South African Property Review August 2018

South African Property Review

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August 2018

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REVIEW

Meet Ipeleng Mkhari Inaugural speech Journalism & Excellence Awards, Convention Report Back

SAPOA’s new Board Four new faces

Inclusionary housing Report released

Will we or won’t we?

Comment on land expropriation

August 2018

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from the CEO

Update on the City of Johannesburg’s Outdoor Advertising By-laws I

ndustry members represented by SAPOA and Out of Home Media South Africa, and the City of Johannesburg have reached an agreement to suspend the enforcement of the newly promulgated 2018 Outdoor Advertising By-laws until a court case challenging various aspects of the By-laws has been heard by the Gauteng Local Division. This agreement was made an order of court by Deputy Judge President Mojapelo on Tuesday 29 May 2018.

The Deputy Judge President, at the request of the applicants, met with the parties on the 29 May 2018. At the meeting, the parties entered into an agreement that was made an order of court: the Deputy Judge President ordered the enforcement of the By-laws to be suspended until such time as judgment is handed down in the application before the court. During the period of suspension of the operation of the By-laws, the 2009 Outdoor Advertising By-laws will remain in full force and effect.

The matter will be heard on 15 and 16 October 2018. In the application before the court it is contended that: ● The city failed to implement and follow proper public participation processes as it ignored important comments and objections raised by various industry members. ● Certain provisions of the By-laws are unconstitutional as they infringe certain rights contained in the Bill of Rights, enshrined in the Constitution. ● The city failed to obtain approval from the Minister of Trade and Industry, as required by the National Building Regulations, prior to promulgation of the By-laws.

The legal challenge is based on the following: ● The promulgation of the By-laws will immediately and retrospectively criminalise private property owners with unapproved advertising signs on their property. This will happen without the property owners having the opportunity to arrange their affairs to try to comply with the new By-laws.

It should also be considered that the same sanction does not hit the city itself which also, by its own admission, has hundreds of unapproved billboards on its property. ● The city, as a commercial role-player in the outdoor-advertising arena, is conflicted between its regulatory function and its commercial interests.

Therefore the regulatory control should be divested to an impartial decisionmaking body and not to an official. ● The enforcement measurements, which are severe, can be imposed arbitrarily by the officials playing the role of investigative, prosecutorial, adjudicative, and sheriff’s functionaries. ● Furthermore, the inclusion of the National Building Regulations Act of 1977 in the By-laws will require, in terms of Section 28(9) of said Act, that the Minister of Trade and Industry must approve these By-laws.

The absence of such an approval will render the By-laws void.

On the 1 June 2018, the City of Johannesburg released a statement that is misleading to the public. The media statements issued by the city in respect of the promulgation of the new By-laws should be viewed with

caution by members as they are misleading to the public and the industry players as the city failed to make mention of the court order issued by the Deputy Judge President.

The city stated that the By-laws give it the authority to: ● Remove “illegal or derelict” signs without having to approach the court for the appropriate relief. Private properties will attract rates penalties for illegal signs in terms of Property Rates Penalty law. ● The directors of companies, brand owners and media agents will be held personally liable for use of advertising space on illegal signs. ● Refusal to adhere to the By-laws will lead to possible arrests. ● Complying with the By-laws affords the “immediate communities [the chance] to be active citizens”.

The statement creates the impression to readers who are not aware of the order that the By-laws are now enforceable and will be enforced by the city during the next “couple of months”. This is not the case, as the application will be heard on 15 and 16 October 2018.

Best regards, Neil Gopal, CEO

Immediately after the SAPOA Annual Convention & Property Exhibition, I had the honour of attending the 2018 BOMA International Conference & Expo (which took place from 23 to 26 June 2018 in San Antonio, Texas) with newly elected SAPOA President Ipeleng Mkhari. This annual conference brings together best-in-class professional development, unmatched networking opportunities, and solutions to meet operational challenges and enhance asset performance.

FROM LEFT: BOMA Chair-Elect, Scott O. Jones, myself, Ipeleng & BOMA President & Chief Operating Officer Henry Chamberlain

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contents

August 2018

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Meet Ipeleng Mkhari Inaugural speech Journalism & Excellence Awards, Convention Report Back

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ON THE COVER The Mother City gains major accolades through V&A Waterfront Holdings

SAPOA’s new Board Four new faces

Inclusionary housing Report released

Will we or won’t we?

Comment on land expropriation

August 2018

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1 BCX Head Office. Architects: SVA International 2 Management Team 3 Menlyn Learning Hub. Architects: Boogertman + Partners 4 West Hills Mall in Ghana. Architects: ARC Architects

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From the CEO From the Editor’s desk SAPOA media statement SAPOA raises concerns on property rates President’s speech In it for the long haul SAPOA Board Meet the new SAPOA Board Legal update Registrar of Deeds held liable for damages after fraudulent transfer of property Report Flexibility: the key to inclusionary housing policies Property Sector Charter Transformation in the property sector Convention Report Back Excellence Awards It all happened down on the boardwalk: V&A Waterfront Holdings takes home major accolades Journalism Awards The 2018 Journalism Awards for Excellence One on one Durban: open for investment Green Building Council South Africa Why green building numbers keep going up MetroWatch Municipal spend everyone’s concern Howmuch.net The global export economy Social Off the wall South Africa’s broadband speeds vs the world’s FOR EDITORIAL ENQUIRIES, email mark@mpdps.com Published by SAPOA, Paddock View, Hunt’s End Office Park, 36 Wierda Road West, Wierda Valley, Sandton PO Box 78544, Sandton 2146 t: +27 (0)11 883 0679 f: +27 (0)11 883 0684

Editor in Chief Neil Gopal Editorial Adviser Jane Padayachee Managing Editor Mark Pettipher Copy Editor Ania Rokita Public Relations Officer Maud Nale Production Manager Dalene van Niekerk Designer Eugene Jonck Sales Pieter Schoeman: pieter@mpdps.com Finance Susan du Toit Contributors Businesstech.co.za, Johan Coetzee, Maud Nale, Phil Ruimte, Raul/Howmuch.net Photography Mark Pettipher DISCLAIMER: The publisher and editor of this magazine give no warranties, guarantees or assurances and make no representations regarding any goods or services advertised within this edition. Copyright South African Property Owners’ Association (SAPOA).

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

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from the Editor’s desk

Convention done and dusted The SAPOA Annual Convention & Property Exhibition 2018 saw our members heading for the warmer climate of Durban. It was attended by some 1200 delegates – networking opportunities abounded, colleagues and friends caught up, and we were enthralled by topics that were on trend in the property sector

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s the sun set on yet another successful SAPOA Convention and the delegates headed home, I had the pleasure of reliving the Convention many times over, and listening to each session again and again. What follows in this edition is an edited round up of the three-day event.

We welcome Ipeleng Mkhari as SAPOA’s newly elected President and wish her all the best for her tenure. There were four newcomers to SAPOA’s Board: Andrew König (Chief Executive Officer of Redefine Properties), Malose Kekana (Group Chief Executive Officer of Pareto Limited), Khotoso Matau (Managing Member of Lalela Properties) and Werner Mulder (Head of Sustainability at Attacq). I look forward to speaking to them in the coming months and bringing their property story to you.

The highlight of the three days for me was having surprise guest speaker Zakeria Mohammed Yacoob address us with his outline of the Constitution, the Bill of Rights (in particular Section 25), Mmusi Maimane venturing into the lair of the ANC, as well as Jeremy Cronin taking on South Africa’s much-discussed topic of land expropriation. The outcome of the public hearings that are being conducted around the country is bound to be interesting.

In recent months, President Cyril Ramaphosa has made headway with his publicly declared foreign direct investment target of US$100-billion. Saudi Arabia intends to invest US$10-billion, as does the UAE; and China announced a pledge of US$14,7-billion just prior to the BRICS summit. An amount of US$2,5-billion has been secured for Eskom from the China Development Bank.

South Africa is hurting again. We’re told there will be another increase in petrol price, and the opposition parties are calling for civil action.

The infographic we have obtained from OUTA illustrates just what our rand

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is paying for. Turning to Property Review, this issue is packed with the usual SAPOA activities and property sector information – and it is supplemented by our annual Women in Property publication, which this year enjoys greater support than ever before.

Looking ahead to the September edition, I will again be heading to the Eastern Cape to focus on property development in and around East London and Port Elizabeth.

Finally, we welcome our Sales and New Business Director Pieter Schoeman (pieter@mpdps.com) to the team. He joins us to look after SAPOA’s Property Review and Property Register’s sales. He will be contacting you all to tell you about our exciting marketing and advertising opportunities for the remainder of the year, as well as what we have planned for 2019.

Thank you for your support. We look forward to bringing you more pertinent, relevant and in-depth commercial property information.

Enjoy the read.

Mark Pettipher, Editor and Publisher

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SAPOA media statement

SAPOA raises concerns on property rates

Increase in overall rates bill On 26 June 2018, the City of Johannesburg stated that “The City of Johannesburg has taken a decision not to increase the property rates tariffs for 2018/2019.”

SAPOA is concerned that although the city makes the statement above, the city is not disclosing how the new values will impact on the rates. Although the tariffs remained the same, the values of most of properties have increased and will therefore result in an increase in monthly rates.

What the article is not saying is that, from July 2018, property rates will be calculated on the values in the new valuation roll (GV2018). The impact on the monthly rates account will be based on the new value for each property.

The GV2018 consists of 879 005 rateable properties within the boundaries of the Johannesburg Greater Municipality and is valid for the period 1 July 2018 to 30 June 2022.

The increase in monthly property rates for business and commercial properties on rates accounts in July 2018 will reflect the increase in the value of the property.

If the new value of a property is 50% higher than the old value, monthly rates from July 2018 will also increase by 50%.

The impact on residential properties is softened by the increase in the rebate threshold from R200 000 to R350 000.

The effect of the threshold will, however, be watered down where high property values are concerned as well as where lower-valued properties’ values were substantially increased.

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A further concern is that the City of Johannesburg is budgeting for an increase of 12,1% in the income from property rates for 2018/2019. This increase is more than double the CPI. Property rates tariffs could have been reduced if the increase in income was kept within the CPI. SAPOA has appointed its team of consultants, Rates Watch, to interrogate the municipal valuations and municipal rates and to provide an impact and analysis it will have on its members.

ratepayers themselves are proposing for their properties. Furthermore, if they do so, the city has confirmed that it will not initiate credit management processes against such ratepayers, provided that their accounts were not in arrears as at 30 June 2018.

Appeals

Earlier this year SAPOA raised its concerns with the City of Johannesburg relating to the manner in which the City will be implementing its new valuations, where such valuations are disputed by property owners. The city has subsequently released statements that have partially addressed our concerns. The current position is set out below.

The city has stated that “where an objection to the new property valuation is declined, any outstanding rates on the property arising from the valuation will become due and payable immediately”.

This statement does not address the situation of an appeal. SAPOA has informed the city of the legal position that, in the case of an appeal, the ratepayer is permitted by law to continue paying rates based on the old valuation or the ratepayers own proposed valuation until such time as the appeal is also finalised. We will be seeking confirmation on this from the city.

Objections

Interest

The new valuations have been implemented with effect from 1 July 2018, and are included in municipal invoices from that date. Where ratepayers have raised bona fide objections to their proposed new valuations, they may not simply stop paying rates on their properties completely. The city has clearly stated that, in such circumstances, ratepayers need not pay rates on the new disputed valuations but must at least pay rates based either on the old valuations or on the valuations that the

The city has also not addressed our concern relating to interest. We have pointed out to the city that, upon final resolution of valuation disputes, the law does not permit municipalities to charge interest on any shortfall in rates payable by the ratepayer. In a media statement dated 15 April 2018, Mayor Herman Mashaba stated that the city would be charging interest in such cases.

Subsequent statements by the city have been silent on this aspect. We will also be raising this with the city.

Disputed municipal valuations

media statement

Paragon Group companies not to be confused with Paragon Interiors in SAICA bribery allegations

Getting your brand noticed by South Africa’s leading property industry decision-makers

T

he Paragon Group’s Founding Directors Henning Rasmuss and Anthony Orelowitz would like to inform all of its clients that it is in no way linked to, representative of, or associated with the company Paragon Interiors.

This is a completely different and separate company that has absolutely no connection or affiliation with the Paragon Group.

“Paragon Interiors is an unrelated company,” says Rasmuss.

There has never been cross-shareholding or related interests between that company and any of the Paragon Group companies, its directors and shareholders.”

The Paragon Group specialises in both architecture and interior architecture. It consists of Paragon Interface Architects, which is responsible for interior design and workspace planning, under Director Claire D’Adorante; Paragon Architects, led by Orelowitz and Rasmuss; and Paragon Architects South Africa, under Director Thulani Sibande, which was recently awarded a Level 1 Broad-Based Black Economic Empowerment rating for 2018.

The Paragon Group is generally referred to as “Paragon” in the media, and in the local property and construction industry, as an umbrella name for the diverse range of architecture and interior architecture services it offers. However, this in no way infers a connection to Paragon Interiors, a totally different company.

With reference to the article published in the Financial Mail of 12 July 2018 regarding Paragon Interiors and the South African Institute of Chartered Accountants (SAICA), entitled “Has SAICA lost its way?”, the Paragon Group categorically states that the allegations contained therein have no bearing on the Group, or its constituent companies, namely Paragon Interface, Paragon Architects, and Paragon Architects South Africa. SAICA is not, and has never been, a client of any of the Paragon Group companies.

The Paragon Group is one of the leading architecture and interior architecture practices in South Africa, and has been involved in some of the most iconic projects that are helping to redefine the “new” Sandton financial and business hub.

The Paragon Group subscribes to the highest levels of business ethics and gender diversity. It is actively involved in skills development and training, and helping uplift the standard of debate in the local architectural community, in conjunction with a growing presence across Africa.

The payment of “incentives” to clients, or the pursuance of financial benefit through supplier incentives, “discounts” or “kickbacks” is explicitly forbidden in all business contracts of the Paragon Group, and has never formed part of the income model of the Paragon Group companies.

Each member is a leading player and decision-maker in the commercial property arena – and they use the South African Property Review as an extension of the SAPOA website and information platforms.

With a monthly average exposure of more than 8000 readers in print and 6800 online, the South African Property Review is a growing and recognised go-to source of important industry information, interviews as well as in-depth African and regional reports.

With a South African property market value in excess of R250-billion, SAPOA members control in the region of 90% of South Africa’s private sector commercial land and building stock, and manage the majority of property funds listed on the JSE.

The South African Property Review is available to the association’s leading members, and to the general public online via www.southafricanpropertyreview.co.za - as well as issuu.com, the online version is an exact copy of its print original and has on average over 13500 impr,bvessions a month, with an average read of upwards of six minutes per issue.

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For advertising opportunities and rates contact, t: +27 (0)21 856 1276 / e: pieter@mpdps.com For editorial enquiries contact, e: mark@mpdps.com

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President’s speech

In it for the long haul In her acceptance speech at the SAPOA Annual Convention & Property Exhibition, newly elected SAPOA President Ipeleng Mkhari talks about the empowerment of women, legislative rapture and her hopes for the future of SAPOA

“I

t is a great honour to lead this incredible body of property magnates, seasoned professionals and thought leaders of our industry,” said newly elected SAPOA President Ipeleng Mkhari, who is also the Chief Executive Officer of Motseng Investment Holdings, at the gala dinner of last month’s Annual Convention & Property

Exhibition. “I am following in the footsteps of giants as we begin a futuristic journey into sophisticated frontiers of property ownership, development and commercial property management.

“I attribute the honour to the great pool of industry players and all the pathfinders who have served SAPOA

Outgoing SAPOA President Peter Levett with SAPOA’s newly elected President Ipeleng Mkhari and CEO Neil Gopal

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with clarity, diligence and exceptional corporate leadership over the years.

I humbly accept the role of President of SAPOA, cognisant of the growing expectations on our association. I view this moment and the organisational destiny that goes with it as a privilege, and I do not take it lightly.

“On behalf of SAPOA, I would like to express gratitude to my predecessors, the outgoing President Peter Levett, the Board of Directors, SAPOA management, SAPOA councillors, and our sponsors and administrators for laying a solid foundation.

“I would also like to thank every member for their participation in the delivery of this futuristic Convention and the successful AGM, which will assist us in moving our organisation and industry forward. Owing to the dynamic and everchanging environment in which we find ourselves, it has become imperative that we strengthen and amplify our industry voices to the different stakeholders, state actors, partners and policy-makers within and outside of the property market.

“It is my resolve to lead the embracing of the imminent changes we wish to see within the property sector, which will ensure our relevance and sustainability well past my tenure as President. I fully accept the leadership challenge to work with you, as respected members and industry stakeholders, in defining our future in pointed, decisive ways, and to innovate, preserve and position this industry for growth.

“I was raised in Umlazi, and I completed my university education at Howard College.

This town is also the one in which I struck my first business transaction in 1998 (CCTV), later concluding a deal with Enforce security group in 2000 and Marriott Property in 2002. Those three transactions

President’s speech The land question

set me on a 20-year journey in the commercial property industry, which has been nothing short of exceptional in its learning and growth.”

The future of SAPOA “Member participation in SAPOA structures is critical. By associating with one another as individuals, we learn both to discern our common interests and to collectively mobilise individual resources to act on them through SAPOA, the organisation that we as an industry gave birth to 52 years ago. Its existence forms part of all of our DNA. As members, we can only make our voices heard through collective action, the success of which depends on members’ contributions of money, time, effort and skills towards a common purpose. Your support, be it through attending our events and educational courses or the payment of membership fees, helps us to succeed as an industry.

“There is absolutely no doubt in my mind that the future of the property industry remains as challenging and as beautifully rewarding as a contested terrain. Like most industries, commercial property is both vibrant and vulnerable to elements of legislative risk and economic uncertainty, especially because all our industrial capital investments stand on the future of the land discourse. I am inspired and convinced by the compelling reality that, throughout the ages, organisations of men and women in big business have overcome great economic adversity, often at great cost to their personal happiness, capital investment and family time – an investment that has seen this industry become the home of giants.

“The rapture over land ownership and property rights is inevitable, and should pose a challenge to all of us to ask ourselves more pertinent questions that will help overcome business and legislative risks.

Needless to say, our industry contribution to the recovery of the economy is vitally important, and we must continue to play an anchor role in the revival of the economy.

We need to be at the forefront of stimulating growth and broadening the skills base through improved, targeted training of young black participants – especially black women and young SMME entrepreneurs.”

The critical role of women “The development and elevation of black women will be a focal point of this term.

It is in this regard that I would urge all of you to place trust and investments at the centre of our industrial growth and the empowerment of black women – akin, in my view, to how NASA entrusted its lot to the incredibly talented Katherine Johnson, Dorothy Vaughan and Mary Jackson.

Without these three women who came from disadvantaged circumstances and triumphed over discriminatory laws, NASA would not have been able to put its first astronauts (Alan Shepard and John Glenn) into orbit, nor become the pioneering space agency it is today. It was their harnessed mathematical skills and genius that gave the space industry in the US the glorious industrial reputation it has across the world.

“Such lessons on how an industry explores innovation through advanced skills development and support for women and unlikely participants should propel our property industry. We need to train and support black women and young people so they can reach for the stars. That would be our greatest contribution to the industry and to the living legacy of Nelson Mandela, who opened up the space for us to have this beautiful, multiracial gathering of industry players.”

“It is also my view that we ought to be dynamic in locating solutions for the property industry, so we can avoid undesirable, punitive policy regulations that could jeopardise the cohesiveness of our developments and asset management.

Central to this reality, we will make our submission to ongoing Parliament public hearings on land expropriation without compensation. Our submission to the current Constitutional review on property and land rights must be as pronounced as it is watertight – because we should be as responsive to the growing demands of the society we serve as to those of the property industry.

“The burden of acceptance of our new reality lies in how quickly we embrace the imminent transformative settings as part of our ‘journey of discovery’. We need to perfect our industry in the face of possible contestation over policy differences, particularly on redistribution of land without compensation, land ownership and commercial property rights. This will require all of us to possess a great deal of organisational agility, business acumen, negotiating dynamism and corporate strength to withstand the jittering rapture of the market economy and still flourish in the business world.”

Legislative rapture vs transformation “I am mindful that my assumption of the role of President comes at a period of growing anxiety about the futuristic impact of the legislative environment, technological advancement and the state of our economy, and the effect this may have on our industry prospects.

Nevertheless, it is my contention that any well-thought-out change borne out of a fusion of capital nervousness and legislative sincerity to support our industrial state of readiness is good for business. The ripple effect of that is our growing ability as state and private partners to feed and sustain ethical corporate business within our industry.

“Contrary to our anxieties, if we all do the right things with the right intent, the policy developments could very easily assist us in identifying and seizing potential moments of golden opportunity.

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President’s speech

Therefore, to remain true to our organisational vision of being a nationally accepted leading property association committed to actively and responsibly representing, protecting and advancing our members’ commercial interests within the industry, we will have to provide tangible deliverables for our stakeholders to guarantee our capital investments and industry growth. We will have do it through industrial development packages that place us at the epicentre of economic growth as a responsible contributor to job creation, a dependable holder of inclusive industry opportunities, and the true voice of the property industry.

“The truth is that futuristic legislative rapture may easily disrupt our industry, and even prevent institutional cohesiveness as we know it today. We must tether our industry prospects to the possibility that, even if it rains, we are still on safe ground.

“Part of that transformative agenda will have to go beyond the fundamental debates and sentimentalism of ‘surface’ compliance to the Property Charter to real, practical change, relevant to the changing faces of our market economy.

We must meet the transformation targets that will continue to set our industry apart from all other industries in the economy. I would like to champion this with the same vigour and clarity that we place on the protection of our industry, its important role-players and the multiple benefits it offers us.

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We must accept that transformation in the South African economy is quickly becoming a non-negotiable business practice for sustainability.

“Concerted effort should be made to empower youth participation and services companies (especially by young entrepreneurs) through supporting packages to small businesses. In building a credible agenda, we will need to strengthen our research and training, as well as industry bonds with universities, technical colleges, municipalities and government institutions, to provide opportunities beyond the reach of SAPOA.”

Furthering SAPOA’s reach “It is my desire to improve our strategic stakeholder management to place SAPOA and its membership at the centre of all discourse relating to land ownership, property rights and commercial asset management in our country.

“Our media and marketing visibility will have to be enhanced, especially in terms of the data-driven social economy of today. We must be able to measure public sentiment towards property development, ownership and asset management – because leaving this essential social discourse to policymakers and economic and social actors will be detrimental to us, and to the sustainable growth of our industry.

“We will do so not because we are facing the end of times, but because we seek to be the proprietors of a more responsive future

– one in which we manage our reputational risk, capital investments and organisational business continuity pursuant to the interest of the property industry, as outlined in SAPOA’s mission and vision. The ultimate goal is to build new international networks and strengthen existing ones to turn SAPOA into a leading property authority in Africa. This will allow us the space to occupy a strategic location in global markets as the gateway to Africa’s changing landscape of property management.

“I am certain the outcomes of this Convention as well as our previous engagements with the state and other roleplayers will form part of the leadership focus for our state of readiness for the future.

“My term as the President of SAPOA coincides with many important national developments, including the scheduled electoral contestation among political parties, which may affect our sphere of business operations in the future. As a true patriotic warrior, I am committed to serve, contest, engage and protect our property territory – not because of the privileged beauty of being part of the change we want to see in our industry, but because I want to be one of the people who secure the future for the property industry in South Africa at a difficult hour.

“I remain hopeful that by the time my term ends in 2019, we will have found the answers that provide the greatest market value to our members by asserting our industry as one of the leading anchors of the economy. All this will happen amid sweeping, transformative ‘winds of change’, and the sounding of warrior drums will find us battle-ready, agile, responsive, innovative and eager to live up to the growing demands of our industry and society.

“I am certain that this drive and passion for the property market, combined with our collective and individual integrity, energy and commitment to the industry, will enable us to drive economic growth in this sector. After all, change must come from SAPOA, its leadership and its membership – and not to SAPOA. The practical beauty of SAPOA facing up to the inevitable changes is our unshakable resolve to walk the long walk to the shared future of property ownership in our country. We are in it for the long haul – and the future beckons.”

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SAPOA Board

Meet the new SAPOA Board Neil Gopal Chief Executive Officer of SAPOA

IPELENG MKHARI (President) CEO of Motseng Investment Holdings Ipeleng Mkhari established the first black woman-owned CCTV business, before founding Motseng Investment Holdings in 1998. She is now the company’s CEO. She has a bachelor’s degree in social science, has completed the Executive Development Programme at Wits Business School, and is an Archbishop Tutu Fellow. She is currently a non-executive director at KAP Industrial, Nampak, Attacq and SAPOA, and a Board of Governors member of St John’s Diocesan School for Girls.

