South African Property Review May 2015 by SAPOA

South African Property Review

PROPERTY SOUTH AFRICAN

May 2015

REVIEW

The Annual SAPOA International Convention and Property Exhibition

The year that was Amelia Beattie reﬂects on her term as SAPOA President

South Africa’s playground What the City of Durban is doing for the country

Taking the High Street The City of Tshwane’s iconic land auction

The REAL in real estate May 2015

The Annual SAPOA International Convention and Property Exhibition

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PRO PERT I ES

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contents

May 2015

PROPERTY SOUTH AFRICAN

Abland

REVIEW

South African Property Review

PROPERTY SOUTH AFRICAN

May 2015

REVIEW

The Annual SAPOA International Convention and Property Exhibition

The year that was Amelia Beattie reﬂects on her term as SAPOA President

ON THE COVER SAPOA President Amelia Beattie reflects on her tenure and highlights the organisation’s achievements over the past year

South Africa’s playground What the City of Durban is doing for the country

Abreal

Taking the High Street The City of Tshwane’s iconic land auction

The REAL in real estate May 2015

The Annual SAPOA International Convention and Property Exhibition

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From the CEO From the Editor’s desk Industry news Education, training and development Legal update FICA in review Planning and development The winds of change Cover feature The year that was Theme leader Durban: the turnaround Africa uncovered Ghana Eye on the world Singapore Feature City of Tshwane takes the High Street MOU signing Collaborating amid the energy crisis Editorial The reality of electronic signatures Editorial Bailing out municipalities Editorial Elevating solutions Interview The business boys Feature Into Africa Feature Positive property outlook Flashback The Colonial Mutual Building, Durban Tax update What’s on Upcoming events Fun & quirky Eusebius McKaiser Off the wall Battle of the bold architects

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 Anne Schauffer, Andrew MacPherson, Eugenia Makgabo, Lekgolo Mayatula, Nthabiseng E More, Martin Ferguson Photographers Erik Forster, 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

F U N D

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

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from the CEO

Welcome to the SAPOA Convention With the Annual SAPOA International Convention and Property Exhibition now in its 47th year, SAPOA CEO Neil Gopal looks forward to the highlights that can be expected at this year’s Convention

Neil Gopal, SAPOA’s Chief Executive Officer

t’s that time again when the entire property industry meets under one roof for the highly anticipated SAPOA Convention. Regarded as South Africa’s premier property conference of the year, the Convention will once again present an exceptional opportunity for both local and international property professionals and practitioners to join in the discussion about the latest trends, investment opportunities and challenges. This year’s Convention will not only address the latest trends, challenges and prospects in the sector but will also highlight and showcase the sheer hard work, raw talent and sterling achievements that take place in the South African real estate industry on a daily basis. Hosted this year in South Africa’s playground, the sunny city of Durban, the passionate players of South Africa’s thriving and vibrant commercial and industrial property sector will once again come together at the industry’s most influential convention. With 2015’s theme angled

around “The REAL in Real Estate”, the Annual SAPOA International Convention and Property Exhibition will take place at the Durban International Convention Centre from 19 to 21 May 2015. SAPOA’s 46th International Convention and Property Exhibition not only made a difference but illustrated the power, passion and unconditional heart of the South African property industry. The 2015 Convention aims to extend this theme and showcase the true grit of the sector’s property, people, purpose and passion. As the Convention edges closer towards the big 5-0, the event continues to stay relevant with a fresh, newsworthy speaker and topic line-up. Apart from insightful and up-to-date content, the delegate attendance of the Convention continues to increase – a sign that the event is receiving more attention year-on-year. SAPOA was established in 1966 by the leading and large property investment organisations, to bring together all roleplayers in the commercial property field and to create a powerful platform for property investors. Today its members control about 90% of all commercial and combined portfolios in excess of R500-billion. The growth of the organisation is proof that the commercial and industrial property industry in South Africa is a strong one, and that it continues to illustrate the attractiveness of property as well as the development of our country. In the face of global economic uncertainty, the Convention will provide the perfect platform for commercial players to gain knowledge with regards to how best they can diversify and strengthen their portfolios. Once again, Master of Ceremonies Eusebius McKaiser will host the Convention’s proceedings, and 2015’s speaker line-up will delve into the latest trends and developments in the property arena. There is much anticipation with regards to the “Oscars of the property industry” – the

David Green, Chairperson: SAPOA Convention Committee

Innovative Excellence Awards will yet again recognise the country’s top buildings in terms of innovation, aesthetic appeal, sustainability, creativity, and game-changing architectural concepts. The property industry’s journalists will also be recognised via the annual Property Journalism Awards. The awards highlight outstanding contributions made not only to journalism but also to the commercial and industrial property sector in South Africa. The SAPOA Convention is a premier gathering place for industry leaders. We trust that the many issues raised, discussed and debated – and our well-informed speakers’ views and opinions – will be a great valueadd to your experience at this event. SAPOA would like to extend a warm hand of thanks to all its sponsors, and to the SAPOA Executive Board and staff who make this annual event a major success. We hope that you enjoy the Convention and the city of Durban, and we wish all delegates a delightful and insightful event. Neil Gopal, CEO

SOUTH AFRICAN PROPERTY REVIEW

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from the Editor’s desk

Durban doing it for SA The City of Durban is raising the bar for South Africa

ith South Africa’s playground in focus in this issue, the City of Durban is shining a beacon of opportunity for KwaZulu-Natal and proving to be a catalyst of economic growth for the country as a whole. Known for its picturesque beaches, warm and temperate climate and rich cultural diversity, Durban is home to the ninth-largest harbour in the world, the biggest shopping mall on the African continent and the globe’s fifth-largest aquarium. Because of its charm and significance, Durban was voted one of the New7Wonders Cities of the world. Chosen after hundreds of millions of votes were cast around the world, it was unveiled as one of the seven on 7 December 2014. It joins La Paz in Bolivia, Beirut in Lebanon, Havana in Cuba, Doha in Qatar, Vigan in the Philippines and Kuala Lumpur in Malaysia as one of the world’s top cities of wonder. This award highlights South Africa’s second New7Wonders claim, with Cape Town’s Table Mountain having previously been voted as a New7Wonders of Nature. According to Durban Tourism’s Phillip Sithole, this award illustrates Durban’s position as a global tourism destination. “The City of Durban is very friendly when it comes to the issues of the environment,

in as much as there is a huge growth when it comes to urbanisation. But the city has been able to deal with this growth,” he says. “It says that the City of Durban is the kind of place that is able to connect with tourists and people who are visiting. It’s a step forward. We are one of the best cities in the world when it comes to the welcoming and hosting of visitors.”

“This will give Durban greater prominence in the global sphere, particularly when it comes to tourism,” says the Durban Chamber of Commerce and Industry’s Andrew Layman. “We know that we need more international tourists to Durban and this will be of great assistance in that quest. The new seven wonders are not just cities, so I think people around the world are aware of the programme. It’s absolutely great news that Durban is one of the new seven wonder cities.” In other exciting Durban-related news, the city submitted a bid to host the 2022 Commonwealth Games which, if successful, will boost the South African economy by billions of rand. The committee for the Durban 2022 Commonwealth Games presented a 600page bid book in London, which outlines a plethora of information regarding the city’s ability to host the event as well as the significant economic impact that the event would have on the city. As part of the bid book, a 17-page economic-impact report stipulated all the benefits that Durban would experience should the bid be successful. Commissioned by the South African Sports Confederation and Olympic Committee, the economic impact report highlighted that the bid would: • Generate a total spend of R20-billion, translating into GDP growth of R11-billion; • Create 11 650 jobs; • Upskill a significant amount of the 10 000 volunteers, many of whom will be youth from rural areas; • Fast-track government projects such as housing development through the building of the athletes’ village and Durban’s public transport system; • Create a “feel-good” factor by replicating the carnival atmosphere of past Games; • Reduce crime; • Attract up to 1,4-million visitors; and • Create 4 400 paid positions directly linked to the showpiece, including 1 000 full-time employees of the organising committee. The host nation is set to be announced in New Zealand in September.

Aerial view of the Durban city centre and harbour

Candace King, Editor

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industry news

Constantia Park: the place for good, green business

Constantia Park in Roodepoort in the west of Johannesburg has been chosen as a Growthpoint Smartmove office park

ith excellent access and an invigorating park-like environment, Constantia Park in Roodepoort in the west of Johannesburg has been chosen as a Growthpoint Smartmove office park. Growthpoint will give you 100% of your first year’s rental in allowances when you move into one of its Smartmove buildings. This attractive office park offers 72 000m² of newly refurbished A-grade and B-grade office and retail space in 19 buildings.

As a compelling hub for leading business, Constantia Park is already home to an impressive array of blue-chip corporates and top business names. They include Aon, Afrisam, Lenmed, MTN, Primedia, Samsung, Sanlam and the South African Insurance Association. “Besides its prime location at the 14th Avenue off-ramp from the N1 highway and its exceptional frontage, the building offers an excellent array of benefits, facilities and

services,” says Scott Thorburn, Growthpoint’s Office Sector General Manager. “These add real value to the businesses and individuals who work at Constantia Park.” Value-adds include a Virgin Active gym and Protea Hotel within the park, as well as restaurants and various personal-service offerings. There’s excellent security and the convenience of an on-site management team. Constantia Park goes beyond offering beautifully landscaped surrounds with a cascading waterway that is home to an array of bird species and fish. It is also green in other ways: The park features energy-efficient lighting and air conditioning, which helps keep its occupation costs lower and ensure it’s respectful of the environment. This popular park offers business various size and rentals for quality workspace that supports a healthier, more energy-efficient, cost-efficient and productive working environment, in a landmark, highly visible location. +27 (0)11 944 6200, Growthpoint.co.za

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industry news

How green do you have to be to qualify for government’s proposed new energy-efficiency incentives?

iven the threat of both an energy and water crisis, President Jacob Zuma has encouraged the private sector to “go green”, with government now looking to increase the energy efficiency incentives on offer. But how green do you have to go to be considered officially green, and how will this be measured and rated? “Support for green initiatives was also stated in the budget speech, but I believe that businesses still find themselves in an uncertain position as to what it is they’re supposed to do,” says Brian Wilkinson, Chief Executive Officer of the Green Building Council of South Africa (GBCSA). Wilkinson adds: “The possibility of incentives

for greater efficiency will certainly encourage more green buildings initiatives. But, there will need to be a clear measure of efficiencies for government to confidently and consistently award these incentives. Businesses especially will now more than ever be looking for solutions to bring about reductions in operation and facilities management costs in light of, for example, Eskom’s recent announcement that they would be appealing for an additional 9,5% increase on electricity costs over and above the already approved 12%. Sustainable solutions are desperately sought. “ Green has become a new buzz word with many

businesses and service providers claiming to be sustainable in their offering and operations. This focus on green building has demonstrated the need for a rigorous, standardised system that rates just how green projects are with tangible results to back up these claims.” Fortunately, this system is already in place with the GBCSA’s Green Star SA rating tools. “With these tools we can not only guarantee that businesses live up to their green building claims, but also assist with their endeavours to minimise their carbon footprint,” says Wilkinson. “With happier, healthier employees and existing of evidence significantly reduced operations and maintenance costs at greener buildings, the benefits of a Green Star SA rating are extensive.” Building owners looking to achieve a Green Star SA rating can, together with their green building consultant, submit the necessary documentation to the GBCSA. “Independent assessors are employed to evaluate submissions and allocate points based on the green measures that have been implemented. Certification is awarded for 4-Star, 5-Star or 6-Star Green Star SA ratings,” Wilkinson explains. Office, retail, multi-unit residential, public and education buildings, as well as existing commercial buildings are all catered for with rating tools designed specifically for the various projects. The GBCSA has also recently introduced a Green Star SA Interiors tool which focuses primarily on efficient maintenance and operations of interior fit-outs and caters for a broad range of tenancies, including office, retail and hospitality projects. “With this

tool the tenants have all the power, allowing each tenancy to have their own unique environmental design initiatives fairly and independently benchmarked. It rewards healthy, productive places to work which are less costly to operate and maintain and have a reduced environmental footprint,” he says. For existing buildings, the Green Star SA – Existing Building Performance (EBP) tool covers the same environmental categories addressed in the Green Star SA new building tools but also places focus on the efficient operations and management of the building. This rating is only valid for a period of three years, to ensure the building is continually well operated and maintained and energy and water monitoring, management policies and plans are all required. Wilkinson advises the most effective and simple starting point to check the performance of your building is the GBCSA’s Energy Water Performance (EWP) mini-tool. This tool benchmarks an office building’s energy and water consumption against an industry mean. So, if your asset compares poorly, you can be sure that investing in its electricity and water efficiency will bring worthwhile benefits to the building’s bottom line, attractiveness, and sustainability, and the environment too. While the EWP mini-tool makes up 40% of the EBP, it is also available as a separate certification. “Green Star SA rating tools are comparable to those of other green building councils around the world, making them a reliable benchmark, not only across South Africa, but internationally too,” he notes. +27 (0)86 104 2272, Gbcsa.org.za

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industry news

South African property returns slow

eading provider of investment decision support tools worldwide MSCI Inc has released the IPD South Africa Annual Property Index, which shows that the South African investment property sector delivered an ungeared total return of 12,9% in 2014 – down from 15,9% in 2013. Income return was steady at 8,7% but capital growth slowed to four percent from 6,8% the year before, reflecting a more cautious approach among valuers. The latest IPD South Africa Property Index, sponsored by Nedbank Property Finance, is based on asset level data collected from a sample of 1 726 properties covering R264-billion capital value at the end of December 2014. This represents about twothirds of professionally managed investment property in South Africa. “The latest IPD South Africa Annual Property Index reveals modest performance in 2014, with industrial property the best performer,” says Stan Garrun, Executive Director of MSCI. “Overall, the results for property are unspectacular but fundamentals, particularly rental growth and occupancies, were stronger, and costs were lower in 2014 than they have been for some time. The headline figures are broadly in line with expectations, given that the commercial property sector is still in recovery mode, with the prospect of absorbing excess market supply in a low-growth environment. While headwinds in the form of constrained electricity supply and rising interest rates remain, analysts expect economic growth to improve in 2015 on the back of a more supportive global economic environment.”

