South African Property Review March 2015

South African Property Review

PROPERTY SOUTH AFRICAN

March 2015

REVIEW

Empowered Spaces The industrial “design” revolution

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Architects and interior design

Menlyn Maine Pretoria’s “Sandton” rises

Woodstock Cape Town’s darling of regeneration

by-country focu try-

The Philippines Islands of opportunity

AFRICA SERIES Rwanda’s riveting revival

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contents

March 2015

PROPERTY SOUTH AFRICAN

Abland

REVIEW

South African Property Review March 2015

PROPERTY SOUTH AFRICAN

March 2015

REVIEW

Empowered Spaces The industrial “design” revolution

sl

The WOR

series

l

monthly cou n Our

Architects and interior design

Menlyn Maine Pretoria’s ‘Sandton’ rises

LD

Woodstock Cape Town’s darling of regeneration

by-country focu try-

The Philippines Islands of opportunity

ON THE COVER Empowered Spaces is experiencing and designing for a new industrial revolution, with the design of its buildings taking a holistic approach to this new dynamic.

Abreal

AFRICA SERIES Rwanda’s riveting revival

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From the CEO From the Editor’s desk Industry news Education, training and development Legal update Theme leader Sustainable landscapes Africa uncovered Rwanda Anecdotes from Africa Having an African antenna Eye on the world The Philippines Feature Industrial “design” revolution Feature The Maine attraction Feature Re-stitching the city Flashback Rissik Street Post Office Feature Shaping the landscape of tomorrow Feature The Marcsmanship of a property mogul Feature Whimsical Woodstock Profiles Statistics What’s On Upcoming events SAPOA upcoming national events Fun & quirky Dr Eitan Karol Off the wall Africa rising

Oilgro

FOR EDITORIAL ENQUIRIES email editorial@sapoa.org.za or managingeditor@sapoa.org.za.

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 Candace King Copy Editor Ania Rokita Production Manager Dalene van Niekerk Designers Wade Hunkin, Dirk Knoesen Sales Riëtte Stevens Finance Susan du Toit Contributors Eugenia Makgabo, Jonathan Leibowitz, Libo van Aswegen, Martin Ferguson, Michelle Marais Photographers Chris Bam, Mark Pettipher, Michael Glenister 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

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

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e: david@rsalitho.co.za

2015/02/03 4:00 PM

from the CEO

Taking the load off Eskom SAPOA CEO Neil Gopal calls on property owners to engage with Eskom amid South Africa’s power crisis

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ver the past few months, Eskom has dominated the news as South Africa’s ageing power grid continues to falter and the lights go out across the country, negatively impacting cities, businesses and citizens.

The country suffered its worst outages in 2008, and 2014 proved to be just as dire, with the current situation sparking widespread anger and concern. The frustration is set to escalate as further large-scale load shedding is expected.

Because of limited generating capacity, ageing infrastructure and numerous technical issues at its power stations, Eskom has struggled to keep the lights on as the demand for electricity rises. Eskom Chief Executive Officer Tshediso Matona has warned that the ageing power grid needs extensive maintenance, which hasn’t been done regularly over the past few years. To ensure a sustainable electricity supply into the future, the system will have to undergo frequent maintenance over the next few months before new generating capacity comes online.

Matona also alarmingly warned that one unexpected event at any of the utility’s power stations could propel the country to a total failure of the country’s electricity system, resulting in a national blackout that may take weeks to resolve. This could have ominous consequences for the commercial property sector. Thus SAPOA has called on the country’s commercial property owners to work with Eskom to help alleviate the energy issue at hand. Simultaneously, SAPOA has engaged with Eskom on the matter in order to come up with solutions.

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While load shedding negatively impacted overall business production for several months in 2014, further load shedding is expected to continue in April 2015, with the property sector, particularly retail, set to be affected.

Retail (and its related property sector) plays a powerful role in South Africa’s consumerdriven economy. Load shedding substantially inhibited the ability of retailers to trade optimally during the 2014 festive season – the most crucial few weeks of the year for their businesses. This stands to have far-reaching negative impacts for South Africans.

Last year was a tough one for retail in South Africa, with consumers being hard-hit by the country’s weakened economy. Business giants such as ABIL have failed, with adverse impacts for other sectors, such as property.

South African consumers and retailers face a gruelling road ahead, with a grim economic outlook that’s not likely to improve any time soon. This places many retail businesses in a fragile position – one that simply can’t stand up to the knock of losing all-important trade.

Businesses in the retail chain are failing because they can’t manufacture, pack, trade and serve without electricity. Lower turnovers and more retailer failures stand to undermine economy, damage the property sector, escalate job losses and place South Africans in an even weaker position.

At the end of 2014, SAPOA urged Eskom to reassess its load-shedding schedules in light of the harmful impact the power outages had on retailers during the valuable peak festive season trading times. Furthermore, SAPOA met with shopping-centre owners as well as several Eskom representatives on 10 December to discuss the way forward.

Positively, Eskom has proposed a partnership programme that will help to increase the reserve margin and maintain a supply/ demand balance on the national grid.

The Standby Generator Compensation Programme offers customers an opportunity to partner with Eskom in managing the current power supply constraints – 100MW worth of backup/standby generators is now being contracted to run at Eskom’s request during periods of high electricity demand.

Eskom will ask qualifying participants to run their generators and supply some, or all, of their own electricity requirements to assist in lowering the total electricity demand on the national grid. Participants will receive financial compensation for successful generation.

While we urge government and Eskom to deliver swift and effective solutions to the energy crisis, SAPOA hopes that property owners will participate in a collaborative effort to keep the lights on in 2015.

Neil Gopal, CEO

We are likely to load-shed on most days in the future

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from the CEO

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2015/02/03 1:22 PM

from the Editor’s desk

Mimicking Mother Nature The environment can solve many of our problems – and the solutions can be traced to the tiniest agents of nature

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n my book, nature is awe-inspiring and is the answer to almost everything. I’m not alone on this one: Albert Einstein once said, “Look deep into nature, then you will understand everything better”.

As our natural environment constantly shifts, change is inevitable. In the same vein, our built environment is persistently changing, evolving with the times and trends of today.

With change a commonality between nature and man-made technology and development, it’s no wonder that architects, designers and engineers draw inspiration from Mother Nature in their building and product designs.

Google “architecture influenced by nature”, and a string of articles pops up. One particular article that piqued my interest delved into 10 amazing architectural designs from around the world that were inspired by nature.

Based on bamboo and designed by CY Lee & Partners, the Taipei 101 building located in the Xinyi District in Taiwan’s capital city was formerly known as the Taipei World Financial Centre and was ranked as the tallest building in the world from 2004 to 2009.

Built with 110 000 tons of steel, the Beijing National Stadium was modelled on a bird’s nest and was designed by Swiss architecture firm Herzog & de Meuron for the 2008 Summer Olympics and Paralympics in Beijing, China.

Then there’s the lotus flower-inspired Lotus Temple in New Delhi, India; the seashell-based Aldar Headquarters building in Abu Dhabi; the cactus-like Office of the Minister of Municipal

Affairs and Agriculture in Doha, Qatar; and the water-cubed Beijing National Aquatics Centre.

Closer to home, the astonishing Eastgate Centre in Harare, Zimbabwe not only epitomises best green architectural practice but also showcases the brilliance of nature in one of its most smallest forms – the termite.

As Zimbabwe’s largest office and shopping complex, the design of the Eastgate Centre is based on biomimicry principles – an approach to innovation that seeks sustainable solutions to human challenges by emulating nature’s time-tested patterns and strategies.

© Sou Fujimoto Architects, NL*A, Oxo Architects and RSI L’Arbre Blanc (the White Tree)

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Designed by architect Mick Pearce in collaboration with Arup, the mid-rise building boasts no conventional air-conditioning or heating, but remains constantly regulated and utilises dramatically less energy consumption via design methods inspired by the self-cooling mounds of African termites.

Within their constructed massive mounds, termites farm a symbiotic fungus – which serves as a key food source – that is precisely temperature controlled. The termites achieve this by opening and closing a series of heating and cooling vents throughout the mound.

Mostly made out of concrete, the 55 000m² mixed-use Eastgate Centre makes use of a ventilation system that works in the same manner as a termite mound. The temperature of the external air that is sucked in is controlled by the building mass depending on which is hotter, the building concrete or the air.

Because of the location’s temperate climate characterised by typical daily temperatures of between 10°C and 14°C, the building was naturally designed to achieve passive cooling, a system that works by storing heat during the day and venting it at night as temperatures drop.

According to Pearce’s website, “Eastgate’s ventilation system costs one-tenth that of a comparable air-conditioned building, and uses 35% less energy than comparable conventional buildings in Harare.”

In Montpellier, France, Japanese architect Sou Fujimoto (in collaboration with architects Nicolas Laisné and Manal Rachdi) has designed a 10 225m² tree-inspired mixed-use apartment building that epitomises the city’s tradition of outdoor living.

Dubbed L’Arbre Blanc (the White Tree), the 17-storey tower block is shaped like a pine cone, with various balconies sprouting out of the structure in all directions. The building is designed to feature housing, a restaurant, an art gallery, offices, a bar with a panoramic view and a common area.

We can all learn a great deal from nature.

By borrowing its methods through biomimicry, we can not only make our buildings better but also preserve nature itself.

Candace King, Editor

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CONVENTION AND PROPERTY EXHIBITION

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1 st. 96 from the Editor’s desk

THE ANNUAL SAPOA INTERNATIONAL

DURBAN - ICC

19 - 21 MAY 2015

THE REAL IN REAL ESTATE

property, people, purpose & passion

Eusebius McKaiser will once again be MCing the Annual SAPOA International Convention and Property Exhibition

Eusebius McKaiser is a best-selling author, broadcaster, political analyst, lecturer, columnist and public speaker.

• Winner of both the national universities debat championship, and the world masters debate title in 2011.

• Coaches debate and public speaking locally and abroad.

• Author of two bestselling books, A Bantu In My Bathroom and Could I Vote DA? A Voter’s Dilemma.

• Hosted a number of radio and television shows focusing on current affairs at the SABC and on both Talk Radio 702 and Power FM • Holds a masters degree in philosophy (with distinction) • An Assocaite at the Wits Centre of Ethics • Writes weekly for the Independent Newspapers group and, has previously been a columist for The New York Times

Enquiries: Jane Padayachee: t: +27 (0)11 883 0679 f: +27 (0)11 883 0684 e: marketingmanager@sapoa.org.za

www.sapoaconvention.co.za SOUTH AFRICAN PROPERTY REVIEW

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11:38 AM 2015/02/06 11:37

industry news

Smooth sailing for retail at the V&A Waterfront

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Baywest’s Eastern Cape employment boost

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he opening of the R1,7-billion Baywest Mall in Port Elizabeth this April – the Eastern Cape’s largest retail and entertainment centre – will bring with it the creation of up to 2 500 permanent jobs while development to the tune of R500-million rolls out around the centre, say the developers.

The project is a joint venture between Billion Group, headed

by Johannesburg property magnate Sisa Ngebulana, and the Stellenbosch-based Abacas Asset Management, responsible for Cape Town’s Cape Gate shopping centre and Mooi Rivier Mall in Potchefstroom, among others.

Speaking about the economic impact of the mall on the region, Baywest Managing Director Gavin Blows says an average of 10 permanent jobs will be created to staff the mall’s 250 retail outlets.

On top of this, staff will be needed for security and cleaning services at the 90 000m² GLA centre – contracts that would be advertised in the coming weeks. “Because Baywest Mall is the catalyst to the entire Baywest City development, development will continue around the mall once it opens in April,” Blows explains. “We already have R500-million worth of development lined up for this year, which includes office blocks and a car showroom.”

Tenants such as Shoprite-Checkers have meanwhile begun the hunt for employees to staff their Baywest outlets, with advertisements in the local media and CV collection points at their Port Elizabeth stores. “We have been inundated with requests for work at the mall,” says Blows.

“Our community liaison officer has already received more than 500 CVs for our database. We will pass the database on to our tenants as they begin their search for staff.”

With major anchor tenants including Woolworths, Game, ShopriteCheckers, Edgars and Pick n Pay, Blows says the centre’s full tenant list will be revealed in the weeks leading up to the April opening.

A key attraction at the mall is its R100-million Fun Factory wing featuring the province’s only ice rink, allowing for the formation of ice hockey leagues and school sports teams. Eight Ster-Kinekor cinemas, restaurants, a ten-pin bowling alley and a state-of-the-art games arcade will also form part of the Fun Factory, says Blows.

Also included in phase one of the Baywest City development is a gym, a private school and hospital, 100 000m² of office and commercial tenants, and about 2 000 housing opportunities. Phase two will add another 2 000 housing opportunities, a light industrial park and valueretail developments. “Baywest City is a long-term investment in the region,” says Blows. “It’s going to change the face of the city and put the Bay on the leisure and corporate tourism map, growing much the same way as Century City in Cape Town has grown around Canal Walk shopping centre.” +27 (0)41 373 4100, Baywestmall.co.za

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he V&A Waterfront remains on course to achieve double-digit retail growth for the fourth consecutive year, with 2014 retail results reflecting actual year-on-year growth of 19%, marginally down on 2013’s 20%, and visitor numbers for the year hitting 24-million.

“Our strong performance is the result of our strategy to ensure the V&A Waterfront is fresh and relevant for locals and internationals alike,” says Chief Executive Officer David Green, speaking about the V&A Waterfront’s consistent performance. “Over the past two years we have focused on redeveloping existing areas, spending R135million, which included the redevelopment of the Food Court, increasing the Pick n Pay store footprint and creating The Watershed, Africa’s new home for craft and design. Our visitor numbers show that we have proportionally more Capetonian visitors than ever before, with the reason they give for returning being the V&A Waterfront’s diverse and enhanced food, retail and entertainment offering.

Domestic and international tourism also remains robust, with statistics showing that almost all foreign visitors to Cape Town visit the V&A Waterfront at least once.”

“There has been a clear focus on broadening our appeal as a shopping destination,” says the V&A Waterfront’s retail executive Alex Kabalin. “A strong differentiator for us is being able to cater to the typically discerning customer as well as the more value-conscious one.

And research undertaken recently has shown that our focus on families and affordability is starting to pay off. We also constantly review and refresh our tenant mix, paying careful attention to brand adjacencies to ensure like-minded retailers are clustered together for convenience shopping and appeal to core target markets.

“As well as looking at bringing in new offerings, many of our existing retailers and eateries have also focused on world-class refurbishments and improvements. This continuous review of the offering has enabled the

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industry news V&A Waterfront to maintain its position in a highly competitive retail market, and it has helped to attract a quality mix of retailers and food and beverage tenants, which in turn has attracted more visitors.”

During 2014, the Victoria Wharf Shopping Centre balanced the introduction of affordable retail brands such as Cotton On and the re-branded new-look MRP store with luxury international brands such as Longchamp and the first Calvin Klein store in South Africa. But the highlight of 2014 has been the amalgamation of the Red Shed Workshop and the Blue Shed (the old craft market and wellness centre) into the new Watershed. Since opening in October 2014, the light, airy new space has proved popular with visitors.

“The purpose of the Watershed is twofold,” says Kabalin. “On one hand, it’s a small-business incubator; on the other, it’s a retail outlet with a product offering and range focusing on artisans and designers, presenting the best of the continent under one roof. The retail mix includes artworks, precision-made furniture, hand-crafted jewellery,

textiles, furnishing, ceramics, accessories, contemporary curios, and more.”

The new Wellness hub, which opened in November 2014, is located on the mezzanine level of the Watershed, and offers a variety of affordably priced, revitalising products and walk-in therapies.

Looking ahead, the V&A Waterfront has announced the redevelopment of the Kings Warehouse in the Victoria Wharf Shopping Centre, which is expected to be completed in late 2015.

The redeveloped Kings Warehouse will house a new multi-level 4 500m2 H&M store. The world’s number-one clothing retailer announced at the end of August 2014 that it would be opening its first South African store in 2015.

In addition to H&M, UK toy store Hamleys has also announced its intention to open the first South African store at the V&A Waterfront, taking up approximately 1 000m² of the available space in Kings Warehouse.

All existing tenants currently housed in the Kings Warehouse will remain at the V&A Waterfront. +27 (0)21 408 7500, Waterfront.co.za

Substantial rejuvenation project for Nelson Mandela Square

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elson Mandela Square is currently undergoing a major refurbishment. The redevelopment project aims to restore the precinct as one of the premier lifestyle and dining destinations in Gauteng.

“Nelson Mandela Square has been trading in its current format for almost 20 years and plays an important role within the broader Sandton complex,” says Alex Phakathi, Liberty Property Portfolio Fund Manager at STANLIB Direct Property Investments, asset managers for the Liberty Group’s property portfolio. “This face lift will ensure the tenant mix and aesthetics align to that of the recently refurbished and expanded Sandton City.”

Phakathi has confirmed that a number of exciting new local and international concepts are under negotiation for the revamped square. “Our ability to attract top international retailers to the node is proof of the strength of the South African retailer marketplace and the confidence of these retailers in our economy,” he says. “We are extremely excited about the plans to refurbish Nelson Mandela Square because it not only ensures the longevity of the centre but also enhances its ability to generate returns and secure stable returns for policy-holders over the long term.”

“The plan is to completely modernise and improve the aesthetics throughout the centre,” says Amelia Beattie, Chief Investment Officer, STANLIB Direct Property Investments.

“This, together with new retail brands and dining options on a rejuvenated piazza area, will ensure a sustainable future for Nelson Mandela Square in a competitive marketplace.”

She also says another key motivator for the development is to address the visibility issues between the two floors of the mall area. “We have plans to bring in a new anchor tenant with a double-height store-front, and space that spans over two levels,” she says, adding that Nelson Mandela Square’s central location and proximity to the Gautrain, together with its renowned statue of Nelson Mandela, draws an international following and local interest.

“The centre’s foot count figures resemble those of superregional stature,” says Beattie.

The redevelopment project reinforces Liberty’s commitment to enhance the potential of the various properties within the Liberty Group portfolio. The refurbishment’s completion is expected around July 2015, and all finishes and facilities will be upgraded and modernised. +27 (0)11 448 6000, Stanlib.com

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industry news

Old Mutual and Pareto announce deal for full ownership of landmark malls valued at R10-billion

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ld Mutual Life Assurance Company South Africa Limited (Old Mutual) and Business Venture Investments No 1360 (Pty) Limited represented by Pareto Limited (Pareto) have entered into an asset-swap transaction involving major shopping centres Menlyn Park and Cavendish Square.

The asset swap will mean that Pareto will acquire the 50% share of Menlyn Park it doesn’t already own from Old Mutual, and Old Mutual will acquire the 50% share of Cavendish it does not own from Pareto, with the net consideration payable in cash.

The two landmark shopping centres have been equally owned by Old Mutual and Pareto for five years. There has been development in both centres, with Menlyn

currently undergoing a development upgrade.

Together, these assets represent about R10-billion of prime retail property investment.

According to Peter Levett, Managing Director of Old Mutual Property, which manages both properties, the asset swap was mutually beneficial for both companies and the decision was based on ensuring optimal growth in their respective property portfolios. “We are very pleased with this value enhancing, which gives us outright ownership of a key retail centre, Cavendish, and enables us to access additional development opportunities within our portfolio,” says Levett. “Our ability to reinvest the net cash proceeds in new developments will further enhance value in our strong

portfolio of retail, office and industrial assets, which total a combined R20-billion.”

“We are thrilled that this transaction will see Pareto becoming the outright owner of another regional shopping centre,” comments Marius Muller, Chief Executive Officer of Pareto.

“Menlyn Park Shopping Centre is an unrivalled retail property that is an ideal fit for Pareto’s portfolio, especially as its current R2-billion redevelopment reflects Pareto’s strategy of adding value to our assets. The year 2014 has marked significant strategic growth of Pareto’s portfolio of strongly trading malls, with Pareto securing sole ownership earlier this year of other landmark retail property assets across Gauteng and the Free State.” +27 (0)11 258 6800, Pareto.co.za

Marius Muller, Chief Executive Officer of Pareto Limited

Broll Auctions and Sales launched

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Malcolm Horne, Group Chief Executive Officer of Broll Property Group

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n keeping with its growth strategy, Broll Property Group and Greenday Property have partnered to launch Broll Auctions and Sales, a new service line within the Group that specialises in property auctions, deal-making, tenders and private treaty sales.

Malcolm Horne, Group Chief Executive Officer of Broll Property Group, explains that the joint venture between the two companies will help to further strengthen the Broll brand, and Greenday Property ticked all the boxes of what Broll was looking for in a partner in this venture.

