South African Property Review August 2015

South African Property Review

PROPERTY SOUTH AFRICAN

August 2015

REVIEW

CELEBRATING WOMEN’S MONTH

From SAPOA to the world

s●

series D L

●

monthly cou n Our

Th e WOR

Women in Property

BOMA Reaching across international bounderies

WITS ON SHOW The marriage of architecture, Science and Mathematics

by-country focu try-

August 2015

Germany: Beyond the Berlin Wall

Cover with Spine august.indd 1

2015/07/20 9:43 AM

interview

ONE STOP SHOP Driven by excellence and forward thinking, we’re distinguished by our proud track record as Africa’s leading trusted provider of a wide range of integrated property solutions and services.

• • • • • • • • • • •

Commercial Property Management Retail property Management Consulting & Research Valuations & Advisory Services Brokerage Services & Investment Consulting Retail Leasing & Consulting Corporate Real Estate Management Bundled Services – Integrated Offerings Facilities Management Project Management Development Management

OFFICES: BOTSWANA . GHANA . DEMOCRATIC REPUBLIC OF CONGO . KENYA . LESOTHO .

NAMIBIA . NIGERIA SOUTH AFRICA . SWAZILAND . ZAMBIA . ZIMBABWE LEGAL ENTITIES: CAMEROON . COTE D’IVOIRE GABON . SENEGAL . TANZANIA . UGANDA

CONTACT US Head office (Johannesburg): +27 (0) 11 911 8000 Pretoria: +27 11 080 9600 | Durban: +27 31 534 2500 | Cape Town: +27 21 943 1000 INFO@JHI.CO.ZA

|

WWW.JHI.CO.ZA

S EE P R OP ERTY DIFFEREN TL Y

EXCELLERATE FACILITY MANAGEMENT . EXCELLERATE BRAND MANAGEMENT . EXCELLERATE UTILITIES MANAGEMENT JHI . JHI RETAIL . JHI ADVISORY . JHI CRES . ENFORCE . INTERPARK . SPARK . STERIKLEEN . ERADICO . KATANGA 28C H A TSOUTH T E L S . AFRICAN F R E S H . PROPERTY F I R S T T E CREVIEW HNICAL . SYENAP PROPERTIES

a4 ad template.indd 28

2015/07/17 11:03 AM

contents

August 2015

PROPERTY SOUTH AFRICAN

Abland

REVIEW

South African Property Review

PROPERTY SOUTH AFRICAN

August 2015

REVIEW

CELEBRATING WOMEN’S MONTH

From SAPOA to the world

s●

L

D series

WITS ON SHOW The marriage of architecture, Science and Mathematics

●

monthly cou n Our

The WOR

Women in Property

BOMA Reaching across international bounderies

ON THE COVER The University of the Witwatersrand in Braamfontein celebrates its 90th birthday by completing the new maths and science precinct based on the amalgamation of five mathematics schools into a Mathematical Sciences faculty

Abreal

by-country focu try-

August 2015

Germany: Beyond the Berlin Wall

Cover with Spine august.indd 1

2 4 6 8 9 12 14 16 20 26 30 34 38 41 42 44 52 57 58 60 62 64

2015/07/20 9:43 AM

From the CEO From the Editor’s desk Industry news From the CEO’s desk BOMA Conference Building in line with global standards Legal update Land reform Planning and development Planning with rurual communities Education, training and development Theme leader SAPOA women in property SA women in history Gender equality: a battle half won Women of influence Iron-fisted!

Profiles Maximising the services of the property management company Grocery retail sector: shopping for solutions SAPOA Board Invested in property On show Design for science Eye on the world Germany Understanding green building and its long-term benefits SAPOA events Office Vacancy Survey What’s on Upcoming events Fun & quirky Adrian Maserow unravelled Off the wall Comfort with the bare necessities

Oilgro

FOR EDITORIAL ENQUIRIES, email nthabiseng@mpdps.com or 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 e: sales@sapoa.org.za Editor in Chief Neil Gopal Editorial Advisor Jane Padayachee Managing Editor Mark Pettipher Editor Nthabiseng More Copy Editor Ania Rokita Production Manager Dalene van Niekerk Designers Wade Hunkin, Dirk Knoesen Sales Riëtte Stevens Finance Susan du Toit Contributors Anne Schauffer, Eugenia Makgabo, Lekgolo Mayatula, Martin Ferguson Photographers Mark Pettipher, Xavier Sauer 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.

P R O P E R T Y

F U N D

Printed by Designed, written and produced for SAPOA by MPDPS (PTY) Ltd e: mark@mpdps.com

Contents_AUG_SUBBED rev 1.indd 1

e: david@rsalitho.co.za

2015/07/20 2:32 PM

from the CEO

Back to basics Creating world-class cities is an imperative that requires radical thinking and a strong focus on the basic needs of communities

C

ities are home to the majority of the people in the world, with urbanisation ranging from 82% in North America to 40% in Africa. Although most of the African population is still living in rural areas, it is expected that the urbanisation trend will grow over the next three decades.

This makes the issue of creating sustainable, liveable cities a pivotal agenda that requires dynamic solutions from governments and the private sector. In some instances existing cities may need to be rethought and repositioned to reflect current trends, attract communities and create sustainable business hubs.

This year, one of the most discussed topics at BOMA International’s Every Building Conference & Expo was the successful revitalisation of downtown Los Angeles (LA), which went from a crime-ridden, sparsely populated city on the brink of becoming a ghost town to a booming town in a short time span.

Just 16 years ago, the city was home to a meagre 18 800 residents; in recent years, residency has grown to an impressive 54 000, and judging by the developmental activity taking place there, the upward trend is set to continue. As evident in the residential uptake in LA, liveability is critical to the establishment of a sustainable commercial centre as it has a direct correlation with the economic growth and stability of a region.

2

As part of the BOMA conference, delegates visited downtown LA to see some of the 92 projects that are currently under way, including a new museum called The Broad, the expansion of an open-air retail mall, new adaptive-reuse creative office space, and the tallest building west of the Mississippi – The Wilshire Grand Hotel – scheduled for completion in 2017.

While infrastructural development is a key factor in creating a liveable city, the attributes of creating such a city are not always clearcut because, for some, liveability is inherently tied to physical amenities such as parks, green spaces and proximity to shopping centres. Others rank cultural offerings, career opportunities, economic dynamism or some degree of reasonable safety within which to raise a family as priority deciding factors.

In the case of downtown LA, a privatesector investment of US$20-billion towards the revitalisation programme provided the desired results and has assisted in creating: ●● An expanding residential base ●● A established transportation hub – downtown LA is the core of southern California’s public transportation ●● A cultural and entertainment centre – downtown has become the hub of entertainment in LA, featuring concerts, sporting events, theatre, museums and cultural events that appeal to all demographics The Safe Cities Index 2015, an Economist Intelligence Unit report, measures the liveability and safety of cities according to four categories: digital security, health security, infrastructure safety and personal safety.

In Africa, Cape Town and Johannesburg are ranked among the top five most liveable African cities, alongside Accra, Nairobi and Gaborone. According to the United Nations, none of the world’s regions is urbanising as fast as Africa, and it is estimated that most of the continent will cease to be mostly rural by 2030.

Among the common attributes that make cities appealing are: ●● Security – In the South African context, crime is a major hindrance. A survey by the United Nations Office on Drugs and

Crime ranked South Africa 10th out of 60 countries for total crime per capita for the period 1998-2000. The survey alluded to inequality, poverty, unemployment, social exclusion and marginalisation as some of the causes of high crime levels. When crime is not addressed, investments will fail to take place. ●● Inclusiveness – The more marginalised the population is, the less likely that it will be attractive. Social cohesion and the availability of public spaces that encourage inclusiveness are usually clear indicators that a city is liveable. ●● Accessibility – Infrastructural development, access to a reliable transport network and roads, and access to medical care and educational institutions are integral to attracting residents to a particular area. Cities such as Nairobi and Cape Town have efficient Bus Rapid Transport systems that contribute to their attractiveness. ●● Environment – The green agenda is fast becoming a priority as the world recognises the importance of combating climate change.

Attracting communities to cities is an imperative – but it should also be noted that a liveable city is not automatically businessfriendly. A recent World Bank report titled “Doing Business In South Africa: Going Beyond Efficiency” benchmarks nine of the country’s largest urban areas and four ports across six topics: starting a business, dealing with construction permits, getting electricity, registering property, enforcing contracts and trading across borders.

The report indicates that doing business in this country is marred by red tape and ranks South Africa 61st out of 189 economies on the ease of starting a business.

These push-and-pull factors have to be taken into consideration when creating worldclass living and business spaces. To attract the Millennial generation, creating adaptable spaces that meet and surpass global technological advances will prove invaluable.

Neil Gopal, CEO

SOUTH AFRICAN PROPERTY REVIEW

CEO_AUG_SUBBED.indd 2

2015/07/20 9:57 AM

interview

SOUTH AFRICAN PROPERTY REVIEW

a4 ad template.indd 29

29

2015/07/17 10:50 AM

from the Editor’s desk

Women personify unity Women across the globe, particularly in South Africa, have proved that when there is agreement and a common agenda, a lot can be achieved

“Neither the chains of dictatorship nor the fetters of oppression can keep down the forces of freedom for long” – Angela Merkel, Chancellor of Germany

4

S

uddenly plunged into economic upheaval, Greece seems to be on the brink of collapse. After a six-year recession, the European country finds itself in uncharted territory after residents cast a historic vote against European austerity measures demanded by creditors in return for rescue loans in a critical referendum. This sort of situation is enough to scare anyone, which explains why residents quickly rushed to withdraw their savings from banks when they realised that they were on the brink of an economic crisis.

Greece’s Parliament reluctantly approved austerity measures required as a condition of a bailout deal in the end. This agreement split the country’s ruling party, and the prime minister warned that the stringent measures would unleash new pain on a population already suffering from the worst downturn in any developed nation since World War II. This is without a doubt the start of a turbulent future for Greece – but once again, if anything, what the Greeks are going through proves how much can be achieved when a group is in agreement.

This reminds one of a time when South Africans – women in particular – also harnessed the power of unity.

Interestingly, and a fact that is often overlooked, when it came to the fight for women’s rights, women of all colours stood together and demanded equal rights for all.

When one considers the likes of Barbara Hogan, Frene Ginwala, Helen Suzman and many others, it is clear that the struggle for women empowerment cuts across racial lines as

women often face struggles under patriarchal systems in one form or another. Women have indeed proved the saying “you strike a woman, you strike a rock” true, and they continue to do so daily.

It is encouraging to see the changes that this country has gone through over the years and know that engineers, pilots, nuclear scientists and electricians are no longer males by default. Women are now able to choose which professions they want to follow, and in some instances are even able to take the reins and lead in traditionally male-dominated industries.

In this issue of the South African Property Review, we celebrate the role that women have played in history, and highlight some powerful women across the globe who have proved capable of achieving greatness beyond limitation.

SAPOA embraces transformation and celebrates women from different business fraternities. As such, we also profile some of SAPOA’s leading women who are instrumental in promoting the mandate of the organisation and use their expertise to address the issues faced by the commercial property sector.

We are also proud to have had three Past Presidents and a current President Elect who are female. As an organisation, SAPOA relishes the opportunity to access a wide range of skills and expertise from these women, who are established decision-makers in the organisations they work for and in the property industry as a whole. As SAPOA President Elect – and a leader in her own right – Nomzamo Radebe says, women have come a long way but “we can always do better”.

As a new member of the SAPOA team, I was enthralled by how the organisation embraces diversity. I’m also delighted to join the SAPOA team as editor for the organisation’s publications, and I look forward to delving into the issues affecting the commercial property sector in South Africa and beyond.

We will also be doing more interviews with industry leaders and attending SAPOA and industry events, where we hope to make acquaintance and network with some of you.

Please do contact us with any story suggestions, industry news or invitations to events your organisations are embarking on.

I look forward to hearing from all of you.

Nthabiseng More, Editor

SOUTH AFRICAN PROPERTY REVIEW

Ed's Letter_AUG_REV 2_SUBBED.indd 4

2015/07/20 9:59 AM

interview

T: +27 11 312 2537 / 2584 F: +27 11 805 1950 www.gladafrica.com

Engineering Project Management Environmental Management SOUTH AFRICAN PROPERTY REVIEW

GladAfrica Advert_REPRO_5mm.indd 1 a4 ad template.indd 29

29

2015/04/15 2015/07/17 11:35 10:51 AM

industry news

Umhlanga’s Pearl Sky marks final phase of “Pearls” development

U

mhlanga, KwaZulu-Natal’s prime coastal business and travel spot, will soon see the completion of Pearl Sky – the final phase of the luxury Pearls of Umhlanga development that has been 11 years in the making.

Anand Joseph, Regional Executive of Nedbank Property Finance for KwaZuluNatal, says the bank has approved funding of R1,3-billion to Pearls of Umhlanga (Pty) Ltd to construct the final phase, completing the Pearls of Umhlanga residential development.

Set to be a prime space for the province’s high-end market, and a welcome addition to the city’s travel and tourism industry, Pearl Sky will boast 414 new residential apartments in addition to the 260 apartments already built and occupied.

The apartments, the majority of which are sea-facing, will complement the existing prominent properties in the area.

Pearl Sky will include a boutique mall measuring about 12 600m², featuring retail, business and wellness facilities. The retail centre is set to open for business

by November 2016. The first residential

The “Pearls” of Umhlanga Rocks

apartments are due for completion by November 2017, with the development scheduled for completion in 2018.

The “Pearls precinct”, as it’s known in the South African market, has escalated in value since launch in 2005, enhancing property values in the surrounding area.

Selling prices achieved in Pearl Sky are

now competing with prices in Cape Town and Johannesburg, confirming the value in this investment. Given its sought-after location and solid reputation as a prestigious place in which to live, play and invest, it is anticipated that this trend will continue into the future. +27 (0)11 295 8045, Nedbank.co.za

Tshwane’s inner city regeneration strategy

O

n 14 July, the City of Tshwane hosted a property developers’ workshop dealing with the Inner City Regeneration Strategy as part of Tshwane City Vision 2055. The objective of the workshop was to engage with various sector stakeholders, culminating in the Capital City Summit.

Deputy City Manager Lindiwe Kwele shared the municipality’s ideals and

strategy for 2055, mentioning that the 2020s would be the gamechanging decade.

The key points of discussion included: ●● The role of the real estate sector in the remaking of the capital ●● The issues hindering the real estate sector in ensuring inclusive growth and development in Tshwane

●● The kind of collaborative interventions required to overcome these challenges, specifically in relation to the first decade of implementation of Tshwane Vision 2055. The interventions included the urgent establishment of the Capital City Commission, encouraging active engagement from all sectors as well as regular meetings with industry bodies.

New Public Relations Officer at SAPOA

S

APOA is proud to announce the appointment of Maud Nale to the position of Public Relations Officer.

Nale comes to SAPOA with a sound knowledge of public relations, with experience gained within the Naspers group of companies, including MIH Holdings and M-Net. She holds a BA degree in communication science as well as marketing management and project management diplomas.

In her role, Nale will deal with all SAPOA media communication and public relations, which will include

6

handling all public relations programmes, and dealing with company literature, from advertising, marketing campaigns and communications to updating and maintaining the SAPOA website. With experience in electronic media, she will guide and manage SAPOA’s e-mail campaigns and social media exposure.

The SAPOA team welcomes her to her new role and we wish her well. For any PR-related queries, please contact Maud Nale on +27 (0)11 883 0679 or profficer@sapoa.org.za.

Maud Nale, SAPOA Public Relations Officer

SOUTH AFRICAN PROPERTY REVIEW

News Review_AUG_Rev 1_SUBBED.indd 6

2015/07/21 2:05 PM

industry news Thulamela’s new R950-million Thavhani Mall development a step closer

T

havhani Property Investments and the Thulamela Municipality announced the transfer of the land on which the new 50 000m² Thavhani Mall will be developed.

The Limpopo land transfer brings the landmark R950-million mall development a step closer,

opening the way for construction to commence soon. The prime 27-hectare site was purchased from the municipality by the developers for the mall development, and as part of a new commercial property development node in the bustling Limpopo town.

“This is a huge step towards the achievement of our vision of attaining city status by 2030,” says Mayor Councillor Mahosi NG of Thulamela Local Municipality.

And Patrick Flanagan, Executive Director of Flanagan & Gerard Property Development and Investment, a shareholder in

Performance of South African REITs analysed from capital gains and profitability perspectives

T

he latest research from JLL South Africa analyses the performance of the South African real estate investment trusts (REITs) from a capital gains perspective and a profitability perspective in order to highlight the drivers of investment returns.

The research report outlines the investment value of the REITs as well as their long-term potential in the current economic climate.

“REITs convert a ‘real’ asset, being property, into a ‘monetary tool’, which can also be traded on the stock exchange and can be subjected to volatility and the effects of investor sentiments,” says Zandile Makhoba, Head of Research: South Africa at JLL. “Investors benefit from the capital gain because of the growth in the share price, and from the dividends derived from profit performance of the REIT, so the

investment gains can be analysed from the drivers of capital gains and from the drivers of profitability.”

From a capital gains perspective, the report discusses South Africa’s experience of US quantitative easing (QE) in the past six years (which introduced access liquidity to the market) and how it’s played a significant role in the performance of the REITs. The REITs experienced 13,9% annual growth during the period in which the US QE programme ran, setting the tone for weaker performances in the REITs when QE sessions ended, and recoveries whenever the programme was renewed.

With the introduction of the European Central Bank’s QE programme in 2015, the report looks at the possible effects on the South African REITs. From a profitability perspective, the

report reveals that although REITs have remained profitable, this has not been balanced across the different trusts. The report compares the best and worst performers by profit growth to highlight the characteristics of the trusts that have delivered returns in the challenging economic environment. A review of the REITs and the key driving factors

Thavhani Property Investments, says, “Thavhani Mall will be a topnotch regional shopping centre.

