Juggling many roles seems to be part of Ntuli’s life. She is also actively involved at an executive and member levels within various other organisations, including Women’s Property Network, South African Property Owners Association, the South African Council of Shopping Centres, International Women’s Forum and Institute of Directors SA. Through IgniteSA, she has championed youth leadership and the harnessing of Africa’s potential. Indeed, Ntuli’s name is synonymous with achievement, action and dynamism. Despite her many other accomplishments, Ntuli is heartened by the appointment as SAIBPP Deputy President. The new position opens up new horizons and she is ready to serve the organisation.

In that role, she helped grow membership in the province and generally made sure that SAIBPP’s presence was felt in all the corners of the province. This involved being engaged in awareness campaigns about the real estate sector to schoolchildren and students in the hopes of grooming future property sector practitioners.

“It is an opportunity to continue to serve the property industry and grow in terms of leadership and exposure to the dynamics faced by black professionals in various spaces in the industry,” Ntuli says. Level-headed and organised, she already has clear goals of how she’ll perform her duties. “My first responsibility in this role requires me to support the President and help the organisation grow,” she says.

She has led SAIBPP provincially and is also Chief Executive Officer of her own company, Innate Investment Solutions, an entity that provides property, asset management and infrastructure solutions to the built environment and custodians of land and property portfolios.

“The second is to contribute to the development of value-added opportunities and services for our members. In the new regions, the priority will be to amplify our presence, organise our members and ensure that they begin to feel the value of

membership. The discussion of issues relevant to a particular region is also quite important.”

With the appointment of Bogopa and Ntuli and as well that of SAIBPP CEO Vuyiswa Mutshekwane, another female, SAIBPP has emphatically endorsed women leadership.

It means that for the next four years the president will be a woman. Is this a coincidence or is it a tonic the organisation needs right now? “The matter of all women leadership in 2016 is purely coincidental but also speaks about the progressive thought leadership of SAIBPP’s members and the faith our fellow colleagues have invested in us as leaders first,” Ntuli says.

“SAIBPP has always had women leaders in the organisation. So, this is not new in the 20 years of the organisation’s existence. What I do hope is that as women elected to lead in 2016, we can make a difference and contribute positively to the organisation’s legacy.”

For now, she’s happy to recognised by her colleagues within the organisation and is prepared to continue helping SAIBPP realise its goals, which is meaningful inclusion of black people, women and youth, in the property sector not just in South Africa but elsewhere on the continent as well.

She is grateful for having interacted with so many accomplished professionals over the years.

Lynette is ready to serve Dynamic young leader is second in charge of the organisation

By Phakama Mbonambi

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Picture: Johannes Dreyer

FEATURE

Nkuli Bogopa, SAIBPP President 8

SAIBPP | VOL.2 FEATURE

A strong passion for Africa New SAIBPP president wishes to see real estate helping to promote continental development

By Phakama Mbonambi

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ive years ago Nkuli Bogopa was a doe-eyed property practitioner who happened to be at the right place at the right time.

Having been a general member of the South African Institute of Black Property Practitioners (SAIBPP), she attended an annual general meeting where she was unexpectedly appointed to the SAIBPP board.

What’s more, it was the first time she had attended a SAIBPP AGM. At the time she worked for Absa/Barclays as a facility manager. Before that she had practised as an architect – even today she is still registered as a professional architect with the South African Council for the Architectural Profession. “The feeling at the time was that SAIBPP needed more young people active in the organisation. So, I just found myself in that position,” she says.

As a SAIBPP board member Bogopa served in various committees, helping the organisation fulfill its transformation mandate within the real estate sector.

She is known for her passion of reaching out to students to preach the gospel of careers within the sector.

Eventually, Bogopa was appointed deputy president of the organisation under Thomas Matlala’s presidency.

She served for two years. The pair,

together with their committed board members and other colleagues, worked hard to stabilise the organisation’s finances – a perennial worry – as well as grow membership of the organisation, both private property practitioners and corporates.

Meanwhile, in her full-time career, Bogopa joined Rio Tinto in 2011 as Group Property Manager. On 5 November 2015, during SAIBPP’s annual AGM, Bogopa’s rise within SAIBPP took a huge step forward when she was appointed president of the organisation. It was the culmination of a long journey of serving.

but what encouraged me was knowing that I’m surrounded by people who are very supportive and I’ve worked with them for some time now.”

This was the fourth time in the organisation’s 19-year history that a female president was appointed. The other past female presidents were Oarona Khama, Nyameka Madikizela and Kgaogelo Mamabolo. All of them blazed the trail in their own way as demanded by the demands of the time.

Bogopa is aware of the rich heritage of the organisation and is ready to leave her mark as president.

The AGM took place at the tail end of an inspirational two-day convention that highlighted the many opportunities awaiting South African property players willing to venture beyond our country’s borders. Various experts spoke convincingly on the theme in presentations replete with statistics to back arguments.

“As I mentioned in my speech on the night of the gala dinner (after the AGM), above all things, I feel truly honoured to be in this position. I hope to serve our constituency well. I hope to do my best with this job and make some changes within the organisation that are much needed, taking from the good work already done by my predecessor,” Bogopa says.

According to the SAIBPP constitution the deputy president automatically ascends to the presidency when the incumbent’s term ends after two years.

While she may have known what fate had in store for her, Bogopa was “so nervous” when the fateful moment arrived. “I wasn’t sure if I was ready,” she says. “I knew I had big shoes to fill

While certainly having big shoes to fill, and while there is a need for continuity of some programmes, Bogopa is clear about championing her own vision. She has identified six critical areas to focus on during her tenure. The first one is sustainable development. “The future of our continent lies in real estate,” she says. “The built environment 9

FEATURE

and infrastructure and agricultural development – that is the future. So building and capacitating our youth to be absorbed into our universities to get relevant education that will cover technical, tactical, leadership, and entrepreneurial skills will certainly solve the challenge of the youth unemployment we are faced with as a continent.”

She says skills development will also help sharpen the skills of older professionals who are already in the sector. Her second area of focus will be solving the problem of student accommodation by encouraging more property practitioners to enter this segment of the market.

“When these students come to tertiary adequate accommodation is needed for them. For me this market is a lowhanging fruit. It’s a captive market already and investors can’t go wrong,” she says. Her third area of focus as president will be making sure that SAIBPP is a powerful force of change beyond South Africa’s borders.

material that can help other countries to unlock the value [of property] in their different markets,” she says.

Bogopa believes African property practitioners are well placed to help the African Union meet its 2063 vision of eradicating poverty and creating a prosperous and peaceful continent. This vision envisages a continent boasting world-class integrated infrastructure that will promote intra-African trade, sustainable development and economic growth.

“We are a sector that should be at the forefront of unlocking the development of the continent. The advancement of other countries through infrastructure development is key to the development of the continent as a whole,” she says.

“On a personal level, unlocking the value of property will also help African entrepreneurs acquire collateral to do business. That is the mystery of capital.

That is how wealth is created.”

The fifth area of focus during Bogopa’s presidency will be ensuring

“I want to help create change on the continent. I’d like to serve all Africans – not just South Africans.”

“My biggest passion is having a PanAfrican agenda that covers the Diaspora and making sure that we have more Africans investing in real estate on the continent and not just foreign investors.

The best way we can achieve this is by setting up chapters in different regions of Africa, identify like-minded organisations and start having serious and close interactions with them going forward,” she says.

A fourth area of focus is turning SAIBPP to be a repository of key information about property markets across Africa that would benefit investors. “We need to do research on property markets across Africa and be the hub as SAIBPP for such studies because we are a more mature real estate market throughout the continent. So, we are best placed to put together such documents and research 10

that agriculture is included in any advancement of real estate on the continent. She sees this “vast” sector as being critical “to absorb more people and create jobs”. She feels that if the true value of this sector could be unlocked, Africa, with its vast tracks of arable land, could actually feed the world.

For her, this can happen once Africans start owning their own land and avoid being tenants in their own countries.

Lastly, Bogopa wishes to focus on gender transformation in the sector and actively encouraging that. “We have now made some strides in terms of racial transformation. Even so we are seeing less and less of female participation by encouraging younger girls to enter the built environment.” While her agenda is ambitious, Bogopa is aware that not all of her goals will be achievable within

the tenure of her presidency. But she’s willing to have a go of it. Besides, she has a capable deputy in Lynette Ntuli who may further the agenda when she takes over as president when Bogopa steps down. “I’m optimistic of achieving the goals I’ve set out as president,” she says.

“I’ve consciously steered clear of goals that will depend solely on government participation. We have enough stateowned entities that are aligned with us we could raise funds from for skills development. We just need to actively follow up.”

For now, Bogopa brims with confidence and is ready for the road ahead.

To give greater meaning to her elevation within SAIBPP, Bogopa wishes to make the impact of her presidency felt all over the continent. “This appointment is certainly the pinnacle of my career despite what I have achieved at Rio Tinto, a respected multinational.

But it will only be realised as a pinnacle if I can touch other regions of Africa.

I want to help create change on the continent. I’d like to see this appointment as serving all Africans, not just South Africans.” Also, she is still giddy with excitement about the phenomenal success of the recent annual convention in Durban.

“The convention went as planned.

We were quite happy with the quality of the speakers we had, with the information they brought to us,” she says. “Delegates walked away impressed with useful information they got at the convention.” She credits the clear vision of the committee that put together the programme for the success of the convention.

“We did as much research as possible in terms of what’s happening on the continent and where opportunities lie for our members,” she says. “And we brought experts such as Prof Samuel Azasu and Dr Kola Akinsomi from Wits University, Patrick Katabua, a banker who is also President of the Africa Real Estate Society, as well Dr Kusiluku a

SAIBPP | VOL.2 FEATURE

Past SAIBPP Presidents land commissioner from Tanzania. All of them gave us useful information about what is going on in different real estate markets on the continent. We also had wonderful speakers from South Africa. It was a truly enriching experience.”

The spin-off of involving property thinkers from elsewhere on the African is that SAIBPP can work with the organisations they represent and gain further insights about the continental real estate field. “For example, we are now in talks to make sure that when Patrick Katabua’s African Real Estate Society has events, they invite our members and we can start doing a cross-pollination of professionals from both organisations.”

SAIBPP has also identified a few other organisations such as CORENET and the African Property Investment as possible partners. A recent SAIBPP survey conducted before the Durban convention showed that members crave such networking opportunities, Bogopa says.

“What came out clearly from the survey was that members are looking for networking opportunities in order to learn about business opportunities. They also wish to have learning opportunities.

These are the areas I’d like to focus on. It’s a way for SAIBPP to remain engaged,” Bogopa says.

She also foresees a SAIBPP that fosters “deeper engagement with our government stakeholders, state-owned entities as well as establishing new relations outside of South Africa”. Leadership resonates deeply with Bogopa. She is a Tutu Fellow, a programme that recognises dynamic young African leaders.

Under her leadership, SAIBPP hopes to do more outreach programmes with schools.For Bogopa the time for action is now. “Dr Sululo once said: ‘It’s no longer time for the world to talk about Africa.

It’s now time for the world to talk with Africa.’

Saul Gumede 1996-1997

Andy Tondi 1997-1998

Oarona Khama 1999-2001

Caswell Rampheri 2004-2007

Nyameka Madikizela 2007-2008

Kgaogelo Mamabolo 2008-2012

Tshepo Matlala 2012-2015

I’d like to add to that and say it’s actually time for Africans to do their own talking.

Above all, we need to walk our own talk,” she says.

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Unlocking Africa’s potential

Since our establishment in 1996, we have been at the forefront of championing transformation of the property industry. We have been lobbying to get more black people into the property industry - whether as employees or as owners of their property companies. We are here to open closed doors for our members, not just in South Africa but also elsewhere on the continent.

Become a member of SAIBPP and help us use property to unlock Africa’s potential.

The institute seeks to attract members involved in the property industry across South Africa. These include: Property investors | Asset managers | Property managers | Leasing agents and brokers | Property developers | Property valuers Facilities managers | Property consultants | Researchers | Banks | Building societies | Insurance/assurance companies | Government/ State owned enterprises | Pension funds | Architects | Attorneys | Accountants | Contractors | Academics | Quality surveyors | Civil engineers | Land surveyors | Arbitrators | Town planners | Landscape architects For more information: Call: 011 838 6722 Fax: 011 838 6721 E-mail: Services@saibpp.co.za Physical address: Vusa House, 5th Floor, Suite 2, Gandhi Square, Johannesburg Visit: www.saibpp.co.za

SAIBPP | VOL.2 ADVERTORIAL

Tongaat Hulett unlocks property development opportunities in KZN A core element of Tongaat Hulett’s strategic vision is to maximise the value generated by optimum utilisation of land in the portfolio through its conversion to the most productive land use thereby optimising total real estate investment on the land

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ongaat Hulett is an agriculture and agri-processing business, focusing on the complementary feedstocks of sugarcane and maize.

Its ongoing activities in agriculture have resulted in the company having a substantial land portfolio within the primary growth corridors of KwaZuluNatal with strong policy support for conversion at the appropriate time.

A core element of Tongaat Hulett’s strategic vision is to maximise the value generated by optimum utilisation of land in the portfolio through its conversion to the most productive land use thereby optimising total real estate investment on the land.

In recent years the area just north of Durban has experienced unprecedented boom in property development. The area encompasses the iconic Umhlanga.

It’s known as Durban’s Northern Urban Development Corridor.

Over the years the corridor has seen what was once sugar farming land into swanky office parks or

fabulous residences. The picturesque surroundings, alongside the pleasantly warm Indian Ocean, add to the area’s appeal. And so do many amenities.

King Shaka International Airport is a stone’s throw away. And there is the famous Gateway Mall, offering visitors an unforgettable shopping and dining experience.

What’s more, the corridor is to be accorded still greater impetus with the imminent implementation of the Metropolitan Integrated Rapid Public Transport Network (IRPTN), which will link Umhlanga Ridge Town Centre with the Durban CBD in the south, King Shaka International Airport to the north and Bridge City and KwaMashu in the west. There is truly so much going for the area.

Tongaat Hullet is proud owner of most

of this land. Through Tongaat Hulett Developments the property arm of Tongaat Hulett dreams of property developers and investors are realised.

The business constantly converts portions of prime land for property development.