“We want to align ourselves with a partner with a sustainable long-term vision but we also want what’s best for our brand and business,” says Horne, adding that the time was right to venture into auctions as they believe there is a huge opportunity to leverage each other’s strengths and move even faster towards achieving the Group’s long-term vision.

According to Norman Raad, founder and Director of Broll Auctions and Sales, the synergy between private treaty sales and auction platforms inevitably led to this partnership. “Through the Broll network of experienced commercial property brokers and the auction platform, Broll Auctions and Sales will facilitate the disposal of quality stock in a short period of time, allowing the Broll brokers to give their clients another alternative,” he says, adding that the partnership will allow Greenday Property to be associated with a brand that lends credibility to the market and attract top quality brokers in the country.

“Broll’s vision remains the same: we always put our clients’ needs first, solving their problems and identifying valuable opportunities to enhance their business,” says Horne.

Asked about the auction property market, Raad says

it is buoyant and that they are seeing huge demand for quality property stock with anchor tenants on long-term lease agreements in the big metropolitan areas.

He notes that, with six additional new property funds that listed on the Johannesburg Stock Exchange in 2014, their view is that the listed property sector will continue to outperform its peers. At the same time, demand for quality stock will increase, especially in this sector.

Broll Auctions and Sales will hold its first multiple property auction on 26 March at 12 (midday) at the Bidvest Wanderers Stadium in Illovo, Johannesburg. Raad says they have already secured quality stock comprising of 17 commercial properties nationwide to be sold at the fall of the hammer. +27 (0)11 441 4043, Broll.co.za

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industry news

Ooba’s fourth quarter 2014 results show that SA property market set to rise in 2015

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tatistics for the fourth quarter of 2014 released by Ooba, South Africa’s largest bond originator, signal a positive growth for the South African property market in 2015. The quarterly Oobarometer shows that the property market fared well in 2014, with growth of 5,5% in the average house purchase price in the fourth quarter of 2014, compared to Q4 of 2013.

The average house purchase price reached a high of R978 502 in Q4 2014 compared to R927 381 in Q3 2013. “The 2014 property price growth rate is particularly significant considering the estimated economic growth rate of only 1,4% for last year,” says Rhys Dyer, Chief Executive Officer of Ooba. “Improved lending conditions illustrated

by Q4 2014’s higher approved bond size, lower average deposit and higher successful approval rates are expected to continue to positively influence the property market in 2015. We expect interest rates in the first half of 2015 to remain unchanged as a result of the expected drop in inflation

Rhys Dyer, Chief Executive Officer of Ooba

driven by the fall in fuel and food prices. This will give prospective home buyers additional disposable income, positively affecting their ability to afford a home loan while keeping the property market buoyant.”

Dyer predicts improved growth in house prices in 2015 on the back of expected stronger local and international economic growth. Investor interest in the property market should partly drive this trend, with the buyto-let market expected to show some recovery in 2015 to satisfy increased demand for housing.

“It is still a good time to gain a foothold on the South African property ladder, particularly for first-time home buyers, as interest rates are relatively low,” says Dyer. “And with one of the highest approval rates in the market, Ooba continues to prove that using a bond originator gives home buyers a better chance of getting a competitive approval in the shortest possible time, and at no additional cost.” +27 (0)21 481 7300, Ooba.co.za

Vukile scores prized new industrial complex in the final phase of Linbro Business Park development

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ukile Property Fund has launched its recently acquired 15 000m² industrial business park, part of the last phase of development at Linbro Business Park, a leading, firmly established business and industrial node in Gauteng. Named 7 on Mastiff Business Park, Vukile’s newest asset carries an investment of R124million and comprises 22 flexible mini and midi units in sizes ranging from 440m² to 2 000m².

“We are pleased with our acquisition of this prime industrial complex at an initial yield of 10%,” says Laurence Rapp, Chief Executive Officer of Vukile Property Fund. “It is also underpinned by a one-year income guarantee. This key industrial area has demonstrated good performance and strong demand. 7 on Mastiff Business Park is ideally positioned to benefit from this.”

Vukile Property Find’s new industrial complex is located in Phase Six North of Linbro Business Park, which is being brought to market to satisfy demand, explains Brian Rose of Stratford Property Ventures, developer of 7 on Mastiff Business Park on behalf of Vukile. This phase is the final opportunity for new development at one of South Africa’s premier business and industrial estates.

Among the many drivers of Linbro Business Park’s success is its exceptional location, which is right at the Marlboro interchange of the N3 highway and less than two kilometres for the Gautrain’s Marlboro station. This also provides excellent access to the Sandton CBD and Gauteng’s highway network. Available for occupation, 7 on Mastiff Business Park benefits from gatehouse access control to top-quality units in a secure, modern estate. Each attractive unit features a dedicated parking area as well as the capacity for mezzanine floor offices, and is flexible to accommodate each user’s specific business needs.

These well-designed factory, warehouse and showroom units enjoy a prime position surrounded by many of South Africa’s leading brands and multinational businesses such as ABI, Peugeot Citroen South Africa, Forsdicks, Amrod, Eurolux and Lighting Warehouse head office. Including 7 on Mastiff Business Park in Linbro Business Park, JSE-listed REIT Vukile Property Fund holds a diversified portfolio of 79 property assets valued at R10,6-billion. +27 (0)11 288 1002, Vukile.co.za

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2015/02/04 8:44 AM

industry news

Atterbury to develop new PwC head office in the first high-rise for Waterfall City

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tterbury Property has confirmed it will develop the new head office of PwC at Waterfall City, Midrand. It will be an iconic 26storey building, and the first high-rise within the booming precinct.

This follows the signing of a lease agreement between PwC and Attacq on 15 January 2015, confirming the development of new headquarters for the accounting and professional services firm at Waterfall City.

The R1,5-billion high-rise building, comprising 40 000m² of modern offices, is designed to house 3 500 PwC employees in an efficient, optimally designed work space. It will be developed in a prime location overlooking the Waterfall City Park and 127 000m² Mall of Africa super-regional shopping centre, which are under development and set to open in 2016. Attacq Waterfall Investment Company (AWIC) holds the development rights to the prestigious Waterfall City, and is 100% owned by JSE-listed Attacq.

Atterbury Property Developments is responsible for coordinating this commercial real estate project for and on behalf of AWIC. “We are proud to work with PwC as the developer of its new head office, which is set to become a landmark building for South African business in Attacq’s pioneering Waterfall City,” says Atterbury Property’s

Director of Commercial Development, Jeanne Jordaan. “Earthworks for the new PwC building have already commenced and construction will begin in the first quarter of 2015. The project is expected to take 36 months and is scheduled for completion at the beginning of 2018.

The PwC Tower is designed by LYT Architecture and will be constructed in phases because of the unique design of the structure, which gently twists through in its height to frame the urban park that forms the green heart of Waterfall City. The building is also designed to conform to the internationally recognised Leadership in Energy and Environmental Design silver standard. “The brief for the PwC Tower at Waterfall City called for an iconic building that would be unique to the development and that would mark the property as a top-tier destination for business,” says Guy Steenekamp, a director at LYT Architecture. “Given the height of the building and that it is situated on a high point in Waterfall City, it will be the tallest structure in the corridor between the Sandton CBD and the Pretoria/Tshwane CBD, and visible from almost anywhere within a 30km radius.”

Adding to the tower’s uniqueness is its positioning adjacent to the Waterfall City Park, which is set to be a lush and vibrant public green space in the tradition of world-class cities across the globe.

“It has been proved that responsive and meaningful open spaces improve quality of life and adjoining property values,” Jordaan explains.

“The Waterfall City Park has been designed around these principles.”

Waterfall City Park will span 1,3ha of beautiful green parkland and a link to Mall of Africa at its Town Square. Waterfall City Park is positioned on five levels of super-basement, already under construction, and encircled by the bustling Waterfall City, with its mixed-use development including offices, as well as the mall itself. “The park grounds are in the perfect position to provide well-designed social and recreation amenities in the heart of this modern hub – for city dwellers, office workers, residents and visitors,” says Jordaan. “The attractive gardens provide a playground for a multitude of outdoor activities and recreation options, and also include an intimate amphitheatre with an interactive fountain and stage area.” +27 (0)10 596 9800, Atterbury.co.za

SA’s commercial property sector faces a highly competitive year

“E

xpect massive competition in the scramble for good property and tenants,” says Izak Petersen, Dipula Income Fund Chief Executive Officer, of South Africa’s commercial property sector in 2015. He foresees a year that will bring heaps of hard work for the sector, with only select opportunities of good assets available to the market. “I fear that electricity issues are going to frustrate and slow down business,” he says. “Some property developments may have to be shelved because of a lack of electricity supply. But we’re likely to see innovative solutions to get around this challenge.”

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There will be relatively limited speculative development activity in the market.

Looking at positive drivers that may counter the slow

Izak Petersen, Chief Executive Officer of Dipula Income Fund

economic growth and electricity supply challenges, Petersen points to falling oil prices as a bright spot that will provide some cushion for rising inflation, but cautions that the weak rand will have somewhat of a counter-effect.

“We believe rates will remain unchanged in the short term, which bodes well for property.”

Offices are likely to remain the weakest link for commercial property in 2015. “They already face oversupply issues with a lack of big users,” he says. “Our tough economy also adds to the pressure on the sector because of the elasticity of demand and price sensitivity of its users, especially smaller and medium users.”

He also warns most tenantdriven developments for big users will result in increased vacancies as they vacate existing space.

Looking to other commercial property sectors, Petersen believes retail and industrial property should hold up better.

“But we do not see either one shooting the lights out, and retail turnovers are likely to be under pressure with consumers remaining under strain,” he says.

“Despite the challenges ahead, we still anticipate listed real estate to outperform bonds, cash and equities. We further expect to grow Dipula’s net income well in excess of inflation, and grow our portfolio organically by executing our sizeable development and acquisition pipeline of more than R1-billion.” +27 (0)11 325 2112, Dipula.co.za

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industry news

Turner & Townsend appointed for new Grant Thornton JHB office

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urner & Townsend has been appointed by Grant Thornton Johannesburg to provide project and cost management services for the refurbishment of The Willows – the international accountancy firm’s new office premises in the Wanderers Office Park on Corlett Drive in Illovo.

The offices will be renamed within the next few months.

Scheduled for completion in March 2015, the refurbishment project has a capital investment of more than R26-million. Set to be the Johannesburg office’s solely owned premises, the development will bring Grant Thornton’s 500 Johannesburgbased employees under one roof for the first time since Grant Thornton & PKF’s Johannesburg operations merged in July 2013.

The office space of 11 000m² is

located over three floors, creating new parameters for a modern working environment.

Turner & Townsend will support renovations to the existing building, including an upgrade to the exterior.

The consultancy has also been appointed to oversee the rollout of the interiors fit-out. On completion, staff and tenants – including Grant Thornton investee companies ORCA and Prism – will benefit from two lifts, open-plan offices, large communal atrium areas and greenery, with a touch of purple throughout (this being the corporate colour of Grant Thornton.

“We are proud to be playing such a pivotal role in this major project,” says Keith Skinner, Director at Turner & Townsend.

“Our global expertise in this

sector will ensure the office accommodation meets the ambitions of Grant Thornton: to enhance productivity, ensure the firm is an employer of choice and provide distinctive client service.

Keith Skinner, Director at Turner & Townsend

Throughout the project, both teams will work to ensure completion on time, within budget and to specification.”

Other major refurbishment projects completed by Turner & Townsend in South Africa include refurbishment of the façade of Pretoria Tower, a 37-storey multitenanted office block in Pretoria CBD, on behalf of Zenprop, and refurbishment and fit-out of two office buildings on the Barloworld Campus in Sandton.

“The new office will be a milestone for the firm, as we expand our business and help our clients grow,” says Andrew Hannington, Chief Executive Officer of Grant Thornton. “The partners and directors of our firm will become owners of their premises for the first time. Turner & Townsend is an established name in the industry, which made them a natural choice for such a significant development.” +27 (0)11 214 1622, Turntown.com

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education, training and development

SAPOA’s e-learning on a roll SAPOA’s e-learning educational programmes for 2015

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Martin Ferguson, SAPOA’s HR, Education, Training and Development Manager, collaborates with thought leaders in South Africa’s property sector

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he methods of education have evolved through generations from the use of chalk and board to pencil, pen and paper – and now the click of a mouse button.

Today’s generation is becoming more dependent on technology, using the internet to interact with the world and further their learning experience.

We have seen with the start of the 2015 school year that, at primary school level, the face of learning is not going to change drastically but has changed to a certain extent with the introduction of tablets for learners. Gone are the days of carrying books to school – now your tablet contains everything you need.

In keeping up with new educational trends, SAPOA has developed an e-learning training method. SAPOA has partnered with Hypenica and has created a training platform that enables SAPOA to manage the delivery of training and training material to audience groups, who will be able to access the training on their desktops, tablets and mobile devices.

By not compromising the standards of education, the e-learning platform will be making a difference by building capacity, by bringing hope of change, and by providing skills to people who under normal circumstances would not have the opportunity to develop their knowledge.

It is SAPOA’s mission to impact its members with positive change by giving them a chance to study.

E-learning will also be welcomed by younger generations as we develop their skills in a manner that they not only understand but also prefer and feel more comfortable with.

Our first e-learning programme The first SAPOA e-learning training programme is the very popular Essential Commercial Property Programme (ECPP). Delegates will be able to do this course over a three-month period on the e-learning platform, with online assessment and certification at the end of the three-month period by the University of Johannesburg.

Rising travel, venue, trainer and study material costs were further drivers in SAPOA evaluating alternative e-learning methods and following new educational trends.

With e-learning technology, these costs are reduced and our members can cut costs without compromising the skills development of their workforce ECPP is focused on the commercial and industrial property industry. Our target market of delegates are people who have had two to three years

of work experience, or have a formal knowledge of the commercial or industrial property industry.

E-learning benefits for SAPOA members Rising travel, venue, trainer and study material costs were further drivers in SAPOA evaluating alternative e-learning methods and following new educational trends. With e-learning technology, these costs are reduced and our members can cut costs without compromising the skills development of their workforce.

With SAPOA member companies under continuous pressure from their clients to perform, financial constraints that companies are facing and lack of time to afford employees extended time off to attend training programmes, SAPOA’s e-learning programme will assist by using the internet to empower its members and non-members as: • Training content is available anywhere and at any time, and is optimised for computers, mobile phones and tablets; • Employees have three months to complete the programme and are not out of the office for three to five days at a time; • Educational training programme cost is reduced by almost 50%, making it more affordable for both our corporate members and individuals; and • Incidental costs such as travelling, accommodation and meals are eliminated.

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education, training and developmenteducation, training and development The e-learning platform and training format The SAPOA e-learning platform is based on Hypenica’s Mobile Training Solution, and uses mobile and web channels to manage and deliver training material.

The process works as follows: • Delegates will register with SAPOA who will invoice the delegates.

• Once payment has been received, Hypenica will send delegates a username, login details and password to access the e-learning programme. The delegates will have access and must complete the programme in three months (12 weeks).

• Once the delegates are registered, access to the chat room will be granted. This will enable the assessor and/or lecturer to communicate with the delegates and the delegates with each other. In the event of a student having difficulty in mastering any of the training content, this will be the method of having access to the assessor and/or lecturer to obtain clarity and chat room information to communicate with lecturers and other delegates.

• The ECPP e-learning format of training delivery is by means of 10 videobased training modules.

• Each delegate will receive an electronic student course manual that contains the training material on which the videos are also based.

• After each module there will be a test or assignment that must be successfully completed before moving on to the next module.

• Once the modules are completed, delegates will take part in an online examination.

Assessment, moderation and certification Modular assessments will be made as the programme progresses.

A final assessment will be in the form of a test but will be optional.

A certificate of competence for

delegates who successfully comply with all the assessment criteria or a certificate of attendance will be issued on successful completion of the training programme by the University of Johannesburg. The university will moderate in terms of its policies and procedures.

Accreditation The University of Johannesburg is a comprehensive accredited academic institution. As required by the Higher Education Act, it is registered with the Department of Education as a public higher education provider, and its qualifications are accredited by the Council on Higher Education and recognised by the South African Qualifications Authority.

In conclusion In summary, e-learning is the training method of the future and SAPOA will follow these trends. SAPOA is already in the process of developing and filming the videos for the Introduction to Commercial Property Programme and our popular Property Management Programme.

More programmes will follow to address the commercial property industry’s training needs. The possibility to run national workshops and seminars via webinar is also in the pipeline for SAPOA members.

The e-learning training is not bound to regions and borders, and offers SAPOA the opportunity to provide training to the rest of Africa.

A certificate of competence for delegates who successfully comply with all the assessment criteria or a certificate of attendance will be issued on successful completion of the training programme by the University of Johannesburg SOUTH AFRICAN PROPERTY REVIEW

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SAPOA educational programmes and workshops

SAPOA educational programmes for 2015 The SAPOA Education, Training and Development Department is planning the following educational programmes for 2015

Property Leadership and Management Programme

What’s new in education

The SAPOA educational programmes are designed to cater for the commercial property industry from entrylevel to executive programmes.

We currently have a Property Development Programme at senior management level and an International Property Leadership Programme at executive management level, and we wish to develop

We developed the following programmes to satisfy our members’ educational and skills requirements. They are: ●● Property Investment and Financial Programme ●● Property Financial Programme ●● Property Leadership and Management Programme

a programme at junior to middle management level on management and leadership with the Henley Business School.

We will keep our members updated on the progress made. Make sure you are registered with the SAPOA Membership Department to receive our educational mailers for the dates and times of these workshops.

Property Investment and Financial Programme

Various SAPOA educational programmes cover investment and finance as modules. We are looking at developing a programme focused on investment and finance for the commercial property industry in partnership with the Henley Business School. We will keep our members updated on the progress made.

Property Financial Programme (PFP) This PFP was presented for the first time in 2014. It consists of three levels and is targeted at administrators, supervisors and managers from financial and leasing departments in property management companies.

●● PFP (Basic) This is a basic financial programme aimed at people who have no formal experience or knowledge of financial concepts in the commercial property industry. The programme covers the introduction to the financial and accounting environment, working capital management,introduction to time value of money and customer identity (the various types of clients).

●● PFP (Intermediate) Property finance (and other financial aspects relating to commercial property) is a highly specialised field. We cover advanced time value of money, budgeting, capital budgeting and decision-making, lease analysis and utilities management in this programme.

●● PFP (Advanced) The advanced PFP training programme is the final level of the PFP series. It covers: ●● The lease negotiation process; ●● Principles of valuation i.t.o. the discounted cash flow model, the income capitalisation model and the direct capitalisation model to determine whether the value of a property is calculated correctly; and ●● Analysis of financial statements and dealing with risk.

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SAPOA educational programmes and workshops

SAPOA workshops planned for 2015 Valuation series of workshops Each of these is a full-day workshop, and will deal with: 1.1 Time value of money for property practitioners 1.2 Commercial property economics 1.3 Advanced income capitalisation valuations 1.4 Principles of discounted cash flow valuations 1.5 Principles of feasibility studies 1.6 Valuation of properties under construction 1.7 Highest and best use valuations

Sectional Title Workshop The HRD Department has received quite a number of requests for a sectional title workshop after we ran our lease agreement workshops.

We will host a full-day workshop on sectional titles.

The Property Lease Agreement Workshop This is a full-day workshop to be presented by a property lawyer. The following is an outline of the contents: ●● Essentials for a lease agreement ●● Rights and obligations of the lessor and lessee ●● Specific leases ●● Legislation affecting leases ●● Recent case law affecting leases

Property development series of workshops Each of these is a half-day workshop, and will deal with: 2.1 The fundamentals of property development 2.2 Town planning and the legal framework of developments 2.3 The development feasibility study 2.4 Raising finance for property developments 2.5 Delivering the property development 2.6 Handing over the development

Lease Negotiating Workshop The Lease Negotiating Workshops are run over two days, where negotiating skills, techniques and role plays will form part of the programme. A before and after assessment will be conducted as proof of the negotiating skills acquired.

The maximum delegates per workshop will be limited to 14.

The National Building Regulations Act: “The SANS 10400 Regulations” (One day workshop) SANS 10400 issued in terms of the National Building Regulations and Building Standards Act 103 of 1977 sets the requirements to ensure buildings will be maintained, designed and built in such a way that persons can live and work in a healthy and safe environment.

Since the application of the SANS 10400 Building Regulations came into effect almost three years ago, there has been much confusion as

to what they entail and what must be complied with.

The workshop will cover the philosophy and intent behind the Regulations, to enable attendees to interpret and understand the requirements of the National Building Regulations. Various sections of SANS 10400 will be covered to ensure that attendees are made aware of the basic requirements of developing and maintaining buildings to ensure the health and safety of persons.