With more than 106 retail stores, restaurants and service outlets, the people of Thulamela will be delighted to have access to a modern shopping mall.”

Thavhani Mall’s development will see several new retailers coming into the town. The mall will have a Pick n Pay and a Super Spar as its two supermarket anchors. Other big brands set to be part of the tenant mix include a Woolworths fashion and food store; the Edcon group’s Edgars, Jet and Legit; the Foschini Group; Truworths; Mr Price Group; Clicks; and Pepkor. A number of national food chains have also already been secured as tenants, including Spur, Panarotti’s, KFC, McDonald’s, as well as all of the major banks. +27 (0)10 590 4867, Fgprop.com

that contribute to a profitable property portfolio reveals that office-heavy REITs produced the highest profit growth in 2014, with retail-heavy investments coming second. “While consumer confidence has weakened from historical levels, South Africa is a consumption-led economy and is likely to continue to gain from retail growth, even if it shows marginal slowing during 2015,” says Makhoba. +27 (0)11 507 2200, Jll.co.za

Out with the old, in with the new

S

APOA is implementing a “no-spam” policy. Going forward, all education and training, events and industry-related news will be updated daily on our website and social media pages.

Newsletters will be reserved for urgent industry updates.

We encourage members to visit our website for daily updates, and to follow our social media pages and share industry-related news with us. Do you have any new company appointments or promotions that you would like to alert the industry about? Visit Sapoa.org.za, find us on Facebook (SAPOA_SA) and follow us on Twitter (@SAPOA_SA).

SOUTH AFRICAN PROPERTY REVIEW

News Review_AUG_Rev 1_SUBBED.indd 7

7

2015/07/20 10:40 AM

from the CEO’s desk

PRIVATE BAG X10 BENMORE 2010

EAAB HOUSE 63 WIERDA EAST ROAD WIERDA VALLEY SANDTON

TEL 011 880-9918 FAX to FAX 086 586 5917

16 July 2015 CEO Neil Gopal OA) South African Property Owners Association (SAP P O Box 78544, Sandton 2146 Dear Neil, Re: SAPOA 2015 contribution to the Property Sect

or Charter Council

receipt of SAPOA’s 2015 member annual The Property Sector Charter acknowledges the support the Property Sector Charter contribution of R304 380.00 which is intended to s.

Council (PSCC) office with its operational function to thank SAPOA for undoubted support The Property Sector Charter Council would like erty Sector. The benefits of your support and commitment to transformation of the Prop Property Charter has been able to have been far reaching especially with what the we are about to achieve the aligned accomplish to date and most importantly what property sector code. our goal and we would like to thank We certainly feel that we are closer to achieving get where we are. your organization for making it possible for us to Once again, thank you for your contribution.

Yours sincerely Portia Tau-Sekati CEO – PROPERTY SECTOR CHARTER COUNCIL

8

FOR S E I LOBB U YO

SOUTH AFRICAN PROPERTY REVIEW

Neil's Letters Aug.indd 8

2015/07/20 10:43 AM

BOMA Conference

Building in line with global standards The Building Owners and Managers Association (BOMA) International hosted the 2015 Every Building Conference & Expo in Los Angeles, USA

By Nthabiseng More

SAPOA CEO Neil Gopal, Diane Greninger, BOMA International Former Chair and CEO Richard Greninger and David Chen of BOMA China

B

OMA International hosted commercial real estate’s most important event of the year, the annual Conference & Expo at the awardwinning Los Angeles Convention Center. The event is pivotal for property professionals who are keen on crafting their success in the dynamic business of office, industrial and mixed-use property management.

The Conference recorded its highest attendance of 3 400 delegates, comprising of BOMA International’s members and nonmembers: leasing professionals, building owners, managers, developers, corporate facility managers, asset managers and service providers. With members from 91 US associations and 17 international affiliates, BOMA aims to advance a vibrant commercial real estate industry through advocacy, influence and knowledge.

This year’s BOMA Every Building Conference & Expo boasted more than 450 exhibits from the industry’s leading providers,

SAPOA President Mike Deighton, Neil Gopal and BOMA International Chair and Chief Elected Officer Kent Gibson

and featured special trade-show exhibit areas dedicated to new technologies and green solutions. There was a wide array of discussion topics at the event, including the revitalisation of downtown LA’s commercial real estate, and a focus on industrial spaces, green buildings and others.

The International Council As one of BOMA’s 17 international affiliates, SAPOA, represented by Chief Executive Officer Neil Gopal and current SAPOA President and Managing Director of Tongaat Hulett Developments Mike Deighton, attended the Conference and participated in the International council workshop.

The International Council consists of real estate associations from around the world that have affiliated with BOMA International.

Its mission is to advance global cooperation within the world community of commercial real estate by creating a more informed marketplace.

SOUTH AFRICAN PROPERTY REVIEW

BOMA 2015_AUG_REV 2_SUBBED.indd 9

9

2015/07/21 2:08 PM

BOMA Conference

Neil Gopal at the International Council session

Gopal, who also chairs the BOMA International Council, introduced guest speakers at the event where issues affecting the global commercial property market were discussed.

BOMA International President and COO Henry Chamberlain discussed the two-year implementation of BOMA’s Global Strategic Plan, while BOMA’s outgoing Chair and Chief Elected Officer for 2014 to 2015 John Oliver spoke about international travel insights. Newly appointed BOMA International Chair and Chief Elected Officer Kent Gibson tackled the International Property Measurement Standards Update.

Gopal and Deighton believe the Conference is a vital tool in helping SAPOA and its members stay in tune with the rest of the world in terms of property trends and the property market as a whole.

Once an association affiliates with BOMA International, as SAPOA has done, it is automatically a member of the International Council. The high-level networking and information sharing are just two of the benefits enjoyed through participation in the International Council programming.

This, Gopal says, is an integral part of staying abreast with international news and latest developments in the global market.

The main benefits of the international council include access to: ●● Emerging trends in commercial property ●● Reliable information on doing business in other countries ●● Investment opportunities in emerging markets ●● Strategic asset management issues to drive high performance buildings ●● Improving investment returns and shareholder value.

State of the industry

BOMA International Vice President of Marketing and International Affairs Lisa Prats with Neil Gopal

10

Chamberlain presented his 2015 state of the industry address, an in-depth look at how commercial real estate is performing and how the industry is changing in the wake of new technology, innovation and more.

He discussed the issues most prevalent on the minds of BOMA members and relayed his optimism.

Chamberlain also noted that the future of the commercial property space is somewhat uncertain due to external factors, such as the economic hardships in Greece and the talk that Puerto Rico may default on its debt, among others. Some of the key issues he addressed include:

●● Growth in the US office market, which is now at about 15,6% vacancy – still not at the pre-recession rate of about 13%, but showing great post-recession improvement ●● Technological advancement in the property industry. We should expect to see more change in the next five years than we saw in the previous 20, including more growth in robotics and even artificial intelligence ●● Investment in young professionals.

The preconceived notion of the younger generation being as lazy and disloyal is to be discarded as they are future market leaders.

Conference speakers The Conference was graced by high-calibre speakers, including Dr Linda Talley, who worked with MBA students and noted that many had global misconceptions about leadership, and presented some of her findings at the BOMA International Conference & Expo international affiliate breakfast.

She says it is a myth that leaders are born.

That only accounts for one-third of a leader; two-thirds of a leader is made, she says. She shared a favourite proverb: “Don’t stand by the water and long for a fish,” she said. “Go home and weave a net.”

In line with the theme of empowerment of women, this year the Conference featured the inaugural BOMA Women in Commercial Real Estate Programme and breakfast, which was attended by 200 women – all keen to participate in the discussion around their role in the industry.

There were numerous other speakers at the conference addressing several issues.

Among them, speaking about corporate sustainability strategies, was Brenna Walraven, who was BOMA International’s first female Chairman and a Past President of BOMA Orange County.

She spoke of living one’s passion, and she said that she would never have considered herself a risk-taker… But after 16 years of working in real estate, she went out on her own in 2014. “I live and work my passion,” she says. “Life is short, so do what makes your heart sing.”

Acclaimed late-night TV show host Jay Leno, whose Emmy award-winning show The Tonight Show With Jay Leno is a worldwide sensation, also took to the stage at the BOMA International Conference & Expo general session and left delegates in awe with his usual light-hearted brand of humour.

SOUTH AFRICAN PROPERTY REVIEW

BOMA 2015_AUG_REV 2_SUBBED.indd 10

2015/07/20 11:42 AM

BOMA Conference

BOMA International Council delegates. Neil Gopal chairs the BOMA International Council

BOMA International Immediate Former Chair and CEO John Oliver with Karen Oliver and Neil Gopal

The International Council session chaired by Neil Gopal

Neil Gopal with Director: Head of Customer Experience at JLL Peter Merrett

H Gopal, Neil Gopal and Mike Deighton SOUTH AFRICAN PROPERTY REVIEW

BOMA 2015_AUG_REV 2_SUBBED.indd 11

11

2015/07/20 11:43 AM

legal update

Land reform: preservation and development of agricultural land framework The Subdivision of Agricultural Land Act was passed in 1970 to prevent the subdivision of agricultural land into uneconomic land units. The Act provided that land which historically fell outside the area of a municipality or town could not be subdivided without the consent of the Minister of Agriculture

Eugenia Makgabo is an Admitted Attorney of the High Court and Legal Manager at SAPOA

I

n 1998, Parliament passed a law repealing the Subdivision of Agricultural Land Act but the implementation of this law has not yet been brought into effect.

In the Government Gazette of 13 March 2015, the Minister of Agriculture published the Draft Policy and Bill on the Preservation and Development of Agricultural Land. Comments on the Policy and Bill were due on 30 May 2015. The Bill is to replace the Subdivision of Agricultural Land Act, and its aim is to protect agricultural land. Unfortunately, the Bill goes far beyond this.

What is agricultural land?

The new Bill states that agricultural land is the common heritage of all people of South Africa, and that the Department of Agriculture is the custodian thereof, for the benefit of all South Africans 12

Like the old Act, the Bill defines agricultural land to include all land outside of a proclaimed township. It then categorises agricultural land into eight different classes depending upon the agricultural potential of the land.

Land that is categorised in classes 1 to 3 is defined to be high-potential cropping land, and land categorised in classes 4 to 8 is defined to be mediumpotential agricultural land.

The Bill states that the subdivision of high-potential cropping land is prohibited unless approved by the Minister.

The process of approval requires input from various role-players, including municipalities, other government departments and traditional communities.

Before the Minister considers the application, various reports have to be prepared and submitted.

Most important is an agroeco system report. The report is to analyse the impact of the development on any change in food production and on the farming sector. The application will only be granted if exceptional circumstances can be found.

With regards to mediumpotential agricultural land, the approval of the MEC is required. The exceptional circumstances criterion does not apply to mediumpotential agricultural land.

There are no objective criteria against which the Minister or the MEC must grant an application or must refuse an application.

Granting a complete discretion to the Minister or the MEC is against the rule of law.

The state is custodian of agricultural land The National Water Act of 1998 and the Mineral & Petroleum Resources Development Act of 2002 introduced the concept of natural resources being part of the common heritage of all South Africans and provide that the State was the custodian of natural resources.

The New Bill now states that agricultural land is the common heritage of all people of South Africa and that the Department of Agriculture is the custodian thereof, for the benefit of all South Africans. By declaring that all agricultural land is the heritage of all the people of South Africa, the argument is raised that imposing controls and restrictions on the use of agricultural land does not

constitute an expropriation leading to claims of compensation.

These provisions raise questions as to whether the deeming of natural resources, including agricultural land, as being the common heritage of the people, and that the State is the custodian thereof, constitutes a form of expropriation without compensation.

A power to expropriate may be created in legislation but that power has to be exercised according to the procedures set out in the Expropriation Act 63 of 1975 and it must, in general, conform with the requirements of section 25 of the Constitution.

The power to expropriate ought to be closely circumscribed, and deviations from section 25(3) as far as just and equitable compensation is concerned will be unconstitutional. The only space which exists to supplement the provisions of section 23(3) of the Constitution lies in factors that have to be taken into account in order to arrive at just and equitable compensation. However, legislation that seeks to grant less compensation than would otherwise have been payable in terms of section 25(3) of the Constitution will be completely unconstitutional.

The controls over agricultural land, going beyond restricting the subdivision of agricultural land, are far-reaching. If a farmer is found not to be using agricultural land to its optimal agricultural potential, then the Minister is entitled to expropriate the land at below market value.

SOUTH AFRICAN PROPERTY REVIEW

Legal Review_AUG_SUBBED.indd 12

2015/07/20 2:32 PM

legal update There are no objective criteria for determining what the optimal agricultural potential of agricultural land may be.

A farmer may only use highpotential cropping land for the production of food and food crops for human consumption.

In other words, he or she may not use the land for animalfeed purposes or, for example, the production of crops used as a feedstock for clean energy.

The farmer also may not convert high-potential cropping land to eco-tourism-related game farming or other agricultural production initiatives without the permission of the Minister.

A farmer may not sell high-potential cropping land if the land is then to be used for a non-agricultural purpose.

Foreigners may not purchase high-potential cropping land or medium-potential agricultural land.

The Minister of Agriculture is given the power to expropriate agricultural land if it is required for agricultural production. This is deemed to be expropriation for a public purpose or in the public interest.

The Bill is unconstitutional Apart from the Bill breaching the rule of law, it is unconstitutional because it seeks to confer upon the National Minister of Agriculture the power and control of land when the Constitution vests that power in local government and municipalities.

All land within the Republic of South Africa falls within the jurisdictional area of some municipality, and the effect of the Bill will be that the exclusive executive authority and administration conferred upon municipalities with respect to agricultural land within their municipal areas will not only be interfered with, but will become subject to decisions by the national and provincial government.

The structure of the Bill with respect to the subdivision and rezoning of agricultural land is unconstitutional in that it falls foul of the provisions of sections 156(1) and 41(f ) of the Constitution as read with schedule 4 Part B, whereby municipalities have executive authority in respect of municipal planning. It furthermore falls foul of section 155(7) of the Constitution, whereby national government and the legislative and executive authority are to see to the effective performance by municipalities of their functions in respect of inter alia schedule 4 by regulating

The Minister of Agriculture is given the power to expropriate agricultural land if it is required for agricultural production. This is deemed to be expropriation for a public purpose or in the public interest the exercise by municipalities of their executive authority, already alluded to above. The Bill does not do so but seeks to disempower the municipalities with respect to their executive function in respect of municipal planning and to vest the power to do so in the Minister responsible for agriculture, the MEC responsible for agriculture and bodies created in the Bill.

It further falls foul of the provisions of section 25(3) of the Constitution in that it seeks to provide for expropriation of agricultural land in certain circumstances at less than just and equitable compensation at a lower price than would be paid for similar land in the same

geographical area which is used optimally for agricultural purposes (clause 54(3)(c) and 151(a)).

Furthermore, the Spatial Planning and Land Use Management Act No. 16 of 2013 is completely ignored by the Bill.

This Act has been assented to by the President and is awaiting final promulgation. The Bill, if legislated in its present form, deals largely with the same subject matter but substitutes the processes described in the Act with new processes and new decision-makers. In many respects, the Bill duplicates town planning processes but within the context of the supremacy of agricultural use of land over any other land uses. If the Bill is legislated in its present form, the question arises whether the legislator intends to amend the SPLUMA statute, because the two statutes cannot exist side by side, with different decisionmakers granting applications in respect of the very same land uses and matters.

The decision as to whether land should be converted from agricultural use to another form of use is a decision to be made by town planning authorities at local government level. At present, it is unconstitutional for the Minister of Agriculture to make all of these decisions.

Measures by the State to preserve agricultural land and the production of food should be supported. National legislation on the preservation of agricultural land should set norms and standards and the framework against which decisions by local authorities are to be made relating to the preservation of agricultural land.

The attempt to control land by vesting all agricultural land with the people of South Africa attempts to control exactly what crops are to be grown on agricultural land, and the onerous provisions regarding entitlements to expropriate should be removed from any proposed legislation.

This legal opinion is only a guide and should not be copied with the expectation that it will serve each party’s individual circumstances.

Most of these recommendations have not been tested in our courts. SAPOA cannot guarantee any success in any court if any of these recommendations are put to use.

SOUTH AFRICAN PROPERTY REVIEW

Legal Review_AUG_SUBBED.indd 13

13

2015/07/20 2:33 PM

planning and development

Planning with rural communities … and not for them The influential role SAPOA plays in the property industry is not to be taken lightly. The invitations for the organisation to take part in various processes, events and policy discussions are testament to this

T

Lekgolo Mayatula is SAPOA’s Planning and Development Manager

The crux of the matter is that the property industry is an exciting multifaceted, constantly evolving sector.

It is alive, and every single beat from this sector sends frequencies that impact on the economy, either directly or indirectly 14

he seamless process of formulating and distributing information on the engagements via a variety of communication channels is quite remarkable, as is the sound management of resources that are cooperatively shared among the various departments within the organisation. From an insider’s perspective, there is not ever a time when a team member does not take a minute to question whether they have done their utmost to share the relevant stories with the industry.

The crux of the matter is that the property industry is an exciting, multi-faceted, constantly evolving sector. It is alive, and every single beat from this sector sends frequencies that impact the economy, either directly or indirectly. The implementation of SPLUMA (the Spatial Planning Land Use Management Act) and development in the rural parts of the country is one of the moments that could change the status quo.

Constant SPLUMA updates have most likely created SPLUMA fatigue within the industry but there is another angle to this narrative: the development of rural spaces in line with Chapter 6 of the National Development Plan (South Africa’s 2030 vision); SPLUMA and its five principles (which consist of justice, spatial sustainability, efficiency, resilience and good administration); the various provincial and municipal sectorial frameworks that promote development, including Spatial Development Frameworks (SDFs), Local Economic Development Plans (LEDs), Integrated Development Frameworks (IDPs), Environmental Management Frameworks (EMF), etc. But in the bewilderment of all the countless

strategic plans and processes, where are the voices of the rural communities? Do they own their spaces? Do they genuinely have the capacity to contribute towards their future, which is aligned to their aspirations? Or are they dismissed as citizens who are dependent on the state and would find the planning process too intimidating to engage with?