DAVID GREEN (President Elect) CEO of ProAfrica Property Services (Pty) Ltd David Green is the CEO and founding shareholder at ProAfrica Property Services, which assists international and local corporates with all aspects of real estate strategy and other transactional activities throughout South Africa and sub-Saharan Africa. He has been a member of SAPOA since 1992, and is currently the Chairman of the SAPOA Convention Committee, a position he has held for several years. He started his career in real estate at Old Mutual properties, and has held executive positions at JHI, Marriott Property Services and the Pace Property Group. He is also the Chairman of Listed Acsion Property Fund and has previously served as the Chairman of the SA Listed Property Association. He holds a BA LLB degree and is an admitted Advocate.

PETER LEVETT (Immediate Past President) Managing Director of Old Mutual Property Peter Levett has been a Director at Old Mutual Property since 2000, and the Managing Director since 2011.

He is responsible for property investment and business strategy at Old Mutual, with property assets of about R20-billion. He is a qualified CA and has several degrees, including an MBA and a master’s degree in commerce.

ZOLA MALINGA Co-founder and Executive Director of Jade Capital Partners Zola Malinga is the Executive Director of Jade Capital Partners, a 100% women-owned investment company that she co-founded in 2013. She is a qualified CA, and was an investment banker, a Director in Property Finance at Standard Bank, a senior manager in the BEE Finance and Investment Division at Standard Bank, and Corporate Finance Consultant at Investec Bank. She serves as a non-executive Director on the boards of the Hospitality Property Fund, Grindrod Limited and Grindrod Bank. She is also an exco member of the Property Sector Charter Council, and past Chairperson of the Gauteng chapter of the Women’s Property Network.

NOEL MASHABA Executive Chairman: GladAfrica Group Noel Mashaba has more than 15 years of experience in business management, business negotiation, deal making, brand building, acquisitions and business development, all at an executive level. In 2017, he was appointed Chairperson of the SAPOA Ethics Committee. Prior to establishing GladAfrica, he participated in the establishment of businesses in the petroleum industry and consulting firms, constructing unique teams to manage complex projects. As the owner and founder of GladAfrica Group, Mashaba started as the Group CEO before becoming the Executive Chairman of the Group’s board.

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SAPOA Board

ANDREW KÖNIG Chief Executive Officer of Redefine Properties Andrew König, who is a qualified CA with more than 25 years of commercial and financial experience, was previously Redefine’s Financial Director. He is responsible for the day-to-day management of Redefine, for ensuring the board’s strategy is implemented, and for all aspects of regulatory compliance, corporate activity and reputation management. He is supported by three Executive Directors and mentored by the legendary Marc Wainer, Redefine’s former CEO and current Executive Chairman.

VUYANI HAKO Executive Head of PIC Properties Vuyani Hako boasts 23 years of property industry experience, of which 12 have been spent in executive management. He’s had exposure to the public and the private sector, and has worked as Managing Director at Metropolitan Property Services, Chief Executive Officer at Momentum Property Investments and Executive Director at Eris Property Group. His current role at PIC is that of Executive Head responsible for unlisted property investments. He holds a BSc in Town and Regional Planning from Wits and an MBA from the Stellenbosch Business School. In addition to SAPOA, he serves on the boards of the V&A Waterfront and Gateway Delta.

MALOSE KEKANA Group Chief Executive Officer of Pareto Limited Malose Kekana was the lead promoter during the acquisition of a 24% shareholding in Pareto Limited by Belelani Capital, and subsequently assumed the Group CEO position in the company. With more than 23 years of experience in the finance and banking industry, he started his career with Standard Bank, later joining Rand Merchant Bank. He was the founding CEO of the Umsobomvu Youth Fund. In 2016, he was appointed to the Pareto Board. He is currently serving as Chairman of Ithala SOC Limited, and has received several industry and professional association awards.

NNEMA BYRD Portfolio Manager at STANLIB Nnema Byrd joined STANLIB in 2014. She has 18 years of finance and property experience in the US and across Africa, covering private equity fund management, transaction structuring, property valuations, acquisitions, land development, asset management and property dispositions. She is a member of the CFA Institute, CFA Society of South Africa, the Economic Society of South Africa and the Women’s Property Network, and sits on the advisory board for the Wits School of Construction Economics. She has a degree in architecture and an MBA from the Massachusetts Institute of Technology, and is a CFA® charter holder.

KHOTSO MATSAU Managing Member at Lalela Properties Khotso Matsau has been involved in the commercial property sector for more than 20 years. He started off as a trainee broker with the Mortimer Group, and later joined Colliers RMS as a fully fledged broker. In 1999, he completed SAPOA’s Property Development Programme, then a postgraduate diploma in property development at Wits University. In 2003, he co-founded Lalela Properties, specialising in commercial, industrial and retail leasing transactions. He is the firm’s sole member. In addition, he is the Chairperson of the SAPOA office vacancy reporting committee (OVS) for the Johannesburg region. He continues to be of assistance to some SOEs, and mentors emerging property practitioners.

WERNER MULDER Head of Sustainability at Attacq Werner Mulder is currently responsible for sustainability at Attacq, and for the planning and development of Waterfall City and its infrastructure as a smart, urbanised and integrated city. His career started with Gencor in 1989 as an electrical engineer. His experience in large construction projects – first for Gencor and later for a leading retail bank where he established and managed the full real estate value chain – spans 20 years.

Mulder is a registered professional engineer and holds a GCC. SOUTH AFRICAN PROPERTY REVIEW

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SAPOA

National Council

Regional Council East London Regional Councillor: Johan Burger JB Consulting Africa PROPERTY REVIEW - LogoTreatment.pdf

Secretariat: Glynis Heger e: sapoa.el@sapoa.org.za

Port Elizabeth Regional Councillor: Mark Bakker Bruce McWilliams Industries (Pty) Ltd

Secretariat: Caroline Ritson e: sapoa.pe@sapoa.org.za

Western Cape Regional Councillor: Simon Nicks CNdV Africa (Pty) Ltd

Secretariat: Jehan Adams e: wc.sapoa@sapoa.org.za

Limpopo Regional Councillor: Paul Altenroxel Knottrox Property Trust

Secretariat: Zendi Scholtz e: sapoa.limpopo@sapoa.org.za

KwaZulu-Natal Regional Councillor: Bernadette Khumalo AKTIV Property Development

Secretariat: Helen Seymour e: sapoa.kzn@sapoa.org.za

Mpumalanga Regional Councillor: Derek Todd Kellaprince Properties

Secretariat: Bella Chirwa e: lowveld@sapoa.org.za

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● Ipeleng Mkhari Motseng Investment Holdings SAPOA President ● Neil Gopal Chief11:31 Executive Officer 2016/08/25 AM SAPOA ● Liliane Barnard Metope Investment Managers SAPOA REIT Committee ● Londiwe Mthembu Abland SAPOA Education, Training & Development Committee ● Dr Sedise Moseneke Vukile Property Fund SAPOA Government Liaison Committee ● Stephanie Ainsworth City Property Admin (Pty) Ltd SAPOA Legal Committee ● Elaine Wilson Broll Property Group: Divisional Director Research SAPOA Research Committee ● Bill Ward Broll Property Group SAPOA Property and Facilities Management Committee ● Marita Meyer Niche Properties Commercial SAPOA Brokers Committee ● David Green Pro Africa Properties SAPOA Convention Committee ● Zinon Marinakos DSA Architects International SAPOA Awards Committee ● Werner Mulder Attacq SAPOA Sustainability Committee ● Richard Bennet iProp Proprietary Limited SAPOA National Developers Forum Committee ● Musa Ngcobo Thelma Ngcobo & Associates SAPOA Property Charter Alignment Committee ● Sean Liebenberg Profica (Pty) Ltd Method of Measuring Floor Areas Committee ● Nnema Byrd STANLIB SAPOA Elected Board Member

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legal update

Registrar of Deeds held liable for damages after fraudulent transfer of property In the recently reported decision of Stirling v Fairgrove (Pty) Ltd and others 2018 (2) SA 469 (GJ), the Registrar of Deeds in Pretoria (‘Registrar’) was held liable for damages after the fraudulent transfer of a property

By Johan Coetzee, Partner and Head of the Real Estate Team: Fasken Attorneys

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n this matter, the High Court (Gauteng Local Division, Johannesburg) held that the Registrar acted in a grossly negligent way, and that the innocent purchaser was entitled to damages in delict, and the fraudulent transfer was set aside. The background facts of the matter are summarised below.

The lawful owner The applicant, Mrs Stirling, was the lawful owner of a property in Hurlingham, Johannesburg since 1972. During early 2014, Stirling and her husband returned from holiday to find that the property had been broken into by intruders who not only stole their movables, but also vandalised it. As the property was uninhabitable, they vacated the property and moved to a townhouse.

On a subsequent visit to the property, Mr Stirling found that their gate padlock had been replaced with a strange padlock, and learnt from the neighbour that the property was for sale. Mrs Stirling was still in possession of her original deed of transfer and had not given any estate agent mandate to sell the property. Mrs Stirling instructed her legal representative to investigate the matter; the representative then established that the property had been “sold” to Alvares (third respondent), who had in turn sold it to Fairgrove (first respondent). The investigation revealed that Mrs Stirling “sold” the property to Alvares for R2,79-million (this was alleged but never proved), who in turn sold it to Fairgrove for R3,65-million.

The Registrar was the second respondent. Mrs Stirling’s application was to seek a declaratory order that she was still the owner of the property, and the expungement of the two deeds of transfer.

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The first transfer Alvares claimed that he was the victim of fraud perpetrated by estate agents, who “sold” the property to him. In a separate application, Alvares claimed damages from the estate agents and contended that the Registrar was also to blame for allowing the fraud to take place. This separate application was consolidated with the present matter.

The respondents admitted that the first transfer was tainted by fraud, and did not oppose Mrs Stirling’s application. The way in which the fraudulent transaction occurred will be discussed below.

The second transfer Fairgrove was the innocent purchaser who made a counter-application for damages against the Registrar and Alvares for the recoupment of the purchase price and transfer duty it had paid.

The Registrar The Registrar argued that her offices were understaffed and unable to place additional measures in place to prevent fraud, and that the process followed in the present case was unreasonable. She contended that during 2015/2016 there were more than 2 000 registrations on a daily basis in the Pretoria Deeds Office, and the process involved about 50 conveyancers per day. This made it very difficult to put more measures in place, than were already, to prevent fraud.

How did the fraudulent transfer occur?

The following facts, among others, emerged from the documents: ● Stirling’s signatures on the deed of sale, the power of attorney to pass transfer, and several other documents, were forged.

● There were several obvious errors in the deed of transfer (for example, an incorrect description of the property) and the power of attorney. ● The “conveyancer” who prepared the power of attorney was not registered as a conveyancer or an attorney. ● The conveyancer who attended to the transfer was not the person authorised to do so, and no substitution had taken place. ● The clearance certificate that was filed as part of the transfer showed Alvares as the owner before the property was transferred to him. ● The Registrar failed to comply with the requirement to keep a register of conveyancers to verify that those who sign preparation certificates and appear at the deeds office to execute deeds are indeed conveyancers.

Notably, the “transfer” documents were lodged with the Registrar on 29 May 2015 and rejected on 8 June 2015. The reason for the rejection was that the original title deed of the property was not included upon lodgement (as required in terms of Regulation 51(1) of the Deed Registries Act).

Within two days of rejection, an affidavit in support of an application for a duplicate deed of transfer was purportedly deposed by Mrs Stirling; her signature had again been forged. It further reflected that the affidavit was commissioned by a fictitious person who was not an attorney, and the application for a duplicate deed had been prepared by a person who was not an attorney or a conveyancer.

The “transfer” was re-lodged on 11 June 2015 after a duplicate deed of transfer was issued on the strength of the false affidavit.

The deed of transfer was executed on 18 June 2015. From that date, the title of the property was in the name of Alvares.

legal update The Court’s finding The Court held as follows: ● As the first transfer was tainted by fraud, the resultant registration of ownership in the name of Alvares had to be cancelled. ● The Court accordingly declared that Mrs Stirling is the lawful and rightful owner of the property, and the Registrar was ordered to cancel both the duplicate title deed issued and deed of transfer in terms of the first transfer as well as the second transfer.

Regarding the merits of Fairgrove’s counter-application against Alvares and the Registrar, the Court held as follows: ● The Registrar and her officials play a critical role in ensuring security of title in the Republic, and are responsible to ensure that the legal requirements for registration are met. ● They have to thoroughly examine all deeds presented to them, acting with acceptable and reasonable care, failing which they would be liable in damages. ● While the relationship between the Registrar and a conveyancer is based on trust, such trust is premised on the fact that a conveyancer is indeed admitted as such. ● The applicable regulations and Registrar Circulars impose strict formalities and procedures in respect of the content and execution of powers of attorney, including the substitution of conveyancers. ● The deficiencies and errors in the documents in the first transfer were such that the examiners should have rejected the documents. Failure to do so means the Registrar negligently failed to fulfil her statutory obligations. ● The Registrar was obliged to check the register of conveyancers to verify that those who appeared before her as conveyancers, were indeed conveyancers.

The volume of work does not excuse inadequate monitoring. ● Based on the aforesaid, the Court held that this constituted gross negligence, as the Registrar ought to reasonably have foreseen the ensuing losses.

Fairgrove’s counter-application succeeded.

The Court directed that the Registrar and Alvares, jointly and severally, the one paying, the other to be absolved, had to pay the amount of R3,65-million as well as the transfer duty to Fairgrove. Alvares failed to make a prima facie case worthy of rebuttal against the estate agent.

The Court’s order also included a referral of the circumstances surrounding the first transfer to both the Public Prosecutor and the South African Police Service to determine whether any criminal acts were committed during the transfer process, or any other transactions involving Alvares and any other party.

Conclusion The case should be a wake-up call and a reminder to all players how easy it is to get caught up in a fraudulent transaction.

It is also clear that perpetrators are becoming more and more sophisticated, especially where they are aware of a possible vulnerability in a system.

Even though the identity of the perpetrators is still unclear, it is obvious they must have known how the deeds registration system works and how it would be possible to commit the fraud.

All of this must instil an attitude on all conveyancers and property owners to remain vigilant and to be mindful of anything in a transaction that may raise any suspicion. A specific risk area based on the current facts would be where the original title deed has been lost. Great care should be taken in every property transfer that an application for a duplicate deed is not done on a fraudulent basis.

Due to the sheer daily volumes of registrations, one must have sympathy with the Registrar. However, the case supports the argument that an improved system that could minimise the risk for fraud should be implemented to enable the Registrar to fulfil her statutory duties.

The finding and facts of the case also illustrate that both the lawful owner and the innocent purchaser will be protected where a fraudulent transaction occurs.

Johan Coetzee e: jcoetzee@fasken.com t: +27 (0)11 586 6000 SOUTH AFRICAN PROPERTY REVIEW

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legal update

Expropriation of Land without Compensation On 27 February 2018 Julius Malema – through the Economic Freedom Front – put forward a motion to amend the Constitution to allow for the expropriation of land without compensation. Out of the 13 political parties only four – the Democratic Alliance, the Congress of the People, the Freedom Front Plus and the African Christian Democratic Party contested the motion. It was supported by all other political parties, including the African National Congress

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he African National Congress (ANC), in support of the motion, called for Parliament’s Constitutional Review Committee to review Section 25 of the Constitution of the Republic of South Africa, 1996 (the “Constitution”), which is the so-called “property clause”. The Review Committee has been tasked to do so and to report back to Parliament by 30 August 2018.

What can be expected?

The announcement of the motion for expropriation without compensation was received by many with fear and questions, and by some with excitement.

There has been a lot of misunderstanding over what is intended by the motion – and if there is to be expropriation without compensation, what land is intended to be included and what form such expropriation will take.

Clarity on the position taken by the ANC may be found in the outcome of the Land Summit held by the ANC in May 2018. After the discussions held at the Land Summit, the National Executive Committee of the ANC reviewed the recommendations of the Land Summit and clarified the position on the topic.

The ANC has taken the position that Section 25 of the Constitution must be used to implement the policy of expropriation of land without compensation. This is to test the assertions made in some quarters that the Constitution in its current form already enables expropriation without compensation. The ANC intends for Parliament to table and pass a Redistribution Bill to enable government to ensure just allocation of land. This is to be done in conjunction with the 20

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Expropriation Bill. The Expropriation Bill has been in the works since 2011, and was sent back to Parliament in 2016 by then-President Jacob Zuma.

The ANC’s position on changes to Section 25 of the Constitution entails considering whether or not the intention of Section 25(2)(b) in its current form is clear enough to allow for expropriation without compensation.

If the Constitution review process finds that this section does not allow for expropriation without the payment of compensation, and that this section in its current form will slow down the redistribution and reform of land, then it should be changed.

What does the Constitution currently say about expropriation and compensation?

Section 25(2) of the Constitution provides as follows (our emphasis): “25. Property1. No one may be deprived of property except in terms of law of general application, and no law may permit arbitrary deprivation of property.

2. Property may be expropriated only in terms of law of general application – a. for a public purpose or in the public interest; and b. subject to compensation, the amount of which and the time and manner of payment of which have either been agreed to by those affected or decided or approved by a court.”

Section 25(2)(b) in our view specifically and clearly provides that land cannot be expropriated without compensation.

Can the right to expropriation with compensation be validly limited in terms of the Constitution? Does the Constitution allow for expropriation without compensation?

Section 25(8) reads as follows: 25(8) “No provision of this section may impede the state from taking legislative and other measures to achieve land, water and related reform, in order to redress the results of past racial discrimination, provided that any departure from the provisions of this section is in accordance with the provisions of section 36(1).”

Section 25(8) creates a mandate for the government to ensure land reform. This mandate is not limited by the rights contained in Section 25 of the Constitution which includes the right contained in Section 25(2)(b) as discussed above. In other words, if the land rights contained in Section 25 are to be limited, they may only be limited in terms of Section 36 of the Constitution. Section 36 of the Constitution creates the test for when a right contained in the Bill of Rights, in this instance the property right contained in Section 25, may be limited.

The question then that must be asked is: (i) does expropriation of land without compensation result in a valid limitation of the relevant right contained in the Constitution, and as such is it allowable in terms of our current Constitutional framework and limitations provisions; or (ii) does expropriation without compensation amount to an outright deprivation and extinguishing of the right to property, which is beyond the limitation allowed for and as such is not permitted in terms of Section 36 of the Constitution?

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legal update If Section 25 of the Constitution prohibits expropriation without compensation and the limitation or extinguishing of these rights is found to exceed the powers afforded to the government in terms of the Constitution, then any attempt to adopt such land-reform method would be rejected by the Constitutional Court as unconstitutional. Should the government still wish to proceed with expropriation without compensation, the only way forward would be an amendment to the Constitution.

How likely is it that the Constitution will be amended if the amendment is tabled?

The Constitution would be amended by the national government at a vote at the National Assembly. The National Assembly has 400 seats made up of the various political parties. If the Constitution was required to be amended, the parties in favour would require a two-thirds majority (66,67%).

With elections coming up next year, the seat allocation may change, which may affect the percentage of those in support of the motion. In addition, certain individual members of the parties who are in favour of this motion may, notwithstanding their parties’ agenda, nevertheless vote against party lines and vote against such a motion.

What impact will expropriation of land without compensation have?

The stance of the ANC regarding the expropriation topic can be taken out of context. The ANC has expressed that expropriation must be dealt with carefully; there must be a balance in order not to affect the economy.

A task team headed by the Deputy Minister of Public Works Jeremy Cronin has drafted amendments to the forthcoming Expropriation Bill. Such amendments set out which land will be expropriated without compensation.

The ANC has advised that, if it is at all possible, it would be preferable not to amend the Bill of Rights but rather to insert a brief limitation clause in the Expropriation Bill.

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The ANC has acknowledged that the government is concerned about what impact the debate over the topic will have on investors and on organised agriculture. The ANC resolved that the ANC, as a matter of policy, is to pursue expropriation of land without compensation – but, importantly, it should be pursued while keeping the following conditions in mind: ● Without destabilising the agricultural sector, ● Without endangering food security in our country; and ● Without undermining economic growth and job creation.

The President himself has made it clear that the ANC will not support any attempts at land-grabs. The intended expropriation will be dealt with on a case-by-case basis, by applying an established set of principles. The principles would be governed in terms of legislation and such legislation will still be tested by the courts.

The task team also identified land and property that could be potentially expropriated, which includes: ● Abandoned buildings; ● Unutilised land; ● Commercial property held unproductively and purely for speculative purposes or underutilised property owned by the state; and ● Land farmed by labour tenants with an absentee title holder.

Notwithstanding the side of this particular debate that you may fall on, it is reassuring to note that the ANC, whose vote would be required (holding 249 seats in the National Assembly) to amend the Constitution, has clarified that it prefers not to amend the Constitution, and also not to take any steps that will result in the destabilisation of the economy.

despite the motion put forward in February 2018. “It is still too early to tell how the process will unfold, but we expect the rule of law, property rights and enforcements of contracts will remain in place, and will not significantly hamper investments in South Africa,” S&P commented.

Where to from here?

It is still early days in the discussion around expropriation of land without compensation. Everyone is eagerly awaiting the feedback to be expected from the Constitutional Review Committee at the end of August, to give more clarity on what will be considered and on the way forward.

The Committee initially called for written submissions to be submitted before the closing date of 31 May 2018.

The Committee received more than 140 000 submissions from 13 April 2018 to 8 May 2018. The deadline was then extended to 15 June 2018 and there are currently more than 700 000 submissions.

The Committee will travel in two teams to hold at least three meetings in each province from 27 June 2018 until 4 August 2018. There will also be an opportunity for members of the public to make oral submissions (based on their written submissions) in Parliament from 7 to 17 August 2018.

Once the Committee has heard from the public, policy-makers, civil society organisations and academics, the Committee will then report back to the National Assembly on 11 September 2018 with its recommendations on the process of expropriation of land without compensation.

The above should be seen as a brief comment and our interpretation thereof, and should not be seen as an extensive guideline. Please obtain a full legal opinion if you wish to act on any aspect hereof, as the guideline is not fully comprehensive.

What is the foreign perspective?

Standard and Poor’s (S&P), one of the largest international rating agencies, kept South Africa’s rating unchanged

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report

Flexibility:

the key to inclusionary housing policies Inclusionary housing has the potential to advance social integration and economic mobility, delivering access to housing, a enities and a dignified life to co unities isolated fro e ploy ent opportunities and for alised ser ice deli ery

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he implementation of inclusionary housing policies in South African cities – still predominantly spatially divided along racial lines – is a growing objective for provincial and local authorities. The primary motive for inclusionary housing is the potential ability of such a policy to contribute to the social integration of the South African urban fabric, ensuring increased access to economic and housing opportunities for all. Apart from the City of Johannesburg’s draft Inclusionary Housing Policy, there is no formally accepted inclusionary housing policy that stipulates exactly how the public sector intends to execute inclusionary housing.

Urban-Econ Development Economists (Pty) Ltd was tasked by SAPOA to conduct research into the possibility of developing an inclusionary housing policy that can be executed in a manner that satisfies the need for affordable housing while minimising any risks taken on by the private sector. The basic concept of inclusionary housing places the onus on the private-sector developer to provide for the proportional inclusion of affordable dwelling units with new residential developments in well-located urban areas.

The intention is that the inclusion of these affordable units may either be implemented on a voluntary or mandated approach through public policy. The implementation of inclusionary housing is an important instrument in overcoming the substantial backlogs in affordable housing provision through the increased participation of the private sector in the low-income housing market, thus contributing to 24

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the alleviation of government’s financial responsibility for housing provision.

While the implementation of inclusionary housing is in an early, policy-formulating stage in South Africa, concrete efforts are being made by the Gauteng province, the City of Johannesburg and the City of Cape Town to develop provincial and local approaches towards implementation.

Inclusionary housing has already been executed by various publicsector entities across the globe, with wide-ranging objectives, approaches, beneficiaries and implementation mechanisms. Differences in method may vary from the inclusion of affordable housing as a condition to increased development density as in the case of Brazil; conditions to planning approval in England; the Turkish example of land readjustment and private-public partnerships; inclusionary zoning in the US and Canada; government incentives to support private developer feasibility as propagated in the Irish approach; the land-value recapture policy justification in Spain; and the proactive zoning for social housing inclusion in residential developments in Colombia.

The increasing prominence of inclusionary housing is in some respects a response to the inability of post-1994 housing policies to provide access to affordable housing, and to provide sufficient opportunity for upward mobility to communities that remain isolated from urban economic opportunities. South African affordable housing policies place exceeding emphasis on maximising the supply of affordable dwelling units, often disregarding their context within the

INCLUSION AR HOUSINGY Towards a ne w

vision in the City of Jo’bu rg and

Cape Town Metropolita n Municipaliti es

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urban framework and access to existing networks of transport, service delivery and wider human settlements. These policies exacerbate urban spread, confining low-income households to the urban periphery, far from centres of opportunity. Although housing support programmes such as social housing and FLISP have responded to some housing challenges, inclusionary housing intends to form part of an increased policy emphasis on the development of integrated human settlements to support the acquisition of affordable housing units by lowincome households.