SAPOA’s Education, Training and Development Department is planning several workshops for 2015.

We have identified two topics – valuation and property development – and will host a series of workshops per topic at monthly intervals.

Delegates may enrol for the full workshop series at a discounted fee; those who only wish to attend the workshop of their choice can do so at the normal SAPOA workshop fee

Occupational Health and Safety Act: Legal Liability (Half-day) In this workshop we will deal with occupational health and safety risks, who is the employer, duties and responsibilities of the employer, safety representatives, and their functions and investigations. The last part will deal with managing risk and the impact of the amended Construction Regulations that came into effect in August 2014.

The Financial Intelligence Centre Act (FICA) The Financial Intelligence Centre Act No 38 of 2001 (FICA) was signed into South African law 13 years ago. The Act covers “Anti-Money Laundering and Counter-Terrorism Financing Legislation”. Compliance FC officials have stated that the time has come to exercise zero tolerance. The warm-up window period has closed and the centre is now vigorously implementing the Act.

Green Building Council Workshops We will be partnering with the Green Building Council on some of its workshops. Make sure you are registered with the SAPOA Membership Department to receive our educational mailers for the dates and times of these workshops.

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legal update

Know your rights With business rescue in the hot seat, SAPOA provides an update regarding commercial leases and business rescue in terms of having obtained a legal opinion pertaining to the rights of a landlord in the event that a commercial tenant is placed in business rescue

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

APOA has obtained a legal opinion pertaining to the rights of a landlord in the event that a commercial tenant is placed in business rescue.

These rights are based on the inherent common law rights and obligations that are enhanced or replaced in one form or another by the terms of a lease agreement.

All leases must be drafted on the basis of reciprocal obligations. The right of the tenant to occupy premises and to receive services from the landlord must be unequivocally conditional on the payment of rent, utilities and services The recommendations flowing from the legal opinion indicate that landlords need to restructure their lease agreements to enable them to take measures to safeguard against the negative consequences of business rescue provisions contained in Chapter 6 of the Companies Act No. 71 of 2008 (“the Act”).

These recommendations are as follows:

1. Rights under a lease 1.1 The most important thing about a lease in the context of business rescue is that it is a bilateral contract.

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Each party’s obligation to make performance is undertaken in return for the other party’s performance. As such, this bilateral contract gives the landlord the defence known as the exceptio non adimpleti contractus.

This means the tenant is not entitled to demand performance by the landlord unless the tenant has performed its reciprocal obligations.

1.2 Accordingly, all leases must be drafted on the basis of reciprocal obligations. The right of the tenant to occupy premises and to receive services from the landlord must be unequivocally conditional on the payment of rent, utilities and services.

eviction and a claim for damages for the unexpired portion of the lease. Accordingly, every landlord must assess at the time that the tenant is placed under business rescue if it is in the landlord’s best interest to terminate the lease.

2.3 The wording contained in Section 134(1)(c) of the Act is probably wide enough to cover a landlord’s right to cancel, and to evict a non-paying tenant from the premises.

2.4 As soon as a tenant goes into business rescue and a practitioner is appointed, the landlord should pursue the right to terminate the lease if the practitioner will not pay rent.

2. Termination

3. Rescue plan

2.1 There is nothing in the Act and in law that prohibits a landlord from including a provision in the lease that it automatically terminates if the tenant places itself under voluntary business rescue proceedings by way of a company resolution.

When the resolution is passed by the board, the business rescue process has not yet begun and termination at the time is not prohibited by Chapter 6.

2.2 The commercial property industry is well aware that when a landlord terminates a lease it is a drastic step, and it has certain legal consequences as, on termination, the landlord is entitled to a claim for

3.1 There is no reasonable basis upon which a tenant may continue to occupy leased premises without paying rent.

3.2 As the obligations of the landlord and tenant are reciprocal, the business rescue plan cannot ignore the tenant’s obligation to pay rent while preserving the obligations of the landlord under the lease.

There is nothing under Section 150 of the Act that allows the tenant the right to remain in the leased premises without paying rent. If the tenant cannot afford the rent, the tenant must vacate the premises and find alternative premises which it can afford.

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legal update

3.3 However, this is not an absolute rule. Where the tenant is paying rent, which rent is above market value, and it would be difficult for the landlord to find a replacement tenant at the same or higher rent, the landlord would be wise to negotiate a lower rent provided that the tenant undertakes to pay the full rent while it continues to remain in the premises.

As the obligations of the landlord and tenant are reciprocal, the business rescue plan cannot ignore the tenant’s obligation to pay rent while preserving the obligations of the landlord under the lease. There is nothing under Section 150 of the Act that allows the tenant the right to remain in the leased premises without paying rent. If the tenant cannot afford the rent, the tenant must vacate the premises and find alternative premises which it can afford 4. Suretyships 4.1 Any suretyship obtained by the landlord from a surety in respect of an agreement of lease must provide that the suretyship can be enforced against the surety even if the tenant is placed under business rescue.

4.2 In the recent Supreme Court of Appeal (SCA) case of New Port Finance Company (Pty) Ltd vs Nedbank Ltd, the SCA held that if a judgment against sureties had been obtained prior to the adoption of a business rescue plan or if the suretyship contains clauses often found in suretyships that allow the creditor to pursue the sureties notwithstanding any compromise reached regarding the scope and extent of the principal debtor’s indebtedness, the sureties are not relieved from liability because of the adoption and implementation of a business rescue plan.

5. Deposit

5.1 With regards to the deposit, the best way to ensure that the landlord has the right to the deposit is to ensure that the deposit is the property of the landlord and that it has the right to set-off the deposit against any rent due at the time that the tenant goes into business rescue.

5.2 The lease must provide that set-off operates automatically against the deposit if the tenant goes into business rescue.

With set-off, the deposit will be the money of the landlord the moment that the tenant falls into arrears.

If the terms of the lease allow the landlord to do so, the landlord can then ask the tenant for a replacement of the deposit.

6. Acceleration clause It will be expedient for all landlords to insert an acceleration clause in the lease if the tenant breaches the lease or is placed under business rescue.

The acceleration clause causes the full value of the lease to become due and payable as soon as the tenant is in breach of the lease or is placed under business rescue.

7. Conclusion 7.1 Where the tenant is placed under business rescue, the landlord is not without rights.

7.2 The difficulty is the landlord may need to enforce these rights either by negotiating with the practitioner or through the courts.

7.3 If the tenant goes into business rescue, any unpaid rent must be demanded immediately from the practitioner. If the practitioner fails to pay the rent and the landlord is easily able to re-let the premises, the landlord must do its best to negotiate an early termination of the lease. If the landlord is unable to negotiate an early termination, the landlord must consider approaching the courts for relief.

7.4 What is stated in this letter does not adequately solve the existing problems for landlords in relation to the business rescue provisions of Chapter 6 of the Act. 7.5 In order to address this situation, we confirm that SAPOA has made written representation to Professor Michael Katz, the Chair of the Commission that has been appointed to investigate the business rescue provisions of Chapter 6. SAPOA has addressed the challenges and problems faced by landlords in relation to Chapter 6 and we eagerly await the Commission’s response to SAPOA’s representations and recommendations.

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

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legal update

Avoiding invasive hassle

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The new Alien and Invasive Species Regulations can have a profound effect on land owners and land sellers – thus one needs to take note of the Regulations and incorporate them into agreements where applicable

By Libo van Aswegen

O Libo van Aswegen, Director of the Conveyancing Department at Phatshoane Henney Attorneys

Invasive alien plants (IAPs) are considered a major threat to biodiversity, human livelihood and economic development.

IAPs cost South Africa tens of billions of rands annually in lost agricultural productivity and resources spent on management

n 1 August 2014, the Minister of Environmental Affairs published the Alien and Invasive Species Regulations that came into effect on 1 October 2014 in a bid to curb the negative effects of invasive alien plants.

These Regulations will also affect property sale transactions and may need to be incorporated into any sale agreement of your property.

Invasive alien plants (IAPs) are considered as a major threat to biodiversity, human livelihood and economic development.

IAPs cost South Africa tens of billions of rands annually in lost agricultural productivity and resources spent on management.

The Regulations call on land owners and sellers of land to assist the Department of Environmental Affairs in conserving our indigenous fauna and flora and to foster sustainable use of our land.

Non-adherence to the Regulations by a land owner or a seller of land can result in a criminal offence punishable by a fine of up to R5-million (R10-million in case of a second offence) and/or a period of imprisonment of up to 10 years.

Alien invasive species categorised The Regulations published identified a total of 559 alien species as invasive in four different categories, and a further 560 species listed as prohibited that may not be introduced into the country.

Category 1A and 1B listed invasive species must be controlled and eradicated.

Category 2 plants may only be grown if a permit is obtained and the property owner ensures that the invasive species do

18

not spread beyond his or her property. The growing of Category 3 species is subject to a variety exemptions and prohibitions.

It is interesting to note that some invasive plants are categorised differently in different provinces. For example, the Spanish Broom plant is categorised as a Category 1B (harmful) invasive plant in the Eastern Cape and the Western Cape but it is a Category 3 (less harmful) invasive plant in the other seven provinces.

Other invasive plants are categorised differently depending on whether they appear in urban or rural areas.

Jacarandas serve as example: the species is classified as a Category 1B invasive species in rural areas within KwaZuluNatal as well as in three other provinces, but in the urban areas of these provinces it is exempted from the regulations. Jacarandas situated in the urban areas of Pretoria are thus safe for now. nal.indd

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1

The Regulations Depending on the identified IAP and its classification in terms of the Regulations a land owner must allow an authorised official from the Department of Environmental Affairs to enter onto the land to monitor, assist or implement the combating, control or eradication of the species in accordance with the Regulations.

In terms of Regulation 29, if a permit holder sells property on which a listed IAP is under the permit holder’s control, the new owner of such property must apply for a permit in terms of the Act. The seller of any immovable property must also, prior to the conclusion of the relevant sale

agreement, notify the purchaser of that property in writing of the presence of listed IAPs on the property.

In practice, an estate agent can add value by guiding a seller to adhere to the letter of Regulation 29. An estate agent should ask the sellers to declare in writing whether they are aware of any IAPs on their property or if they hold permits for species that require permits to be held on the property.

If an enquiry of an estate agent establishes that IAPs are to be found on the land for sale or that the seller holds a permit, then a copy of this confirmation must be given to a prospective purchaser and the purchaser’s offer should include an acknowledgement by the purchaser that he has been advised of the invasive species on the property.

Property sales agreements dated from 1 October 2014 onwards should also incorporate a clause in terms of which the purchaser acknowledges that he has acquainted himself with the extent and the nature of the property he is buying and that he accepts the property as such, including the vegetation on the property.

The declaration by the seller resulting from an inquiry of an estate agent, and the subsequent incorporation of the facts on the ground pertaining to the fauna and flora into the deed of sale, could well assist in adhering to Regulation 29 and so avoid the heavy punishments imposed by the Regulations. So if you are buying or selling property that could contain IAPs, consult with your attorney as to what steps you should take to ensure that you comply with the Regulations.

rda Valley, West, Wie rda Road 6 Park, 36 Wie End Office 78544, Sandton 214 0684 w, Hunt’s PO Box (0)11 883 Paddock Vie 9 f: +27 1 883 067 a.org.za t: +27 (0)1 www.sapo

Sandton

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2015/02/03 1:40 PM

Exce

The

legal update

coffee table book...

E

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

IN NCE

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The SAPOA Awards for Innovative Xcellence in Property Development is widely respected within the commercial property design industry and illustrates a combination of excellence from the clarity of purpose in the brief, ingenuity of product, clever design solutions and delivery on time and within budget.

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To be part of this amazing opportunity, partner with us by profiling your executives and/or team in our SAPOA Innovative Xcellence Awards Coffee Table Book Volume 2, 2015.

Your double-page advert will form part of the 2015 profiles submission for the excellence awards.

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CORPORATE OFFICE

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o. 1 and 2 Silo are the first comple ted phase in the Silo Precinct of the V&A Waterfr ont, which will soon see the redevelopmen t of the historical Grain Silo.

No. 1 Silo is an 18 500m² develo pment overlooking Square and the Silo Atlantic Ocean.

The building was and built to be the designed new headquarters of blue-chip tenant Gray, who was Allan looking to consoli date its offices V&A into a single within the development that would reflect its values and encour company age greater commu nication betwee staff members. n its The building has been awarded the region’s first 6-star Green Star rating for Design from the GBCSA, and As Built rating is an being sought. Incorpo rating innovative design solutions green with proven techno logy, No. 1 Silo with the environ works ment rather than against it.

Key sustainability features include the high-performan ce,

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Silo Square, South

Arm Road, V&A

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Town

fully glazed, double -skin glass façade that maximises and ensures optima views l use of natural light, displacement ventilation and the use of a sea-wa ter cooling system This system makes . use of water from the ocean to reject waste heat from the cooling plant, which allows for potable water savings significant and improves the overall efficiency the building. Further of sustainable feature s include a private roof garden, low-fl ow water fittings and electric-car points in the basem charging ent.

InternatIonal

tre

The Oberoi Cen

13

RALL WINN OVE ER SAPOA awards

Business

United Arab Bay, Burj area, Dubai,

Emirates

the commercial e of Business Bay, ocated at the entranc porary environment reflect a contem tallest and hotel towers d as the world’s same neighbourhoo . that cohabits the ding developments Khalifa, and surroun ies the modern building, the Burj embod hotel r ss five-sta of the The luxury busine precincts. It is one urban its and Dubai face of the new grade by the Dubai be awarded an “A” to Dubai 27in first hotels of opening. The the first six months 33-storey Municipality within sed against the hotel is juxtapo n podium. storey/252-key four-level commo tower, linked by a commercial office

L

INTERNATIONAL

for excellenc e 2014

Developer V&A Waterfro nt Architects Rick Brown Architects, VDMMA Civil and structur Project managers al engineers Sutherla and principal agents nd Engineers (Pty) Space, Collaberation, Mace Quantity surveyo Ltd Mechanical enginee Disability Solutions, rs MLC rs ARUP Other consulta Eco-Safety Systems, Nicholas Baumann nts Arcus Gibb Engineer Matrix Consultant Services, Heritage Managem s, City Think Neil Schwartz Town ent, Arcus Gibb Engineer Planning, Planning engineers Solution s, Ecosense Environm Partners, SRL, Station Green/sustaina ental Practitioners ble consultants ARUP Principal contrac tors WBHO Electrica l

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Mott MacDonald PDNA: African inspiration, global strength op

84

T

Engineering News Record, global engine 2014 Mott MacDo ering and manag nald, and leading ement consultancy BEE engineering (PDNA), have combin for practice PD Naidoo ed operations in & Associates southern Africa to and management create a new infrastr consultancy for ucture engineering the sub-Saharan business combin region. The Mott es our complementar MacDonald PDNA y skills, experie practice into a single-s nce, leading-edge abilities ource, end to end and best service capable projects that will of delivering comple drive Africa’s social x next-generation and economic succes across South Africa, s. With 800 people Botswana, Mozam in 15 centres bique, Uganda and back to nearly 15 Mauritius – and with 000 colleagues immediate reacharound the Mott ability to provide MacDonald world the diversity and – we have an unrival cutting-edge thinking is geared to provide led needed to deliver. advisory, design Our business model and management clients in this region services to public on some of the world’s and private sector most challenging Forming Mott MacDo infrastructure project nald PDNA in Southe s. health team in HDA rn Africa, and combin and our team of ing with our special specialists in the our long-term commi ist power sector Merz tment to investin ELO and McLella PM g in local knowle n, signals EN skills expansion and owners dge, leadership, T hip. This model forms staff development, in Africa and around the basis for all Mott the globe.

MacDonald busine sses

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e 2014 2014 awards for excellenc for excellen ce SAPOA SAPOA awards

ABOVE: THE AFRIC A PROPERTY TEAM, FROM (Standing) Hans LEFT Koorn, Peter Sawkin s, Jackie Naidoo (Sitting) Mahom , Neresh Pather ed Soobader, Ali , Sean Murphy Naidu, Dempsey Naidoo

pg82-84.indd

84

How we’re diffe

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Our advisory, strateg ic and planning specialists think – helping your busine ahead in decade ss stay ahead of s, not years the curve.

Our engineers and technical experts rs understand durabil resilience in our Quantity surveyo ity, sustainability, designs. rs Confluence (CPM) flexibility and onal Project manage Principal Our dedicated project Architects Internati Yolles, Shankland Cox and programme Co Architects DSA engineers Halcrow deliverers are experie onal Development d Cox Mechanical the most deman Developer Rani Internati nced in successfully nts Halcrow Yolles ding, nationally strateg rs Halcrow Yolles, Shanklan bringing ankland Cox Fire consulta ic projects to life. and structural enginee Our employee owners Yolles/Sh Civil Halcrow Brown rs & Currie l enginee hip model sharpe h Contracting LLC Electrica ns our “can-do” We are truly global approach contractors Al Nabooda and truly local – so you get the best of both worlds.

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2014/05/23

Deadline 16 February 2015 Bookings Jane Padayachee, Marketing Manager, SAPOA T: +27 (011) 883 0679, E: marketingmanager@sapoa.org.za

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Mott MacDonald PDNA House, 25 Scott Street, Waverle y 2090 T: +27 (0)11 566 8429 T: +27 (0)11 566 8300 (switchboard) M: +27 (0)83 293 7088 E: mahomed.soobader@m ottmac.com

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rd As an integrated hub of technological excellence such expertise and skills as BIM, Mott MacDo ensure a wide nald PDNA’s range of pertine environment. Mott nt and efficient MacDonald has solutions for the delivered leading 85 built and leisure project commercial, educat pg82-84.indd s worldwide. We PM ional, /23 4:18 health, design distinctive, 2014/05 retail corporate and civic imaginative building pride – building s that invite s that reflect our present a depth drive for quality and calibre of technic and innova al expertise that tion. We We strive to develo ranks among the p elegant solution best in the industr s that enhance user comfort and y. quality and meet safety, while keepin the standards of g a sharp focus and sustainability. on economy, buildab ility, functionality Our experience across the various building sectors multidisciplinary has helped us teams who are to develop strong, continually striving quality consistently for excellence. Our Some of our distinct throughout our aim ive, award-winning is to deliver high wide spectrum multinationals, develo , imaginative THIS PAGE, CLOCK of projects for property project pers, architects, WISE FROM ABOVE all our customers s, locally and contractors, local globally: private individuals PDNA House, – the UK; Fairwa authorities, inward Johannesburg alike. Our long affi ys Hotel & Spa, ; Newcastle Library investors and liations with SAPOA Johannesburg platform to demon , Exchange, Singap ; Masdar Institut and MIPIM have strate and showca e, Abu Dhabi, ore OPPOSITE, provided us with se our property the UAE; Vista CLOCKWISE FROM the Affairs & Tourism and commercial TOP Department capabilities. , Pretoria; Lakesid of Environmental e 3, Centurion; Marrio tt Hotel,

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2015/02/03 2:29 1:40 PM 2014/11/10

theme leader

Sustainable landscapes Finding a new architectural identity by rethinking urban environments

By Michelle Marais

Anton Roodt of Roodt Architects in Bloemfontein

ABOVE Architect Anton Roodt’s Huis Roodt – his favourite local structure OPPOSITE The Sheds @1Fox is a vibrant artisanal marketplace that symbolises inner-city regeneration at its best

Did you know?

Thirty years ago, Anton Roodt investigated alternative sources of energy in his undergraduate thesis, and sustainability has remained a personal and deep interest.

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A

rchitecturally, South Africa is young, particularly when compared with the monuments of western Europe, South America and north Africa. But the country’s architecture is a testament to the many influences on its unique history.

During apartheid, South African architects continued to follow international trends, and architecture was employed in service of ideology. With the advent of democracy in 1994, and the reconstitution of the country psychologically, a new cultural identity influenced similar architectural developments.

Much was built to normalise a fractured past, often symbolically, and particularly through re-imagining previous offensive associations

with the places and edifices of power, protest and despair. The gentrification of various urban areas such as Cape Town’s Woodstock and the Maboneng precinct in Johannesburg bears testament to this.

Since 2006, several publications have tried to chart the state of South African architecture.

Architect Ora Joubert, the convener and editor of 10+ Years 100+ Buildings: Architecture In A Democratic South Africa, illustrates how South Africa’s architecture had developed and evolved with a concentrated bouquet of some of the best work executed during this period in the country.

However, still an infant in its democracy, the country faces many challenges as weak relationships between architects, developers and government, and a lack of skills in the building environment, are giving way to structures without identity and are unable to address local sustainability issues.