The conversion of its land portfolio is a key enabler in Tongaat Hulett’s drive to achieve value creation for all its stakeholders, achieved through an all-inclusive approach to growth and development.

Currently, the business has a total of 8 000 hectares of land earmarked for development in KwaZulu-Natal.

Options for visionary developers are boundless. What is undeveloped land today could be a dynamic skyline tomorrow and this has been proven many times.

The conversion of its land portfolio is a key enabler in Tongaat Hulett’s drive to achieve value creation for all its stakeholders.

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ADVERTORIAL

The Oval Sites are zoned for 17 storeys of mixed-use buildings, so they offer potential for truly iconic structures

The Oval Sites

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ecently, Tongaat Hulett Developments announced the release for development of two iconic sites in the upmarket Umhlanga Ridge Town Centre – the Oval Sites reflect the form framed by the sweeping arcs of the Umhlanga Ridge Boulevard as it splits around them.

potential for truly iconic structures. In view of the dynamic growth of the area and attendant ongoing infrastructural development, the Umhlanga Ridge Town Centre’s Oval Sites form the last remaining investment opportunities offered by Tongaat Hulett in this urban hub.

The Oval Sites are zoned for 17 storeys of mixed-use buildings, so they offer

The Oval Sites may be sold jointly or separately. It is, however, envisaged that

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the use and architecture of the sites will embrace the iconic qualities of these prime locations.

Design proposals for the two sites must complement one another and, when considered together, create a synergy that is in keeping with the overall town centre.

SAIBPP | VOL.2 ADVERTORIAL

Sibaya

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ocated on the north coast of KwaZuluNatal, Sibaya is a development situated approximately 5km north of Umhlanga Rocks and approximately 7km south of the King Shaka International Airport.

It has excellent connectivity through the existing national (N2) and provincial highways (M4 & M27) and boasts five development nodes that are predominantly zoned for mixed use. Nodes 1 and 5 have spectacular views of the Indian Ocean with the total extent for Node 1 about 50 hectares and Node 5, about 77hectares.

Sibaya will give rise to a new coastal node which includes residential, commercial and office development

Located within the development footprint is the Hawaan Forest, a pristine climax dry coastal dune forest, with abundance of buck, bird and insect species.

With its undulating topography, Sibaya will give rise to a new coastal node which includes residential, commercial and office development, together with recreational and entertainment opportunities.

Tinley Manor

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ocated on the eastern seaboard of KwaZulu-Natal, South Africa, Tinley Manor is prime property situated approximately 10km north of the greater Ballito area, 25km from the King Shaka International Airport and 50km north of Durban.

The site is bounded by two significant natural features of the Umhlali River Estuary to the north and Christmas Bay beach to the east.

The regional N2 freeway traverses a small part of the western portion of the site, with a partly developed low density residential estate of Seaton Delaval forming the southern boundary.

Tinley Manor is prime property situated approximately 10km north of the greater Ballito area

For more information on investment opportunities, visit www.thdev.co.za or contact us on 031 560 1900

Overall, Tongaat Hulett strives to create value for all stakeholders through an all-inclusive approach growth and development.

This approach yields access to wellpositioned, fit for use sites at market prices that encourages developers particularly first-time property investors to partake at low risks with no barriers to entry.

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PERSPECTIVES

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outh African property companies should search for opportunities in the rest of the continent. African states are ready for investment and are stable. Only if there is explicit political violence should investors be wary.

Even in the so-called unstable African countries normal life goes on. Instability is often exaggerated in Western media.

As one speaker at the SAIBPP conference said, you can’t sit in Johannesburg and take cues from Western media. We should go and find out for ourselves. We’d realise that in Dar es Salaam one can leave one’s stuff by the roadside overnight and find it intact the next morning. It is common in Accra to find sellers leaving their potted plants by the street overnight and find them the next day. But you might find some travel advisory documents listing Accra as being relatively unsafe.

Africans themselves can help to counter the image of the continent as being unstable or hard to navigate. Firstly, we need to be more united. We need to reduce immigration restrictions between each other. It takes a lot for migrants to leave their friends, family and a familiar environment to impart their skills abroad. Secondly, when people migrate you tend to get the most adventurous and most innovative ones. Thirdly, immigrants create jobs and don’t rob locals of any employment. So, let’s open borders and let people move around.

A word of advice to South African property practitioners who wish to invest in Sub-Saharan Africa: use your money wisely. You must avoid expensive hotels so you can stretch your budget, allowing you to stay longer in each country. Don’t go to Accra or Lagos and hope to find business deals in a week. Spend a month or two there in order to build solid business relationships with right partners.

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A sensible move Great property minds explain why investing on the continent makes business sense

In addition, an extended stay in a particular country will allow you to understand the nuances of the national conversation. To succeed with our degree programme at Wits University, we had to spend time listening to South Africa’s national conversation. We

understand that transformation of the property sector is a national priority.

If you go to any country hoping to close one deal, make maximum profit and fly back to South Africa, you won’t succeed. In fact, you might get swindled.

Picture: Johannes Dreyer

Prof Samuel Azasu: Coordinator Postgraduate Studies in Real Estate, Wits University

Prof Samuel Azasu advises investors to stay long in each country to understand the national conversation

SAIBPP | VOL.2

Picture: Johannes Dreyer

PERSPECTIVES

Victor Kgomoeswana: Author of Africa Is Open For Business and radio host, Power FM

M

y passion for Africa springs from the fact that, first and foremost, I’m an African.

Secondly, the continent undeniably offers the longest upside of all emerging markets – whether you compare it to China, India, Brazil and Russia. This is a continent of 1,1-billion people, 54 states. What’s more, all these countries are beginning to integrate into fewer regions, which means every year the market is getting more consolidated.

For the past 10 years, the fastestgrowing economies have been African.

There have also been impressive achievements in government. The World Economic Forum has labelled Rwanda the most effective government in Africa.

So when you are here in South Africa and you only think of Rwanda as a place where a genocide once happened you are missing out on a lot.

Other African countries also embody success. Zambia, for instance, is a very stable democracy with high economic growth. Ghana, with its gold economy that is becoming an oil economy, has had impressive economic growth in recent years. And so has Nigeria, the continent’s largest economy, with 150-million plus people.

Victor Kgomoeswana feels South African property practitioners need to witness boom in Africa

The story of Africa is truly diverse, whether you look at Ethiopia with more than 80-million people, and one of the fastest-growing economies. Uganda will soon add oil to its economic mix and plans to build a refinery. In Mozambique there’s a new world-class airport at Nacala, in the north of the country.

So, when South African property investors go out to invest on the rest of the continent they shouldn’t limit themselves to big cities or capital cities.

Peripheral regions also offer great opportunities too. However, there are also worthwhile investments in big cities that are also growing due a rising level of urbanisation on the continent.

South African property players should go to the rest of the continent to see for themselves this impressive boom. They won’t read up on any study. Everything will be in front of their eyes.

If you are a property specialist and you want to see what a property boom really is go to Addis Ababa in Ethiopia, to Accra in Ghana, to Dar es Salaam in Tanzania, to Thika in northern Kenya, to Kinshasa in the Democratic Republic of Congo.

South African property practitioners should not make a lack of infrastructure in some African countries to be a hindrance. Any backlog is a business opportunity. Even in countries with no infrastructure, there is still property development. Just because some African

countries don’t have the highways that investors are used to here in South Africa doesn’t mean they are not developing. Besides, there are African countries that are beginning to catch up a great deal with what we have here in South Africa.

Doomsayers may think I’m painting a picture that is too positive and point to ills such as terrorism. When you do business you manage risk. You don’t avoid it. The essence of enterprise is a willingness to deploy your resources and your skills to minimise risk while optimising returns. So, yes there are countries with poor infrastructure.

There is corruption, but corruption is not an African phenomenon, it’s a business phenomenon. Africa is open for business. Are we open to those opportunities?

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Patrick Katabua: Transaction Manager: Africa and Middle East -Tenant Representation, Cushman & Wakefield

Picture: Johannes Dreyer

PERSPECTIVES

I

’ve been in the real estate industry for almost 10 years. The industry is as exciting as it is broad. There is certainly lots of value-add that property practitioners can contribute towards it.

True, in the real estate industry you witness a lot of amazing things. One of the impressive occurrences, right now, is the phenomenal growth of property developments across the continent.

The boom in African property is happening because Africa is eating – and eating well. Across most of the “hot markets”, there is a great wave of “homecoming” from a vast Diaspora community, especially after the financial crisis of 2008. This movement has brought with it some intellectual capital and some hard capital that immensely benefit infrastructure development on the continent.

Furthermore, there is more stability on the continent, and there is a realisation that stability brings with it opportunities for self-development. More intraAfrican trade is taking place, and the benefits trickle down the value chain.

Investors need to bear in mind, though, that Africa is not a country. Each market or region has different characteristics that influence investments. Let’s take rental yields in the office market space as an example. While there are impressive rental yields that investors can get, yields vary enormously. Even on the same street rental yields can range between 8% and 15%.

In my view, in terms of best rental yields, “hot” markets to watch out for would be Côte d’Ivoire, Nigeria, Democratic Republic of Congo, Zimbabwe, Ethiopia ... in that order.

So, if you are a property investor

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Patrick Katabua believes continental stability brings opportunities for self-development

wishing to venture into any of the African markets, you need to be thoroughly prepared.

There’s no magic formula and nothing to be fearful of. Some key factors to consider when investing on the rest of the continent are: • Cashflow is king. Ensure that the underlying asset has the capability of generating solid cashflow.

• Be patient and take time to understand the players and the market.

• Start small before growing.

• Bring in a value-added service that is lacking in a particular market.

• Collaborate with a savvy local partner.

Of the African countries to consider for investment, my personal choices would be Nigeria, Ghana, Kenya, Zambia and Tanzania as my top five. They are all English-speaking, with a rapidly rising population and fairly under-serviced real estate market (except for Kenya, which seems more advanced).

A good thing is that funding models for deals are now more sophisticated and, unlike 10 years ago, there are alternative funding options, for example private equity and pension funds, and so on.

Potential investors must note that for every risk, there is a mitigant. And Africa is eating. Let’s participate.

SAIBPP | VOL.2 PERSPECTIVES

Bongani Mahlangu: Associate, Glad Africa

I

work as a Construction Project Manager. I’ve been in the construction and property and sector since 2004. At the beginning of November I attended the 2015 SAIBPP Convention in Durban, and I left the conference feeling very inspired. I then decided to do some research and familiarise myself with infrastructural development in our neighbouring countries. During my research I came across the details of a Namibian public sector official. I took a leap of faith and called him to introduce myself and we later corresponded via email and it is clear that there is a huge role to be played by South African property practitioners in helping our neighbouring countries develop their infrastructure. This is something I would like to be involved with in the future.

Ironically, it’s not as if we Africans don’t have the means or capacity to build our continent; in South Africa alone we have some of the best property practitioners, some of them are highly respected globally. So, if you are a South African property player, it makes sense not to rush to invest in places such as Dubai and England but, instead, to start in your own backyard – Africa.

Obviously, there are challenges in investing in Sub-Saharan Africa, but these should not be a hindrance; there are challenges everywhere. Proper research and commitment are key ingredients to successfully navigate

Picture: Johannes Dreyer

I am very confident that I have a lot to contribute towards infrastructural development of our continent. I agree with SAIBPP’s message that South African property practitioners should go out to other parts of the continent and prospect for business opportunities instead of waiting for opportunities to come their way. Apart from reaping business rewards, as property practitioners we can also help rebuild Africa’s infrastructure to be world-class and make the continent a powerhouse.

Bongani Mahlangu is ready to seek opportunities outside of South Africa

our continent. Of course, finding right business partners to collaborate with is essential. Collaboration presents a truly win-win situation for everyone and, most importantly, it allows us Africans to write our own story.

While I’m fired up about our continent, I want to first spread my wings in the SADEC region before going any farther on the continent. I know there are many attractive investment destinations such

as Ghana, Kenya, Rwanda and other East African countries, but I would like to start somewhere closer to home. For me, charity begins at home or at least closer to home.

Finding my own path and walking it is something I dream of doing someday.

Hopefully, this path will lead up to North Africa and even the rest of the world. It’s a legacy any man can be proud to leave behind.

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Picture: Johannes Dreyer

PERSPECTIVES

Dr Kola Akinsomi sees great opportunities for property investors in Sub-Saharan Africa where demand for office space far outstrips supply 20

SAIBPP | VOL.2 PERSPECTIVES

Dr Kola Akinsomi: Real Estate Lecturer, Wits University

R

ight now Sub-Saharan African markets by far offer superior returns compared to the South African market. They offer much better premiums, which is profit. The premiums are higher because there is a higher risk premium in comparison to South Africa.

The office market, in particular, makes investing in Sub-Saharan Africa attractive. In Lagos, Nigeria, rent in a premium grade office space is more than $1 000 per square meter depending on location. Also, in Luanda, Angola, premium grade office rent is about $1 800 annually, according to Knight Frank Africa Report 2015. By contrast, in Sandton, Johannesburg, which is supposedly the richest square mile in the whole of Africa, premium office rent averages at about $200 per square meter annually, according to Jones Lang LaSalle Johannesburg office market report 2015. So, in cities like Lagos and Luanda, rentals are sometimes five or six times higher than what an investor gets in Johannesburg, South Africa.

As the economy grows, and the middleincome groups grow, different aspects of the economy grow. The net result of all this is that employment increases. When that happens, there’s an ever-increasing demand for space. From an economic perspective, this would be office space.

But this demand is yet to be met. Recent findings by a Jones Lang LaSalle research show that in Sub-Saharan Africa there are only 2 million m2 of office space for 830-million people. In South Africa, by contrast, there are 15 million m2 for only 52-million people.

This clearly illustrates a severe disparity in supply in Sub-Saharan Africa, meaning a huge opportunity for South African property firms wishing to play more on the continent. If, for example, as a property practitioner you can offer an A-grade building, complete trappings such as Wi-fi, you can charge a premium because demand is high and supply low.

This disparity cuts across other property types: retail, hospitality and industrial space.