Direct property performed in line with its reputation as a hybrid asset class, delivering a total return between the MSCI SA Equities Index and bond returns on a three-year view, at a lower volatility than both the other asset classes. Property values were buoyed by a combination of a stronger long bond yield and aggressive asset and property management. The focus on active management resulted in an impressive net income growth of 8,1%. This was driven by a lower vacancy rate, a basic rental growth of 6,4% and declining operating costs when expressed as a percentage of gross rentals. Capital value growth has declined in all sectors, though it is still positive at four percent on aggregate. This slower growth reverses the bullish view of the year before, perhaps reflecting a fully priced market, especially at the top end. At a sector level, industrial property was the top performing sector during the year with a total return of 14,1%, outperforming retail at 13,3%. The office sector continued to underperform in a difficult market but still managed a respectable 12,1% total return courtesy of a 9,5% income return. The vacancy rate of all three sectors improved during the year but excess supply in specific segments continued to weigh on base rental growth. At a property segment level, the top performer for 2014 was small regional centres at 16,2%, driven by improved occupancy and a stronger yield. Non-CBD offices and light manufacturing property counted among the worst performing

Stan Garrun, Executive Director, MSCI

segments for the year. “As major financiers in the South African commercial property industry, we are encouraged by the overall performance delivered by the investment property sector during 2014 as measured by the IPD index,” says Robin Lockhart-Ross, Managing Executive of Nedbank Property Finance. “These results must be seen in the context of the challenging economic backdrop and low growth environment, which has impacted adversely on the annual capital growth shown across all segments, although net income performance has held up well. The returns generated by the sector are an affirmation of the attractiveness of commercial property as an investment asset class, as well as an indication of the professional nature with which the South African property industry is managed, yielding positive and sustainable returns for investors.” +27 (0)11 656 2115, Msci.com

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www.impendulo.co.za

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industry news

CTICC East Extension

Commercial property investments decelerate as property owners hold on to value

he latest research from JLL South Africa shows that commercial property investment activity in South Africa slowed in 2014, with the overriding contributing factor being the low supply of investment properties. Covering the years 2011 to 2014, with specific reference to the office, industrial and retail sectors, the report focuses primarily on major transactions. According to the report, the total purchase of office, industrial and retail properties by listed Real Estate Investment Trusts (REITs) declined by 43,7% to an estimated R13,8-billion. In line with the overall decline in transaction value,

the total number of investment transactions declined from 148 to 112. “The year 2014 was a prime example of unfavourable economic conditions,” says Zandile Makhoba, Head of Research: South Africa at JLL. “GDP growth slowed and the economy saw credit rating downgrades, currency weakness and rising inflation, all working against investor confidence in the economy. Given these conditions, it is not surprising that commercial property investment activity slowed. It is important to note that more than a shortage of buyers, the slowdown was mainly as a result of a decline in willing sellers of commercial

Blue-chips meet at 138 West Street

ith its prime location in the Sandton central business hub, the A-grade offices of 138 West Street have been proclaimed the latest in Growthpoint’s new series of Smartmove buildings. Growthpoint Properties owns the country’s premium office portfolio. Its office properties are designed to enable business in South Africa with top-quality work spaces, excellent service and exciting innovations that actually make it easier for companies to do business. Growthpoint will give you 100% of your first year’s rental in allowances when you move into one of its Smartmove buildings. In the case of the well-let 10 035m² offices at 138 West Street, this applies specifically to two office spaces of 858m² and 905m²,

on the fourth and fifth floors respectively. Bonolo Gueye of Growthpoint’s office sector describes 138 West Street as one of Sandton’s more cloistered office gems. “It is a relatively low-rise property nestled confidently among prestigious giants such as Sandton City and Nelson Mandela Square, Alexander Forbes, Radisson Blu, Michelangelo Towers, Bank of America and Intelsat,” she explains. “138 West Street is designed to meet the needs of modern business. The building features classic finishes, a blue-chip tenant mix that includes Thomson Reuters and Merrill Lynch, as well as stand-by power, all in an intimate multitenant environment.” Close to the major arterial of Rivonia Road,

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industry news properties in the prevailing climate. Holding cash is a disinvestment in a highinflation and weak-currency environment, and with fewer options for alternative investments, investors are preferring to hold the value in property assets.” Key outtakes from the report include the fact that the industrial sector opposed the general downward trend in investment with a notable year-on-year increase, even when correcting for the large sale between Macsteel and Redefine. They year also saw little cross-border investment in the commercial property market in comparison to previous years. Although total investment value declined, the total value of GLA invested in increased during the year. The overall investment value declined to R8 524/m² in 2014 from R16 145/m² in 2013. Again, the industrial sector countered the trend by showing an improvement in this regard,

and economic conditions and new developments might slow the pace of investment activity in 2015. However, the trend is not likely to be balanced across the sectors. “Looking ahead to 2015, the question is which property owners are most likely to be more willing to let go of assets in the current climate,” says Makhoba. “The bottom line is alternative investment options remain few and far between for the longerterm investor. From an economic growth perspective, there is little to suggest that conditions would be much more improved from 2014: the treasury has forecast a muted GDP growth of two percent for the 2015/2016 fiscal year, we are battling to prevent further credit downgrades, the currency continues to struggle, and the turn in oil prices suggests inflation will remain a concern for economic activity and investment returns.” +27 (0)11 507 2200, Jll.co.za

the high-quality offices at 138 West Street are across from the Sandton Gautrain Station. This means they also benefit from bus and taxi public transport. The office block is proximate to many of the new corporate offices recently completed or under development along the prime stretch of Rivonia Road, such as EY, Weber Wenzel and Discovery’s new headquarters. “Being located in the centre of South Africa’s leading financial, legal, accounting and consulting firms is a big plus for 138 West

Street,” says Gueye. “This node is extremely popular with multinationals, especially because it has excellent access from OR Tambo International airport and a wide range of hotel accommodation on its doorstep.” These top-notch offices also place their occupants in the centre of all the amenities a business could require, and everything necessary to meet the daily needs of staff, from banking and conferencing to health clubs, shopping and restaurants. +27 (0)11 944 6200, Growthpoint.co.za

industry news

The University of Cape Town presents the following Property Valuation CPD courses. These courses are registered with ECSA for CPD points, and may be used to claim for SACPVP CET credits.

Continuing Professional Development Courses Accounts Method of Property Valuation Dates: 18 – 19 June 2015 Cost: R5 000 Accounts Method of Property Valuation Presented in Johannesburg Dates: 25 – 26 June 2015 Cost: R6 000 Residual Method of Property Valuation Dates: 9 – 10 July 2015 Cost: R5 000 Commercial Property Valuation Dates: 2 – 4 September 2015 Cost: R7 500 For further information and registration forms, please visit the website: www.cpd.uct. ac.za/2015 or email: ebe-cpd@uct.ac.za

138 West Street

122696 www.ayandambanga.co.za

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industry news

JLL Facilities Management expands into sub-Saharan Africa

LL recently announced that the firm is expanding its sub-Saharan Africa Integrated Facilities Management (IFM) service across a broader African geography. Stan Frank will focus on extending the global JLL brand and IFM service offering, and will partner with Mark Bradford, Chairman of JLL’s regional sub-Saharan Africa operation, to serve the firm’s current and prospective client base, as well as integrating with JLL’s EMEA IFM team. The expansion of services in sub-Saharan Africa through JLL’s Facilities Management offering is an excellent opportunity to provide clients with integrated services across the real estate asset classes. JLL has identified subSaharan Africa as a priority region for longterm growth, and there’s been an exceptionally positive response from global clients to their regional offering. “Many of JLL’s international clients as well as local clients are asking us for stronger IFM support in Africa,” says Magnus Akerberg, Managing Director: EMEA IFM at JLL.

“The sub-Saharan Africa market is growing and is very attractive for JLL to support current and new clients in their IFM needs. We believe JLL’s combined real estate service offering will be very interesting to our clients.” Frank will assist clients in a suite of IFM services, including global trends, knowledge sharing, integrated facility services, critical environment management, engineering services, energy and sustainability services, and sourcing and supply chain support. Frank has more than 30 years of experience and is one of the original pioneers of IFM in South Africa. He has established many of the foremost property and facilities management companies in the Middle East, Africa and locally. He has an intimate understanding of the IFM value chain and knowledge of the clients’ core operations across various sectors in the market. “The hiring of Stan Frank to lead our facilities management sub-Saharan Africa operations reinforces our presence in and commitment to Africa,” says Akerberg.

Stan Frank

“With the opening of this office we now have a presence in every region around the world. We are a truly a global facilities management company operating at a strategic level, which enables us to stay at the forefront of industry trends and international best practices. Our objective for sub-Saharan Africa is to support our multinational client base, forge key relationships with local businesses and establish an industry benchmark. Our approach and positioning is quite unique to the local market, where we effectively turn the local model on its head.” +27 (0)11 507 2200, Jll.co.za

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SOP

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011 486 3315 www.akweni.co.za

REGISTERED WITH:

Congratulations

Akweni Project Management For winning the South African Professional Services Award (SAPSA) 2014 PM/QS Firm of the year Award in November 2014

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We choose to go to the moon not because it is easy, but because it is hard. John F Kennedy | Rice University | 1962

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advertorial

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laus-Dieter Kaempfer is the new Head of Barclays Africa’s Commercial Property Finance division. He is a highly experienced and accomplished banking professional with more than 30 years of experience in corporate banking, strategy, mergers and acquisitions, and equity investments in developed and emerging markets, particularly in Africa. Our products range from basic property finance facilities to complex financial structures. Our team of highly skilled specialists holds a wealth of knowledge and expertise in all facets of commercial property financing. In addition, our dynamic leadership team is able to respond to the everchanging needs of a modern market. We are also well represented across the continent, with established banking operations in Botswana, Zambia, Zimbabwe, Kenya, Ghana, Tanzania, Uganda, Mauritius,

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education, training and development

SAPOA launches new Management Development Programmes T

Martin Ferguson is SAPOA’s HR, Education, Training and Development Manager

he SAPOA Educational Programmes are developed to cater for the commercial property industry, from basic entry-level programmes to executive programmes. SAPOA, in partnership with Wits University, has developed the Management Development in Commercial Property and Senior Managers Development in Property programmes. See below more information about these programmes.

1 Management Development in Commercial Property (NQF 7) The aims of this programme are: ●● To broaden the perspective of directors, executives and managers whose previous experience has mainly been in a specialist area by providing knowledge, skills, and techniques that will lead to more professional management. ●● To provide delegates with the ability to make sound decisions. ●● To increase the effectiveness of working with diversity in the workplace. ●● To foster awareness of economic, political and social factors affecting business management. The course content includes: ●● Module 1: Human Resources Management, Industrial Relations and Group Dynamics ●● Module 2: Economics for Property Management ●● Module 3: Theory of Accounting and Finance ●● Module 4: Operations Management Practice in the Property Sector

●● Module 5: Theory and Practice of Strategic Management ●● Module 6: Marketing Theory and Practice for Property Sector

●● To update skills and knowledge of existing senior managers with current best practices.

Upon the completion of this course, participants should be able to: ●● Demonstrate skills in human relations management and labour relations practices. ●● Understand the theory and practice of microand macro-economics. ●● Show skills in the principles of finance and accounting. ●● Demonstrate good judgement in the practice of operations management. ●● Show competence in using the basic tools of strategic analysis and planning. ●● Understand elements of marketing theory and practice. ●● Demonstrate competence in project management.

The course content consists of three major themes and a project: ●● Strategy and Environment ●● Management of Resources ●● Management of People ●● Property Management Project – Assignment

The target audience will include experienced business managers, upcoming managers with a B-degree or similar qualification, or individuals who have already been in a middle-management position for five years but may not have a formal qualification or professionals from nonmanagement disciplines wishing to gain exposure to managerial principles.

2 Senior Managers Development in Property (NQF 8) The aim of this programme is: ●● To impart the management skills necessary for senior managers to develop business skills that support their new senior role in the organisation, or

Upon the completion of the course, participants should be able to: ●● Demonstrate an ability to link strategic action with aspects of the business environment. ●● Develop organisational performance measures. ●● Analyse the effective management of business resources using operations and project management techniques. ●● Apply principles of people management through group dynamics, HR management and self-management. The target audience will include middle managers earmarked for senior management as part of a leadership career path and newly appointed senior managers. For more information, please contact: Martin Ferguson Human Resources, Education, Training and Development Manager t: +27 (0)11 883 0679 e-mail: martin.ferguson@sapoa.org.za

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legal update

FICA in review Placing the prioritisation of FICA compliance in the spotlight

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

n 2001, the South African government introduced the Financial Intelligence Centre Act (FICA) in order to combat money laundering. FICA complemented already existing applicable legislation, which also focuses on anti-money laundering and the financing of terrorism. Such applicable legislation includes the Prevention of Organised Crime Act, 1998 (POCA), the Protection of Constitutional Democracy against Terrorism and Related Activities Act, 2004 and the Proceeds of Crime Act, 1996 among others. Money laundering affects corporates on both macro and micro levels. It has been defined by the South African Law Commission as the following: “The manipulation of illegally acquired wealth in order to obscure its true source or nature … [which] is achieved by performing a number of transactions with the proceeds of criminal activities that, if successful, will leave the illegally derived proceeds appearing as a product of legitimate investments or transactions.” There is a duty placed on accountable institutions to comply with FICA, or in the event of non-compliance, face hefty penalties. Most entities in the Commercial Property Industry will be affected by FICA. There can no longer be disregard for FICA, although it is viewed by some as a piece of legislation that serves no purpose, is cumbersome and restricts one from doing any ordinary transaction without the associated duty to comply. Money laundering is a real problem in South Africa and FICA intends to assist in curbing this issue.

It has become apparent in recent times that investigations have taken place to ensure that measures are put in place by relevant industries to assist with the prevention of money laundering. This was evidenced by the South African Reserve Bank after it fined the country’s four largest banks a collective R125-million for failing to implement adequate antimoney-laundering controls. It’s been said there’s a looming audit that will take place in South Africa in 2016. This would mean the Financial Intelligence Centre will robustly start auditing companies. It is therefore advisable for the property industry to ensure their house is in order. SAPOA has prioritised the dissemination of knowledge around FICA, given the fact it directly impacts members. A workshop was held at Norton Rose Fulbright and a presentation was done by Marelise van der Westhuizen and Brent Botha regarding the implications of FICA on the property industry. Further, a SAPOA FICA manual intended to assist with defining the roles and duties of accountable institutions and clients, and discuss exemptions for accountable institutions and policy formulation (among other things) has been compiled. The below salient aspects emanated from the workshop. There is a process or form in which money laundering takes place, and it involves the below three-step method.

Three-step moneylaundering process ●● Placement – the initial stage in the laundering process where money first enters the retail economy or the financial system.

●● Layering – illicit proceeds are separated from their source. Complex layers of financial transactions are created to disguise the audit trail. ●● Integration – the final macro stage where laundered proceeds are placed back into the economy in such a way as to make them appear as legitimate earnings.

Acts regarded as money laundering POCA adequately defines what acts would be regarded as money laundering. Such acts are described as: Money Laundering – Any person who knows or ought reasonably to have known that property is or forms part of the proceeds of unlawful activities and – a) Enters into any agreement or engages in any arrangement or transaction with anyone in connection with that property, whether such agreement, arrangement or transaction is legally enforceable or not; or b) performs any other act in connection with such property, whether it is performed independently or in concert with any other person, which has or is likely to have the effect of – ●● concealing or disguising the nature, source, location, disposition or movement of the said property or the ownership thereof or any interest that anyone may have in respect thereof; or ●● enabling or assisting any person who has committed or commits an offence, whether in the Republic or elsewhere – i) to avoid prosecution; or ii) to remove or diminish

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legal update any property acquired directly, or indirectly, as a result of the commission of an offence, shall be guilty of an offence. Section 6 of POCA further states the following: Acquisition, possession or use of proceeds of unlawful activities, any person who: ●● acquires; ●● uses; or ●● has possession of property and who knows or ought reasonably to have known that it is or forms part of the proceeds of unlawful activities of another person, shall be guilty of an offence.

Estate agents defined as accountable institutions FICA defines “estate agents” who are regarded as accountable institutions with reference to the Estate Agency Affairs Act, 1976, as follows: ●● Any person who for the acquisition of gain on his own account or in partnership, in any manner holds himself out as a person who, or directly or indirectly advertises that he, on the instructions of or on behalf of any other person, sells or purchases or publicly exhibits for sale immovable property or any business undertaking or negotiates in connection therewith or canvasses or undertakes or offers to canvas a seller or purchaser therefor; or ●● lets or hires or publicly exhibits for hire immovable property or any business undertaking or negotiates in connection therewith or canvasses or undertakes or offers to canvass a lessee or lessor therefor; or ●● collects or receives any moneys payable on account of a lease of immovable property or any business undertaking; or ●● renders any such other service as the Minister

on the recommendation of the board may specify from time to time by notice in the Gazette. In terms of sections 42 and 43 of FICA, the Agency is required to formulate and implement internal rules (Rules) and to make them available to employees involved in transactions to which FICA applies. These Rules have been formulated to comply with these provisions.

Cash reporting duties applicable to accountable institutions Accountable Institutions have certain reporting duties in accordance with Section 28 and 28A of FICA, and are required to report to the Financial Intelligence Centre where: ●● The accountable institution pays or receives an amount in cash which exceeds R24 999,99 ●● The accountable institution has, in its possession or under its control, property belonging to an entity who has committed or facilitated the commission of an offence listed in the Protection of Constitutional Democracy against Terrorist and Related Activities Act ●● The accountable institution has, in its possession or under its control, property belonging to an entity listed in section 25 of the Protection of Constitutional Democracy against Terrorist and Related Activities Act The above-mentioned provision is only applicable to accountable institutions and no element of suspicion is required to be reported.