The state of affairs “There was a period in the past where (socalled) iconic buildings were constructed – I rank this as the most despairing period in local architecture”, says Jo Noero, architect at Noero Architects in Cape Town. “I refer here to places such as Sandton. The government, who is the biggest client in the country, has mismanaged the commissioning of new

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theme leader

buildings for the public sector. There are many reasons for this but the most evident is that they’ve sidelined the competition system that has been proven to produce the best design results. I hope that this will change in the foreseeable future.”

Anton Roodt of Roodt Architects in Bloemfontein agrees. “On a recent visit to Sandton City, I counted 17 construction cranes in the immediate vicinity,” he says. “Commercial spaces are going up so rapidly – sadly, most of them in some banal international flavour-ofthe-month style, often with rather grotesque results. Cape Town is a bit more fortunate.

Newer buildings tend to be more restrained.

Houses on the Atlantic Seaboard are mostly resolutely modern.”

In contrast to the construction of the mundane, many exiting projects are taking shape as entrepreneurs notice the potential that urban regeneration of former industrial areas holds.

“Architects in the large metropolitan areas are quite busy, it seems,” says Roodt. “Large urban design interventions are contemplated, especially in the inner-city areas where the government, local authorities and private entrepreneurs are trying to regenerate and renew city blocks that have been abandoned during the political years of transition from apartheid to something else.”

Examples of these urban design interventions include Cape Town’s The Fringe, previously known as the East City Design Initiative, a central city project funded and supported by the Western Cape government’s Department of Economic Development and Tourism through its Cape Catalyst Initiative.

Its vision is to create the premier African environment for design, media and ICT innovation, creativity and entrepreneurship; this is set to be achieved through the development of a spatial framework that recognises the intangible characteristics of the areas and seeks to establish a robust yet flexible guide for the future development of the precinct.

Maboneng, a privately developed urban neighbourhood on the east side of the Johannesburg CBD, is a similar design intervention. This once-run-down precinct has been developed into a fully fledged, thriving community, and is home to several independent retail, dining and entertainment venues as well as loft apartments, offices, hotel, a museum and creative factory spaces in a connected urban environment.

Jo Noero of Noero Architects

Right on trend

Did you know?

The move towards sustainability is more than a design trend, and the construction industry, depleting natural resources at a staggering rate, is recognising its environmental responsibility.

In 2010, Jo Noero was awarded the Gold Medal for Architecture by the Institute of South African Architects.

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theme leader

Did you know?

Renato Graca lists Rochard Rogers’s design of the Madrid airport as his favourite example of interior-driven architecture.

“There is little doubt that South African architects are as talented as their counterparts elsewhere. Architects play a vital role when it comes to creatively re-thinking the city and its development. For South African architects, these are exciting times” Anton Roodt, Roodt Architects

22

Renato Graca, architect and interior designer at Cape Town’s Gsquared

This is evident not only in architects’ designs but those of interior and industrial designers too.

“The building industry is known for high levels of energy consumption during both construction and the life cycle of a structure,” says Roodt. “Sustainability is, however, closely linked to immediate affordability. We need to convince our government to demand better levels of energy usage in housing. I foresee that this trend in design – to more directly and scientifically integrate environmental concerns into the design of buildings – will be increasing as existing resources become more expensive and scarce.”

Renato Graca, architect and interior designer at Cape Town’s Gsquared, explains that green design is the cornerstone of his work and that sustainable architecture can take on many forms of green. “The firm’s designs embrace South Africa’s weather by inviting the outdoors in,” he says. “There is a strong emphasis on honesty when it comes to material use and we’re embracing it by choosing to use natural materials such as timber and leather; even recycled materials. This goes hand in hand with the global consciousness of sustainability.”

David Green, Chief Executive Officer of Cape Town’s V&A Waterfront, says that he is very aware that South Africa’s resources are slowly depleting, and was proud to share the V&A’s approach to going green during a recent presentation.

“Since 2009, the V&A has reduced its energy usage by 26%,” he said, explaining that this was achieved by implementing sustainable architectural design and by continually encouraging businesses to be eco-conscious. He concluded his presentation by emphasising that the V&A Waterfront believes in and will always support sensible, sustainable development.

Noero shares Green’s sentiments.

“I welcome the development of architecture that demonstrates a strong regional bias and reflects the unique climatic, environmental and cultural conditions in the making thereof,” he says. “I support a form of situated modernism

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in which each project is tackled in terms of its own requirements and constraints. In this way we are able to build a strong and authentic architectural culture in South Africa, which will serve its cultural, social and environmental needs.”

Looking towards the future Successful sustainable design comes with a new set of challenges, Roodt explains. “The integration of energy-saving hardware into the design of buildings is a challenge,” he says.

“The provision of solar heating in township areas, for instance, has certainly made a huge difference to the quality of life in these areas – but, visually, the mounting of solar geysers on pitched roofs does little to enhance the visual quality of these areas.

The introduction of commercial and other facilities in township areas and the general upgrading of these areas are also trends that will continue for at least the next decade. Business, shopping opportunities and institutional facilities are now being taken to the consumer and residents.

“Visually, design in general will continue to take its clues from technology, rather than from historical styles. Buildings are becoming more and more complex in terms of infrastructure – for example, these socalled smart buildings.

“In existing developed areas, recycling and remodelling of buildings to create new buildings types, or adaptive re-use, will also become more and more evident.

Architects will seek commissions from the revitalisation of inner-city areas, and the building of large regional shopping centres will probably taper off completely. Existing centres, however, will be upgraded and probably adapted to offer a wider range of facilities and services, and there will be a formalising of niche-type shopping experiences as encountered at art festivals, and market fares such as the Biscuit Mill in Cape Town and The Sheds@1Fox in Johannesburg.”

“I’m convinced that a more careful and thoughtful architecture – taking into account the users of the space, the purposes for which it was intended and the environmental energy costs – will emerge in response to pressing issues”, Noero says. “We need to synthesise and bring together all the issues that relate to energy and sustainability but also to understand that our buildings need to have cultural and social value.”

Taking the challenges into consideration, creatives from all fields of design are realising that we constantly need to reinvent our approach in order to compete with the rest of the world.

“There is little doubt that South African architects are as talented as their counterparts elsewhere. Peter Rich and Noero Wolff have demonstrated this by receiving top honours for their work internationally”, Roodt says. “In my experience architects play a vital role when it comes to creatively re-thinking the city and its development. For South African architects, these are exciting times.”

David Green, Chief Executive Officer of Cape Town’s V&A Waterfront BELOW During peak season, up to 100 000 people visit Cape Town’s V&A Waterfront every day

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2015/02/06 10:36 AM

es: i r e a s hly ry c i r Af ont ount e Th our m by-c try focus n cou

Africa uncovered:

Rwanda Troubled by ethnic tension and haunted by harrowing genocide, Rwanda’s sights are set on restructuring itself

By Candace King

Rwanda at a glance ▼ Population 11,78-million (2013) ▼ Major city Kigali (1,3-million) ▼ Currency Rwandan franc (RWF) ▼ Total area 26 338km² ▼ GDP growth 7,4% (2015 est.) ▼ Key industries Agriculture, tourism, cement, textiles, plastic goods

W

hen South Africa was celebrating the inception of democracy in April 1994, Rwanda suffered a horrific 100-day state-sponsored genocide that resulted in the death of nearly a million people.

The massacre was between the Tutsi minority and the Hutu majority – an ethnic battle that had been waging for several years and still continues to impact the country negatively. By July 1994, the genocide had been curbed.

The event crippled Rwanda’s fragile economic base, impoverished the population and temporarily hampered the attraction of private and external investment. Since 1994, Rwanda has strived to rebuild its economy and improve the lives of its people.

A small, landlocked country in eastcentral Africa, Rwanda is trying to rework its tarnished image and has so far been able to

24

achieve commendable economic growth.

Between 2001 and 2012, growth averaged between seven and eight percent a year, driven by expanding tourism and coffee and tea exports. (Coffee and tea production as well as minerals are among the country’s core sources of foreign exchange.) Inflation has also been reduced to single digits.

However, in 2013, real GDP growth slowed to 4,6% because of low agriculture performance and the aid-related delays in implementation of strategic public investment that followed the suspension of budget support disbursements in 2012.

In terms of foreign aid, Rwanda has been branded a “donor darling”: foreign aid accounted for 20% of the country’s gross national income in 2011, with Rwandans receiving US$113 a head. Rwanda received IMF-World Bank Heavily Indebted Poor Country initiative debt relief in 2005-2006.

Positively, growth is expected to increase to 7,4% in 2015 as a result of recovery in services, improvement in agriculture productivity and sustained implementation of the public investment programme.

The services sector in Rwanda has grown tremendously in recent months. In the third quarter of 2014, services surpassed the other sectors of the Rwandan economy with a 10% increase. The services sector contributed 47% of GDP, followed by the agriculture sector,

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eye on Africa

OPENING IMAGE The office landscape in Kigali, Rwanda © Ahmcpherson | Dreamstime.com

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eye on Africa becoming urban. In 2012, almost 20% of the population lived in urban areas, compared with eight percent in 1995 and five percent in 1980. Kigali is home to 1,3-million people; this figure is set to swell to 3,8-million by 2040.

In light of the country’s urbanisation and the improvement of lives, the Rwandan government is currently working on improving education, infrastructure, and foreign and domestic investment. The government is also seeking to transform into a regional leader in information and communication technology.

Population in thousands

284-324 324-343 343-540

Acknowledgement to Val de Vie Magazine for the photo

The Rwandan property industry

which contributed 34% of GDP. The industry sector contributed 14%, and five percent was attributed to adjustment for taxes less subsidies on products.

Tourism is booming. According to World Bank figures, close to 620 000 tourists visited Rwanda in 2010. Agriculture also plays a big role in the economy: about 90% of the population is involved in agriculture and mineral and agro-processing.

Rwanda is only one of three countries in the world where the critically endangered mountain gorillas live. It’s estimated that there are only 780 mountain gorillas still in existence; one-third of these are in Rwanda.

Like most African countries, Rwanda is plagued by poverty, with close to two-thirds of the population living below the poverty line. While poverty has declined, an estimated 63% of Rwandans still live on less than the equivalent of US$1,25 a day, and 82% on less than US$2. While the country boasts a fertile ecosystem, food production often battles to keep up with demand, requiring food imports.

Efforts have been made to improve political rights, civil liberties and human development.

The infant mortality Millennium Development Goal has been achieved, and Rwanda is set

26

to meet the targets for universal primary education, gender equality and under-five mortality. Poverty and income inequality have also declined.

While a small and mostly rural country, Rwanda has experienced major population density over the years and is increasingly

Having improved its economy over the years, Rwanda’s attention is now focused on boosting private-sector growth, which is hampered by several issues. These include energy shortages, limited generation capacity, instability in neighbouring states and the lack of adequate transportation linkages to other countries.

Rwanda faces development challenges and, because of this, the government has introduced various reforms to improve the business environment and reduce the cost of doing business. As a result, Rwanda was named top performer in the Doing Business 2014 report, was among the 10 most-improved economies in 2013, and is now ranked the second-easiest place to do business in sub-Saharan Africa.

Infrastructure and development are on the Rwandan agenda. In 2010, Rwanda launched the first modern Special Economic Zone (SEZ) in Kigali, which aims to attract investment in all sectors, especially agribusiness, information and communications technology, trade and logistics, mining and construction.

Situated close to the Kigali International Airport, the Kigali SEZ has received great

Macroeconomic indicators 2012

2013(e)

2014(p)

2015(p)

Real GDP growth

7,3

Real GDP per capita growth

5,2

4,6

7

7,4

3,3

4,7

4,8

CPI inflation

6,2

4,2

4,4

4,9

Budget balance % GDP

-1,2

-5,1

-4,8

-4,3

Current account balance % GDP

-11,4

-10,2

-10,7

-10,1

Source: Data from domestic authorities; estimates (e) and projections (p) based on authors' calculations

Kigali prime rents and yields Prime rents

Prime yields

Offices

US$18/m2 per month

11%

Retail

US$22/m² per month

11%

Industrial

US$3/m² per month

14%

Residential

US$2 800 per month*

7%

Source: Knight Frank LLP * Four-bedroom executive house – prime location

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eye on Africa

demand as investors seek serviced land.

Phase one comprises 98 hectares, while phase two boasts 178 hectares. Phase three is expected to be about 134 hectares.

The Kigali SEZ is a merger of two projects: Kigali Free Trade Zone and Kigali Industrial Park. Other SEZ initiatives, including provincial industrial parks and flower parks, are being developed. The affordable housing sector is also experiencing development: a thousand affordable houses from three different housing projects around Kigali are set to become available in 2015. Fidel Ndayisaba, the Mayor of Kigali, recently announced the developments, urging investors to get involved.

The land earmarked for the developments includes a 29-hectare plot in Kibenga and 195 hectares in Cyaruzinge (both in Ndera Sector, Gasabo District), and 58 hectares of land in Nyamirambo Sector, Nyarugenge District.

Other plots available for property developers include a 94-hectare piece of land in Gahanga Sector, Kicukiro District and a 26-hectare plot in the city centre.

Ndayisaba noted that the number of affordable houses in 2015 should double by 2017. “This development will help us solve the problem of lack of affordable houses,” he said.

“Some of the new houses will act as model apartments for investors who’d wish to invest in the housing sector in Rwanda in future.”

Retail and commercial development is also taking shape, especially in the capital. Major retail chains are establishing in Kigali, as are various commercial banks.

In terms of leisure and hospitality, Rwanda is striving to become a conference hub. This was boosted by the entry of two global hotel brands in 2014: Rezidor and Marriott. The demand for hotel space has risen over the last few years as the number of tourists and expatriates increases, and as businesses seek regional expansion.

Rwanda will now need to enhance the still largely informal private sector, which can play a bigger role in ensuring economic growth.

Retail market Because of Rwanda’s successful economic turnaround, it is regarded as one of the strongest economic markets in the East African region. It has therefore attracted regional businesses to the country – particularly to Kigali – and is seen as a potential gateway of the thriving east African community market into the untapped central African market.

This has spurred on by the rise of sophisticated shoppers in Kigali, who are influencing the demand for higher-end retail space. According to the Knight Frank Africa 2013 Report, new retail developments are often pre-let, with full occupancy levels reported for the available units. Rents for high-quality retail space in and around the CBD are in the range of US$20 to US$25/m² per month.

Industrial and office market The country’s industrial sector is still in its infancy, and is located mostly in Kigali. It remains largely owner-occupied. According to the Knight Frank Africa 2013 Report, it is estimated that approximately 60% to 70% of all manufactured products are imported from Kenya and Uganda.

However, as part of the Kigali Master Plan, the government has proposed to relocate industrial developments at its own cost from Gikondo to a SEZ in Nyarugenge sector, near Masaka. This is expected to stimulate the growth of the industrial market in Kigali.

In terms of the Rwandan office market, the increase of foreign direct investment in the country has led to greater occupier demand for A-grade office space with fully equipped facilities and utilities. This has resulted in high occupancy levels for office space in Kigali.

According to the same Knight Frank Africa 2013 Report, rental terms remain ad-hoc, with monthly rents being in the region of US$18/ m² per month in top-end new offices, and

ABOVE Dancers of the Batwa tribe perform the traditional intore dance to celebrate the birth of an endangered mountain gorilla in Musanze, Rwanda © Wlablack | Dreamstime.com OPPOSITE An endangered mountain gorilla

between US$12 and US$15/m² per month for the majority of the other buildings.

With the adoption of the Kigali Master Plan, there has been a construction boom that is set to increase the supply of office space in time to come.

Residential market Rwanda’s residential sector is quite fragmented, which the government aims to change by releasing several substantial parcels of land for investment. The residential market is mainly dominated by private developers, with the majority of planned projects undertaken by private companies.

A major problem is finance: the difficulty of financing large projects and the affordability of the finished products remain the biggest constraints in the market. Standalone units are preferred to apartments and gated communities with shared facilities, mainly because of cultural beliefs, ownership complexities, and undeveloped legal and management systems for apartments and gated developments with shared facilities.

Ownership of residential property is also a concern: about 60% of city dwellers are renting. Supply is yet another issue – based on the current Kigali housing market, it’s estimated that, by 2022, the city will need at least 344 068 dwelling units.

Other challenges include the high cost of houses versus the low monthly income of citizens; high borrowing costs for property developers; low levels of infrastructure development within the city suburbs; the cost of land and building materials, as well as banks charging high interest rates to property developers.

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anecdotes from Africa

Having an African antenna We chat to Henning Rasmuss, Director of International Projects: Africa and Brazil at Paragon Group, about having an energised experience when operating in Africa

By Candace King

Q Is Africa still seen as something separate from South Africa?

It is quite common, which I think is bizarre.

South Africans often speak of Africa as a foreign continent, a place where we do international work. South Africa needs to be seen as an African client – we are not exclusive. When you leave South Africa, you need to have an understanding and a perception of each African country.

South Africa is seen as both a model and an anti-model. Some clients think South Africa Q Is South Africa still regarded is fantastic while others as the gateway to Africa?

South Africa is seen as both a model and an see it as the opposite anti-model. Some clients think South Africa is fantastic while others see it as the opposite.

We have crime issues partly because of how our cities are designed.

Q How is Africa doing

in terms of development?

West Africa seems more of an enabling environment at present. They know what they don’t know, and they know what South Africa can offer them. East Africa, on the other hand,

28

Henning Rasmuss, Director of International Projects: Africa and Brazil at Paragon Group

is more suspicious about South Africa. East Africa is sceptical about South Africa’s ways so you need to validate your position when operating in east Africa. Countries are seeing that South Africa has its flaws. None of this work is easy – but neither is work in South Africa.

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anecdotes from Africa

you get a true and basic perspective of the place. You get a feeling of the trajectory, and you acquire funny stories instead of pie charts and statistics.

Q Where in Africa have you

had the strangest experiences?

The business world is competitive but in South Africa we don’t properly understand how competition can be detrimental. In Africa you realise that family and tribal business culture is very strong – tribal/ethnic allegiances and conflict are rife. In east Africa, for example, if you put incompatible tribes together, you won’t get a project off the ground. Transparency can be a problem in Africa.

The most bizarre conversations have taken place in post-conflict countries such as Angola, Rwanda and the Democratic Republic of the Congo. I don’t think we understand the true reality of civil war and what it does to people. One particular experience was when a client 10 years ago wanted to develop a massive apartment block. We highlighted that the project would need an engineer for its foundations. The client asked why. They don’t know what is needed when developing the ingredients. The project never went ahead. Another bizarre experience was when a client asked us to source 35 000 baobab trees for his concession of 10 game parks.

Q What can we learn

Q Have you made any

There are factors in Africa that we tend to ignore. At Paragon, we have learnt at a high cost sometimes, so what we try to do as a company is operate out of our comfort zone.

We try to find consultants on the other side; we don’t bring our own comfort zone with us.

This doesn’t apply to all projects but, over time, we need to take chances with strangers instead of relying on our own people.

Yes, I’ve made really good friends, including a Rastafarian taxi driver in Nigeria. I have come to know his family, and I send him text messages over Christmas.

Mbilinga Mall, a mixed-use project in Libreville, Gabon by the Paragon Group

Q Is there healthy

competition in Africa?

from working in Africa?

Q What advice can you

give others when in Africa?

Leave your hotel room and go out to explore the cities. Feel them; eat the local food. You can’t just fly in and out. Get information on the ground and speak to the people, including the taxi drivers, porters, waiters, and so on.

You get more of a feel for a country when you talk to normal people. You get to understand what actually happens in these countries –

friends along the African way?

Q What have you learnt from Africa?

Africa has been interesting. The experience makes you go back to first principles. It’s liberating to explain what work you do all the time. It makes you sharp, and you become a good communicator. You learn not to jump to conclusions about what your clients know. You get to smell your client’s level of knowledge. Every single person you meet who owns land believes their land is amazing, even when the land is bad – it’s all about being “land-rich and cash-poor” in Africa. You need an incredible amount of life force to get through each day.

You need to be super-energised.

African advice • • • • • • • •

Don’t forget to factor in “time tax”.

Be prepared for the high cost of trust.

Walk the streets.

Talk to everyone.

Trust your judgment.

Do your homework and have patience.

Have a sense of adventure.

Your CV in Africa consists of three words: “Make it happen”.