Simon Nicks, Director of CNDV Africa (Pty)Ltd, in an article titled The Future Of South Africa’s Rural Villages: Rural Development Or Suburbanisation By Stealth? highlights the fact that rural settlement patterns are changing, and the changes do not give the impression that rural communities view themselves as citizens trapped in pockets of poverty.

In fact, the current development patterns emulate those of lowdensity suburbia – inherently unsustainable because of its dependency on declining and expensive natural resources, and its debilitating shift from property owners being selfsufficient through producing their own food security to being a consumption-oriented society.

Nicks raises important issues in the article, which leads to the question of whether planners are effectively equipped to deal with the developing changes of the rural settlement. How is SPLUMA addressing the aspirations of the rural towns and villages? How is the property industry engaging in this environment?

The decision-making process, as stipulated in SPLUMA, requires the establishment of municipal tribunals, the members of which need to be able to comprehend the dynamics of various stakeholders. The challenge of most municipalities that

incorporate rural land (where traditional authorities play an important role in the final development process of the land) is sculpting a process that would allow for effective engagement with traditional authorities, the various community members and community organisations without delaying the actual land use approval process.

In his article Generating New Knowledge With And In A Community Setting, Nicholas Pinford, a lecturer at the Cape Peninsula University of Technology, provides insight on how partnerships between community members, non-profit organisations, institutions of higher learning and municipalities can be successfully developed, and the sharing of knowledge becomes one of the many benefits that allow for the fast-tracking of land use application processes. Pinford highlights that this process is a time-consuming one in its initial stages – but once all parties are fully cognisant of the various expectations and are able to interact from a point of trust, respect, fairness, accountability, diversity, motivation and the acknowledgment and appreciation of different intellectual knowledge, the possibilities are endless.

Therein lies the hidden treasure – this is where the “skip a beat” opportunity lies.

How do we as the various levers in the property continuum take stock and engagement in the rural and urban spaces? How do we genuinely change the future for the better? Any takers? Are there hands up for Team SA…?

SOUTH AFRICAN PROPERTY REVIEW

Town Planning_AUG_SUBBED.indd 14

2015/07/20 12:29 PM

interview

Platinum sponsor

Gold sponsor

Silver sponsor

Additional sponsors

SOUTH AFRICAN PROPERTY REVIEW

a4 ad template.indd 29

29

2015/07/17 10:53 AM

education, training and development

SAPOA launches new Management Development Programmes in partnership with Wits University Martin Ferguson is SAPOA’s HR, Education, Training and Development Manager

The SAPOA Educational Programmes are developed to cater for the commercial property industry, from basic entry-level to executive programmes

S

APOA’s programmes cater for various career paths in commercial property, and include property management, facilities management, property development, asset management project management, and property financial careers.

Up until now, the SAPOA Property Development Programme was aimed at senior management, and our International Property Leadership Programme at executive management. To add to our current management programmes SAPOA, in partnership with the University of the Witwatersrand, developed the Management Development in Commercial Property and Senior Managers Development in Property programmes. Please see below more details of these new programmes.

Management Development in Commercial Property (NQF 7) The aims of this programme: For more information, please contact: Martin Ferguson Human Resources, Education, Training and Development Manager t: +27 (0)11 883 0679 e: martin.ferguson@sapoa.org.za

16

●● To broaden the perspective of directors, executives and managers whose previous experience has mainly been in a specialist area by providing knowledge, skills and techniques that will lead to more professional management ●● To foster awareness of economic, political

and social factors affecting business management ●● To provide delegates with the ability to make sound decisions ●● To increase the effectiveness of working with diversity in the workplace

The course content: ●● Module 1: Human Resource Management, Industrial Relations and Group Dynamics ●● Module 2: Economics for Property Management ●● Module 3: Theory of Accounting and Finance ●● Module 4: Operations Management Practice in the Property Sector ●● Module 5: Theory and Practice of Strategic Management ●● Module 6: Marketing Theory and Practice for the Property Sector

Upon the completion of the course, participants should be able to: ●● Demonstrate skills in human relations management and labour relations practices ●● Understand the theory and practice of microand macroeconomics ●● Show skills in the principles of finance and accounting ●● Demonstrate good judgment in the practice of operations management ●● Understand elements of marketing theory and practice

●● Show competence in using the basic tools of strategic analysis and planning ●● Demonstrate competence in project management The target audience will include experienced business managers, upcoming managers with a B-degree or similar qualification, or individuals who have already been in a middle-management position for five years who may not have a formal qualification, or professionals from nonmanagement disciplines wishing to gain exposure to managerial principles.

Senior Managers Development in Property (NQF 8) The aim of this programme: ●● To impart the management skills necessary for senior managers to develop business skills to support their new senior role in the organisation ●● To update the skills and knowledge of existing senior managers with current business best practice.

The course consists of three major themes and a project: ●● ●● ●● ●●

Strategy and Environment Management of Resources Management of People Property Management Project – Assignment

SOUTH AFRICAN PROPERTY REVIEW

HR_AUG_SUBBED.indd 16

2015/07/20 12:34 PM

education, training and development Upon the completion of the course, participants should be able to: ●● Demonstrate an ability to link strategic action with aspects of the business environment ●● Develop organisational performance measures ●● Analyse the effective management of business resources using operations and project management techniques

●● Apply principles of people management through group dynamics, HR management and self-management.

The target audience will be: ●● Middle managers earmarked for senior management as part of a leadership career path ●● Experienced senior managers eager to benchmark themselves against best practice

●● Newly appointed senior managers ●● Development of targeted groups with higher degrees in terms of B-BBEE and Employment Equity Plans ●● Technical managers in senior management positions Please look out for our advertisements about the starting date of the roll-out of our management programmes.

Property Investment Workshop series The comprehensive workshop series is an exceptional opportunity for delegates to delve into investment issues affecting financing the property sector with other property sector players, decision-makers and owners

S

APOA Western Cape will be hosting an exciting half-day workshop series commencing on 14 August.

The four-part workshop series will focus on various aspects of investments within the property industry.

The workshops will be facilitated by François Viruly, Associate Professor within the Department of Construction Economics and Management at the University of Cape Town.

He is also a senior lecturer for the University of Cape Town Property Studies Programme.

In some instances, Viruly will be joined by guest speakers, all recognised experts in the field of property investments.

These guest speakers will give delegates insights into the industry and provide examples of the practical application thereof. Delegates will also have the opportunity to talk to the speakers about different issues during the workshops.

It is advisable to attend the entire series to get maximum benefits; however, delegates may choose to attend particular workshops only, if they wish.

The workshops in the series will be as follows: ●● Understanding the Property

Investment Environment 14 August 2015 ◆◆ Why invest in commercial property ◆◆ The characteristics of commercial property investments ◆◆ Determining property returns ◆◆ Understanding the characteristics of different property investment classes ◆◆ Steps of the property investment process ●● Property Cash Flows and Tax

18 September 2015 ◆◆ Forecasting property investment variables ◆◆ Deriving the beforetax cash flow (NOI) ◆◆ Introduction to property tax ◆◆ Understanding the data sources ◆◆ Modelling of property cash flows ●● The Valuation of Property

Investments 16 October 2015

◆◆ The different property valuations methods ◆◆ Income approach ◆◆ Comparative approach ◆◆ Depreciated replacement cost approach ◆◆ The discounted cash flow approach and IRR calculations ◆◆ The benchmarking of property returns ●● Debt Funding and Property

Investments 13 November 2015 ◆◆ Raising debt funding ◆◆ Impact of debt financing on property returns ◆◆ Conditions for positive gearing ◆◆ What banks look for in a property investment ◆◆ Understanding the listed property sector

Fee Structure for the Investment Series Per workshop R1 400 excluding VAT for members R2 380 excluding VAT for non-members Full series R4 840 excluding VAT for members R8 800 excluding VAT for non-members

For more information on the Investment Workshops please contact: Jehan Begg t: 021 447 3356 e: wc.sapoa@sapoa.org.za

SOUTH AFRICAN PROPERTY REVIEW

HR_AUG_SUBBED.indd 17

17

2015/07/20 12:38 PM

interview

28

SOUTH AFRICAN PROPERTY REVIEW

a4 ad template.indd 28 Ready_7.7.15.indd 2-3 ICPPBrochure_AH_Print

2015/07/17 10:47 AM

interview

SOUTH AFRICAN PROPERTY REVIEW

a4 ad template.indd 29

29

2015/07/17 10:41 10:47 AM 2015/07/07

SAPOA

in property

WOMEN

women of influence

In the exceptional company of women This Women’s Month, SAPOA celebrates the extraordinary calibre of women in its leadership structures for their outstanding achievements in the property industry. These highly accomplished professionals share their insights on the role of women as an integral part of the economic development of this country

By Nthabiseng More

Nomzamo Radebe The forward-thinker has a remarkable CV, with a BCom and honours degree in accounting from the University of Cape Town. Since completing her articles at KPMG in 2001, Nomzamo Radebe, a chartered accountant by profession, has been leading from the front in various fields, and is currently the Managing Director of JHI Properties, President Elect of SAPOA and President of the South African Council of Shopping Centres.

She is not conceited about her success and says that forward planning, resilience and being surrounded by a supportive network of family, colleagues and mentors have been the fuel behind her achievements.

Being a woman in a leadership position in a traditionally male-dominated industry is no easy feat. “One needs to have a plan so you can at least have an idea of what you want to achieve in life,” says Radebe. “Knowing where you want to go enables you to plan ahead from an early stage and gives you focus.

Planning also eliminates the ‘noise’ and helps with prioritising.”

Radebe has extensive experience as a corporate frontrunner, including working for Sasol as Treasury Operations Manager and for the National Treasury’s asset and liability unit, monitoring the financial performance of stateowned enterprises, facilitation of government’s restructuring initiatives for SOEs and promulgation of the Auditing Profession Act among her many other past and present roles.

She says women have come a long way but “we can always do better”. She believes women are capable of being leaders in the field of property, particularly commercial property, but there are several barriers to entry and a general mind-set change that needs to take place.

20

SOUTH AFRICAN PROPERTY REVIEW

Women of SAPOA_SUBBED.indd 20

2015/07/20 5:01 PM

SAPOA women in property “One needs to have a plan so that you can at least have an idea what you want to achieve in life. Knowing where you want to go enables you to plan ahead from an early stage and gives you focus. Planning also eliminates the ‘noise’ and helps with prioritising” “Entry into the property market is difficult for anyone but much more so for black women,” she says. “We need to have women as decision-makers and this is something that we are always working on.

“One of the challenges is that we don’t have enough of a feeding pipeline of women we can advance, so we often find that it takes a concerted effort to advance women.

It is also important to realise that the advancement of women is a partnership between the women themselves and the industry managers and leaders, because the tendency is that when we look at the skills pool of people who are ready for leadership roles, women are still trailing behind their male counterparts.”

It is important for companies to take it upon themselves to help create this skills pool by developing women who are willing and able to take up those roles. This, Radebe believes, cannot be achieved in isolation.

Similarly, it is imperative for women to realise that having a successful career does not mean sacrificing or abandoning other aspects of their life.

“It is about consciously deciding to be a balanced individual and not losing sight of what you have committed yourself to doing,” she says. “It is also important for women in any industry to raise their heads up and build networks with their peers.”

About her role as SAPOA President Elect, Radebe says she acknowledges the role SAPOA plays in education and would like to see more young people getting a better education through the organisation’s efforts.

“These young people whom SAPOA is assisting in getting an education need to be followed up to ensure that they launch a successful career in the property space as they are the owners and managers of the future,” says Radebe. “It is imperative that we empower the girl child – but it is equally important to ensure that the boy child is held to the same standard. We should not find ourselves in a situation where the other child gets left behind in the name of empowering young girls. We need to empower and equip all children for a better tomorrow.”

Amelia Beattie SAPOA’s Immediate Past President and Head of STANLIB’s Direct Property Investments Amelia Beattie is passionate about empowerment of women and their advancement in all facets.

She views women’s empowerment as an imperative in all industries and is cognisant of the improvements women have experienced over the years.

“If we look back over the last 15 years, it is very evident how much women have grown and how many of them hold very significant positions in the property industry,” she says.

“What really excites me is the quality and number of young women who enter the industry – they are the future of the industry and we need to continue to nurture and grow them into successful leaders.”

Beattie reflects on her time as SAPOA President and her current role on the SAPOA Board. She is proud to be associated with an organisation that “has a very balanced approach to its stakeholders and tries to ensure that all stakeholders are taken into account”.

Women as stakeholders derive many benefits from SAPOA, she says. “It is evident from the increased number of women on the SAPOA Board, on the National Council and regional committees, as well as the management team at SAPOA. We are also privileged to have Nomzamo Radebe as the President Elect – she will be the fourth woman to lead SAPOA in the last 13 years.”

Beattie’s vision for the property industry is to make a difference to the communities she serves. She believes that the first point of call in grooming future female property industry leaders is dealing with education in the country.

“I truly believe we can use education to sort out many issues around us,” she says.

“The SAPOA Bursary trust is one of the examples of initiatives that are driving this agenda. But it doesn’t stop there – there are so many opportunities every day where we can educate, coach, mentor and sponsor those around us and help them develop their full potential.”

Not only does Beattie have dreams for women in property, she has them for all women.

“As mothers, we have the privilege of empowering our own children,” she says.

“I’m privileged to have three daughters aged 21, 19 and 11, and my biggest vision is to raise them into independent women. It is wonderful to see it happen. As a woman in business, my hope is the same for young women in the industry – that we do not wait for legislation or policies to make a difference but we learn to take it upon ourselves to make the differences we want to see.”

Beattie emphasises that it is important for women to look after all the roles they play.

“My hope for women is to be women, and to not try to be men!”

SOUTH AFRICAN PROPERTY REVIEW

Women of SAPOA_SUBBED.indd 21

21

2015/07/20 12:48 PM

in property

SAPOA

WOMEN

women of influence

Liliane Barnard Liliane Barnard is the CEO of Metope Investment Managers. She previously worked at Old Mutual (now OMIGSA), gaining experience in the mining sector, building and construction, and retail stocks, as well as listed property. Barnard has held many influential positions such as that of portfolio manager and Head of Listed Property at OMIGSA, Head of Asset Management at Old Mutual Property, and being an independent non-executive director of Pangbourne, Emira and Redefine. Barnard is the chairperson of the SAPOA committee involved in seeing to the establishment of legislation for unlisted REIT, and she brings invaluable experience to SAPOA. “My role brings a focus to small business and incubator funds that currently find it virtually impossible to establish themselves under the current tax regime,” she says, adding that, in general, women have an extraordinary ability to make an enormous difference to the economy.

Nicole Baumgarten Nicole Baumgarten has worked in various fields in and outside the property industry, including property marketing for some government departments. She is currently employed by Broll Property Group as a Divisional Director of Business Operations for the Property Management Division, following the acquisition of Finlay and Associates by Broll.

More recently her focus was on the shared services that support property management and these include human resources, training, IT systems and compliance. Having studied human resources before joining the property industry, her property training and education took place at the companies she worked for, and through SAPOA’s property courses and Property Development Programme. She was recently elected as Chairperson of the Property & Facilities Management Committee and her 19 years of experience in commercial property management, property development, marketing and consulting are paramount to her role within the committee.

She believes women are contributing significantly towards the economy by earning, saving and spending. Speaking about her vision for women in property, she says they are

22

“At a basic level, in our daily life, we must take responsibility for our health, our families’ good nutrition and the education of our kids,” she says. “As parents, we’re our children’s first mentors and leaders, and we must realise the profound impact we have on them.

making their presence felt in the industry, with many companies either headed by women or having women at top management level.

“The property industry is a competitive business environment that provides a large variety of roles and job functions that can be performed by men or women,” she says.

“There is huge value in being able to combine the best skills and talents of a diverse group of people to be able to flourish in business these days. The women I see who are at the top of their game seem to be there predominantly as a result of a passion for their fields of focus and healthy competition within themselves to continually do the extraordinary.”

Women naturally excel at multitasking, creating and nurturing; with these qualities, we are able to inspire our children.

“For those of us who find ourselves in influential positions, our focus must be on job creation, sustainability and greening.

I was very fortunate to have had a career in the property sector within a corporate that I found exciting and stimulating. I loved every minute of my work. Now, I am in a privileged position to do the same for our clients and employees, and to realise a vision to create a group that encompasses property investments in their various ownership forms.”

With regards to the future of South Africa, Barnard hopes every child receives a good education, nutrition and the best healthcare so they can find themselves in an enabling environment where they can reach their full potential and attain financial independence.

“My hope for the formidable women in our business is that they go from strength to strength and find fulfilment in their work, and balance in their personal lives.”

Zoe Chagadama Bridging the gap between government and landlords, creating a platform for open communication and improving communication with the municipality, especially regarding the land use planning ordinances, rezoning and other governmentrelated issues are just some of the areas of expertise Zoe Chagadama, Chairperson of SAPOA Buffalo City, brings to the table.

She studied commercial administration, comprehensive project management in built environment and infrastructure delivery management systems, and is well equipped to help the Eastern Cape embrace the commercial property space.

She is also involved in improving relations with stakeholders and encouraging women to be involved in property – not as estate agents but as property developers and owners of buildings, especially because the Eastern Cape does not have many women who are actively involved in the commercial property sector.