Reporting obligations Section 29 of FICA imposes reporting obligations to persons defined as follows: ●● Any person who carries on a business; or ●● Manages or is in charge of a business; or

●● Is employed by a business; and ●● Who knows or ought reasonably to have known or suspected certain facts must report the grounds for the knowledge or suspicion and the prescribed particulars regarding the transaction to Financial Intelligence Centre within a prescribed period after he or she acquired the knowledge or formed the suspicion. Facts may relate to the following: ●● Business has received is about to receive proceeds of unlawful activities. ●● A transaction or series of transactions to which the business is a party: ◆◆ Has facilitated or is likely to facilitate the transfer of the proceeds of unlawful activities or property which is connected to an offence relating to the financing of terrorist and related activities ◆◆ Has no apparent business or lawful purpose ◆◆ Is conducted to avoid giving rise to a reporting duty under FICA ◆◆ May be relevant to the investigation of an evasion or attempted evasion of a duty to pay any tax, duty or levy imposed by legislation administered by the Commissioner for the South African Revenue Services. ●● The business has been used or is about to be used in any way for money laundering purposes.

Offences and defences An offence in accordance with FICA is regarded as the following: ●● A person who fails to report a suspicious and unusual transaction timeously is guilty of an offence ●● The offence can be committed negligently ●● Penalty is R10 000 000 or imprisonment of up to 15 years

There are certain defences available if a person who is an employee, director or trustee of, or a partner in, an accountable institution is charged with committing an offence. The defences are available in the event that he/she: (a) reported the matter to the person charged with the responsibility of ensuring compliance by the accountable institution with its duties under FICA; or b) reported the matter to his or her superior, if any, if i) the accountable institution had not appointed such a person or established rules; or ii) the accountable institution had not complied with its obligations in section 42(3) in respect of that person; and iii) the internal rules were not applicable to that person. Compliance with FICA should be prioritised by members given the fact that it is a rule-based piece of legislation and implementation cannot be ignored. The customised FICA Manual and Rules Precedent are available on the SAPOA website to assist in this regard.

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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planning and development

The winds of change Change is inevitable. The question is, will it be a change that we are proud of?

Lekgolo Mayatula is SAPOA’s Planning and Development Manager

outh Africa’s young democracy is definitely going through a wave of change. This time around, it is not a change that brings about the spirit of euphoria such as that experienced in 1994 or 2010, when as a country and as a nation we were conscious of the positive power of the collective. The continent of Africa was taking a giant step in the right direction but the underlying current tells a different story. The manifestation of that different story is evident everywhere on the continent: a story of intolerance, injustice, the senseless loss of human life, the attacks on children and the elderly, discrimination, social injustice, the abuse of natural resources, etc. In South Africa this is evident through the recent spate of xenophobic attacks, the defacing of statues, the challenges faced within the educational system, the health system, law enforcement, the provision and distribution of resources such as water, land and energy, the delivery of services such as adequate sanitation, infrastructure development and maintenance, the mismanagement of public funds, etc. The list is overwhelming and it makes one want to bury one’s head in the sand and pretend all of it will blow over. Fortunately, as a country, we have a livedreality reference point that stands out as a beacon of light – our first step towards transformation. The journey we took with our eyes wide open laid a foundation for our future – a future that is inclusive, a future filled with hope, a future that elevates the collective as a nation. The road to the future is not easy and even with guiding pillars such as the Constitution, the Bill of Rights, the truth and reconciliation process, and the various institutions and organisations that hold government and society accountable, as individuals we too need

to play our part. As part of its developmental role, the state has embarked on a number of initiatives that aim to nurture change at a fundamental level. This is an opportunity for us as individuals and as an industry to respond in a constructive manner. Some of these initiatives are summarised below. The Department of Cooperative Governance and Traditional Affairs has put in place a progamme called Back to Basics: Serving Our Communities Better. The initiative aims to encourage meaningful and direct interaction between South African citizens and the institutions of the state. The department’s goal is to improve the functioning of municipalities to better serve communities by getting the basics right. The department’s key performance targets for this initiative include the creating of decent living conditions, ensuring good governance, encouraging public participation, and improving institutional capacity. A part of addressing the spatial inequality within the county, the department of National Treasury has put in place an initiative called the Neighbourhood Development Programme. This initiative derives from the Urban Network Strategy and provides technical assistance and grant funding to municipalities for capital projects that will leverage further public and private sector investment in strategic locations around the country. The department of Rural Development and Land Reform is in the process of changing the regulatory process of land use and spatial planning through the imminent implementation of the Spatial Land Use Management Act – a daunting task indeed, with anticipated challenges, yet one that is necessary in order for the country to reach its ultimate goal. The various municipalities across the country are exploring opportunities that will allow them to efficiently and effectively utilise their influence and resources for the benefit of their citizens. For example, the city of Tshwane is in the final stages of developing its Development Investment Incentives Policy, which aims to attract investment within its municipal area through collaboration with the private sector, in

particular through infrastructure development and maintenance. Municipalities are also determined to deal head-on with the impact of development on the environment, and there are a number of initiatives taking place – for example, the waste recycling projects in areas such as the city of Cape Town, Buffalo City (King Williams Town) and the city of Jo’burg, with many more still to follow suit. One of the major events due to take place in the month of October is the Eco-Mobility Festival. This will take place in Sandton and will be hosted by the city of Johannesburg. The festival aims to highlight the need to relook how we design our cities and to address the disconnect between the human interaction with the various spaces and transportation. Another key focal point for the country is the management and development of infrastructure. This priority is articulated in the National Infrastructure Plan. Although adopted in 2012, the plan aims to transform the South African economic landscape while simultaneously creating jobs, strengthening basic service delivery and supporting the integration of African economies. This plan identifies 645 infrastructure projects across the country. Of these, 18 strategic integrated projects (SIPS) have been developed. The SIPS are categorised as follows: geographic SIPS, energy SIPS, spatial SIPS, social infrastructure SIPS, knowledge SIPS, regional SIPS, and water and sanitation SIPS. In order to fast-track the regulatory decision-making process and speed up the implementation of the Strategic Infrastructure Projects, the Infrastructure Development Act No. 23 of 2014 was enacted. The initiatives mentioned above are some of the levers highlighting our resilience as a country. We are destined for great achievements. The journey that we as a country are currently embarking on requires a collective and bold mind-set change to steer us into a future worth celebrating. As the property industry, our footprint on the South African economy is instantly visible and has a ripple effects that cannot be ignored. It is imperative that when we focus on development we do this in a sustainable and collaborative manner, so that our effects are wide-reaching and beneficial to all.

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interview

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The year that was After a year of relentless dedication, Amelia Beattie reflects on her term as SAPOA’s President By Candace King

met with Amelia Beattie to discuss her tenure as SAPOA President. Sitting in the Nguni meeting room at the STANLIB offices with her, I couldn’t believe that a year had passed since SAPOA’s Immediate Past President Estienne de Klerk handed over the reins to her at the 46th Annual SAPOA International Convention and Property Exhibition in Cape Town. During her term, she introduced the colossal theme of the REAL in real estate – a topic that has been adopted for the 47th Annual SAPOA International Convention and Property Exhibition in Durban. Beattie’s achievements for the organisation have been angled around the REAL acronym – the crucial pillars of relationships, education, advocacy and leadership. “A major highlight is that my presidency theme ties in with the SAPOA Convention theme for 2015 – this is so that we didn’t lose traction of the things that needed to be done,” she says.

Relationships Beattie notes that during her presidency, SAPOA built up key relationships with other industry bodies, including the Royal Institution of Chartered Surveyors, the South African Planning Institute and the South African Local Government Association. She adds that SAPOA’s relationship with the Department of Public Works (DPW) is crucial. “With this relationship, SAPOA is able to communicate with its members on what new legislation means and helps them benefit,” she says. “SAPOA is able to act as a mouthpiece for the industry on what can be done with the DPW. “SAPOA also worked closely with the Property Sector Charter Council with regards to the alignment with the new BEE Codes – this has assisted both organisations in their endeavours to achieve transformation in the property industry.” Beattie says that many events that SAPOA hosts also form an integral part of the forging

of relationships. “I personally believe that relationships are key to the industry as well as to any organisation,” she says. “They allow you to achieve things – they’re the glue that binds and creates magic.” A prime relationship that SAPOA has forged, says Beattie, is with power utility Eskom. “The power crisis is at the top of the agenda for most property owners and all of South Africa,” she says. “We have engaged with Eskom on various levels in order to come up with solutions that will assist property owners. The power issue is a big feature and concern that we must stay close to. We need to continue to look for ways to create a more sustainable environment by becoming more energy-efficient and by adopting alternative energy sources. We need to focus on this as it can have unintended consequences for the industry at large.”

“It was the great Nelson Mandela who said, ‘Education is the most powerful weapon that you can use to change the world.’ I hold the belief that in the property industry we can use education to deliver real transformation and change”

Education “It was the great Nelson Mandela who said, ‘Education is the most powerful weapon that you can use to change the world.’ I hold the belief that in the property industry we can use education to deliver real transformation and change,” says Beattie. She highlights that SAPOA undertook skills-gap-analysis research in order to determine the capacity and development needs relating to skills throughout the industry. “The results of the research will be announced at this year’s Convention – it serves as an important milestone that allows us to see what needs to be done and what skills need to be put into place,” she says. “Furthermore, the SAPOA Bursary Fund continues to be integral part of the organisation. In light of this, I hold the view that various industry initiatives should join forces in terms of their respective bursary funds and schemes in order to minimise the burdens and administration and maximise the benefits.” SOUTH AFRICAN PROPERTY REVIEW

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Beattie explains that SAPOA continues to provide the industry with various platforms of training and education that are of a very high standard. “The quality of learning is good for the industry as it provides real-time case studies that contribute towards the improvement of output,” she says. “The industry requires innovation and these education programmes stimulate innovative thinking, which is crucial for the creation and development of answers in trying micro- and macroeconomic circumstances.”

Advocacy

On the recent employment of a town planner at SAPOA, Beattie indicates this appointment brings the organisation closer

“Last year the industry was bombarded with significant challenges, especially in terms of economic, legislative and regulatory changes,” says Beattie. “This requires focused and dedicated lobbying of various levels of government in order to make a difference in policy-making and in the unblocking of unnecessary hurdles.” She says that SAPOA’s Meet the Mayor campaign was a big success in Cape Town, Johannesburg and East London, adding that these events create awareness within local government about the property industry’s importance and its players. “Important relationships are formed and opportunities are unlocked via this campaign,” says Beattie. “SAPOA has also successfully partnered with the City of Tshwane’s first property investor summit, which saw the auction of several prime Tshwane land portions. This highlights the unlocking of real estate for both the public and private sector, as well as the growth and development for the City of Tshwane,” she adds. On the recent employment of a town planner at SAPOA, Beattie indicates this appointment brings the organisation closer to the issues pertaining to the planning and development sphere – the more pertinent issues that concern SAPOA members the most.

to the issues pertaining to the Leadership planning and development sphere – the more pertinent issues that concern SAPOA members the most

“The leadership of SAPOA provides the industry with invaluable service, knowledge and information,” explains Beattie. SAPOA continued to provide thought leadership in terms of research, she notes. For example, the study of the eThekwini Municipality provides insight for SAPOA’s Durban members. “It will become an annual report, covering the whole of South Africa,” she says.

“We also established the SAPOA Africa Focus Committee as we believe the collaboration of SAPOA members across the African continent is key,” she adds.

Real reflection “This year taught me about the richness of the property industry that we operate in, and the quality and depth of the people who work in it,” says Beattie. “During good times we celebrate with each other, and during hard times we stand together to create solutions.”

“We also established the SAPOA Africa Focus Committee as we believe the collaboration of SAPOA members across the African continent is key” She explains that she received remarkable support throughout her presidency. “STANLIB provided me with exceptional support during my year as SAPOA President and will continue to be involved in property as it forms part of the group’s key pillars,” she says. “At SAPOA, the SAPOA Board plays a significant role in directing the organisation into the future – I thank the Board for its guidance.” Looking ahead, Beattie says that she proudly hands over to Michael Deighton, Managing Director of Tongaat Hulett Developments, as he steers the organisation into its 50th anniversary as the new SAPOA President for 2015/2016. “I appeal to Mike that he continues with the SAPOA Bursary Fund initiative,” she says. “We cannot achieve our goals and dreams without educating the students of the future.” Beattie also pays homage to SAPOA Chief Executive Officer Neil Gopal for his 10th year as the organisation’s CEO. “As an industry, we salute Mr Gopal for a decade of selfless contribution,” she says. “I would also like to thank all of SAPOA’s departments for all their hard work – without these zealous teams under the management of SAPOA Marketing Manager Jane Padayachee, SAPOA Finance Manager Susan du Toit, SAPOA HRD Manager Martin Ferguson, SAPOA Legal Manager Eugenia Makgabo, and SAPOA Planning and Development Manager Lekgolo Mayatula, the many achievements would not be met.”

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> Corporate and Investment Banking

LAYING THE FOUNDATIONS FOR AFRICA’S SKYLINES. MAURITIUS

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They call it Africa. We call it home. Successfully financing this level of development isn’t just proof of our expertise and experience in the African real estate market. Nor is it simply proof of our cross-border capabilities in tailoring solutions for our clients’ needs. These accomplishments demonstrate our commitment to building a stronger Africa. This is why, where others call us a bank, our clients call us a partner for growth on this continent we call home. Authorised financial services and registered credit provider (NCRCP15). The Standard Bank of South Africa Limited (Reg. No. 1962/000738/06). Moving Forward is a trademark of The Standard Bank of South Africa Limited. SBSA 190509

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Durban: the turnaround Out of 1Â 200 nominees from 220 countries, Durban emerged as one of seven cities worldwide to be awarded New7Wonders Cities status. Why Durban? Is there more happening there than meets the eye? By Anne Schauffer

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ernard Weber is the Founder-President of the New7Wonders Cities concept, one he believes represents the global diversity of urban society. As he says, “For the first time in human history, more than half of our planet’s population lives in cities, and this emphasises the dramatically challenging character of our changing world.” After an eight-month journey towards this satisfying end, Durban Tourism head Philip Sithole – in collaboration with the Durban Chamber of Commerce – is very happy with the award. It follows on the heels of Durban’s appearance on The New York Times list of “52 places to go in 2015”. Durban Tourism has been moving away from traditional campaigns that promote the city as a beach destination, and rather focusing its efforts on the city’s diverse culture and urban lifestyle. International tourism figures were up by 2,5% for 2014, with Americans, the biggest source market, accounting for 15% of the overall figure. The New7Wonders City concept is aimed at cities with rapid urbanisation, diversity, innovation in responding to city development, and aspirations of a global urban civilisation. The selection involves a lengthy voting process, beginning with a global vote from over 220 countries – more than 300 cities qualified (the top 77 voted, plus one per country). From the top 77, the New7Wonders panel of experts advises on the selection of the 28 official finalists. The voting process takes months, as hundreds of millions of voters globally choose the top seven. Weber considers the seven cities as “representative of the global diversity of urban society”, and Durban shared the honours with Beirut (Lebanon), Doha (Qatar), Havana (Cuba), Kuala Lumpur (Malaysia), La Paz (Bolivia) and Vigan (Philippines).