Yes, from an investment point of view, there will always be high costs in providing such premium-grade building and there are also high risks, which could be a barrier to entry for some investors. But therein lies an opportunity to invest. High risks translate to high returns. Investors who are able to overlook high risks in these Sub-Saharan African markets enjoy high returns. Property investors should not concentrate too much on costs, but on premium, which is derived when you minus costs from benefits.

There are other factors that make investing in Sub-Saharan Africa worth considering. First, it’s the population size. South Africa has about 54-million people while Sub-Saharan Africa, excluding South Africa, has about 920-million citizens. A high population needs space to live in, to shop at, and to play and work in. For investment to succeed, you need a critical mass and population provides that critical mass.

Also, if you look at Gross Domestic Product (GDP) growth rate, not just the value of the GDP, a lot of countries have already surpassed South Africa – Nigeria, Ghana, Congo, and Ethiopia.

Some of them are hitting double digits in terms of GDP growth rates.

Thirdly, in Sub-Saharan Africa more and more sectors of the economy are being formalised, for example communication, banking and real estate sectors. When these sectors start being formalised, more investment comes in.

Fourthly, there is also the issue of the ease of doing business. In general, East African countries such as Tanzania, Kenya and Rwanda have done far better in this regard than their counterparts elsewhere on the African continent.

These countries are succeeding because of leadership vision. Since they don’t have an abundance of natural resources, such as oil, and they badly need investment, these countries make ease of doing business a priority.

These countries have also done well in tightening up property rights, which makes it easier to woo investors.

Property rights affirm land ownership and stipulate what a landowner can or cannot do with their land in line with the law.This takes away any uncertainty for an investor and prevents competing claims for the same land. Sadly, most African countries are yet to properly tighten up property rights. Kings still own most of the land and determine land ownership, which can slow down development. African land commissions need to tackle this challenge.

But African countries have done well to clarify property rights in cities, which is why these cities are attracting investments. The same model needs to be replicated in outlying regions and towns so they, too, can grow. This will spread out development and encourage citizens to make a living where they live without migrating to big cities, causing overpopulation and straining resources and sometimes triggering social strife.

Apart from ascertaining property rights in various countries, South African property companies need to look at expected returns or premiums. They also need to look at each country’s taxation laws. Furthermore, they have to find out if they can repatriate any profit back to South Africa. Also worth considering before investing is market size. You also need to determine your strategy; some investors like critical mass. You also need to determine your level of risk tolerance, whether you are after high- or low-risk investments. You also need to figure out the sector you want to be in – office space, retail space or residential space. Lastly, you need to understand the liquidity of the property market you are investing in. Some countries don’t have stock exchanges, which is very important for planning your exit strategy out of that market. You also need to think about how long you will stay in a particular market before exiting it, also known as holding period in real estate investments.

So, South African investors need to be forward-thinking. They have a lot of work cut out for them.

21

ESSAY

Hargeisa, in Somaliland, is expanding and its modern architecture is booming.

New buildings rise up in former war zone From nomadic huts to art deco houses and Omani, Egyptian and Ottoman architecture, there is much in Somalia’s heritage to celebrate

By Sada Mire

I

first learned to construct nomadic huts with my grandmother in the summer holidays – spent, whether I liked or not, living in Dayniile, near Mogadishu. Being a Mogadishu girl, living in a comfortable villa, I hated it at first so my father sent, as a surprise, a tiny battery-run TV, which transformed our evenings at the nomadic camp.

Although we never planned to live like that, later, as it happened, we became refugees and ended up internally

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displaced in what would have otherwise seemed like barren landscapes. But thanks to my childhood experiences we were able to construct houses on our own.

We knew where to source the material, get water and even medicinal flora: we made mats of fibre and used dried and shaped acacia roots to serve as pillars. This was before aid arrived and plastic tents invaded the region.

Unlike the plastic tents, which are hot

during the day and cold at night, the nomadic huts are suited to the arid and hot climate: they are cool during the day and warm during the night, thanks to their natural ventilation system. It is eminently uplifting to construct your home as a way of dealing with loss in the emergency of war.

Along with the ongoing conflict, Somalis also face an environmental emergency thanks to deforestation.

People are consuming their future by

SAIBPP | VOL.2 ESSAY

burning the same acacia trees they need for their homes into charcoal for the international trade.

These trees take years to regenerate.

Soon, it might be that people won’t have any other option than to wait for plastic tents from Europe.

I feel proud that the nomadic hut is, in its entirety, a result of female ingenuity and collective effort. It is a common practice that women support each other through thick and thin. But making the house is fun. Women sing and recite poems during its construction.

A bride-to-be making her marital hut invites female friends and relatives and,

After decades of peace Hargeisa, in Somaliland, is expanding and its modern architecture is booming. as a reward for their hard work, offers food and drinks; but if she fails to do so they will sing about her laziness or, even worse, her stinginess.

One of my favourite objects happens to be the interior mat of the hut, the kebed, an insulating and decorative mat. A mother might help her daughter weave her bridal kebed and she may also weave a secret message to her daughter and her son-in-law through a combination of intricate patterns and colours.

The experience of building huts has helped me appreciate Somali architecture. Through my archaeological work, I have come across all sorts of human dwellings, everything from rock shelters inhabited thousands of years ago, often adorned with the most spectacular paintings, to dry-stone towns on the Somali coast, and to the modern architecture in cities like Hargeisa.

Mogadishu features the Shirazi Persian architecture of the Swahili houses and

mosques. However, the ongoing war has caused a lot of destruction. The beautiful Islamic buildings with minarets, arches and domes, including Omani, Egyptian and Ottoman architecture, need protection and preservation. In Berbera, Somaliland, one can still enjoy some beautiful Ottoman architecture. During the European colonial era, impressive structures were erected too. Mogadishu has a cathedral built during Italian times, and hosts a number of art deco houses.

There is what could be called anti-colonial architecture too. My grandmother used to talk about Sayyid Mohammed Abdullah Hassan, the Somali liberation hero of the Daraawiish (Dervish) movement; she used to recite his poetry to my siblings and me.

What I didn’t know as a child, though, was that the place she called Taleh, the sheikh’s residence, was a significant maze-like fortress. The colonial British were unable to penetrate it and had to resort to air bombardment.

Somalis seem to be experts in resurrection through time. After decades of peace Hargeisa, in Somaliland, is expanding and its modern architecture is booming. As I write, I am sitting admiring the hotel near my house in the city. It is inspired by the Arabian style of curvy angles and arches and big courtyards.

I can’t believe that this beautiful hotel and many more have risen out of the war zone I saw just two decades ago. I also can’t believe that the ambitious owner of the hotel actually converted what was a barren hill into a lovely garden.

Seeing towns like Hargeisa gives me hope for places like Mogadishu which, in times of relative calm, is enjoying new construction and reconstruction projects. What will be the future for Somali architectural heritage? Only time will tell.

First published in The Guardian

Quick facts about Hargeisa 1. Hargeisa, also spelled Hargeysa, is the capital of the selfdeclared republic of Somaliland, internationally recognised as an autonomous region of Somalia.

2. Hargeisa is located in an enclosed valley of the Galgodon (Ogo) highlands, at an elevation of 4,377 feet (1,334 metres).

3. It has a population of 800 000.

4. During the Somalian civil war that began in the 1980s, Hargeysa was severely damaged; much of the city was reduced to rubble, and most of the population fled. A large number have since returned, and much of Hargeysa has been rebuilt.

Sources: Virtualtourist.com; Global.

Brittanica.com 23

ESSAY

A dynamic continent rises again The first European explorers were amazed at the continent’s wealth. Now, after centures of slavery and colonialism, its economies are starting to strengthen

By Emmanuel Akyeampong and Hippolyte Fofack

W

hen Portuguese explorers first arrived on the east African coast at the turn of the 16th century, an anonymous recorder on the voyage of Pedro Alvares Cabral noted of Kilwa (off the coast of present-day Tanzania): “This island is small, near the mainland, and is a beautiful country.

The houses are high like those of Spain.

In this land there are rich merchants, and there is much gold and silver and amber and musks and pearls. Those of the land wear clothes of fine cotton and of silk and many fine things and they are black men.”

The “Africa rising” story of booming economies and growing middle classes is important in correcting the global perception of Africa, for Africa has not always been in decline.

The 500 years after the European arrival in Africa saw an increasing integration of Africa into the global economy, but often on terms which worked against Africa’s interests: the slave trade through the end of the 19th century, then European colonial rule to the 1960s.

24

The challenge of development has been the story since, as Africa struggled with the legacies of colonial rule, its marginal share of global trade, and corrupt and dictatorial leadership.

This pendulum swing has been as refreshing as it has been uplifting for a continent that had misery and destitution as its key tropes. However, it is also true that poverty has remained widespread.

In the first decade of the 21st century, the tide seemed to have turned: six of the 10 fastest growing economies in the world were in sub-Saharan Africa: Mozambique, Rwanda, Angola, Nigeria, Chad and Ethiopia.

Between 1990 and 2010 the number of people in poverty increased from 289 million to more than 413 million, compromising the prospects of meeting the first millennium development goal, of eradicating extreme poverty.

While some benefitted from the rising oil price, Mozambique’s oil production was yet to come on line, and Rwanda and Ethiopia are not oil producers.

And the sharp decline in global prices for commodities such as oil and copper since last year have raised major challenges, especially in major oilexporting countries such Angola and Nigeria where oil accounts for more than 90% of export earnings. Today Africa’s share of global trade remains less than 3%.

As a region, Sub-Saharan Africa grew at an average of 5% during the first 15 years of the new millennium, a sharp departure from the 1980s, which went down in history as Africa’s lost decade.

The Economist once called Africa the “hopeless continent”. In its “Africa Rising” cover story in March 2013, the same magazine predicted that the average African economy will outpace its Asian counterpart.

The revolution in the worldwide web, social media, and the proliferation of mobile phones are accelerating the pace of Africa’s economic development.

Mobile telephony has already unleashed innovation in banking across the

SAIBPP | VOL.2 ESSAY

Sub-Saharan Africa grew at an average of 5% during the first 15 years of the new millennium, a sharp departure from the 1980s

continent. Still, the Africa rising narrative is complex, as it extends beyond economics.

The 1980s and 1990s saw a brain drain from Africa, as academics and professionals relocated to the West.

The focus has now shifted to brain circulation, with the rise of African trans-nationals and schemes that allow Africans living outside the continent to contribute to its development.

embrace of social media signals a new energy that is finding expression in the creative arts and popular culture. But the frustration of social aspirations is also evident in the thousands of Africans who attempt the perilous Mediterranean journey to Europe, convinced that a brighter future lies beyond the continent.

The rise of a prosperous Africa will ultimately be based on the emergence of an assured African, confident in

The internet, social media and the proliferation of mobile phones are accelerating Africa’s economic development.

The strengthening of institutions that produce knowledge is central to Africa’s future. We see glimpses of a confident Africa in how young people engage with western and diasporic influences. Ghana’s hiplife music, for example, represents the indigenisation of American hip-hop.

Youth activism continues to play a key role in the democratisation process that is sweeping through Africa. Their

knowledge and identity, at home in Africa and the world at large. It was this spirit that surprised the Portuguese visitors to Kilwa in 1500. Two centuries earlier, the Muslim king of Mali,Mansa Musa, made a pilgrimage to Mecca in 1324 with a stop in Cairo.

The Arab historian Chihab al-Umari, who visited Cairo 12 years later, wrote that Mansa Musa “left no emir or holder of a royal office without a gift or load

of gold, he and his company gave out so much gold that they depressed its value in Egypt and caused its price to fall”. This was at a time when twothirds of the world’s supply of gold came from west Africa. Mansa Musa’s extravagance brought Mali to the attention of the world and Mali would appear on the map of the world drawn

by Angelino Dulcert of Majorca in 1339 and on subsequent maps.

There was a time when the economic actions of Africa’s rulers had worldwide consequences. Africa is rich in natural resources.

Africa’s knowledge base is expanding.

Africa could still ultimately reclaim the position it occupied when the Portuguese explorers first arrived.

But that story will be told not only in national income statistics. It is also a story of Africa’s cultural renaissance and the inevitable birth of a new African personality.

First published in The Guardian 25

ADVERTORIAL

The importance of sustainable solutions for businesses Bidvest Facilities Management aims to deliver an integrated facility management strategy that minimises total costs through forward looking, performance-based risk and maintenance strategies

B

idvest Facilities Management, one of the leading FM solution providers, will be participating in the annual Green Building Convention (GBCSA), aimed at leading the sustainability journey in the South African property industry through inspirational thought and action.

According to GBCSA, buildings are the key to a cleaner and greener future, and Bidvest Facilities Management aligns itself with this statement.

Onisms Manyewe, an energy engineer at Bidvest Facilities Management and a green star accredited professional with the GBCSA, says that electricity accounts for 90% of the utilities bill for an average South African business, and this power percentage is unlikely to drop in the near future, given the current energy situation the country is facing. “Today, most firms focus on their core competencies, and there is a limit to the efficiencies that a business can achieve on its own. As such firms require experts who can realise significant savings for them, while their businesses remain productive and efficient,� he says.

Outsourcing for efficiencies Bidvest Facilities Management aims to deliver an integrated facility management strategy that minimises total costs through forward

26

Bidvest Facilities Management believes that buildings are the key to a cleaner and greener future

looking, performance-based risk and maintenance strategies. “We participate at events such as the Green Building Convention of South Africa because we

recognise the importance of sustainable solutions for businesses, which has a ripple effect on the economy of the country as a whole. We have always

SAIBPP | VOL.2 ADVERTORIAL

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Green building increase to 60% According to Bidvest Facilities Management, a global rise in the demand for energy is seeing organisations turn to greener solutions, and as people begin to recognise the importance in energy consumption, a significant increase in the number of South African firms adopting green building initiatives is noticeable.

It was projected that in 2015, the level of green building activity in the country would rise to 60%. Green building and smart building design solutions provide firms with lower operating cost, which results in healthier neighbourhoods, while rendering higher returns on investments, and promoting lower taxes on carbon emissions.

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About Bidvest Facilities Management Bidvest Facilities Management is one of the largest Facilities Management solutions companies in southern Africa.

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didi.coetzee@bidvestfm.co.za 27

SAIBPP CONVENTION

Time for collaboration As part of the 2015 SAIBPP Convention a panel discussion took place about the pros and cons of taking South African property practitioners beyond South African borders

A

s part of the 2015 SAIBPP Convention a panel discussion took place about the pros and cons of taking South African property practitioners beyond South African borders.