If sensibly implemented, inclusionary housing has the potential to permeate positive social impacts on communities – including the incorporation of disadvantaged communities in areas with access to transport, employment opportunities and sufficient community facilities to ensure an increased quality of life. Shared access to housing opportunities provides disadvantaged communities with the potential means of upward mobility, while helping to achieve the government objectives of

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report housing delivery. Accordingly, the primary spatial impact of inclusionary housing is its ability to decrease the sizeable spatial barriers to economic opportunities and social integration faced by isolated low-income households.

Inclusionary housing presents an opportunity to alter the living spaces of communities, bringing about social integration through an alternative approach to housing and contributing to increased development and household densities in welllocated areas.

A big barrier to the implementation of inclusionary housing is the added cost placed on private developers to execute the development of affordable housing. Increased costs may be in the form of capital expenditure for private developers, while rental and price restrictions placed on affordable units will potentially limit the ability of developers to gain a return on their initial investment. Consequently, the increased expenditure by private developers inherent to inclusionary housing may have a substantial influence on both the profitability and the feasibility of new residential developments. In mitigating the costs of inclusionary requirements, private developers may apply various cost-mitigating measures, including placing the added development cost on the market through increased prices and rental rates of private units in new developments.

In most international case studies of inclusionary housing implementation, authorities seek to avail certain incentives to decrease the expenditure of private developers in providing affordable units. This is meant to decrease the concerns of the private sector with regards to profitability and the potential spillover effects of increased housing prices to the market.

These incentives, however, carry a substantial cost to the public purse and the capacity of authorities to administer the implementation of such a policy.

The City of Johannesburg’s draft Inclusionary Housing Policy emphasises the provision of incentives to private developers to mitigate possible 26

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profitability concerns. The city’s method is centred around the mandatory approach to housing delivery by indicating that 20% of any marketorientated residential development (consisting of 10 or more dwelling units) should be allocated to the development of affordable housing units. A similar mandatory implementation approach has been proposed on a provincewide scale by the Gauteng province.

However, growing concerns remain that mandatory inclusionary requirements may adversely affect private developers through impacting returns and profit margins. This may potentially impact the residential property market, and have a detrimental multiplier effect on economic growth and development in urban areas in which such a blanket approach is implemented.

Additionally, it is proposed that the beneficiary households defined by the target affordability threshold must also be flexible in terms of different community dynamics, as well as incorporate wider income ranges to increase development feasibility.

Furthermore, policies that propose such a rigid application of inclusionary requirements and targeted affordability ranges are inflexible to fluctuations in land values. These policies could stifle investment from private developers in the residential property market and increase the regulatory burden of more development “red tape”.

In addition, inflexible mandatory inclusionary housing approaches may have certain social impacts, including possibly isolating lowincome households in high-income, market-related developments with inadequate access to social facilities, limiting accessibility to employment and economic opportunities for lowincome households.

While there are challenges to inclusionary housing in the South African context, the research by UrbanEcon suggests that an implementation approach that emphasises a more negotiation-based platform between municipalities and private developers should be developed. Based on the feasibility challenges of providing and managing affordable units within smaller residential developments, a policy approach that limits inclusionary requirements to delineated large residential developments is highlighted as a potential mitigating policy mechanism that supports the feasible inclusion of affordable units. Flexibility in inclusionary requirements is essential to successful policy implementation.

The flexibility should be on both the economic and property market conditions, and the location of residential developments within the urban context.

Additionally, it is proposed that the beneficiary households defined by the target affordability threshold must also be flexible in terms of different community dynamics, as well as incorporate wider income ranges to increase development feasibility.

Inherent to these measures is ensuring smaller variances in the price and rental rates of affordable and market residential units, supporting developer feasibility while moving towards government objectives for inclusionary housing in well-located areas of the city.

In conclusion, inclusionary housing has the potential to alter the nature of human settlements in South African cities. The fruitful implementation thereof is, however, subject to certain considerations by the private sector and the public authorities. Increased dialogue between private and public sector stakeholders is required to formulate a suitable policy that is based on a flexible, negotiation-based implementation approach.

The research report by Urban-Econ can be accessed on SAPOA’s website: http://www.sapoa.org.za/research/ inclusionary-housing-report/

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Property Sector Charter

Transformation in the property sector The South African property sector is making reasonable efforts towards transformation, but it needs to pic up pace These are the findings of the latest research released by the Property Sector Charter Council (PSCC) in July Supplied

Property Sector Charter Council CEO Portia Tau-Sekati

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easuring the transformation of the industry, PSCC’s new research sampled 106 companies – a sample that may be small in number but adequately reflects the industry outlook by covering the large companies that dominate the sector. This includes institutional investors, large private property owners, collective investment schemes and listed property entities.

Overall, the property sector achieved an average B-BBEE recognition of Level 4.

This is the same level as last year, with a slight drop within the same recognition level.

The PSCC’s latest research shows that the commitment to transformation varies across the sector. The commercial property sector leads the progress in transformation. On the other hand, the residential property sector is lagging behind, with a very limited number of B-BBEE certificates submitted. What’s more, the report shows that the public sector isn’t taking the active lead in transformation that is expected of it to further the transformation agenda, based on its limited submissions.

According to Tau-Sekati, the mandate of the PSCC is to drive the sector’s

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transformation and to ensure that everyone plays a part and makes their contribution. “Inclusive participation is necessary for economic growth that includes all previously disadvantaged individuals and secures their meaningful participation in the mainstream economy,” she says.

The sector’s transformation under the Property Sector Code gazetted in 2012 is measured on eight elements.

The PSCC’s research reveals areas of outperformance – but more so areas of underperformance.

Overall excellent performance against targeted weighting: ● Enterprise development: 105,6% ● Social-economic development: 117,2% Still below target, but reasonable performance: ● Ownership: 80,2% ● Preferential procurement: 83,7% More concerted effort required: ● Skills development: 65,7% ● Management control: 57% Critical intervention required: ● Employment equity: 32% ● Economic development: 38% “Management control, employment equity and skills development are interrelated, so it is unsurprising that the underperformance of the three elements comes as a package,” says Tau-Sekati. This trio of low performers shows an underrepresentation of black people and black women in all levels of management, including real board participation.

In addition, the lack of performance in skills development, as it stands now, will perpetuate the present transformation scenario. “It is essential that enterprises

in the property sector adequately invest in skills,” says Tau-Sekati. “This must be strongly linked to employment equity, which is, at the moment, the lowest scoring element against set target.

“The sector needs to promote skills development at a sectoral level rather than on a company level. This needs to be done in collaboration with academic institutions to build a curriculum that meets current and future needs.”

Although the economic development achievement remains low against its set targets, there are some bright lights, which are the result of the reasonable efforts undertaken by most of the sector’s development companies. “Developing shopping centres in townships and some rural areas is a leading example,” says Tau-Sekati – but she points out that targets in this area may not be sufficiently focused on the poorest areas of the country, which are completely under-resourced.

“It would appear that the property sector is targeting new investment opportunities in areas with relatively high income,” she says. “We hope the future direction will lead the sector into the areas where development is needed the most.”

The State of Transformation Report was released at an event sponsored

by Standard Bank. Standard Bank is a major player when it comes to funding both commercial and residential real estate. Jonas Malebye, Head of Investment Banking for South Africa, says the event holds substantial value for the property sector.

“Standard Bank is proud to sponsor this event,” he says. “We believe it enhances the knowledge base of the sector, contributes to its growth and benefits all participants.”

Property Sector Charter Study reveals that property constitutes 78% of all fixed capital stock in SA economy The analysis in the latest report uses the life cycle of a property, from origination to transaction and to its end-cycle stage. It was (and remains) the most resourceful study of its kind in the country, highlighting the contribution of the property sector to the economy.

This research continues from its 2015 report, which measured the size of the property market in South Africa at a massive R5,8trillion. A key finding of the research study reveals that the South African Reserve Bank in the same year estimated the total value of all fixed capital stock – property, machinery, transport – at R7,6-trillion. This means property constitutes 78% of all fixed capital stock in the country.

In 2015, total direct expenditure of the property sector was R132-billion, and the sector made an important total tax contribution of R62-billion, showing a growth of 35% from the 2013 report (with a R46-billion tax contribution). The report also confirms a total number of 278 000 jobs in the property sector. The highest recorded levels of employment are during the transaction phase – they are sustained over time, as opposed to project-based jobs. All these figures are expected to play a significant role in the socio-economic transformation of the country.

“The property sector makes a significant contribution to the country’s economy, and it is important to continually review this research,” says CEO of the Property Sector Charter Council Portia Tau-Sekati. “Aside from the fact that no reliable figures have existed on the size and impact of the sector before this, in a sector this big and this important there should be ample opportunity for transformation to take place.”

Tau-Sekati explains that detailed research is being carried out in various phases, with each providing a valuable understanding of the sector, and enhancing the consolidated body of knowledge that will foster a consistent understanding of the sector for measurement and evaluation.

When private-public partnership works! Meet the entrepreneurs who benefit.

The Department of Small Business Development (DSBD) and Property Point have joined forces to take 16 small to medium-sized, black-owned businesses through a life-changing enterprise development programme. This programme will provide bespoke business interventions and facilitate access to markets in order to catalyse business growth and sustainability.

Sibulele Kweyama is the founder and Director of Sophistique which specialises in architecture, design, space planning and project management. ‘’After having my children I realised that in order to be there for them and make a living at the same time, I couldn’t do a nine-to-five job.’’ Sibulele was working as a quantity surveyor at the time, but she had always been very particular and creative as young girl and her experience in the built environment helped her identify the need for interior designers who understood the project life cycle and were passionate about meeting the client’s needs. Sibulele took the brave step and started Sophistique in 2016, with the daunting challenge of securing her fist client. ‘’My biggest challenge was clients not paying on time, and being taken for granted by men in the industry’’ Says Kweyama ‘’I also learned that I won’t always agree with clients or business associates, so I had to be mature and allow people to have their own opinions.’’ Being on the Property Point programme, Sibulele can attest to the growth she has seen in herself and in her business. ‘’Entrepreneurship has taught me a lot about myself, I never knew how impatient I was until I started Sophistique. It’s still a bit early for me to say it has been exciting, as the journey has been filled with a lot of hurdles, however, these have given me the courage to push the barriers even harder.’’ Sophistique has grown from having only one employee when it started to employing nine people today. Sibulele has also recently returned from a Property Point sponsored architectural study trip to Denmark, and she is looking forward to incorporating her learnings into her business.

Property Point is a Growthpoint Properties initiative which provides entrepreneurs with the skills and personal development support they need to develop their businesses into fully independent companies. For more information on Sophistique, contact sibulele@sophistique-sk.co.za

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Tongaat Hulett:

a driving force in eThekwini Delegates of the SAPOA Annual Convention & Property Exhibition took a tour of Tongaat ulett s integrated property de elop ents on the first day of the proceedings

By Phil Ruimte

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ll aboard the (thankfully airconditioned) coaches, as my fellow delegates and I head off on the Tongaat Hulett sponsored city tour. Driving away from the downtown-located Durban Convention Centre, we headed out towards Bridge City, a joint venture between Tongaat Hulett and eThekwini Municipality. Clearly there is great collaboration with the city planners: Bridge City is currently connected to the inter-city rail transport, with a terminus at its centre. The city will later be accessible via the Go!Durban bus offering once it comes on stream.

According to Tongaat Hulett, tying all aspects of land use together is critical and can only be done holistically. eThekwini’s Integrated Rapid Public Transport Network plan is creating links across the greater metropolitan region along nine key corridors and via feeder routes.

Tongaat Hulett firmly believes that coordinated public investment in public and economic infrastructure can transform township economies and catalyse private sector investment.

Bridge City is a shining example of this collaboration. Tongaat Hulett’s aim of derisking local investment is apparent in its vision for the precinct – which is to create a dynamic, harmonious and balanced precinct, led by aesthetics, landscaping and functional urban design principles.

From Bridge City, we headed out through the neighbouring residential areas of Phoenix and KwaMashu, which are probably Durban’s oldest apartheid settlements. Building Bridge City between these two areas is deliberate – it brings to mind that the social compact Tongaat Hulett is bringing about is truly one of transformation and testimony to inclusive change in South Africa.

Away from the “township” sprawl, we moved on towards the green, lush hills of Tongaat Hulett’s multibillion-rand Cornubia development. Here we saw infrastructure – roads, bridges and all other facilities of urban living – being established. This mega project is a fully integrated human settlement, effectively an extension of Umhlanga Ridge, and offers both city living and urban pleasure through residential and mixed-use developments.

In a welcome break from sitting in the coach, we stopped at the visionary 1 000-hectare Sibaya Coastal Precinct. It’s a truly magnificent expanse of natural coastal dune forests and undulating urban landscapes – luxury for those who want to get the best of Durban’s urban real estate.

On the way back into town, we drove through Umhlanga and observed how extensively the small holiday town has grown to become home to some serious business space in the form of the Old Mutual Mall, Nedbank’s Park Square and the iconic Chris Saunders Park. It seems that Sandton has some serious competition here!

To end of the tour, we were taken back through the Durban CBD and past the harbour to enjoy refreshments and live entertainment at Moyo. It was a great opportunity to chat and network with people I’d met at previous Conventions, and to catch up with some of my previous interviewees. We were in awe of the stunning changes that are being brought about in Durban – and definitely ready for Convention!

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Invest DURBAN Executive Summary

Durban’s IPA, commonly known to date as DIPA (Durban Investment Promotion Authority), now has the refreshed brand name of “Invest Durban”. We act as a partnership between the Metro City Council and the private business sector, offering a free investor advisory service, plus key promotion, facilitation, aftercare services between all investment stakeholders.

Invest Durban was recommended by the Durban City Council and organised private business as the “First Stop Shop” to stimulate economic growth and new investment in the Durban metropolis.

Main Purpose

To facilitate sustainable investment in Durban for the benefit of ALL through the: ● Expansion, retention and aftercare of existing foreign corporate business within the Metro; ● Proactive investment promotion and marketing of Durban Metro as a premium investment destination; ● Proactive connection to, and marketing of the City’s large investment projects, plus core strategies; ● Identification and development of new investment & business infrastructure opportunities for new Investors, whilst connecting-in and empowering the existing local business people; ● Attraction, support and facilitation for prospective new foreign investors into Durban; ● Improvement in the investment and economic development environments, in partnership with the National, Provincial, City and Business Authorities; Invest Durban works closely with the Department of Trade & Industry including Invest SA, Trade and Investment KZN (TIKZN), the Durban Chamber of Commerce and Industry, the KZN Growth Coalition, and State Owned Enterprises such as Dube Trade Port, the DBSA, IDC, Eskom & others. Key Partners include the largest Banks, Audit & Advisory Firms, plus sector based organised business bodies working in concert to promote investment in Durban.

Invest Durban delivers a world-class Metro based Investor support service, encompassing investment marketing & promotion, plus investment facilitation and retention activities by: ● Following a focussed investor relationship management, marketing and communication strategy, with a healthy focus on broad-based empowerment and local partnerships; ● Making available appropriate and specific city and nationally based economic and sector information, or opportunity studies; ● Facilitating the arrangement of appropriate meetings with, and solutions from the region’s businesses and public sectors at all levels; ● Leading site visits to, and site evaluations of industrial and commercial premises, along with introductions to complementary Service Providers, Empowerment Executives, financial organisations, and sector bodies such as SA Property Owners Assn, plus our formalised Industrial Clusters; ● Advising on and accelerating all investment related regulatory processes towards speedy approvals, along with the required bulk infrastructure services connections and support.

“Facilitating sustainable investment in Durban for the benefit of ALL”

Invest Durban eThekwini Municipality

41 Margaret Mncadi Avenue 11th Floor, Durban, South Africa, 4001 e: invest@durban.gov.za ı w: invest.durban SOUTH AFRICAN PROPERTY REVIEW

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Property leaders asked to join #ThumaMina at the Convention CEO’s dinner Captains of industry gathered at the Oyster Box Hotel in Umhlanga, Durban for the annual Con ention C s dinner uest spea er Phu zile Langeni had a special essage and re uest for all guests present

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humzile Langeni is the Executive Chairman of Afropulse Group Proprietary Limited, a women-led investment, investor-relations and corporate advisory house. She has been tasked by President Cyril Ramaphosa to raise US$100-billion in new investment for South Africa over the next five years as part of the #ThumaMina initiative.

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She reflected on the state of our country and economy in relation to the high rate of unemployment (in particular youth unemployment), as well as a surge in service delivery protests and how our “ship” has sailed “off course” over recent years. “In the past few months, we have seen numerous interventions that have brought a lot of joy and excitement,” she said. “These interventions are critical in ensuring that South Africa is able to advance and tackle some of the difficult challenges it faces today.

“The change in the political guard ushered in a new era. We witnessed swift action, which has included a change in the executive, the appointment of new board members to shepherd our state-owned entities, the changes within some of the provincial government structures, and the return of former heavyweights into government structures.

These actions have signalled intent and determination in addressing challenges and speaking to matters that matter. The interventions were also recognised by the credit ratings agencies, which have, to a large extent, left our sovereign rating

unchanged. But much needs to be done to rebuild our country.”

In terms of her #ThumaMina mission, she highlighted the clear objectives set out by the President. “The President’s objective is to attract investment that will create sustainable jobs, help accelerate the rate of economic growth, and assist South Africa in positively changing the negative socioeconomic narrative that has, in recent months, been characterised by violence, despair, loss of hope, and increased strike and protest action.”

Before closing, she asked the captains of industry to consider the following as they ponder the strategic direction of this significant sector: ● Increasing their level of investment in South Africa; ● Increasing such investment not only in the metropoles, but also in the far-flung areas; ● Sharing with the envoys and members of departments insights on the measures that can be taken to improve the business environment and assist South Africa in regaining a strong following; and

● Helping the #ThumaMina team with their existing networks to advance the new dawn of the President’s message.

“I am positive that if we can work together as a society, as business, as government and as labour, we have a chance to create a vibrant, successful and sustainable South Africa,” she said. “I can see no better way to honour the founder of our democracy, the late Nelson Mandela – especially as we get closer to celebrating his centenary.”

In addition to her role at Afropulse Group, Langeni is an independent nonexecutive Director at Redefine Properties, the non-executive Chairman of Astrapak Limited, as well as a non-executive Director of Imperial Holdings Limited, the Mineworkers Investment Company Proprietary Limited, Primedia Proprietary Limited, Transaction Capital Proprietary Limited, Metrofile Holdings Limited, and other unlisted companies.

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The future we create – Imagine the possibilities A tee off at ount dgeco be olf Course and an eye opening urban city tour got day one under ay, easing delegates into hat turned into a highly topical and infor ed t o day series of plenary sessions facilitated by usebius c aiser

By Mark Pettipher

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Justice Zakeria Mohammed Yacoob

DA leader Mmusi Maimane

GladAfrica Group Executive Chairman Noel Mashaba

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he auditorium lights dimmed, a hush fell and the main part of the SAPOA Annual Convention & Property Exhibition 2018 was under way. A thought-provoking video took us back to before the birth of South Africa’s democracy, challenging beliefs, highlighting South Africa’s transformative plight, and encouraging development and growth of the property sector as a leading player in the way forward in terms of inclusive economic growth.

Durban-born Justice Zakeria Mohammed Yacoob was the first speaker. Appropriately, he opened with a presentation on the “Future of Our Country” – a future that was envisaged by the birth of the new democracy in 1994 and the forming of South Africa’s 1996 Constitution.

Yacoob took us through some of the fundamentals of the Constitution. “Human rights are those basic and fundamental rights to which every person is entitled.

These rights are inalienable: a person has them forever and they cannot be taken away,” he said. “The Bill of Rights is the part of the Constitution that has had the greatest impact on life in this country. As the first words of this chapter say, ‘This Bill of Rights is a cornerstone of democracy in South Africa. It enshrines the rights of all people in our country, and affirms the democratic values of human dignity, equality and freedom.’ ” Yacoob pointed out that equality encompasses those fundamental rights and, on the topic of property, he said that everyone in South Africa has the right to prosperity and fair distribution of land. “It took us nine days to negotiate and refine the Constitution’s property clause,” he said. “There are two sides to the clause.

Property will not be taken away for nothing – but the taxpayer will pay taxes so the

government in turn can pay for the property using the taxpayers’ money.”

The second side of the clause is that property owners would also contribute.

The Constitution moved away from the concept of land being paid for at market value. Now, property can be expropriated and would be paid for through “just and equitable compensation” determined by the Constitutional Court, and influenced by factors such as market value and historical acquisition.

Yacoob believes that property is important to the reconstruction of society, in which both the taxpayer and the property owner will pay a contribution.

“Property is fundamentally important – not for the property owner themselves, but because property held by a responsible citizen has a value and a benefit to the citizen and the public.

“The Constitution provides an element of protection in that no-one can be evicted from their home without an order of court. People can only be evicted if it is just and equitable to do so. The protection is there to protect the rights of the individual, the home occupant and the property owner. It is up to all of us to comply with the Constitution – because in the long term, it is in the interest of property owners.”

Emphasising that the government has a critical role to play in society, Yacoob referred to the housing provision of the Constitution, which says the state must ensure that everyone has access to housing.

“Property owners need to work side by side with municipalities,” said Yacoob. “If it is proved and reasonable to remove people from land, municipalities are obliged to assist – and they have a year to find housing for those people.”

Yacoob concluded his session by touching on fair labour practices – because the Constitution also states that everyone should earn enough to live on. “If we are all working towards that goal, it would mean that everyone would have housing,” he said. “Fair labour practice would mean that everyone would have property ownership and an income, and that more and more people would achieve equality. There is much to be done to create a better and more inclusive society in South Africa.”

Mmusi Maimane addresses the delegates Mmusi Maimane acknowledged the Convention’s organisers by saying, “This conference brings together many of our different ideals, and it brings us the opportunity to break down the legacy we have inherited.

“South Africa can be described as a nation of insiders and outsiders. We all need to ask of ourselves what pointers we need to make about our tomorrow, and how we can make profound and informed decisions.

“Through the 1994 dispensation (and entrenched in the Constitution), there came about a belief that property ownership allowed for the acquisition of assets, borrowing against them as well as the ability to liquidate some of their value to allow for family prosperity through education and self-worth.

“We all know that we still have a long way to go, and we need to do much more to break down the spatial legacies we have been dealt. For us to envision an inclusive future, we need to be tough and make difficult decisions. Life is getting harsh for South Africans: we all need to understand the reforms that we need to make, especially if we are to agree that South Africa needs to grow along non-racial lines and that we must have a non-racial mix.”

Referring to next year’s elections, Maimane appealed for political reform, where South Africa and the South African people are put first. He pointed out that the Constitution is not the problem to land reform, and alluded to what many of the country’s politicians agree on – that the current government has done very little to aid the land distribution cause.

Peter Levett, Managing Director of Old Mutual Property and outgoing SAPOA President As is customary, SAPOA’s outgoing president rounds up his or her tenure with an overview of SAPOA’s activities in that year. Peter Levett highlighted education as a key priority, as well as the strengthening of bursary relationships. He talked of the importance of continued dialogue with South Africa’s mayors as a way to improve services and lead transformation within the property sector. SAPOA’s advocacy drive continues at a pace, as does its participation in the Integrated Development Plan process at regional level.

The organisation identified and produced analysed statistical data reports. Levett also spoke of the Board’s role in steering SAPOA, and the guidance and support that the Regional Councils give. He emphasised the importance of SAPOA’s networking opportunities and thanked the organisation’s members for their support, before congratulating Ipeleng Mkhari on her new role and wishing all delegates a fruitful Convention.

Peter Levett’s speech was published in the July Convention edition of Property Review.

“Our government should be about the best interests of the citizens, not about captured individuals and politicians.”

He urged us to agree to strive for a market-based economy, where Section 25 of the Constitution protects individuals’ property rights. “Property ownership empowers people to determine their own future,” he said. “Political reform is needed as well as economic reform – we will not be able to have a conversation about property ownership without either of those.

“Global patterns show that city-led economic development programmes have the ability to generate higher GDP potentials. Cities have the ability to encourage micro-enterprises, which can grow value in property and infrastructure.

For this we need multi-party collaboration that breaks down red tape and encourages businesses to thrive.”

Maimane believes that coalition party agreements can help economic reform.

“Like-minded politicians from all parties can agree on sharing similar policies on growth and – through a common agenda – can focus on key industries that will stimulate economic prosperity. The country needs to create more emphasis on manufacturing and agriculture, and move away from creating uncertainty around owning land. It’s not so much about

constitutional land reform; it’s more about agreeing to a programme of issuing title deeds to South Africans. Through equity shares in farming, workers and farm owners can be invested in the country’s food security, ownership of land and wealth, which can be transferred from generation to generation.”

Maimane agrees there should be land distribution – first of government-owned land – along with an aggressive transfer of title deeds. “Willing buyer, willing seller is not the answer,” he said. “The Constitution calls for just and equable land transfer, and we must follow the law.”