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What does this award mean for Durban? Are we able to leverage off this one – and off other awards? Russell Curtis is head of Durban Investment Promotion (DIPA) and, like Sithole, is in no doubt that awards make a difference. Some will carry more weight than others, says Curtis. “I don’t mean this disrespectfully, but whether you’re a business investor – the space I play in – or a leisure tourist, there’s a great deal of what I’ve come to term ‘herd’ mentality,” he says. “It’s human nature. People like to go where the herd goes, and if the herd’s found new pastures, new opportunities or undiscovered places, it draws greater numbers, greater attention. Awards help to influence the herd. People like to be associated with success stories, to say ‘I’ve been to that award-winning spot’.” But it goes beyond that. “For locals, rewards are equally helpful because they’re an antidote to relentless negative press – something we have – and for investors, awards influence business confidence levels,” he says. “Investors are reluctant to expand their businesses and employ new people if they solely receive negative news. Awards help to influence the existing local investors by increasing business confidence levels and by providing more of a balanced diet of information.” Curtis is immensely positive about today’s Durban and says with a high degree of confidence that Durban’s future is brighter now than it’s been in the last 15 years. “If we go back 10 to 15 years, one of Durban’s acknowledged problems was insufficient investment, be that relating to foreign investors coming in or existing investors expanding their operations,” he says. “There’s a whole range of factors why – we weren’t promoting ourselves as an investment destination, our organised business bodies

Visitors can hop aboard the Ricksha Bus for a scenic overview of Durban’s major attractions SOUTH AFRICAN PROPERTY REVIEW

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Russell Curtis, Head of Durban Investment Promotion

“So if I say there are at least 600 000 permanent jobs, you must know the construction and temporary jobs are multiples of that number.

needed improved engagement with city leadership, some political legacy factors, our infrastructure was at a status quo – we weren’t embarking on massive upgrades to our infrastructure… There was a range of contributing elements.” He believes that’s no longer a problem in Durban. “As DIPA, we have a dashboard of flagship projects, a fairly sophisticated database with some geographical information systems underpinning it – generally projects worth R100-million and more,” he says. “Over the past two to three years, that dashboard has been growing considerably, both in terms of the number and scale of projects – a combination of pure private sector investments, some pure government investments, and some publicprivate partnership arrangements.” He concedes that some of these numbers are skewed by what could be construed as “pure state infrastructure investments” – but on the DIPA dashboard, there are 65 projects, not pie-in-the-sky but rock-solid, concrete investments managed by investment teams. “They’re all at different cycles on their critical paths, so consider the dashboard in the context of a pipeline of investment that‘s coming in and spitting out jobs, revenues and new opportunities,” says Curtis. “Cumulatively, there is about R650-billion worth of investment, with the potential to create at least 600 000 permanent jobs. It’s common knowledge in the construction phases that those jobs are rather job opportunities, shortterm in nature. If you’re building a billionrand manufacturing facility, it can employ a thousand people throughout the site preparation, buildings and construction –

but it may only end up employing 200 to 300 people permanently. If I say there are at least 600 000 permanent jobs, you must know the construction and temporary jobs are multiples of that number. These are investments across the city, from outside of Dube Tradeport on our northern boundary with Ilembe in Ballito, through to Cato Ridge/ Hammarsdale, our western boundary, and right down to Umkomaas, our southern border. So they’re spread geographically and across six broad sectors – manufacturing, agri-business and agri-processing, property development, tourism development, information-communication technologies, maritime logistics and the green economy.” Curtis unpacks the province’s key projects in geographic bites. “The north has always been going and growing faster than elsewhere but it’s going to accelerate even more,” he says. “Just two examples. Tongaat Hulett Development’s (THDev) board mandate is to increase the number and scale of their transactions, and as DIPA we’re working with them – we’re heading to the largest property exhibition, held in France, where THDev will be offering some large-scale investment sites to the international market. “Up until six months ago, Dube Tradeport and the airport were just another piece of real estate – investors could go there if it made sense, similarly to Richards Bay or Springfield Industrial Park. Now that the Dube region has been declared a Special Economic Zone (SEZ), launched by the state president, it’s sent a clear signal to investors that there are tangible business benefits, such as an almost 50% reduction in the corporate tax rate.

The Moses Mabhida Stadium is one of Durban’s newest icons

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

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theme leader This is attracting foreign investors, and it’s one of the reasons Samsung Electronics relocated there. We’re currently dealing with three other multinationals for other kinds of investments there. “Out in the west, they’re benefiting from SIP2, the Strategic Infrastructure Programme, Durban/Free State/Gauteng Logistics and industrial development corridor. This SIP2 is a project coordination role out of the office of the president, chaired by the Transnet CEO, with the aim of accelerating logistics and industrial development along the corridor from Durban through Hammarsdale/Cato Ridge/Free State into Gauteng. Companies that are in logistics, warehousing, transport and distribution are responding to that. You’ve seen Value Logistics from the freeway, and there are many you can’t see … but that’s the challenge of human nature. The Durban beachfront is famous for its Zulu Rickshaw Runners

“People only believe what they see – and you will start to see a whole lot more happening on that N3 corridor. We have significant investors from JSE-listed companies to international consortia. They already own land, so these aren’t just speculative hopefuls but those who staked their claim and acquired first options on land to do multibillion-rand investments.” Keystone Developments (Hammarsdale off-ramp) has just broken ground on a significant logistics and light industrial park there, and has already have secured its first large JSE-listed corporate tenant.” In the urban core of the CBD, there is a wide range of dynamic, innovative projects, moving at speeds we haven’t seen the likes of in many years. “We’ve probably got the best urban regeneration going in terms of an actual project that we’ve had in 20 years,” says Curtis.

The Tsogo Sun group is re-investing, and we await the massive investment north of the Suncoast Casino. The Malaysians have returned to the Durban Point precinct after being silent for 10 years. Sixty percent owned by the Malaysian government, the point is the subject of world-class plans to “supersize” it. Those giant waterfront facilities with iconic buildings? That’s what the Malaysians are looking at. They are huge property developers in Singapore, Malaysia, Australia and elsewhere, and they have a team of Malaysian executives right now, living and working here. The final internal town planning arrangements are being completed at present. In the heart of town, exciting mixed-use developments are being snapped up. “From JSE-listed companies such as Combined Motor Holdings and their R250-million investment in the city, to the originators of Maboneng Precinct in Johannesburg, Jonathan Liebmann’s Propertuity Group is transforming tired, boring buildings into vibrant work, live, play spaces,” says Curtis. “He’s already acquired multiple buildings and launched projects – and he’s not the only one. “Heading south, we have big engines of opportunity such as the Transnet dig-out port, the reconfiguration of the South Durban Basin. Big industrial investors such as Toyota continue to reinvest and expand their operation, as do greenfields investments down south and large agricultural property owners – one JSE-listed, one pure private – which will unlock huge sections of what is presently sugar cane. Once again, these are not speculative projects; these are projects by landowners with significant institutional money. They’re currently going through the regulatory processes.” So in terms of investment, Durban is flying. But it’s not just work and no play because this invigoration into the CBD in particular – like Propertuity’s Rivertown project with its markets and art component – is making Durban re-look at and re-engage with areas that had become no-go zones. Marry elements such as Rivertown with awards like the New7WonderCities, and people of Durban are sitting up and taking notice. Not unlike the wonderful beachfront promenade that is receiving international acclaim from visitors, these are zones which are being used and enjoyed and – dare we say it – giving Durbanites a genuine sense of pride in the diversity of quality cultural offerings that are popping up. This can only be great for Durban tourism.

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es: i r e eyerion a s Africa c hly ntry t f n e A o ou Th our m by-c try focus n cou

Africa uncovered:

Ghana

Once West Africa’s economic darling, Ghana’s growth outlook now appears bleak – yet the country remains attractive in terms of property development and investment By Candace King

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Ghana at a glance ▼ Population 26 778 409 (January 2015 est.) ▼ Major cities Accra (2,3-million), Kumasi (1,5-million) ▼ Currency Cedi (GHC) ▼ Total area 238 533km² ▼ GDP growth 4,2% (2014) ▼ Key industries Mining, lumbering, light manufacturing, food processing

roducing close to 10% growth, Ghana was Africa’s growth prodigy. At the beginning of the decade, the West African gem was among the continent’s topperforming economies and a leader of African frontier markets. However, Ghana has slumped into a sluggish economy state, with the country’s growth having dropped dismally. In recent years, Ghana has been vulnerable to external shocks and has been adversely affected by the decline in commodity prices and a rising import bill, which has resulted in a steady pressure on its currency. In 2014, growth

fell to 4,2% as commodity prices fell and the currency depreciated. In addition, Ghana is suffering from a major energy crisis, which has hit businesses hard. The energy crisis is being attributed to low levels of water in Akosombo Dam and a lack of gas to power the country’s thermal plants. The economic crisis is further aggravating the power shortages. Despite the current economic downturn, Ghana remains an attractive African market. It is often regarded as a well-administered country, by regional standards, and is seen as a model for political and economic reform in the continent. Ghana’s economy has been strengthened by a quarter-century of relatively sound management, together with a competitive business environment and sustained reductions in poverty levels. Looking back into the country’s history, Ghana was the first location in sub-Saharan Africa where Europeans arrived to trade. It was also the first black African nation in the region to obtain independence from British colonial rule in 1957.

Population in thousands

700-2 200 2 200-2 380 2 380-4 800

700 - 2 200 2 200 - 2 380 2 380 - 4 800

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After 1957, Ghana fell prey to corruption and mismanagement and experienced several coups until 1981, when political parties were banned by Lt Jerry Rawlings when he took power. The country began to move towards economic stability and democracy. In 1992, a new constitution was approved and multi-party politics were restored. Since then, several leaders have

ABOVE Fishermen going about their early morning business

Accra prime rents and yields Prime rents

Prime yields

Offices

US$40/m2 per month

10%

Retail

US$45/m² per month

Industrial

US$8/m² per month

12%

Residential

US$6 000 per month*

10%

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

GDP by sector (percentage) Population density (persons per km2)

Land area (km2)

Agriculture, hunting, forestry, fishing

21,3

of which fishing

2,7

1,5

Mining

2,4

7,9

of which oil

6,1

Manufacturing

7,9

6,3

Electricity, gas and water

1,3

1,4

Construction

8,7

12,6

Wholesale and retail trade, hotels and restaurants

10,7

of which hotels and restaurants

5,3

Transport, storage and communication

13,6

14,3

Finance, real estate and business services

7,9

9,9

Public administration, education, health and social work, community, social and personal services

6,3

6,6

Other services

8,9

Gross domestic product at basic prices/factor cost

100

Source: African Economic Outlook Ghana Report 2014

come into power, with John Dramani Mahama the country’s current president. While civil strife has never truly plagued Ghana, like so many of its West African neighbours, the country experienced ethnic violence in 1994 and 1995 over land disputes, which resulted in the death of 1 000 people and the displacement of 150 000. Ghana is rich in mineral resources – its path of economic growth has been on the back of gold, cocoa and oil exports. It is the world’s second-largest cocoa producer and is Africa’s biggest gold miner. It also boasts a good education system and efficient civil service, and has a high-profile peacekeeping role. In late 2010, Ghana was re-categorised as a lower middle-income country. Agriculture also plays a large role in Ghana’s economy – the sector accounts for about one-quarter of the GDP and employs more than half of the workforce. The services sector accounts for 50% of GDP. According to African Economic Outlook’s Ghana 2014 report, the country has made substantial progress in meeting some of its Millennium Development Goals, as targets for the reduction of extreme poverty and access to safe drinking water have been achieved, while targets on hunger, education and gender are on track. Returning to Ghana’s current economic situation, various experts and analysts boast varying predictions on the growth outlook for 2015. Some expect the economy to worsen while others predict a turnaround. Ghana’s Minister of Finance and Economic Planning Seth Terkper said the country’s volatile economy would be stabilised by a US$1-billion International Monetary Programme and rebound within three years. According to African Economic Outlook’s Ghana 2014 report, the country’s economy

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eye on Africa is expected to maintain robust growth over the medium term, bolstered by improved oil and gas production, increased private sector investment, improved public infrastructure development and sustained political stability. According to the report, the economy is expected to grow by about eight percent.

The Ghanaian property industry In the coming years, the Ghanaian government has said that it will focus on infrastructure development, especially in the oil production sector. “While we continue to build more hospitals and schools, other critical sectors such as water, roads, transport, ICT and telecommunication continue to engage our attention,” said President Mahama. “Development of key infrastructure is not only for job creation but also for general socioeconomic transformation.” He added that, on estimate, Ghana suffers an infrastructural funding gap of about US$1,5-billion a year. While the private sector has been instrumental in this field, the government has decided to become more involved in the sector. In 2014, the government established the Ghana Infrastructure Investment Fund, which acts as a vehicle to mobilise resources in the scale-up of the development of critical infrastructure in the country. Furthermore, the promotion of integrating Ghana’s industrial sector into regional value chains could underpin the country’s structural transformation. In terms of property development, retail and hospitality are prime segments of Ghana’s property industry. Ghana is taking the lead in the region when it comes to new bold shopping centres, and hotels are becoming prime investments.

Retail market According to Knight Frank’s Africa 2013 report, the supply of modern retail space remains limited and traditional retail units and street hawkers continue to dominate Accra’s retail offer. However, with the new entries of shopping centres such as Accra Mall, the retail sector is moving towards Western-style shopping centres. In the Ghanaian retail playing field, South African companies (such as Broll, Atterbury and RMB Westport) are just some of the instrumental players in Ghana. Atterbury developed Accra Mall in 2007 and continues to develop in the region, including the US$55-million Achimota Mall and one in Kumasi costing US$110-million. Atterbury will also spend US$130-million on the second phase of the Accra Mall,

with all three sites to be completed by 2017. RMB Westport is financing the construction of the Junction Shopping Centre in Nungua, in greater Accra. In terms of hotels, the Industrial Development Corporation has invested about R1,5-billion in hotel developments in Ghana and Uganda. The hotel in Ghana will be operated by Marriott.

Industrial and office market Traditionally, factories have been located in Accra and the industrial zone to the east of the city, near the port of Tema. “Land price inflation in the central areas of Accra will increase the pressure on centrally located heavy industries to relocate to lower-cost sites on the outskirts of Accra, which will help to free up land for redevelopment,” notes Knight Frank’s Africa 2013 report. Because of Ghana’s political stability and relatively strong economic growth over the past few years, the office sector in the country has been boosted. Both the public and private sectors have been involved in development, with office demand stemming from services that support sectors such as banking, telecoms, professional and diplomatic/aid sectors. Driven by improved demand for highquality space, office rent has risen sharply over the past few years, notes Knight Frank’s Africa 2013 report. It adds that new office space in Accra is delivered to a “shell and core” finish.

TOP Mining is one of Ghana’s top industries ABOVE Artisanal miners work in the tailings ponds/ impoundments of AngloGold Ashanti’s Obuasi Mine in the Ashanti region of Ghana

Residential market The current residential market in Ghana is buoyant, with several developments being sold off-plan. High-end apartment developments have sprung up and are being purchased as investments to lease by Ghanaians. There are also several smaller residential developments being undertaken in Accra.

Regional summary Population (in thousands)

Population density (persons per km²)

Sum (area in km²)

Ashanti

4 780

196

24 389

Brong Ahafo

2 311

39 557

Central

2 202

224

9 826

Eastern

2 633

136

19 323

Greater Accra

4 010

1 236

3 245

Northern

2 479

70 384

Upper East

1 047

118

8 842

Upper West

702

18 476

Volta

2 118

103

20 570

Western

2 376

23 921

Source: Opendataforafrica.org SOUTH AFRICAN PROPERTY REVIEW

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series

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s●

monthly coun our

Th e WOR

by-country focu try-

Did you know? Most of Singapore’s surrounding smaller islands are uninhabited.

Not only is it southeast Asia’s economic golden child, Singapore is also one of the world’s most prosperous countries By Candace King

Key facts ▼ Population 5,5-million (at end June 2014) ▼ Major cities Toa Payoh, Ang Mo Kio, Choa Chu Kang, Bedok, Tampines ▼ Currency Singapore dollar (SGD) ▼ Total area 716km² ▼ GDP growth Three percent (2014 est.) ▼ Key industries Manufacturing, petroleum and petrochemicals, services, agriculture 48

Island of prosperity C

haracterised by colossal shiny skyscrapers and a bustling, thriving port, Singapore is one of the world’s most prosperous destinations. Situated between Malaysia and Indonesia in southeast Asia, Singapore is also a bit of a double edged sword – while it‘s one of the wealthiest city-states and boasts highly advanced technology, the country is also extremely conservative and is governed by some of the strictest social controls in the world. Comprising a main island around several smaller islands, Singapore was once a colonial outpost of Britain – it was founded as a British trading colony in 1819. In 1963, it joined the Malaysian Federation but was ousted and became independent in 1965. Post-independence, Singapore transformed into one of the world’s most successful countries. It boasts strong international trading

links, and its port is one of the globe’s busiest in terms of tonnage handled. With per capita GDP equal to that of the leading nations of western Europe, Singapore’s citizens enjoy one of the world’s highest standards of living. Most Singaporeans live in public-housing tower blocks, with much of the population made up of Chinese people (more than 75%) and the rest of Malays and Indians. Singapore is teeming with foreign workers – according to a government forecast published in 2013, by 2030 immigrants will make up nearly 50% of the population. While Singapore is a multi-party nation, the People’s Action Party has been the dominant force since the country’s independence.