The panellists were Patrick Katabua, Transaction Manager for Africa and Middle East: Cushman & Wakefield; Zuki Siyotula, Executive Head: Thebe Oil and Gas; and Dr Kola Akinsomi, senior lecturer, Wits University. The moderator was Lynette Ntuli, SAIBPP Deputy President.

Zuki: We often have this narrative around Africa being a possibility, talking about our potential. And often times it’s the opposite narrative talking about the dark side of the continent.

It gets to a point where I think as Africans we need to own up to our

If you look globally other economies are not growing as quickly as some of the African economies. When we look at the top 10 growing economies they include a lot of African countries.

The time has come to think seriously about regional integration and how to go about it. It’s not necessarily going to be the 54 African countries being in agreement at the same time.

But it’s looking at blocks within the continent that can make certain things feasible. I use an example around gas.

When we look at Mozambique, you know they have the resources.

We need energy in South Africa. It’s about the willingness of the leadership and governments and business to have effective partnerships and driving that.

We need very strong African leaders

“I would also like to see more South African companies investing in different African countries.” – Zuki optimism and need to believe in our story to say: “It’s no longer about our possibility and potential. We are living in that state now.”

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who understand that political will can influence where the economy is going to be growing for us to realise this potential whether it’s within the property

sector or within the energy sector. The other thing that’s quite fundamental to remember is that investments follow stability and we really have to hold African countries accountable for the creation of such stability.

The other key thing is Africans need to own their story of prosperity. We need to focus less on how we attract foreign investors. I would also like to see more South African companies investing in different African countries.

Let us partner. When we move into Mozambique, look for local partners on the ground as well as international partners.

Moderator: Patrick, do we need a coordinated land strategy?

Patrick: Let me touch on the point of instability. I find it quite fascinating when you read the papers and you see certain countries being portrayed as unstable and their attractiveness decreases on the map as a result.

And yet you still find corporate companies in those countries.

Regardless of what happens in the Democratic Republic of Congo Shoprite is there.

The DRC is meant to be one of the most

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opaque countries on the continent. You still have United Nations peace keeping forces. So, in theory there’s meant to be war. But Shoprite has wishes to open up eight other sites within the next three years there.

So, if it’s a war-torn country and there’s instability, does it make sense to open businesses there? So, to link instability to real estate I would ask the question – does political instability affect your real estate transaction?

Because it seems like regardless of whether there’s war or not your population still needs to shop somewhere. They still want to go for entertainment somewhere.

Political instability should not feature that high on your radar when you make a decision in terms of which African

country to go into. In Arab Africa, despite the Arab Spring, investors are still there. A lot of investors simply changed their investment plan, their entry strategy.

You look at Anglophone Africa. That’s typically where South African money used to go. There’s more competition now. The newcomers are countries in Francophone Africa where South African companies were very shy to enter before because those countries were French and not English. But as soon as Chinese went in they realised that actually the Chinese don’t speak French either.

But if China is successful in Francophone Africa, it might as well make sense for South African companies to look at it as well.

And then you have Lusophone Africa,

the Portuguese-speaking ones. It’s a bit easier for South African companies to do business in Mozambique because it’s across the border but it is still trickier than Angola despite the fact that it offers bigger returns.

So I look at all these factors and what is reported in the media. On one hand those factors are true. On the other hand, does it really have an effect on your real estate decisions? Does it really affect your consumer at the end of the day?

Moderator: Thank you Patrick. And finally Kola.

Kola: The past decade in Africa has been very interesting, particularly in the area of the introduction of the real estate investment trust. Real estate investment trusts, the inception could be traced to US in the 1960s so they

Lynette Ntuli in conversation with panellists Dr Kola Akinsomi, Zuki Siyotula and Patrick Katabua

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have been in the investment space for about 50 years. But real estate investment trust got introduced on the African continent in the past decade.

It has opened up another alternative investment in Africa. So in South Africa the real estate industry came on board in 2013. Currently, the market valuation in South Africa is $35-billion. As we move towards Sub-Saharan Africa, Nigeria’s market cap is not that huge.

It’s just three traded REITS with a total market cap of around $142-million. You have REITS in Ghana. One REITS in Ghana. The recent one the most recent one is the one that StanLib offered the Kenyan market. It’s called the StanLib Fahari REITS which has just IPOed. The initial public offering would end on 12 November 2016. So we can’t have a market valuation on that at the moment. You can see that Africa is moving forward. Investors from Europe, Asia, North America, South America

Moderator: Property rights are very sensitive and historically touchy area when you think of Africa. We are now in 2015 when certain countries have perhaps been independent for more than 40-50 years and here South African where we’ve been free for 21 years.

Has it been enough time for us not undo the our country’s harmful legacies, particularly those that relate to the rights around land and property?

For us to begin to say this is how we intend to chart a new future and how to optimally use our land and property and also make sure that, while we have made those changes, the loopholes in our legacy, as well as our statutes, don’t allow African land to be taken advantage of.

Kola: Like we all know that property rights are the most fundamental or basic of any form of investment.

“Property rights are critical for investment.” – Kola can invest in Africa through instruments or through vehicles such as this. So that is something that moves the real estate space forward. We are moving from direct real estate to indirect real estate.

On the other side we are not doing too well with property rights. We still lag behind. You need to look at the World Economic Forum Competitiveness Report where they look at property rights in all countries in the whole world. On the property rights and the ease of doing business, African countries are the worst performing – 141 (Angola),116 (Nigeria) out of 150 countries. The only country that performed well in Africa was South Africa, which ranked 20 for property rights and also around the ease of doing business. So, this is something that we need to grapple with. On one hand we are progressive. On the other, we need to be more concerned.

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If I pay for real estate and I don’t have ownership of that it means that tomorrow my neighbour can come in and take my property off me. So, that’s a fundamental part of investments. That’s something we need to get right. But then if you look at African countries we always mention British colonialism and stuff like that. I mean this happened…. what…almost 60 years ago. I don’t know why we keep going back to the same topic. We should be asking pertinent questions. For example, what are the commissioners of land in African countries actually doing to make land accessible and to actually register it. In Nigeria, for instance, property can be registered but then you have instances where there’s no registration of land. Property is passed from one generation to another generation without documents. So, you ask yourself where do we go from here. And I think it then

goes back to legalities and rule of law and how we need to get property rights and land rights intact before we are able to attract inwards investments.

Moderator: In terms of regional economic integration, how can we develop a strategy from a land and property perspective?

Where do we even start given the 54 states on our continent? And what then is a priority if we look at those things as being central to what propels the continent forward?

Zuki: It is critical is for us to remember that the 54 African countries are unique. We often think of Africa as one blanket as though it’s one country.

But each of those countries differs in size, population, GDP growth and we really need to understand where are the opportunities in each of those countries.

And then we can strategically coordinate to make each block focus on a particular area of economic activity, for example gas or infrastructure development.

And once we start to strategically have those partnerships across different countries we will be able to see progress.

Recently, I looked at some stats on property and one of the things that struck me was how the developed world has used housing to grow their economies. And one of the indicators is the mortgage to GDP ratio.

In the US it’s 77%, in the UK it’s about 80%. Then compare African countries.

In Ghana the ratio is 2%. In South Africa, it is 31%, the highest on the continent. And that really measures the ability of an ordinary citizen to go and get a mortgage to own a house.

We need to build institutions that allow people access to finance to own land. Because from there you are able to move on and there’s a lot that we need to deal with across the

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different countries. Those are some the fundamental blocks we really need to focus on.

States (Ecowas) where you’ve got Nigeria, the dominant player, they’ve

Moderator: So, Patrick, what’s the role of instability in terms of between policy and law?

“Political instability should not feature that high on your radar when you make a decision in terms of which African country to go into.” – Patrick

Patrick: I think it has its advantages and disadvantages. If we look at the European Union you’ll find that there are winners and there are no winners.

Like the countries that are called the PIGS – Portugal, Ireland, Greece and Spain. Once a upon a time Greece was doing fairly well. As soon as they integrated with the rest they could just not compete. Similarly, in Africa there may be winners and losers depending on who you align with. If you look at Economic Community of West African

realised that there is some stigma attached to Nigerian business.

So, typically Nigerian banks are now registering in Togo and Senegal.

Ecobank, for example, is a Nigerian bank registered in Togo. That’s an example of regional integration being beneficial to them.

And it has given Ecobank access to the whole of West Africa. And because it worked homogenously for them they’ve now been able to go to the rest of the

continent. So, it has its pros and cons. In East Africa, Kenya, Rwanda, Burundi,

Uganda have come together to work on allowing the flow of humans without visas. Similar to what they did in West Africa. Imagine what that does to you as a property owner. If you’ve got a mega shopping centre in Rwanda all of a sudden your catchment area is now 400 000 working class people. It opens it up completely because you now have access to different countries.

This is the form that needs to happen among African countries.

Unlocking Africa’s potential through property Since our establishment in 1996, we have been at the forefront of championing transformation of the property industry. We have been lobbying to get more black people into the property industry – whether as employees or as owners of their property companies. We are here to open closed doors for our members, not just in South Africa but also elsewhere on the continent.

Become a member of SAIBPP and help us use property to unlock Africa’s potential.

For more information: Call: 011 838 6722 Fax: 011 838 6721 E-mail: Services@saibpp.co.za Physical address: Vusa House, 5th Floor, Suite 2, Gandhi Square, Johannesburg, South Africa Visit: www.saibpp.co.za

SAIBPP CONVENTION

Ravi Pillay, MEC: Human Settlements and Public Works, KwaZulu-Natal

KZN is full of opportunities Infrastructure and economic growth are inextricably intertwined

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our convention occurs at a critical time for our country when we seek to advance radical socio-economic transformation.

It is taking place straight after the National General Council (NGC) of the ANC where some very strong statements and commitments were made. Indeed in this province it coincides with a provincial conference that starts tomorrow.

The NGC gave us some very strict marching orders in terms of government policy. So our whole role remains guided by the National Development Plan 2030 Vision, our long-term blueprint for the development of our country. Our strategic focus remains that of rebuilding and developing our country for the benefit of all people, especially the poor and historically marginalised.

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But there has to be a new emergency in meeting this challenge. And I would like to think that in many ways you are at a critical coalface of that challenge. The state is a key instrument in advancing this transformation. The National Development Plan details massive industrialisation and infrastructure development, but central to this is the building of a capable state.

That is our responsibility and we will not be able to do it if we don’t have power partnerships with organisations such as SAIBPP. KZN’s budget for the year 2014/15 financial year was R96,7-billion. Of this roughly 20% – R19,2-billion – related to goods and services. And about R8billion directly to a capital infrastructure spending as well as various repairs and maintenance programmes. The total spend in procurement was

R26,6-billion. That has been central to driving empowerment, job creation, empowerment, skills development and socio-economic programmes.

We are convinced that government spend on procurement is a fundamental catalyst for this transformation aimed at creating a demand-driven education system functional and expanding job markets coupled with a skills transfer for our sustainable future.

But the economic downstream has hit hard. Some of the stresses you see in society, and in KZN in particular, is directly related to that downswing.

When that happens, fault lines in our society, a historical legacy, are sharpened.

Our challenge is to manage it. Be firm on principle but not forget the underlying issues that require a real

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response from us. And that’s why you find that we had a very strong Procurement Indaba about two months ago. At some point maybe you will need to have access to those resolutions because they talk directly to your agenda.

Coming back to infrastructure development, South Africa regards infrastructure programme as key. South Africa is not alone in this thinking. It is useful to point out that government procurement in the European Union has been regulated and harmonised since 1970 and today accounts for more than €2-trillion.

In the United States it accounts for about $7-trillion annually. So, there’s a world body of experience that’s out there and available. In the way we have implemented it, we don’t claim to be perfect and I would like to think that we have a remarkable capacity for self-criticism and, more importantly, self-correction.

And you have no doubt followed the President’s frank progress report in early August on the progress that we have made since the February State of the Nation Address. Implicit in that was the acknowledgement that the best laid development plans can be derailed by factors within or outside our control.

And primarily that is the aftershock of 2008 crisis. But let’s give ourselves credit for being able to cushion South Africa from the worst ravages of that crisis. It was done through astute domestic financial and fiscal discipline.

Nevertheless, the 5% growth rate target for 2019 is unlikely to be realised.

The challenge for us is to say how close to that can we get to that percentage.

This scenario can either bog us down or give us new energy and determination

to catapult ourselves to seek out new opportunities.

So how then do we build that inclusive economy? In KZN and as well as nationally, public works is central to the realisation of that vision. We believe that the roll-out of the infrastructure will provide tremendous opportunities for your organisation and for your members.

Infrastructure and economic growth are inextricably intertwined. Three years ago Public Works in this province was mandated to become the implementing agent of choice for all government departments. You’ll understand that all departments have their budgets.

The Department of Health for clinics and hospitals. The Department of Education for schools and other facilities as well other departments. The Department of Economic Development for facilities.

And COGTA (Cooperative Governance and Traditional Affairs) at local government level for a whole range of infrastructure. And we took a decision that Public Works within government must formulate the implementation of all that infrastructure.

Until then the various departments would use various private sector operators, even semi-private operators, to do that. We took a decision that Public Works must become the implementation agent of choice.

Currently, we are about 70% of that target.

So we don’t only deliver infrastructure such as office buildings, schools, clinics and hospitals, but we also now involved with the coordination and longer-term planning. We’ve now set up a provincial infrastructure work group. This is very

exciting work that seeks to achieve coordination of all infrastructure delivery in the province.

For the first time we not only have provincial departments but also key stakeholders Eskom, Transnet, Water and Sanitation, Umngeni Water and the Provincial Planning Commission serving in one work group.

For those of you in Gauteng we are not shy to say we don’t want Transnet or any of the other state-owned enterprises that have their head offices in Gauteng implementing and spending billions of rands in KZN but parachuting in without coordination with the local people. We are quite firm about that. We want local people to get their fair share of that particular cake.

Of special interest to you will be the property management dimension of our work. That is to provide and facilitate the provision of accommodation and management services to our client departments through planned property lifestyle.