SOUTH AFRICAN PROPERTY REVIEW

Women of SAPOA_SUBBED.indd 22

2015/07/20 4:57 PM

SAPOA women in property

Sumari de Ridder Chairman of SAPOA Limpopo Sumari de Ridder is the General Manager for the 76 000m² super-regional shopping centre in Polokwane Mall of the North. After spending several years working in the shopping centre space, including being a Portfolio Manager for Finlay & Associates on various buildings in Limpopo, De Ridder joined Mall of the North, which is co-owned by Resilient Properties, Flanagan & Gerard and the Moolman Group. She brings experience of commercial properties, shopping centres and related business to SAPOA. She believes investing in women teaches them to

“Women need to know that when we talk property it is not only about being an estate agent and selling residential properties,” she says. “It’s great that the Estate Agency Affairs Board has professionalised the industry so women can grow from there and diversify to commercial property development, management and ownership. Government needs to play its role in supporting women to own commercial properties. My vision is to see more women being property moguls, not competing but participating in the property industry as developers and owners of buildings. This process must not be manipulated; it’s happened a lot in the construction industry, where there has been much ‘rent-a-female behaviour to comply with government legislation and to get lucrative deals.”

Chagadama acknowledges that the property industry is complex and that transactions are long-winded, but notes that this should not be a deterrent to entering the industry. She believes women should take advantage of the courses SAPOA offers

reach their potential, lightens the load on social programmes and teaches women skills that can improve their life and the life of their families.

“It is critically important to bring more women into the workforce and fully deploy high-skill women to drive efficiency and improvement,” she says. “The full potential of women in the workforce has yet to be tapped.

“Advancing more women into senior positions would help companies rebalance their executive committees, which in turn increases the likelihood of sustaining gender diversity.”

She ponders on the domino effect of empowering women. “If women were fully integrated into the workforce, they would be more likely to invest in the education of their own children who would become future leaders in their own rights.”

The problem is that the salary scale tends to tip more favourably to male employees.

“Closing the gap in wellbeing between men and women is as much a part of development as is reducing income poverty.”

She believes women have done remarkably well in property and says a large number of centre managers in South Africa are women.

“Show your worth and the rest will follow naturally. Work hard, be loyal, be dedicated and resilient, and you will reap the rewards.”

as well as the networking opportunities in order to broaden their knowledge base.

“I would like to see women diversify, “ she says. “Currently the Construction Industry Development Board database is clogged with grade 1 GB’s and catering suppliers.”

She adds that, with the right tools, women who are already informal landlords can formalise their businesses and go on to build stable businesses.

Refqah Fataar Ho-Yee She is a Cape Town attorney and conveyancer specialising in property law who ran her own firm for 10 years before joining Smith Tabata Buchanan Boyes (STBB) as a director in 2008. Refqah Fataar Ho-Yee is a SAPOA regional Chairperson for the Western Cape and holds a BA degree and an LLB degree.

Fataar Ho-Yee works with a committee of 10 dynamic, experienced industry professionals and a great regional secretary to highlight issues affecting Western Cape SAPOA members, engage with local government on behalf of SAPOA, and ensure networking and educational opportunities for members. “I’m the only attorney on the Western Cape committee so I share and discuss with the committee any legal issues that arise locally and nationally (sharing feedback that I receive from SAPOA head office),” she says. “STBB is involved in a broad range of propertyrelated matters, and our interaction with various municipal departments, developers and professionals allows me to feed back to the committee and head office on any industry concerns/updates in legislation and relevant training topics.”

She is also passionate about Cape Town and its development, and about the city’s attractiveness to investors. She has a radical view on women’s role in the economy.

“I don’t distinguish between men and women as strong contributors to the economy but women do bring a different perspective and different strengths to an organisation,” she says. “Certainly in law, the multitasking ability of a woman helps her fulfil her duties as an attorney.”

She is a firm believer in education and has always played a role in the promotion of education and bursaries, especially for female recipients. “I enjoy seeing stats that show increasing female students registered for property-related and financial studies,” she says. “I appreciate the SAPOA and WPN bursaries making funds available for adult working women to study further, opening doors for them to senior positions in their chosen field.”

SOUTH AFRICAN PROPERTY REVIEW

Women of SAPOA_SUBBED.indd 23

23

2015/07/20 4:57 PM

in property

SAPOA

WOMEN

women of influence

Ipeleng Mkhari Over the past 17 years she has established and operated businesses in the built environment. Initially she had a CCTV business, supplying electronic security systems to landlords and property managers; today her business is a diversified investment group with interests in property, property services and strategic investments. SAPOA Board member Ipeleng Mkhari became the CEO of Motseng Investment Holdings in late 2012 after having founded the business in 1998 and being its Chief Investment Officer and Chief Operations Officer.

Mkhari brings a world of experience to the SAPOA Board. “My experience as a property practitioner spans servicing and ownership

Desiree Nafte

“The majority of my sisters and daughters in the Central African Republic don’t know their rights so they can’t defend them. But we who know our rights can help them. We must always help them: the battle is always to promote and protect the rights of women” – Catherine Samba-Panza, President of Central African Republic

24

She joined the commercial property industry in 2001 as a legal adviser specialising in property law after practising as an attorney in private practice for several years. In 2011, Desiree Nafte was appointed the National Legal Executive at Hyprop Investments Limited and is the current Chairperson of the SAPOA Legal Committee.

She obtained a BA and an LLB degree from the University of the Witwatersrand in 1989.

Regarding her role for SAPOA, Nafte says, “As Chairperson of the Legal Committee, I have endeavoured to steer the Committee towards providing the commercial property industry with practical information relating to legal issues facing the industry.”

Nafte has comprehensive knowledge of the property industry and experience in property law, and she believes women are a significant part of helping grow the economy of the country.

“Women can contribute to the South African economy by developing a culture of entrepreneurship,” she says. “More South African women need to participate in new business creation, as this will be a major driver in the growth of our economy. Women tend to be very innovative and creative; we need to channel this energy into new, successful businesses.”

Unfortunately, many women in South Africa are not yet recognised for the impact, growth and opportunity they can provide to our economy, Nafte says. “Greater support structures need to be put in place to develop

in the property value chain. I bring an African woman’s view to this landscape,” she says. She believes the most significant contribution women can make to the economy is through active involvement as entrepreneurs.

“It’s not an easy choice but it provides deep exposure and opportunities to empower others,” she says. To witness women deepen their participation as landlords in property and being more actively engaged in the total procurement value chain in the broad property sector are some of the milestones she looks forward to seeing.

“My hope is that women take their rightful leadership place in all aspects of entrepreneurship and business,” she says.

this culture of entrepreneurship among women,” she says. “Female entrepreneurs face huge challenges in South Africa because of the increasing regulatory environment, limited access to financial resources, gender inequality, gender stereotyping and lack of skills.”

South Africa has always been a traditionally patriarchal society and women’s progress in the business milieu has been very slow.

“Even in the executive environment, we see far too few women in executive roles and on company boards in both the private and public sector,” she says. “South Africa needs to recognise the value of female contribution within the formal sector; to ignore this will be to the detriment of the South African economy. This is already starting to happen but the pace of transformation needs to pick up so we can tangibly see more female business owners in the formal business environment and in executive positions.”

She notes that in economies such as the US and Japan, where the employment of women has increased and the number of female business-owners has increased, the GDP has also increased substantially – and there is conclusive evidence in those countries of the direct relationship between the increase in the number of female employees and the in the number of female business-owners and the increase in growth in their GDP. “If we integrate more women into the South African economy, we will see the same result,” she says.

SOUTH AFRICAN PROPERTY REVIEW

Women of SAPOA_SUBBED.indd 24

2015/07/20 4:57 PM

SAPOA women in property

Nomvula Pooe Chairperson for SAPOA’s HR, Education, Training and Development Committee Nomvula Pooe holds an honours degree and a master’s degree in leadership performance and change. She is presently employed by Growthpoint Management Services as a Learning and Development Manager. Prior to that, she worked at Investec Bank as an HR Business Partner, servicing the Property Group.

Her role in learning and development has equipped her with the ability to assess the needs of both employers and employees in the property field. “This has led to the recommendation of some learning delivery avenues that the committee which I serve suggested,” she says.

Speaking about how women can help change the economy, Pooe says, “Women have unique, authentic, imaginative and calculative skills that transform work into an integrative cohesive environment. Their abilities can best be utilised in areas where gaps in diversity and gender representation roles exists. Acquired knowledge and experience in the application of successful strategies can

Sanett Uys Sanett Uys is the Chairperson of the SAPOA Research Committee. She started her career at Rode and Associates before moving to Broll to work in the research department and later to Colliers International, where she headed up the research department. She is currently the Managing Director of JHI Advisory, helping look after the advisory side of the business, including valuations, due diligence, research, consultancy and town planning.

“I think both men and women have a specific role to play,” she says about her role at SAPOA. “In my experience women bring different dynamics to the table, a different way of looking at things. Women need to stay true to who we are. We have the same capabilities and we can multitask so well.

Look at the key female leaders in the industry: they are all women with families and very demanding jobs, and they can make it work. The approach in how they make it happen is slightly different.”

She says the key to women being able to reach their full potential is hard work and dedication.

“Nothing in life is to be feared, it is only to be understood.

Now is the time to understand more, so that we may fear less” – Marie Curie, one of the most famous female scientists ever and a two-time Nobel

have a significant impact on the economy.”

She looks forward to seeing women occupying strategic and influential roles that can transform property organisations into worldwide functional entities.

“Women must strive to lead and to challenge unconventional territories in order to be highly regarded,” she says.

Prize winner

“Nothing is free; you have to put in the time to earn the experience and the respect of the industry,” she says. “We are seeing the next generation of young women coming up the ranks – we can be very proud of them.”

Uys believes there is still a lot to be done, and young women need to be aware that there is a variety of career opportunities in property and that they must find the space they are passionate about.

“I believe women will continue to play a key role in the development of the industry, with a lot of the new senior ladies venturing into entrepreneurship and starting their own businesses,” she says. “My personal long-term goals are to ensure that South Africa starts to produce more reliable research on the property industry that will help us to attract more FDI, be more involved in the training of the new entrance in the market to ensure best practice always prevails, and continue to support and be part of Women’s Property Network, which assists and mentor ladies in the industry.”

Uys says to succeed young women need to stop competing with men and play their own game. “Give credit where credit is due and support one another.”

SOUTH AFRICAN PROPERTY REVIEW

Women of SAPOA_SUBBED.indd 25

25

2015/07/20 4:58 PM

SA women in history

Photograph courtesy of Mary Sibande, from her exhibition “Long Live the Dead Queen”

Gender equality: a battle half won South Africa’s fight for gender equality has been inextricably linked to the fight for racial equality.

While they continue to strive for more recognition, women of all shades have held hands and managed to reach a more acceptable level of economic and political emancipation in recent years

By Nthabiseng More

W

hen one of the world’s leading social-networking sites, Facebook, has confidence in a South African woman to spearhead its first-ever African office, it is evidence that women in this country have come a long way in claiming their place as decisionmakers, at home and around the globe. South African advertising veteran and former trainee account manager Nunu Ntshingila-Njeke has successfully made a name for herself in the advertising fraternity – and now as Africa’s leader of the Facebook revolution.

Women like Ntshingila-Njeke are proof the world no longer sees gender but rather the skills set that an individual possesses to do a particular task. It is a victory for women who have consistently struggled to be recognised as an integral part of economic and political activity in the country and across borders.

For South African women, the 20th century was characterised by the struggle for justice and racial equality. This was compounded by the struggle for gender equality, in South Africa and around the world.

26

The struggle for female economic emancipation is far from over but one has to acknowledge the immense improvements that have happened since 19 March 1911, when International Women’s Day was celebrated for the first time across the globe.

It was not until the introduction of the Bill of Rights that all women in this country were recognized formally as equal citizens. The Bill of Rights was created in 1996 and contains a clause titled “Equality”. It states that one may not unfairly discriminate directly or indirectly against anyone on one or more grounds.

The political struggle for women’s rights in South Africa started as early as 1913 when black and coloured women in the Free State protested against having to carry passes.

While white women didn’t have to carry passes, they too experienced gender inequality at home and in the workplace, so by virtue of that many of them understood and were in solidarity with their black counterparts.

In 1918, Charlotte Maxeke, who also happened to be the first black woman in the

country to earn a bachelor’s degree, started the first formal women’s organisation – the Bantu Women’s League of the South African Native National – in resistance to the pass laws. In the 1930s and 1940s there were many mass protests, demonstrations and resistance campaigns in which women participated.

In 1952, many black, coloured and Indian women took part in the Defiance Campaign, which involved purposefully breaking the meaningless apartheid laws. Since then there have been many campaigns for their rights – most, including the women’s march on 9 August 1956, have been very successful. In one of the largest demonstrations staged in this country’s history, 20 000 women of all races marched to Pretoria’s Union Buildings on that fateful day to present a petition against the carrying of passes by women.

Today, the entire country commemorates that day as Women’s Day. Many women played an active role in their own liberation in this country. They include Dorothy Nyembe, Frances Baard, Fatima Meer,

SOUTH AFRICAN PROPERTY REVIEW

Women in History_Rev 1_SUBBED.indd 26

2015/07/20 12:57 PM

SA women in history Milestones for women since the dawn of democracy

Winnie Madikizela-Mandela, Lillian Ngoyi, Barbara Hogan, Ruth Mompati and many others. Some are still activists today.

Highlights and heroines ● Mary Malahlela-Xakana, was the first female black doctor in South Africa in 1947. ● At just 14 years old, Patricia Jobodwana was the youngest black woman to enrol at a university (Fort Hare), for a degree in medicine. ● In 1954 Fatima Meer become the founder and chief architect of the Federation of South African Women (FEDSAW). ● In 1943, the ANC officially admitted women members for the first time.

A year later, Adelaide Tambo, wife of struggle stalwart Oliver Tambo, was elected courier for the organisation. ● In 1953 another struggle stalwart, Helen Suzman, represented the United Party in Parliament. ● The early 1960s were a dark time for women of the struggle. After the ANC was outlawed, many were banned and either placed under house arrest or restricted to certain areas. Regardless, Lillian Ngoyi still earned an LLB degree at UCT and was admitted to the Supreme Court of South Africa as an advocate. ● In 1963, singer Miriam Makeba spoke at the meeting of the United Nations Special Committee Against Apartheid in New York. She would later become world-famous, addressing injustice through her music.

● 1994 The Women’s National Coalition called a conference where the Women’s Charter was adopted. ● 1996 Gill Marcus was appointed Deputy Minister of Finance. ● 1997 Brigalia Bam was elected General Secretary for the South African Council of Churches. She would later become the founding member and first president of the Women’s Development Foundation and Chairperson of the Independent Electoral Commission (IEC). ● 1997 Winnie Mandela was re-elected as president of the ANCWL. ● 1999 Gill Marcus was appointed Deputy Governor of the South African Reserve Bank. ● 2000 Mamphela Ramphele joined the World Bank in Washington as managing director responsible for human development. ● 2005 Phumzile Mlambo-Ngcuka was appointed Deputy President of South Africa by President Thabo Mbeki, becoming the first female deputy president in SA history. ● 2006 Women from across the North West Province marched to the offices of the provincial government to submit a memorandum to Premier Edna Molewa.

The march was led by the veterans of the 1956 march and served as an official launch of the August Women’s Month programme and as a launching pad for a series of provincial activities scheduled for Women’s Month. ● 2007 Helen Zille, mayor of Cape Town, was elected as the leader of the Democratic Alliance (DA) after former party leader Tony Leon stepped down. ● 2009 The South African government established the Department of Women, Children and People with Disabilities. ● 2012 Dr Nkosazana Dlamini-Zuma was elected by the African Union Commission as its chairperson, making her the first woman and South African to lead the organisation.

“The size of your dreams must always exceed your current capacity to achieve them. If your dreams do not scare you, they are not big enough” – Ellen Johnson Sirleaf, President of Liberia

SOUTH AFRICAN PROPERTY REVIEW

Women in History_Rev 1_SUBBED.indd 27

27

2015/07/20 12:58 PM

interview

28

SOUTH AFRICAN PROPERTY REVIEW

a4 ad template.indd 28

2015/07/17 10:48 AM

interview

SOUTH AFRICAN PROPERTY REVIEW

a4 ad template.indd 29

29

2015/07/17 10:48 AM

women of influence

Iron-fisted!

“If you just set out to be liked, you would be prepared to compromise on anything at any time, and you would achieve nothing” – Margaret Thatcher, Britain’s first female Prime Minister

There are women who are world-famous for their incredible feats. Others, who may not make daily headlines have made equally great strides in pushing back misconceptions about race and gender equality

By Tom Richardson

I

n their lifetime, these women have inspired, paved the way for and given hope to millions. This Women’s Month, we put the spotlight on work done by incredible women who have made great personal sacrifices in advancing the interests and rights of fellow humans around the world.

While the angels of death may have stolen the lives of some of the world’s greatest activists, there are many others who have taken the baton and moved the economic and social movements of their late predecessors forward. Women such as legendary South African singer Miriam Makeba, who wowed world audiences with her songs of freedom; the first African Nobel Peace Prize laureate, Kenyan environmental activist Wangari Maathai; and the great spokesperson for human rights, US poet Maya Angelou have all departed but their legacy remains – and many others have taken on the mission of changing the world.

US presidential candidate Hillary Clinton once uttered these words: “Women are the largest untapped reservoir of talent in the world.”

Clinton is just one of many remarkable women around the world whose daily life is under heavy scrutiny but who continue to push boundaries and set new standards for fellow women.

Ellen Johnson Sirleaf

with US President Barack Obama, was praised for showing leadership in a time of crisis.

Aung San Suu Kyi While Sirleaf occupies the seat of power in her country, the story of her Burmese counterpart, Aung San Suu Kyi, lies on the contrary.

Myanmar’s Suu Kyi is known around the world as a prominent political prisoner who spent nearly 15 years under house arrest until her release in November 2010.

Ellen Johnson Sirleaf Leading the pack is one of the most powerful leaders in the world, who engraved her name in history books by becoming the first elected female head of state on the African continent: Ellen Johnson Sirleaf.

Liberia’s 24th and current President has been in office since 2005, following her reelection in 2011. The Nobel Peace Prize laureate was listed as the 70th most-powerful woman in the world by Forbes.