Booming and blooming In terms of its economy, Singapore is often labelled as one of Asia’s economic “tigers”,

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Did you know? A panoramic view of Singapore's city skyline at dusk

characterised by an economy thatâ&#x20AC;&#x2122;s led by electronics manufacturing and financial services. Singapore has been looking to find ways in which it can strengthen its services sector and tourism industry. Through trying financial and social times, Singapore has weathered the storm. It was left unscathed during the 1997 Asian markets slump, the 2003 Sars virus outbreak, and the 2009 world banking crisis. With a highly developed and successful free-market economy, Singapore is home to a relatively open and corruption-free environment. It boasts stable prices, and unemployment is quite low. The economy relies on exports, especially in consumer electronics, information technology products and pharmaceuticals, and on a growing financial services sector. In the first quarter of 2015, Singaporeâ&#x20AC;&#x2122;s economy grew by 2,1%, year-on-year. Over the long term, the government aims to establish a new growth path that focuses on raising productivity.

After Monaco, Singapore is the most densely populated country in the world

Where Singapore and comparative economies rank on the ease of doing business Singapore (Rank 1)

88,27

New Zealand (Rank 2)

86,91

Hong Kong SAR, China (Rank 3)

84,97

Korea, Rep. (Rank 5)

83,4

Malaysia (Rank 18)

78,83

Japan (Rank 29)

74,8

Regional average (East Asia & Pacific, Rank 92)

63,19

China (Rank 90)

62,58

Distance to frontier

Source: Doing Business database SOUTH AFRICAN PROPERTY REVIEW

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THIS PICTURE Singapore Sports Hub (Photograph © Leong Him Woh) BELOW The 260m Esplanade Bridge spans the mouth of the Singapore River

Property a concern While Singapore has done exceptionally well economically, its property market has raised eyebrows among investors. Property has long been regarded as a key investment class in Singapore but investors are shying away from the country and looking at overseas markets. “Singaporeans continue to see property as a key investment,” says Sean Tan, General Manager for Singapore at iProperty.com. Although the market has avoided a complete crash, the biggest concern for analysts and investors is that rental demand for accommodation is making it more difficult for property to yield returns. Vacancy rates in the Singaporean accommodation market are at the highest levels in more than 10 years. Currently, there is an 8,5% vacancy rate in the country’s condo and apartment market. A steep increase in mortgage rates is also affecting yields. According to a recent iProperty survey, most Singaporean investors have postponed plans to add to their property portfolios in the hopes that prices will fall over the next

six months, and that they’ll have an opportunity to benefit from future capital growth and higher yields. “It has become increasingly difficult to rent out units as the increased completions and slower influx of foreigners are resulting in rising vacancies,” analysts at UOB-KayHian said. In terms of retail, the market appears attractive. Shopping mall VivoCity is set to launch a new 1 394m² space for the housing of nine retailers, including two newcomers to the country – American Eagle Outfitters and Weekends. “The new retail space will take advantage of a constant stream of shopper traffic because of its location at the main thoroughfare that connects HarbourFront MRT Station (at Basement 2) to the main shopping areas in the mall as well as the Sentosa Express Station (at Level 3),” said Joanna Lee, Head of Retail Management at Mapletree Commercial Property Management, in a press release. “The addition will create a seamless shopping experience for our customers across all levels of the mall.”

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City of Tshwane takes the High Street In what’s been dubbed the biggest land auction in South African history, the city of Tshwane, through High Street Auctions, auctioned off the first batch of its 80 properties By Candace King Photographs by Erik Forster

In a bold and forward-thinking initiative, Tshwane appointed High Street Auctions to auction more than 80 properties to raise funding to improve the lives of thousands of residents

n 24 March 2015, several lots of prime property owned by the city of Tshwane went under the gavel at one of High Street Auctions’ most iconic auctions to date. Held at Summer Place in Hyde Park, Johannesburg, the auction was a huge success, with the city’s land parcels fetching R188-million. In a bold and forward-thinking initiative, Tshwane appointed High Street Auctions to auction more than 80 properties to raise funding to improve the lives of thousands of residents. With the goal of raising R500million, the municipality will be auctioning about one percent of its total land portfolio over the next few months. Through this massive auction, the municipality would not only improve the lives of its residents but also raise capital and prevent burdening cash-strapped rate-payers by increasing rates, tariffs and taxes.

The first batch As part of the total 80 properties, the first 17 properties were swept up by some of the industry’s biggest players. The highest seller was a 7,7-hectare portion in the up-market suburb of Erasmuskloof in Pretoria East, which was sold for R41,5-million. “Auctioning off the iconic Kyalami race track generated an enormous amount of interest in – and credibility for – High Street Auctions by larger establishments, such as the city of Tshwane,” explains James Dall, High Street Auctions’ Joint Managing Director. “We auctioned the first 17 properties; the remainder will be up for auction in May and June 2015.” Councillor Subesh Pillay, the city’s Member of the Mayoral Committee for Economic Development and Planning, opened the auction by speaking about the events that had led up to this historic day.

Lead auctioneer and Director at High Street Auctions Joff van Reenen

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The City of Tshwane, through High Street Auctions, auctioned off the first batch of its 80 properties

“We had to think differently and creativity to raise capital,” he said. “We knew that the success would lie in the efficacy of the process. We are in uncharted waters for government – even trendsetters – and we look forward to fast-tracking our key objective to uplift the city. The city is passionate about eradicating poverty and redressing the historical legacy. For us, the land release programme is not about the financial returns but about social redress. Through this programme, the city will eradicate informal settlements, and provide permanent serviced stands and title deeds. We are very proud of this milestone.” Pillay noted that the winning developers of the auctioned land parcels would have to develop their properties within 18 months. He added that this would allow them to benefit from special incentives that were packaged with the sales.

Developing for the future

Councillor Subesh Pillay, City of Tshwane’s Member of the Mayoral Committee for Economic Development and Planning

Once completely developed, the total value of the 80 properties will be R26-bilion. The sales will result in increased revenue for the city of Tshwane of about R3,7-million a month. This figure will increase to R44-million a month and create 42 000 jobs.

“This has been a landmark auction for High Street Auctions; we saw unprecedented interest in the city of Tshwane properties,” says Lance Chalwin-Milton, Joint Managing Director of High Street Auctions. “With tax and financial incentives and the speedier processing of applications for developers, we anticipate there will soon be much activity on these properties.” In the near future, further Tshwane land will be auctioned with the aim of stimulating and broadening transformation by allowing more black people to own land in the city.

A small taste of the properties that went on auction • Lot 01: a city of Tshwane land release in Sunnyside, with large incentives, went for the hammer price of R18,75-million. This is the only exceptional vacant land in a developed area and ideally located opposite Sunnypark Shopping Centre. The site offers massive exposure onto the busy Steve Biko Road. Bulk services are available. • Lot 23: a city of Tshwane land release of prime property in Erasmuskloof was knocked down after competitive bidding for R41,5-million. This property has mixed-use development potential, with services readily available. The city is offering fantastic incentives to the buyer.

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2015/05/04 12:00 PM

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2015/04/24 2:14 PM

MOU signing

Collaborating amid the energy crisis SAPOA recently signed an MOU with SAPVIA to help alleviate the strain that the current energy crisis has caused By Candace King

ver the past few years, the deterioration in the functionality of South Africa’s coal-fired power-generation plants has resulted in the inability of power utility Eskom to meet the electricity demand in South Africa. In addition, the Load-Shedding Programme introduced by Eskom to ease the growing demand on its beleaguered grid has resulted in disruptions to economic activity, suppressing economic growth. During this time, the government-run Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) has resulted in additional new generation capacity being brought online, on budget and on time. Certain early financial and economic benefits of the REIPPPP were realised in 2014, when the production of electricity from newly built solar photovoltaic (PV) and wind energy farms resulted in the reduction of load-shedding and fuel consumption. Building on the delivery track record of the REIPPPP, South African Photovoltaic

Industry Association (SAPVIA) members have developed the necessary expertise, resources and shared interest in ensuring that PV solutions that are deployable at the point of consumption (embedded PV solutions) are made available safely, economically and in an expedited manner. SAPOA members play an important role in accommodating commercial and industrial operations in South Africa, and have increasingly seen their service offerings being compromised by the LoadShedding Programme, with the concomitant negative impact on their clients’ economic wellbeing. SAPOA wishes to find a speedy solution to the problems caused by the Load-Shedding Programme. SAPOA members have access to roofs and parking areas on their properties that provide space for the installation of embedded PV solutions. It is envisaged that this is a resource that will help alleviate the aforementioned effects of the LoadShedding Programme. In light of this, SAPOA has signed an MOU with SAPVIA to encourage and facilitate

SAPOA Chief Executive Officer Neil Gopal with SAPVIA Chief Executive Officer Moeketsi Thobela (Photograph by Erik Forster)

the process in which the members of each party will use their collective resources to alleviate the difficulties caused by the LoadShedding Programme. SAPOA and SAPVIA will collaborate on programmes that will allow their members to contribute towards alleviating the effects of South Africa’s electricity-supply imbalance caused by load shedding by taking several steps. SAPVIA undertakes to provide an overview of the information required to design and install embedded PV solutions, including PV generation systems; to provide technical advice on issues related to embedded PV solutions, for example standards, regulatory issues, general PV market developments and trends, and so forth; and to provide assurances that embedded PV solutions procured from/ installed by SAPVIA members are compliant with safety and performance standards, in terms of applicable codes of practice or legislation. SAPOA undertakes to facilitate access to high-level information required by SAPVIA members for the design and installation of embedded PV solutions, including information on the amount of rooftop and parking space that could be available for the installation of embedded PV solutions, location in the country, and so forth; and encourage its members to procure embedded PV solutions from SAPVIA members, provided that this will be on a nonexclusive, transparent and competitive basis. Together, the parties undertake to facilitate contact among their respective members for the purpose of promoting the use of embedded PV solutions to improve electricity supply security. This will be underpinned by principles that include transparency, competition to create value for money, integrity and adherence to standards; share other information as may be necessary; and develop a programme to jointly communicate and promote their collaborative relationship and the outcomes thereof as they are realised.

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2015/04/28 3:28 PM

interview

In the making... LAWRENCE, 19 Project Development Manager?

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2015/04/24 11:11 AM

BAM Architects

THIS IMAGE Quays by Century City

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2015/04/28 3:23 PM

BAM Architects

The art of relationship About the striking ofﬁce buildings and corporate headquarters that he most enjoys designing, Cape Town architect Chris Bam says, “Whatever its size, we place strong emphasis on a building’s relationship with people and focus on retaining a human scale”

“O

ur buildings need to be grand and imposing in celebration of the companies that occupy them and those that own them – but at street level, they must be aesthetically, emotionally and practically accessible,” says Cape Town architect Chris Bam. “Buildings and people can’t exist in isolation, so it’s appropriate that in architecture, the term relationship has its broadest meaning.” Relationship is a word that occupies his attention right now. It has to do with his 23-year-old architectural practice, where every one of the diverse designs represents the relationship his practice has with each one of his clients.

“Buildings are inseparable from their environment and their occupants so a successful relationship of a building with its site and surroundings is vital, as is the relationship between the needs of the inhabitants and the efficient function of the building,” he says. But a relationship he considers equally essential is that between the architect and the client. “‘Relationship’ is more often the term used by architects to describe how a building occupies its space, or its position in relation to other buildings and the landscape on which it’s placed,” he says. “A client relationship similarly includes elements such as harmony and a good fit, or in some cases the flash

of difference that both in architecture and human interaction can be creative – and enormously valuable.” Bam Architects’ work includes buildings that challenge on various creative levels and those so in harmony with their surroundings, it is as if the entire landscape has been transformed by their presence. This isn’t by chance. Bam believes buildings have the capacity to shift emphasis of human activity from one place to another and change the way people live their lives. An example is the Tyger Valley Waterfront, where two Bam-designed projects, corporate headquarters valued at R400-million, form the core of an entirely new CBD.

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BAM Architects His work at Century City is equally transformative. Here, his design of The Quays for long-time client Rabie Property Group was in line with the creation of a workable, sustainable waterside environment with all the prime characteristics of Rabie’s developments. A focal component of its holistic design is a 1,5m-deep fresh-water body connected to Century City’s network of waterways. Bam ranks the culture of collaboration as a major component in his practice’s success. “We provide clients with the best building by getting to know their attitude, objectives and brand values,” he says. “A successful building can be a powerful brand icon.” It is for this reason (and others) that he values having Virgin Active as a client. His practice has been exclusively commissioned to provide the architectural designs

for the roll-out of Virgin Active’s Red clubs nationwide, and he was part of the team that created an unmistakable physical and graphic presence for the brand. “Virgin Active is inspiring,” he says. “It represents concerted energy; its buildings and spaces create the brand image. It’s an example of function driving form. Just looking at a Virgin Active club gives one a sense of movement, vitality and enthusiasm.” There is another advantage of a close, lasting client relationship evident in his work with Virgin Active. Because the clubs are in constant search of more accommodation, Bam and his team are often at the interface between the client and the developers. With Virgin Active as a client, Bam says he is part of a process. “In many ways this becomes a synergistic relationship between developer, tenant and architect.

CLOCKWISE FROM ABOVE Virgin Active Red locker room; Marlboro Place in Kramerville; Virgin Active Red cardio section; The Edge at Tyger Falls; Virgin Active Red spinning studio

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BAM Architects We can give input on design, both for the interiors and the exterior, resulting in a wellintegrated building.” He cites the example of his new design project for Shoprite Checkers Properties’ development in Sun Valley, Noordhoek, where Bam Architects is responsible for the fit-out and the shell of the building ,which was introduced through Virgin Active, a tenant in the project. With his contract for all the Virgin Active Red clubs throughout the country and commissions for a number of major clubs as well, he believes a point has been reached where Bam Architects will increasingly create both the inside and outside designs of the clubs, either as stand-alone buildings or as key tenants. Based on his principle that a company’s building should speak for it and reflect the brand, Bam believes that with landlord and

tenant aligned, the longevity of the tenancy is ensured. Of the future, he says he will always love to design commercial buildings. “I like the scale,” he says. “It is an opportunity to showcase our design skills on a big canvas. We like to make meaningful interventions on a site, and in some cases, as we have done, transform a node.” As adherents of the concept of new urbanism, Bam and his team believe that a great deal needs to be done to reverse the effect of earlier movements that separated urban buildings from their immediate environment, with blank façades at street level. “In transforming the space they occupy, buildings transform the wider environment and the lives of those who occupy and move around them,” says Bam. “People’s relationship with buildings shows in their attitude, positive or negative – and the building lives or dies according to the way it serves their needs.”