African project drivers • Decongestion of city centres and new town centres • Upmarket housing for diaspora returnees • Land contestation leading to land reclamation in rivers/harbours • North-south corridors and east-west corridors • Retail due to growing consumption • Hotel projects due to oil industry services and a growing number of companies • Relatively high investment returns in global terms Reasons for wanting to work in Africa • Growing African middle class and returnees from diaspora as a result of global recession • “The third scramble for Africa” after the 1880s (colonialism) and the 1960s (liberation) is now (late capitalism) • South Africa is often seen to be a continental model for professional property development • Global uncertainty and the perception of “no more safe havens” has lowered risk perception • Good learning potential • Dollar-based income • Chinese infrastructure support SOUTH AFRICAN PROPERTY REVIEW

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Key facts ▼ Population 100 617 630 (July 2014 est.) ▼ Major cities Manila,Quezon, Davao, Caloocan, Cebu, Antipolo, Zamboanga, Pasig ▼ Currency Peso (PHP) ▼ Total area 300 000km2 ▼ GDP growth 5,3% (Q3 2014) ▼ Key industries electronics assembly, business process outsourcing, garments, footwear, pharmaceuticals, chemicals, wood products, food processing, petroleum refining, fishing

The Philippines

The return of southeast Asia’s underdog Defined by its emerald rice fields and teeming mega-cities, the Philippines has been recognised by economists as one of the world’s top emerging economies, acquiring a reputation as a super-hub for foreign investment

By Michelle Marais

Did you know?

Manila, the capital city of the country, takes its name from a white flower that grew on mangrove trees, locally known as nilad. “May nilad” can be translated to mean “there are nilad there”.

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L

ocated in the Western Pacific, the Philippines consists of more than 7 000 tropical islands.

Manila is the country’s capital and the cluster of islands’ second-largest city. Its unique location in southeast Asia resulted in the country becoming a cultural crossroads – a place where Malays, Hindus, Arabs, Chinese, Spaniards, Americans and others had interacted to forge a unique cultural and racial blend.

After decades of Spanish (and a short bout of US) rule, the country gained independence in 1946. Since its transition from authoritarian rule in 1986, the Philippines’ economy has shown much promise, and was one of the region’s best-performing in the 1990s. At the turn of the 21st century, the economy slowed down but has recovered steadily since 2004.

Today, it ranks as one of the most promising newly-industrialised countries, with its export economy moving away from agriculture towards electronics, petroleum and other goods. Its newly acquired reputation as one

of the world’s top emerging countries has seen many foreign venture capitalists invest in the Philippines’ marooned slick sands and sprawling mega-islands.

The power of the peso After years of nonexistent development, the Philippines is showing a tremendous economic turnaround. Following World War II, the country was left behind while much of east Asia zoomed ahead, forcing millions of Filipinos to migrate to other parts of the world in search of employment. But this has changed. Economists are noticing a vast increase in the number of younger people who take to the labour market with vigour and subsequently increase productivity across many sectors.

According to market intelligence firm Euromonitor International, emerging and developing countries are home to 89,8% of the global population under the age of 30;

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up from 85,3% in 1980. The young populations are not only contributing more to the economy through work but are also spending more on consumer goods, and are more enthusiastic to spend time and money on technology.

Foreign investors are noticing the country’s potential and putting their pesos where their mouths are. The figures speak for themselves: since 2010, when Benigno Aquino was elected for a non-renewable six-year term as president, money flowing into the country has tripled. Between 2008 and 2012, gross domestic product (GDP) grew by an average of 4,7%, rising to 7,2% in 2013 – higher than any east Asian country except China.

According to the 2013 World Bank statistics, the economy of the Philippines was the 39th-largest in the world (despite being hit by the powerful Typhoon Haiyan in early November of that year). In 2014, the World Bank forecast a growth of nearly seven percent for 2015.

Raising the mood further was the increase of the country’s long-term credit rating to BBB by US rating agency Standard & Poor’s (S&P). The country’s new rating is two notches above the investment-grade baseline and higher than India and Brazil.

Agost Benard of S&P says the new rating could be contributed to the fact that the country’s revenue growth has exceeded GDP growth for three consecutive years, thanks in large measure to President Aquino’s reforms of the internal-revenue service and the customs bureau. Investment and private consumption also posted strong gains in 2013, both aided by remittances from Filipinos working abroad.

These have risen steadily since 1998, and in 2013 topped R289-billion, equivalent to about a tenth of GDP. An influx of tourists, lured to scenic beaches and jungle treks, has helped.

But concerns remain. In July 2014, inflation hit a 33-month high of 4,9%, and corruption remains endemic. The country still falls in the bottom half in the Corruption Perceptions Index kept by the lobby group Transparency International. Adding fuel to the fire is its similarly bad placement on the World Bank’s “Doing Business” table: foreign investors are frustrated by rules limiting them to 40% stakes in local firms. Those who do invest fret about expensive electricity and poor infrastructure.

Red tape aside, US multinational investment banking firm Goldman Sachs estimates that, by 2050, the Philippines will be the 14th-largest economy in the world.

Did you know?

The peso (meaning “weight” or, more loosely, “pound” in Spanish) was a coin that originated in Spain. It is now the name of the monetary unit of several former Spanish colonies.

ABOVE Pearl Farm Beach Resort on Samal Island, Davao del Sur © Francis Tan

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Source: Real Estate Bubble: Megaword Corp.

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The firm also included the Philippines in its list of the Next Eleven economies – countries identified as having a high potential of becoming the world's largest economies in the 21st century.

In line with this, UK multinational banking and financial services company HSBC believes that the Philippines' economy will become the 16th-largest in the world, fifth-largest in Asia and the largest in southeast Asia by 2050.

With an increasingly healthy economy and steady improvement in areas such as transparency and governance, more investors have turned their attention to the Philippines’ capital, resulting in Manila’s residential, retail and office sectors being marked as investment prospects.

Building the future The Philippines is on an infrastructure binge.

In August 2014, the country had 57 projects in the pipeline (though contracts have been awarded for only seven at that stage). This year’s budget allots 562,3-billion pesos (R148billion), about four percent of GDP, to infrastructure, with a further 802,9-billion pesos planned for 2016. The boom is the result of the residential and commercial property sectors seeing strong interest from overseas investors and developers. These foreign investors include a number of UK nationals, but the majority are from Asian neighbours Korea, Singapore, Japan, China and India.

“There is strong interest from foreign developers and investors to acquire commercial property in Metro Manila, particularly in Makati and Bonifacio Global City, which are the country’s premier central business districts,” says Henry Cabrera, Head

of Capital Markets at Jones Lange LaSalle (JLL) Philippines, a global real estate services firm specialising in commercial property and investment management. “Both groups are looking for development opportunities in residential condos for sale or office space for lease. Most of these groups come from Japan, Hong Kong and Singapore. We are, however, starting to see interest from Thailand, Malaysia and Indonesia.”

Similarly, residential developments are experiencing positive sales take-up and the sustained performance of the investment market has prompted developers to continue to launch new projects. Even though the Philippines market still lags behind Malaysia, Thailand, Singapore, Hong Kong, Beijing and Shanghai, it’s catching up at an impressive rate. In 2014, the country’s top real estate developers spend close to R504-billion, reinforcing the market’s strong economic fundamentals in preparation for the ASEAN economic integration by 2015.

According to Lamundi’s first annual report on the current and future state of real estate in the emerging markets, the Philippines is among a number of countries expected to become economic powerhouses of the future.

These countries have been grouped into the so-called MINT – Mexico, Indonesia, Nigeria and Turkey – and PINE countries – the Philippines, Indonesia, Nigeria and Ethiopia.

These countries’ young populations, increasing wealth, economic stability and attractive geographical location make them particularly good options for investment, infrastructure development and construction, proving that the Philippines truly holds much promise for the future.

Did you know?

According to Global Property Guide, it takes about 36 days to go through the eight procedures needed to register a property in the Philippines.

ABOVE The Philippines islands

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Industrial “design” revolution

By Jonathan Leibowitz, Principal: Empowered Spaces Architects

History of industrial building design in South Africa The architectural design of industrial buildings has evolved from utilitarian to design-sensitive. Historically, industrial buildings were built to be shells to house product, production or distribution; the simpler and cheaper they could be built, the better. Auxiliary buildings such as offices and related staff facilities were merely tagged on, either inside or onto the face of the industrial box, with little consideration.

The advent of the industrial park marked the first part of this design revolution, where progressive urban planning concepts developed design guidelines for the aesthetics and planning of building within the parks. This resulted in more considered environments, and afforded tenants the opportunity and value to incorporate their head-office components into the same development, which in turn again uplifted and upgraded the quality of the facilities as a whole. One now started to see high-grade commercial offices being attached to historically cheap warehouse structures.

The old ratios of “x” percentage of office to warehouse were being challenged. With the head office and increasing staff sensitivity, the architectural aesthetic and design principles are getting stretched to include all the corporate recreational facilities that one experiences in the office market into the industrial market.

New industrial design At Empowered Spaces Architects, we are experiencing – and designing for – a new industrial revolution. The design of our buildings is taking a holistic approach to this new dynamic.

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We strive to integrate the design of the office component with the warehouse. No longer are they seen as two distinct elements tied together out of necessity. The practical elements on a warehouse still need to be catered for but, using innovative steel design, we have been able to create innovative design models for the warehouse structure. New advanced computer modelling, integrating both architectural and engineering analysis, has enabled us to be both innovative and cost-effective in this process.

Empowered Spaces has also seen a distinct move to more image-conscious design by our clients. Like corporate office design, our clients want their buildings to reflect and enhance their corporate image. The criteria required by the office market need to be incorporated into the evolved industrial facilities. In order to keep key staff, both blue- and white-collar environments need to match the aspirations of competing offerings.

In our recently completed Westcon and Covidien buildings, one can see the incorporation of all of the above. The office facilities include gyms, canteens and all the other features associated with any AAA-grade office block. The warehouse design integrates and enhances the overall design of the facilities. Through its design, the Cell C warehouse has become an iconic billboard for the company on the national highway.

In the Wizard design, we worked with the client to design a building that reflects and enhances the company image. DB Schenker required a large free-standing office block adjacent to its 35 000m² warehouse. Being in an industrial park and having to house a large number of offices and staff, all required auxiliary facilities needed to be houses on site.

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The new facility we are doing for Servest takes the concept one step further: a 5 000m² AAA-grade head office with a 2 000m², 15mhigh, fully automated warehouse. Our new Hilti design incorporates the whole facility into a sheet-clad structure, sculptured to create an architecturally unique aesthetic.

Warehouse design is also evolving, with the use of tilt up panels, “joint-less” floors and more product automation as well as the incorporation of energy-efficient and green design. Our Grindfos building is the first industrial facility to achieve a 4-Star Green Star rating and was acknowledged by winning the SAPOA 2015 award for industrial design.

In our 35 000m² Builders Warehouse facility, “light kinetics” skylights were installed in the roof to greatly reduce the usage of artificial lighting. The incorporation of solar panels and photovoltaic energy production is also becoming standard in new facilities.

Empowered Spaces prides itself on being at the forefront of the new industrial

“design” revolution. We are taking the new thinking a step further and integrating pure corporate office space into industrial “type” structures. As with all aspects of modern life, designs, thought patterns and technology are rapidly evolving – and we need to keep up and exceed our client’s expectations.

THIS PAGE, FROM TOP Servest, Waterfall; Toyota, Permona; Westcon, Waterfall OPPOSITE, FROM TOP Wizard, Longmeadow; Cell C, Waterfall

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The Maine attraction Meet Menlyn Maine, a mega development that’s taking shape in Pretoria that is set to rival Sandton and become Africa’s first and only green city

By Candace King

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ABOVE Henk Boogertman, the South African architect behind the vision and development of Menlyn Maine BELOW At the heart of Menlyn Maine’s vibrant future retail and entertainment epicentre, the landmark 13 500m² A-grade nine-storey West Tower Office Block is already under construction

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outh Africa is fast becoming a greenbuilding leader, a feather that’s set to garner greater attention in the country’s cap of sustainable achievements through the development of not only South Africa but Africa’s first green, mixed-use city precinct.

Currently under construction in Pretoria, the multi-billion-rand Menlyn Maine green city development will boast buildings all with a minimum of 4-Star Green Star ratings, which will be laid out according to the standards set out by the Leadership in Energy and Environmental Design for Neighbourhood Development ratings system – of which South Africa doesn’t have an equivalent yet.

More significantly, the design of Menlyn Maine will be highly sustainable, comprising streets and sidewalks, housing, offices, shops, restaurants and public spaces including parks and squares that all promote an environmentally responsible and healthy lifestyle – making it a truly green city.

The benefits of the city will go beyond a lighter carbon footprint and lower electricity bills. Menlyn Maine will offer a quality experience at a distinguished address of choice for working, shopping, entertainment and living.

Pioneered by Menlyn Maine Investments, Menlyn Maine will be one of 16 green cities being built in various countries as part of the Clinton Climate Initiative. The vision of Menlyn Maine all began with Henk Boogertman, a seasoned architect with ample experience who, having drawn up the master plan, is leading the development.

“The idea initially started eight years ago when another group of developers attempted to do the redevelopment of Menlyn but failed,” explains Boogertman. “At the time, it was to be called ‘Menhattan’. The idea was to build a new city centre around a park similar to the concept of Central Park in Manhattan, New York. Then, six years ago I was approached

by Ice Finance about doing a development in Pretoria. The beginning of the project required the developers to purchase and demolish 105 houses – this project was joined by Equity Estates along with Absa and Nedbank.”

The project’s main contractor, Wilson Bayly Holmes-Ovcon, has been developing portions of it step-by-step ever since. The scale of Menlyn Maine is massive, says Boogertman, noting that the project will represent 315 000m² lettable area.

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The vision is to create a city precinct that is modern, efficient, completely green and walkable, says Boogertman. “This will be a work-live-play-shop-invest development,” he says. “Not only is Menlyn Maine green in terms of sustainability and energy consumption but it is also naturally green in terms of boasting trees and plants, which encourages healthy urban living. It symbolises a new vibrant city centre for modern urban living.”

It’s been said that Menlyn Maine will become the Sandton of Pretoria. “Menlyn Maine will become the premier entertainment and shopping hub in Pretoria and will be the corporate destination of choice,” says Boogertman.

Coupled with the major revamp of the existing Menlyn Park Shopping Centre, Menlyn Maine is becoming a main anchor of the precinct. All the major banks, financialservice and other professional-service providers, leading companies and top retailers are flocking to the area.

Different to the current Sandton, Menlyn Maine will promote “walkability” – a new concept in the country, where citizens living and working in the precinct, through spatial and town planning design, are encouraged to either walk between parts of the precinct or make use of reliable public transport.

Situated minutes away from the N1 freeway’s Atterbury and Garsfontein interchanges, right off the main arterial of January Masilela Road, and 500 metres from the main entrance to the super-regional Menlyn Park Shopping Centre, Menlyn Maine’s bustling location will ensure its success, especially in terms of exceptional transport connections.

Menlyn Maine will feature three Gautrain bus stops, city bus stations, a pedestrian link to the new bus rapid transit system and taxi facilities. It is also surrounded by medical facilities, schools and all the amenities that come with being in the heart of the upmarket, growing eastern suburbs of Pretoria.

ABOVE The multi-billion-rand Menlyn Maine green city development in Pretoria will be Africa’s first green mixed-use city precinct, set to rival Johannesburg’s Sandton

A green city unfolding The development of Menlyn Maine is already under way. Work began in November 2014 on the city centre, Menlyn Maine Central Square, which is scheduled to open in September 2016.

The precinct as a whole is set to be complete by 2023.

One of the first buildings to be completed was the 4-Star Green Star rated 16 400m² Nedbank building, followed by the 4-Star Green Star rated 12 500m² Sage VIP building.

A further 26 500m² of office space will be added in the form of three green A-grade office buildings worth R750-million that are set to go up in Menlyn Maine between the end of 2015 and the end of 2016.

Boogertman says the trio of quality office buildings will all achieve at least a 4-Star Green Star rating. These buildings include the West Tower Office Block, the Indus Building and the Orion Building.

Already under construction, the landmark 13 500m² West Tower Office Block is at the heart of Menlyn Maine’s vibrant future retail and entertainment epicentre. This A-grade ninestorey office tower has been designed to create flexible space for corporate headquarters or a bustling multifaceted business environment.

Located on the corner of Aramist Avenue and Dallas Road, it will be ready for tenant

The architects behind Menlyn Maine • Central Square Boogertman & Partners, Pretoria • Central Square interior DSGN Architects • Pegasus phase one and two, Orion Building, Mercury Building, Block A offices Boogertman & Partners, Johannesburg Property management and administration • Indus Building and residential GLH Architects • Naos Building PKA Architects • Urban entertainment (Sun International) LYT Architects SOUTH AFRICAN PROPERTY REVIEW

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A large entertainment centre is to be developed

by Sun International. It will include an additional fivestar hotel of 110 rooms, a 10 000m² Times Square Casino and an 8 000-seater auditorium capable of hosting concerts and conferences

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occupation in September 2016, offering ample parking at a ratio of 4,5 bays to every 100m².

Opposite this iconic tower, the Indus Building will provide 9 500m² of A-grade office space across five floors, allowing for the flexible subdivision of offices. It is set for completion in late 2016.

The Orion Building will be developed opposite the 3 200m² Regus Building, which was completed in June 2014. Standing in a prime position at the new gateway to Menlyn Maine from January Masilela Road, the Orion Building mirrors its neighbouring offices. The four-storey building will provide 4 500m² of environmentally innovative and flexible lettable A-grade offices, suited to either a single- or multi-tenant environment. Its development will be demand-driven, with completion delivery possible as soon as late 2015.

In terms of retail, Menlyn Maine will become a superior trading node. Menlyn Maine Central Square will boast an up-market 30 000m² boutique mall with a particular emphasis on high-end food, restaurants and coffee shops, healthcare, beauty, technology and gifting.

With 88 shops in total, Boogertman says that the retail brand offering will include Woolworths, Spar, Pick n Pay, Clicks, Tasha’s, The Bistro, Turn and Tender, Koi, Mythos as well as all the major banks. Potential designer fashion brands include Armani Jeans, Mont Blanc and Lacoste.

Menlyn Maine will also receive a massive entertainment, leisure, sport and arts component in the form of a 4,5-star hotel, which will offer both apartments for long stays and regular hotel rooms. The hotel will be managed by Executive Apartments and Hotels Group.

A large entertainment centre is to be developed by Sun International. It will include an additional five-star hotel of 110 rooms, a 10 000m² Times Square Casino and an 8 000-seater auditorium capable of hosting concerts and conferences.

“Menlyn Maine will offer a different kind of shopping and entertainment experience,” says Boogertman.

Furthermore, Menlyn Maine will offer a 4 000m² Virgin Classic gym as part of Menlyn Maine Central Square. “The development of a Virgin Classic gym in the precinct will mark the first of its kind in Pretoria,” says Boogertman. Menlyn Maine will also feature 475 medium- to high-end apartments, which will be launched in April 2015.

After an 11-metre-tall sculpture called Spirit of Tshwane was erected in the precinct recently, Boogertman says that he wants this

to be the first of many pieces of public art, and has commissioned a commercial art gallery to cultivate local talent who will produce public art for the precinct. Further culture will be available at the planned Menlyn Maine Learning Centre, which will serve as a pre-school facility in the mornings, an after-school centre for art, music and dance classes, and an evening venue for adults to learn photography and IT. Part of the development involves several road improvements that will include the upgrading of Lynnwood Road and Atterbury Road up to January Masilela Road. A new bridge intersection between Lois Avenue and January Masilela Road will also be constructed, which will provide direct access into Menlyn Maine from the north side.

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feature The future looks green An interesting touch to the development of Menlyn Maine is that a host of top-notch, highly respected architectural firms are working jointly on the project’s design.

“Menlyn Maine is conceptually driven by me but other major architects are also involved,” says Boogertman. “I believe this collaboration of architects helps to provide a mix of style and design to Menlyn Maine, making it unique. Currently, the main focus is the development of Menlyn Maine Central Square as well as the office element.

As Menlyn Maine Central Square develops, the office component will receive more demand and exposure. There’s also an appetite for medical facility development but this is still in its infancy.

“The development of green city precincts such as Menlyn Maine is a trend that we are definitely going to see well into the future. Sustainability is not a buzz word any more, it’s a reality,” says Boogertman.

Together with his team of developers, Boogertman is looking at mimicking the Menlyn Maine development concept in partnership with another developer in Cape Town. Currently, a master plan is in the pipeline.

The official launch date of the Menlyn Maine green city precinct project kicks off on 26 March 2015, marking the beginning of exciting times ahead for the city of Pretoria and for the African continent as a whole, as it welcomes its first ever green city.

BELOW The 9 500m² Indus Building is set to be developed in Menlyn Maine

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Re-stitching the city Through meaningful partnerships, the City of Johannesburg is eliminating its spatial segregation legacy by establishing housing developments and bringing communities closer together

By Candace King Photographs by Erik Forster

W

ith South Africa’s rapid urbanisation and rising housing backlog of 2,3million units, the need to develop affordable and social housing has become imperative.