Sirleaf recently led her country in West Africa in a tough battle against the muchpublicised Ebola outbreak and, during a meeting

30

Aung San Suu Kyi

SOUTH AFRICAN PROPERTY REVIEW

Iron-Fisted Women_SUBBED.indd 30

2015/07/21 2:11 PM

women of influence She is the leader of the National League for Democracy in Burma, and has been imprisoned by the country’s military dictatorship on and off since July 1989. She was placed under house arrest in Rangoon under martial law, which allows for detention without charge or trial for three years.

The vocal politician from the Asian continent is the recipient of several humanitarian awards, including the Nobel Peace Prize in 1991, the Sakharov Prize for Freedom of Thought in 1990 and the International Simon Bolivar Prize from the Venezuelan government in 2007.

The human-rights activist also harbours ambitions of becoming the president of her country but is unfortunately prohibited from running for office under the current constitution.

This cannot be amended without the approval of at least one military legislator.

The country is scheduled to hold elections later this year.

Winnie Madikizela-Mandela Another world icon who knows the hardships of standing up against an unjust political system is Winnie Madikizela-Mandela.

Images of her clenched fist as she stood beside her iconic Madiba can still be seen in films, documentaries, books and news broadcasts around the world.

She is almost at the end of her career and as her voice disappears in the corridors of power, a young woman is rising to prominence for her undeterred stance and advocacy for education for young girls in her country.

Malala Yousafzai She is a symbol of courage whose story sent shock waves throughout the world.

Receiving the award at the age of 17, Malala Yousafzai, a Pakistani activist, is the youngest ever Nobel Peace Prize laureate.

She is known for advocacy for women in her home town of Swat Valley, where the Taliban had banned girls from attending school.

In 2012, Yousafazi was shot in the face in an attack that propelled her movement to international stardom. She survived that assassination attempt and went on to make a full recovery.

She later wrote a book, I Am Malala: The Girl Who Stood Up For Education And Was Shot By The Taliban.

Her courageous fight for access to education for young girls in her country and around the world is highly commendable.

Nkosazana Dlamini-Zuma

Winnie Madikizela- Mandela

She’s known around the world and credited as being part of an elite league of comrades of the African National Congress who gave their lives to the struggle against apartheid.

Born Nomzamo Winifred Zanyiwe Madikizela in 1936, she was married to another world icon and former statesman Nelson Mandela for 38 years, including the 27 years during which he was imprisoned.

Just like her late husband, MadikizelaMandela’s activist work, her leadership and her outspoken opposition to white minority rule played an equal role in the anti-apartheid campaign. She remains a member of the ANC’s National Executive Committee and one of the party’s parliamentary deployees.

The story of Nkosazana Dlamini-Zuma, the woman who was married to African National Congress and South Africa’s President Jacob Zuma, is one that cannot go unnoticed.

Currently the Chairwoman of the African Union Commission, the South African political leader has stood as the face of the continent in political platforms around the world.

She was born in 1949, and worked with former South African President Nelson Mandela

Malala Yousafzai

“For me, a better democracy is a democracy where women do not only have the right to vote and to elect but to be elected” – Michelle Bachelet, head of UN Women, former defence minister and current President of Chile

Nkosazana Dlamini-Zuma

SOUTH AFRICAN PROPERTY REVIEW

Iron-Fisted Women_SUBBED.indd 31

31

2015/07/20 1:04 PM

women of influence and Thabo Mbeki as a Minister of Health and Minister of Foreign Affairs respectively.

On 15 July 2012, Dlamini-Zuma was elected by the African Union Commission as its chairperson, making her the first woman to lead the organisation (including its predecessor, the Organisation of African Unity).

Those in the know have tipped her as a future leader of the African National Congress.

Angela Merkel While Dlamini-Zuma’s African dream continues to inspire millions of women around the world, another icon reigns in Europe and is believed to be the most powerful woman in the world.

“At the end of the day, don’t forget that you are a person. Don’t forget that you are mother, a wife and a daughter” – Indra Nooyi, CEO of PepsiCo

Ngozi Okonjo-Iweala

As one of the continent’s most recognised leaders, she famously said, “Africans … they’re tired. They’re tired of being the subject of everybody’s charity and care. We are grateful but we know that we can take charge of our own destiny if we have the will to reform.”

The globally renowned Nigerian economist is best known for her two terms as Finance Minister of Nigeria.

Okonjo-Iweala is a pioneer of African and world economics and an inspiration to many on the continent.

Christiane Amanpour Angela Merkel

German Chancellor Angela Merkel remains popular as the first female chancellor of a reunited Germany since 1871.

In 1990, she joined the Christian Democratic Union political party and rose through the ranks to eventually emerge as party leader ahead of the hotly contested 2005 election.

Entering the office of chancellor in 2005, she has held the number-one position on the list of the world’s 100 most powerful women for nine of the past 10 years. The top woman in Germany controls one of the world’s biggest economies, at nearly US$3,4-trillion gross domestic product (GDP), and acts as the de facto leader of the 28-member European Union, which generates a US$15,8trillion GDP.

Another stalwart in the media is awardwinning journalist Christiane Amanpour. She is best known for her fearless approach to journalism, often seen entering war-torn countries in pursuit of truth. As CNN’s Chief International Correspondent, Amanpour doubles as ABC News’ Global Affairs Anchor.

Born in London in January 1958, Amanpour was raised in Tehran and later pursued journalism studies at the University of Rhode Island in the US.

Ngozi Okonjo-Iweala As Merkel toils at the helm of one of the world’s biggest economies, Ngozi OkonjoIweala leads another powerhouse – the Nigerian economy.

As the country’s Finance Minister, OkonjoIweala was previously the Managing Director at the World Bank.

32

Christiane Amanpour

SOUTH AFRICAN PROPERTY REVIEW

Iron-Fisted Women_SUBBED.indd 32

2015/07/20 1:07 PM

women of influence In her glorious career, Amanpour is said to be the one journalist who is followed by most world leaders.

Isatou Njie-Saidy Isatou Njie-Saidy, the Vice President of the Gambia, is another woman who commands power and respect on the continent.

The couple had been a powerful political duo, but President Fernández de Kirchner’s political influence helped insulate her against charges of inexperience during her own run for the presidency in 2007.

When her husband decided not to run for re-election, Fernández de Kirchner began campaigning for the presidency and received 45% of the final presidential vote tally – nearly double that of her closest competitor, Elisa Carrió, who garnered 23%.

Fernández de Kirchner pursues popular social programmes, and she signed the legislation that made Argentina the first country in Latin America to allow samesex marriage. Although, like many other presidents in the world, her tenure is marred by the controversy in her country, Fernández de Kirchner is a powerful force to be reckoned with.

In conclusion

Isatou Njie-Saidy

Although she serves as second-incommand for one of Africa’s smallest countries, there is no ignoring her big voice.

In an address delivered during the 2011 UN General Assembly, Njie-Saidy reminded world leaders that the continent should be approached as a diverse place and not a country. “Africa is no longer the colony of any country and must be respected and treated as such,” she said.

Njie-Saidy is the first Gambian woman to hold the position of Vice President, and one of the first women in West African politics to reach this senior position.

She was born in Kuntaya, North Bank Division. From September 1983 to December 1989, she was the Deputy Executive Secretary of the Women’s Bureau, the executive decision-making body of the National Women’s Council. Later, under President Yahya Jammeh, she became Minister of Health, Social Welfare and Women’s Affairs in July 1996, and then Vice President and Secretary of State for Health, Social Welfare and Women’s Affairs on 20 March 1997.

“To make peace, one must be an uncompromising leader. To make peace, one must also embody compromise” – Benazir Bhutto, first woman elected to lead a Muslim state as the Prime Minister of Pakistan

Worldwide and for decades, women have been influential in the political, academic and social spheres – but with little credit given to them. Now that the world has begun to embrace the strength that women encompass, we are seeing more women in the limelight.

It is evident that without feeling compelled to compete with their male counterparts, women have demonstrated their ability to lead and make a real difference in all spheres of life. And they have done so with excellence thus far.

In the words of US First Lady Michelle Obama, “Success is only meaningful and enjoyable if it feels like your own.” These women are redefining the role of women in a modern and ever- changing world. We salute them for their courage, strength and perseverance in their relentless pursuit of justice and equality.

Cristina Fernández de Kirchner Cristina Fernández de Kirchner is an Argentine lawyer and politician who in 2007 became the first elected female president of Argentina. She succeeded her husband, Néstor Kirchner, who had served as president from 2003 to 2007 before his sudden death.

Cristina Fernández de Kirchner

SOUTH AFRICAN PROPERTY REVIEW

Iron-Fisted Women_SUBBED.indd 33

33

2015/07/20 1:08 PM

women in property

Women in Real Estate law: change-makers, power shifters, vision creators

T

here are eight female directors and four female associates at the real estate practice of Cliffe Dekker Hofmeyr.

These women are known to be powerful change-makers, vision creators and power shifters in the world of real estate law, and they form part of a formidable, award-winning real estate legal team at the firm.

Allison Alexander is a Director who has practised as an attorney and conveyancer since 1990.

Her areas of expertise include registration of residential transfers and bonds; registration of commercial and development mortgage bonds for financial institutions; implementation of contracts in relation to the registration of property-related transactions; transfers from insolvent and deceased estates; transfers as a result of mergers, acquisitions, tax structures etc; and drafting and commenting on commercial property documents.

She’s also worked on renewableenergy matters and commercial property documents for petroleum companies.

Lucia Erasmus is a Director in the firm’s real estate practice.

She has assisted many property developers in retail, commercial, industrial and residential. She has extensive experience in structuring transactions, drafting commercial agreements, all aspects of property development, township establishment, sectional title registers, sectional title arbitrations and commercial bonds.

Simóne Franks is a Director with key specialisations in property-related transfers, bonds and notarial agreements.

Her experience includes residential and commercial development agreements and ensuing transfers; commercial bonds; residential bonds; notarial contracts (servitudes,

34

Allison Alexander, Bronwyn Brown, Fatima Gattoo, Janke Strydom, Lucia Erasmus, Muriel Serfontein, Nayna Parbhoo, Rekha Jaga, Samantha Kelly, Simóne Franks, Simone Immelman, Vicky Meerkotter

notarial bonds and antenuptial contracts); town planning and land use matters.

Simone Immelman is a Director focusing on commercial property mortgage finance, including the finance of commercial and sectional title property developments and acquisition of commercial property. Her general practice also includes residential bonds,

commercial and residential transfers, notarial bonds, notarial servitudes and notarial contracts.

Rekha Jaga is a Director specialising in general residential transfers; commercial, shareblock and sectional developments and transfers; and registration of mortgage bonds. She began her career as a candidate attorney at a law firm in 1992, and in 1999 she opened her

own practice under the name Rekha Jaga and Associates.

She became a Director at CDH in 2006.

Nayna Parbhoo recently joined as a Director. Having been involved in all rounds of the REIPPP process, she has extensive experience in advising clients on all landrelated aspects of renewable energy transactions.

SOUTH AFRICAN PROPERTY REVIEW

Profile DLA_+OLD MUTUAL SUBBED.indd 34

2015/07/20 2:03 PM

women in property

She also focuses predominantly on commercial transfers, commercial bonds, drafting of commercial sale and lease agreements, notarial bonds and notarial lease agreements. She feels that despite the many obstacles they face, women have had the vision to create the change, and this is what truly empowers them.

Muriel Serfontein began her career as a candidate attorney in 1991. She ran her own practice, Serfontein Attorneys, until 2003 when she relocated to Johannesburg.

She joined CDH as a senior associate in 2004, becoming a Director in 2011.

Fatima Gattoo is a Director specialising in all areas of property law, including but not limited to registration of complex securities, township developments and establishments and sectional title developments. She has extensive experience in renewable energy projects. She was appointed as a Director in 2015.

Bronwyn Brown was promoted to senior associate in the real estate practice in 2013. Her general practice includes commercial and residential property transfers and bonds, notarial contracts, and sectional title developments. She also has experience in renewable energy projects.

Janke Strydom has been an associate in the real estate practice since 2014. She spent four years as the South African Research Chair in Property Law seated at Stellenbosch, where she extensively researched a range of property law-related fields.

During this time she wrote her LLD dissertation on constitutional property law and related administrative law issues.

Vicky Meerkotter and Samantha Kelly joined the firm as candidate attorneys in 2013, gaining experience in the firm’s many practice areas, before being appointed associates in the real estate practice at the beginning of 2015.

www.cliffedekkerhofmeyer.com

Brenda Bibby

Charmaine von Abo

Centre Manager

Property Manager

Old Mutual Property

Old Mutual Property

Brenda Bibby, Centre Manager of Cavendish Square, has been in management since she was a young lady. “My family owned and ran a construction and furniture business, so I was exposed to the industry early in life,” she says.

“I completed a number of management and property development courses, and I have not looked back.”

As Centre Manager for one of Old Mutual Property’s flagship retail properties, Bibby has to monitor the economy and the shoppers’ behaviour and expectations. “Retail is an evolving and competitive environment and consumers vote with their feet,” she says.

“Understanding and responding to changes and trends in the economy is important, so it’s a great opportunity to improve and keep the centre relevant and top of mind.”

Building on Old Mutual Property’s drive for a greener property portfolio, she is proud to have been at the helm when Cavendish Square’s management team implemented a number of greening initiatives, which lead to the centre being awarded the Eskom/SAPOA/City of Cape Town Energy Efficiency Forum award for 2013.

“We strive to be the leading property asset management company in South Africa and emerging markets,” she says.

“Our leadership philosophy is ‘people, performance and planet’. We believe implicitly in our people, enabling and empowering a high-performance culture through individuals with a pioneering spirit. This is why, after five decades, we are still growing.”

Charmaine von Abo, Property Manager for Old Mutual Property, is proud of her achievements over the past 17 years at Riverside Mall. “When I started as a receptionist in 1998, I did not foresee that one day I’d be a Centre Manager.

Now I can’t see myself anywhere else and can happily say that when it comes to property, I really have been there and done that.”

When Charmaine joined Old Mutual Property all those years ago, the company had a strong foothold in the retail property sector in Mpumalanga, but only the Riverside Mall as a notable flagship. Riverside Mall has since under gone three developments, including building the first water park in Nelspruit in 2013.

“What I love about working for Old Mutual Property is the company’s strong investment in people,” she says. “You are always part of the team but are still trusted as an individual. That is why every milestone that we reach, yearly or even monthly, is something I am proud to be a part of. Each of those milestones is part of what makes working in property so rewarding.”

t: +27 (0)21 657 5600 bbibby@oldmutualproperty.com www.oldmutualproperty.com

t: +27 (0)13 757 0080 / +27 (0)82 556 6028 cvonabo@oldmutualproperty.com www.oldmutualproperty.com SOUTH AFRICAN PROPERTY REVIEW

Profile DLA_+OLD MUTUAL SUBBED.indd 35

35

2015/07/20 2:04 PM

women in property

Henje Boudry

Bronwyn Corbett

Helen Dudley

Managing Director

COO and CIO

Director

Boudry Architects

Delta Property Fund

Alchemy Property

Henje Boudry, Managing Director for Boudry Architects, insists that being an architect is about more than designing a building.

“You need strategic insight at the macro level, taking into account how global factors influence the economy and your project,” she says. “This is why the property sector poses ongoing challenges and opportunities.”

A veteran in the industry, Boudry has had the privilege to work with leaders in the field – such as the late Bannie Britz (Britz & Scholes and Abramowitch) and Alex Roberston (ARA), whom she thinks of as a mentor. “Owing to individuals such as these and the everchanging face of challenges in the industry, I’m just as passionate about architecture today as I was when I graduated from Wits in the 1980s,” she says.

Boudry Architects first opened its doors in 2004 and quickly made a name for itself in Cape Town. “While we’re always happy about getting involved in big developments with an experimental design or rejuvenating an old building for a new purpose, it is the local community projects that stand out,” says Boudry. “There we have to ensure the delicate balance of good finishes, cost effectiveness and reducing the cost of upkeep in the long run. ” Boudry maintains that a sense of humour, combined with integrity and commitment to customer-service excellence are what makes Boudry Architects special.

Bronwyn Corbett, COO and CIO of Delta Property Fund, has it tough as one the few female executives in the property industry – but that has never stopped her. “Joining the old boys’ club at the top is always a personal challenge, yet it is just part of the background when you are juggling finance, the emerging economy and two JSE-listed companies,” she says.

Delta International Property Fund was listed in July 2014, and Corbett is a nonexecutive Director of this Africa-focused international property fund. “It is one of my proudest achievements, listing another company,” she says. “It shows how strong our core business has been for the past seven years. Our assets have grown to R10-billion, with more than 100 properties across the country, and we are the biggest sponsor for the Women in Property Bursary programme.”

She insists that it is two things that have led to the success of Delta Property Fund: receiving level 2 B-BBEE status, and investing in government property. “Even now our entrepreneurial environment, filled with committed and loyal individuals, has allowed us to aggressively grow in the commercial property sector,” she says. “We have filled a niche in the market by supplying superior office space to the government.”

While Corbett may have qualified as a CA with BDO, it didn’t stop her from falling into property and never looking back.

Helen Dudley, Director at Alchemy Property, has come a long way since she emigrated from the UK with her husband in 1977. However, she has not looked back.

“Graduating from the University of Newcastle with experience in translating French and Spanish was not much use to me here in South Africa, so I fell in with Old Mutual as a property researcher, which led to a deep love for the industry,” she says.

Over the years, she has slowly worked her way through all of the various aspects of property management with a number of high-profile companies, including Murray & Roberts and Nedbank. With all of that experience, she finally struck out on her own with Alchemy Property in 2004.

“When you are one of the smaller fish in the property sector, you need to be incredibly flexible and proactive in providing solutions for both your tenants and your landlords,” she says. “The property industry has seen some dramatic changes in recent years, and an open and innovative approach to your business is essential to maintaining a level of success.”

Alchemy Property has recently expanded its business to the UK but the principles stay the same. “We still focus on integrity and transparency, and on providing a service efficiently and competently. That is why we have not only survived but thrived in some of the country’s most challenging times.”