Chris Bam

t: +27 (0)21 465 6007 / +27 (0)82 490 1060 f: +27 (0)21 465 6008 e: chris@bamarchitects.co.za www.bamarchitects.co.za SOUTH AFRICAN PROPERTY REVIEW

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2015/04/28 3:26 PM

editorial

The reality of electronic signatures With the rise of digital signatures in the commercial property arena, their validity is an important aspect to take note of By Andrew MacPherson

nee-deep in the 21st century, many offices find themselves decreasing their reliance on paper documents because of a significant escalation in the volume of commercial transactions and agreements capable of being concluded digitally. With this in mind, it is increasingly important to appreciate the legal effects of digital signatures. Recently, in Spring Forest Trading v Wilberry [2014] SCA 178 (“Wilberry”), the Supreme Court of Appeal (SCA) considered whether the parties’ email exchange cancelling a lease agreement in respect of movables fulfilled the requirements of a non-variation clause. Traditionally, non-variation clauses seek to prevent disputes and problems of proof with regards to the variation of contracts. Specifically, they require variations to be in writing and signed by both parties, to avoid fictional claims of previous oral variation. The court found that, provided the data in an email is intended by the author to serve as a signature and is logically connected with other data in the email, the requirement for an electronic signature is satisfied. As such, an email may fulfil the clause’s writing requirement and that a salutation reading “[k] ind regards, Greg” constituted a signature and was of full legal effect. As part of its analysis, the SCA considered the Electronic Communication and Transactions Act No. 25 of 2002 (“ECTA”), which brings parity between computergenerated, electronic “data messages” and traditional paper-bound evidence. This means that any agreement that was conventionally required to be reduced to writing may now be generated electronically and maintain equivalent legal consequence. The legal import of electronic signatures is set out in Section 13 of ECTA. Section 13(3) pertains to agreements between private parties and if the parties have agreed on the necessity of an electronic signature; this obligation is met if a method – reasonable under the circumstances – exists to identify the creator of the signature and there is an indication of the party’s approval of the information conveyed. Should the parties not agree on a category of acceptable electronic signature, ECTA provides that an expression of intent in the form of a data message is legally enforceable

Andrew MacPherson, Candidate Attorney in the Real Estate Department at Cliffe Dekker Hofmeyr, Cape Town

even if it is not evidenced by an electronic signature, but by other means that indicate such person’s intent. Even though the agreement in Wilberry concerned the lease of movables, the implications of this case for players in the real estate sector are far-reaching. With the exception of the sale of immovable property and long-term leases, any other property agreement, such as short-term leases, property management agreements and building and development contracts, may be varied by email, provided the requirements of Wilberry are met. Therefore, it is imperative for contracting parties to proceed with caution when liaising with each other regarding the terms of a property-related agreement via email. Wilberry confirms that the law is not static, and must continue to evolve in order to be effective in a world where the preference for conducting and concluding business transactions through data messages is evident. The pragmatic approach adopted by the court reinforces the reality of the world in which we interact and holds each of us responsible for our written word. A necessary equilibrium has been realised between electronic and handwritten messages and signatures.

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2015/04/28 3:22 PM

interview

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2015/04/24 8:46 AM

editorial

Bailing out municipalities New debt-collecting system offers hope for cash-strapped municipalities

FROM TOP Hennie Heymans, Chief Executive Officer of StratCol; Jacques Lubbe, Chief Executive Officer of Swordfish

elp is on the way for cash-strapped local authorities who are collectively owed more than R100-billion by their errant rate-payers. A consortium of companies in the financial services and software industry has come up with a plan that will help municipalities collect these outstanding funds by implementing a sophisticated combination of carrot-and-stick measures that will encourage rate-payers who have fallen behind in payments to pay up. Hennie Heymans, Chief Executive Officer of StratCol, one of the largest paymentsystems companies in South Africa, says his company has joined forces with associated company Swordfish, whose debt-collecting software is currently used by Nedbank, FNB and many other business entities to collect outstanding debts. “Our associates already won its first tender for our financial services package with the Westonaria local municipality, which is owed a substantial amount of money by its ratepayers,” Heymans says. The system, based on a software package written by the Pretoria-based Swordfish, helps municipalities to identify consumers who owe them money, then assists them in the collection of these funds, says Swordfish Chief Executive Officer, Jacques Lubbe. “The overwhelming majority of local authorities are in the dark about exactly how much money they are owed,” he says. “The software will ensure that the negative stigma usually associated with the debt-collection process is avoided.” This is achieved by innovative trace confirmation that identifies the current whereabouts of each debtor. The system allows those debtors who admit liability to enter into a payment arrangement early in the process. The procedure further provides a “onestop” solution from the earliest debit order right through to legal action, including default judgment and possible execution against movables. The preferred method of payment will be through debit orders, which will be managed by StratCol. Heymans says his company had many years of experience in the payment-systems arena and is prepared for the massive influx of new debit orders that would result from the implementation of the Swordfish program.

“We know that almost all municipalities in South Africa are in dire straits because of the non-payment of water, electricity, sewerage and rates and taxes accounts, which has resulted in the non-delivery of essential services to their residents,” he says. “This in turn has resulted in unrest from dissatisfied consumers who are demanding better service delivery.” The first step in the implementation of the system at Westonaria and future municipalities who are expected to come on board soon, will be to identify rate-payers who are in arrears by using a sophisticated track-and-trace system, which will be operated by a law firm with years of experience in the field. A huge advantage of the system is that it is hosted in the cloud, which means that municipalities will not have to spend a cent on new hardware or additional infrastructure. They will be able to access the software via the Internet. “Once we have traced the rate-payer, we’ll provide him or her with a range of payment options,” says Heymans. “The most effective method would be for them to agree to a debit order. They will also be able to make payments at ATM machines and cash payments at pointof-sale terminals at most major retailers and department stores, using StratCol and Swordfish’s alternative payment platforms.” A major boost for the programme came when the SA Local Government Association (SALGA) announced it was taking steps against thousands of defaulters owing municipalities almost R100-billion by introducing a law that would set up an agency, similar to the SA Revenue Service (SARS), to attach people’s salaries (via garnishee orders). SALGA’s head of the finance working group, Subesh Pillay, told the standing committee that the new law would give the agency teeth, like SARS, to go after defaulters and recoup billions. Municipal debt has more than doubled in the past five years, rising from R43-billion in 2010 to a staggering R93-billion in 2015. Pillay said that while people were able to pay their bonds, clothing accounts and school fees, they defaulted on municipal accounts. The Minister of Co-operative Governance and Traditional Affairs, Pravin Gordhan, said earlier this year that a third of municipalities were dysfunctional.

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2015/04/28 3:20 PM

interview

architecture

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interior design

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SOUTH AFRICAN PROPERTY REVIEW

2015/04/24 9:16 AM

interview

WORKING ANY WHICH WAY YOU LOOK 19 years ago Craig Cockburn, the now MD of HUB Parking was part of the team that switched on the first Zeag Pay on Foot parking system in South Africa, at Sterland, Pretoria, in September 1996. Since those early days it’s been quite the journey and he’s watched the industry grow and transform – with Pay on Foot parking systems being considerably more commonplace these days.

“We now boast 165 sites across the country and we keep growing,” says Craig. “Historically we’ve always been seen as offering an incredibly reliable product that goes the distance. Together with the International HUB parking team, a great service offering and a reliable development platform we are certainly looking forward to an exciting future.” HUB Parking, a business division within the International Automation Group, FAAC was formed in 2012, with a view to consolidating the various parking companies in the group into one division and leveraging off the combined expertise of its team members. The division, headed by Enrico Nardi out of Bologna, Italy comprises equipment manufacturers Zeag Parking, ParQube as well as Datapark, a product range specifically developed for the North and South American market. Magnetic Autocontrol (est. 1946), the number one manufacturer of Parking Barriers worldwide, and another group company provides high speed barriers to the stable.

“As a group we are acutely aware of the need to offer the latest technological advances to our respective markets, and our new product range has been designed to allow us to do this. An example of this is our ability to communicate with various different payment platforms simultaneously and the potential to seamlessly link into new payment technologies as they come along.” With the banking, and other sectors offering a range of new cashless payment systems like MasterPass, Zapper, SnapScan and mobile wallets it’s become increasingly important that parking systems look to incorporating these technologies into their offering. The New Zeag system has the flexibility to do this.

The Crown Jewel in the new product range is JMS, Janus Management System. Being part of an Italian Group company, celebrating 50 years in the industry HUB have used Janus, a Roman god as their inspiration for their latest back end software offering, for those of you who aren’t familiar with Janus, he’s the god with two heads – one that looks behind him and one that looks forward. Appropriately he is the god of doorways and transitions – and now of course in a modern application, parking too.

“It’s very symbolic of the communication capability of our systems,” says Craig.” In essence our new software is fully compatible with our older parking equipment, while at the same time it is able to integrate with our newer technological offerings as well, looking both back and forward at the same time. “The software is Windows 8 based and allows for the management of multiple carparks at once, on a control, reporting, and management level – so it’s a product designed with the future very much in mind.” Customer facing wise the product range also sports a cutting edge new look that is very much in keeping with today’s trends. The lane stations and APS’s (Automatic Payment Stations) have been designed with a modern look and feel and incorporates additional features such as touch screens and IP based High Definition Advertising Displays as options. As part of its customer assistance program they also come complete with a Customer Guidance LED system to assist users through the payment process. So far our new stations have been rolled out at The Glen Shopping Centre, Sunninghill Hospital as well as Hosea Kutako airport in Namibia with many more on order.

Another new offering being introduced by Zeag (SA), HUB’s South African entity is ParQube. This Pay on Foot solution is a well-priced range suitable for small to mid-size applications comprising of 2-8 peripherals. “It’s designed for sites that need to be JMS compatible, but may not require all the flexibility of a fully fledged ZEAG system.”

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2015/04/24 8:55 AM

interview

The other new development that has been successfully tried and tested is a retailer based incentive scheme linked to our parking systems. “In 2013 we were approached by both the one of our larger clients and PicknPay with a view to offering them a parking system discount solution for PicknPay’s new flagship store in Cape Town. This validation system was to be flexible in operation and was to be designed so as to inconvenience the customer as little as possible, recalls Craig. After initial meetings with both the client and PicknPay we agreed on integrating Zeag’s Valiscan encrypted barcode offering into their Point of Sale system. The reason for choosing this solution is that it offered the most convenient method of validation (discounting) of parking for PnP’s customers in that the validation barcode was automatically incorporated into all till slips. Working together with The Client, PnP and PnP’s Point of Sale developers we integrated the decryption and barcode generation software into their cash registers in time for the stores opening in December 2013. The software incorporated features where various discounts, such as Time off (minutes), Cost off (Rands) or Percentage discount (50%, 100% etc.) could be applied to the barcode. Included into the software configuration was an additional feature allowing for a minimum spend criteria for each POS transaction before the barcode would be printed. “It’s simple to use,” says Craig who explained the steps. “Take a ticket at an Entry station when you enter the car park and once you have finished shopping at PnP you take your ticket and till slip to the APS. You insert the parking ticket into the APS station and present your parking discount barcode to the barcode scanner on the APS face to facilitate your discount, and away you go.” This solution has proven to be very successful in operation and has met and exceeded both the clients and PnP’s expectations. It has also proven to be a viable local solution that can easily be rolled out by other large retailers such as Shoprite Checkers, Woolworths and Spar, amongst others. The initial software integration costs are certainly offset by the improved discount process and customer ease of use. PicknPay together with various property owners have now rolled this system out to East Rand Mall, East Point as well as Westville Junction. Other stores are also in the pipeline for rollout.

CONTACT: +27 11 794 4525 www.hubparking.co.za

It’s proven to be a win-win any which way you look at it. Janus would no doubt approve.

SOUTH AFRICAN PROPERTY REVIEW

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2015/04/24 8:55 AM

editorial

Elevating solutions Solutions for Elevating (Pty) Ltd provides insight into SANAS Regulations and the implications thereof

roviding a comprehensive consulting service, Solutions for Elevating (Pty) Ltd is the go-to company for lifts, escalators, hoists and moving walkways. Solutions for Elevating (Pty) Ltd (S4E) provides a comprehensive lift-consulting service that ensures assets are properly maintained and fit for purpose. Furthermore, activities carried out by suppliers are in line with required industry safety standards. The projects division of S4E specialises in project management of new lift and escalator installations. This includes professional management of the full process with regard to specification and design, new equipment installation, replacement of equipment and modernisations of lifts and escalators. S4E’s goal is to provide professional technical advice and oversee the lift and escalator portfolio of its customers in a costeffective manner. S4E specialises in all aspects of managing the contractual and non-contractual maintenance and repairs between client and provider. S4E is a South African National Accreditation System (SANAS) accredited inspection body (No. LIFT0019) and is registered as a lift inspection body as required by the Lift, Escalator and Passenger Conveyor Regulations of 2009. S4E’s inspectors are accredited by and registered with the Engineering Council of South Africa (ECSA) in terms of the Engineering Profession of South Africa Act No. 46 of 2000.

SANAS in view On 27 September 2010, the Department of Labour (DoL) published an amended set of Regulations, which included the introduction in Section 6(2) that in future all regulatory inspections were to be carried out by “an inspection service provider”. In addition, Section 9 included a requirement that registration with an accreditation body was required. Prior to the above change in legislation inspections were required; these were contracted to inspectors – individuals who, through a process of review, were awarded the status of “lift inspector” by ECSA. No registration with an accreditation body was required. In fact, individuals who were lift inspectors could contract directly with property owners to carry out said inspections. As with most issues of this nature in South Africa, the requirement for accreditation preceded the platform that allowed the industry to fulfil the requirement and interim arrangements were needed. As a result of this the following timeline was applied: ●● The industry was notified that SANAS would be the official accreditation body. ●● All “lift inspectors” were invited to express a formal interest in achieving “accredited” status before 1 December 2012. In return, exemption certificates were issued on application, allowing said persons to operate as de facto lift-inspection

bodies while initiating the internal process to obtaining accredited status. ●● The deadline initially set for accreditation to be achieved was 30 November 2013. Again, the timelines proved to be overly ambitious and the deadline date had to be reviewed, with exemptions extended to 27 November 2014. At this point it was made clear by the DoL that: ●● This date was non-negotiable. ●● As such, after 27 November 2014, in order to comply with the Regulations property owners could only contract inspection service providers to carry out inspections as required under the Occupational Health and Safety Act of 1993 if: a) They had been accredited by SANAS after undergoing a rigorous audit and review process; b) They were certified by the DoL to operate as an inspection service provider in terms of the Regulations of 2009 The implications for the property industry are as follows: ●● Post the deadline date, only inspections carried out by certified inspection service providers are valid in terms of the Act. ●● Any inspection carried out by a body or individual that has not been officially certified by the DoL to do so is deemed not compliant. ●● Before the DoL will consider certification the organisation needs to be accredited by SANAS. ●● The required bi-annual regulatory inspections now have to be carried out by one of four certified organisations currently accredited. ●● By definition, as the inspections and certification following the inspections represents a kind of “roadworthy certificate”, the implications for the property industry are significant.

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SOUTH AFRICAN PROPERTY REVIEW

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The business boys We got inside the minds of business moguls JT Foxx and George Ross to find out about their entrepreneurial flair and what makes them tick By Candace King

“I feel that South Africa is lacking leaders, role models, heroes and so forth – entrepreneurial leaders are few and far between”

he one is a top wealth coach, serial entrepreneur and real estate investor; the other is the Executive Vice President and Senior Counsel of the Trump Organization. JT Foxx and George Ross make a dynamic duo when it comes to business and real estate. The South African Property Review had the privilege of sitting down with these two success stories to discuss their careers, strategies and goals.

JT Foxx Q What are your thoughts on South Africa and its property market?

BELOW Wealth coach JT Foxx with Executive Vice President of the Trump Organization George Ross

I feel that South Africa is lacking leaders, role models, heroes and so forth – entrepreneurial leaders are few and far between. I think people are afraid to speak out in this country. I believe a new wave of small businesses and entrepreneurs is going to drive the country forward. In terms of property, I have done a lot of business here, and I tell people to think American and act South African. People in this country love to say they can’t – those who do are those who succeed. In my opinion, the South African market is the easiest place to do business in property on a global scale. The key to successful real estate investing is marketing and branding when doing deals. The regeneration of property is a key area to get involved in. The lower end of the South

African population is moving into the middleclass bracket, which is an attractive sector right now.

Q What have you learnt about the property market? Property is a long-term game – and it’s all about results. I learnt from Donald Trump that in this industry you need partners. One of the biggest mistakes that people make in property is they think that without money they shouldn’t even look at property further. I believe people should invest in partners and not in money. You’re always going to run out of money, so rather invest in people. As a result, I live by three things: loyalty, relationships and results. People need to stick to the fundamentals of property – it will always be a safe and attractive investment.