Calling for a reduction in the Cabinet, Maimane commented on the bloated public sector, and that South African politics should be doing more to encourage private sector participation in creating wealth for the country. State-owned enterprises should be de-monopolised and put in the hands of city-led management and private enterprises.

“If South Africa can achieve some of the political and economic reforms we are championing, then we as a nation can achieve the necessary social reforms,” he said. “I also believe that in order to get to fourth-industrial-revolution standards, much more must be done to improve the country’s education system.”

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To sum up, Maimane encouraged all South Africans to take bold decisions and not to flinch from making difficult choices, all the while remembering that we are competing with international markets. We should fight harder for equal rights, and never lose sight of achieving a non-racial society and developing a fair South Africa.

Glad Africa: Principal sponsor “I believe there is a renewed hope for South Africa and South Africans,” said Noel Mashaba, Executive Chairman of the Glad Africa Group, after the usual protocol was followed. “Recent changes in government have created hope for all of us, and with that hope come new opportunities. Given a favourable environment in which to prosper, I see opportunities in South Africa and throughout Africa. We can have a future that we can all participate in and that we all deserve. If we all play a role in coming together to develop an inclusive environment, imagine the possibilities that can be achieved within this multi-trillionrand sector of ours.”

Mashaba went on to outline his vision of creating an African-born South African consultancy that would be able to respond to African market challenges and to compete in an arena that was previously only open to international players.

Glad Africa is a result of that dream: a company that is growing at a rate of 27% per annum in the past five years in a market that is only growing at seven percent. “The future we are creating matches the possibilities,” said Mashaba.

The company’s growth and its R8-billion per year order book have enabled 208 projects to be undertaken, providing work to more than 50 consultancies and employment to 230 service providers, and being a major contributor to South Africa’s economy.

Expropriation of land without compensation Keynote speaker Jeremy Cronin – Deputy Minister of Public Works, former Deputy Minister of Transport, member of the South African Communist Party and Member of the ANC National Executive Committee – described the issue of land reform as

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Deputy Minister of Public Works Jeremy Cronin

“pathetic”. “The government has a weak policy, and a lack of political will and capacity to do anything about it,” he said. “That is why we are suffering frustration with the slow rate of land exchange and governance.

“Because of the lack of progress, we see an anger and frustration condensed around the emotive call of ‘stolen land to be returned without compensation’.

This is against a background of ‘brutal’ colonial and apartheid expropriation of land as well as other economic assets, such as cattle, homes, trading licences and cultural assets. We need to be careful that we are not embarking on a sense of racist nationalism, where we forget South Africans who are coloured or of Indian origin – they too suffered horrific property dispossession.”

While land reform has been part of the new dispensation since 1996, the December 2017 ANC National Conference resolution was adopted. It is quoted as, “Expropriation of land without compensation should be among the key mechanisms available to government to give effect to land reform and land redistribution. We must ensure that we do not undermine future investment in the economy, or damage agricultural production or food security. Furthermore, our interventions must not cause harm to other sectors of the economy.”

“This is self-contradictory and an oxymoron,” said Cronin. “It’s a reflection of the highly factionalised conference that took place. It is also seemingly a ‘booby trap’ for President Cyril Ramaphosa: he’s damned if he acts upon the resolution

and damned if he doesn’t. It’s a politically charged subject, and there will be a certain amount of rhetoric about it as we build up to the 2019 elections.”

Cronin sees the debate as an opportunity, and believes the ANC’s approach to land reform must be based on three separate elements: security of tenure, land restitution and land redistribution. In terms of the first element, while much has been said about communal land tenure, 60% of those living on communal land do not have security of tenure. “Land restitution is problematic,” Cronin pointed out. “Dealing with claims is extremely slow; based on the old rate of expediency, it will take about 54 years to work through the claims. Now, with the reopening of claims, the new order of things will add another 100 years before meaningful settlement will occur.

“The biggest challenge to restitution is proving a rightful claim. Families have grown, family members have disappeared; and even though an original family member may have rights, the proof of ownership lies within families and how the ownership has been passed down through time.

“Any accelerated land reform programme must be done in an orderly manner. Strong action must be taken against those who occupy land unlawfully.

The ANC’s position is very different to the EFF’s: the ANC is not after the state owning all of South Africa’s land; the ANC is looking to security of tenure and the many diverse forms of it (public, private, commercial and co-operative). The ANC believes in an orderly process, and the whole reason for the current community discussions and public hearings is to decide whether or not Section 25 of the Constitution may or may not be amended.”

SAPOA had submitted an argument to Cronin, which was also its submission to the Parliamentary Constitutional Review Committee. The document read as follows: ● Clearly steps need to be adopted to accelerate land reform and redistribution. ● SAPOA accedes that Section 25 of the Constitution provides all the effective mechanisms to achieve land reform. ● SAPOA will support the conclusions and recommendations of the

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Constitutional Review Committee’s High Level Panel. ● SAPOA further acknowledges that there is an urgent need to address the tenure rights of 17-million or so people who reside on state communal land and calls for reform in issuing titling of the land, new land record systems, and addressing the main blockage to land reform (that being corruption, state capture, the lack of political will and its capacity to deal with claims).

Cronin went on to discuss the Bill of Rights, but first mentioned that Section 25(8) states, “No provision of this section may impeded the state from taking legislative and other measures to achieve land, water and related reform in order to redress the results of past racial discrimination, provided that any departure from the provisions of this section is in accordance with the provisions of Section 36(1).”

Section 36(1) deals with limitation of rights. “The rights in the Bill of Rights may be limited only in terms of law of general application to the extent that the limitation is reasonable and justifiable in an open and democratic society, taking into account all relevant factors, including a) the nature of the right; b) the importance of the purpose of the limitation; c) the nature and extent of the limitation.”

“The Bill of Rights is not an obstacle to land expropriation as long as it is within the bounds of a just and equitable solution, and there is a clear indication of who the recipients of the land will be,” said Cronin.

He further argued that it is possible not to amend the Bill of Rights but to introduce a brief limitation clause into the Expropriation Bill, being, “In cases of expropriation in the public interest, the state may withhold compensation where the property is (a) an abandoned building; (b) unutilised land; (c) held unproductively and purely for speculative purposes; (d) under-utilised property owned by public entities; (e) land actively farmed by tenants with an absentee title holder.”

SAPOA countered some of Cronin’s clarification statements, saying they did not really provide any comfort to SAPOA and its members, in particular in terms of expropriation of vacant land without compensation. SAPOA submitted a figure based on 2015 values of vacant land awaiting development. The figure amounted to R500-billion – a notinsignificant amount. The organisation further argued that it is inappropriate to categorise certain commercial properties as unproductive, as they may, at any point in time, not be used in the most productive manner – but through market forces, land would naturally be converted to a better and higher use.

There is the argument that the government should first look to its own land and properties, and that the state should qualify how much it has. To this, Cronin stated, “A recent government audit shows that there are about 30 000 land parcels and 93 000 buildings under state ownership. The government does in fact have a clear understanding of what is being held.”

Cronin further believes that while the government is taking serious steps to address land reform issues, communication in land reform is not being handled correctly at the moment.

In closing, he said that “Expropriation with or without compensation is only one – and not remotely the major – means to achieving just, equitable, sustainable and necessary land reform. Acquisition of land is not an impediment. The Lands Department has 5 000 farms that remain unallocated.”

He pointed to the requirements for land reform – financial and infrastructural, as well as the need for expertise and institutional support – and said there should be a clear legislative indication of who the major beneficiaries should be. “We need to have a rational, constitutionally aligned and patriotic discussion on how to address the land question as part of the new dawn for all South Africans.”

Associate Professor of Property Studies at UCT Manya M Mooya, Deputy Minister of Public Works Jeremy Cronin, author and radio presenter Onkgopotse JJ Taban, and political analyst, broadcaster, lecturer and author Eusebius McKaiser

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OSCRE International CEO Lisa Stanley

Emerging technologies: are you ready?

Compère Mike Saunders, Chief Executive Officer of Digital Labs, demonstrated } what blockchain is, calling it “a visibly distributed ledger that proves a transaction has taken place”.

After being introduced, Chief Executive Officer of OSCRE International Lisa Stanley said,“Today we look at emerging technologies with an emphasis on blockchain. It doesn’t sit on any company server. It’s a permanent record, a digitally distributed database that may be public, private or hybrid.” She then outlined the benefits of blockchain, including improved transparency in an audit trail, the difficulty in hacking or altering it, eliminating the middle man, real-time collaboration, reduced expenses and mitigated records.

“As we grow in business and the future, there is a need for emerging technologies.

Keeping up with them brings a competitive advantage,” she said. “With new technology come new opportunities, an emergence of a new skills sets and a development of a new kind of human capital.”

The nature of blockchain means it is reliant on “big data”, and the importance that good data governance brings with it.

Stanley outlined the five stages of maturity of effective data governance as: 1. Excellence in quality data input: in a professional environment, it’s in everyone’s interest that data is accurate.

2. The fast pace of change: 25 years ago, we had the start of the internet, which developed into the Internet of Things and the Internet of Everything.

3. Blockchain being foundational in everything we do: decision-making within businesses will become more data driven.

4. No need for proof of concept: because there are players already using blockchain, there is no need to go through proof of concept to see its value. However, one needs to have effective leadership support to effectively utilise change management as part of the daily remit – which means companies willing to go down the line of change leadership.

5. Constructive collaboration: this happens when people come to the table with constructive minds, willing to work together to help reach an organisation’s end point, better data, better ideas and better output.

Essentially, constructive collaboration is the willingness to embrace change, and have leadership support that sponsors and champions better outcomes that will effect change.

Part of blockchain technology is the development of bitcoin as an example of cryptocurrency. Cryptocurrencies can reduce banking time to within an hour as

opposed to a typical banking transfer that can take up to five days. (Banks make money out of the time the transfer takes.)

Banks are in the process of developing pilot projects, putting aside their differences to find common ground. In the first year of the major international banks’ collaboration, 50 pilot projects were developed. Most took six to eight weeks to complete.

Stanley believes the property industry should be embracing blockchain: digital is driving effective change, and the reality is that information is the new currency. Realtime decisions are being effected because of the availability of instant information, heralding the need for more data specialists and a growing demand for analysts. Data is universal in scope, and information can be shared in virtual seconds and nanoseconds.

The property business ecosystem needs to function in the digital world. It needs significant investment and a standard governance programme in place. The system should find a level between IT and each business unit, where big data integration is aggregated under a preparedness to comply with good data governance and collaboration between businesses.

“Blockchain is part of the Fourth Industrial Revolution,” said Stanley. “In our world, the property industry needs to go big, go digital or go home!”

An interesting panel discussion followed the presentation, with Stanley and Michael Stannard, Director of Paper Plane. It was facilitated by Mike Saunders.

Stannard opened the panel discussion by saying that many company employees don’t know about ecosystem projects or the development of blockchain within their companies because companies are working to get the groundwork done first.

Mike Saunders, CEO of Brain Narrative, Paper Plane Director Michael Stannard and OSCRE International CEO Lisa Stanley

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Data governance is very much behind closed doors – but laggards risk losing their competitive edge.

He outlined that blockchain is to business what the internet was to the media industry: it completely changed the way information was communicated.

“Blockchain in the property sector has the ability of moving information from one party to another, in particular when dealing with contracts,” he said.

“Blockchain cannot be hacked, so there is no worry about trusting the transaction.

Take a ‘Smart Contract’: once modified, it is shared immediately with the relevant people. The trust in blockchain is that it allows for 100% integrity. It is a source of truth, a trusted repository.”

Stanley commented that the property sector needs to put its heads together. “We need to define what is required. It needs to appeal to the corporate and the investment side of the industry. We are going where no-one has been before. The first thing is to realise the importance of the way forward – and the industry needs to be an innovator.”

Stannard agreed that blockchain requires certain skills and understanding of technology, but his belief is it will not cost that much. “Building on existing infrastructures and networks, we can develop smart contracts,” he said. “The industry can use smaller software companies – because the smaller guys usually work for themselves, they are innovative and cost-effective.”

“It is important to realise that governments are recognising blockchain’s transparency,

Economist Mike Schüssler

which will make regulation easier,” said Stanley.

“In South Africa, there is a working group collaborating with the SARB and FCA to write regulatory guidance protocols. Tech entrepreneurs need safe rules, and those rules need to be put in place to keep capital and skills here in South Africa.”

The panel agreed that “There will be more outreach and interest in blockchain technologies.

Opportunities for development will open up, and those with technical skills will receive great prospects and salaries. The international landscape will allow data exchange across countries hindered only by not adapting regulatory standards and conventions.”

South Africa’s economy South Africa’s leading economist Mike Schüssler enlightened the delegates with a global economic overview, saying that

the world’s big economies and emerging markets are “motoring ahead”. India and China are leading the way, while South Africa is falling behind.

The US still has the largest economy and is doing well. France and Europe are relatively stable but growing slowly.

Japan is growing, but is declining against other advanced economies that are outperforming it. South African commodities are not doing well compared to other African states; this is further compounded by a strong US dollar.

While domestically South Africa has a debit problem (household debit to household income has risen), we are more or less the same as international norms.

According to the Reserve Bank consumer figures, our household debit is less than the country’s inflation rate – which means, realistically, consumer spending in South Africa is recovering.

OECD data shows that South Africanheld assets are the fifth-highest in the world, dominated by pension funds. In normal US-dollar terms, this is the eighthhighest asset class in the world, amounting to about US$16,5-million in pension fund accounts.

“If we look at wealth inequality,” says Schüssler, “what I’m describing is only looking at share prices. It’s these assets that allow for property development in South Africa. Home ownership in South Africa amounts to 63% of the population, which puts South Africans in the top 40 in the world. Imagine if our government accelerated the giving out of title deeds

Efficient Group Chief Economist Dawie Roodt, PIC Head of Economic Research Mohammed Nalla, Nedbank economist Isaac Matshego and economist Mike Schüssler

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– how much that figure would change.

Given that approximately nine percent of South Africa’s population is white, it stands to reason that if a blanket state-owned land policy is adopted, more would be taken away from the African people than the whites.

“Taking the Credit Suisse index in USdollar terms, South Africa is ranked 34th in assets worldwide. We’re the third-highest in Africa and 59th in average assets. As a median, we’re placed 78th – a little over halfway in the world.”

Schüssler took the opportunity to use his catchphrase: “When it comes to assessing whether we are doing well or not, we look at three elements – vanity, sanity and reality. Vanity: if someone reports a fantastic turnover of X, it is not indicative of how well they are doing, as it does not show how much it costs them to do business. Sanity is how assets are performing. Money in the bank sometimes gives a better return than business. Reality is about cash flow. I would say that South African business is alive – if we take

away the buying and selling of assets, we have cash flow, and South Africans are spending money.

“One of our biggest economic issues is that our tax rate is eighth-highest in the world – far above the world average – and we don’t get the services that other so-called First World countries offer their citizens.

“Having painted a picture that shows we’re living from day to day, we can see from the reported figures that South Africa is investing more and more overseas. We are an exporter of capital. In the past six years, we’ve seen little or no economic growth within South Africa, and for the first time we’re seeing population growth (at 1,7% against our GDP growth). We need to grow at 3,4% just to keep up – and double that to ensure an economic future.

“We are also seeing a decline in recent years in retail. Tourism is taking a knock because of the effects of the drought. In SMME terms, employers are also declining: in the past, 2,5% of South African adults were employers, now we’re at 2,2%.”

Summing up his speech, Schüssler said, “For the remainder of this year, we need to be in a turnaround phase. Next year will hopefully see better stability due to the change in presidency, and after the elections we should see growth in 2020.” He then opened the floor to the panel, which included Nedbank economist Isaac Matshego, Efficient Group’s Chief Economist Dawie Roodt and Head of Economic Research for PIC Mohammed Nalla.

Roodt thanked Schüssler for the optimistic tone of the presentation, and commented that it was unfair to compare asset growth with economic growth of South Africa because it does not reflect true income. He wondered what it would take for South Africa to grow sustainably, pointing out that 3,5% growth is not likely to happen in the near future. Roodt estimated that a five-percent growth is needed to stimulate the economy. However, he also pointed to the accumulated debt at provincial level and insisted that municipal debit needed to be brought under control. But he lamented that even if it were, the country

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would still run into a skills issue, because the local government does not have the requisite skills available to surmount the administrative and governance challenges.

Matshego raised the issue of South Africa Inc needing to unlock the growth in the economy. For this, the SOEs need to be operating at optimum efficiency, which he doesn’t believe will be possible any time soon. He also pointed out that 60% to 86% of fixed investment in South Africa is held by private companies.

He stated that South Africa needed to have a policy of keeping local money within its borders before foreign capital can be attracted, and that offshore investments were creating huge deficits in the country. In his opinion, confidence in South Africa is the biggest issue. What is the case for local investors to invest in South Africa? The hard facts are that there is a constant battle against corruption at various levels of government: the “new dawn” hasn’t brought any change in the heads of the government, in particular to law enforcement and the energy and water sectors.

Matshego also commented that while the political risk in South Africa is lower than in other African countries, the past five years have seen an increased risk because of the destruction of government institutions. “That has resulted in the destruction in the institutes of development,” he said.

Nalla commented that South Africa should be taking advantage of its “lowhanging fruit”. We have advantages over our African neighbours, so we need to take serious analysis of what we have and get the best out of our resources.

South Africa has some of the continent’s most efficient service offerings in the areas of tourism, agriculture and natural resources, as well as a well-regulated financial sector. The tourism sector has the ability to absorb many casual and informal workers, thereby aiding the micro-economy. In the right and willing hands, agriculture has the ability to create economic empowerment that goes beyond land reform, and has the ability to address near- and long-term issues. Most importantly, he advocated that we all need to get on the same page

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and develop a common South African narrative – one that is not polarised with a staccato approach to policies. Policies need to be simplified: “Too much of a regulatory framework erodes the dynamics of an emerging market,” he said.

“As South Africans we are in danger of analysis paralysis – so perhaps we should decide what we are trying to answer first,” said Nalla. “We need to get the conversation going. An answer to our spatial inequalities could be to encourage opportunities and enterprises to take the jobs to the people (rather than taking people’s jobs).

Change the government to be an enabler of enterprise.”

Roodt commented that there are no guarantees in getting the economy to grow. The South African government needs to grow our competitive advantages and environment, and further identify our best skills. He also pointed out that South Africa’s private property rights are the best in Africa, our courts are independent, and we have one of the best power utilities in Africa. We need to fix the current parastatal problems and return those state-owned enterprises to working order.

Matshego asked a generic question: “What is the truth of the South African labour market?” The panel pointed to South Africa’s gross inequalities, and that there is too much power in the hands of the unions.

There is also too much in-fighting within the labour market, with wage disputes paralysing many industrial sectors.

Mining has been the base of South Africa’s economy, but it was agreed that we urgently need to diversify South Africa’s economic platforms. The recently introduced minimum wage will address some of issues at the lowest levels of the labour market and economy.

South Africa has had a credit rating reprieve, so it is important for municipalities and local government to stabilise provincial debit and accelerate reforms to fix the SOEs. Service skills and development need to be addressed, but this can only be done with improvement in South Africa’s education capabilities. We should be able to import those education skills, and the government should be in a position to facilitate immigration of skilled talent.

Salustri Content Solutions Editor-in-Chief John Salustri

Productivity in the modern office environment This session was facilitated by John Salustri, Editor-in-Chief at Salustri Content Solutions, who claimed that “Productivity cannot be defined – but we can know it when we see it.”

He demonstrated that, in the industrial context, productivity could be measured: usually there is a qualitative product that can be measured against time and quantity.

In the office environment, productivity is more difficult to define. It is more subtle – but you can get a good sense of whether employees are engaged or not.

Taking productivity into the property sector, Salustri defined property as asset management in two parts: in-house productivity (administration, and buying, selling and monitoring of the assets) and workplace optimisation (WPO) of tenancy.

He maintains that productivity in the case of WPO resides with health and safety. The modern office environment depends on the seamless transition between heads-down work, collaboration, private discussion and the amenities that workers consider to be critical to their productivity. Salustri cited Google as an employer who offers a work environment with nap pods, games tables, comfortable cushions to sit on, and a generally “relaxed” workspace.

Putting office productivity in context, he talked about this as a transition from Frederick Winslow Taylor’s scientific management methods of optimising the way that tasks are performed, and simplifying jobs enough so workers could be trained to perform their specialised

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sequence of motions in one “best” way.

Taylor’s experiments were called timeand-motion studies, and often involved a stopwatch.

It is said that while scientific management principles improved productivity and had a substantial impact on industry – productivity increased threefold – they also increased monotony at work. The core job dimensions of skills variety, task identity, task significance, autonomy and feedback were missing. The principles of Taylor’s Scientific Management Theory became widely practised, and the resulting cooperation between workers and managers eventually developed into the teamwork we enjoy today.

Taylorism in a pure sense isn’t practised much today, but scientific management has provided many significant contributions to the advancement of management practice. It introduced systematic selection and training procedures, it provided a way to study workplace efficiency, and it encouraged the idea of systematic organisational design.

In comparison, Salustri showed the Larkin Soap administration building, which had been designed in 1904 by Frank Lloyd Wright. He illustrated a spacious openplan office that made use of space and natural light. It had a cafeteria, library and rest room. In 1939, Wright designed the Johnson Wax administration building, described as light and elegant. He also designed much of the furniture. In essence, Wright designed his buildings and furniture for the wellbeing of workers.

The point Salustri was making is that

the modern work environment plays a significant part in attracting employees as well as retaining them. Together with the other four aspects of the workplace – mission, brand and culture; budget; employee need; and managerial commitment – it goes a long way towards determining a company’s productivity.

He further emphasised the importance of a company as a brand, a culture to be developed. Budget plays a big role too – but in larger organisations, it is important to choose the work environment, furniture and amenities meaningfully, and to take employee needs into account. Productivity needs managerial commitment: Salustri believes that leadership comes from the top, and employee engagement is connected to leadership.

He identified that many modern offices are reducing space requirements, and making more efficient use of outdoor spaces such as balconies, which have open doors to allow for fresh air, light and sound to enter the work space. He also explained the importance of the social element, where collaborative spaces are better utilised. New technologies are playing an even greater role in productivity: efficient use of IT infrastructure and connectivity has meant that better systems and processes are making day-to-day functions more efficient.

Before going into the panel discussion, Salustri quoted Dr Dustin Read from Virginia Tech: “The companies that are committed to productivity through worker health and wellbeing are already doing a lot more than nap pods to make their

employees happy, valued, and feel like they have control over their workday. Some companies just have a remarkably strong reputation for employee satisfaction.”

Salustri then lead the panel of Lisa Stanley (CEO of OSCRE International), Craig Howie (BIM Manger at Aecom), Willem van der Post (founder of xTech Capital) and Zinon Marinakos (Managing Director: South Africa at DSA Architects International).

Howie began the discussion, jokingly saying that one should not underestimate the benefits of good coffee.

“To ensure productivity in the modern office, it is essential that there is a drive towards digital excellence and the maintenance of a stable IT environment.

Communications today depends on it,” he said.

Van der Post echoed Howie, pointing to exponential technology as unlocking capabilities and the part it plays in sociological changes. He commented that companies are placing more emphasis on the work environment in order to attract people, by demonstrating that the work space and facilities are an enabling and empowering tool.

Stanley referred to her session of the day before, reiterating the advancement of blockchain and its potential competitive advantages, alongside the importance of human capital and the development of the modern-day workforce skills set.

Marinakos placed emphasis on the critical thought processes of understanding a company’s mission, brand and culture before beginning the architectural design process. He also mentioned the importance

Aecom BIM Manager Craig Howie, OSCRE International CEO Lisa Stanley, Deloitte Centre for the Edge Africa Managing Partner and xTech Capital founder Willem van der Post, DSA Architects International Managing Director: South Africa Zinon Marinakos, and Salustri Content Solutions Editor-in-Chief John Salustri

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of defining the company’s objectives, strategy and core values, and testing these ideas in the spirit of each company through concept discussions analysed and evaluated by clients.

The panel agreed that technological and sociological dynamics are part of the ongoing evolution of a physical building.

It is important not to lose sight of the fact that people use these assets – and that a company’s intellectual asset (its people) is what will drive the workplace of the future.

That being said, modern workplaces need to be flexible and be able to expand and contract according to the fortunes of the company and the workforce required.

Join the conversation Iman Rappetti opened the discussion by briefly talking about the reality of life in South Africa. To put things in perspective, political analyst and futurist Daniel Silke heralded a short overview of how he sees South Africa’s political landscape, saying, “We need to put our woes in context with the rest of the world.

Relationships are changing, which is having an impact on all world economies. As economic fortunes change, so investors tend to look for better places to invest. Cyril Ramaphosa will be highlighting those economic changes and the effects they are having on other world economies. The question is whether the legacy that South Africa has after 10 years of a delinquent administration is being changed fast enough to attract foreign direct investment – and

whether President Ramaphosa is doing enough to fix the institutional destruction that arose as a result.”