Property Management +27 (0)21 448 3955 / +27 (0)82 650 1064 henje@boudryarchitects.com www.boudryarchitects.com 36

+27 (0)87 803 3582 / +27 (0)83 227 0443 bronwyn.corbett@deltafund.co.za www.deltafund.co.za

+27 (0)11 888 5800 helen@alchemyproperty.co.za www.alchemyprop.com

SOUTH AFRICAN PROPERTY REVIEW

Profiles p34-p37_AUG_SUBBED.indd 36

2015/07/20 2:07 PM

women in property

Leader in the Green Industry Ida-Marie Strydom has been appointed as Chairperson of the South African Green Industries Council (SAGIC). “I’m delighted to be chairing SAGIC and I have many ambitions, all of which are well aligned to SAGIC’s objectives.”

“My core goal during 2015 is to create even greater collaboration between all role players in the green industry, promoting and increasing membership for SAGIC nationwide,” said Ida-Marie.

LIFE GREEN GROUP (PTY) LTD provides a complete green solution tailored to the unique requirements of clients whilst focusing on minimising costs and maximising quality of the service. The Group comprises of three divisions:

Her in-depth knowledge of the green industry and the active role she plays in this space bears testament to her Chairperson appointment at SAGIC. Rudi Kruger, outgoing Chairperson said: “We’re pleased to have Ida-Marie leading the Council and we look forward to engaging with her so that we can properly leverage her skills and expertise for the greater good of the green industry’s network.”

Ida-Marie Strydom is one of the founding Directors of Life Landscapes, established 10 years ago in 2005.

She has extensive experience in the landscaping industry and has managed some of the country’s most prominent landmark projects including Sun City / Lost City, Soccer City (and other 2010 Soccer World Cup turnkey projects), Freedom Park and the Bus Rapid Transit (BRT).

LIFE INDOORS is a specialised interior corporate plantscaping company, enriching commercial and retail workspaces with the unique beauty and benefits of live plants.

Landscaping projects for the corporate market include Alexander Forbes Head Office, Investec, SAB Miller, Outsurance, MultiChoice City, Bateman, Fourways Office Park and Vodacom. Retail projects include Sandton City, Key West Shopping Centre, Shoprite Distribution Centre, Cradlestone Mall and Jean Crossing.

LIFE LANDSCAPES adds value to property (commercial or residential) with unique shapes, colours, patterns and quality products by applying a focused approach to each unique landscape and ensuring service delivery according to specific installation and maintenance requirements.

Life Landscapes was the chosen contractor for City Lodge Fourways, Montecasino, Holiday Inn and Hyatt Regency. The company also prides itself on a number of installations and ongoing maintenance projects at various residential and golf estates, including Centurion Residential and Country Estate, Pecanwood and Jakal Creek Golf Estate.

LIFE SPORTS TURF, specialists in applicationspecific turf installation, maintenance and irrigation system development.

Various educational institutions have also chosen Life Landscapes as their landscaping partner including Lebone II Royal School of Excellence, The Ridge School and the University of Pretoria.

Life Green Group (Pty) Ltd has won numerous acclaimed awards from various national representative bodies such as the South African Landscapers Institute (SALI). Recent SALI awards include: Trophy: • •

Gold: • • • • • • • •

Rooibergkrans Private Game Lodge No 4 Magaliesburg Secondary & Boarding School Rooibergkrans Private Game Lodge No 4 Magaliesburg Secondary & Boarding School Waterfall Corner Vredefort Primary School Centurion Residential Estate Fairway Hotel and Spa Fourways Office Park Group Five Head Office

Silver: • • • •

Group Five Head Office First Friends Nursery School The Grove Shopping Centre Shoprite Checkers

Bronze: • •

Garden Court Morningside JP Morgan

Ida-Marie Strydom Director: Life Landscapes 011 959 1000 | info@lifelandscapes.co.za | www.lifelandscapes.co.za SOUTH AFRICAN PROPERTY REVIEW

Profiles p34-p37_AUG_SUBBED.indd 37

37

2015/07/20 2:07 PM

opinion

Maximising the services of the property management company Commercial property owners often employ the services of property management companies and entrust them with their asset management. Together with landlords, and by taking into consideration several issues, maximum returns can be reached by owners and tenants alike

By Anthony Stokes

M

any landlords choose to outsource the management of their property assets to property management companies that specialise in taking care of the interests of the landlords, selling their services and giving the ultimate assurance of maximising the return on investment.

This allows the owners to focus on core business, lessen the burden of employment and set up divisions to manage their assets. Given the infrastructural requirements, acquiring the services of property managers is expensive as it also includes the huge costs of essential property management systems.

When a property asset company concludes a management agreement with a property management company and covers all of the aspects of service delivery, is this condition of delivery by both parties concluded with certain mutually agreed upon assumptions?

Here is a look at five issues to be considered when finalising such agreements:

Genuine trust in the property management company To expand on this issue, upon conclusion of the agreement there should be no doubt on the trust of the management company to an extent where there is an uncomfortable relationship. This is where due diligence on all aspects of the intended service is essential, as is knowing the staff and the company, so there is no doubt of service delivery, and

38

appointment of the provider is not just based on a percentage management fee. Quality and service excellence are the priority – but this not always guaranteed by how large the management company is.

Full empowerment of the property management company in terms of the agreement Full empowerment is essential for the property management company to be able to provide a packaged service in terms of the agreement. It is usually ascribed to the role of the property manager or the portfolio manager, with all of the management aspects clearly defined.

Property managers and portfolio managers are professionals with the necessary experience and expertise to manage assets better than the landlord; they must therefore be afforded the opportunity to perform.

Complications often arise where there is too much owner/landlord interference.

Such interference may make the efficient property management function very challenging, leading to owners being labelled as “difficult� landlords.

Loyalty to the landlord and in the best interests of maximising return of the asset The discipline of loyalty goes hand in hand with good faith, which is a common legal term

SOUTH AFRICAN PROPERTY REVIEW

Landlords and Management Companies_SUBBED.indd 38

2015/07/20 5:06 PM

opinion used in most contractual agreements. It is often misunderstood – and even ignored – when caring for the assets of the landlord.

Honesty in all aspects of financial management on the part of the landlord and the property management company Where there is infringement of boundaries of honesty, what stand will the landlord and the property management company take?

When we imply honesty in a relationship, this does not mean a one-way street. Honesty applies to both the landlord and the property management company. There have been many cases where the property management company has mismanaged trust and other funds for personal gain, which has led to court action and prosecution.

For example, where a landlord spreads recoveries to cover all costs, this is correct; but where there are vacancies, it is certainly not ethical to expect tenants to bear additional costs to cover for the vacancies or to escalate recoveries/rentals unreasonably.

This is why corporate governance policies are inextricably part of a professional corporate company where there is zero tolerance.

It is understood that the owner of the asset will have strategic input on certain aspects of how they see their asset grow, with certain choices of brands, tenancy, design concepts and refurbishments. That does not mean that the property management company should be isolated; after all, the property management company has the expertise and professional infrastructure to provide valuable input.

Interests of the tenants at heart in management of the asset All tenants, if there has been good marketing in terms of brand mix and positioning, are important players in the success and sustainability of the asset, so it’s imperative that they are treated with good ethical management principles. Communication through the property management company cannot be underestimated. “Happy tenants” are fundamental to the success of any property.

Based on my experience, I’m of the opinion that owners/landlords do not fully trust property management companies. There needs to be a shift in the relationship, which will ultimately contribute to our growing property economy.

Effective property management Effective property management is based on a fundamental principle: “the building looks good”.

With respect, I was taught this by one of the most experienced property gurus I have ever met. The question for property management companies is, what does this principle entail?

In essence, the management agreement should clearly outline the expectations and limitations. In many instances, the finer details of quality, corporate governance, efficiency and general management practices are often not spelled out. Thus in the initial stages of negotiation of a contract, it is imperative that these questions are put on the table: ●● Do you have a qualitymanagement policy? ●● Do you have a corporate management policy? ●● What is the background of the property management team in terms of experience? ●● Do you have policies and procedures that encompass all disciplines of property management?

It would be appropriate for the service provider to put the above on the table and be in a position to present a brief overview of how these points are implemented. Given that millions in assets are at stake, these points are fundamental and must not be negotiable for discussion.

Added to the effectiveness of the service on the part of the landlord is the awareness that open-ended clauses and escape clauses are a bad business practice because they raise doubt on the part of both parties in terms of the delivery and the relationship.

Usually there is a probation period, and in this time frame it is good practice on the part of the landlord to work closely with the property management company with a view to establishing a good working relationship and fine-tuning the service so that there is no doubt on the requirements.

Taking over of a new asset to manage always has some complications and unknown factors. To give effect to a good transition is to conduct an in-depth condition assessment with a thorough explanation of all aspects (be they civil, electrical or mechanical), and recommendations where applicable.

This way, there will be no doubt about how the asset will be managed to ensure good occupancy and return on a wellmanaged building.

Tony Stokes is a Centre Manager for JHI Properties

It is understood the owner of the asset will have strategic input on certain aspects of how they see their asset grow, with certain choices of brands, tenancy, design concepts and refurbishments. That does not mean that the property management company should be isolated; after all, the property management company has the expertise and professional infrastructure to provide valuable input SOUTH AFRICAN PROPERTY REVIEW

Landlords and Management Companies_SUBBED.indd 39

39

2015/07/20 12:37 PM

interview

CHANGE-MAKERS POWER-SHIFTERS VISION-CREATORS WOMEN’S DAY At Cliffe Dekker Hofmeyr we recognise the importance of all women.

cliffedekkerhofmeyr.com Cliffe Dekker Hofmeyr is a member of DLA Piper Group, an alliance of legal practices.

28

SOUTH AFRICAN PROPERTY REVIEW

6478 a4 adSAPOA template.indd Convention 28 issues August-Womens Day.indd 1

TLG6478

2015/07/17 7/2/15 10:45 3:42 PM AM

opinion

Grocery retail sector: shopping for solutions Consumers and suppliers should all embrace the Competition Commission’s market inquiry into the grocery retail sector

By Stephen Langbridge and Ingrid Rogers

T

he Competition Commission has recently published draft Terms of Reference for public comment. The inquiry aims broadly to understand different aspects of the grocery market, 90% of which is dominated by four large supermarket chains, according to the Commission. The balance consists of localand foreign-owned informal businesses and independent retailers.

Scope of the draft Terms of Reference The anticipated scope of the inquiry is very broad. It ranges from assessing the dynamics of specific features of competition in the market to investigating the impact of existing regulations on the market.

The risk associated with such a broad scope is that the resources and time of the panel will no doubt be spread thinly, leading to a shallow inquiry on a wide range of aspects of the market, with little to show in the shopping basket at the end of the day.

Consider, for example, the difference between understanding the potential competitive dynamics of exclusion of Walmartcontrolled Massmart stores from key markets against the possibly dynamite topic of foreignowned small retailers excluding local rivals in the informal economy.

An alternate solution to altering the scope entirely, we suggest, may be to divide the substance of the scope as proposed into the following two phases: First, an investigation into the impact of: ● The growth of the supermarket chains on small and independent retailers and the informal economy; ● Long-term exclusive leases between landlords or developers and supermarket chains on competition in the sector; ● Buyer groups on small and independent retailers and the informal economy; and ● Identified value chains on the operations of small and independent retailers and the informal economy.

Following any findings and recommendations made in this first phase, the panel could then

consider the second set of identified issues, which include the dynamics of competition between local- and foreign-owned small and independent retailers, and the impact of regulations on the market.

This two-phase approach would allow for a more focused initial phase, including publication of any recommendations of the panel. It may also assist in relation to ensuring efficient and realistic allocation of resources and timing.

inquiry is of significance, and is welcomed by the property industry specifically.

In its previous investigation of the supermarket industry, which closed in January 2011, the Commission found that long-term exclusive leases were of great concern, and could result in anti-competitive effects in circumstances where the supermarket chains have market power within the relevant local markets.

Supermarket chains and property developers enter into and enforce longterm exclusive leases through so-called “anchor tenancy”. Typically, these leases are of a minimum period of 10 years and, with renewal options, could last up to 40 years.

In addition, competing firms may be excluded from particular shopping centres by “Use and Exclusiveness” clauses in lease agreements. Specialist stores selling liquor, fruit and vegetables as well as full-line grocery stores may be excluded from shopping malls where any one of the main supermarket chains is the anchor tenant.

The inquiry will examine the effect of these restrictions on competition and on consumer welfare.

Recent complaints Expected timing The draft Terms of Reference do not propose a time frame within which the actual market inquiry will be completed. This may be an oversight to be remedied by the Commission in the final Terms of Reference.

It is important for the Commission to set reasonable time frames within which the inquiry will be conducted and concluded. The first market inquiry into the private healthcare sector is well behind schedule and the second, into the LPG market, is moving ahead slowly.

Exclusivity clauses in lease agreements The inquiry proposes to reconsider the impact on competition of long-term exclusive leases between landlords or developers and supermarket chains. This aspect of the

Reconsideration of anchor-tenant agreements no doubt stems from a number of recent complaints in the industry in this regard, including complaints by the South African Property Owners Association (SAPOA) and Massmart, following Massmart’s attempt to introduce its fresh-food range into Game stores around the country.

While anchor tenants argue that these exclusivity clauses are essential for investmentrecouping purposes and key to retail developments, others contend that the result of the clauses is that competition in offering of products and services to consumers is generally harmed to the clear detriment of consumers.

Interested parties have been invited to comment on the draft Terms of Reference, which we expect will be revised before being finalised.

SOUTH AFRICAN PROPERTY REVIEW

Grocery Retail_SUBBED.indd 41

41

2015/07/20 12:34 PM

SAPOA Board board

42

SOUTH AFRICAN PROPERTY REVIEW

Vuyani Hako_Rev 1-SUBBED.indd 42

2015/07/20 12:30 PM

SAPOA Board

Invested in property With extensive experience in property investment spanning more than two decades, new SAPOA Board Member Vuyani Hako reflects on industry trends over the past few years

By Nthabiseng More

P

ublic Investment Corporation’s (PIC) Executive Head responsible for property investments, Vuyani Hako is no newcomer to the property industry. He has been involved in property investment for 23 years, and has been instrumental is helping some public and private entities with property investment decisions at an executive level for close to 12 years.

Newly appointed to the SAPOA Board, Hako has previously served at SAPOA as a Regional Chairperson for the Western Cape.

At the time he worked in Bellville, Cape Town and served as a regional councillor for five years.

“Being a member of a board such as that of SAPOA is very important, but I decided to excuse myself from SAPOA duties at that time because I was travelling a lot between Cape Town and Johannesburg for work,” he says. “I felt I was unable to make a valuable contribution to the organisation at that stage – but when this opportunity came up again, I saw it as a chance to get involved in an organisation that plays a pivotal role in the industry in which I work.”

He emphasises the importance of industry professionals playing an active role not only in their own businesses or workplaces but also in the broader space of the industry.

Hako is also a Board Member of the V&A Waterfront and says that, for now, these are the only boards he is involved with.

“You need to have enough time to be able to be an active and valuable member of any organisation you’re part of, so it’s important not to overload yourself,” he says. “When I commit to do something, I want to do it successfully and make an impact – but if I overload myself with responsibilities and can’t even attend a meeting, then I’d be doing an injustice to the organisation that I’m supposed to be serving.”

Hako has great admiration for the work SAPOA does and adds that the organisation needs to continue reaching out to a substantial number of members. “SAPOA is about its members, so we need to be doing things that our members are passionate about, and keep making a concerted effort to get to know them,” he says.

Hako is responsible for the team that advises the Board on investment decisions at the PIC, which invests in retail, commercial and industrial property. The PIC is a financial services provider that is wholly owned by government and invests on behalf of the Government Employees Pension Funds (GEPF) and the Community Property Fund, which has developed – and still manages

“Being a member of a board such as that of SAPOA is very important, but I decided to excuse myself from SAPOA duties at that time because I was travelling a lot between Cape Town and Johannesburg for work.

I felt I was unable to make a valuable contribution to the organisation at that stage – but when this opportunity came up again, I saw it as a chance to get involved in an organisation that plays a pivotal role in the industry in which I work” – 30 shopping centres in rural and periurban townships.

Hako’s career did not begin in property investment. He completed a BSc in town and regional planning at the University of the Witswatersrand and initially worked as a municipal town planner in the Eastern Cape.

When he relocated to Cape Town, he started working directly in property investments by joining the City of Cape Town.

“At the time I was also busy completing my master’s of business administration (MBA) at Stellenbosch University,” he explains. “I had promised myself that upon completing the qualification, I would move to the private sector.”

He did not have to wait to finish his qualification before moving to the private sector, however: he was soon appointed by Metropolitan as a regional portfolio manager, responsible for properties in Namibia, Lesotho, Botswana, the Eastern Cape, the Western Cape and KwaZulu-Natal.

Five years later he became the Managing Director for property investments with Metropolitan Properties. Thereafter, in 2014, he joined the PIC. Hako says that the commercial industry is a more closed market than the residential one, which has freely available information for the public.

“It is up to players in the commercial property space and organisations such as SAPOA to help disburse information to the public,” he says. “I would love for young people at schools and universities to be exposed to the commercial property industry because this would give the youth an opportunity to get to know this property space – and perhaps even choose a career in the industry.”

This way, Hako says, future property players and decision-makers would be groomed early on.

With regards to the role women play in the property industry, Hako believes there is still a lot of room for women to become decision-makers.

“When you sit in a boardroom, you don’t really see many women there – which is a concern because it means that they are not decision-makers,” he says. “In order to help empower more women in the property industry, we need people who are passionate about women to reach out and find capable women and bring them into the decision-making space.”

Female empowerment is a business imperative, Hako says: it’s not just about women, it’s about transformation in the property industry in general.