This demand is something that the City of Johannesburg (CoJ) is aware of and strives to meet through its initiatives, projects and campaigns. Furthermore, the CoJ is eager to partner with the private sector on the development of housing projects.

Prime examples of such projects include the South Hills integrated mixed-income housing development situated in the South Hills precinct, Johannesburg South, and the City Deep Estate project on Heidelberg Road, City Deep.

Solidifying the south

ABOVE City of Johannesburg Executive Mayor Mpho Parks Tau BELOW On completion in the first quarter of 2015, the City Deep Social Housing Project will boast 936 housing units

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As part of the CoJ’s adopted Breaking New Ground (BNG) housing policy, the South Hills project is a joint venture between the CoJ and Standard Bank, with Calgro M3 as its development partner and implementing agent.

“This project was a proposal call award from the Johannesburg City Council in November 2010, which called on the four major banks to submit proposals to develop

a mixed residential development on two portions of land and one erf situated between the southern suburbs of Johannesburg,” says Stewart Dalziel, Manager: Real Estate Investments at Standard Bank. “The project comprises approximately 95ha, while the balance of the land, approximately 100ha, will remain intact to be developed into park facilities. The latest feasibility indicates the project will realise 5 327 units in total: 2 242 fully subsidised BNG units, 1 525 freehold affordable houses, and 1 560 social, finance-linked individual subsidy programme (FLISP) and gap housing units. The housing will be developed in phases over five to six years.”

The core driving force behind the success of South Hills is its ideal location.

Positioned 6km south of the Johannesburg CBD, the development allows generous access to business nodes, amenities, places of work and public transport systems, eliminating time spent on travelling and, in doing so, increasing residents’ disposable income as a result of lower commuter costs.

South Hills simultaneously brings previously disadvantaged communities closer to the city’s economic opportunities.

South Hills forms part of the CoJ’s greater Corridors of Freedom campaign, which aims to re-stitch the city through integration.

The project is also characterised by the provision and integration of various land uses, accommodating families from different income categories, and thus creating a sustainable human settlement as envisioned by the City’s 10 Priorities.

“Standard Bank has enjoyed a fruitful relationship with Calgro M3 over the years, providing them with debt funding for other projects,” says Dalziel. “Although the banks have committed to assisting with the delivery of housing units, thus increasing available stock, we prefer to link with developers who have a proven track record to actually implement the project.

“In many respects, the South Hills project is a prime example of the private sector partnering with the public sector.

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The South Hills integrated mixed-income housing development will assist in bridging the inner-city and surrounds housing gap via the provision of 5 327 housing units by 2020

The municipalities play the role of not only being the municipality and regulatory authority for the development, but also that of land owner, and provider of bulk services, capital funds and grants for the installation of these, as well as providing the grants and subsidies to the end user for the relevant top structures.

“The project benefits from this injection of public sector funds when the project is deemed to be an integrated housing project, where the majority of the units are classified as subsidised units.”

“The City of Johannesburg has a longstanding relationship with Standard Bank,” says Johannesburg Executive Mayor Mpho Parks Tau. “The fact that we have been able to partner with the bank and Calgro M3 to develop the South Hills project is testament to the potential that public-private partnerships have to unlock value in the city’s property landscape.

“This project is about driving transformation and looking at closer integration across the different historic communities, ultimately for the benefit of the residents who reside in these parts of the city.”

On completion, the medium density infill South Hills development will provide different types of housing and offer mixed-use business centres, crèches, religious sites, a community centre, schools, various recreational parks and public sports facilities. It will include the rehabilitation of the existing public swimming pool and park.

Bulk services, including sewage, water and electricity, are already in place for the initial three phases. To make provision for the predicted increase in traffic, construction plans for major road upgrades as well as opening up road links to connecting suburbs are in place, in addition to the execution of a major sewer and water supply upgrade.

South Hills is estimated to boast a value in excess of R1,95-billion. The CoJ will invest R750-million in the form of grants and subsidies into the project between now and 2020, the development’s scheduled completion date.

Housing in the deep The City Deep Estate project on Heidelberg Road, City Deep is one of the Johannesburg Social Housing Company’s (JOSHCO) flagship projects, where a hostel has been converted and developed into new rental units. The project comprises 328 current and 380 converted units, with 228 units still to be delivered.

The development of the City Deep Social Housing Project has been done in phases and is due for completion in the first quarter of 2015. It has already won the South African Housing Foundation award for Best Social Housing Project in 2014.

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feature The segregated dormitories have been transformed into a contemporary space for families to live in.

Within 10 years, JOSHCO, a CoJ-owned entity that has received an unqualified audit over the past eight years (clean audit over the last six years), has invested more than R1,8billion towards making Johannesburg a more liveable city.

In this time, JOSHCO has provided more than 7 000 homes and refurbished or constructed 8 749 units. It has an ambitious plan to increase the number of units to more than 13 600 by the end of June 2017.

“One of the factors that threatened social housing was non-payment of rentals from tenants,” says Rory Gallocher, Chief Executive Officer of JOSHCO. “Our tenants can expect delivery of service, while we expect the tenants to pay rent on time every month, and to respect the buildings and the rights of other tenants. The collection rate up to the end of the last audited financial year was 88% – up from 46% in 2006. JOSHCO is progressively improving this in order to achieve an average of 97%.

“Education is a large part of what we do.

Often our tenants are first-time renters so the rights and obligations of a responsible tenant need to be communicated. This is done through workshops that JOSHCO’s tenants are required to attend before signing a lease agreement.”

JOSHCO’s primary objective is to transform the lives of its tenants by providing quality, affordable, safe and clean accommodation

that is sustainable, inclusive and energyefficient. It further contributes through its repossession and refurbishment of “bad buildings” in the city. Building energy-efficient communities will be actualised in the retrofitting of JOSHCO developments with energy-efficient technology such as solar geysers, smart meters and JOJO tanks.

“JOSHCO has transformed these monuments of South Africa’s historic inequalities into sustainable thriving spaces for communities to live in,” says Tau. “The City Deep Social Housing Project is a demonstration of the city’s commitment to redress historic spatial inequalities through, among others, the rehabilitation of mining land in line with our Corridors of Freedom programme. This programme seeks to realise our spatial vision of well-planned transport arteries that are linked to interchanges where mixed-use development and high-density accommodation – supported by office buildings, retail development, and opportunities for leisure and recreation – exist.”

On final completion, the project will boast a total 936 units and will have developed roads, pedestrian walkways, gardens and other amenities. There are 10 similar developments in the organisation’s portfolio.

“The City of Johannesburg is a city at work to secure a future where its citizens, instead of driving cars to move around, opt for cycling or walking on designated lanes that are currently being rolled out in the city,” says Tau.

Deve

ABOVE Chief Executive Officer of JOSHCO Rory Gallocher BELOW The City Deep Social Housing Project BELOW LEFT Aerial perspective of South Hills – the school and church

aerial perspective Southills_ school and church

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DON’T MISS OUT on this well-used and popular industry resource, where each year we accept a large number of listings and advertisements from professionals and service providers across the entire spectrum of property activities.

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2015/02/03 2015/01/14 3:19 1:38 PM

flashback

Rissik Street Post Office, Johannesburg, South Africa One of Johannesburg’s oldest public buildings, the Rissik Street Post Office is a grand reminder of the City of Gold’s booming history of development

F

FROM TOP 1888, 1889, 1897, 1905 BELOW 1897

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rom a dusty mine town to a bustling metropolis, the city of Johannesburg has experienced an intriguing history. Since its early days during 1886 when it was formally established after the discovery of gold, Johannesburg grew exponentially and its population swelled. One of the very first buildings to be erected in the exciting new town was the Rissik Street Post Office, situated on the corner of Rissik Street and President Street. Regarded as the town’s first post office, the simple, low, flat building was built in 1888, serving as the first government building of the growing town, with the actual post office occupying one wing. The post office took over the entire building in 1892. The 1888 Rissik Street Post Office was then demolished and a bigger building was erected in 1897 – a grand architectural masterpiece designed by Dutch architect Sytze Wierda and, at the time, the tallest building in town. Based on a plethora of design styles including Renaissance, and drawing on French, Dutch and other European

influences, the elegant building evolved over time as a result of the town’s rising population and popularity. In 1905, another storey was added to the existing three, and the bell tower was replaced by a clock tower. The Post Office also served as the first market square in Johannesburg. In 1978, the building was proclaimed a national monument. Sadly, in 1996 it was abandoned and has rapidly deteriorated ever since because of neglect, vandalism and theft. The building lost its prized character trait in 2002 when its clock hands and bells were stolen, and has also suffered several fires. According to a heritage report, the Rissik Street Post Office is structurally sound and could be restored to its previous condition. In 1998, a Malaysian property developer showed a keen interest in the building, with the idea of turning it into a boutique hotel at a cost of R35-million. This proposal never came to fruition. Currently, there is talk of the building being renovated to its former glory.

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In hand and online, SAPOA’s South African Property Review has a far-reaching appeal - not only does the print version get mailed to a 2000+ targeted database, it also enjoys a monthly online impression rate of over 3675 hits, with an average read of upwards of six minutes per issue.

www.sapoa.org.za EMERGING MARKETS Affordable housing and student accommodation

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April 2014

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PROPERTY SOUTH AFRICAN

RICS A femalepresident first

NEW LEASE ON LIFE Urban regeneration and spatial transformation change the game DEVELOPING AGAINST THE GRAIN Harvesting student accommodation

THE BIG DEAL The point when growth changes the way of doing business

Taking ‘Atvantage’ of great project management 2014/02/06 10:40 AM

Commuter AXIS to Jo’burg’s rail network

AMAzing contemporary architecture

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MOTHER KNOWS BEST Diving into opportunities in the Mother City

HARBOURING SUCCESS The V&A: a destination in its own right

BOWING OUT Estienne de Klerk on a year of legislation, tabled motions and a commitment to education

Making a difference

The 46th Annual SAPOA International Convention and Property Exhibition

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New-age aesthetics

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EYE ON AFRICA Mauritius: sun, sea, sand and citizenship

THE WORLD UNDER CONSTRUCTION Construction management: a pillar of development strength

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AFRICA Mozambique: more than prawns and beaches

46th Annual SAPOA International Convention and Property Exhibition: report back and Innovative Excellence Awards

AFRICA SERIES Zimbabwe: time to play the market

46th Annual SAPOA International Convention and Property Exhibition

The WOR

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April 2014

Alice Lane on show A wonderland of aesthetic excellence

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Urban design and regeneration

BANKING ON DESIGN Setting new standards in interiors

PROPERTY REPORTING ON AFRICA Taking a constructive approach to Africa’s future

March 2014

More than just finance

February 2014

Banking on green investments

February 2014

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GAUTRAIN Unlocking the property pipeline

CSI Are you doing your bit?

2015/02/03 11:21 AM

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AFRICA SERIES Botswana: from rags to riches

Attorneys, brokers and auctioneers

AFRICA SERIES Namibia in focus

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FACILITIES MANAGEMENT It’s all about integrated service

Showing off modernity Hertford office park

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December 2013 / January 2014

Broll’s multi-disciplinary property services

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ECOFRIENDLY MASTERPIECE Efficiently showing off engineering and design aesthetics

November 2013

Inspired, innovative and independent

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GOING THE EXTRA GREEN MILE A very real passage towards sustainability

CSI and interior design

SANDTON CITY MOVES UP A GEAR Muller mulls over retail offerings

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ies: ser ly ica Afr nthountry Theour mo y-c y-b ntr focus cou

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October 2013

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Engineers & quantity surveyors

SASOL’s SANDTON HQ Alchemy brings the magic

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INVESTMENT FUNDING Vunani’s quest for true value

October 2013

September 2013

SHINE ON, SAPOA Our Convention report back

August 2013

July 2013

December 2014 /January 2015

March 2015

EYE ON AFRICA Uganda: prosperity and heightened development

ARROWHEAD Always on target ALL-STAR ASSET SA listed property in the lead

THE PRECINCT EFFECT The rise and rise of trendy nodes

THE TALENTED MR NOMVETE Delta’s rise and rise

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Project managers

PROPERTY EYE CANDY Excellence winners announced

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VUKILE’s NEW WUNDERKIND Why Dr Moseneke made the move

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Heritage, where the heart is

WALKING ON BROKEN GLASS Women shatter the ceiling

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August 2013

Attorneys in focuos

PRESIDENT’S MESSAGE Amelia Beattie reflects on the year to date PROPERTY TRENDS The industrial sector revolution: alive and well

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Women in property

Woodstock Cape Town’s darling of regeneration

AFRICA SERIES Rwanda’s riveting revival

REVIEW

SA REITs The dream becomes a reality

Architects in focus

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Menlyn Maine Pretoria’s ‘Sandton’ rises

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The Philippines Islands of opportunity

PAYING IT FORWARD Corporate social investment: not just for seasonal goodwill

July 2013

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The industrial “design” revolution

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PROPERTY PROPERTY MOTHER CITY HOSTED SAPOA meets the Mayor

Empowered Spaces

December 2014 /January 2015

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Innovative Excellence Awards And the winners are…

YOUR NEW PRESIDENT Meet Amelia Beattie AFRICA Angola: oil-rich and growing fast

REAL ESTATE and the South African economy

WORLD SERIES Global markets in the hot seat

2014/05/19 10:51 AM

Getting your brand noticed by the leading decision makers in South Africa’s commercial property industry - you know it makes sense Modderfontein metropolis

Towering feat: a catalyst for investment

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Developing an oceanic fairy tale

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October 2014

Alexandra township mixed-use development

Atterbury’s retail roll-out: the sky’s the limit

Cornubia: Durban’s mixeduse marvel

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Paving the way for future investment

A work in progress

Repurposing industrial buildings

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Area review: Remotely on the rise

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Mall of Africa

Shanghai Zendai’s city plan

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The North West’s future metropolis of massive opportunity

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Residential revival: growth for the future

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Published quarterly, SAPOA’s Property Developer is mailed out along with it’s sister publication the South African Property Review.

The Property Developer is also available online.

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 www.sapoa.org.za

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2015/02/03 2015/02/03 12:21 2:43 PM

feature

Shaping the landscape of tomorrow The 28th Corobrik Architectural Student of the Year Award celebrates SA’s innovative young minds

By Michelle Marais

T

he annual Corobrik Architectural Student of the Year Award has long been South Africa’s premier event, highlighting the creative and technical talent of the country’s top architectural students.

Eight regional finalists were chosen from participating universities and their projects – ranging from a financial institution to a cemetery – all exhibit the universal trend of sustainability, proving that these young minds are truly shaping the landscape of tomorrow.

Alexandra Wilmot: Eco-nnection (Nelson Mandela Metropolitan University) Alexandra Wilmot’s thesis examines the disjunctions that exist in post-apartheid Port Elizabeth as a result of historical and current forms of segregation. She aims to integrate the systems of this disconnected urban environment through the design of a photographic museum.

The proposed site is situated in Port Elizabeth’s primary transport node in Central.

By redesigning and integrating the existing commercial activities and pedestrian paths with the proposed museum functions and new urban park, a mixed-use ribbon of activity is created.

Through a holistic approach to integration, the intervention aims to begin to mend the ruptures of the past, so deeply inscribed in the space of South African cities.

Graeme Noeth: The design of an international school of astronomy and astro-tourism centre (Tshwane University of Technology) Graeme Noeth’s thesis saw him design an international school of astronomy and astrotourism centre; to be sited at the South African Astronomical Observatory in Sutherland.

“Architecture represents the symbiotic relationship between earth, man and the sky,” he says. “The proposed building aims to introduce a unique facility that would benefit the field of astronomy worldwide.”

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The design proposal is based on available research and experiments, documenting various cosmic bodies as well as framing these objects in the cosmic landscape.

His proposed School of Astronomy acts as a light filter, while investigating the relationship between architecture and the cosmic landscape.

Simon Henstra: Inner-city Palimpsest: Building the City Above the City (University of Cape Town) Simon Henstra’s thesis investigates the possibility of extending existing buildings upwards and outwards in a bid to utilise the unused airspace. He proposed the building of 42 residential units and 650m² of office space constructed above the existing buildings in Cape Town’s Long Street.

The paper explores a method of place less dependent on the ground plane, and able to occupy the underutilised airspace above existing blocks, densifying the city and expanding its capacity while maintaining the unique sense of character.

Marius du Plessis: A Journey from the Centre of the Earth (University of the Free State) Marius du Plessis’ thesis aims to answer the question, “How can development be seen as true progress if something is damaged in the process?”

“Geothermal energy can contribute by protecting our environment from drastic changes in order to save the depleting resources for our future generations,” Du Plessis says about the proposed national geothermal research and educational centre in Village Main, Johannesburg,. “Given the nature of a geothermal research and educational centre, it inevitably becomes a comment on alternative sustainable energy sources.

“Sustainability is a journey; a process that cannot be achieved in a short period of time.

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feature It is a way of life, a way of being and a way of constantly becoming – it’s a path of continual improvement.”

Harold Johnson: The “Dark” City: Critical Interventions in Urban Despair (University of Johannesburg) Harold Johnson’s thesis is a journey through the epidemic known as inner-city Johannesburg’s “bad buildings”.

He begins by observing and documenting the cycle of violence, abandonment and exodus, and comes to the conclusion that, over time, traditionally trained architects fail to contribute meaningfully or intervene in such situations.

In order to put a stop to the cycle, Johnson proposes that other means of researching and designing need to be employed, including collaborative techniques with the inhabitants of the “Dark City” to determine what architecture is in these places.

Johnson said, “The journey forced me to unpack normative definitions and question the validity of over-used notions such as ‘community’, ‘intervention’ and ‘informal’; questionable terms which shroud the reality of Johannesburg’s inner-city vertical settlements but conversely, our ability and willingness to engage with them.”

Brigitte Stevens: Celebrate Life (University of KwaZulu-Natal) Brigitte Stevens’s thesis explores the significance of the cosmos to death through space-making principles of the Shembe – “reclaiming lost space”. She proposes a cemetery complex to “Celebrate Life” in Durban.

She says that it is often thought that architecture represents the values of the society that creates it, and the great pieces of architecture represent cohesive, powerful societies. In many of them power is the result of some sort of greater belief system.

Stevens proposes introducing a symbol into the centre of the city, which will demonstrate the relationship between African spirituality and South African society, and redefining the identity of Durban as an African city.

Sarah de Villiers: Idea Bank (University of the Witwatersrand) Sarah de Villiers’s thesis proposes a new type of financial institution – a spatial platform

THIS PAGE, FROM TOP Harold Johnson; Brigitte Stevens; Sarah de Villiers; Walter Raubenheimer OPPOSITE, FROM TOP Alexandra Wilmot; Graeme Noeth; Simon Henstra; Marius du Plessis

whereby business ideas can be bought and sold – sited adjacent to Alexandra. She says that Alexandra is a hotpot of innovative business ideas. Examples of such projects include proposals for smarter solar-generated geysers and a door-to-door bread service.

These would be the type of products and services presented on the proposed idea trading floor.

De Villiers believes that sustainable practice in the environment is becoming increasingly dependent on society’s financial access. Projects would be crowd-funded by investors, diversifying their portfolios. The Idea Bank offers a system whereby ideas receive a monetary value, which offers new currency for growth and upliftment.

Walter Raubenheimer: Redefining Industry: Architecture as Constructive Extraction (University of Pretoria) Walter Raubenheimer’s objective was to question the current mining rehabilitation strategy of the Cullinan diamond mine by proposing an alternative architectural solution that regenerates the postindustrial scarred environment while providing opportunities for new spatial and sensory experiences.

It was discovered that the roots of vetiver grass can be extracted to produce an essential oil used as fixative in 90% of perfume. An essential oil extraction facility forms the first component of his design.

He also repurposed a number of other existing buildings, transforming them into a hydroponic greenhouse and a cidermaking facility.

His project inverts the historical relationship between industry and landscape.

Instead of depleting resources, the redefined industry provides the scarred landscape with new resources.

Save the date What: 28th Corobrik Architectural Student of the Year Award When: 22 April 2015 Where: Maslow Hotel, Sandton, Johannesburg SOUTH AFRICAN PROPERTY REVIEW

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feature

The Marcsmanship of a property mogul We sit down with Marc Wainer, former Chief Executive Officer of Redefine Properties and a respected property player, to talk about his book and the lessons learnt along the way

By Candace King

A

n autographed copy of founder and former Chief Executive Officer of Redefine Properties Marc Wainer’s book sits snugly on my book shelf. Apart from providing personal property tips, Wainer’s book offers insightful life lessons that anyone can digest. It’s a book you can’t put down.