Silke pointed out that the legacy of the past 10 years is going to be paid for by the taxpayers. Furthermore, South Africa’s unemployment has the potential to have a destabilising effect on the economy. He referenced South Africa’s R50-billion tax shortfall alongside the 50% unemployed South Africans, saying that the majority of the unemployed were under the age of 24.

Added to these woes, global issues are also beginning to have a substantial effect on our domestic position. We are hugely vulnerable as a net importer of oil. Figures released by the UBS show that South Africa is the biggest under-performer among the emerging markets of India, China, Malaysia, Turkey and Brazil.

But among all this doom and gloom, sentiment has shifted with the change in presidency. Ramaphosa has the opportunity to turn the tide. Given that a key issue is institutional reform, the President’s challenge is to show that South Africa is a capable state.

Silke argued that this reform is fundamental to the growth of a developmental state, and recognised that both Pravin Gordhan and President Ramaphosa have only just embarked on an incredibly complex and difficult job, all set against a backdrop of the upcoming 2019 elections.

Complications and frustrations within the governing party and policies beset by failure are all colluding against Ramaphosa,

as are the coalitions between opposition parties. Silke believes that for South Africa to really move forward, Ramaphosa needs to deliver an electoral victory and be mandated to govern. Silke highlighted the need to see a change in political policy as the biggest challenge faced by Ramaphosa.

The policy needs to move to a “best practice” policy, so tough decisions need to be made, and there needs to be a more defined collaboration between the public and the government.

Competition from other African countries is becoming a reality: they are offering better opportunities for investment, and this needs to be addressed.

Silke believes that South Africa is currently in what he calls a “political limbo” and, as a nation, we need to move away from the polarised racial lines we find ourselves in and find a common narrative to bring solidarity to the country.

Iman Rappetti award-winning journalist

UKZN political analyst and conflict transformation expert Lukhona Mnguni, political analyst Sithembile Mbefe, political analyst and futurist Daniel Silke, political analyst Ranjeni Munusamy, and award-winning journalist Iman Rappetti

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We cannot predict the future – but we can invent it Having heard Silke’s overview, the panellists – including fellow political analysts Sithembile Mbefe, Ranjeni Munusamy and Lukhona Mnguni – joined him and Rappetti on stage.

Munusamy voiced her opinion first: “We are on a shaky political ground. We are too fixated on where we are and how we will find our way. We need to move beyond political debates and start doing tangible things.”

“Government policies are unimplementable,” said Mbefe. “The reality when talking about the future is that our biggest threat is inequality. Seventy-six percent of our population is being held back, with poverty a constant threat. Only four percent of South Africans can be considered elite.”

Mnguni stated that, after 10 years of stagnation, we need to be building an active citizenry – more importantly, we need to be building an intellectually active citizenry who questions the activities of the government. “Where are the intellectual leaders in South Africa?” he asked. “Which parliamentarian is known for championing education, technology and growth?”

He lamented that, as South Africans, our technologies are currently being driven by foreign powers.

“We do need to kick-start a forwardthinking economy and adopt policy that encourages it,” said Silke. “But there appears to be a fundamental ideological split as to who is responsible for technologies. Should the responsibility lie with the government or the private

sector? There is an increasing disconnect between action and policy, which begs the question as to who is leading the conversations. We know that the government and political parties are in election mode, and that many promises will be thrown at us. But there is no proper national agenda. We need to allow for distasteful conversations – the people must have their voices heard and have conversations away from the politicians.

Those conversations need to be had among ourselves.

“We have the ability to be positive, and we are beginning the greater process of collaboration. The debates the country is being exposed to through Ramaphosa are moving us in the right direction.”

Mnguni countered that argument: “You cannot lead alone. The collective power that governs Ramaphosa isn’t really allowing Ramaphosa to lead with any certainty. There is counter-checking. If he is constantly negotiating, he is going to run out of time. I believe he needs to take firmer control, whether it’s popular or not.

“We don’t trust the system when it comes to elections. We have division among our politicians. We all want Ramaphosa to succeed, but we are in danger of falling into a false sense of safety. We should be questioning whether Ramaphosa is going to be the person who will fix the chaos.”

Munusamy climbed in to raise a question: “Why have we allowed ourselves to be disempowered? Everyone has the power to vote – we all need to take action and vote accordingly. Coalitions are not

Political analyst and futurist Daniel Silke

voted for – they happen. When they come about, they need to be meaningful and run by like-minded politicians who come together to shake up the political system and create synergies that come together.

Because the elite are driven by financial agendas, coalitions have the ability to disrupt them by forcing healthy debate, raising questions and driving reform.

Leadership comes from every one of us – civil society needs to be active. Go out and use your vote, and make the necessary changes.”

2017: the year that was MSCI Executive Director Phil Barttram reassured the delegates that the world of real estate is relatively stable and predictable – but that there is a nagging sense that it’s not all smooth sailing.

He told us that while locally many of the bigger funds are continuing to search for growth, they are exploring overseas markets such as central Europe. There are some

UKZN political analyst and conflict transformation expert Lukhona Mnguni, political analyst Sithembile Mbefe, political analyst and futurist Daniel Silke, political analyst Ranjeni Munusamy

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encouraging moves locally towards more diverse areas such as storage facilities and healthcare, and there is continued growth in residential complexes.

Qualifying overseas market spend, Barttram stated that local growth was difficult to find, and that the greatest outside emerging market investment was made up of 60% South African REITs. He also informed the delegates that Saudi Arabia, Kuwait, China and Argentina had entered the market.

There are concerns in the US as retailers continue to fail and malls are becoming vacant, but this is not a trend in South Africa or Europe.

Barttram showed that in 1995, when asset allocations were divided, only five percent of alternative assets were allocated.

(Alternative assets include real estate, private equity and hedge funds.) Recent figures show that this has risen to 25% as of last year.

Taking a look at returns on investment, the industrial sector continued to be the best-performing sector globally, ranging between 3,5% and eight percent. Local retail was not affected by e-commerce.

In terms of asset returns, which are directly linked to economic growth, 2017 showed a return of 11,7%, with industrial assets outperforming all other classes.

Retail was giving good returns and office was beginning to bounce out of what has been a slump. On the whole, Barttram reported that there was no real change in values.

Since retail is where 60% of investor money lies, it is the sector that has given

the best promise, topping out at R240 per square metre for the top-end malls and bottoming out at R160 per square metre in the regional malls. Office vacancies in 2017 had stabilised, reporting returns above inflation. Industrial real estate had no concerns with regards to vacancies and was on balance, giving between six and seven percent return on investment.

Of greatest concern to investments and investors is the rising operational cost, in particular rates and taxes. In 2000, rates and taxes amounted to 44%; in 2017 they amounted to 64% across all sectors. The fastest-growing incremental cost against property assets is electricity.

South Africa is in a unique position: the market offers high and consistent yields, and is highly transparent with resilient returns.

Sadly, it is being eroded by high municipal charges and unpredictable electricitytariff increases.

To end the plenary sessions, Barttram invited Head of Economic research at PIC Mohammed Nalla, fund manager and Head of Property Investments at Momentum Nesi Chetty, Growthpoint Properties Division Director Rudolf Pienaar, Dipula Income Fund CEO and SA REIT Association Chair Izak Petersen, and Head of Development at Attacq Giles Pendleton to join him on stage.

Starting the discussion with Pienaar, Barttram asked what time frame was considered to be the future and what the panellists’ views were on the property sector. “Growthpoint is incumbent to South Africa and Africa, and takes a long-term view on property investment,” said Pienaar.

MSCI Executive Director Phil Barttram

“We appreciate that the time is fast approaching when we will need to reevaluate our retail offerings and start to develop them to be more towards places of entertainment. Offices will need to become more high-performance-centred and more collaborative as work spaces. When it comes to industrial, we believe it will be a question of better utilisation of volume, with a greater reliance on technology to help utilise space. Growthpoint is also venturing into healthcare as a sector that shows great promise.”

Petersen was next: “REITs don’t change,” he said. “To me, long-term is five to 10 years; as such, we hold our assets for the longer term. Looking to the future, South Africa has an ageing population and an economy that could perform better, but we have a good financial system in the country. We have a sophisticated market that will grow and see more people working and moving to the cities. I foresee

PIC Head of Economic Research Mohammed Nalla, Attacq Head of Development Giles Pendelton, Dipula Income Fund CEO and SA REIT Association Chairman Izak Petersen, Growthpoint Properties Divisional Director Rudolf Pienaar, Momentum Fund Manager and Head of Property Investments Nesi Chetty

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the residential market will grow. Retail will continue to perform well based on residential growth. Industrial is stable. The office market is cyclical, and we will have to try to understand tenant requirements better as they look for more flexible and shorter leases. Technology is our friend: we will be able to have greater analysis of our assets and be better informed to make quicker decisions. I believe that we have a bright future ahead of us.”

“As a public investment organisation, we have to report on a quarterly basis, which is a bit of a conundrum because as investors we need to take a long-term view,” said Nalla. “For me, the future is 10 to 20 years.

Our biggest challenge is that the majority of South Africans don’t have money to invest, which is something the government needs to address. We are in competition with emerging markets, which will further complicate investment in South Africa.

We need to examine how we design our

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buildings to become more inclusive, more sustainable and more energy-efficient.”

Pendleton claimed the live-work-play space. “Waterfall City is building on sustainability, convenience, quality and accessibility, as well as on being efficient,” he said. “Our future is 10 years from now, when we are anticipating a change in clients’ dreams. From a sustainability angle, we are looking to get more people into buildings and work on densification, as well as highperformance work places. A city cannot be sterile – we are working towards achieving activities that run 24 hours a day, seven days a week. Our future is looking bright as well.”

Chetty works with pension-fund assets.

“There is a fixation in South Africa to demand short-term distribution of returns,” he said. “However, as an institutional fund manager, we should be looking at five to 10 years. In real terms, 10 years is the norm in achieving maximum

success. Certain nodes demand a 10-year future growth view; to counter, longerterm economic growth amounts to 20 to 25 years. Short-term is a year to five years.

There are many positives in real estate investment, but to get six percent growth is not easy, especially as we’re struggling with a weak growth environment and are competing with equally good quality assets elsewhere in the world.”

Petersen ended the plenary session by predicting that buildings of the future will have greater densification rates, and that the changing dynamics of a building will be driven by technology. People want to do things quickly, so buildings and precincts will become more accessible. Property owners will be more integrated with their customers, and there will be more “green” and green-certified buildings.

The session ended with delegates being entertained by Nik Rabinowitz, one of South Africa’s funniest stand-up comedians.

SOUTH AFRICAN PROPERTY REVIEW

53

the SAP A Annual Con ention

1 236 Attended – 2018

THE SAPOA A N N U A L CONVENTION & PROPERTY EXHIBITION

hibition figures

6companies exhibited 1

at the welcoming cocktail party

1 0

attended

Convention dinner and awards

9 6

Property

66 delegates on township tour

players at Golf Day

SAPOA partnered with CNBC for branded crossings

7interviews with speakers The total value of such was R299 000

Advertising (rand) value equivalent (AVE)

1

premier broadcast rebroadcast on-screen bug

Clip count

Social

1 552 541

Social

1339

Print

2 815 388

Print

79

Broadcast

592 605

Broadcast

19

Online

4 222 027

Online

119

A combined total of R 6 6

A combined total of 1 6

SOUTH AFRICAN PROPERTY REVIEW

44

SOUTH AFRICAN PROPERTY REVIEW

55

Excellence Awards

E DEVELOPME ED US NTS MIX

EVELOPMEN TS

PMENTS CO RPO RAT E

ATIVE DEVELOPMEN TS

TRIAL DEVELOPMEN TS

T DEVELO PME ISHMEN URB NTS REF

RANSFORMA TION RALL T OVE

OVERALL GREEN

L WINNER OVERAL DEEELV D N VETLSOCPOM PLM OET OEPN HVM SL ATIONIA MEN MEM ERN UREB DE TS NE TR S CIAL INT ROEFFFIC

ELIO ER ORPSME IVE DETV OVAT IN NTS INN

EV ELOPM L PDM LO ENVTEIA EN TS ENT S

SE DEVELOPMEN TS

INTERIORS

TIAL DEVELOPME IDEN NTS RES

PMENTS COM MER CIA L

LL HERIL DEVEL OVERSAIDENTIA TAGE OPMENT S RE

T DEVELO PME ISHMEN URB NTS REF

INTERIORS

It all happened down on the boardwalk: 49mm

V&A Waterfront Holdings takes home major accolades Winner, Overall Heritage, Refurbishment

Co petition as fierce again this year. Forty-nine entrants showed off their architectural pro ess, inno ati e thin ing and environmental sympathies RANSFORMA TION RALL T OVE

IAL DEVELOPME USTR NTS IND

LVGERLEOEPNME LE OVERRAD NTS OTHE

Zeitz MOCAA Museum

Education, Curatorial Excellence, Performative

E DEVELOPME ED US NTS MIX

MALL-TOWN DEVELO ND S PME AL A NTS RUR

Practice, Photography, the Moving Image, and LL TRANSFORMA OVERALL GREEN RA OVE

the Costume Institute.

TION

The 10 000m² Zeitz Museum of Contemporary

The concept for the museum is one that

Art Africa (Zeitz MOCAA) is situated in the historic

respects and honours the original form and

Grain Silo in the heart of the V&A Waterfront’s

function of the building through the preserving

utgoing SAPOA Awards for Innovative

Silo District. It is the largest museum to have

of the structures and the carving out of the

Excellence Chairman Pieter Engelbrecht

been constructed on the African continent for

central atrium – symbolically in the shape of a

said, “Unearthing ground-breaking property

more than 100 years, and is the largest in the

grain of corn. This atrium showcases the unique

developments is no easy feat, but this year’s

world to be focusing on contemporary art from

spaces and geometries of the building in a feat

49 entries were nothing short of cutting-edge

Africa and its diaspora. It also hosts international

of concrete engineering and craftsmanship.

in innovative design elements. The standard of

exhibitions, develops supporting educational

O

L DEV

TA PM GEENT VERIALLDLEHVEERLIO O S RETA

ELOP NA MEN NATIO the entriesINwas TER exceptional.

TS

and

enrichment

E DEVEL

OPME IV OVAT NTS programmes, encourages INN

The atrium also holds remnants of the original AL DEV

“Entries were evaluated based on economic

intercultural understanding and guarantees

considerations, design concept, functionality, user

access for all. More than one hundred galleries

The white-box gallery spaces have been

satisfaction, tenant covernance, environmental

spread over nine floors are dedicated to a

inserted into the building as pristine elements

sustainability,

permanent collection. It also houses temporary

on either side of the atrium to act as a visual

exhibitions and boasts the Centres for Art

counterpoint to the vaulted central atrium that

social

transformation

and

overall impact.”

through the building.

connects the different levels of the museum.

The museum is a not-for-profit partnership Developer V&A Waterfront Holdings Owner V&A Waterfront Holdings Architects Heatherwick Studio, VDMMA, Jacobs Parker, Rick Brown & Associates Civil engineers Sutherland Engineers Electrical engineers Solution Station Fire consultants Solution Station Green consultants Arup Heritage consultants Nicolas Baumann, David Worth Mechanical engineers Arup Other consultants Matrix, Planning Partners, Worley Parsons/iX Engineers, Lerch Bates, Solutions 4 Elevating (S4E), IAL DEVELOPME W LOPMENTS COR SMALL-TO N DEVELO USTR NTS DEVE POR PME AND IND ICE ATE NTS RAL Eco-Safety,RUSRL South Africa, Disability Solutions PrincipalOFFcontractor/s WBHO Project managers MACE Quantity surveyors MLC Structural engineers Arup, Sutherland Engineers

56

SOUTH AFRICAN PROPERTY REVIEW

LL HERITAGE

E OP N OVERA Mmove NATIO used Lto ENT machinery the grain vertically ERthat S INT

between the V&A Waterfront and Jochen Zeitz.

The V&A Waterfront funded the R500-million redevelopment costs, and gifts the use of the building at no cost to the institution, while Jochen MALL-TOWN DEV

ELOP DS MEN founding collection L AN Zeitz’s Rcollection forms the TS U RA

of the museum, and is on a long-term loan to the museum.

IL DEVELOPMENTS RETA

IVE DEVELOPME OVAT NTS INN

LOPMENTS COMM DEVE ERC ICE IAL OFF

TIAL DEVELOPME IDEN NTS RES

E INT

IONAL DEVELOPM RNAT ENT S

DE ICE OFF

VELOPMENTS CORP ORA TE

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converting the original building – with its 27mhigh concrete silo bins, some with diameters of up

TRIAL DEVELOPM

ALL-TOWN DE

M ENT US OPM ND S S tallest building The 57m-tallINDGrain Silo, the to 5,5VELmetres – into a functional space to house ENT AL Ain S RUR

South Africa when completed, has been an iconic

the most significant collection of contemporary

part of Cape Town’s skyline for more than 90

art from Africa and its diaspora. Today, the Grain

years. Before it was decommissioned at the turn

Silo is home to both the Silo Hotel (a 28-room

of the last century, the building was at the heart

luxury boutique hotel) and the Zeitz MOCAA,

Developer V&A Waterfront Holdings Owner V&A Waterfront Holdings Architects Heatherwick Studio, VDMMA, Jacobs Parker, Rick Brown & Associates Electrical engineers Solution Station Fire consultants Solution Station Green consultants Arup Mechanical engineers Arup Other consultants Matrix, Planning Partners, Worley Parsons/iX Engineers, Lerch Bates, Solutions 4 Elevating (S4E), Nicolas Baumann Heritage Management Consultant, David Worth, Neil Schwartz, Eco-Safety, SRL South Africa, Disability Solutions Principal contractor/s WBHO Project managers MACE Quantity surveyors MLC Structural engineers Arup, Sutherland Engineers

ANSFORMAhouses an art collection Oshowcased ELOPMof the city’s waterfront.ALL TRwhich E DEVlife VERALL GREEN of the operational across TION R ENT ED US S OVE MIX

adaptive re-use to unlock the potential of the

T DEVEL10 DEVELOPM PM INTERIORS export of much of the country’s grain. Completed within ISEHNMTESNCOthe MME OPME000m² museum.

ENTIAL VELO ENT N E DE URB ESID

T DEVELO ERIORS and heritage.INTHighlights include the soaring PME ISHMEN URB N

processed millions of tons of wheat, maize, soya

the V&A Waterfront was challenging in that it had

forming the focal point of the museum, and the

and sorghum.

to preserve and acknowledge the building’s history

multifaceted pillowed windows, which make the

The internationally acclaimed architectural

while making it fit for its contemporary purpose.

most striking external intervention and give the

practice Heatherwick Studio was tasked with

Significant thought and innovation has gone into

Silo Hotel a unique view of the world.

LL Wcollection, INNER It facilitated sorting, storing and OVERAthe

TIAL DEVELOPME IDEN NTS RES

IC OFF

in 1924 by SA Railways and Harbours, it has

49mm

IVE DEVELOPME OVAT NTS INN

IL DEVELOPMENTS RETA

E INT

RANSFORMA TION RALL T OVE

E DEVELOPME ED US NTS MIX

DE ICE OFF

T DEVELO PME ISHMEN URB NTS REF

INTERIORS

Overall Heritage and Refurbishment Grain Silo

LL HERITAGE OVERA

IAL DEVELOPME USTR NTS IND L DEVELOP ATIONA MEN ERN T TS N I

VELOPMENTS CORP ORA TE IVE DEVELOPME OVAT NTS INN

6 000m² of dedicated gallery exhibition space

REF

RCI AL

TS

The R500-million conversion undertaken by

IONAL DEVELOPM RNAT ENT S

R DEVOEVLEORPAMLELNGTREEN S OTHE

MALL-TOWN DEVELO ND S PME AL A NTS RUR LL HER

OAPMEN ITAGE IL DEOVVEELR TS RETA

Overall Green and Mixed-Use

S

R

LL HERITAGE OVERA

E DEVELOPME ED US NTS MIX

IVE DEVELOPME OVAT NTS INN

building while still paying homage to its history REF

atrium carved from the original silo tubes and

Developer V&A Waterfront Holdings Owner V&A Waterfront Holdings Architects VDMMA, CityThinkSpace RANSFORMA Engineers, Gibb Civil engineers TION RALL TSutherland OVE Electrical engineers Solution Station, Aurecon, Gibb, Sutherland Engineers Fire consultants Solution Station, Sutherland Engineers, Arup Green consultants Arup Mechanical engineers Arup, iX Engineers, Worley Parsons, Aurecon, Sutherland Engineers Other consultants Heatherwick Studio, Jacobs Parker, Makeka Design Lab, Peerutin, Design Space Africa, Rick Brown & Associates Principal contractor/s WBHO, NMC NAL DEVELOP M NATIO TER ProjectINmanagers MACE ENTS Quantity surveyors MLC Quantity Surveyors Structural engineers Sutherland Engineers, Arup

OVERALL GREEN

LL HERITAGE OVERA

full of purpose and designed to maximise

the creativity, design, art and culture embodied

location and comfort. The buildings surrounding

by the museum. The district embodies the key

The 85 000m² mixed-use Silo District at the

the historic Grain Silo include the No.1 Silo, a

urban design principles of permeability; active

V&A Waterfront is Cape Town’s art, culture and

commercial building and corporate head office

ground floors; preserving local heritage and

design district. The area comprises six buildings

for Allan Gray; No.2 Silo with 31 residential units;

culture; mixing people, activities, buildings and

encircling the historic Grain Silo, now housing

and No.3 Silo with 79 residential units. No.4 Silo

spaces; and building buildings for the long term.

the Heatherwick Studio-designed Zeitz Museum

is home to the first state-of-the-art Virgin Classic

The new district has also set new sustainability

of Contemporary Art ALL-TOWN DEVEL MAfrica.

OP ND S

ELOPM houses Health Club in the province; Silo TRIAL DEV SNo.5 ENT NDU

benchmarks, building rated by the LL-TOWN Devery EVEL SMAwith OP AND

Radisson RED hotel.

world-leading 6-star Green Star rating.

Silo District

IAL DEVELOPME USTR NTS IND

LA U RA

MEN TS

LOPMENTS COR DEVE POR ICE ATE OFF

R The buildings form a new public plaza around

the new museum, creating an inviting new

I

S

commercial offices; and No.6 Silo houses the new

L U RA

MEN TS

GBCSAR “as built” and two buildings awarded the

pedestrianised space on the dockside along the

The V&A Waterfront has taken a people-centric

The district was also able to unlock great

working harbour with its warehouses, cranes,

approach to development at the Silo District,

economies of scale with its services to the buildings,

hoists, gantries, shed, containers, ships and

focusing on providing a 24/7 vibrant mixed-use

including the efficient and innovative district sea-

functional industrial archaeology. The planning

space in which people can live, work and play. The

water plant that heats and cools the buildings by

of the Silo District is architecturally contemporary,

architecture and tenant mix of the area reflect

using renewable energy directly from the sea.

SOUTH AFRICAN AF PROPERTY REVIEW

57

TS

Excellence Awards

LOPMENTS COMM DEVE ERC ICE IAL OFF

TIAL DEVELOPME IDEN NTS RES

T DEVELO PME ISHMEN URB NTS REF

INTERIORS

L WINNER OVERAL LOPMENTS COMM DEVE ERC ICE IAL OFF

TIAL DEVELOPME IDEN NTS RES

49mm

R DEVELOPMENT S OTHE

RANSFORMA TION RALL T OVE

E DEVELOPME ED US NTS MIX

Other Developments

robust but contemporary aesthetic that will ensure

Radisson RED

longevity and low maintenance costs.

No.6 Silo is an upscale lifestyle hotel development

The hotel is a new concept and one of the first

that forms part of the V&A Waterfront’s Silo District.

of its kind to be completed in the world. It is a

The Radisson RED consists of 252 rooms with

contemporary brand with a focus on art, music

views across the Silo District, Table Mountain and

and design.

of the active synchro-lift shipyard.

DEVELOPMENT ETAIL

ATIVE DEVELOPMEN NOV TS

The interior of the hotel was designed in IONAL DEVELOPM RNAT E

S R IN The hotel seeks to articulate an “industrial”

E NTS INT renowned artist collaboration with Cameron

character and a robust architecture in response

Platter. This resulted in a number of interventions

to the industrial and warehouse heritage of the

– including the room wallpaper, the tile patterns,

Silo District. The site of the hotel is adjacent to

the shower mosaics, the artwork and the

the historic Grain Silo and the shipyard activities.

decorations on the southern façade – making

The architecture of the building exposes and

this a fully integrated “art hotel”. The re-imagined

embraces both concrete and face-brick by making

Bedford truck that serves as the bar on the rooftop

it an integral part of this bold new hotel brand.

pool terrace adds to the overall playfulness of

These finishes give the building the required

both the building and the brand.