SOUTH AFRICAN PROPERTY REVIEW

Vuyani Hako_Rev 1-SUBBED.indd 43

43

2015/07/20 12:31 PM

on show

Design for science

“The university campus has always been a special place for architecture” – Brian Edwards in his book University Architecture

By Nicky Manson

44

SOUTH AFRICAN PROPERTY REVIEW

On Show_AUG_SUBBED.indd 44

2015/07/20 2:22 PM

on show

U

niversity campuses have a rich heritage of buildings developed over time, and their mission provides fertile ground for the development of cutting-edge architecture.

The University of the Witwatersrand (Wits) in Braamfontein is no different. Celebrating its 90th birthday, it is embracing the future and creating new builds that sit harmoniously alongside the original 1922 classical buildings.

Wits has been busy creating new learning spaces and residences over the past few years.

The East campus received much acclaim for its redesigned Wits Art Museum at University Corner (old Lawson’s building) but the university’s latest accomplishment could be considered its crowning glory. The historical Skeen Stadium, located on the West campus of Wits, forms the social heart of the campus and is now the home of the new maths and science precinct.

The requirements for the newly completed Mathematical Sciences building were based on the amalgamation of five mathematics schools into one mathematical sciences faculty. This includes 250 offices for academics, and computer labs and teaching spaces for more than 1 000 students, from undergraduates

to doctoral research fellows. The previous phase of the precinct included five large lecture theatres, three laboratories (chemistry, physics and biology), 20 tutorial rooms, and facilities for associated staff and students. A new library and cafeteria have been planned as a future phase.

The design challenge for the Mathematical Sciences building was to accommodate the required bulk into the university’s desired curvilinear footprint that commemorates the old stadium racetrack, as has been done with the science laboratories. The design also had to fit into the overall campus master plan. The new layout respects the shape and form of the former stadium and integrates the old grandstand and athletics track, with future academic buildings to be built around the central oval open space.

In the previous phase, the curved grandstand was ingeniously retained and adapted into lecture theatres, while the field side of the grandstand has been converted into new tutorial rooms and a colonnade with a circulation area.

SOUTH AFRICAN PROPERTY REVIEW

On Show_AUG_SUBBED.indd 45

45

2015/07/20 2:24 PM

on show

D M& Kh u G la N w W th �t i Us

C O N S T R U C T I O N C O S T + D E V E L O P M E N T C O N S U LT A N T S

Promotional signs

Kh u G la N w W th �t i Us

On the southern side of the stadium, you will find the new three-storey laboratory building.

The current Mathematical Sciences building project was a collaborative venture between Johannesburg-based architects MMA Design Studio and Savage + Dodd Architects, with MMA leading the design process.

Together they have retained the historical footprint of the stadium and the historical context around the Tower of Light. Alongside contractors M&D Construction Group and SBDS Quantity Surveyors, the team has created this 14 000m2 space.

There were two primary components behind the design concept and brief. The first was to create a primary public space for the West campus; this has been successfully done using the old stadium as a public gathering space, which in turn flows into other private interior academic spaces. “It was an amazing transformation from an unused stadium to a world-class education facility,” says Renell Samuel, Director at M&D Construction Group.

Of the first phase of the science labs, architect Heather Dodd of Savage + Dodd agrees. “It would have been a massive expense to demolish the existing grandstand,” she says.

T

• CONSTRUCTION COST MANAGEMENT • PROPERTY DEVELOPMENT APPRAISALS • PROJECT VIABILITY EVALUATION • CONSTRUCTION COST ESTIMATES

Typeface - Myri

• PROCUREMENT DOCUMENTATION • CONTRACTUAL ADVICE • FINAL COST SETTLEMENT

Tel (011) 884 3236 Email sbdsjnb@iafrica.com www.sbds.co.za

46

SOUTH AFRICAN PROPERTY REVIEW

On Show_AUG_SUBBED.indd 46

2015/07/20 2:25 PM

on show

Building Civil Engineering Pipelaying Roads & Earthworks

M&D

Khula Nthi - Gw W�t Us www.mdconstruction.co.za

Typeface- Segoe Script regular.

Khula Nthi - Gw W�t Us

ace - Myriad Pro

www.mdconstruction.co.za

Murray & Dickson Construction (Pty) Ltd Tel: +27 (0)11 463 1962 Fax: +27 (0)11 706 5354 E-mail: info@mdconstruction.co.za w w w. m d c o n s t r u c t i o n . c o . z a

M&D

25

SOUTH AFRICAN PROPERTY REVIEW

On Show_AUG_SUBBED.indd 47

47

2015/07/20 2:25 PM

on show “The existing seating structure was minimally modified to enable the correct sight-lines for the lecture theatres. The roof structure was reused and the accommodation under the seating bowl was minimally refurbished.”

In the current phase “consideration has been given to the updated campus master plan, which is aimed at memorialising the historical stadium while creating/enhancing new and existing routes, promenades, gateways and vistas,” says MMA Design Studio’s owner and architect Mphethi Morojele. “Internally, the building had to provide a balance between interstitial spaces that encourage formal and informal interaction and more secluded spaces for concentrated teaching and research activity.”

The build was not without challenges. SBDS was appointed cost controller on this project.

“Our brief was to ensure that the project was completed within the budget allocated by Wits,” says SBDS’s Ed Detert. Trials for the team included site restrictions, as the proposed construction site was in very close proximity to the existing buildings. Interestingly, the construction site was originally an old agricultural show-ground property. This was also problematic, explains Detert, as existing services were not always documented.

A marriage of new and old designs, while preserving the dignity and character of the university, has successfully been completed.

“Ultimately, the desire was to create a contemporary building that resonates with and enhances the identity of Wits, particularly of the West campus, not only for now but long into the future,” says Morojele.

With thanks MMA Design Studio t: +27 (0)11 880 1170/ 71 e: www.mmastudio.co.za M&D Construction Group t: +27 (0)11 463 1962 e: www.murray-dickson.co.za Savage + Dodd Architects t: +27 (0)11 782 8188 e: www.savagedodd.co.za SBDS Quantity Surveyors t: +27 (0)11 884 3236 e: www.sbds.co.za

48

SOUTH AFRICAN PROPERTY REVIEW

On Show_AUG_SUBBED.indd 48

2015/07/20 2:26 PM

on show www.mmastudio.co.za cell +27(0)725911755

tel +27(0)11881170

first floor 8 arnold road

Rosebank

Atrium on 5th

Award Winning Architecture

Shopping view

MMA Arhitecture and Design since 1998.

A BBBEE Rated company Levele 2 AA+ A memeber of the Green Building Council and a company that prides itself in excellence.

P U B L I C

B U I L D I N G S

H I G H E R C I V I C

E D U C A T I O N B U I L D I N G S

URBAN & SOCIAL HOUSING R

E

G

E

N

E

A D A P T I V E

R

A T

I

O

N

R E - U S E

WORKING IN COLLABORATION TO MAKE STATE OF THE A R T F A C I L I T I E S F O R T H E U N I V E R S I T Y O F T H E W I T WAT E R S R A N D

w w w. s a v a g e + d o d d . c o . z a SOUTH AFRICAN PROPERTY REVIEW

On Show_AUG_SUBBED.indd 49

49

2015/07/20 2:27 PM

interview

28

SOUTH AFRICAN PROPERTY REVIEW

a4 ad template.indd 28

2015/07/17 10:56 AM

interview

SOUTH AFRICAN PROPERTY REVIEW

a4 ad template.indd 29

29

2015/07/17 10:57 AM

monthly cou n Our

Th e WOR

series ●

s●

LD

by-country focu try-

Tübingen architecture: historical town houses are reflected in the River Neckar in Baden-Württemberg just as the rain starts to fall (© Barnyz/Flickr.com)

Did you know?

German biologist Ernst Haeckel first coined the term “ecology” in 1866.

When it comes to economic stability, richness of history and education, Germany is one of the world’s forerunners, dwarfed by less than a handful of other countries.

By Merisca Scott

Key facts ▼ Population 83,2-million ▼ Capital and largest city Berlin ▼ Currency Euro (EUR) ▼ Total area 357 022km² ▼ GDP (PPP) US$3,2-trillion ▼ Unemployment 5,3% ▼ Inflation (CPI) 1,6% ▼ Government Federal republic ▼ Language German ▼ Driving on the right ▼ Motto “Einigkeit und Recht und Freiheit” (English translation: unity and justice and freedom) 52

Unity and justice and freedom in Germany S

ometimes referred to as the land of the poets and thinkers, Germany is the mostdensely populated country in the European Union, and boasts a rich cultural heritage. Not only is it the fifth-largest country in Europe after Ukraine, France, Spain and Sweden, it has also produced some of history’s most well-known thought leaders.

Musical geniuses Johann Sebastian Bach and Ludwig van Beethoven as well as writer Johann Wolfgang von Goethe are all of German origin.

The country is bordered by nine other countries: Denmark, Poland, Czech Republic, Austria, Switzerland, France, Belgium, Luxembourg and the Netherlands.

Interestingly, although Berlin is the current capital, Germany’s capital centre has shifted around the country several times, with

Aachen, Regensburg, Frankfurt-am-Main, Nuremberg, Berlin, Weimar, Bonn (and East Berlin) having been capital cities at one point or another.

Germany has a number of large cities and 11 officially recognised metropolitan regions.

Population Germany’s population of more than 83-million is not entirely made of people of German descent – in fact, about eight percent of the population were foreigners at the end of 2012, mostly form Turkey, Poland and Italy.

About a fifth of them are foreign residents (not German citizens) – and about a quarter of all American citizens claim at least partial German ancestry.

Germans can expect to live long lives, with their life expectancy being around 81 years –

SOUTH AFRICAN PROPERTY REVIEW

Eye On The World Germany_Rev 1_SUBBED.indd 52

2015/07/21 3:50 PM

eye on the world

Did you know?

Drachenfels (Siebengebirge), in North RhineWestphalia, became the world’s first nature reserve in 1836.

Surprisingly, Germany only adopted a minimum wage in 2014, to be implemented from 2015.

As is the case with most of the world, women have not achieved full corporate equality: statistics show that full-time female workers earn about 23% less than their male colleagues.

Being one of the world’s largest car producers is a huge boost to the economy: German producers Volkswagen, MercedesBenz, Audi, BMW and Porsche sold close to 12-million cars worldwide in 2014, according to Best-selling-cars.com.

Germany is one of the countries that kept its economic stability during the financial recession of 2008. It is currently the strongest economy in the Eurozone.

The property market

which explains the fact that more than a quarter of the population is over 60 years of age.

Since the 1970s, Germany’s death rate has exceeded the birth rate, but the country is now seeing increased birth rates. The majority of the population is Caucasian and German is the main language, with other local languages spoken countrywide.

About two-thirds of the population are Christian, split evenly between Protestants and Catholics. There are about fourmillion Muslims and 100 000 Jews living in Germany.

Economy Germany is the EU’s largest economy and takes fourth place in the world behind the US, China and Japan.

Germany’s top individual income tax rate is 47,5%, and its top corporate tax rate is 15,8%. Other taxes include a valueadded tax and a capital gains tax. The overall tax burden equals 37,6% of domestic output. Government expenditures are equivalent to 44,7% of gross domestic

product (GDP), and public debt is equal to 75% of domestic output.

Germany has a social market economy with a highly skilled labour force, a large capital stock, a low level of corruption and a high level of employment. The service sector contributes approximately 71% of the total GDP (including information technology), industry 28%, and agriculture one percent. Germany reportedly has one of the highest labour productivity levels in the world.

Small and medium enterprises are the backbone of the German economy – 99% of companies fall into this category.

The country has an incredibly low unemployment rate, which stands at about 5,3%, and which reached an all-time high of 14,2% in February 1950 and a record low of 0,4% in June 1962. Almost half of all the people in the country are professionally employed, with the youth unemployment rate at 7,1%.

Men are primarily in full-time employment, while women, especially those with children of preschool-going age, often work part time.

Germany has one of the world’s highest residential rental rates, with almost half of all people renting their homes. Private homeowners make up about 40% of the market, while social housing and cooperative rentals are at about six percent each.

The real estate market survived the economic crisis and showed some of the best results in terms of price stability globally.

However, the recent increase in property sales in Germany has driven house prices up.

The prices and the demand for property in Germany differ according to region. Munich is known as Germany’s most expensive city; consequently, house prices there are higher than in other cities.

In general, housing prices in eastern Germany are lower than in western Germany, reflecting lower incomes and a decreasing population. However, in some major cities, both population and prices are expected to increase in the future.

The procedure of buying a house in Germany is easier than in most European countries. Going through a real estate agency is not always necessary but hiring a notary is obligatory since only authorised individuals (notaries) can carry out a property purchase.

SOUTH AFRICAN PROPERTY REVIEW

Eye On The World Germany_Rev 1_SUBBED.indd 53

53

2015/07/20 4:38 PM

25

2015 Index. m has been d in policy ic freedom .

of corrupl trade and the world’s overnment ic finance, tting means, employwork hours.

stian Demnal vote in artner, the o longer in reached an rm a coalialled, with o. Germany ges for fely, the largarketplace among the est unembe developmically, the

gy

Least free 0

7

ng its econall score is n the manutweighing s freedom. he Europe l averages.

?

Germany has no restrictions on foreign ownership – with a valid proof of identity and the right amount of money, one can buy a house in any part of the country. The top relocation destinations in Germany for locals and expatriates are Munich, Berlin, Frankfurt and Hamburg.

The commercial property investment market also made a good start to this year. “It’s so good, it’s bad” is how Dr Frank Pörschke, Chief Executive Officer: JLL, Germany describes the current situation on the property markets.

“It’s a fitting description that accurately reflects the sentiment of numerous investors,” he says. “The underlying fear that we are now

Economic Freedom Score 50

75 Most

100 free

73.8

Trend Did youFreedom know?

75 Germans are among the most avid recyclers.

According to a BBC survey, Germany had the thirdhighest recycling rate (48% of waste recycled), only74 just surpassed by its Swiss and Austrian neighbours.

treading on very thin ice is also linked to the question of how long this can last.”

The positive economic conditions are supporting what is an almost incredibly good market situation. The Eurozone is also getting back on its feet. A weaker euro (against the US dollar), low interest rates and low energy prices provide an additional tailwind.

Alternative forms of investments with fixed interest rates are therefore still unattractive in relation to real estate because of real interest rates that are at times negative.

“As a result, we still expect considerable capital to be invested in the German property markets,” says Pörschke.

73

IPD Global Property Index 2014

72 86,000,000

historical population

l Rank:

GERMANY

eye on the world

2011

71

82,000,000

70

2012 2013 78,000,000

2014

2015

Country Comparisons 74,000,000

Country 70,000,000

73.8 Commissioned a survey* to understand how 60.4 Germans buy when shopping on overseas websites 67.0 0

World Average

196

Regional

3

196

2

9

6

197

196

196

5

197

8

197

1

198

4

198

7

198

0

199

3

199

6

199

9

199

2

200

5

200

8

200

1 201

4

201

AverageMSCI; KTI; OECD Sources: Free Economies

84.6

20 much 40 60 80 How overseas online shopping grew Quick Facts last year 0

Population: 80.8 million 25 GDP (PPP): $3.2 trillion 20 growth in 2013 0.5% 5-year compound annual growth 0.7% 15 $40,007 per capita 10 Unemployment: 5.3% Inflation (CPI): 1.6% 5 FDI Inflow: $26.7 billion 0 Public Debt: 78.1% of GDP

8%

Size of market

Forecasted annual growth for the next 5 years*

100

€7 .6 BILLION

25

How much Germans are spending overseas

20 15

8%

10 5 0

*Based on calculations for compound annual growth rates.

2013 data unless otherwise noted.

Data compiled as of September 2014.

24%

Spent via mobile and tablet.

That’s €1.83 Million

41%

219

Use a mobile or tablet

Number of overseas shoppers 54

SOUTH AFRICAN PROPERTY REVIEW

Eye On The World Germany_Rev 1_SUBBED.indd 54

What are Germans buying and where?

2015/07/20 4:38 PM

eye on the world

Architecture German architecture set trends in the first 30 years of the 20th century. The strongest influences came from Weimar and Dessau, where the Bauhaus school was founded in the 1920s and the style that bears its name evolved.

Germany’s contemporary architecture suffered for some time from the country’s difficult situation after 1945. Destroyed cities had to be rebuilt quickly. Millions of people needed a roof over their heads.

Architectural quality often took a back seat to a primarily economically oriented functionalism in building and construction, which paid little heed to shaping a liveable residential and working environment, the consequences of which are still visible in many places today.

With a few exceptions, architects had too few opportunities to implement a style of architecture in keeping with the times.

Today, Germany boasts an increasing number of examples of modern experimental architecture that is in tune with human needs. Many a superb building still owes its origination to the style and philosophy of Bauhaus. More recent trends in architecture have, however, resulted in the construction of remarkable buildings, including the hitech buildings in which important functional elements such as elevators, escalators and

supply lines have been moved to the outside of the structure, where (often painted in different colours) they concurrently serve as decoration.

Der Neue Zollhof in Düsseldorf, designed

by Frank Gehry (© Rick Ligthem/Flickr.com)

Climate Germany’s climate is almost as varied as its countryside but is mostly temperate. Extreme low and high temperatures are rare and mild winter temperatures vary from east to west, with around-freezing temperatures in the west and well-below-freezing temperatures in the east. Summer temperatures in Germany are typically between 20°C and 30°C but generally the country has a temperate seasonal climate dominated by humid westerly winds.

The east has a slightly more continental climate: winters can be very cold and summers very warm, and longer dry periods can occur.

Central and southern Germany are transition regions, which vary from moderately oceanic to continental.

Tourism According to the Anholt-GfK Nation Brands Index, in 2014 Germany was the world’s most respected nation among 50 countries (ahead of the US, the UK and France).

There are 1 300 beer breweries in Germany, making about 5 000 types of beer; so it comes as no surprise that Germans are the second-

Did you know?

In 2005 Germany produced approximately 35% of the world’s wind energy. There are more than 20 000 wind turbines off the coast of northern Germany, the largest of which reach 200 meters in height.