From family grocer to property giant, Marc Wainer has defined the commercial real estate business like no other. He founded the JSElisted Redefine Properties and built it into one

of South Africa’s largest and most respected real estate companies.

In his debut book, Making My Marc: Lessons From A Life In Property, Wainer shares insights on the inner workings of South Africa’s property sector and offers guidance on how to survive and succeed in this dynamic, competitive sector.

Published by independent Cape Town publishers Burnet Media, Making My Marc paints a clear and compelling portrait of a man driven by passion, aptitude for business

Marc Wainer’s book, Making My Marc: Lessons From A Life In Property (Photograph by Michael Glenister)

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feature and love for his family. It shares his successes, mistakes and setbacks, taking readers through his ups and downs, revealing how he turned challenges into advantages and, through valuable partnerships, transformed his weaknesses into potent strengths.

From humble beginnings “This book was never intended to be an autobiography,” says Wainer in the book’s introduction. “It was the brainchild of finance journalist Ian Fife, who encouraged me over the course of a few of years to sit down with him and put some of my background and experiences to paper. Having finally agreed, we had only gone through the details of the first chapter when Ian sadly passed away.”

Cape Town journalist Tudor Caradoc-Davies then jumped on board to write Wainer’s book.

The project took two years to draft but Wainer says the result has been a huge success.

“The one thousand copies initially printed have all sold out,” he says. “Currently there’s a reprint. Norbert Sasse of Growthpoint Properties said he enjoyed it, and I’ve received positive feedback from the property industry. It’s been amazing for me… I’m even getting comments from people I don’t know, which is inspirational.”

Based on countless sessions with Wainer, as well as interviews with his business partners, colleagues, friends and family members, Caradoc-Davies has written a riveting account of the risks and rewards that define the life of a born entrepreneur, his roller-coaster rise to the top of South Africa’s property industry, and how he has taken this sector forward into fresh, uncharted territory with his commonsense approach to deal-making.

From Hyprop Investments’ acquisition of Canal Walk to Redefine’s monumental battle with Growthpoint Properties over Fountainhead Property Trust, Wainer reveals an insider’s perspective on the motivations, strategies and tactics that have made South African business history.

Apart from revealing behind-the-scenes stories about some of the biggest deals in South African commercial property and providing insight into the man who sealed them, the book offers a roadmap to business success and personal fulfilment through lessons about people, deal-making, character, leadership and values.

“While it’s about property, it’s also about lessons that are valid for everyday life,” says Wainer. “I see my book as a legacy for my grandchildren. It’s all about instilling the importance of integrity, respect and relationships. The book also speaks to the core values of Redefine Properties.”

From business to a teddy bear Wainer’s wife Lesley has also published her first book, released within weeks of her husband’s.

Adorably dubbed The Adventures Of Babba Bear, the book is based on a real teddy belonging to the couple’s granddaughter, Kiki.

The book comes with its very own furry white Babba bear with his signature red heart.

While the Wainers’ books appeal to vastly different audiences, both are inspired by the couple’s grandchildren and reveal their steadfast love of family. The Adventures Of Babba Bear is also published by Burnet Media.

“My wife has written a book for children – she thought that she had to compete with me,” says Wainer. “I tease her that she will be the next JK Rowling!”

All about the lessons “I didn’t do it for the money; I did it for passion and to share lessons,” says Wainer.

“I have mentors that I have learnt a lot from and I’m grateful for that. If this book can help anyone, it’s a way of giving back. For those who have the patience, passion and perseverance to make property a career, it is my sincere hope that some of my experiences and the lessons I’ve learnt will help you along the way. For those who aren’t starting out, and have perhaps walked with me in my journey, I hope you enjoy this look back over a career in property.”

Wainer closes his book with a note to his grandchildren: “Please remember that every dream begins with a dreamer. May the dreams that you dream be the future you find. If you can dream it, you can do it, providing you believe in your own ability and have the passion, perseverance and patience to make your dream a reality.”

Marc Wainer, founder and former Chief Executive Officer of JSE-listed Redefine Properties (Photograph by Michael Glenister) BELOW Lesley Wainer’s children’s book, The Adventures Of Babba Bear

“Please remember that every dream begins with a dreamer. May the dreams that you dream be the future you find.

If you can dream it, you can do it, providing you believe in your own ability and have the passion, perseverance and patience to make your dream a reality” SOUTH AFRICAN PROPERTY REVIEW

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feature

Whimsical Woodstock

Principal at Bam Architects Chris Bam shares his thoughts on the revival of Woodstock – Cape Town’s trendy “it” suburb that oozes historical charm and modern urban chic

By Candace King Photographs by Chris Bam and Mark Pettipher

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I

t’s clear that Chris Bam, Principal at Bam Architects, is passionate about the ongoing revival of Woodstock in Cape Town. Having founded Bam Architects in 1992, he’s watched it grow to a medium-sized practice operating from Woodstock, and has always had a deep-seated love for the oncedecaying suburb.

A rich tapestry weaves through its streets – that of a revived suburb bursting at the seams with restored antique buildings, parks and palm trees, and more than 380 galleries, bakeries, breweries, arts and craft centres, food markets, fashion design studios and furniture showrooms, street-side shops and some of South Africa’s finest eateries.

“It’s got a trendy, vibrant energy to it,” says Bam. “Cape Town is a creative hub at the moment, of which Woodstock has become the central melting pot of creativity.”

As old as Cape Town itself, Woodstock boasts a wealth of history – its community, architecture, diversity, potential and people all a part of its exciting story. “Woodstock boasts a rich texture and history, which has become a part of the fabric of the area,” says Bam. “The history is a part of the selling point of Woodstock.”

A brief history Situated about one kilometre east of the Cape Town city centre and nestled between the docks of Table Bay and the lower slopes of Devil’s Peak, Woodstock’s history harks back to the 1600s when the Dutch arrived and three freehold farms – Zonnebloem, Leliebloem and Roodebloem – were

Chris Bam, Principal at Bam Architects (Photograph by Mark Pettipher)

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feature established in 1692. The area grew and by the early 1800s became known as Papendorp, named after local property owner Pieter van Papendorp who had settled there in the mid-18th century. At the time, the area was characterised by small thatched buildings, fishermen’s houses and farm cottages. Over the years the name was changed to New Brighton, before finally becoming Woodstock.

It was during the early 19th century, when land surveyor and architect Louis Michel Thibault mapped all the properties along what is now called Main Road, that several farms and estates mushroomed.

One famous farm that still stands today is the Roodebloem House, which became the home of the well-known Ruth Prowse School of Art in 1970, named after the famous artist who lived there.

By the late 19th century, after the arrival of the railway line, Woodstock became a quaint and favoured seaside village. Notorious for prolific shipwrecks during the sailing era, Woodstock beach was once a popular haunt that stretched along the front part of the suburb, to the north of the Castle of Good Hope.

During the massive land reclamation of part of Table Bay to create the Cape Town foreshore in the early 1950s, the beach was destroyed.

With increased industrialisation and a growing working population, Woodstock evolved into an industrial precinct and its seaside persona faded. During the 1970s and 1980s, it fell into decay where drugs, crime and grime escalated.

In the late 1990s and early 2000s, Woodstock walked the path of urban renewal brought on by the clever revamping of old buildings and warehouses into new offices, shops and furniture showrooms. Particular pockets of the suburb have been revived and have become trendy hangouts; these include the redeveloped Old Biscuit Mill as well as the revitalised of Roodebloem Road, populated by restaurants.

The Woodstock dream Today, Woodstock continues to be renewed.

New developments are taking place and trendy shops and restaurants are popping up on every corner. Offices and new apartment blocks are also coming to life.

One prime regeneration project example is The Palms@Woodstock. “Formerly tenanted

by National Brands as a bakery, The Palms@ Woodstock is now a lifestyle and decor centre,” says Bam. “In 2000, the property was sold to Wetherlys, who redeveloped it, and we were commissioned as architects for the building.”

There was no master plan for Palms@ Woodstock, says Bam, adding that the team uncovered things as they went along. Having opened in 2001, the Palms@Woodstock served as “virgin territory” in terms of redevelopment in Woodstock – it was one the first revival projects in the suburb.

“Wetherlys was a pioneer in the rejuvenation of the area,” says Bam. “They were visionaries at a time when Woodstock was not exactly flavour of the month. This project acted as a catalyst for further redevelopment, symbolising the renaissance of Woodstock.”

In 2003, the Woodstock Upliftment Programme began, and in 2006 Woodstock became a City Improvement District (CID).

“Recently, there have been major clean-ups, and safety and security have been introduced into the precinct,” says Bam. “It’s now quite safe.

It’s been phenomenal to witness the change that has attracted new tenants to the area – a new type of person is doing business here.”

Bam points out that the success of Woodstock is also the result of its proximity to the central city bowl as well as the N1 and N2 freeways. The MyCiTi bus system has also helped to an extent in getting people into the area. He adds that property values have increased in the area, and that it has become a good investment location.

What happened in Woodstock • By 1884, Woodstock was the third-largest “town” in the country.

• The first railway line in South Africa from Cape Town extended into Woodstock in 1862.

• The first glass manufactured in South Africa was made at the Woodstock Glass Factory in 1879.

• The design of South Africa’s iconic Springbok emblem came from unsung German artist Heinrich “Heiner” Egersdörfer, who designed the first Springbok emblem badges in a small house in Woodstock.

BELOW Frequented by hipsters and trend-setters, the Old Biscuit Mill has been placed on the cultural map (Photograph by Chris Bam) OPPOSITE From farmlands to a fashionable seaside village, to an industrial precinct and now a trendy, modern urban hot spot, Woodstock has seen it all (Photograph by Mark Pettipher)

Woodstock still on the up Bam believes there’s still plenty of room for improvement. “The basic issues have largely been addressed,” he says. “However, there is still huge potential for further growth and the unlocking of value and investment. We are gaining exponential value here but we’re only scratching the surface.”

He highlights that, at present, Woodstock’s attractive real estate and tourist hot spots are fragmented in pockets across the precinct.

This, he says, is the next challenge for the revival of Woodstock – to increase and link the pockets.

“Moving forward, I see great potential and growth in the residential sector in Woodstock because there aren’t that many residential properties in the node,” says Bam. “There’s also huge potential for student accommodation and affordable accommodation for young professionals to be closer to the CBD. Through regeneration we shouldn’t flatten the area but rather build onto the fabric that’s already here. There needs to be further awareness of Woodstock’s cultural fabric, its industrial chic and cool, hipster vibe. This place has an interesting story to tell – we need to unlock this story and tell it.”

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Chris Owtram

Henje Boudry

Owner - C O architecture

Chief Executive Officer

C O architecture

Boudry Architects and Associates (Pty) Ltd

Established in 1992 after relocating from Cape Town, this Johannesburg-based architectural practice started with small beginnings in the residential market but soon progressed to measuring and preparing As-built drawings for large buildings in the health care sector.

Buildings constructed pre 1980 were designed and drawn by hand and in today’s world of technology became unmanageable when assessing the rentable floor areas.

Being a member and serving on the Gauteng Regional Council of SAPOA, we adopted the SAPOA Method of Measuring Floor Areas (MOMFA) in all our projects.

In most cases, when converting to digital drawings and recalculating floor space, the Rentable area would increase by up to 5% of the original value. The demand for this service grew dramatically and before long we were taking on large portfolios of up to 23 buildings at a time. These included office, retail and industrial. All three types require a different method of measuring. Property managers are now able to control the movement of tenants with ease.

Accuracy in measurement and correct interpretation of the MOMFA guidelines is essential in achieving a true record of the premises. SAPOA have been conducting very informative and well attended workshops on the subject. Equally important is the revision of drawings and calculations when there is a change of tenant or floor area. We take pride in our work and consider ourselves to be leaders in the industry.

Boudry Architects & Associates is a wellestablished Architectural Practice, operating from Woodstock, Cape Town. Henje Boudry (Els), whilst operating as a Sole Proprietor initially, established the Company’s roots in the Industry some fourteen years ago.

As principal architect and CEO, Henje obtained her B Arch degree from the University of Witwatersrand during 1992 and has since offered clients a wide range of experience in Commercial, Residential and Mixed-Use Developments. As such, the company is well positioned to execute the full scope of professional services – ranging from concept design to project management - in all fields of the built environment.

The company has a strong commitment to design excellence, taking pride in exploring creative and inventive options and often finds solutions which transcend conventions through close collaboration with clients.

Our design expertise combined with sound project management methodology - proves pivotal in translating our clients’ needs into timeless architectural interventions.

Purpose driven, sustainable and environmentally conscious developments; the passionate pursuit of quality architectural design; and committing to the development and growth of people through on-going training, development and mentoring of staff are principles the company strives towards.

Boudry Architects remains a proud supporter of Black Economic Empowerment and gender equality and this informs the approach to procuring resources as well as the professional consultants appointed or recommended.

c: +27 (0) 82 493 7474 / +27 (0) 86 673 0209 chris@coarchitecture.co.za www.coarchitecture.co.za

t: +27 (0)21 448 3955 / c: +27 (0)82 650 1064 office@boudryarchitects.com / henje@boudryarchitects.com www.boudryarchitects.com

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Adrian Maserow

Gerald Pereira

Marco Fanucchi

Managing Director

Director

Director

AMA Architects

AMA Architects

AMA Architects

Adrian Maserow studied at the Witwatersrand University where he obtained his Bachelors degree in 1981 and Masters degree in 1985.

From those early years as a student he was involved in architecture commercially as a necessity for his upkeep.

“The opportunities as an architect are as promising and as exciting as we allow ourselves to be open to – this environment is notable for some of the most entrepreneurial and forward looking groups looking to positively impact on the built environment,” says Maserow. “We regard ourselves as being a part of that circle. Whilst the building industry is often poorly skilled we believe that many of the new construction technologies offer a refreshing way forward,” he adds. Having celebrated its 21st birthday last year, AMA Architects have steadily expanded its footprint in the commercial, residential, retail and industrial space. “With this skill set I believe we are the practise of choice for mixed-use, urban orientated architecture that is both feasible and uplifting. Our second most interesting year was actually last year when we completed the Sandton Skye, Athol Towers, the TSR Factory and Building 9.

Looking ahead, Maserow says that 2015 will be AMA Architect’s most interesting one.

“AMA Architects practices a visionary and creative architecture in order to grow its design influence in a dynamic property market. We are supporters of the highest standards of design and committed to the sustainability of our work,” says Maserow.

Gerald Pereira grew up with a pre-disposition for playing with Lego and as a consequence studied at the University of Pretoria to become an architect. “ The commercial property sector is an excellent vehicle for realising building solutions that are time, cost and quality based thereby dealing with reality,” says Pereira. “The purpose of architecture is often misunderstood by the industry as being an image or a style, whereas architecture should not have a pre-established language or aesthetic. It is a built response to a determinable problem of housing a specific or flexible function. Every project for us is an opportunity to explore this philosophy to the benefit of both developers and end users,” he adds.

AMA Architects recently celebrated its 21st birthday of producing a wide range of commercial, retail, industrial and residential developments. According to Pereira, AMA Architects remain a competitive firm that continues to strive for the best solutions for clients. “The needs of the end user are key when providing spatial solutions for clients, and it is important for any business to listen to the objectives of its clients and provide solutions based on those needs. Being extremely active in the industry also preconditions you to guide your clients in achieving those objectives based on current best practice, thereby lowering risk,” explains Pereira.

2015 see’s the start of Marco Fanucchi’s 10th year at AMA Architects during which time he has witnessed the growth of the practice into a firm that is now recognised as a leading contemporary commercial design firm in South Africa.

The successful completion of the first of three luxury residential towers at Sandton Skye as well as the landmark TSR industrial factory and head office in Edenvale bears testament to AMA Architect’s ability to deliver excellence on a wide range commercial programmes and typologies.

We approach each new project with a fresh perspective, always pushing to maintain the balance between innovation and the essential requirement to satisfy our client’s expectations. Buildings are the settings for everyday life and we have a massive responsibility as architect’s to deliver an architecture of generosity that elevates the day to day experience of our projects from pure function and cost into something more memorable. We have to always ensure that our projects are not simply reduced to a value engineered vehicle for delivering a profitable return.

In an extremely competitive market it is essential that we are always up to date with the latest construction and computer technology. This ensures that we able to offer a competitive edge with regards to exploring design solutions, accurate documentation and ultimately the successful delivery of projects.

c: +27 (0)83 378 2891 / t: +27 (0)11 807 7505 adrian@amagroup.co.za www.amagroup.co.za

t: +27 (0)11 807 7505 gerald@amagroup.co.za www.amagroup.co.za

t: +27 (0)11 807 7505 marco@amagroup.co.za www.amagroup.co.za SOUTH AFRICAN PROPERTY REVIEW

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Ian Pretorius

Karabo Letele

Gerald Schulz

Director

Director

Associate

Impendulo Design Architects (Johannesburg)

Impendulo Design Architects (Bloemfontein)

Impendulo Design Architects (Johannesburg)

Impendulo Design Architects was founded after recognising the changes that occurred in South Africa after 1994. The idea for the company germinated in the late 1990s.

Impendulo Design Architects has completed a wide range of projects, including corporate head offices, projects for corporate clients in Germany and Japan (motor-related), and industrial projects. The tendency has been for the projects to have complex technical and service infrastructure requirements. Emphasis is placed on members of staff being offered opportunities to travel overseas to gain firsthand exposure to trends and technology being developed internationally. Visits to Shanghai, Chicago, Milan, Seoul, London and Berlin have been undertaken in the last five years. This has contributed to the company’s success, with competition entries for the Sasol Technology head office among other projects.

The KPMG East Campus in Parktown, Johannesburg is currently in its third phase of construction. This project incorporates office-planning concepts seen in Canary Wharf London and Interpolis Tilburg, the Netherlands. Current office-planning criteria require active design intervention to create a stimulating, energising workplace. Innovative ideas that are accepted practice in Europe (and where it is felt that the South African office environment has not yet matured in these directions) need to be incorporated into the campus design to future-proof the complex.

This represents the forward-thinking approach adopted by IDA on all projects.

Karabo Letele completed his BArch (UK) at Thames Poly in 1990 and a Dip Arch (UK) at the University of Greenwich in 1995.

He is registered with (SA)MIA. In 1996, he returned to South Africa and joined Winterbach Pretorius White Architects, going on to establish Impendulo Design Inc in 2001. Impendulo Design Architects was formed as the enterprise development partner of Winterbach Pretorius White.

Being proficient in several African and European languages has given him an advantage – he is able to obtain appointments for cross-border projects where English is a second language. This has facilitated the execution of the Matola Raid Monument and Interpretive Centre project in Maputo for the Department of Public Works. Having a working knowledge of Portuguese has assisted in the projectinitiation phase and dealing with the local representatives of the Ministry of Culture.

Since establishing Impendulo Design Architects in Bloemfontein, Letele has been involved in the design and administration of the construction of several school halls, libraries and laboratories at the FET colleges in the province, including the refurbishment of the of the Thaba Nchu local municipality head office.

The firm’s office in Bloemfontein has a day-to-day liaison with the head office in Johannesburg, and the rest of the IDA offices around the country.

Impendulo Design Architects is a design firm that values creative thinking, innovation in design and sustainability in pursuit of cuttingedge architecture. “We have a strong passion for excellence in design and development from the early conceptual phase to a finished product our clients can be proud of,” says the firm’s Johannesburg associate, Gerald Schulz.

“We take pride in understanding our clients’ needs and ensuring that their vision is realised in the projects that we undertake,” he says, noting that as a concept design architect for IDA, he is privileged to be involved in a wide variety of architecture, from the development of the new South African High Commission and Diplomatic Village in Lesotho and the conceptual design for KPMG’s New East Campus (phase three under construction) to a hi-tech multi-storey laboratory for Sasol Infrachem. Some of the most inspiring design and innovation could be seen in the new Sasol fuels research laboratory developed in the Capricorn Eco Park in Muizenberg, Cape Town.

Schulz has also been involved in the development of the monument and Interpretative Centre to commemorate the Matola Raid in Mozambique, and multi-storey mixed-use developments in Mauritius and Sandton. “IDA prides itself on having regular returning clients,” he says. “We are a medium-sized practice that not only focuses on aesthetic requirements of each development but also its long-term sustainability in the built environment. The long-term financial viability of every project is a key factor in our practice.”

t: +27 (0)11 880 4656 / c: +27 (0)82 920 2581 ian.pretorius@impendulo.co.za www.impendulo.co.za

t: +27 (0)51 430 4679 / c: +27 (0)82 784 4282 kb.letele@impendulo.co.za www.impendulo.co.za

t: +27 (0)11 880 4656 / c: +27 (0)82 331 2864 gerald@impendulo.co.za www.impendulo.co.za

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Johann Schoeman

Ashwin Balkissoon

Brendan Hunkin

Director

Associate

Associate

Impendulo Design Architects (East London)

Impendulo Design Architects (Durban)

Impendulo Design Architects (Johannesburg)

After obtaining his BArch degree at the University of Port Elizabeth (now NMMU) in 1992, Johann Schoeman’s working career began on the KZN south coast before he returned to the Eastern Cape in 1997. He joined Impendulo Design Architects in 2002 and has been a director since 2004.