Corporate Developments - Winner

it represents in termsLL-TOof global standards.

WN D

DE ICE OFF

VELOPMENTS CORP ORA TE

PwC Tower

IAL DEVELOPME USTR NTS IND

SMA AND

internationally recognised LEED silver standard rating, emphasising its environmental performance

radius, the 26-storey spiral structure is a symbol

and sustainable design. The tower is connected,

of excellence in the Waterfall City development,

social and dynamic in form and arrangement

representing the capability and vision of South

of spaces, with occupiers benefiting from its

African developers, tenants and professionals.

proximity to a 1,2-hectare inner-city park, the

Designed and developed to become a beacon

Mall of Africa and several residential areas. The

in the area (akin to the landmark status enjoyed

PwC Tower is a worthy inclusion among the best

by the Hillbrow Tower), the sophisticated office

spiral buildings in the world.

building sits proudly alongside a gallery of successful towers around the world.

of 47 690m², complete with conference facilities and five levels of basement. Its distinctive twisted façade is an expression of innovative architectural and structural collaboration to create a worldclass building.

Everyone involved in this project is immensely proud of the accomplishment – particularly what

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SOUTH AFRICAN PROPERTY REVIEW

E DEVELOPME ED US NTS MIX

Developer V&A Waterfront Holdings Owner V&A Waterfront Holdings Architects Design Space Africa, Peerutin Architects Civil engineers Sutherland Engineers Electrical engineers Sutherland Engineers Fire consultants Sutherland Engineers LL HERITAGE OVERA Green consultants Arup Interior designers Graven, Source Mechanical engineers Sutherland Engineers IVE DEVELOPME IL DEVELOPMENTSEcosafety, Matrix, SRL SA Other OVAT NTS RETAconsultants INN Principal contractor/s NMC (Pty) Ltd Project managers MACE Quantity surveyors MLC Quantity Surveyors Structural engineers Sutherland Engineers

RA OVE

E INT

RNA

EVEL OPM

to the Johannesburg skyline. Visible from a 30km

About 3 500 employees are housed in a

R DEVELOPMENT S OTHE

ENT AL S The building isRURdesigned to conform to the

The new head office for PwC is an iconic addition

modern, efficient workplace, spanning floor space

OVERALL GREEN

Developer Attacq Ltd, Atterbury Owner Attacq Ltd Architects LYT Architecture Civil engineers Arup Electrical engineers Claassen Auret Fire consultants SFT Green consultants Ecocentric Mechanical engineers WSP Group Africa Principal contractor/s WBHO Project managers LYT Architecture Quantity surveyors Brian Heinberg & Associates (Pty) Ltd Structural engineers Arup

DE ICE OFF

VELOPMENTS CORP ORA TE

IAL DEVELOPME USTR NTS IND

ND AL A RUR

JUDGING PANEL

L WINNER OVERAL TIAL DEVELOPME IDEN NTS RES

LOPMENTS COMM DEVE ERC ICE IAL OFF

INTERIORS

Pieter Engelbrecht Growthpoint Properties

Winner: Commercial Developments 140 West Street

49mm seamlessly

envelop both the atrium and the pod-like

structure that houses the five linked floor plates. The

140 West Street is in central Sandton by Zenprop Property

edge of this seemingly floating pod is open to the atrium,

Holdings. The 27 000m² of P-grade office space is housed

activating this space with pause areas and collaborative

in two linked towers constructed on a lush landscaped

work spaces.

podium. This 4-star Green Star-rated project consists of a

Sculptural bridges crossing the atrium fan away from

10-storey North Tower, 14-storey South Tower and eight

one another and alter in form from one level to the next.

parking levels. The pedestrian entrance sensitively merges

ELOPMEN Visitors arrive at the ground OflTHoor in two ER DEVreception TS

the office environment with the public, allowing visitors

dedicated glass shuttle lifts, which disembark in a carved-

to filter into the private space through a meandering

out glass lobby filled with trees and vertical planting.

garden, under a canopy of trees, up interlocking stairs

The impressive nine-storey glass atrium is designed as

and planters, and over trickling water features.

an internal street, with restaurant seating and quiet work

The two towers are coupled by a curving, clear glass roof, which appears to wrap over the point of arrival and

Andries Schoeman Delta Property Fund (Pty) Ltd

spaces spilling into the area, and a treed journey to the elegant lift lobbies and seven high-speed lifts.

Developer Zenprop Property Holdings (Pty) Ltd Owner Zenprop Property Holdings (Pty) Ltd Architects Paragon Architects Civil engineers Sotiralis Consulting Engineers Electrical engineers Quad Africa Consulting Fire consultants Trevor Williams Consulting Engineers (TWCE) Green consultants Paul Carew Mechanical engineers ARE Adaptive Resource Engineers Principal contractor/s Tiber/WBHO Project managers Capex Projects IL DEVELOPMENTS Quantity surveyors Schoombie Hartmann Structural engineers Sotiralis Consulting Engineers RETA

Commercial Developments

E INT

IONAL DEVELOP RNAT

offices, Bowmans also required views and windows to

This is an office building located on the corner of Alice

each unit. This led to the design of a sculptural external

Lane and 5th Street in Sandton’s commercial centre. It is

element that was practical to the client’s internal operation.

designed around an office anchor tenant but includes

The H-shaped building allows more peripheral space

showrooms, retail elements and concept stores on the

to have views and windows. The H-shape is pulled

ground floor, which will interact with the piazza.

together by a dramatic central atrium fed from the two

The prestigious Alice Lane 3 was designed with an

(north and south) cores. This separation of the two office

absolute consideration for the end user – in this case

plates allowed the developer to subdivide easily and lease

Bowmans as a major tenant in the building. Typically, law

individual floors or portions thereof to further tenants, ELOPMENTS C

firms have a higher (cellular) office-to-floor-plate ratio

DE ICE

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INTERIORS

m

E DEVELOPME ED US NTS MIX

V

ORP OR

ATE OFFmultiple tenants per thus allowing the flexibility for floor.

NNER

R DEVELOPMENT S OTHE

IVE DEVELOPME OVAT NTS INN

requirement – but in addition to the required density of

Alice Lane 3 and Piazza

LOPMENTS COMM DEVE ERC ICE IAL OFF

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RANSFORMA TION RALL T OVE

Developer Abland Proprietary Limited Owner Redefine PropertiesNT DEV ELOP ISHME MEN URB TS REF Architects Architects Paragon Electrical engineers Taemane Green consultants Solid Green Mechanical engineers C3 Climate Control Consulting Principal contractor/s WBHO Project managers Abland Proprietary Limited Quantity surveyors Quanticost Structural engineersOVERALL GREEN L&S Consulting (Pty) Ltd

Anthony Orelowitz The Paragon Group

IAL DEVELOPME USTR NTS IND

MALL-TOWN DEVE ND S AL A RUR

Beata Kaleta DSA Architects

Christian Roberg Abland

SOUTH AFRICAN PROPERTY REVIEW

59

INTERIORS

T DEVELO PME ISHMEN URB NTS REF

RANSFORMA TION RALL T OVE

OVERALL GREEN

TIAL DEVELOPME IDEN NTS RES

LOPMENTS COMM DEVE ERC ICE IAL OFF

Excellence Awards

E DEVELOPME ED US NTS MIX

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IL DEVELOPMENTS RETA

Winner: Retail Developments

E INT

IONAL DEVELOPM RNAT ENT S

LL HERITAGE OVERA

five levels of structured parking. The three retail

the same side of the building), ensuring shoppers

levels all sit above a truck tunnel at the bottom,

are well oriented and retail levels are easily

Ballito Junction was constructed on a steep, narrow

helping to separate the deliveries from the public

accessible. In addition, parking levels have been

site next to an existing shopping centre. The site

areas. All parking levels are connected to the

painted different colours to assist the public with

dictated that a triple-level mall be developed, with

retail levels via three main entrances (all from

identifying which level they’ve parked on.

Ballito Junction

Developers Menlyn Maine Investment Holdings (Pty) Ltd, Flanagan & Gerard Owner Menlyn Maine Investment Holdings (Pty) Ltd, Flanagan & Gerard Architects MDS Architecture, Boogertman+Partners Architects Civil engineers L&S Consulting (Pty) Ltd (South Africa) Electrical engineers RWP Fire consultants SFT Mechanical engineers QMECH Consulting Engineers ERALL WINNER EVELOPM OV(South -TOWNConsulting DEVE LOPMENTS COR WBHO Quantity surveyors TRIAL DQuantity MALLL&S EN Principal Surveyors Structural engineers (Pty) Ltd Africa) USNWS LOP DEVEcontractor/s POR ND S TS IND ME A AL A FICE TE

OF

RUR

NTS

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IL DEVELOPMENTS RETA

IVE DEVEL OVAT INN

49mm

Retail Developments Table Bay Mall

The Table Bay Mall is located on a highly visible site at the intersection of Berkshire Boulevard and the R27 up the Cape west coast. At an initial 65 000m², and with further phases to deliver a total of 90 000m², this super-regional mall will service the growing residential suburbs of Blouberg and Sunningdale, and offers breathtaking views of Table Bay and Table Mountain.

60

Developer Zenprop Property Holdings (Pty) Ltd Owner Zenprop Property Holdings (Pty) Ltd Architects Vivid Architects Civil engineers Aurecon Electrical engineers Quad Africa Fire consultants Aurecon Interior designer Savile Row Other consultants Solutions for Elevating (S4E), Insite Landscape Architects, AMC, ITS Engineers, EQF, Solid State Group Principal contractor/s Group Five Project managers WT McClatchey and Associates, PCPM Quantity surveyors MLC Quantity Surveyors Structural engineers Aurecon

SOUTH AFRICAN PROPERTY REVIEW LOPMENTS COR DEVE POR ICE ATE OFF

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JUDGING PANEL

L WINNER OVERAL TIAL DEVELOPME IDEN NTS RES

LOPMENTS COMM DEVE ERC ICE IAL OFF

49mm Winner: Residential Developments

The colours, tones and materials were specifically

L WINNER OVERAL

Clifton Terraces

PMENTS COM EVELO

I NTS placedRESlandscaped terraces on each level ensure that

after locations in Africa, Clifton Terraces lies at the foot of

the building will further integrate into the natural

Lion’s Head and Table Mountain.

environment over time.

49mmA key consideration of the design was respect for the

Developed by Taupo Holdings, Clifton Terraces

existing context, and blending the building into the natural

consists of eight simplex apartments, two duplex

surroundings using its overall form, its deep overhangs

DEVELOPbreathtaking apartments two large villas,IXEDall R DEVELOPMENand USEwith MEN TS OTHE T

terraces back significantly to mimic the existing contours

S

M

and inspiring views across the Atlantic Seaboard and the The development has been designed and detailed

approach to placement on site ensured that views from

with sophisticated, timeless finishes and generous

neighbours on all three sides were respected.

VELOPMEN HER DE

facilitiesDto complete the ultimate user experience.

RANSFORMA USE DEVELOPME T RALL T

TS

RANSFORMA TION RALL T OVE

E MIX

OVE

NTS

ION

Craig Sutherland Sutherland Multidisciplinary Engineers OVERALL GREEN

Developer Taupo Holdings Ltd Owner Taupo Holdings Ltd Architects SAOTA Electrical engineers Sutherland Engineers Fire consultants Sutherland Engineers Mechanical engineers Sutherland Engineers Other consultants M van Wieringen & Associates, Jongens Keet Associates, All Round Pools, Tommy Brummer Town Planner Principal contractor/s Haw & Inglis Project managers SIP Project Managers (Pty) Ltd Quantity surveyors De Leeuw Group Structural engineers JG Afrika IL DEVELOPMENTS RETA

Industrial Developments

OVERALL GR

Twelve Apostles mountain range.

of the original site prior to development. This sensitive

OT

T DEVELO PME ISHMEN URB NTS REF

INTERIORS

MER ED CIA A residential development in Oone of the most soughtFFIC L

and a restrained natural palette of materials. The building

Corné de Leeuw DelQS Quantity Surveyors and Property Valuers

chosen to blend in with the surroundings. Carefully IAL DEVELOPME DENT

T DE ISHMEN URB REF

INTERIORS

IVE DEVELOPME OVAT NTS INN

E INT

IONAL DEVELOPM RNAT ENT S

LL HER OVERA

thus minimising the traffic and noise implications of

BMW

a commercial development within a predominantly

Empowered Spaces Architects’ office and warehouse

industrial area.

design for BMW is situated in Atterbury’s Waterfall IL DEVELOPMENTS RETA

The close access to the main roads ensures that the IVE DEVELOPME OVAT NTS INN

L DEVELOP ATIONA MEN ERN TS INT

Commercial District, LP8. Running along the M39, and

distribution is not a logistical nightmare for the client. As

close to the K101 and M1, the building is ideally

this is a distribution centre, the elevation to the main

positioned for the client’s needs. The distribution storage

entrance corner of the building was designed in such

consists of 30 700m² of warehouse space split into

a way as to break the large concrete tilt-up wall panels

multiple departments – picking, storage and general

of the warehouse with flush glazed walls to the facility,

distribution. The total development equates to 32 000m².

thus making it more appealing. The vertical sheeting

The fact that LP8 is a gated complex helps to pull the distribution and activity slightly off the main roads,

DE ICE OFF

VELOPMENTS CORP ORA TE

to the Pwarehouse was used to cap thisIAand complete the L DEVELO MENT

DE ICE OFF

VELO

S COR PO

STR NDU

I RAT E that the client required. square, boxy look

IAL DEVELOPME USTR NTS IND

PME NTS

Developer/owner Attacq Architects Empowered Spaces Architects Civil engineers MALL-TOWN DEVELO ND S PME AL A NTS RUR DG Consulting Engineers Electrical engineers Plantech Fire consultants WSP Building Services Mechanical engineers Plantech Principal contractor/s Abbeydale Building & Civil Project managers Empowered Spaces Architects Quantity surveyors RLB/Pentad Quantity Surveyors Structural engineers DG Consulting Engineers

SE ED-U MIX

DEVELOPM ENT S

LL HERITAGE OVERA

Dean Narainsamy Aecom

MALL-TOWN DEVELO ND S PME AL A NTS RUR

Hashim Bham BTKM Quantity Surveyors BTK (Pta)

Itumeleng Mothibeli Vukile Property Fund

SOUTH AFRICAN PROPERTY REVIEW

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Excellence Awards

TIAL DEVELOPME IDEN NTS RES

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R DEVELOPMENT S OTHE

LOPMENTS COMM DEVE ERC ICE IAL OFF

TIAL DEVELOPME IDEN NTS RES

IVE DEVELOPME OVAT NTS INN

IL DEVELOPMENTS RETA

Innovative

T DEVELO PME ISHMEN URB NTS REF

RANSFORMA TION RALL T OVE

OVERALL GREEN

INTERIORS

L DEVELOP ATIONA MEN ERN TS INT

T DEVELO PME ISHMEN URB NTS REF

LL HERITAGE OVERA

Thrive Portfolio

Platinum Thrive Portfolio buildings boast

and water savings, and transparently shares

a SAPOA Premium- or A-grade rating, as well

the numbers to prove reduced energy costs.

This portfolio combines quality and aesthetics

as 4-star or higher GBCSA rating or an EWP

These buildings also maximise productivity

with sustainability for the benefit of its clients,

certification. Gold Thrive Portfolio buildings

through the quality and efficiency of well-

EVELOPMwellbeing of and prioritises the health USE Dand ENT IXED S

RANSFORMA RALL GREEN designed spaces. are SAPOA OVEhave TION rated or higher, and RALL T B-grade OVE

Thrive Portfolio consists of 86 dual-rated office

at least a 3-star Existing Building Performance

buildings in excellent locations nationwide,

(EBP) certification.

R DEVELOPMENT S OTHE

M

the people in the buildings. Growthpoint’s new

spanning more than 967 782m² of office space, and valued at R18,6-billion.

DE ICE OFF

INTERIORS

VELOPMENTS CORP ORA TE

a GBCSA EWP certification or have received

The Thrive Portfolio incorporates smart tech that gives its occupiers the benefit of electricity

IAL DEVELOPME USTR NTS IND

MALL-TOWN DEVELO ND S PME AL A NTS RUR

International Ecobank Ghana

Located in the capital of Ghana, this new Ecobank

IL DEVELOPMENTS RETA

IVE DEVELOPME OVAT N

INN office building is strategically situatedTS in West

E INT

IONAL DEVELOPM RNAT ENT S

Ridge, Accra’s financial district. The overall vision of this 17 950m² building was to create a worldclass facility that is contextually rooted and that celebrates the spirit of Accra.

The development is defined by best-practice green principles of creating an energy-efficient building, and characterised by two building components mediated by a multi-volume entrance atrium, which enhances movement connectivity. The tallest element houses the office component at 14 storeys high, while the RIAL DEVELOP

LOPMENTS COR DEVE POR ICE ATE OFF

UST IND

MEN TS

lower component houses the banking hall with meeting rooms, canteen and auditorium.

Energy modelling in computer-based tools to simulate the building energy consumption has been prioritised to aid in decision-making and optimisation for its tropical climatic conditions.

From careful selection of glazing systems to exterior shading that is strategically integrated into the envelope as energy-efficiency measures for glare and heat-gain reduction, the building envelope is optimised for its climatic context. This building is a meaningful, sustainable contribution to the built environment of Accra.

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Developer Growthpoint Properties Owner Growthpoint Properties

SOUTH AFRICAN PROPERTY REVIEW

MALL-TOWN DEVELO ND S PME AL A NTS RUR

LL HERITAGE OVERA

Developer Sandpark Properties Ltd Owner Ecobank Ghana Architects ARC Architects Pretoria, Mobius Architecture Civil engineers HBS Consulting, ABP Consulting Engineers Electrical engineers CKR Consulting, UJE Engineers Fire consultants Building Code Consultants Green consultants CKR Consulting Mechanical engineers CKR Consulting, UJE Engineers Other consultants Insite landscaping, JH Consulting, MBA Consult Limited, Josanti Infoimaging Principal contractor/s Micheletti & Co Ltd, Energoproject Ghana Ltd Project managers GHC Africa, Diagonal Projects Africa Quantity surveyors DelQS, Antwi Baah Consult Structural engineers HBS Consulting, ABP Consulting Engineers

JUDGING PANEL

L WINNER OVERAL TIAL DEVELOPME IDEN NTS RES

LOPMENTS COMM DEVE ERC ICE IAL OFF

T DEVELO PME ISHMEN URB NTS REF

INTERIORS

John Truter WSP Group Africa Structures

49mm

Interiors

A large area of the office space was dedicated to

EY Cape Town – Office Interiors

creating a client-connect suite, which includes meeting

ID NTS Savile Row has been on aRESseven-year journey, assisting

ENT FUR functionality, S well rooms of varying sizes with fullREAV as

EY in visioning and designing its global “New Ways of

as a large configurable training and conference space.

Working” principles in its various sub-Saharan offices.

With similar flexibility in mind, Savile Row designed the

DEVELOPM ENTIAL E

LOPMENTS COMM DEVE ERC ICE IAL OFF

ENT DEVELOP BISHM M

INTERIORS

When EY Cape Town decided to move to Waterway

Harbour View Terrace with full-height sliding doors, so

House, there was lots of workplace user data, and spaces

the whole area can become one flowing indoor/outdoor

TRANSFORMAT R DEVELOPMENTThe problem with USE DEVELOPMEN RALLinteraction were designed based on the entertainment space. To create easy ED ION between S OTHEnumbers.

TS OVE MIX

the measurable is it can become generic, and end up as

the two floors, a central staircase was introduced, with its

a space that doesn’t represent anybody. Savile Row wanted

overhead skylight flooding light into the area.

to create a space that no longer catered to an outdated

The distinctive design aesthetic was created by

view on work. EY wanted to push the boundaries in terms

mixing and contrasting textural finishes and tones to

of a non-corporate look andDcreate a comfortable, flexible USE DEVELOPM

R DEVELOPMENT S OTHE

E MIX

ENT S

and inspiring environment for its staff and clients.

achieve an effective balance betweenOVlaid-back ERALL GREEN industrial and refined comfort.

shopping centre as a predominantly pedestrian or

The brief called for the design of a shopping centre for IVE DEVELOPME OVAT NTS INN

the residents of Diepsloot. This afforded the opportunity

“walk-in” centre, where a taxi transport node is provided L DEVELOP ATIONA MEN ERN TS INT

LL HERITAGE OVERA

while still fulfilling the full council parking requirements.

to enrich Diepsloot with a family-friendly shopping

With food outlets, banks, pharmacies, basic services,

experience, with the potential to build a new communal

fashion and more on their doorstep, residents are ever

heart for the residents.

more connected, alleviating them from long-distance

The aim was to assemble a place with an identity that would resonate with the culturally diverse population of Diepsloot. It needed to be robust and strong – but it MENTS CO EVELOP D FICE

RPO RA

TE OF also had to be warm, welcoming and festive, while still

LOPMENTS COR DEVE POR ICE ATE OFF

IAL DEVELOPME USTR NTS IND

LL HERITAGE OVERA

being cost-efficient. The design team approached this

Bambanani Shopping Centre IL DEVELOPMENTS RETA

John Williamson MDS Architecture

RANSFORMA TION RALL T OVE

Developer V&A Waterfront Owners V&A Waterfront,Growthpoint Architects DHK, Savile Row Civil engineers Nadeson Consulting Electrical engineers Solution Stations Fire consultants Solution Stations Green consultants Agama, Sow & Reap Mechanical engineers NAKO Triocon Principal contractor/s NMC Project managers Aecom, Igual, Baseline Quantity surveyors BTKM, Pentad Structural engineers L DEVELOP IVE DEVELOPME IL DEVELOPMENTS ATIONA MEN OVAT NTS Nadeson Consulting RETA ERN INN TS INT

Rural and Small-Town Developments

OVERALL GREEN

Ken Reynolds Nedbank CIB

travel to access basic day-to-day services, transport and entertainment.

The centre consists of 18 000m²SMof rentable area, with ALL-TOWN DEVE

IAL DEVELOPME USTR NTS IND

a 3 000m² Shoprite anchor.

MALL-TOWN DEVELO ND S PME AL A NTS RUR

ND AL A RUR

LOP MEN TS

Developer Nthwese Developments Owner Nthwese Developments Architects Boogertman+Partners Architects Civil engineers Axiom Consulting Engineers Electrical engineers Claassen Auret Fire consultants Adengo Fire Consulting Engineers Mechanical engineers Aircool Other consultants WSP Consulting, VMG Consultants Principal contractor/s Iguana Quantity surveyors Illungile Consulting Services Structural engineers Axiom Consulting Engineers Development management Illungile Consulting Services Project management MDSA Project & Construction (in joint venture with Illungile Consulting Services) Leasing Illungile Consulting Services

Nonku Ntshona Nonku Ntshona & Associates Quantity Surveyors

Queen Mjwara Eris Property Group

SOUTH AFRICAN PROPERTY REVIEW

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Excellence Awards

TIAL DEVELOPME IDEN NTS RES

E DEVELOPME ED US NTS MIX

INTERIORS

T DEVELO PME ISHMEN URB NTS REF

RANSFORMA TION RALL T OVE

OVERALL GREEN

Overall Transformation

the green technology from the centre, further

Joe Slovo Community Project

There is a global acceptance of the urgency of

development of SMEs that encourage recycling.

sustainable development. However, the green

The project model uses 80% recycled material

trend seems to further marginalise the poorer

in construction.

populations that cannot afford mainstream

Understanding land tenure and perception

“green technology”. There is a need to connect

of value in the township is critical to successfully

L DEVELOP IONAalternative these communities green design MEN NATto TER

LL HERIT“green AGE promote design”, and to gain acceptance OVERA

so they can harness its socioeconomic and

and local ownership of alternative green

environmental benefits.

design strategies.

IVE DEVELOPME OVAT NTS INN

IAL DEVELOPME USTR NTS IND

stimulating the township economy through the

TS

IN

Joe Slovo Community Project employs a

The community project illustrates ways of

multidisciplinary approach to development

tapping into the idle potential in townships

that combines innovative design thinking

by presenting green skills sets that are easily

with socioeconomic strategies to promote

accessible to these communities – which

alternative solutions that create livelihoods

then have great potential to help bridge

while promoting community acceptance and

social inequality in South Africa by providing

ownership. Here a community centre addresses

livelihoods through self-employment. Among

social gaps in the township (the multipurpose

various stakeholders, Kimwelle is generously

hall is used as a crèche and health centre), and

assisted by a team professional consultants

WN DEV MALL-TObusinesses ELOP is connected toAL Agreen inspired by ND S ME

via CSI.