These are basic things but it is a skill that needs to be understood and developed. How to require property?

How to maintain it? And how to dispose of it in the best interest of the state or any department that owns it. Skills around land valuation, fixed assets registers, property rates.

All these are skills of property management that we sometimes take for granted and then we need to build that skills base.

This also includes the lease of buildings.

Now, if you want to speak about an opportunity in that terrain. In KZN we spend about R270-million a year paying rental to private land owners across the province. And we’ve been

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rightly criticised both within our own organisation and the sector.

Not so much the private sector but within the sector. Voices have been asking why are we doing that? Who are the beneficiaries of this massive spend?

And the truth is that there is a very small group property owners, a cartel if you like, who have closed that market

taken the decision to build a government precinct in Pietermaritzburg which will locate all the provincial departments in Pietermaritzburg even those that might be elsewhere. Linked to that is the building of a new provincial legislature.

as planned for is short-sighted. In fact, we are quite pleased that soon it will be compulsory for property owners to set aside 7% of their operational budget for maintenance. And there will be monitoring.

So, the legislature plus the government precinct will be a project that will be in excess of R5-billion. We don’t have the

Let me just say a little bit about human settlements. We’ve been in a good space for the past three years. In fact, for the past two years we’ve been the bestperforming province in the country. We produce just under 30 00 houses a year.

But we won’t continue achieving this number.

We’ve also been building bigger and better houses.

But those houses cost more as the budget shrinks and there is no real competition. These things go on tender, of course.

There is no effective competition because it’s just a few groups of families sometimes that own the properties that can be available for that tender that went out.

So attempts to transform have been difficult. In fact, I would go far as saying they’ve not produced effective results. From national Public Works there’s been an initiative to say let’s have something radical to show our determination to break this.

And the initial seriously prohibiting factor was that to finance an operation like that you will need to go to the bank and the bank would say you’ve got bankable lease and yes we are prepared to put money behind you. Apart from the other credit criteria, of course. The difficulty was that we would by and large not know a lease that’s more than five years.

So we now taking the decision that we’ll go more than five. We’ll go with 10 years and even 12 years at times so as to give black entrepreneurs something really feasible to go to the bank with as a bankable lease agreement.

There is one contradiction in our approach because we also taking the decision that it doesn’t make sense for us to be continuously spending R270million a year renting property from the private sector. It’s a long-term thing but it doesn’t make sense. So we’ve also 34

money to built on our own steam. We will follow a public private-partnership model. And in that will be enormous opportunity for the practitioners such as yourselves.

Of course, it’s a question of linkages and synergies with the players that can make that kind of deal happen but we are determined that the final model must be something that doesn’t result in one big company becoming rich.

It must be a model that brings onboard a broad base of emerging entrepreneurs.

Let me just say two things not directly related to Public Works. As property practitioners we need to articulate more strongly not just the need but the opportunities available in operations and maintenance.

Not only must you be able to manage property you must be able to maintain that property. And I’m sure there is a scientific way to determine the percentage of your operations budget that is required to maintain a property effectively as a sustainable asset up to 50 to a 100 years.

Some might even have a longer timeframe. Within the government sector we’ve conceded that we have not given that enough attention. Even at local government level, there is a temptation to raid the maintenance and repairs budget whenever resources are short. But that’s being short-sighted.

Whether it’s in regards to roads or to a building not using maintenance funds

It’s not sustainable. Budgets have been reduced firstly. We’ve also been building bigger and better houses. But those bigger and better houses cost more as the budget shrinks. There is building cost escalation that is roughly around 6% a year. So we need debate what a more sustainable model would be.

There are two levels of opportunities I want to mention which are directly relevant to your field of operation. The first is the gap market. That refers to those who earn more than R3500 a month and do not qualify for the RDP house and nor a bank bond to be able to built a house or buy a house.

Two incentives are in place to address this challenge. The first one is FLISP (the Finance Linked Individual Subsidy Programme) which is a subsidy on a sliding scale for those who earn up to R15 000 a month.

So, if you are the lowest end of this scale, your subsidy could be as high as R110 000 for a housing unit that costs R400 000. On average even if it’s a R50 000 subsidy that’s like having a 10% deposit on a house which should be a seriously mitigating risk factor in a normal credit application with the bank.

The other incentive that we as KZN are seriously pursuing is through identification of all our land holdings.

We advertised already and prepared to do a new advertisement where we saying you as a property developer we inviting you to come with your own land

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or even with land that we own so that you explain the type of development you can put up within the gap market range.

National Development Plan and the National Housing Policy that we must build these rental components because that’s the trend all over the world.

In fact, it’s even beyond that market range if it’s broadly commercially viable. We even encourage mixed-use developments. And we are prepared to negotiate and incentivise terms for the land. It’s not for free. Some of the land we have is pretty well located that could capture the market’s imagination.

We are worried about government subsidised space in terms of this rental social housing. There’s too easy a tendency for people to mobilise under the slightest of pretexts and boycott the rent and so on.

The other category where there is opportunity is in the rental market.

So far, the state-driven rental market is implemented by social housing institutions. They are, by and large, Section 21 not-for-profit companies, but it requires a serious business skill to manage them. In this province, for example, we’ve had SOHCO, which is a national player with several projects.

We’ve got First Metro Housing, which might be biggest in the province. And then we have Msunduzi Housing.

Between them they probably have about 6 000 or 7 000 units under rental management.

With that social housing programme its effectively subsidised rental because you get an individual subsidy from the provincial department. This is a serious of opportunity. In fact it’s part of the

People would claim that the arrangement is rent-to-buy and create all kinds of pretexts for starting a rental boycott to create pressure. We have to hold firm on the disciple of that.

Otherwise it threatens the entire social rental sector.

In fact, in one case we literally had a hijacking of a building with 330 units.

A criminal syndicate started with the boycott and afterwards took over and started collecting rentals.

We took a firm stand and said we not gonna allow it. The project belonged to SOCO. They used the legal space. Very creatively. One would think these are genuine cases where they are fighting for a better life for the poor. Right up to the Constitutional Court where the eviction order was confirmed.

And when we had to implement the eviction order we literally faced

petrol bombs. But we had to take a strong stand on that because if we undermine the discipline of the rental system we are going to undermine that whole sector as far as government’s involvement is concerned.

The other space where opportunity exists is the land generally. Not just land for a specific housing project. We are open to suggestions to how state land can be used as a catalytic way for economic development.

We also want to use this to talk to our transformation agenda. We are busy establishing some base lines on what we are going to measure ourselves.

What is the percentage of developments owned by black practitioners? What is the baseline now? What is our target for the next three years and so on and so on.

So let me conclude with a final word on the government precinct in Pietermaritzburg. Until that happens there will still be space in the property rental market. We want it to be a catalyst for the development of the city as whole. It’s a pretty historical location.

No doubt this project will give tremendous boost to the construction and property management industry and I urge you to be alert to the opportunities that will flow from that. I thank you and wish you well.

A example of social housing

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A group of high school learners had a great time interacting with SAIBPP officials as part of career day, a legacy project of the organisation

A convention to remember Delegates embrace message of exploring for opportunities on the continent

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SAIBPP honours stalwarts of the property industry SAIBPP awards are given to individuals who have contributed towards the advancement of black property practitioners in South Africa through their outstanding career achievements.

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Delegates benefitted from enlightening presentations after a round of golf

etween November 4 and 6, the South African Institute of Black Property Practitioners (SAIBPP) held an annual convention at the Southern Sun Elangeni Hotel, Durban under theme “Advancing property practitioners beyond borders”.

A total of 180 delegates attended the conference.

Before the convention kicked off, a golf day was held during the day. This was followed by a welcome networking cocktail at Elangeni Hotel in the evening.

At the convention the following day at the hotel’s conference hall, a clear picture emerged of a continent experiencing strong economic growth, where a number of investment opportunities await property practitioners who are intrepid and visionary.

A new initiative at this year’s convention is the SAIBPP legacy project that is designed leave a lasting impact in the community through education. Thirty learners from JL Dube Secondary in Nanda and 20 learners St. Frances College in Mariannhill were invited for a career exposure afternoon that saw them hearing from property practitioners about various careers in the property field.

On November 5, at an Annual General Meeting, Nkuli Bogopa succeeded Thomas Matlala as president of SAIBPP and Lynette Ntuli was appointed Deputy President.

Then a gala dinner was held at Inkosi Albert Luthuli Convention Centre where awards were handed to various SAIBPP members. All in all, the SAIBPP Convention was a success and delegates left inspired to look for business deals on the continent.

Also honoured are property companies that contribute to transformation of the property sector.

1. Isithwalandwe Award: Molly Gallant, Solly Mboweni, Tshepo Makhudu, Jacob Molefe, Gugu Mazibuko, Zibu Kganyago, Lydia Ikaneng, Nomafu Mbanga - Buthelezi 2. Isithwalandwe “Special Recognition” Award: Xolani Qubeka and Thoko Didiza 3. Masupatsela Award (Pioneer): Keillen Ndlovu 4. Queen Ntantisi (Individual Excellence): Zola Ntwasa 5. Phangani Award (Leadership): Stella Sigcawu (Posthumously) 6. King Shaka Award (Individual Excellence): Kapei Wa Phahlamohlaka 7.Tshanduko Award (Corporate Leadership in Transformation): Pareto Limited 37

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Designing Africa’s landscape SVA International drives transformation of the architectural sector and plays a meaningful role on the continent

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holo Makhaola, an associate and architect at Stauch Vorster Architects (SVA) International and a member of the South African Institute of Black Property Practitioners (SAIBPP) board, is passionate about spreading knowledge about the ins and outs of the architectural field to potential entrants, usually high school learners or students at various tertiary institutions around the country, who are hungry for such awareness so they can make informed career choices.

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For the past year Makhaola has been Chairman of SAIBPP’s Learning and Growth Committee, which seeks to “be a bridge between students and the built environment profession” and does this by arranging events in which various members of SAIBPP talk to the students about their careers and how youngsters can be successful in the built environment.

At the recent annual SAIBPP Convention in Durban, Makhaola

addressed learners from different schools who had been specially brought in to learn about the built environment.

“While I have an obvious bias to the architectural profession, it is important to ensure that potential entrants into our industry are given exposure to all aspects of the built environment.

It’s crucial that new entrants into our industry understand the interaction that happens between clients, consultants and contractors and how one is able to create value through these

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relationships,” Makhaola says. Exposing youngsters to this knowledge paves the way for the discovery of future talent that will grow the architectural industry and, most importantly in the South African context, lead to its transformation. SAIBPP, a lobby organisation that has been championing change and inclusion since 1996, is therefore a perfect platform for Makhaola, and he sees the immense value of flying the architectural flag within the organisation.

“SAIBPP is an extremely important platform that promotes transformation within the built environment as a whole. My intention is to form strategic partnerships with the voluntary and mandatory associations in our industry to bring the transformation agenda to the fore in all activities they participate in,” he says. “The reality is that the architectural, urban design and interior design professions are not representative of the demographics of our country.

We need to understand the prohibitive conditions that lead to this challenge and tackle them at the grass-roots level.”

Genuine push for transformation

Fortunately, SVA, which was established in 1943, has a keen interest to drive transformation. For the practice, it’s not just about designing and implementing projects of various function, form and scale across the continent, but also empowering its workforce to become assets. Staff members are encouraged to attend conferences and courses to sharpen their knowledge, contributing to the practice’s consistently high standards.

In the South African environment, the practice has been structured for many years around a strategy of providing maximum opportunity to previously disadvantaged staff members, resulting in the achievement of BEE ratings complying with the Construction Industry Charter guidelines and an anticipation of improved ratings.

SVA International embarked on this

Tholo Makhaola, associate architect at SVA International and SAIBPP board member

transformation journey not just to tick boxes or window-dress but to be a relevant and responsive firm that genuinely responds to the socioeconomic environment around it. The results of this push for transformation are phenomenal.

Recently, Nyami Mandindi was appointed to head the SVA board as part of important changes under way within the firm. A quantity surveyor by training, Mandindi brings vast expertise to her position as chair. Her achievements at a senior executive level include being CEO of Intersite Property Management Services and being involved in the transport infrastructure planning and investment leading up to the 2010 World Cup in South Africa.

Furthermore, Mandindi is a recipient of the Women’s Property Network Five Star Award and she serves on the boards of Denel and Acucap Properties.

Mandindi’s appointment as SVA board chair is yet another milestone in SVA’s transformation drive. It translates to black representation on the SVA board

Nyami Mandindi, new chair of the SVA International board

increasing to 67% and that of black women reaching 33%. The firm’s commitment to broad-based black economic empowerment has also been demonstrated by the recent introduction of an employee share ownership scheme. “The ownership restructuring scheme has resulted in SVA’s effective black ownership and control increasing to 51%. This makes SVA one of the largest black-owned architectural practices in South Africa,” says Garth Hamilton, Managing Director of SVA International.

Makhaola can certainly notice the changes around him. “SVA International has gone through a long journey of transformation since I joined,” he says.

“The organisation has always had a keen desire to effect genuine transformation and not take the ‘quick fix’ route that is more at ‘face value’ and selfishly focuses on an organisation and not its staff.”

He says at the core of SVA International’s transformation strategy is a desire to be a company “that is

“The ownership restructuring scheme has resulted in SVA’s effective black ownership and control increasing to 51%, making SVA one of the largest black-owned architectural practices in South Africa.”

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reflective of the country’s demographic by trying to balance the unfortunately low number of black and female architectural graduates coming from our tertiary institutions”.

It’s a long journey that will definitely bear fruit in the coming years. “The transformation of our industry is not easy and will not happen overnight, but we believe that if we set short-, mediumand long-term goals and stay true to them we will be able to effect meaningful change,” Makhaola says.

A strong African player A member of the GIBB Group, SVA International has a long history of running projects throughout the African continent. In addition to having a presence in major South African cities, SVA has offices in Namibia, Mozambique and Mauritius. In all the markets where it operates, SVA believes in an integrated approach to architectural planning and adhering to the imperative of sustainable urbanism and building design, taking into account the proven impact that urban systems and buildings have upon local and global ecologies.

As a rule, the practice aims to design low energy-consuming environments and buildings, which provide efficient and comfortable surroundings, reducing energy costs and eliminating health risks.