Q Do you think that property is a wise investment? More millionaires have been created globally because of property than any other asset class. It’s cyclical, so the key is to make money when you buy. Real estate is about two things: the numbers and the grind. Great deals don’t come to you; you have to make a good deal happen. If the market is hot now, you are too late. If it’s down then it’s a good time to invest.

Q What inspiration can you provide for property professionals? It has taken me 24 years to become a success so never say you can’t. Rather say tomorrow I’m going to do it. Someday is not a day in the week. Stop talking and get it done. I run my real estate business like a McDonald’s – I run it as a system. Do ground work and analyse the value of the deal at hand.

Q What are your predictions for the South African property sector and your future plans? The South African property market will continue to go up because of demand. More foreign investment will assist in this growth. The country needs to get its head around its problems, then it will be very successful. As for my future plans, I will be releasing my first book, Millionaire Underdog.

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interview

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2015/04/23 4:12 PM

interview

Q What are your thoughts on “My best property deal thus George Ross Q What are your South Africa’s property industry? far has been 40 Wall Street. thoughts on property? South Africa has tremendous opportunities Donald paid one dollar per Real estate traditionally has the best lasting but there is difficultly right now because of value. It’s tangible and finite; you can touch it. what’s going on. Better leadership is definitely square foot; now it’s worth Property is always viable; it’s just a question needed. South Africa’s history has also caused US$500-million” of identifying opportunities at particular problems for the country. times. My best property deal thus far has been 40 Wall Street. Donald paid one dollar per square foot; now it’s worth US$500million. Everyone said it couldn’t be done. We caught the market at the right time. I’d say the winning formula included perseverance, courage and negotiation.

Q Your experience advising Donald Trump? It’s been wonderful. Donald is such a dynamic and creative individual. It’s challenging to work with him. I don’t want to be like him but his success is admirable.

Q What makes a great businessman and investor?

The ability to communicate, negotiate and recognise what works is key. One should develop a level of trust that will result in success. When conducting deals, find out what the individual is involved in and work on that. Analyse human nature.

Q Your plans for the future?

To live to 2016! I’m not keen on retiring – age is a frame of mind. I want to give back to society and charities.

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interview

Architects Interior Architects Master Planners www.paragon.co.za

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2015/04/24 9:19 AM

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Be moved by PRASA With its real estate division on a roll, PRASA is on the move to become more commercialised and integrated with the commuters it serves By Nthabiseng E More and Candace King

ABOVE Tara Ngubane, Chief Executive Officer of PRASA CRES BELOW The New Parade Concourse at Cape Town Station OPPOSITE Lucky Montana, Group Chief Executive Officer of PRASA

hile its primary mandate is angled on the movement of people, the Passenger Rail Agency of South Africa (PRASA) found a gap: an opportunity to develop real estate to boost revenue and improve the lives of the people it moves. A new PRASA division, Corporate Real Estate Solutions (CRES), was established in 2010 and tasked with managing PRASA’s property portfolio. In light of this, PRASA has grown from strength to strength in recent years. In November 2012, PRASA CRES’s revenue was R220-million; as of 31 March 2015, this figure has more than doubled to R450-million. “Due to our existing captured market, our real estate business boasts a unique advantage,” says Tara Ngubane, Chief Executive Officer of PRASA CRES. More than 200 000 people enter Park Station daily, she says. PRASA CRES’s strategy is based on four pillars: acquiring development leases; commercialisation; disposal of non-core assets, and integration. “We have identified 120 high-yielding development leases,” says Ngubane. “These developments are located in prime areas, which is key to our mandate.” In terms of commercialisation, Ngubane notes that PRASA CRES has identified stations boasting vacant land where retail can be developed. This strategy has been implemented at various train stations nationally – Park Station in Johannesburg, Cape Town Station and Pretoria Station.

“We are currently busy with construction at the Mabopane Station, which constitutes the development of a R120-million concourse linkage as well as the introduction of a Super Spar as an anchor retail tenant,” says Ngubane. “In Pretoria East and West we are also busy with major developments.” She says PRASA CRES is disposing of its non-core assets, including its housing portfolio. This disposal is subject to approval of the Minister of Transport. With regards to integration, PRASA CRES is currently developing master plans for the redevelopment of the Park, Cape Town and Pretoria station precincts to respond positively to the integration of the cities and the railway land while at the same time realising value. “We are working very closely with the various municipalities on our integration pillar,” says Ngubane. “The master plan for the development of Park Station is currently in the conceptual stage – it’s definitely a longterm plan and speaks to the City of Johannesburg’s Corridors of Freedom mixeduse density node development initiative.”

Modernisation in the Mother City With the element of commercialisation key to its projects, PRASA has been on a massive modernisation programme over the past five years, procuring 600 new trains for Metrorail and 70 powerful locomotives, upgrading stations and improving the signalling system.

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advertorial The most recently completed portion of this programme is the upgrade of the Cape Town Station’s Parade Concourse. Originally built in 1966 as the “non-white” station of Cape Town, the Parade Concourse was given a minor interior upgrade at a cost of R4-million in 1994 following the construction of the station deck taxi rank by the City of Cape Town. This initial upgrade was focused on doing away with the apartheid legacy of dividing the station along colour lines and improving commuter access to operational areas of the station. Over the past 18 months, a total of R126-million was spent on upgrading the Parade Concourse at the Cape Town Station as part of the R1,3-billion National Station Upgrade Programme. The new and expanded Parade Concourse is a 12 350m² area, with 4 002m² available for commercial use. The overall finishes of the concourse are world-class and in keeping with the same standard as the City Concourse, thus dispelling any potential confusion of it being of a lower standard than the rest of the upgraded areas of Cape Town Station. Group Chief Executive Officer of PRASA Lucky Montana is proud of the work that has been done. “We aim to achieve complete integration of all our commuters, and the building itself is very similar to the Main Concourse of the station. It gets natural light and is very welcoming to commuters,” he says. The new section not only provides access for commuters but also forms a shopping and leisure facility, with stores and restaurants in the walk-through section of the building.

PRASA has already secured leases with major banks for ATMs and a number of retailers to provide services on this concourse. These include Vodacom, Steers, Pepkor, Debonairs, Zebros Chicken, and several local businesses. Interest has been received from the Department of Communication, SASSA and the Department of Labour for government services. “There are lift facilities, ticket stations and all the commercial conveniences of modernday living,” says Montana. “This part of the station will also be a walk-through for people to move from one side of the station to the other, thus bringing feet into the station and boosting businesses in the building. Access to information is a priority to meet global standards such as those in Rome, London and other major international rail networks; thus we tried to enhance the commuter experience.” An estimated 393 jobs were created during the 18-month construction period of the Parade Concourse, and it is expected that 200 permanent jobs will be created by the commercial tenants. The upgrade has not affected business at the Station Deck, which houses the biggest taxi rank in the City of Cape Town. Montana acknowledges that although the City of Cape Town manages the rank, it forms an important part of the station’s heritage. “The taxi rank is being leased to the city, which is maintaining it according to agreements with PRASA,” he says. “As such, hawkers are kept at the taxi rank at a nominal fee – they have always been here, so they get to keep their businesses and will not be hindered. If anything, they stand to benefit from the foreseen expected traffic increase to the station.” It is currently estimated that 150 000 passengers pass through Cape Town Station every day.

Moving with the challenges and the times PRASA recognises the challenges in the railway system. “One of the issues raised by commuters is the delays in trains, crime (security) and a lack of proper facilities such as clean toilets, as well as convenience issues,” says Montana. These, he explains are some of the issues that were taken into account with the new Parade Concourse and other station upgrades. As an example, he cites the installation of state-of-the-art automated speed gates that control ticket-holder access to the train terminals. “We are aware of ticket syndicates who sell train tickets on the black market, and with the new technology we will be able to curb some of those problems,” he says.

Similarly, the agency has long-term plans to maximise infrastructure capacity. “All Metrorail locomotives are being replaced,” explains Montana. “Currently 20 new trains are being sourced from Brazil, and 500 will be manufactured in South Africa. It is anticipated that within a 20-year period the entire fleet would have been changed.” In order for the trains to be manufactured, a new production plant will be built in Nigel and land has been procured for this purpose. In the long term, the plant will be capacitated to export its trains to other parts of the world. Although it is a government agency, PRASA aims to achieve a level of selfsustainability and is putting a strong focus on its property portfolio. “We are in the process of buying back development leases, as there is minimum monetary value from these,” says Montana. “Thus far we have already bought back 11 of the leases and are looking to increase property portfolio revenue from R200-million to R1-billion by 2018. This will assist in subsidising the cost of train services by attaining income from the property portfolio.” PRASA’s vision is to position rail as the backbone of public transport in the country, and the upgrades that are being undertaken are testament to this as the people of Cape Town will have access to all forms of public transport. “Our goal is to continuously increase our revenue, modernise our stations and grow new rolling stock,” says Ngubane. “We are investing in the future as well as changing the demographics at our stations.”

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Into Africa Through its in-depth research reports, PwC highlights the African continent as the brightest market of opportunity

Stanley Subramoney, PwC Head of Strategy for Southern Africa

Kalane Rampai, PwC Leader for Local Government for Southern Africa

t the African CEO Forum of 2015 in Geneva, PwC launched the first edition of its “Into Africa – The Continent’s Cities of Opportunity” report, which details the potential of 20 African cities that PwC believes to be among the most dynamic and futurefocused on the continent. The report is part of PwC’s global “Cities of Opportunity” series and its analysis is structured around the critical issues of the business community as well as those of the office holders and other public authorities who are responsible for improving the collective life of each city examined here. The African continent is crossed by five trends: demographic change, urbanisation, technological change, the transfer of economic power and climate change. Urbanisation is of particular importance: by 2030, half of Africa’s population will live in cities, where economic activity and growth will be focused and which will become communication centres and hubs for social trends. The global megatrends are colliding across Africa. The growing middle class, strong demographic growth with an improving age mix, technological innovation that we have already seen in mobile payments and a growing choice of investment partners from the global south as well as fast-paced urbanisation are all shaping what the future of Africa will look like. “We have sought to answer ‘what makes an African city one of opportunity’ by developing a set of questions that investors should ask themselves, and themes that city politicians and officials can work on to improve their competitiveness,” says Stanley Subramoney, PwC Head of Strategy for Southern Africa. “This report assesses how the cities are performing not only on a regional level but also on an international one, which is hugely important in terms of these cities being able to compete and prosper on both of these stages.” PwC studied four indicators: the economy, infrastructure, human capital and population/ society (which itself contains 29 variables).

From this analysis, two rankings emerged: “general” and “opportunities for cities”. “We believe that these cities demonstrate the relative strengths and weaknesses of Africa’s urban future,” says Kalane Rampai, PwC Leader for Local Government for Southern Africa. “Our evaluation and reevaluation of that future is, of course, a continual work in progress.”

Global megatrends will drive growth opportunities The global megatrends identified will drive growth opportunities in the real estate industry across the African continent over the next five years. “The pace of change in the world is accelerating, with a series of transitions, known as global megatrends, transforming the way in which business and society operate,” says Ilse French, Real Estate Leader for PwC Africa. “More and more, investors around the world are seeing the growth potential of Africa, in particular its substantial demographic edge. Economic growth, improving political stability and ongoing investments in infrastructure are opening up markets that were previously inaccessible.” Two publications recently released by PwC consider the drivers for real estate growth in Africa and highlight existing and emerging trends in African real estate that are shaping the “African opportunity” for investors. PwC’s inaugural publication entitled “Real Estate: Building the Future of Africa” considers the impact of global megatrends on the African continent. The aim of the report is to provide an assessment of the current state of the real estate industry across Africa and demonstrate how the megatrends will drive growth opportunities in key African markets. The report also considers the real estate market in 10 selected countries in subSaharan Africa. These country profiles provide insight into the local, regional and global influences on the real estate markets of individual countries, providing an illustration of the effects of the trends being felt at a national level.

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The report shows that the opportunities across the African continent are significant and span every sector. In almost all markets, the demand for high-quality retail, office and industrial space continues to outstrip supply as international and local occupiers respond to new economic opportunities. Huge shortfalls in residential property across the continent will give rise to private investment on a grand scale. Furthermore, a lack of local funding for infrastructure projects provides a platform for new private partnerships with the public sector. Shifting demographic trends and changes in consumer behaviour are also likely to create a huge demand for new and different real estate by 2020 and beyond. According to the report, we will also see the entry of more specialist investors into the market. Projected forecasts of 20% net annual returns from investing in shopping malls, office blocks or industrial complexes in countries across the continent continue to draw in new investors. “It would be easy to underestimate the impact of global megatrends on Africa,” says French. “After all, Africa’s real estate markets have traditionally lagged behind developed and many developing economies. Levels of investment in real estate in Africa are low by a global standards, while significant challenges exist in exploiting potential opportunities. However, our research suggests the impact of global megatrends on Africa will be huge. This will create a diverse range of opportunities for the real estate industry Africa – opportunities that often differ from those available in more developed markets.” The global impact of these trends is supported by the findings of a second report, “Global Emerging Trends in Real Estate® 2015”, which is an annual forecast of global real estate investor sentiment published jointly by the Urban Land Institute and PwC. The report, based on the views of senior global property investors, identifies several “megatrends” affecting markets around the world, each of which has implications for

development and investment: increasing urbanisation (the majority of the world’s population now lives in urban areas); demographic and social changes (including a significant rise in the number of older and elderly people); technological advancements; the rise of economic power in emerging markets (largely as a result of an expanding middle class); and climate change.

Investing in Africa “There is a wall of capital targeting real estate opportunities in many markets across the globe,” says PwC Global Real Estate Leader Kees Hage. “The search for better yields has taken some investors into development and secondary markets, moving them up the risk curve. But investors must strike a balance between the need to deploy capital and the ability to achieve good returns, at a time when there is such a difference in the economic conditions across the globe. Real estate investors have a wide range of issues to consider when making investment decisions. What is clear is that they may have to approach those decisions in a completely different way in the future. Capital allocations may need to be made to a wider range of asset types than ever before, ranging from retirement and student housing to data centres and self-storage.” “As real estate investors around the world are faced with the challenge of finding value and returns at a time when core property is becoming overpriced in almost all markets, Africa is now of increasing interest,” says French. “We believe African that real estate has unique drivers for growth.”

Ilse French, Real Estate Leader for PwC Africa

PwC Global Real Estate Leader, Kees Hage

SOUTH AFRICAN PROPERTY REVIEW

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interview

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2015/04/24 8:49 AM

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Positive property outlook With the world economy improving, global markets are appearing more attractive for property investors, especially those hailing from southern Africa

George Radford, Director: Africa at IP Global

Originally from England, Radford boasts over 10 years of property investment experience, holds a BSc (Hons) in Business in Property, and has been a Chartered Surveyor since 2008

ccording to Paris-based research body the Organisation for Economic Cooperation and Development, the outlook for the world economy improved in the early months of 2015 as a result of lower oil prices and the provision of additional stimulus by several central banks. Against the global backdrop of improved economic sentiment, several markets around the world appear attractive for property investors. According to a new report from property investment firm IP Global, the United Kingdom and Australia remain attractive destinations for southern African investors looking to expand their property portfolio. IP Global is an end-to-end property investment company that sources worldwide real estate with growth potential. The unique IP Global model offers early stage financial commitment to developers and enables international investors to strengthen their portfolios through property. IP Global’s team of international property professionals are experts in every aspect of their field. The IP Global approach uses rigorous research to identify opportunities and streamlines the entire process of property investment. IP Global is dedicated to building long-lasting partnerships and makes a strong financial commitment to every single investment property that it recommends. “Property investors in South Africa and Zimbabwe often have an emotional or historical link to the UK or a personal connection with family or friends who have moved to Australia,” says George Radford, Director: Africa at IP Global, which has offices in Cape Town and Johannesburg. Originally from England, Radford boasts more than 10 years of property investment experience, holds a BSc (Hons) in Business in Property, and has been a chartered surveyor since 2008. He moved to IP Global in Hong Kong in January 2011, where he worked with Asiabased investors in Hong Kong and China,

before moving to Cape Town, South Africa in January 2014 to open the IP Global Africa office. Radford is now the director of IP Global in Africa and specialises in providing investors with strategic real estate investment advice across a variety of global markets, including the US, UK/European and Asian markets. “In years gone by, the trend was to purchase real estate in the UK, especially in London, for personal use – but today more and more people understand the benefits of buying property in strong, stable cities as part of their long-term investment plan,” he says.