RUR

NTS

Developer A group of funders guided by Indalo World (a social enterprise by NMU’s Propella Incubator) Owner Joe Slovo Community Architect Kevin Kimwelle assisted by schools of design/ architecture at CPUT, École Centrale de Nantes (France) and Hochschule Wismar (Germany); Architect of Record: Harlech-Jones Architects Electrical engineers Carifro Electrical & Mechanical Consultants Green consultants CPUT, NMU, Engineers Without Boarders Mechanical engineers Carifro Electrical & Mechanical Consultants Principal contractors Indalo World and Makapela Contractors Project manager Indalo World Quantity surveyor LDM Quantity Surveyors Structural engineer ENSPEC Structural Engineers

JUDGING PANEL

64

Rudolf Nieman Vukile Property Fund

Sam Silwamba Group Five Property Developments

Sandi Mbutuma Azzaro Quantity Surveyors

Stuart Gibbs Zenprop Property Holdings

Wessel van Dyk Nsika Architecture and Design

Zinon Marinakos DSA Architects International

SOUTH AFRICAN PROPERTY REVIEW

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Journalism Awards Judging Panel

The 2018

Journalism Awards for Excellence The dedicated and professional members of the media who excelled in reporting on the property industry were honoured at the Journalism Awards for Excellence 2018

Brian Azizollahoff, MD of Propertiq

Nomzamo Radebe, CEO of JHI Group, a division of Cushman & Wakefield Excellerate

The SAPOA Journalism Awards for Excellence 2018 were awarded in five categories: ● Young Property Journalist of the Year ● Property News Journalist of the Year ● Property Feature Journalist of the Year ● Property Publication of the Year ● Property News Website of the Year During his address, Chairman of the Journalism Awards Committee Brian Azizollahoff said journalists play a pivotal role in ensuring that the public is kept informed regarding the issues that affect the property sector. “Your dedication and commitment to your craft has not gone unnoticed,” he said. “The SAPOA Journalism Awards for Excellence serve to encourage you to continue striving to achieve the highest standards.” At the helm of the Journalism Awards committee for the past six years, Azizollahoff added that the calibre of the awards keeps growing from strength to strength.

Nomzamo Radebe, Chief Executive Officer of the JHI Group, a division of Cushman & Wakefield Excellerate, said it was a pleasure for the organisation to be partnering with SAPOA in hosting this year’s edition of the awards.

“The importance of your role cannot be overstated, as we face ever more turbulent times,” she said. “It is through quality journalism that our press continues to uphold the principles that make any democracy – and any society – function.

In South Africa, this is more important than ever.

This is why it is a great honour for us at SAPOA to play a role in supporting the media. Never lose sight of the value of your work, and how it is contributing to our society. We applaud you.”

Members of the judging panel were chosen on the basis of their ability to provide fresh perspectives and insight, and featured a number of respected professionals across a range of disciplines. They included: ● Brian Azizollahoff, Managing Director of Propertiq ● Nomzamo Radebe, CEO of JHI Group, a division of Cushman & Wakefield Excellerate ● Izak Petersen, Chief Executive Officer of Dipula Income Fund ● Chele Moyo, Vice President: Commercial Property Finance at Barclays Africa Group CIB ● Hilary Joffe, Editor-at-large of Business Day ● Rob Rose, Editor of Financial Mail ● Ron Derby, Editor of Business Times ● Ryk van Niekerk, Editor of Moneyweb The awards were sponsored by Cushman & Wakefield Excellerate.

Izak Petersen, CEO of Dipula Income Fund

PROPERTY WHEEL Property News Website of the Year: Property Wheel

Chele Moyo, Vice President: Commercial Property Finance at Barclays Africa Group CIB

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SOUTH AFRICAN PROPERTY REVIEW

Property Publication of the Year: Earthworks

Journalism Awards Judging Panel

Hilary Joffe, Editor-at-large of Business Day FROM LEFT Marna van der Walt, Chief Executive Officer of Excellerate Property Services, Young Property Journalist of the Year Monique du Toit from SA Real Estate Investor & Brian Azi

Rob Rose, Editor of Financial Mail

FROM LEFT Marna van der Walt, Property Feature Journalist of the Year Ray Mahlaka from Moneyweb & Brian Azizollahoff

Ron Derby, Editor of Business Times

FROM LEFT Marna van der Walt, Property News Journalist of the Year Alistair Anderson from Business Day & Brian Azizollahoff

Ryk van Niekerk, Editor of Moneyweb

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one on one

Durban: open for investment With many of South Africa’s key metros jockeying for investment, Durban is a leading gateway to the country’s hinterland, and offers excellent industrial, commercial and transport investment opportunities

By Mark Pettipher

e

Thekwini is one of 11 districts in KZN, and Durban is the largest city in the province, with a population of 3,5-million.

It is also home to South Africa’s busiest port. The city’s service delivery sectors are divided into administrative clusters, each with clearly defined budgets, roles and responsibilities. They include economic development and planning, community and emergency services, engineering and transportation, human settlements, governance and international relations, corporate and human resources, finance, trading services, strategic management, auditing, and chief operations.

Phillip Sithole is the Deputy City Manager responsible for overseeing the critical economic development and planning cluster. “Our work is aimed at generating sustainable economic growth by working with and facilitating industry, from manufacturing to innovative sector developments,” he says. “We’re responsible for orchestrating capital projects in townships and for developing industrial properties along with the required infrastructure of roads and services.

“We aim to drive development through partnerships and catalytic growth initiatives, which will help reduce poverty in the province, address income inequality and alleviate unemployment. We have a number of catalytic projects on the go. The Catalytic Project Department facilitates and fast-tracks procedures for projects that have a capex of R500-million or more.”

To illustrate, Sithole mentions the Keystone Logistics and Business Hub, a project that was initiated to revive the Hammersdale area with an investment value of R6-billion. Phase 1 has been completed, and is an excellent example of how local businesses participated in the project and how jobs were created as a result.

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Phillip Sithole, Deputy City Manager

“Ideally, projects should include mixeduse functions – retail, commercial and housing – and should fit in with the UN’s Sustainable Development Goals,” he says.

“The projects should be large-scale, with the potential for regional impact.”

Another substantial development is the Waterfront Development. An estimated R35-billion is expected to be spent over the next 10 to 15 years, and it is expected to generate more than 6 750 permanent jobs.

There are several projects under way in eThekwini, including the Pearls Umhlanga, The Arch, Nedbank Square, Suncoast Casino, Clairwood Logistics Park, Cornubia and Dube Trade Port. Development to the west includes the Cato Ridge dry dock, break bulk logistics and a transport hub.

While the Go!Durban initiative does not fall under Sithole’s remit, the spatial and land management of its routes does.

This is an example of how departments within the eThekwini Municipality work together. The routes are carefully planned and will connect several developmental nodes. Sithole’s role is to ensure there is diversification through commercial development along the transport corridors,

while being mindful of the local macroeconomics of the various income groups in which the corridors run. “People must be able to spend less on transport to places of economic growth, and they must benefit from job opportunities that arise from our developmental projects,” he says.

“We encourage foreign direct investment. Durban is open for business, and to achieve our goal of being Africa’s most caring and lovable city by 2030, it is important that local and foreign investors feel confident about us. Our objective is to consolidate our position as the largest trade port and logistics centre in Africa.

“As the continent’s major logistic hub, we have one of the country’s most stable provincial governments. Our Premier, Senzo Mchunu, has been in office since the previous election; eight years means proven continuity. Under his stewardship, the city is subjected to good governance with many checks and balances in place.

Through our councils, we have political accountability. We have established the Municipal Committee on Public Accounts (M-PAC), which is mandated to deal with oversight of all financial and related management aspects of the municipality.

The primary aim of M-PAC is to hold executive and municipal administration to account. Each department or cluster is cross-examined and audited. We also have an investigation division that is mandated to investigate complaints and take action where necessary.

“Furthermore, we are all audited by independent auditors, which are ultimately overseen by the country’s Auditor General. With our proven ability to deliver on promises, foreign direct investors should feel confident that they will be taken care of – and that good governance and accountability will prevail.”

PROCSA®

PROFESSIONAL CLIENT / CONSULTANT SERVICES AGREEMENTS are a suite of agreements intended to regulate the terms of engagement between clients and consultants in the construction industry. The agreements were prepared in consultation with the relevant constituent bodies including the South African Property Owners Association (SAPOA)

PURCHASE OF PROCSA® DOCUMENTS

PROCSA® EDITION 4.0 (OCTOBER 2017)

These documents are available electronically at www.procsa.co.za through either one of two purchasing options:-

After almost 2 years of consultation with various role players, PROCSA® released Edition 4.0 with effect from October 2017. The emphasis of change has been in the terms and conditions on issues relating to

1. Using the e-DOCX Productivity System Provides added value document productivity enhancing facilities in order to save time. The major productivity facility, is that users are able to capture information regarding a new project once and then it is stored and automatically inserted into any document of choice, be it PROCSA, JBCC, Health & Safety etc. In order to access the e-DOCX productivity system, you need to register your details by creating a free account so that you can benefit from these productivity facilities

indemnification, assignment, termination and dispute resolution. In the process, various definitions have been either deleted, added or amended. Clauses relating to duration of the agreement, client and consultant obligations, limit of liability, payment and adjustment of fees and disbursements, have all had significant changes

2. Using the Electronic Hardcopy System Provided for those who do not wish to register to use the e-DOCX Productivity System and only want quick and easy purchase of documents with e-mail and printing functionality. The agreements can only be completed by hand and have the specific project name watermarked on every page

The following PROCSA® agreements are currently available:

ADVANTAGES OF THE PROCSA® SUITE OF AGREEMENTS

● Architect

● Creates consensus among the constituent bodies

● Civil engineer

representing consultants and clients in the building industry ● Local and international usage

● Electrical engineer ● Fire consultant

● Enhance ease of use with the same terms and

● Landscape architect

conditions for all consultants

● Structural engineer

● Sets clear limits of responsibility and liability ● Provides a broad base for services and deliverables

● Quantity surveyor ● Project manager ● Mechanical engineer

across all the stages of work ● Enables scope change and flexibility for projects

● Wet services engineer

● Provides for indemnification of the consultants

● Construction health & safety ● Interior designer

by clients in various circumstances ● Allows for effective dispute resolution

● Development manager

● Provides a matrix of services and deliverables

● Principal agent only

across the various consultants

● Blank user-defined Also available are current and historic editions of the documents at reduced price for reference only purposes (non-editable), a matrix of services by discipline and by stage, together with combined suites of all the reference documents

PROCSA® DOCUMENT QUERIES Queries for information regarding documents should be directed to the Professional Client/Consultant Services Agreements Committee (PROCSA®) at info@procsa.co.za

Green Building Council South Africa

Why green building numbers keep going up Like energy drives movement, so energy from electricity enables economic growth. But South Africa uses more energy to do less when compared to similar developing economies – which means that we burn through much more energy to compete. And because our energy is often very dirty, this increase means the cost we extract from damaging our environment is far too high

B

uildings generate one-third of all carbon emissions through their construction and operation, and the global (and local) construction sector is in dire need of reform. Almost half of the planet’s energy and more than half of our resources are used by buildings, which also account for 40% of end-user energy consumption and waste generation, and 12% of fresh-water usage.

Every year, global temperature records are broken, and unseasonal weather events caused by climate change are obvious.

Just think of Cape Town’s drought or the flooding in Gauteng and Durban.

Sprouting green shoots in the development sector Since it started in 1993, the green building movement’s intention has been to join the dots between sustainable development and the building/ construction sector. In 2007, the Green Building Council South Africa (GBCSA) was formed; today, building green is the domestic industry norm, with almost 400 buildings certified (and counting).

Interestingly, focusing on energy, resource and environmental efficiencies throughout the design, construction and operational phases is gaining popularity – even in a consistently very-low-growth economic environment. This is because building green is not only the right thing to do to enable environmental transformation and social gains, but also to achieve economic impact with accelerated property values, reduced operational costs, higher rentals and, importantly, tenants who are able to provide a more comfortable, healthier and more productive space for their staff.

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SOUTH AFRICAN PROPERTY REVIEW

Green buildings outperform non-green buildings in every area of benefit, and match them on cost. MSCI and GBCSA’s joint green index proves green buildings deliver a better return on investment than non-green buildings – almost double, based on financial data from actual buildings. The evidence that the number of global green buildings continues to double every three years proves the advantages are too valuable to ignore. In South Africa, the cost premium of building green averages five percent and is decreasing rapidly.

How the GBCSA keeps its rating tools’ edge Green building rating tools are used to assess and recognise buildings that meet certain green requirements or standards.

The GBCSA’s rating systems provide a reference point for all professionals on the team, as well as a detailed set of standards for various aspects from energy, water, materials and indoor environment quality to transport, emissions, ecology and innovation, and allow the project design or operation to be independently assessed through the GBCSA’s certification process.

With certification, the goal of sustainable design becomes more attractive to the client. Remember when attempts to be “green” were met with scepticism and dispute? The GBCSA has succeeded in providing a system to ensure that what is set out in the design is built through a strict documenttracking process that holds all parties accountable, as hoped by Mokena Makeka and Peta Blom in Sustaining Cape Town: Imagining A Livable City.

Rating tools vary in their approach and can be applied to the planning and design, construction, operation and maintenance, and renovation phases of a green building. Rating tools can also differ in the type of buildings they are applied to, with specific tools or subsets of tools used for different building types (such as homes and commercial buildings) or even whole neighbourhoods. These tools include Green Star, Energy Water Performance and EDGE. The GBCSA is a member of the World Green Building Council global network, which expects members’ rating tools development and implementation to be robust, transparent and a best-practice standard. In South Africa, an independent and anonymous third-party certification process has been implemented, based to a large extent on the ISO standard for certification bodies.

The Green Star certification standards for South Africa are developed by the GBCSA with support from industry experts who know how to apply such standards on real projects, to ensure that the standards are practically applicable.

This means that they unlock the social, environmental and economic gains for the stakeholders involved in any project.

However, even before the standards are released to the industry, the GBCSA has a robust level of governance and approval, for which a board delegates oversight to a technical steering committee. Similar to other membershipbased organisations, the GBCSA raises funds through sponsorship to amplify their impact – but these sponsors are not able to influence the outcome of

Green Building Council South Africa any one standard or rating tool. An open and transparent stakeholder engagement process and diligent governance structures are set up to guarantee this. As part of this, all minutes from stakeholder meetings on rating tools development processes are shared with all stakeholders involved.

How to get your building certified Buildings, interiors, residential units and precincts can be certified as the GBCSA continues to push the envelope to establish a ratings tool for every relevant context. Development projects use accredited professionals (APs), trained and accredited by the GBCSA, to assist the project teams in assembling documentation, which is then submitted digitally to the GBCSA for review. The AP is often a built-environment professional in his or her own right, and is expected to conduct his or her work with integrity and honesty, with the GBCSA able to withdraw the accreditation if there is evidence that documents or submissions to the GBCSA have been falsified.

The organisation then appoints independent, sector-based professionals trained in certification standards to confidentially review the submission and deliver a detailed review according to GBCSA standards. Typically there are two assessors, or an assessor and a moderator, to ensure that the assessment is thorough and double-checked.

The assessors must provide detailed feedback on every item in which the project documentation was not compliant with the GBCSA standard, as well as ways to correct this. The GBCSA then undertakes a quality-assurance review on the assessor comments, and issues them to the project as the final step in the first round of the assessment process.

Should revised documentation be necessary, the project teams work in their own time to make necessary changes to the design and prepare a new submission that is re-submitted to the GBCSA by the project’s AP. The assessors then review it and provide their final comments. The GBCSA again checks this to ensure these comments are in line

with the set standards, and issues the final results, scoring the development project on the number of Green Stars it has achieved.

Some leading international Green Building Councils have relaxed the distance created between assessors and projects to allow projects to engage directly with assessors for more direct feedback loops, but the GBCSA has maintained the distance to retain the third-party independence of the assessment process It is important to note that the assessors are completely anonymous to project team members and are never in direct contact. Furthermore, to maintain assessors’ independence, they’re required not to engage with any projects directly related to the development project they are assessing – or else the GBCSA will withdraw them and select new assessors for the project, and could even litigate against them for reputational damage through a breach of contract.

Some leading international Green Building Councils have relaxed the distance created between assessors and projects to allow projects to engage directly with assessors for more direct feedback loops, but the GBCSA has maintained the distance to retain the third-party independence of the assessment process. This was felt to be still appropriate in the South African context, where corruption is evident in many sectors. Despite this robust process, 99% of projects achieve their certification because of the active involvement of the AP, the technical support by the GBCSA, and the clear guidelines set out for project teams.

Bringing out the Green Stars in your team A knock-on effect of achieving a green building certification is that those involved

often become champions of the process and the impact, encouraging their teams to keep pushing the boundaries on sustainability. They assist the sustainable development sector by maintaining the demand for sustainable projects and products, and so set standards that in turn elevate the ambition of government building codes and regulation, workforce training and corporate strategies.

Responding to this demand, and the heightened urgency of the sustainable development sector’s view to protect and nurture the environment, the GBCSA’s Net Zero certification requires buildings to have zero carbon, water, waste and ecology impact on their environment. While logical, this is a giant leap from the construction sector’s status quo of emitting a third of global-warming gasses, and using half the resources and available energy.

Beyond the closed loop of carbonneutral building projects are those that are regenerative, adding capacity and increasing the ecosystem that people rely on. The Net Zero and Net Positive certification tools for carbon, water, waste and ecology are part of this, pulling the industry towards the ultimate objective: to have a restorative impact rather than just doing “less bad”.

Leading from the front, municipalities of Tshwane, Johannesburg, Durban and Cape Town are committed participants of the C40 Cities South Africa Buildings Programme. The intention is to accelerate the development and implementation of energy-efficiency programmes and policies so that all new buildings in South African cities are Net Zero Carbon by 2030. The GBCSA is working closely with the C40 Cities team, and is hosting events and workshops to engage with industry on this subject – including at the GBCSA’s annual convention in Cape Town from 3 to 5 October.

For more information on the GBCSA rating tools visit https://gbcsa.org.za/certify/ For more information on the GBCSA Convention, see https://gbcsaconvention.org.za/

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MetroWatch

Municipal spend everyone’s concern In this fourth instalment sourced from https://municipalmoney.gov.za Property Review brings you extracts of reports aimed to help citizens understand where public money is spent, and whether this is within acceptable norms. It is not for us to comment on how it is spent.

In doing so we hope to empower our citizens, strengthen civic oversight and promote accountability What are the potential limitations of the datasets and their interpretation?

Readers should be aware that the data is submitted to National Treasury directly from the individual municipalities. While National Treasury endeavours to ensure the datasets are complete and validated regularly, the quality of the data is primarily assured by the Chief Accounting Officer of the municipality.

National Treasury has developed standard indicators and norms based on Section 71 submissions of municipalities. These indicators and norms have been used as a basis to compare the financial performance of different municipalities on the Municipal Money website. However, there are occasions when municipal financial performance cannot clearly be classified within these accepted norms, and where deviations from the norms are not necessarily a negative reflection on the municipality’s financial performance.

For example, some metropolitan municipalities with large populations and substantive budgets may opt to adopt different

strategies of service delivery as compared to their counterparts. This, in turn, may involve more outsourcing, less capital expenditure and lower staff costs – all of which may then fall outside of the generally accepted norms and standards identified by National Treasury.

While we acknowledge these limitations, National Treasury believes these comparisons are still useful and appropriate as they allow users to identify and explore the differences between municipalities, bringing them closer to understanding the sometimes subtle nuances between municipalities and between categories of municipalities.

To assist users in querying the results of a municipality’s financial indicators, the report provides a direct email link to the municipal management, where the Municipal Manager and Mayor may respond directly and provide clarification to users.

This level of interest and understanding will no doubt ultimately contribute to enhanced civic oversight, greater transparency and increased accountability.

JOHANNESBURG Metro municipality in Gauteng

Population 4 434 827

1 648

square kilometres

2 691 people per square kilometre

+27 (0)11 407 6111 www.joburg.org.za Metro Centre 158 Civic Boulevard Street Braamfontein 2000

MAYOR/EXECUTIVE MAYOR

Cllr Herman Mashaba +27 (0)11 407 7309 hermanma@joburg.org.za

Secretary

Moipone Molotihanyi +27 (0)11 407 7517 MoiponeMol@joburg.org.za

CHIEF FINANCIAL OFFICER Ishwar Ramdas +27 (0)11 358 3458 ishwarr@joburg.org.za

Secretary

Lerato Maakoe +27 (0)11 628 4586 LMaakoe@joburg.org.za

MUNICIPAL MANAGER Dr L Ndivhoniswani +27 (0)11 407 7309 citymanager@ joburg.org.za

Secretary

Belinda Bolleurs +27 (0)11 407 7309 BelindaB@joburg.org.za

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MetroWatch FINANCIAL PERFORMANCE Audit outcomes 2016 Unqualified – Emphasis of Matter items

2015 Unqualified – Emphasis of Matter items

2014 Unqualified – Emphasis of Matter items

2013 Unqualified – Emphasis of Matter items

Did You Know?

There are five types of audit outcome.

SOURCE: Municipal Audit Reports

Unqualified Opinion

Unqualified Opinion

No Findings

Emphasis of Matter Items

Qualified Opinion

Adverse Opinion

Disclaimer of Opinion

The Auditor-General expresses This is expressed when the The Auditor-General does not reservations about the fair Auditor-General concludes have all of the underlying The Auditor-General can state, Same as an Unqualified that the annual financial documentation needed without reservation, that the Opinion with no findings, but presentation of the financial statements. There is some statements do not present to determine an opinion. financial statements of the the Auditor-General wants For example, the lack of municipality fairly represent to bring something particular departure from the generally the municipality’s financial recognised accounting position, results of operations underlying documentation the financial position of the to the attention of the reader. practices (GRAP) but it is and cash flows in line with and the amounts in question municipality and are in line not sufficiently serious as to generally recognised may be so great that it is with generally recognised warrant an adverse opinion accounting practices (GRAP). impossible to give any accounting practices (GRAP) or disclaimer of opinion. opinion on all.

Did You Know?

A municipality’s cash balance refers to the money it has in the bank that it can access easily. If a municipality’s bank account is in overdraft, it has a negative cash balance. Negative cash balances are a sign of serious financial management problems. A municipality should have enough cash on hand from month to month to be able to pay salaries, suppliers and so on.

Cash Balance July 2016 – June 2017 R3 095 911 000

Cash balance at the end of the financial year.

Nearly double the cash balance for similar municipalities nationally: R1 690 101 970

Good

Positive Balance

Bad

Negative Balance

An Outstanding Opinion Means that the Auditor-General raised queries with the municipality and therefore has not submitted another opinion.

Reference: State of Local Government Finances Formula: Cash available at year-end = Cash Flow item code 4200, Audited Actual What does it mean when something is listed as “Not Available” or a bar is missing from the chart?

When something is listed as “Not Available”, one or more of the things needed to show the indicator for that date was missing from National Treasury’s local government database.

This usually happens when the relevant municipality has not submitted the data to the National Treasury in an acceptable form in time. It might have been submitted late and will be available in the next quarter. It might also be available directly from the municipality but without the vetting done by National Treasury before inclusion in its local government database.

Did You Know?

Cash coverage measures the length of time, in months, that a municipality could manage to pay for its day-to-day expenses using just its cash reserves.

So, if a municipality had to rely on its cash reserves to pay all short-term bills, how long could it last? Ideally, a municipality should have at least three months’ worth of cash cover.

Cash Coverage July 2016 – June 2017 27 days Months of operating expenses that can be paid for with the cash available.

About two-fifths of the coverage for similar municipalities nationally: 2,1 months

Good Average Bad

More than 3 months Between 1 and 3 months Less than 1 month

Reference: State of Local Government Finances Formula: = Cash available at year-end / Operating expenditure per month = Cash Flow item code 4200, Audited Actual / (Income & Expenditure item code 4600, Annual Audited Actual / 12). If Cash available at year-end is negative, we say Cash Coverage is zero months.

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MetroWatch Did You Know?

This indicator is about how much more a municipality spent on its operating expenses than was planned and budgeted for. It is important that a municipality controls its day-today expenses in order to avoid cash shortages. If a municipality significantly overspends its operating budget, this is a sign of poor operating controls or something more sinister. Overspending by up to five percent is usually condoned; overspending in excess of 15% is a sign of high risk.

Spending of Operating Budget July 2016 – June 2017 4,5% underspent Difference between budgeted operating expenditure and what was actually spent.

More than double the underspending or overspending for similar municipalities nationally: -1,4%

Good Average Bad

Up to 5% Between 5% and 15% More than 15%

Reference: Over- and underspending reports to Parliament Formula: = (Actual Operating Expenditure - Budget Operating Expenditure) / Budgeted Operating Expenditure = (Income & Expenditure item code 4600, Audited Actual - Income & Expenditure item code 4600, Adjusted Budget) / Income & Expenditure item code 4600, Adjusted Budget

Did You Know?

Capital spending includes spending on infrastructure projects such as new water pipes or building a library.