This provides clients with buildings that are functional and flexible, with the ability to be fully adaptable to present and future technological changes.

Being a member of the GIBB Group, following a merger between SVA and 40

GIBB Engineering, SVA International has greater capability to compete on the continent. The firm is involved in a range of large continental projects – from master planning and urban design to the design of resorts, hotels, luxury residential estates, large office developments and retail developments.

“Through our relationship with GIBB, we are a unique African multidisciplinary concern that offers a ‘onestop shop’ solution to our clients, which is what most of them prefer,” Makhaola

“SVA seeks to unlock opportunities on the continent that reflect each city’s ambitions and aspirations.” says. “We are the biggest African-owned multi-disciplinary competitor in a landscape where the majority of former South African-owned firms have been bought out by international firms.”

Going beyond SA’s borders SAIBPP’s call for South African property practitioners to beyond being inwardlooking and seek greater opportunities in other African markets resonates with SVA’s strategy. It’s what the firm has been doing for almost 20 years.

Today, that experience gives the firm an advantage. “Through our experience we are equipped to navigate our way around numerous areas on the continent where our competitors are only entering now,” Makhaola says. But what type of business engagement does SVA seek with the rest of the continent? “SVA seeks to

unlock opportunities on the continent that reflect each city’s ambitions and aspirations. We want to meaningfully change African cities to become a representation of who they aspire to be and not for us to impose our aspirations on them,” Makhaola says.

At the SAIBPP Convention in Durban various speakers highlighted the need for thorough homework when it comes to continental expansion. SVA also believes that “there are always new lessons to be learnt” when venturing to invest into the continent. “Each country and region presents its own challenges, constraints and opportunities. SVA always strives to partner with like-minded local practices in each area we work in. This helps to gain an understanding of the local conditions as well as initiate a transfer of skills and knowledge,” he says.

“Working across the continent has taught SVA to acknowledge and respect the varied local cultures we encounter, and to value what we as South Africans can offer to our fellow Africans.”

As we shape Africa’s landscape through an inclusive design-led process, SVA International will continue its commitment to lead, build and design.

info@svarchitects.com +27 (0)21 421 4276 +27 (0)21 425 1119 www.svarchitects.com

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Picture: Johannes Dreyer

BUSINESS SHOWCASE

Neo Mokhobo, Urban Kraal founder and CEO 42

SAIBPP | VOL 2 BUSINESS SHOWCASE

Exciting times ahead Urban Kraal is taking great strides in the property industry

By Staff Writer

N

eo Mokhobo is a dynamic head of Urban Kraal, a boutique property development company that firmly believes in placing people’s needs first.

of Dream Station, a design and branding company and the brief I provided was for them to come up with a name that represented the essence and vision of the business I wanted to build.

Created in 2010 after Mokhobo left full-time employment at Investec Property, Urban Kraal partners with leading professional consultants to help transform landscapes, spaces and lives.

Something that harnessed a strong South African heritage and identity of where we come from as black people, but yet be a pioneer and agent of change for transformation, wealth creation and entrepreneurship among young black property practitioners of today and tomorrow.

Urban Kraal, is quite active in the development of residential rental spaces: affordable housing, student accommodation and social housing.

In addition, the company also dabbles in commercial development – retail, offices and industrial – as well as offers corporate real estate solutions such as strategy formulation, feasibility studies, asset management and negotiation support. It’s a young company on the move.

What’s your position within Urban Kraal?

I am founder and managing director, with majority ownership in the business.

What informs the name Urban Kraal?

At the time, I had employed the services

The look and feel of the brand identity speaks to fresh, dynamic, young, progressive and those interested doing things a bit differently.

What makes Urban Kraal unique in the property sector?

Firstly, it is black female-owned and managed, which is a rarity within the property development space in South Africa.

I place emphasis property development, as opposed to property management, ownership and/or construction, which is a separate discipline in and of itself.

Secondly, our value drivers are focused around using property development as a

tool for meaningful social and economic transformation. We apply an innovative approach to property that balances investment returns with social impact.

What are some of the projects that you have worked on as Urban Kraal that give you the most satisfaction perhaps because of their uniqueness in solving a particular problem?

A concept proposal we did in collaboration with Boogertman + Partners called the Dobsonville Artisanal Food Market. This concept proposal is an innovative retail development to create a dynamic urban food market combined with traditional formal retail.

The innovative feature of this concept incorporates urban farming that would happen on the roof of the building, and the food produced through applying urban farming technologies would then be sold within the market, food retailers and restaurants.

Transfer of skills and training pertaining to urban farming would be passed on to the local community in support of food security. This is a prime example of combining investment returns achievable as with a traditional retail development; with the social return 43

BUSINESS SHOWCASE

aspects that include township retail development, job creation, skills transfer and solving the problem of food security.

Does Urban Kraal have a national footprint?

Although our offices are in Johannesburg, we are not limited to Gauteng, but are rather led by the merits of the project and opportunity, irrespective of where they are located. My mentor advises that from a management and quality control perspective, projects should not be located more than an hour’s drive from the your base location.

Therefore, depending on the business’s future growth, national expansion by way of having local offices are definitely on the cards.

What motivates you to strive for success?

It is important for everyone to ask what motivates them to do what they do. The answer to this question is different for everyone. Whatever is most important to you will keep you on the path of pursuing your dreams.

Making a difference in people’s lives and our country motivates me to strive for success..

What are essential elements in the provision of accommodation? Elements that contemporary developers need to always consider?

Within the affordable and social housing sector, which is an area of focus for Urban Kraal, location in terms of access to transport/transit nodes is very important. Other elements include rental affordability, design sustainability, access to employment opportunities, healthcare, retailing and recreational facilities.

Alternative building technologies that produce eco-efficient buildings are also a key driver of innovation. Urban Kraal firmly believes in placing people first, and providing the best value for its client 44

base, and those are its tenants.

Therefore, developing a superior product is only one aspect, but incorporating an efficient property management system that meets the needs of an ever-changing market segment and generation where technology plays a fundamental role in how we conduct our lives will be an important value moving forward.

You have a lot of partnerships with consultants, quantity surveyors, consulting engineers. What’s the trick to making these partnerships work?

Business is formed by building good relationships, and people like to do business with whom they like and trust.

There is no trick.

However, we pride ourselves in building relationships that are based on trust, transparency, honesty and, most of all, having fun while were at it. I feel very privileged to be able to work with some of the most astute, progressive and innovative technical professionals within the industry.

What are some of the hottest tips you can offer other emerging property companies such as yours?

Don’t focus on what makes you bigger or better. Rather focus on what makes you different. Seek to align your business aspirations to your primary values.

How does being a member of the Women’s Property Network help Urban Kraal?

The women compliment in this sector is still very small, and in particular black women. The Women’s Property Network allows us female property practitioners to come together in a forum that allows us to develop networks and exchange information in order to learn and grow from each other.

It is remarkable how the Women’s Property Network has grown in numbers over the past few years, and I am excited

about the bigger role women will play in the industry moving forward.

Where do you see Urban Kraal in the near future?

I see Urban Kraal as having developed a sizeable portfolio of properties, and through our holistic living model approach, having contributed towards creating sustainable human settlements and environments, which, in turn, positively contribute towards healthy, functioning communities and a robust economy.

I also see Urban Kraal as being one of the pioneers for transformation within the South African property industry, providing an engine for growth and development among black property practitioners and entrepreneurs.

Would you consider going beyond SA’s borders to other African countries to seek opportunities?

Absolutely. Having done extensive travel in West Africa over the past three years, more specifically in Ghana and Nigeria, I have become aware of the incredible property development opportunities that exist both within the commercial and residential spaces.

Africa, as an emerging economy provides huge expansion opportunities from a global perspective due to large migration of people from rural to urban areas, the growing middle class, and the fast-growing young population. I believe once the risks of doing business are identified and mitigated accordingly, the return on investment from African economies significantly exceeds those achievable in almost all developed markets.

It is a very exciting time indeed to be young, economically active and African in this era. The business possibilities on our continent are endless!

Haroon Jeena, Group Executive: Commercial at Airports Company South Africa

Picture: Johannes Dreyer

BUILT ENVIRONMENT NEWS

Mongezi Mnyani, NHRBC CEO 46

SAIBPP | VOL.2 BUILT ENVIRONMENT NEWS

Embracing new ways of building The NHBRC endorses innovative building techniques in order to fast-track housing delivery

By Phakama Mbonambi

U

nder the inspiring leadership of Mongezi Mnyani, the National Home Builders Registration Council (NHBRC) continues to be an integral part of the built environment.

Established in 1998, the agency falls under the ambit of the Department of Human Settlements, and plays a crucial role in helping government deliver quality houses.

The NHBRC fulfills this role by holding builders to high standards of construction ethos, and forces them to register for them to qualify for any construction work, whether it’s low-cost or upmarket projects. It then deploys its army of inspectors during and after construction in order to ensure that homeowners get the houses they deserve, peaceful houses they will enjoy living in as they raise their families.

Given its commitment to assurance of quality, the NHBRC can rightly be viewed as the last line of defence for homeowners.

A new era is fast unfolding for the NHBRC. To help government deliver on the vision of providing 1,5-million housing opportunities by 2019, the agency passionately embraces the use of Innovative Building Technologies (IBTs) in the construction of houses.

IBTs offer a cheaper alternative to construction and promise to start a revolution in the housing sector. If houses can be built cheaply and are still

of the highest possible standard in terms of quality, many enterprising builders or developers would enter the market and help to reduce the country’s perennial housing backlog.

Mnyani is excited by the possibilities that IBTs offer and the fact that even the Minister of Human Settlements, Lindiwe Sisulu, supports IBTs. “We have motivated to the minister that the achievement of 1,5-million housing opportunities in the next five years will be possible if these technologies are introduced, not just bricks and mortar.

She is quite happy about IBTs,” Mnyani says.

Showcasing IBT housing methods The NHBRC runs the Eric Molobi Housing Innovation Hub in Soshanguve in Tshwane. Another innovation hub is in the Western Cape. Both hubs showcase houses built using IBT methods. The hubs are ideal spaces for developers, manufacturers and suppliers to showcase their products. Housing innovations include construction methods involving the use of composite walls. These are walls that combine traditional materials with newer ones to create composite systems of concrete and reinforcing that allows for lower weight, making it easy to handle concrete wall panels.

Other exciting new building methods

involve walls comprising of 3D panels consisting of three-dimensional welded wire mesh and a built-in expanded polystyrene insulation core. The panels are erected over steel-reinforcing bars embedded in concrete foundations and are then fastened to one another with wire splice mesh. Concrete is sprayed on both sides of the panels to achieve the desired thickness (40mm-70mm).

This gives the wall a total thickness of 150mm with various types of finishes.

The result is a homogenous structure with excellent thermal and acoustic properties.

These are just a few of many types of IBTS that are being pioneered and presented to the NHBRC for approval.

But no matter how exciting or unique, these innovative building methods are stringently tested – just like how the NHBRC scrutinises any bricks and mortar structure. The agency leaves nothing to chance. That is what its mandate stipulates.

“We’ve seen that a lot of companies are coming to South Africa with these products. Some of these products have been approved by international associations, but when they are brought to South Africa we still subjected them to our own approval processes.”

For an IBT to be introduced to the market, it must obtain an approval certificate from Agrément SA, an 47

BUILT ENVIRONMENT NEWS

independent organisation that works closely with the NHBRC. Agrément SA primarily focuses on the certification of non-standardised or innovative building products through technical assessments that verify whether the products and systems are fit for purpose.

Agrément SA certifies products where no national standards are applicable and their certification process is performance-based. “Our comfort is that once Agrément SA has issued a certificate that means that product can be introduced into the market. The NHBRC then endorses this backing. Without the Agrément SA certificate, we don’t recommend any products,” Mnyani says.

While these technologies are exciting and certainly lower the cost of building and buying a house, Mnyani says, sometimes the fear of the unknown creeps in on the part of beneficiaries – perhaps too accustomed to traditional building models. “Of course, there’s some resistance, but we’ve seen pilot projects that have worked really well – not only on the RDP side, but on huge developments of upmarket houses as well,” Mnyani says. “It’s high time as

South Africa to use these IBT products.

These products are embraced elsewhere in the world.”

At the moment the NHBRC has its work cut out for it in terms of promoting the use of IBTs and making consumers comfortable to consider living in homes built with these innovative technologies.

As a result, the agency hopes to embark on an aggressive consumer awareness campaign in the near future. “One of the major initiatives we’ll do now is promote housing consumer education around these products so that people can

IBTs promise to offer a cheaper alternative to construction and would open doors to many innovators understand the benefits. These products promote energy efficiencies – in winter they are warm and cool in summer,” Mnyani says. “What must be borne in mind is that our major goal is to make a difference in the sector.”

A dynamic team Mnyani is confident campaigns to promote IBTs will succeed and that, generally, the NHBRC will continue to be a relevant player in the built industry.

The agency hopes to continue with other campaigns such as boosting the number of women contractors. “The NHBRC will remain a key entity but we have to remain relevant. We have to continue supporting the transformation agenda of government but also assist government to achieve its objectives,” he says.

“We have to continue ensuring quality, quality, quality and nothing else.”

Mnyani hopes that the NHBRC will continue to tap into the expertise of its internal staff. “We have a young team that is energetic, very competent from all sectors – from technical to finance to corporate governance. We’ve engineers and quantity surveyors who are part of that team,” he says. “Everybody is excited to work for the NHBRC. I’m quite happy to have a team that responds to challenges. I’m certain we won’t fail the minister on any housing issues, including the introduction of IBTs, and we won’t fail the sector as a whole.”

Building a new home?

Use a registered builder.

A registered builder is key to any building project. In line with the Housing Consumers Protection Measures Act, all homebuildings must be registered with the NHBRC and all new homes must be enrolled, at least, 15 days prior to construction. Enrolment affords you, the housing consumer, benefits such as a 3-month warranty cover against minor defects, 1-year warrenty cover against roof leaks and a 5-year warranty cover against major structural defects.