Invented and discovered by Germans: t The light bulb t The automated calculator t The automobile t The walkman t The clarinet t The pocket watch t Television (partly) t The motorcycle t The jet engine t The LCD screen t Insulin t Paraffin t Petrol/gasoline SOUTH AFRICAN PROPERTY REVIEW

Eye On The World Germany_Rev 1_SUBBED.indd 55

55

2015/07/20 4:38 PM

eye on the world

Did you know?

As of 2012, German athletes have won a total of 1 662 Olympic medals (summer and winter combined from 1896 to 2012) – more than any other country in the world except the US. There are two major landmarks visible in this photo of Köln: the High Cathedral of St Peter (right) and the City Hall (left) (© Jason Mrachina/Flickr.com)

largest beer consumers in the world (after the Czechs). But it is not only beer that attracts visitors to this European country: Germany has more cultural sites than any other country. It is home to about 6 200 museums, 820 theatres, 130 professional orchestras and 8 800 libraries, with more people going to exhibitions than in any other country. Almost 100 000 books are published here every year. A global opinion poll for the BBC revealed that Germany was recognised for having the most positive influence in the world in 2013 and 2014.

This is the seventh most-visited country in the world, and Berlin has become the third most-visited city in Europe. Additionally, more than 30% of Germans spend their holidays in their own country. Domestic and international travel and tourism combined directly to contribute more than €43,2-billion to the GDP. Including indirect and induced impacts, the industry contributes 4,5% to the GDP and supports two-million jobs (4,8% of total employment).

There are 39 UNESCO World Heritage Sites in Germany, including the old town centres of Regensburg, Bamberg, Lübeck, Quedlinburg, Weimar, Stralsund and Wismar. The most-visited landmarks are Neuschwanstein castle, Cologne cathedral, Berlin Bundestag, Hofbräuhaus Munich, Heidelberg castle, Dresden Zwinger, Fernsehturm Berlin and Aachen cathedral.

The Europa-Park near Freiburg is Europe’s second most-popular theme park.

Education Responsibility for educational supervision in Germany is primarily organised within the individual federal states. Optional kindergarten education is provided for all children between

56

the ages of three and six, after which school attendance is compulsory for at least nine years.

Primary education usually lasts for four to six years, and public schools are not stratified by academic ability at this stage. Secondary education includes three traditional types of schools focused on different academic levels: the Gymnasium enrols the most gifted children and prepares students for university studies; the Realschule for intermediate students lasts six years; and the Hauptschule prepares pupils for vocational education. The Gesamtschule (comprehensive school) unifies all secondary education. A system of apprenticeship called Duale Ausbildung (dual education) does not lead to an academic degree. Instead, it allows students in vocational training to learn at a company as well as at a state-run vocational school. This model is highly regarded and reproduced all around the world.

Most of the German universities are public institutions, and students have traditionally studied without having to pay fees. The general requirement for university is the Abitur, a qualification normally based on continuous assessment during the last few years at school and final examinations. However, there are a number of exceptions, depending on the state, the university and the subject. Academic education is open to international students and is increasingly common.

In the Academic Ranking of World Universities compiled in 2008, six of the top 100 universities in the world, and 18 of the top 200, are in Germany. The established universities in Germany include some of the oldest in the world, with Heidelberg University (established in 1386) being the oldest in the country.

SOUTH AFRICAN PROPERTY REVIEW

Eye On The World Germany_Rev 1_SUBBED.indd 56

2015/07/20 4:39 PM

advertorial workshop

Understanding green building and its long-term benefits S

APOA and the Green Building Council of South Africa (GBCSA) recently hosted a workshop on the economic and financial benefits of green building.

The GBCSA says the green-building agenda should be high on developers’ lists and notes that, contrary to the popular belief that green building is more costly than regular building, parts of the world have demonstrated that this is not necessarily the case.

The United Nations reports that the global built environment, both commercial and residential, is responsible for 40% end-

A delegate at the workshop

user energy consumption, 40% solid waste generation and 12% fresh water consumption.

Jarrod Lewin, Business Development Manager at the GBCSA says green building is an imperative, and many parts of the world are starting to embrace the idea in a bid to counter climate change and alter mind-sets.

“Big corporates are beginning to highlight green building as a requirement when entering into rental agreements,” he says, adding that when this stops being an anomaly, developers will be left with little choice but to build green in order to attract prospective tenants to their properties.

Jarrod Lewin, GBCSA

The imperative of green building is not only to address climate change but also to make sure that buildings make economic sense for investors

Sian Cohen, GBCSA

SOUTH AFRICAN PROPERTY REVIEW

Benefits of Going Green_SUBBED_with captions.indd 57

57

2015/07/20 12:57 PM

SAPOA events

Office Vacancy Survey Property funds have struggled to fill office vacancies in recent times but South Africa’s vacancy rate remains lower than the global average

By Nthabiseng More

T

Stan Garrun

Joan Goldswain

58

he SAPOA Office Vacancy Survey for Q2 2015 was presented at Hogan Lovell in Sandton recently. Stan Garrun, Executive Director at MSCI Real Estate, presented the latest results with a focus on the Johannesburg office market.

Garrun noted that the SAPOA Office Vacancy Survey (OVS), backed by 25 years of history, is an invaluable tool extensively used by the South African commercial property community.

The OVS started off covering 14 office nodes in 1990; it now covers more than 50 distinct office nodes nationally, and its coverage has quadrupled to 16,9-million square metres as at Q2 2015.

The report revealed a national office vacancy rate of 10,6% as at Q2 2015, which is down 60bps from 11,2% in Q1 and one percent off peak of Q3 2014. This shows the biggest drop in vacancy rate since Q1 2008; however, the rate is in line with the long-term average of 10,4% since 1990.

Garrun notes some drivers of uptake of office the sector. “Capital investment by the financial and business services sector has recovered of late but still at depressed levels,” he says. “This has historically been closely correlated to the office vacancy rate.”

The research notes that the improved vacancy rate has brought an up-tick in asking rental growth, which is up 5,1% year-on-year to Q2 2015.

Vacancy trends are measured using various measurements, including grades.

Grades are as follows: P-grade refers to a top-quality, modern space, which is generally a pace-setter; A-grade offices are generally not older than 15 years or have had a major renovation, and their market rental is near the top of the range in the area where they are located; B-grade refers to generally older buildings that have accommodation and finishes close to modern standards as a result of renovations from time to time; and C-grade buildings are the oldest and tend to lack modern finishes and services.

According to that grading, P-grade office spaces have a vacancy rate of 5,2%, A-grade have 8,6%, B-grade have 12,9% and C-grade offices are experiencing a vacancy rate of 16,5%.

Regionally, the City of Cape Town has the lowest vacancy rate at 8,4%, while Nelson Mandela Bay Municipality has the highest at 14,7%.

“The previous cycle suggests rental growth is in for a bumpy ride as competition for tenants continue to intensify,” says Garrun. “The South African macroeconomic environment continues to face several challenges but the vacancy rate is nonetheless more positive than in the last economic recession the country saw.”

SOUTH AFRICAN PROPERTY REVIEW

GP Research_SUBBED_with captions.indd 58

2015/07/20 11:44 AM

SAPOA events

Delegates at the SAPOA office vacancy survey report workshop.

SOUTH AFRICAN PROPERTY REVIEW

GP Research_SUBBED_with captions.indd 59

59

2015/07/20 11:44 AM

August Region

Date

Event

Gauteng

4 August 2015

Research Breakfast

Gauteng

6 August 2015

SAPOA Audit Risk

Gauteng

11 August 2015

PWC Breakfast

KwaZulu-Natal

11, 12 and 14 August 2015

ECPP Training

Polokwane

12 August 2015

Breakfast: Town Planning Scheme

Polokwane

12 August 2015

Breakfast Session

Gauteng

13 August 2015

Lease Agreement Workshop

East London

14 August 2015

Golf Day

Gauteng

14 August 2015

PWC Power Hour Breakfast

Gauteng

17 to 21 August 2015

FMP Training

East London

19 August 2015

Introduction to Brokering Seminar

Port Elizabeth

19 August 2015

Regional Meeting

TBC

20 August 2015

Introduction to Brokering Seminar

Gauteng

20 August 2015

SAPOA HR Meeting

Mpumalanga

20 August 2015

Networking Breakfast

TBC

20 August 2015

SAPOA Board Meeting

KwaZulu-Natal

25 August 2015

Golf Day

Gauteng

25 to 28 August 2015

ECC Training

Gauteng

27 August 2015

Networking Event

Gauteng

28 August 2015

MOMFA

September Region

Date

Event

Port Elizabeth

1 to 3 September 2015

ICPP Training

KwaZulu-Natal

3 September 2015

Negotiation Skills Masterclass Programme

Gauteng

7 and 8 September 2015

ICPP Training

TBC

7 to 11 September 2015

ECPP Training

Port Elizabeth

8 September 2015

Golf Day

Western Cape

8 to 11 September 2015

ECPP Training

Polokwane

10 September 2015

SANS 10400 Workshop

Gauteng

15 September 2015

Retail Trends Report Breakfast

Port Elizabeth

16 September 2015

Council Meeting

Port Elizabeth

17 September 2015

Networking Event

Mpumalanga

17 September 2015

Golf Day

TBC

17 and 18 September 2015

National Council Meeting

Port Elizabeth

22 September 2015

Golf Day

Mpumalanga

23 September 2015

Networking Dinner

Western Cape

26 September 2015

Property Development Workshop

Gauteng

28 to 30 September 2015

Property Development Workshop

Gauteng

29 September 2015

Legal Breakfast

KwaZulu-Natal

29 September 2015

SANS 10400 Workshop

KwaZulu-Natal

30 September 2015

SACSC Annual Congress

What's On_AUG_SUBBED.indd 68

2015/07/20 11:42 AM

Events and dates subject to change.

October Region

Date

Event

Gauteng

1 and 2 October 2015

IPMP Training

Western Cape

6 to 8 October 2015

ICPP Training

Gauteng

7 October 2015

Media Lunch

Gauteng

8 October 2015

Legal Breakfast

KwaZulu-Natal

15 October 2015

Breakfast Presentation

Polokwane

15 October 2015

Golf Day

Gauteng

17 October 2015

Research Breakfast: Industrial Industry Report

Gauteng

20 October 2015

Industrial Vacancy Report Breakfast

Gauteng

23 October 2015

Brokers Economic Update

KwaZulu-Natal

23 October 2015

Networking Breakfast

Gauteng

26 to 30 October 2015

BCTP Training

Port Elizabeth

29 October 2015

Gala Dinner

November Region

Date

Event

Gauteng

4 November 2015

ECPP Training Course

TBC

5 November 2015

SAPOA Board Meeting

Gauteng

6 November 2015

Legal Power Hour

TBC

10 November 2015

Research Breakfast

Gauteng

11 November 2015

Negotiation Skills Masterclass Programme

KwaZulu-Natal

11 November 2015

Gala Dinner

Gauteng

12 November 2015

Networking Event

TBC

13 November 2015

Networking Evening

Gauteng

16 to 20 November 2015

FMP Training

Gauteng

17 November 2015

FM and IAMP Training Courses

Port Elizabeth

18 November 2015

Council Meeting

KwaZulu-Natal

19 November 2015

Gala Dinner

Gauteng

20 November 2015

Brokers and Legal Update

Polokwane

20 November 2015

Council Meeting

Western Cape

21 November 2015

Property Development Workshop

Mpumalanga

25 November 2015

Gala Dinner

Polokwane

26 November 2015

Gala Dinner

Gauteng

27 November 2015

PwC Half-Day Workshop

Port Elizabeth

29 November 2015

Gala Dinner

December Region Buffalo City

What's On_AUG_SUBBED.indd 69

Date 3 December 2015

Event Developers’ Gala Dinner

2015/07/20 11:43 AM

fun & quirky

Adrian Maserow unravelled He lives on sea salt and Lindt chocolate, wears black clothes and enjoys urban adventures.

This award-winning architect is definitely one of a kind

By Nthabiseng More

Q Would Mahatma Gandhi

have made a good architect? Why?

Probably not. He didn’t wear black clothes.

Q If there were architecture Oscars, would you win (or be nominated)?

Only if SAPOA had a say… (We’ve won two SAPOA Awards for Excellence!)

Q If we gave you an elephant, where would you hide it?

It’s best to keep it in the room, so no-one has to deal with it.

Q Your favourite pastimes?

Gym, reading, golf, urban adventures and travel.

Q What is your favourite colour of socks? Why? Black. It’s not a matter of choice; architects wear black.

Q If we came to your home and looked inside the fridge, what would we find?

Sea salt and Lindt chocolate. I’m not sure about much else.

Q Does your family have a pet?

Do you speak to it?

Not currently. Our remarkable dog died and we’ve never replaced her.

were my heroes – what I know for sure is that I wouldn’t be his hero.

Q What fascinates you about life?

I’m fascinated by people and places, and the inner voice that I’ve lived with since my birth.

Q If you could move Table Mountain to any other province, where would you take it and why?

Q What’s your favourite place to eat?

I’d take it to Limpopo, so that Julius had his way before it was taken to Nkandla.

The Codfather at Sandton Skye. We designed the building, and the owner, George, irritates me if we don’t frequent it.

Q Name five uses of a stapler without staple pins.

Q Would 12-year-old

Toothpaste squeezer, torture device, hair remover [we wonder how…], paperweight and office decoration.

Perhaps, but I’m not sure. I had never met an architect when I grew up in Boksburg. Sports people and musicians

Q How lucky are you?

Adrian be proud of you today?

62

I’m very lucky – it’s in my stars.

Adrian Maserow is a Managing Director at AMA Architects. He is a shareholder at the company with Gerald Pereira and Marco Fanucchi.

The company services clients that include listed property groups, financial institutions, prominent private developers, parastatals and individual owners.

The company is involved in the design and delivery of head office buildings, specialised retail projects, residential developments, extensive commercial refurbishments, office parks, motor showrooms and luxury homes.

SOUTH AFRICAN PROPERTY REVIEW

Fun and Quirky_Rev 1_SUBBED.indd 62

2015/07/20 11:41 AM

CHARLIE BRAVO #445-15

interview

NEED BETTER SPACE?

If you need less space, more space or just better space, contact Redefine Properties today. We have the place you need to work smarter. To view our portfolio, go to www.redefine.co.za or call 0860DEFINE.

OFFICE | INDUSTRIAL | RETAIL

We’re not landlords. We’re people.

SOUTH AFRICAN PROPERTY REVIEW

Jobad a4 445-15 template.indd SA Property 29 Review 297x210mm.indd 1

29

2015/07/17 2015/07/03 10:42 9:35 AM

off the wall

Comfort with the bare necessities If you ever find yourself stranded in Japan, having missed a train or wanting to feel refreshed in a bath for a small fee, visiting a capsule hotel might be just what you need

C

apsule hotels, popular in various cities in Japan, are accommodations that have thrown away the idea of a single private room, and have instead focused on basic necessities such as sleep and bathing to provide the best stay at the lowest prices.

The capsule hotel made its debut in Osaka in 1979 with a men-only hotel known as the Capsule Hotel, situated in the city’s bustling Umeda district.

Architect Kisho Kurokawa designed the hotel as an extension of Tokyo’s residential and office tower, Nakagin Capsule Tower, which was built in 1972 with small, capsulelike apartments.

Capsule units are primarily used for sleep and resemble a large sunbed. They can almost be likened to a coffin – with extra legroom.

Rooms are equipped with beds and TV sets, in addition to basic necessities.

The level of comfort has increased from when these hotels initially became popular.

64

Today, some capsule hotels have large baths, saunas and spacious lounges that are even better equipped than some business hotels.

In recent years, value-adding services such as ladies-only floors, sophisticated business lounges and tablets are making capsule hotels increasingly popular among travellers and locals alike.

Because of their tiny rooms, capsule hotels have many more rooms than regular hotels, are often located near public-transport hubs, can generally be accessed without prior booking and usually costs between US$30 and US$50 per night.

Due to space limitations in the rooms, visitors with luggage are usually offered lockers in which they can keep their belongings before heading off to bed.

The walls of the capsules are thin – but if you see yourself as a courteous neighbour, staying at one of these convenience hotels might be worth consideration.

SOUTH AFRICAN PROPERTY REVIEW

Off The Wall_AUG Rev 1_SUBBED.indd 64

2015/07/20 2:29 PM

interview

MECHANICAL ENGINEERING SERVICES AND CONSULTING SALES | INSTALLATION | MAINTENANCE | DESIGN

AIR CONDITIONING AIR CONDITIONING CONTROLS VENTILATION REFRIGERATION PUMP AND PUMPING SYSTEM

| 010 210 7005 | LESEGO KENOSI | 082 701 9353 | LESEGO@BMES.CO.ZA

www.bmes.co.za

SOUTH AFRICAN PROPERTY REVIEW

a4 ad template.indd 29

29

2015/07/17 10:40 AM

1

2

interview

Proactive Quantity Surveying 3

4

1 Head office for Ecobank in Accra, Ghana. Architects: Arc Architects 2 West Hills Mall in Accra, Ghana for a subsidiary of Atterbury Properties. Architects: Arc Architects 3 Student accommodation in Pretoria for the Feenstra Group. Architects: Boogertman + Partners 4 Vdara Office Park in Johannesburg for Bakos Brothers. Architects: Integrale Architectural Design

Our track record speaks for itself.

DelQS was established in 2000 and has since built up a remarkable track record. We have provided quantity surveying services for almost all building types ranging in construction cost from relatively small to multi-billion Rand developments. Building and property economics is a specialty.

QUANTITY SURVEYING

Gerhard de Leeuw

Akopo Africa

Nico Roos

Dr CornĂŠ de Leeuw

DISPUTE RESOLUTION

PROPERTY VALUATION

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

SOUTH AFRICAN PROPERTY REVIEW

a4 ad template.indd 29

29

2015/07/17 11:06 AM