Underspending on a capital budget can lead to an under-delivery of basic services. This indicator looks at the percentage by which actual spending falls short of the budget for capital expenses. Persistent underspending may be the result of under-resourced municipalities that cannot manage large projects on time. Municipalities should aim to spend at least 95% of their capital budgets. Failure to spend even 85% is a clear warning sign.

Spending of Capital Budget July 2016 – June 2017 21,95% underspent Difference between budgeted capital expenditure and what was actually spent.

About one-third of the underspending or overspending for similar municipalities nationally: -60,975%

Good Average Bad

Up to 5% Between 5% and 15% More than 15%

Reference: Over and under spending reports to parliament Formula: = (Actual Capital Expenditure - Budgeted Capital Expenditure) / Budgeted Capital Expenditure = (Capital item code 4100, Total Assets, Audited Actual - Capital item code 4100, Total Assets, Adjusted Budget) / Capital item code 4100, Total Assets, Adjusted Budget

Did You Know?

Infrastructure must be maintained so that service delivery is not affected.

This indicator looks at how much money was budgeted for repairs and maintenance, as a percentage of total fixed assets (property, plant and equipment). For every R10 spent on building/replacing infrastructure, R0,80 should be spent every year on repairs and maintenance. This translates into a Repairs and Maintenance budget that should be eight percent of the value of property, plant and equipment.

Spending on Repairs and Maintenance July 2016 – June 2017 2,81% Spending on repairs and maintenance as a percentage of property, plant and equipment.

About 10% higher than similar municipalities nationally: 2,51%

Good

More than 8%

Bad

Less than 8%

Reference: Circular 71 Formula: = Repairs and maintenance expenditure / (Property, Plant and Equipment + Investment Property) = Capital Acquisition item code 4100, Audited Actual / (Balance Sheet item code 1300, Audited Actual + Balance Sheet item code 1401, Audited Actual)

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MetroWatch

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MetroWatch Did You Know?

Unauthorised expenditure means any spending that was not budgeted for or that is unrelated to the municipal department’s function. An example is using municipal funds to pay for un-budgeted projects. Irregular expenditure is spending that goes against the relevant legislation, municipal policies or by-laws. An example is awarding a contract that did not go through tender procedures.

Fruitless and wasteful expenditure concerns spending that was made in vain and would have been avoided had reasonable care been exercised.

An example of such expenditure would include paying a deposit for a venue, not using it and losing the deposit.

Fruitless and Wasteful Expenditure July 2014 – June 2015 2,74% Unauthorised, irregular, fruitless and wasteful expenditure as a percentage of operating expenditure.

About the same as similar municipalities in Gauteng: 2,74% About half of the expenditure for similar municipalities nationally: 5,16%

Good Bad

0% More than 0%

Reference: Circular 71 Formula: = Unauthorised, Irregular, Fruitless and Wasteful Expenditure / Actual Operating Expenditure = Unauthorised, Irregular, Fruitless and Wasteful Expenditure item codes irregular, fruitless, unauthorised / Income & Expenditure item code 4600, Audited Actual Note Since calling expenditures unauthorised, fruitless and wasteful or irregular can involve quite a lot of debate, the numbers used are the restated audited amounts 18 months after the financial year-end– part of the Medium Term Revenue and Expenditure Framework.

Did You Know?

The current ratio compares the value of a municipality’s short-term assets (cash, bank deposits, etc) compared with its short-term liabilities (creditors, loans due and so on). The higher the ratio, the better. The normal range of the current ratio is 1,5 to 2 (the municipality has assets more than 1,5 to 2 times its current debts). Anything less than that and the municipality may struggle to keep up with its payments.

Current Ratio July 2017 – June 2018 Quarter 2 0,83 The value of a municipality’s short-term assets as a multiple of its short-term liabilities.

About the same as similar municipalities in Gauteng: 0,83. About half of the ratio for similar municipalities nationally: 1,555

Good Average Bad

More than 1,5 Between 1 and 1,5 Less than 1

Reference: Circular 71 Formula: = Current Assets / Current Liabilities = Balance Sheet item code 2150, Monthly Actual / Balance Sheet item code 1600, Monthly Actual Note The quarterly summary looks at the state at the end of each quarter. If the monthly data is missing for the last month in the quarter, the previous month in that quarter. If all months are missing, that quarter is shown as blank.

Did You Know?

Liquidity ratios show the ability of a municipality to pay its current liabilities (money it owes immediately such as rent and salaries) as they become due, and their long-term liabilities (such as loans) as they become current. These ratios also show the level of cash the municipality has and/or the ability it has to turn other assets into cash to pay off liabilities and other current obligations.

Note The quarterly summary looks at the state at the end of each quarter. If the monthly data is missing for the last month in the quarter, the previous month in that quarter. If all months are missing, that quarter is shown as blank.

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Liquidity Ratio July 2017 – June 2018 Quarter 2 0,15 The municipality’s immediate ability to pay its current liabilities.

About three-fifths of the ratio for similar municipalities in Gauteng: 0,24 About one-fifth of the ratio for similar municipalities nationally: 0,69

Good

More than 1

Bad

Less than 1

Reference: Municipal Budget and Reporting Regulations Formula: = (Cash + Call Investment Deposits) / Current Liabilities = Balance Sheet item codes 1800, 2200, Monthly Actual / Balance Sheet item code 1600, Monthly Actual

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TNB

MetroWatch

qsproducts.co.za

SOUTH AFRICAN PROPERTY REVIEW

TNB3845_QS_Advert_SA_Property_August_2018_Feature_FA.indd 1

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2018/06/08 15:16

MetroWatch Did You Know?

Municipalities don’t manage to collect all of the money they earn through rates and service charges. This measure looks at the percentage of new revenue that a municipality collects. It is also referred to as the Current Debtors Collection Ratio.

Note The quarterly summary looks at the state at the end of each quarter. If the monthly data is missing for the last month in the quarter, the previous month in that quarter. If all months are missing, that quarter is shown as blank.

Current Debtors Collection Rate July 2017 – June 2018 Quarter 2 97,7% The percentage of new revenue (generated within the financial year) that a municipality actually collects.

About the same as similar municipalities in Gauteng: 97,7% About the same as similar municipalities nationally: 95,845%

Good

95% or more

Bad

Less than 95%

Reference: Municipal Budget and Reporting Regulations Formula: = Collected Revenue / Billed Revenue = Cash Flow item codes 3010, 3020, 3030, 3040, 3050, 3060, 3070, 3100 , Monthly Actual / Income and Expenditure item code 0200, 0300, 0400, 1000, Monthly Actual

INCOME Where does Johannesburg get its money from?

Did You Know?

The more a municipality is able to generate its own income, the more selfsufficient it is. Municipalities should not be too reliant on transfers and grants from other spheres of government.

1 Money Generated Locally

2 Money from National Government

79,02%

20,98%

From residents paying for water and electricity, rates, licenses and fines, and from interest and investments.

From the equitable share of taxes, and grants from National Government.

July 2016 – June 2017

July 2016 – June 2017

Reference: Local Government Equitable Share Source: Income & Expenditure Audited Actual Did You Know?

This shows how much of its income a municipality is able to generate itself (through property rates, service charges, etc), compared to how much it receives as transfers and grants from national government.

The more a municipality is able to generate its own income, the more self-sufficient it is.

Where money comes from

Source: Income & Expenditure Audited Actual and Original Budget 78

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MetroWatch

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MetroWatch SPENDING: How money is spent Did You Know?

Employee-related costs are typically the largest portion of operating expenditure, but they should not grow so large that they threaten the sustainability of the operating budget. The normal range for this indicator is between 25% and 40% of total operating expenditure.

Municipalities must guard against spending too much on staff while also making sure they have the people they need to deliver services effectively.

Staff Wages and Salaries July 2016 – June 2017 22,48% Staff salaries and wages as a percentage of operating expenditure.

Within norms: 25% to 40% Outside norms: less than 25% or more than 40% Formula: = Wages & Salaries + Social Contributions / Actual Operating Expenditure = Income & Expenditure item codes 3000, 3100, Audited Actual / Income & Expenditure item code 4600, Audited Actual

Did You Know?

Private contractors are sometimes needed for certain work, but they are usually more expensive than municipal staff. This should be kept to a minimum and efforts should be made to provide services in-house, where possible. This measure is normally between two percent and five percent of total operating expenditure.

Contractor Services July 2016 – June 2017 5,87% Costs of contractor services as a percentage of operating expenditure.

Within norms: up to 5% Outside norms: more than 5% Formula: = Contracted Services / Actual Operating Expenditure = Income & Expenditure item code 4200, Audited Actual / Income & Expenditure item code 4600, Audited Actual

What is money spent on?

Did You Know?

Municipalities spend money on providing services and maintaining facilities for their residents.

Planning and Development Health

Source: Income & Expenditure Audited Actual and Original Budget 80

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FROM FLOOR SPACE TO SHOP SPACE AND RENTAL TO RETAIL

We’ve got a property for you The Bothongo Group owns and manages a broad range of quality commercial, and investment properties, which are situated primarily in Gauteng. Currently, we have various retail property opportunities on offer in the Pretoria CBD. So, if you’re interested in setting up shop and would like to view these prime properties, please visit our website or contact:

Tembela Vantyi Head of Property: Bothongo Group +27 12 320 4421/22 083 494 7587 tembela@bothongo.com

www.bothongogroup.co.za SOUTH AFRICAN PROPERTY REVIEW

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EACH YEAR WE ACCEPT a large number of listings and advertisements from SAPOA professionals and service providers across the entire spectrum of property activities.

Don’t miss out on this well-used, popular industry resource.

SAPOA aims to provide added value by offering the basic listings free of charge to all members. In this respect, we hope that we are assisting you in your marketing endeavours to some extent.

We thank you for your support in previous years. In an effort to improve the look and ease of usage, we have redesigned the directory layout to a four-column grid and have made available certain entries that will stand out from the norm.

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BOOKINGS OPEN TO SAPOA MEMBERS ONLY Booking deadline: 16 November 2018 Material deadline: Logo entries: 23 November 2018 Column entries: 23 November2018 Display advertisements: 30 November 2018 For advertising opportunities and rates contact Pieter Schoeman t: +27 (0)21 856 1276 e: pieter@mpdps.com SOUTH AFRICAN PROPERTY REVIEW

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howmuch.net

The global export economy S President onald Tru p has co plained for so e ti e about S trade deficits ith the orld most recently after the G7 summit in Canada. His rhetoric implies that other countries are en oying assi e surpluses at the e pense of A erican or ers

By Raul - https://howmuch.net/articles/largest-exporting-countries-2017

T

he numbers were obtained from the

Top 10 countries with the most exports in 2017 (US$)

World Trade Organization.

1. China: US$2 263-billion

(The Statistics Database contains the original data.) The World Trade Organization tracks the total value of physical goods each country sends across its borders. These numbers exclude services – we are only focused on physical items. To create the map, we changed the size of the country depending on the value of exports, and we likewise added a shade of blue for easy reference.

This approach highlights the outliers and identifies several key trends.

2. United States: 3.

4.

5.

6.

7.

8.

9.

10.

US$1 547-billion Germany: US$1 448-billion Japan: US$698-billion Netherlands: US$652-billion South Korea: US$574-billion Hong Kong: US$550-billion France: US$535-billion Italy: US$506-billion United Kingdom: US$445-billion

The most obvious insight that our map contains

about international trade is how unequal it is. A few countries dominate the very top of the list, and everybody else falls far behind. The top exporter, China, has 32% more exports than the second-placed Americans. The top three countries generate more exports than the rest of the top 10 combined (US$5 258billion vs US$3 960-billion).

You can see this inequality on our map, and how China, the US and Germany dominate the visual forefront.

The second interesting takeaway is several surprise countries – most notably the Netherlands in fifth place

(US$652-billion). What could the Dutch possibly export to the rest of the world that would land them so high on our list, and give their country such a prominent place on our map? Turns out, they manufacture heavy machinery and oil, both of which spread far and wide on the international market.

There are also a few surprises at the other end of the spectrum. Several countries in southeast Asia are known for having exportdependent economies, yet none of them are anywhere near the top of the list.

Consider where the things in your wardrobe were made – most of the items probably came from Vietnam, Malaysia or Indonesia. None of these countries crack US$250billion in total exports. But also look at Africa, where only a handful of countries have enough exports to make it onto our map. Our visualisation tells a sad story about the development of these economies.

Listening to Trump’s rhetoric, it’s easy to believe the US sells hardly anything to the rest of the world. Our map demonstrates how that’s just not true. With more than US$1,5-trillion in annual exports, Americans stand a lot to lose if the potential for trade war continues to escalate and eventually becomes a reality.

SOUTH AFRICAN PROPERTY REVIEW

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social

ALT Capital Partners launches in Johannesburg ALT Capital Partners hosted its official launch on 4 July at the Webber Wentzel offices in Sandton, Johannesburg

FROM LEFT Sakhile Mazwi, Prishani Satyapal, Kagiso Mokgatle, Tanya van Lill, Ben Kodisang, SAPOA President Ipeleng Mkhari and Craig Wing

A

LT Capital Partners is a private market investor: the business specialises solely in private markets across the entire investment frontier.

Its investment expertise includes unlisted credit, agriculture, real estate, infrastructure, private equity and venture capital.

At the forefront of this venture is founder, Chief Executive Officer and SAPOA Past President Ben Kodisang.

Kodisang is inspired by the opportunity to build and create an alternative investment business that aspires to attract foreign and local investment that seeks to participate in the “Africa rising” narrative.

“Ours is a deep purpose that seeks to exceed the investment expectations of our investors while catalysing growth and development in the economies in which we operate,” says Kodisang. “We believe that success comes from forging

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strong partnerships, having deep local knowledge in our chosen field and always thinking globally.”

His message to the property industry?

“The last few years have been difficult for the real estate industry as whole,” he says.

“As an industry, there is still a lot we can do to resolve the issues around healthcare, education, affordable housing and so on. I would like to request that the industry be open-minded and proactive with regards to where the real opportunities lie – especially those that speak to housing, schools, hospitals and peri-urban areas.”

Speakers on the morning included: CEO of Sustainability Truthing Prishani Satyapal, CEO of SAVCA Tanya van Lill and Craig Wing, Futurist & Business Strategist.

The launch was attended by SAPOA President Ipeleng Mkhari. Andile Khumalo, Chief Investment Officer of MSG Afrika, served as the Master of Ceremonies.

Adrian Boyden with Len van Niekerk

Tswelo Kodisang with Mapule Ramasedi

social

Master of Ceremonies Andile Khumalo

FROM LEFT Duarte de Silwa, Matthew Simpson and Madapu Nhlapo

FROM LEFT Kelsey Clark, Matthew Simpson and Lawrence Khoza

Mbuso Madondo

FROM LEFT Sduduzo Shangase, Dr Zandile Makhaye, Sarah-Jane Wagg and Fawzia Suliman

Thabo Dioti

FROM LEFT Sulayman Abdullah, Shiwgai Ngara and Trisha Naidoo

Nolwazi Sokhulu

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social

2018 BOMA International Conference

International delegation

SAPOA CEO Neil Gopal with SAPOA President Ipeleng Mkhari

Henry Chamberlain’s state of the industry address

T

his year’s Building Owners & Managers Association (BOMA) International Conference & Expo, which took place from 23 to 26 June in San Antonio, was another one for the books.

Thousands of property professionals from around the world, including SAPOA President Ipeleng Mkhari and CEO Neil Gopal, gathered in the heart of Texas for best-in-class professional development, unmatched networking opportunities, and solutions to meet operational challenges and enhance asset performance.

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2017-2018 Chair Rob Brierley interviews the Bush twins, Barbara and Jenna

social

General session panel discussion

BOMA Chair Brian Cappelli

TOBY Awards swearing in of new Chair, Brian Cappelli

Expo trade show floor

Welcome party

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social

Getting on par at the Port Elizabeth Golf Day

FROM LEFT Gianni Geminiani, Hendrik White, Colin Meyer, Enrico Flavio, Mark Hunter-Smith and Henk Myburgh (Makana Brick Sponsors)

G

orgeous greens – and weather – lent itself to a great round of amateur golf on 31 May 2018 at the Port Elizabeth Golf Club. The region was also honoured to have the Executive Mayor of Nelson Mandela Bay Metropolitan Municipality Councillor Athol Trollip as well as Councillor Whitfield in attendance.

The event was held in collaboration with the Nelson Mandela University’s Department of Construction Management.

Sixty-eight players on an 18-hole pitch meant there would be a close call for top honours, but it was Stacey Schnablegger and Scott Tarr who clinched the first prize. Second prize was awarded to James Conyers and Brett Weddell. Mark Crane and Riaan Richter took third prize.

We would like to extend our gratitude to Halfway House sponsors SVA International and prize-giving dinner sponsors Makana Brick for their valuable contribution to making the day a success.

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FROM LEFT Leandre Nel, Dumisani Madi, Deon Hatting, Riaan Richter, Derick Kirsten, Executive Mayor Athol Trollip, Johan de la Querra, Mark Crane, Councillor Andrew Whitfield and Ronnie Fourie

FROM LEFT Dudu Ndhlovu, Dan Ngcaphe, Madoda Ngqono and Mbulelo Ngqono

social

FROM LEFT Dudu Ndhlovu, Dan Ngcaphe (7th place) and Colin Meyer

FROM LEFT Henk Myburgh, Colin Meyer and Adam Sullivan

Mark Bakker

FROM LEFT James Beale, Matthew Keogh (6th place) and Colin Meyer

Leandre Nel with Lerato Malatji

FROM LEFT Dan Ngcaphe, Mbulelo Ngqono and Madoda Ngqono

FROM LEFT Mida Kirova, Nigel Burls and Steve Sutcliffe

FROM LEFT Justin Smith (Longest Marshmellow Drive) with Colin Meyer

Stacey Schnablegger

HALFWAY HOUSE SPONSORED BY

PRIZE-GIVING DINNER SPONSORED BY

Leandre Nel with Andrew Whitfield

FROM LEFT Deon Schmidt, Adam Sullivan (Longest Walk) and Colin Meyer

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social

KwaZulu-Natal Breakfast Session:

Land expropriation without compensation

By Lyse Comins

Michael Jackson with SAPOA KZN Chairperson Bernadette Khumalo

T

he South African property sector has an important role to play in the debate on land expropriation without compensation, and in helping prevent an implementation that could have a potentially disastrous impact on the economy. This was the word from Cox Yeats Managing Partner and attorney Michael Jackson, who shared his insights regarding the policy with members of SAPOA at a networking breakfast at the iconic Durban Country Club.

Ahead of his informative talk, which unpacked legislation around land and mineral rights, SAPOA members discussed their opinions over strong coffee, a hot breakfast and a selection of cheeses and meats from the generously presented continental spread.

SAPOA’s KwaZulu-Natal Chairperson Bernadette Khumalo opened the event, briefly highlighting the work the association has been doing with the eThekwini Municipality, and encouraging members to get involved in tackling issues ranging from infrastructure to policy and legislation. Jackson then presented an overview of legislation affecting land and natural resources, and highlighted a Constitutional Court 90

SOUTH AFRICAN PROPERTY REVIEW

judgment that signified a warning for the property sector.

While there appears to be a conservative and a radical camp within the ANC regarding the call to expropriate land without compensation, Jackson said it was difficult to determine whether it was just political rhetoric or something to be seriously concerned about. He said Section 25 of the Constitution provides for compensation that is “just and equitable” when land is expropriated to address the imbalances of the past, and market value was just one of the factors that must be considered, allowing for the potential that compensation may not necessarily be market value. “It is clear the conservative elements in the ANC seem to think that Section 25 is adequate, and that the state simply needs to act in terms of Section 25 and use its provision,” he said.

He highlighted recent land bills, a high-level report and a Department of Land Affairs audit report released in December 2017, which for the first time classified land ownership by race.

The audit did not include state, trust, community structure and companyowned land, which comprises 60% of

land in the country. It found that whites own 72% of agricultural land, Africans 4%, coloureds 15% and others five percent, while in urban areas Africans own 56% of the land, whites 26%, coloureds nine percent and Indians seven percent. Sectional title ownership was split, with whites owning 21%, Africans 17%, and Indians and others six percent each.

Jackson turned his focus to the Mineral and Petroleum Resources Development Act, which abolished the right to privately own minerals, allowing old rights holders to apply for a licence to use minerals, which are now under the law owned by “the nation” with the state as custodian. Old mineral rights owners who were already exercising their rights could convert their rights to a licence, conditional on obtaining a BEE partner and complying with the mining charter. But if old rights owners were not already making use of the rights, then they had to prove they intended to do so, or the state could redistribute the rights without paying compensation.

If a similar law was implemented in relation to land, it could lead to the abolition of private property ownership

social

Nonhlanhla Khoza with Xoli Shabalala

FROM LEFT Faried Mohamed, Kamla Singh and Jayanthie Tuplah

FROM LEFT Wynand du Preez, Ted Fountain, Sifiso Msomi, Vivian Appalsamy and Nellie Moodley

FROM LEFT Mncedisi Mtshali, Bev Nelson, Anton van Weers and Gary Gould

FROM LEFT Yogan Govender, Elizabeth Morgan, Frank Reardon, Khangezile Mthethwa and Carol MacDonald

and financially impact owners of vacant land and empty buildings.

“AgriSA took this issue to the Constitutional Court, acting for a coal company that had unused rights, and the court concluded that this construct was constitutional and did not violate Section 25 of the Constitution – and this was despite there being no comparable bill in the rest of the world that allows this,” Jackson said. “The Constitutional Court said that, provided the core right was retained (which was the right to use the minerals if you wanted to use the minerals), this did not constitute expropriation. It also said it is not an expropriation because the state did not acquire the mineral rights – the nation acquired the mineral rights.”

The minority judgment of the court warned at the time that, “If private ownership of minerals can be abolished without just and equitable compensation by the construct that when the state allocates the substance of old rights to others, it does not do so as the holder of those rights, what prevents the abolition of any or all property in the same way?”

“The fear that sits with a lot of practitioners and experts is whether the state is trying to go along the same lines as it did with minerals,” said Jackson.

“Is it contemplated that the state will introduce a new law along the line that all land now vests in the nation?”

Jackson urged members to get involved in submitting representations to the government on the matter, and to seriously study the potential economic impact of the policy on the sector and suggest ways of implementation that will not be disastrous.

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off the wall

South Africa’s broadband speeds vs the world’s

Where South Africa sits in global broadband speed ranking Based on more than 63-million speed tests in 189 countries

Ranking: #80 4,36Mbps South Africa

First published by Businesstech.co.za

U

K broadband aggregator Cable.co.uk has compiled a list of the best and worst global broadband speeds, ranking South Africa with the 80th-fastest average in the world.

According to Cable, its rankings are based on an analysis of more than 63million speed tests worldwide conducted in the 12 months to 10 May 2017. The data was collected by M-Lab – a partnership

between New America’s Open Technology Institute, Google Open Source Research, Princeton University’s PlanetLab, and other supporting partners.

The data revealed that the five fastest countries have download speeds about 40 times faster than the five slowest.

Singapore tops the table at 55,13Mbps; Yemen is more than 162 times slower at just 0,34Mbps.

South Africa ranked 80th out of the 189 countries assessed, with an average speed of 4,36Mbps, based on 93 400 tests from 44 000 unique IPs. At this rate, it took the group just under three hours and 55 minutes to download a 7,5GB file. This is compared to the 18 minutes and 30 seconds it took in Singapore, and the 50 hours (more than two days) it took in Yemen.

Twenty of the top 30 fastest-performing countries are located in Europe, with seven in Asia, two in North America and one in Oceania.

By contrast, 17 of the 30 slowest-performing countries are located in Africa, with seven in Asia, six in South America and one in Oceania.

One-hundred-and-thirty-nine countries failed to achieve average speeds above 10Mbps, a speed deemed by telecoms watchdog Ofcom to be the minimum required to cope with the needs of a typical family or small business.

Top broadband speeds in Africa Country

Average speed (Mbps)

Time to download 7,5GB file

Kenya

8,83

00:01:55:55

Seychelles

5,84

00:02:55:21

Morocco

4,38

00:03:53:40

South Africa

4,36

00:03:54:54

Tunisia

3,50

00:04:52:23

Madagascar

3,49

00:04:53:15

Nigeria

3,15

00:05:25:27

Zimbabwe

2,49

00:06:50:34

Zambia

2,45

00:06:58:05

Ghana

2,30

00:07:26:11

Liberia

2,12

00:08:03:18

Uganda

2,12

00:08:04:00

Rwanda

2,11

00:08:05:02

2

00:08:32:04

1,81

00:09:26:07

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Countries with the fastest broadband speed

Ranking: #1 55,13Mbps Singapore

Ranking: #2 40,16Mbps Sweden

Ranking: #3 33,54Mbps Denmark

Ranking: #4 29,13Mbps Norway

Countries with the lowest broadband speed

Ranking: #197 0,6Mbps Somalia

Ranking: #198 0,56Mbps Turkmenistan

Ranking: #199 0,49Mbps East Timor

Ranking: #200 0,34Mbps Yemen

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