To verify if your builder is registered visit www.nhbrc.org.za

@NHBRC

NHBRCSA

Assuring Quality Homes

Toll Free Number: 0800 200 824 / Fraud Hotline: 0800 203 698 / Tel: +27 11 317 0000

48

NHBRC Print Ad (Magazine) .indd 1

05/09/2014 07:48

SAIBPP | VOL.2 BUILT ENVIRONMENT NEWS

The Eric Molobi Innovation Hub in Soshanguve, Tshwane, showcases alternative building technologies that can be used to eradicate housing backlog

There’s an NHBRC office closer than you think

Accessibility is an important operational point for the NHBRC. Our footprint in all 9 South African provinces allows us to carry out our core function as the Regulator of the home building environment. From builder registrations and home inspections to any other matter related to the quality build of new homes. So whether you are in Mthatha or Musina, our services are closer than you think.

To fi nd out more visit www.nhbrc.org.za

Toll Free Number: Fraud Hotline: Tel: @NHBRC

NHBRCSA

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0800 200 824

0800 203 698 +27 11 317 0000 Assuring Quality Homes

49 21/11/2014 13:32

FEATURE

Top African development projects A round-up of some exciting projects happening around the continent

Eko Atlantic City, Lagos, Nigeria

N

igeria is building a city – Eko Atlantic City – along the Lagos shoreline that will become an unprecedented financial hub in this West African nation that is Africa’s largest economy.

Showcasing engineering feat, Eko Atlantic City stands on 10 million m2 of land reclaimed from the ocean and is protected by an 8,5 kilometre long sea wall. This entirely new coastal city of gleaming modern high-rises solves the chronic shortage of prime real estate in the world’s fastest-growing megacity. It 50

is a focal point for investors capitalising on rich development growth based on massive demand – and a gateway to emerging markets of the continent. Selfsufficient and sustainable, Eko Atlantic includes state-of-the-art urban design, its own power, clean water, advanced telecommunications, spacious roads and 110 000 trees.

Eko Atlantic City will be aneco-friendly, world-class city. Once completed, the new modern city, which is being pitched as a place to work and live, will be the size of Manhattan’s skyscraper district.

Eko Atlantic City, which is already garnering a reputation as Africa’s Hong Kong, will be home to 250 000 people and employ another 150 000.

Eko Atlantic City not only provides vital space for people to live and work just off Victoria Island, but will soon become a beacon for international business and tourism – a global landmark and a symbol of Nigeria’s pride and prosperity.

SAIBPP | VOL.2 FEATURE

Meridian City, Tema, Ghana

M

eridian City will be a retail mixed-use development in Tema, Ghana’s fastest growing residential and industrial city on the Gulf of Guinea and Atlantic coast of Ghana.

The city, which is located 22km from Accra, has the largest seaport in Ghana

and is the country’s main port, logistics, and industrial city. It is linked by good roads and well developed infrastructure and is surrounded by many industries.

The Meridian City Mall offers 12 000m² of commercial office space, a 25 000m² retail mall, medical suites, restaurants, a casino and an internationally branded hotel. The centre

will be a modern regional retail centre aimed at the middle- to high-income earners.

Meridian City, which will be built over four phases, will be a place where people can shop, play, eat and work, and is expected to be Ghana’s first, privately developed mixed-use development.

Mall of Egypt, Cairo, Egypt

T

he Mall of Egypt is a five-star super regional shopping centre with a main shopping mall incorporating 160 000m² of retail space over two levels.

It also has an exclusive leisure centre

offering to complement the strong value fashion and lifestyle retail precincts with more than 400 shops, more than 50 food and beverage outlets throughout the mall, an open air plaza and a “Carrefour” hyper market. The mall will open in early 2016.

The Mall of Egypt aims to be a super mall dominating the western half of the greater Cairo metropolis. It is owned

by Majid Al Futtaim, a real estate developer which operates shopping malls in the Middle East and North Africa.

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FEATURE

I

n September 2015, Garden City was officially opened in Nairobi.

Touted as East Africa’s first integrated residential, retail and office development, Garden City is situated off the new eight-lane Thika SuperHighway, Northeast Nairobi.

The area is under-served from a retail perspective and is one of the fastestgrowing areas of Nairobi. It is estimated that 1.5-million people live within the immediate catchment, which is primarily a residential area.

Garden City comprises one of the largest retail malls in Africa (offering approximately 50 000m² of retail space), more than 400 high-end residential

Garden City, Nairobi, Kenya units, some 60 000m² of office space and a central park with an events stage.

its economic growth impact shortly after breaking ground in July 2013.

What’s more, Garden City will soon boast a business park as well as a four-star business hotel and a hospital.

This $540-million project is backed by leading sub-Saharan real estate investor Actis, in partnership with CDC Group and IFC, a member of the World Bank Group.

At the opening of Garden City, Michael Turner, Head of Actis’ Nairobi office, said: “Our vision for Garden City is to build a new and exciting address that meets the multiple needs of Nairobi residents. With the completion of the first phase and the addition of the Garden City Business Park, we are one step closer to this vision.

In common with other Actis projects, Garden City has sustainability at its core and will be the first mixed-use development in East Africa to gain LEED’s green certification. The project was awarded Vision 2030 status by the Kenyan government in recognition of

The new office park, targeted at Nairobi’s growing business community, will benefit from the huge range of dining, shopping and leisure activities at Garden City Mall as well as hotel and hospital facilities.”

The Residences, Nairobi, Kenya

T

his is a collection of 47 exclusive apartments and penthouses nestled on a generous 2-acre site along the prestigious General Mathenge Drive, Westlands.

The apartments are three bedroom, four bedroom, five-bedroom duplex and signature penthouses.

Construction started in January 2014 and completion is slated for January 2016.

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SAIBPP | VOL.2 FEATURE

Roma Park, Lusaka, Zambia

R

oma Park is a new multimilliondollar development in Lusaka, Zambia.

It is situated within a well secured area, strategically positioned close to the railway line and with good road networks to countries such as Malawi and the Democratic Republic of Congo.

the Lusaka Central Business District, and is also less than 3km from the Manda Hill and Arcades shopping centres. Roma will be one of the first private commercial properties zoned as an industrial park in Zambia, under the ZDA Act of 2006.

The ZDA Act is an initiative aimed at promoting the manufacturing sector in an effort to diversify Zambia’s economy.

The ZDA Act 2006 stipulates that qualifying investments within industrial parks are eligible for various tax and fiscal benefits.

Roma Park will encompass mixedincome residential and commercial properties, including a retail mall, box retail, restaurant and conferencing facilities, warehousing, industrial, and office space. Roma Park, which will be developed in two phases over a period of five to seven years, is situated within close proximity to urban growth points in the Lusaka suburbs, with prime exposure to the New Zambezi Road to the east of the site, which links Roma Park with the heart of Lusaka.

The development is less than 6km from

Two Rivers Mall, Nairobi, Kenya

A

t the heart of the affluent Runda, Gigiri, Muthaiga and Nyari neighbourhoods in Nairobi, Kenya, sits Two Rivers Mall, which opened its doors in October 2015.

This mixed-use development, which is located on 102-acre land, is tipped to be the largest development project of its kind in East and Central Africa.

Spanning 62 000m² – 12 000m² more than Garden City Mall – Two Rivers Mall is scheduled to open in March 2016. Two Rivers Mall will consist of medium-density residential homes, a five-star hotel, office blocks and a shopping centre.

The mall is being owned by Centum Investment Group and managed by

Athena Properties. The retail mall, which will occupy 11 acres and is already 62% let, will host several international brands, some of which will be flagships for Africa, and others for East Africa. The development is located within Nairobi’s diplomatic blue zone and is less than a 10-minute drive from the UN Complex, the US Embassy and the Canadian Embassy.

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FEATURE

Waterfalls Mall, Lusaka, Zambia

W

aterfalls Mall in Lusaka, Zambia is situated on the confluence of the Great East Road and the airport road, towards the east of the Central Business District.

The developer is Atterbury The envisaged first phase of construction of the 7 000m² development comprises 3 500m² for Shoprite and 3 500m² of additional shops and restaurants.

The first phase takes advantage of the prominence and visibility of the site, establishing the brand and setting the tone for a possible 26 000m² of future retail development.

Construction started in 2015 and is scheduled for completion towards the end of 2016.

A

Anfaplace Shopping Centre, Casablanca, Morocco

nfaplace Shopping Centre is a shopping centre near Casablanca in Morocco that offers easy and complete shopping experience. It is owned by Delta

54

International. Located on the seafront, on the Corniche of Casablanca, this urban shopping mall spreads over three floors, with more than 90 fashion brands, leisure, catering and services,

some for the first time in Morocco. The development forms part of a mixed-use complex, including offices, residential apartments, a Four Seasons hotel and hotel suites.

SAIBPP | VOL.2 FEATURE

Comandante Gika, Luanda, Angola

C

omandante Gika development is a business and residential centre, representing an investment of $470-million, in Luanda, Angola.

The development, which covers an area of 335 000m², officially opened in March 2014, and is the biggest property development project in Angola.

The project, which is located on the site of the former Comandante Gika military school, on the outskirts of the Alvalade neighbourhood, is a complex of office and residential tower blocks, a large and sophisticated shopping mall and a five-star hotel.

The three-floor shopping mall, called Luanda Shopping, features 208 stores, a hypermarket, six cinemas, restaurants and a car park.

55

T

he School of Construction Economics and Management offers undergraduate, honours and postgraduate degrees in the professional disciplines of construction management, quantity surveying, project management and real estate/ property.

The School also offers degrees at the Masters and Doctoral levels by dissertation and thesis only. Our programmes are accredited locally by SACPCMP, SACQSP and SACVPMP and internationally by CIOB and RICS. In addition to our teaching programmes, the School is involved in research activities covering a wide range of topics related to the construction and property sectors.

While most of this research is carried out by members of the academic staff, students are also involved in research at both postgraduate and honours levels through assignments and their research projects and discourses.

SCHOOL OF CONSTRUCTION ECONOMICS & MANAGEMENT Tel.: +27 11 717 7652/7676 Fax.: +27 11 339 8175 1 Jan Smuts Avenue Johannesburg ruth.billett@wits.ac.za samuel.azasu@wits.ac.za www.wits.ac.za/cem

Undergraduate Programmes The duration of our BSc in Construction Studies degree is 3 years followed by a one-year Honours which offers specialization pathways in either Quantity Surveying or Construction Management.

Thus, the undergraduate programme structure allows our Construction Studies students to make their choice of Honours degree at the end of their third year.

The duration of our BSc in Property Studies degree is 4 years and the program provides comprehensive education in the key business areas that enable promising real estate careers in the most vibrant real estate market on the African continent. The 4-year BSc property degree has been granted conditional accreditation status by the South African Council for the Property Valuers Profession (SACPVP).

The Construction Studies programme is accredited by the South African Council for the Quantity Surveying Profession (SACQSP); South African Council for the Project and Construction Management Professions (SACPCMP) and leads into honours degrees accredited by the Chartered Institute of Building (CIOB) and The Royal Institution of Chartered Surveyors (RICS). This means that graduates of our BSc Construction Studies degree are firmly on the track for membership of these professional bodies and are well positioned to become leaders and managers in their employment and professions.

Throughout all degree programmes, particular emphasis is given to the core competency areas and the significant issues currently facing both the construction and real estate industries particularly the application of digital technologies like Building Information Modelling as well as Financial Modelling using specialised software. The key issues around sustainability in the built environment are also firmly embedded into our teaching and research.

All of our teaching is supported by a virtual learning environment which enables our students to engage interactively with staff and their courses.

MSc Building ( Construction Project Management), MSc Building ( Property Development and Management), Postgraduate Diploma in Property Development and Management, MSc Building by research, PhD in different fields.

Short Courses on Construction Project Management COURSE OBJECTIVES: The programme has been developed to expand on our current offerings within the school. It is our intent to provide a variety of short courses on construction project management. With the expansion of South Africa’s infrastructure development in various sectors of the business, the provision of such course provides a niche offering to service the anticipated demand for world class professionals within the infrastructure area.

Who should attend?

The course will benefit Project managers, construction managers, engineers, housing officials; facilities practitioners, construction researchers, environmentalists, government officials, private corporations and all stakeholders in infrastructure, construction and property industry.

LIST OF SHORT COURSES • Construction Economics and Finance • Construction Law and Contract Management • Construction Planning and Control • Facilities Management • Human Resources Management in Construction • Management of Organisations and Change • Project Management • Research Proposal Development • Real Estate Market Analysis • Real Estate Investment Analysis • Commercial Real Estate Investments • Strategic Corporate Real Estate Management • Management of Distressed Properties For the real estate short courses, they can be used by National Diploma holders to access our Postgraduate Diploma in Property Development provided they can pass at 65% and above.

ADVERTORIAL

Invest in this smart, globally connected African city The city of eThekwini is an investor’s paradise with regards to infrastructural and property evelopment

E

Thekwini is the crème de la crème city of the province of KwaZulu-Natal, boasting mountainous and hilly typography, ravines and gorges. It’s the province’s largest city and third-largest city in the country after Johannesburg in Gauteng and Cape Town in the Western Cape.

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The eThekwini Municipality covers 2,297km2 stretching from Umkhomazi in the south, up to Thongathi in the north and to Cato Ridge in the west; and is home to about 3,5-million people.

With more than 100 wards, 68% of the geographic footprint is rural and under developed. The municipal area covers

leafy suburbs, such as Umhlanga, townships such as KwaMashu and Umlazi as well as some upgrade informal settlements, such as Cato Manor, and rural areas. The city of eThekwini is home to about 3.6-million people, and its port, the Durban Harbour, is regarded as busiest and best-

SAIBPP | VOL.2 ADVERTORIAL

Area-Based Management Over a decade ago, the eThekwini Municipal Authority embarked on a five-year area-based urban development programme to enhance service delivery, and address spatial and social inequalities in the metropolitan area. The projects are at the following five learning areas: Cato Manor: This inner-city residential area, which experienced major forced removals in the 1950s and 1960s, is now a focus of economic and social development.

South Durban Basin (SDB): The aim is to regenerate the industrial base, creating cleaner and greener industries, and improve the residential conditions of people in the area. iTRUMP: The initiative drives regeneration and urban management in the inner city.

Inanda, Ntuzuma and KwaMashu (INK): This programme is about generating economic activity as well as revitalising residential and community areas.

Rural and Traditional Areas: More than a third of the city is rural. The directive is to tackle poverty and bring about integrated development into these poor communities.

managed port in South Africa and the African continent.