Being based in the Eastern Cape has allowed him the opportunity to be involved in a wide range of public- and private-sector projects. Many are located in the most stunning rural landscapes in the country.

Increasing pressure is put on architects to realise project designs in record time. “We constantly incorporate new technologies and utilise office resources wisely to achieve this,” says Schoeman. “Sustainability is integral to our design process and we are involved in a few projects on the Wild Coast that incorporate off-grid sustainable technologies.”

The firm’s most valuable asset is people, whether that relates to energising staff or sourcing clients. It strives towards building strong relationships with clients and ensuring that their dreams are realised. This is echoed in the name Impendulo, which means “answer” or “response” in Xhosa. Returning clients are the practice’s best advertisement, and honesty and integrity are business principles that allow it to deliver a professional service.

Notable recent projects include the heritage upgrade and adaptive re-use of Nelson Mandela Museum in Mthatha, the new Madzikane Ka Zulu Hospital in Mount Frere, and a new social housing complex of 1 500 units in East London.

Ashwin Balkissoon graduated as an architect from the University of KwaZuluNatal in 2002. He joined Impendulo Design Architects Durban in 2012, and has been involved in various commercial projects, at different stages, since joining the team.

“It is pleasing when we succeed at redesigning a struggling shopping centre and revive it as social space that becomes financially viable again,” he says. “Architects have to be creative and innovative problemsolvers. The accelerating costs of development from commencement to closure of a project demand that an architect is keenly aware of the need to resolve issues quickly and within financial parameters.”

Balkissoon highlights that IDA places great importance on the client– architect relationship. The need for regular engagement with a client cannot be overemphasised, he says. In addition, IDA aims to continue to educate its staff in all aspects of architecture. “We adopt a holistic approach to design by considering the physical, social and financial implications upon the developer as well as future tenants and society at large,” he says. “We aim to create buildings that are highly functional in their context, yet at the same time bring creative impact and delight to their users, thereby adding value to the built environment.”

The practice’s philosophy is generated from the managing partner, through the managerial team, all the way down the structures. “IDA believes that good design is the most costeffective element value-add within the construction industry,” says Brendan Hunkin.

The firm provides a personal architectural service, tailored to the needs of individual clients, to ensure that the legacy of the project is one of high quality, and not solely a financially driven expedient.

The practice prides itself on its mentoring programmes as well as on transferring vital skills in design, construction and management. Each member of a project team is given a degree of responsibility, and freedom to grow. The practice encourages the members of a project to work in a team rather than as individuals, so that lateral, innovative ideas are generated instead of stereotypical solutions.

Technical compliance in the modern environment of documentation is key to any successful project. With responsibility comes accountability. The practice has completed several complicated projects with blue-chip clients, and has been credited with a number of corporate architectural brand roles that can only be achieved with a well-disciplined, single-minded approach to the quality of documentation prepared.

With a commitment to high levels of service, IDA has a solid reputation in undertaking challenging projects for corporates in the industry.

t: +27 (0)43 726 0060 / c: +27 (0)83 286 5370 johann@impendulo.co.za www.impendulo.co.za

t: +27 (0)31 301 1592 / c: +27 (0)83 320 9058 ashwin@impendulo.co.za www.impendulo.co.za

t: +27 (0)11 880 4656 / c: +27 (0)82 784 0215 brendan@impendulo.co.za www.impendulo.co.za SOUTH AFRICAN PROPERTY REVIEW

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Marikana Mall, one of Kabu Design Architects’ prized projects

Buhle Mathole Director and Senior Design Architect Kabu Design Architects

Buhle Mathole studied an undergraduate degree at the University of Cape Town, then took a year off in Massachussets in the US. She then completed her postgraduate degree at the University of Pretoria.

“When I got married, and started a family, I was still with the Gautrain and I thought it would be good to have a practice so that my time was flexible as a mother raising young kids,” she says. “So in 2007 we registered Kabu Design Architects. But there were so many offers on the table… One was being a director on the UJ Soweto Campus project, which I jumped at. At the end of the project in 2009 I started on my own in the practice.

It was a slow start but it soon boomed.”

From there, the firm grew exponentially.

In May 2010, the practice moved to an office park with two additional staff members, and by September 2011 the firm had

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outgrown the premises and had to move to its current home at Bergzicht Office Park.

“We are truly grateful for the growth, and with our teeth in the commercial sector we hope we will grow in a sustainable manner and produce phenomenal designs,” says Mathole. “We do have mentors such as Paragon and Activate, who assist us in the ‘bigger boy’s world’, and we always value their input and guidance.

“In Zulu there is a saying: ‘indlela ibuzwa kwabaphambili’, which means you must ask about the journey of those who have walked the path. We are also blessed that the firms, despite their remarkable success and excellence of standards, are still willing to talk to smaller firms like ourselves. This is also to ensure that the baton is passed on well and that we don’t just become bigheaded with no skill and knowledge. We want continued growth that is sustainable in the industry, and an excellent reputation – we are in it for the long haul.”

One of the most important aspects of the firm is that it upholds standards of excellence.

“With more people joining our team, this is the chant we pass on: we want to serve our clients with excellence and phenomenal designs,” says Mathole. “We understand human error; we don’t use the word perfection but rather excellence. We are proud to be a diverse South African team so we believe in contemporary African designs, as our slogan says.”

Kabu Design Architects’ most notable achievements to date include up-market residential development 44 on Keys in Rosebank, Southgate Mall, Germiston aircon units steel structure design, Marikana Mall, social housing project in Lenasia, and head-office designs for new Venda areafocused bank VBS Banking.

Mathole notes that when the practice started, the focus was on residential. But with the growth and demand on residential clients, Kabu Design Architects decided to expand to the commercial sector. She adds that the commercial world boasts firms that are far more established, and the big clients tend to gravitate towards who they know, and are less willing to look for and work with “new” talent.

“At one mall development, we were told we would not be considered because the client did not know us!” says Mathole. “The challenge is to build ourselves up until we’re known without compromising on quality. It’s a challenge but we’re willing to take it on.”

Looking ahead, Mathole says they have adapted to current trends and will endeavour to be relevant and not just stick to ways that might have worked in the past. “I’m also still in the education sector, and I see how education impacts the practice world – and vice versa,” she says. “This helps me to stay crisp and sharp. We’d also like to believe we are teachable and can learn a new thing every day.”

t: +27 (011) 475 8598 info@kabuarch.co.za www.kabuarch.co.za

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Unleashing African real estate “Unleashing Sub-Saharan Africa Property Markets” RICS report, September 2014

A

These gaps appear to be linked to a lack of development and progress, little access to financial resources and skills loss to other countries. Bridging these gaps would require an improvement and standardisation to education, formalisation of apprenticeships, and the provision of internship opportunities.

Review

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consumption expenditure and the retail sector in major metropolitan areas. While the South African property industry appears robust, the market faces a number of gaps, including a general shortage of professionals and professional regulations, a lack of skilled artisans, poorly motivated youth, and largely unsatisfactory management.

n Property South Africa

s a result of increasing urbanisation, rapid population growth and greater interaction with the global economy, the sub-Saharan African built environment is facing both challenges and opportunities.

In order for African markets to take advantage of the various opportunities, it’s essential for the built environment profession in Africa to possess the necessary skills and the capacity to respond.

In light of this, the Royal Institute of Chartered Surveyors (RICS) commissioned research to help understand the potential role RICS can play in sub-Saharan Africa, as well as in the sectors of land and resources, by assessing the potential future demand for services of the built environment profession by skills, discipline and by size of market.

The research further attempts to understand the conditions that inevitably influence the development and maturity of built environment professionals in the region, including countries in south, east and west Africa.

Potential gaps in the industry were identified in terms of the capacity of the industry and the skills offered by the industry.

The research found there is significant potential for building professional skills capacity through collaborative working across sub-Saharan Africa.

This research helped RICS to develop its strategy for its future presence in key African markets and in developing the profession.

The report focuses on the key markets of South Africa, Kenya, Ghana, Nigeria and Tanzania as prime case studies.

The conclusions and recommendations of the report highlight that sub-Saharan Africa needs to make improvements in data transparency, reliability and availability; establish international professional standards; invest in professional engagement and collaboration; and invest in capacity building.

Taking a look at South Africa, the report emphasises that the South African property market is one of the most mature on the continent, where there is sufficient reliable and transparent property data available.

The densification of the South African population coupled with the growing demand for space located in South African CBDs is expected to continue to underpin

Table 1: South Africa overview Indicator Population size (2012)

Measure 52,98-million

Expected population growth (2013-2018)

3,19%

Unemployment rate

25,6%

GDP (2013) GDP PPP (2012)

US$376-billion US$582,39

GDP growth rate (year-on-year)

2,7%

Inflation rate

5,5%

Source: Statistics South Africa, the South African Reserve Bank and RICS (2012)

Table 2: South Africa local regulatory boards Local bodies

2013 registration figures

South African Council for Project and Construction Management Professionals (SACPCMP)

2 201

South African Council for Quantity Surveying Professionals (SACQSP)

3 202

Engineering Council of South Africa (ECSA)

39 617

South African Council for the Architectural Profession (SACAP)

7 910

South African Council of Property Valuers Profession (SACPVP)

2 307

South African Council for the Landscape Architectural Profession (SACLAP)

198

South African Council for Professional and Technical Surveyors (PLATO)

2 428

Total

57 863

Source: Statistics South Africa, the South African Reserve Bank and RICS (2012)

Table 3: International regulatory boards Local bodies Chartered Institute of Building (CIOB)

2013 registration figures 782

Royal Institution of Chartered Surveyors (RICS)

805

Total

1 587

Source: Statistics South Africa, the South African Reserve Bank and RICS (2012)

SOUTH AFRICAN PROPERTY REVIEW

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

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Online and in hand, these monthly publications are the official voice of the South African Property Owners Association

November 2014

With a South African property market value in excess of R250-billion, SAPOA members control in the region of 90% of South Africa’s private sector commercial land and building stock, and manage the majority of property funds listed on the JSE. Each member is a leading player and decision-maker in the commercial property arena – and they use the South African Property Review as an extension of the SAPOA website and information platforms.

These members – company chairmen, CEOs and MDs – often control massive companies and their associated budgets. As true decision-makers, some of the brightest and most talented people in the sector occupy senior roles in the SAPOA member organisations.

The South African Property Review is mailed directly to the association’s leading members, and is also available to the general public both internally and online via Issuu - the online version is an exact copy of its printed original and has on average over 3300 impressions a month, giving a monthly reader exposure of over 5000.

To date our online July and August 2014 issue hit rates have reached 7605 and 7139 impressions respectively, with over 400 solid reads of an average of nine minutes, and growing....

The true value of the online versions is that they get revisited over and over again and generate a liquid international exposure for your company, making the South African Property Review a ‘must include’ in your marketing plans.

February 2015

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

For advertising opportunities and rates contact Riëtte Stevens t: +27 (0)71 877 5520 e: sales@sapoa.org.za SOUTH AFRICAN PROPERTY REVIEW

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3:14 PM 2015/02/03 3:12

what’s on

March Region

Date

Event

Port Elizabeth

18 March 2015

Regional Meeting

Polokwane

19 March 2015

Council Meeting

TBC

24 March 2015

Research Breakfast

KwaZulu-Natal

25 March 2015

ICPP Training/Audit Risk

TBC

25 to 27 March 2015

ICPP Training

April Region

Date

Event

KwaZulu-Natal

7 April 2015

SPLUMA Breakfast Session

Port Elizabeth

10 April 2015

Heritage in Nelson Mandela Bay

Mpumalanga

10 April 2015

Lease Agreement Workshop

Port Elizabeth

15 April 2015

Regional Meeting

Gauteng

16 April 2015

SAPOA Human Resources/Board Meeting

May Region

Date

Event

Western Cape

6 May 2015

SANS 100400 Workshop

TBC

7 May 2015

SAPOA National Council

Gauteng

13 May 2015

Research Breakfast: Operating Costs Report

KwaZulu-Natal

19 to 21 May 2015

SAPOA Annual Convention

TBC

20 May 2015

British Council of Offices

KwaZulu-Natal

20 May 2015

SAPOA AGM at Convention

KwaZulu-Natal

20 May 2015

Board Meeting

Gauteng

26 May 2015

Legal Breakfast

Mpumalanga

28 May 2015

Networking Dinner

Gauteng

30 May 2015

PWC Half-Day Workshop

June Region

Date

Event

Gauteng

9 June 2015

Research Breakfast

KwaZulu-Natal

12 June 2015

Breakfast Presentation

TBC

13 June 2015

Protection of Personal Information

Port Elizabeth

17 June 2015

Regional Meeting

East London

23 to 25 June 2015

ICPP

KwaZulu-Natal

25 June 2015

Golf Day

USA

28 to 30 June 2015

BOMA International Conference

July Region

Date

Event

Gauteng

2 July 2015

Negotiation Skills Masterclass Programme

Mpumalanga

3 July 2015

Networking Event

60

SOUTH AFRICAN PROPERTY REVIEW

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what’s on

Events and dates subject to change.

July Region

Date

Event

Gauteng

7 July 2015

Introduction to Brokering Seminar

Port Elizabeth

15 July 2015

Regional Meeting

Gauteng

23 July 2015

Legal Breakfast

Gauteng

28 July 2015

Golf Day

KwaZulu-Natal

31 July 2015

Breakfast Presentation

August Region

Date

Event

Gauteng

4 August 2015

Research Breakfast

Gauteng

6 August 2015

SAPOA Audit Risk Meeting

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 the Brokering Seminar

Gauteng

20 August 2015

SAPOA HR Meeting

TBC

20 August 2015

SAPOA Board Meeting

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

TBC

17 and 18 September 2015

National Council Meeting SOUTH AFRICAN PROPERTY REVIEW

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what’s on September Region

Date

Event

TBC

17 September 2015

Networking Event

TBC

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

IPMP Training

Gauteng

29 September 2015

Legal Breakfast

KwaZulu-Natal

29 September 2015

SANS 10400 Workshop

KwaZulu-Natal

30 September 2015

SACSC Annual Congress

October Region

Date

Event

KwaZulu-Natal

1 and 2 October 2015

SACSC Annual Congress

Gauteng

1 and 2 October 2015

IPMP Training

Western Cape

6 to 8 October 2015

ICPP Training

Gauteng

8 October 2015

Legal Breakfast

Polokwane

15 October 2015

Golf Day

Gauteng

17 October 2015

Research Breakfast: Industrial Industry Report

TBC

22 October 2015

Audit Risk Meeting

KwaZulu-Natal

23 October 2015

Networking Breakfast

Gauteng

23 October 2015

Brokers Economic Update

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 HR Meeting

TBC

5 November 2015

SAPOA Board Meeting

TBC

6 November 2015

Legal Power Hour

TBC

10 November 2015

Research Breakfast

KwaZulu-Natal

11 November 2015

Gala Dinner

Gauteng

11 November 2015

Negotiation Skills Masterclass Programme

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

Polokwane

20 November 2015

Council Meeting

Gauteng

20 November 2015

Brokers and Legal Update

Western Cape

21 November 2015

Property Development Workshop

Mpumalanga

25 November 2015

Gala Dinner

Polokwane

26 November 2015

Gala Dinner

TBC

27 November 2015

PWC Half-Day Workshop

Port Elizabeth

29 November 2015

Gala Dinner

December Region Buffalo City

62

Date 3 December 2015

Event Developers’ Gala Dinner

SOUTH AFRICAN PROPERTY REVIEW

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fun & quirky

Dr Eitan Karol We explore the eccentric mind of Dr Eitan Karol, Chief Executive Officer of Louis Karol Architects, in 10 questions

By Candace King

H

e’s known for his outlandish outfits and idiosyncratic personality. Dr Eitan Karol, Chief Executive Officer of Louis Karol Architects, is an architect operating in sub-Saharan Africa, a historian of early 20th-century architecture, an author, a very frequent flyer, and a lover of tartan. He is indeed one of the property industry’s quirkiest characters.

Q What gets you going every morning?

The British Airways crew bringing me coffee.

Q What inspires you?

Good design, beauty and excellence.

Q The motto of your life would be?

Unlike Monty Python, who believe that “nobody expects the Spanish Inquisition”, I always do.

Q Passions and hobbies?

Architectural history, collecting etchings and Kundalini yoga.

Q Favourite destination in the world?

London: a city that has almost everything…

Q Who are your role models?

My father, Louis Karol, architect and chairman of our practice; and Kurt Jonas, who in spite of dying at 27 achieved so much in his life that I am able to write a book about him.

Q If you had to liken yourself to any animal, what would it be and why?

A woolly mammoth: large, furry and extinct!

Q Best thing that has

ever happened to you?

Being awarded a PhD.

Q Places you are dying to visit?

Sir Edwin Lutyens’s Governor-General’s House (now Rashtrapati Bhavan) in New Delhi; Leo van Klenze’s Walhalla in Regensburg; and the Frank Lloyd Wright buildings in Chicago.

Q What’s on your bucket list for 2015?

CLOCKWISE FROM TOP LEFT New 5-Star Green Star “As Built” Cape Town headquarters for Chevron by Louis Karol Architects; a multi-tier retail and P-grade office building The Point in Sea Point, Cape Town by Louis Karol Architects; Dr Eitan Karol, Chief Executive Officer of Louis Karol Architects (Photograph by Grant Gifford)

To finish writing my book on Norman Hanson and Kurt Jonas, two South African modern architects of the 1930s.

SOUTH AFRICAN PROPERTY REVIEW

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off the wall

Africa rising The African continent awaits the development of its tallest skyscraper, a colossal yet sleek structure that’s set to rival the size of the Shard in London and Johannesburg’s Carlton Centre

By Candace King

64

D

eveloping tall is in vogue, and the trend has now moved into Africa, with the development announcement of Al Noor Tower – Africa’s soon-to-be tallest skyscraper.

Earmarked to be erected in Casablanca, Morocco, Al Noor Tower will stand tall at 540 metres, trumping London’s Shard (310m) and Johannesburg’s Carlton Centre (223m), which is currently Africa’s tallest building.

To be constructed by Dubai developers Middle East Development LLC on a 25-hectare waterfront site in Casablanca’s Anfa Financial City district, the mixed-use 114-floor Al Noor Tower will boast a seven-star 200-suite luxury hotel and 2 000m² spa, art gallery, fine-dining restaurants and luxury boutiques, a business centre and conference hall, as well as offices.

With a budget estimated at around US$1billion, Al Noor Tower will comprise total floor space of 335 000m² and total development space of 375 000m². It will also boast an impressive 100m atrium, which will elevate into the centre of the tower.

Meaning “Tower of Light”, the skyscraper’s design is inspired by several elegant aspects and boasts great symbolism. The architects behind the tower, multinational architectural firm Valode & Pistre, highlight that the tower’s design has been influenced by the sweeping feel of a wedding dress, while its elongated shape depicts the nib of a fountain pen when viewed from the side. The 114 storeys are said to honour the same number of chapters in the Quran.

Most notably, the design of the tower celebrates all things African. The final height is an architectural design tribute to the 54 countries that make up the African continent.

Furthermore, the skyscraper’s façade will be imprinted with references to the 1 000 languages and dialects spoken in Africa.

Al Noor Tower forms part of a bigger development picture. The building will be incorporated into developer and Chairman of Middle East Development LLC Sheikh Tarek M Binladen’s grand vision of constructing cities across the world. The Al Noor City project aims to vastly increase widespread economic development, providing an impetus for economic integration, improved living standards, private commerce and regional social cohesion.

The construction of Al Noor Tower is set to commence in June 2015 and is expected to be completed in 2018.

Tower titbits Name Al Noor Tower Height 540m Floors 114 Total floor space 335 000m² Total development space 375 000m² Owner Sheikh Tarek M Binladen Developer Middle East Development LLC, Dubai Project manager and concept Amédée Santalo Architect Denis Valode, Valode & Pistre Architects

High-end offering • • • • • • •

Shopping vicinity Seven-star hotel and spa Business centre​ Conference hall Safe storage area Luxury offices Restaurants and coffee shops

SOUTH AFRICAN PROPERTY REVIEW

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people in profile

SOUTH AFRICAN PROPERTY REVIEW

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1

2

people in profile

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 Corné 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

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