EThekwini is a major tourism attraction – with an estimated 10-million domestic and international visitors per annum – thanks to its warm subtropical climate all year round, its vast, pristine beaches and coastal areas, and fine hotels and affordable accommodation in general, shopping malls, and many other worldclass attractions.

The city’s Chief Albert Luthuli International Convention Centre (ICC) is one of leading venues in the country and continent to hold events of global magnitude such as conferences.

Africa’s most culturally diverse city, which has an annual budget of R39,1billion, is run by a strong management team, giving savvy investors a perfect platform to plough in their cash in the municipal area with a guaranteed hope of having a return on their investment in the near future.

The city’s GDP was R273-billion and its per capita income was R55 727 in 2014, while its annual income per household was R195 757 and annual disposable income was R137 616 also in the same year; whereas eThekwini’s tourism spend was R12,1-billion.

Importantly, the unemployment rate

was down by -0.1 points to 15.2% from 15.3% the previous year, showing a slight improvement. In addition, eThekwini’s annual expenditure increased from R184,1-billion in 2013 to R202,2-billion in 2014, marking a 9.83% increase.

The vision of the city management is to make eThekwini Africa’s most caring and liveable city by 2030, which goes a long way in giving financiers interested in investing in property and infrastructure within eThekwini an even better reason to do so without hesitation.

EThekwini is focused on citywide investment, growing the economy and creating a better quality of life.

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ADVERTORIAL

New Durban Central Library

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he eThekwini Metropolitan Municipality will be constructing a state of the art central library to the tune of R300-million. The plan has been developed and we have the site, the Centrum site next to the workshop.

The city has already received R30million from the Provincial Library Services and $3-million donated by

Carnegie Foundation. The new library will become the headquarters of city’s libraries and heritage section.

The central library will position Durban as a strong learning city and it will regenerate the inner city. This state of the art library will be equipped with modern technology, a space to read, research hall and will even incorporate

a space dedicated to the recipients of the living legends awards.

The library will enable the citizens of eThekwini to have easy access to information, so that they too become part of the global information society.

The library will offer a wide range of reading materials for all age groups, including children and teenagers.

King Shaka International Airport

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pened in May 2010, a month before the kick-off of the 2010 Fifa World Cup, King Shaka International is situated at La Mercy, about 35km north of Durban.

This 2000ha facility has an runway of 3700m, a 24-hour operating capability, 6-million passenger capability, a cargo terminal and perishables centre, time-sensitive manufacturing and value-added logistics areas and an ICT platform and electronic trade.

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SAIBPP | VOL.2 ADVERTORIAL

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he Inanda, Ntuzuma and KwaMashu (INK) area is situated 30km north of the city centre and comprises a mix of formal residential townships and informal settlements which are home to approximately 800 000 residents. This area is the second largest agglomeration of poor neighbourhoods in South Africa.

Inanda, Ntuzuma and KwaMashu (INK)

There is a mix of developed and underdeveloped areas with many areas experiencing high levels of unemployment, social dislocation, poverty and crime, exacerbated by inadequate physical infrastructure and severe degradation.

In 2001, INK was identified by the President as a critical development node as part of the Urban Renewal Programme (URP). The INK areas have been the greatest beneficiary of the investment/intervention and have become the node’s economic hub due to its favourable location to the north of Durban.

example of the great high impact projects that are taking place in the precinct and is geared toward creating an estimated 25 000 permanent jobs.

This is a new town centre that bridges the gap between the communities of Phoenix and Inanda, Ntuzuma and KwaMashu (INK) and linking them into the urban system.

The areas have also benefitted from the planning and development work championed by government through the Urban Renewal and Area-based management programme.

The Bridge City Development is an

The new town serves as the social and commercial centre to an area housing a population of over 800 000 people, who have poor access to facilities and social services. It is a catalyst for economic growth and the empowerment of

surrounding communities by improving their access to public transport and opportunities to work, travel, shop and do business within the INK area, via a symbiotic relationship between the public and private sectors.

The INK project has identified the need to enhance human capacity and improved conditions through an intensive consultative processes that includes all stakeholders, including over 400 community-based organisations. A number of high impact projects, have already been initiated based on this highly participatory model.

uShaka Marine World

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his 16-hectare theme park opened its doors in 30 April 2004 in Durban. It has four sections i.e. uShaka Sea World, uShaka Wet ‘n Wild, uShaka Beach, and uShaka Village Walk.

It is located on the strip of land between the beachfront and the harbour.

The park was the first phase in the redevelopment of the famous Durban Point.

The theme park has positioned itself as a key attraction on Durban’s Golden Mile, offering a world of entertainment, excitement, fun and uniqueness. It has successfully brought together cultures from all over the African continent.

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ADVERTORIAL

Cornubia Integrated Human Settlement

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the first proposed sustainable and fully integrated human settlement in the region and has been declared a national priority project.

Cornubia, a Tongaat Hulett project, is

This mixed income development proposes 10 000 affordable/middleincome units, 15 000 subsidised units,

ocated on the north coast of KZN within the eThekwini Municipality jurisdiction, Cornubia is a strategic landholding situated within the northern corridor of the region’s commercial hub, Durban.

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ffering distant views of the Indian Ocean, Sibaya Lodge and Entertainment Kingdom is 7km from Umhlanga and a 15-minute drive from King Shaka International Airport.

The resort features a spa, fitness centre and restaurants.

The rooms are decorated in blue and white shades, and feature wooden furnishings. Each room has a sofa, desk and tea-and-coffee-making facilities.

Sibaya boasts a variety of restaurants and bars offering cuisines such as African, Asian and seafood. Boasting an array of facilities, guests can unwind in the spa, enjoying a refreshing swim in the outdoor swimming pool.

The resort also has a children’s playground and tour desk. Free Wi-fi is available and an airport shuttle can be arranged upon request.

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2.5-million m2 of commercial/industrial bulk, and a full suite of social facilities.

The estimated project yield is 24 320 residential units. The project is divided into five phases. Phase 1 was earmarked to be complete by March 2015 and Phase 2 by 2023.

Sibaya Casino and Entertainment World

SAIBPP | VOL.2 ADVERTORIAL

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he Port of Durban is South Africa’s premier multi-cargo port and is counted among the busiest ports in Africa, handling over 80-million tons of cargo per annum. The Port of Durban is the leading port in the SADC region and the premier trade gateway between South-South trade, Far East trade, Europe and USA, East and West Africa regional trade.

Port of Durban

It is the international commercial gateway to South Africa and is strategically positioned on the world shipping routes. It is one of the few ports in the world located in close proximity to the central business district.

The Port of Durban occupies a focal point in the transport and logistics chain with 60% of all imports and exports passing through the port, thus it assumes a leading role in facilitating economic growth in South Africa.

Dube Trade Port

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ube Trade Port is considered one of South Africa’s top 10 investment opportunities, and is officially declared as the Industrial Development Zone (IDZ) which is geared to promote foreign and local investment. The precinct is strategically

located 30km north of Durban.

This 2 840ha development is home to the state-of-the-art King Shaka International Airport and is ideally positioned 30 minutes from Africa’s busiest cargo port, Durban Harbour, and

90 minutes from Richards Bay Harbour.

Dube Trade Port takes advantage of its prime location as the only facility in Africa combining an international airport, dedicated cargo terminal, warehousing, offices, retail, hotels and agriculture.

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ADVERTORIAL

Durban International Convention Centre

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fficially known as Inkosi Albert Luthuli International Convention Centre, the Durban ICC was opened by the late SA president, Nelson Mandela in 1997. It was SA’s first international convention centre and has since played a pioneering role in attracting international events to our shores.

This world-class facility, renowned for its high standards of service excellence,

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he project has achieved worldwide acclaim from development specialists as a model for integrated development. It’s one of the largest inner-city urban development projects in post-apartheid South Africa.

Much of its success is attributed to a higher level of community involvement.

The project consists of the construction of low-cost housing, schools, libraries, community halls, roads, clinics and, recently, a mega heritage museum.

Cato Manor is home to more than 93 000 people. The area suffered greatly under apartheid government’s policy of forced removals.

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has staged some the world’s most prestigious and complex events. The multi-award winning centre has been voted “Africa’s Leading Meetings and Conference Centre” by the World Travel Awards 14 times in 15 years and has been rated amongst the World’s Top 15 convention centres by AIPC. The Durban ICC offers you the largest flat floor, column-free multi-purpose event space in Africa. Incorporating

the Durban ICC Arena and Durban Exhibition Centre, the complex offers 33 000m² of flexible exhibition and meeting space.

The Durban ICC offers you first-world convenience and a proudly African meetings experience. The centre is located 30-minutes from the King Shaka International Airport and over 3 600 hotel rooms are within a 10-minute walk of the Centre.

Cato Manor Improvement Project

SAIBPP | VOL.2 ADVERTORIAL

Integrated Rapid Public Transport

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o Durban! is eThekwini Municipality’s brand new integrated rapid public transport network, which aims to provide a flexible, safe, cost effective and seamless transport experience for the people of city. The project is worth R22billion.

The network will begin by linking public transport between Bridge City, Durban central, Pinetown, Umlazi and Umhlanga. The initial programme includes the design stage for the stations, station precincts and park and ride facilities and includes the planning and design in each station precinct such as improved lighting, signage, landscaping, street furniture and sidewalk and road design.

Go Durban! aims to operate for between 16 to 24 hours a day, with peak frequencies of five to 10 minutes and off-peak frequencies of between 10 to 30 minutes.

The system aims to fully integrate trains, buses and taxis across the city and surrounding areas, complete with train stations, bus shelters, dedicated bus and taxi lanes and pedestrian walkways

on feeder routes.Phase 1 is expected to be completed by 2018 and will comprise three Bus Rapid Transit routes and one rail corridor.

The three BRT routes are: C1 Bridge City to Durban CBD, C3 Bridge City to Pinetown, C9 Bridge City to Umhlanga Corridor and the rail corridor: C2: Bridge City and KwaMashu via Berea Road to Umlazi and Isipingo.

Umhlanga Ridge

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mhlanga Ridge is a new retail, office and residential node situated on a hill overlooking the Indian Ocean. It was largely developed on sugarcane land. Located on the ridge are Gateway Theatre of Shopping and other shopping centres, motor dealerships, a private hospital and many offices.

Umhlanga Ridge town centre is connected by a series of pedestrianfriendly roads, parks and public spaces.

Umhlanga Ridge is a stone’s throw away from iconic Umhlanga Rocks.

Website: www.durban.gov.za Tel: 031 311 1111

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Pictures: Belmond

TRAVEL

You can enjoy splendid sunset views at Belmond Savute Elephant Lodge

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s a property practitioner you are no doubt looking north of the South African borders and imagining the rich business pickings to be had. Perhaps, you are in the middle of fine-tuning your business continental strategy so you can take the leap of faith and explore the continent.

The continent may be fast marching to the drumbeat of modernisation that leads to the amazing growth of its cities, gleaming shopping malls and shiny office parks, but it has an enduring attraction – its wildlife. The continent’s wildlife is its heritage. So, at the end of those gruelling business negotiations about your continental expansion, how about an escape to nature to recharge?

There’s no better place to appreciate the nuances of our continent’s wildlife than at Belmond Savute Elephant Lodge.

Situated in the heart of the Chobe National Park in northern Botswana, this lodge is well-known for the large number of bull elephants in the region, leading to the place to be referred to as the elephant capital of the world.

Having come so far – the lodge is 679km from Gaborone and 913km from Johannesbug – you will no doubt be keen to find out if your trek has been worth your while. But rest assured because Belmond Savute Elephant Lodge has amazing facilities and an

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Luxury in the wild Belmond Savute Elephant Lodge allows you to savour the splendours of nature in privacy of your own balcony

By Staff Writer

efficient, friendly service to make you relax and have your every whim satisfied.

flows after long spells of dryness, Belmond Savute Elephant Lodge is an embodiment of refinement in the wild.

For starters, you will be pleased to discover that the lodge hosts a cluster of 12 luxurious and airconditioned rooms raised on wooden platforms. Each room has an outdoor lounge, shaded by a traditional thatch roof. The large, private decks are furnished with easy chairs and a hammock, which are ideal for viewing wildlife or for enjoying an intimate dinner in complete privacy.

Adding to the lodge’s attraction is spectacular game viewing of large herds of elephants in their natural habitat.

The endangered wild dog, lion, giraffe, buffalo, zebra, wildebeest, cheetah and hyena are also all to be found at Savute.

The rooms include a four-poster bed complete with mosquito netting, lavishly appointed bathroom and dressing room, a fully-stocked minibar and discreet airconditioning. Overlooking the Savute Channel, whose water mysteriously

Guests may also enjoy a traditional meal under the starry sky in the “boma” or visit ancient and rare San rock paintings, stopping off on the way to marvel at the small forest of African “upside-down” Baobab trees.

Furthermore, the Savute area is a great spot for bird lovers with over 250 bird species and most native to this area.

SAIBPP | VOL.2 TRAVEL

Each year in November migratory birds start flying back to Southern Africa to escape the cold winter in the northern hemisphere. Among the more exotic birds flying back are the Eurasian Steppe Eagle, the Lesser Spotted Eagle, the European Bee Eater, the European White Stork and the Woolly Neck Storks. You can witness this phenomon from the comfort of your deck at Savute Elephant Lodge.

The lodge also offers two safari drives per day in different areas of the Savute area in which you may encounter lions, wild dogs, leopards, cheetahs, hyenas, as well as rare species of animals such as Roan and Sable Antelope!

“When you arrive at Belmond Savute Elephant Lodge you feel like you could have landed on the moon. You feel so far removed from crazy busy buzzing city life. Time moves slowly, and you re-connect with your natural being, your natural rhythm and into the pulse and the beauty of raw and wild Africa.

And yet you are surrounded by the best creature comforts one could only dream to find in the middle of nowhere,” says Gabrielle Palmer Bolton, Communications Manager for Belmond Safaris.

Facilities at the lodge include: • Large central indoor lounge • Dining area • Outdoor “boma” • 20m swimming pool • Curio shop • Small reference library • Same-day complimentary laundry • Mini-bars • In-room safes • Complimentary Wi-fi 67

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