According to a new report from property investment firm IP Global, the United Kingdom and Australia remain attractive destinations for southern African investors looking to expand their property portfolio Royal prospect The UK government’s drive to create a northern powerhouse of jobs, investment and prosperity, closing the economic gap between north and south, is expected to bring more than £18-billion to the region by 2030. This has contributed to the positive economic growth of the country’s second city, Manchester, which has become a hub for the digital and new media sector, attracting firms such as the BBC and Google. In addition, the financial services sector now contributes more than 21% of the city’s gross value added (GVA) and 65 FTSE100 companies have set up shop there. The rapid population growth of the city has seen a boom in the construction business as the demand for residential units increases.

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According to IP Global’s 2015 Global Real Estate Outlook (Q1), property values are rising quickly, with an 8,4% year-on-year increase in Q4 2014. Current prices are considered 18% below peak and growth is expected to increase beyond the 22,2% forecast for 2018.

The small slowdown in growth at the end of 2014 should be put in the context of an average price increase of 11,1% throughout the year

Australia is now one of the top three destinations for Chinese investors; this has helped drive the Sydney residential sector

London locations, however, are still showing particularly high potential for strong returns as price growth spreads from the city centre. The UK capital’s population has just surpassed its 1939 peak of 8,9-million, and is now expected to reach about 11,3-million by 2050. The city meanwhile continues to wrestle with a housing shortfall that is a long distance from meeting demand. The small slowdown in growth at the end of 2014 should be put in the context of an average price increase of 11,1% throughout the year. Forecasts still point to growth of 22% in the years up to 2019.

Market down under Elsewhere in the world, Australia is now one of the top three destinations for Chinese investors; this has helped drive the Sydney residential sector. The city continued to lead the national property market with

13,1% annual growth across all dwellings in the year to October, while the median apartment prices were up by 9,6%. Rental markets remained strong, despite the high price growth, with typical yields at 4,5% in the same period. Brisbane, now a key economic hub for the Asia-Pacific region, is living up to its status as “Australia’s new world city”. The economic success saw land values in the inner city suburbs rise by between 10% and 20% last year, and the surge in population growth has pushed the vacancy rate down to 2,2%. This ensured rentals yielded the forecasted five percent for Q3 despite the rise in market prices. Similar growth is also found in Melbourne, the popularity of which is adding more than 90 000 new residents annually. Apartment prices rose by more than five percent in Q3 2014, continuing a decade-long growth trend. The property market remains attractive, especially since Melbourne has been voted “the world’s most liveable city” for the past four years. Added to this is the government’s commitment to invest AUD$11-billion into the city’s public transport infrastructure.

Key findings • Favourable demand picture keeps interest high in London property. • Manchester saw a 10,4% year-on-year increase to Q4 2014. • Population growth in Brisbane saw rental yields reach five percent in Q3 2014. • Vibrant rental market in Sydney and Melbourne kept yields at between 4,5 and five percent.

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The Colonial Mutual Building, Durban Reportedly the tallest building in South Africa at the time, the Colonial Mutual Building in Durban, KwaZulu-Natal is one of the city’s many iconic structures

part from its rich history and vibrant culture, sunny Durban is also home to a host of grand buildings with great heritage significance. One such structure is the Colonial Mutual Building on 330 West Street in Durban Central. Built for the Colonial Mutual Life Assurance Society by Sydney-based architectural firm Hennessy & Hennessy, the Colonial Mutual Building was allegedly the tallest building in South Africa when it was erected in 1933, standing at almost 57m. Construction on the building began in 1931 and remains a prime example of the Art Deco style with Romanesque features. With 14 storeys (including the basement), it was the so-called tallest until 1939. The building is described in detail in Architecture In South Africa Vol II (1934), which highlights that “the ground floor is devoted to an arcade with shops and the society’s offices. The basement has a first-class restaurant with mechanical ventilation fully air-conditioned. The upper floors are occupied as offices. “The bearing capacity of the soil of the site was deemed low, and a reinforced concrete raft foundation was therefore used.

The superstructure is of steel framing with brick and stone facing. The floors are of reinforced concrete of a special light design, covered with end-matched jarrah blocks and cork tiling. The main hall floor is covered with india-rubber tiles. The roofs are of Etruscan tiles and short asphalt flats. Ducts were incorporated in the design for pipes and wires.” The book notes that the restaurant “has entrances from West Street and from the arcade, as well as a service way to kitchens. The lighting is part of the decoration, being semi-indirect and reflected from the ceiling. The volume of light and its colour is under the control of the musicians, thus music and light are made to harmonise. In the centre are two fountains also having softly changing lighting effects. “The orchestra platform is situated at one end. Careful calculations were made to ensure good acoustics – both in relation to musical sounds and the noise from kitchens and crockery – with complete success. Cloakroom accommodation is provided for both sexes.” In Sydney, Australia a similar Colonial Mutual Life Building exists.

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statistics

Tax update Dear members, please take note of the following tax tables and property transfer rates

Transfer duty rates for property sales concluded on or after 1 March 2015

New tax tables 2015/2016

Property value

Taxable Income

Transfer duty payable

R0-R750 000

Tax Rates

R0-R181 900

18% of taxable income

R750 001-R1 250 000

R181 901-R284 100

R1 250 001-R1 750 000

R15 000 + 6%

R284 101-R393 200

R59 314 + 31% of the amount above R284 100

R1 750 001-R2 250 000

R45 000 + 8%

R393 201-R550 100

R93 135 + 36% of the amount above R393 200

R2 250 001 and above

R85 000 + 11%

R550 100-R701 300

R149 619 + 39% of the amount above R550 100

R701 301 and above

R208 587 + 41% of the amount above R701 300

Notes

2015/2016

R32 742 +26% of the amount above R181 900

Changes from last year Qualifying small business corporations: new tax table

Rebates Persons under 65

R13 257

Increased by R531

Taxable income

Secondary (persons between 65 and 75)

R20 664

Increased by R828

R0-R73 650

Tertiary (persons 75 and older)

R23 130

Increased by R927

R73 651-R365 000

7% of the taxable income over R73 650

Band unchanged

R365 001-R550 000

R20 395 + 21% over R365 000

Band unchanged

Persons under 65

R73 650

Increased by R2 950

R550 001 and above

R59 245 + 28% over R550 000

Band unchanged

Secondary (persons between 65 and 75)

R114 800

Increased by R4 600

Tertiary (persons 75 and older)

R128 500

Increased by R5 150

Tax thresholds

R23 800

No change

Taxable turnover

Persons 65 and older

R34 500

No change

R0-R335 000

No change

Dividends

R335 001-R500 000

Medical aid tax credits per beneficiary First two beneficiaries

R270/month each

Increased R13

Third and more

R181/month each

Increased R9

New SBC tax rates

Change vs prior year

Band raised by R185 000

1% of taxable turnover over R335 000

Band raised by R200 000

R500 001-R750 000

R1 650 + 2% over R500 000

Tax rate decreased by 2%

Over R750 000

R6 650 + 3% over R750 000

Tax rate decreased by 3%

Note: This is a substantial beneﬁt for micro businesses

Decreased by R0,12/km

No change

Logbook compulsory

Other taxes 13,65% maximum

Property value

Transfer duty payable

Savings or extra duty payable

Old

New

R750 000

R4 500

R1 000 000

R12 000

R7 500

R4 500 R7 000

R1 500 000

R37 000

R30 000

Slight increase: 0,32

R2 000 000

R77 000

R65 000

Savings

R3,18/km

Travel allowance

Capital gains tax: individuals/special trusts

Band raised by R3 650

Savings or extra transfer duty payable

Business travel: tax-free

Travel allowance still taxable at 80%

Note: Beneﬁts to taxpayers are marginal, and restrictions apply

Persons under 65

Up to 8 000km per annum

Change vs prior year

Turnover tax for micro businesses

Interest exemption

Taxed at 15%

New SBC tax rates

R12 000

Capital gains tax: companies

18,6%

No change

R2 300 000

R101 000

R90 500

R10 500

Capital gains tax: other trusts

27,31%

Slight increase: 0.65%

R2 500 000

R117 000

R112 500

R4 500

Increases by 30,5 cents per litre

R3 000 000

R157 000

R167 500

R4 500

Cigarettes

Increases by 82 cents a packet

R3 500 000

R197 000

R222 500

R25 500

Wine (unfortified)

Increases by 15 cents a bottle

R4 000 000

R237 000

R277 500

Spirits

Increases by R3,77 a bottle

R4 500 000

R277 000

R332 500

Beer

Increases by 7 cents a 340ml bottle

R5 000 000

R317 000

R387 500

Road Accident Fund (RAF)*

Increases by 50 cents a litre

R10 000 000

R717 000

R937 500

Extra Payments

Fuel levy*

R40 000 R55 500 R70 500 R220 500

* Total increase in fuel price is 80,5 cents per litre from April

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interview

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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

East London

14 May 2015

AGM/Eskom Breakfast Presentation

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

Gauteng

28 May 2015

Networking Event

Mpumalanga

29 May 2015

Networking Event

Gauteng

30 May 2015

PWC Half-Day Workshop

June Region

Date

Event

Western Cape

4 June 2015

Green Building Breakfast Session

Gauteng

9 June 2015

Research Breakfast

Gauteng

11 June 2015

Networking Event

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

Gauteng

7 July 2015

Introduction to Brokering Seminar

Gauteng

15 July 2015

Regional Meeting

East London

23 July 2015

Networking Event

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

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Events and dates subject to change.

August Region

Date

Event

Gauteng

11 August 2015

PWC Breakfast

KwaZulu-Natal

11, 12 and 14 August 2015

ECPP Training

Polokwane

12 August 2015

Breakfast: Town Planning Scheme

Polokwane

12 August 2015

Breakfast Session

Gauteng

13 August 2015

Lease Agreement Workshop

East London

14 August 2015

Golf Day

Gauteng

14 August 2015

PWC Power Hour Breakfast

Gauteng

17 to 21 August 2015

FMP Training

East London

19 August 2015

Introduction to Brokering Seminar

Port Elizabeth

19 August 2015

Regional Meeting

TBC

20 August 2015

Introduction to Brokering Seminar

Gauteng

20 August 2015

SAPOA HR Meeting

Mpumalanga

20 August 2015

Networking Breakfast

TBC

20 August 2015

SAPOA Board Meeting

KwaZulu-Natal

25 August 2015

Golf Day

Gauteng

25 to 28 August 2015

ECC Training

Gauteng

27 August 2015

Networking Event

Gauteng

28 August 2015

MOMFA

September Region

Date

Event

Port Elizabeth

1 to 3 September 2015

ICPP Training

KwaZulu-Natal

3 September 2015

Negotiation Skills Masterclass Programme

Gauteng

7 and 8 September 2015

ICPP Training

TBC

7 to 11 September 2015

ECPP Training

Port Elizabeth

8 September 2015

Golf Day

Western Cape

8 to 11 September 2015

ECPP Training

Polokwane

10 September 2015

SANS 10400 Workshop

Gauteng

15 September 2015

Retail Trends Report Breakfast

Port Elizabeth

16 September 2015

Council Meeting

Port Elizabeth

17 September 2015

Networking Event

Mpumalanga

17 September 2015

Golf Day

TBC

17 and 18 September 2015

National Council Meeting

Port Elizabeth

22 September 2015

Golf Day

Mpumalanga

23 September 2015

Networking Dinner

Western Cape

26 September 2015

Property Development Workshop

Gauteng

28 to 30 September 2015

IPMP Training

Gauteng

29 September 2015

Legal Breakfast

KwaZulu-Natal

29 September 2015

SANS 10400 Workshop

KwaZulu-Natal

30 September 2015

SACSC Annual Congress

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October Region

Date

Event

Gauteng

1 and 2 October 2015

IPMP Training

Western Cape

6 to 8 October 2015

ICPP Training

Gauteng

7 October 2015

Media Lunch

Gauteng

8 October 2015

Legal Breakfast

Polokwane

15 October 2015

Golf Day

KwaZulu-Natal

15 October 2015

Breakfast Presentation

Gauteng

17 October 2015

Research Breakfast: Industrial Industry Report

Gauteng

20 October 2015

Industrial Vacancy Report Breakfast

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 Board Meeting

Gauteng

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

Gauteng

27 November 2015

PWC Half-Day Workshop

Port Elizabeth

29 November 2015

Gala Dinner

December Region Buffalo City

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Event Developersâ&#x20AC;&#x2122; Gala Dinner

2015/04/28 2:56 PM

fun & quirky

Eusebius McKaiser We explore the eccentric mind of Eusebius McKaiser, political analyst, broadcaster, lecturer and writer, in 10 questions By Candace King Photograph by Mark Pettipher

Q What gets you going every morning? My partner’s smile – but if still snoring, then definitely a heavy weights workout at the gym!

Q What inspires you?

Mother Teresa … jokes! No-one inspires me. I wake up because I have a duty to me to be the best possible Eusebius.

Q The motto of your life would be? Mottos are cheesy. Next question!

Q Passions and hobbies?

Reading. Reading. Reading… And lots of clubbing and dining with mates.

Q Favourite destination in the world? Johannesburg. Seriously. That’s despite having been to about 20 countries. London is a close second, though.

Q Who are your role models?

I don’t mind being seen as a role model but honestly, I don’t believe in role models. Don’t make someone else’s life a template; do you.

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

A dog, sadly. Not sure which breed though; depends on what I had for breakfast. My bark and bite scare politicians, especially the ones who like Botox.

Q Best thing that has

ever happened to you?

Genetic good luck mixed with poverty: you can excel but your background keeps you real.

Q Places you’re dying to visit?

Brazil – so much in common with us, and some gorgeous people to feast on … with the eye only, of course.

Q What’s on your bucket list for 2015?

Finish two new book manuscripts and have one published already – and shock SAPOA delegates in Durban with my transformed-ish body, compared to when we saw each other in Cape Town last year. SOUTH AFRICAN PROPERTY REVIEW

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off the wall

Battle of the bold architects A Spanish and Belgian architect go head to head with rival designs of a sustainable residential tower in Taipei By Candace King

Menis vs Callebaut Architects Fernando Menis/Vincent Callebaut Location Taipei, Taiwan Use Luxury residential condos/42 luxury apartments and facilities Status Project 2010 (restringed tender)/under construction Client Private (confidential)/BES Engineering Corporation, Taipei Total built area 49 422m²/42 335m²

Vincent Callebaut prize-winning design led to ground being broken on the construction of Agora Tower in March 2013

t all started in November 2010, when Belgian architect Vincent Callebaut of Vincent Callebaut Architects was awarded the tender for the construction of a new sustainable residential tower located in Taipei, Taiwan. Part of an international competition, Callebaut was the first-prize winner with his revolutionary Agora Tower, a high-rise, ecofriendly, luxury residential building that’s green – and twisted. In response, Spanish architect Fernando Menis of Menis Architects has put forward his rival concept, which he entered into the same competition as Callebaut. Also an eco-residential tower, Agora Garden Tower is a 49 422m² bronze concrete skyscraper complex with rock-like walls, a cavernous

swimming pool and plants growing out of every crevice.

A rivalling and riveting design Menis’s design has also been proposed for a site in Taipei as a way to bring nature back into the city. The concept comprises a cluster of connected towers that rise up to 25 storeys in height. Within these, four different apartment types are proposed, with total areas of 250, 550, 750 and 1 000 square metres. As stated on Menis’s website, “This housing project is conceived as a fusion between the nature in the vicinity of the land and the primitive rocks emerging from the ground. As if they had always been there, the two elements of the building create a timeless symbiosis, where volumes and vegetation embrace each other to generate the volume that houses the spacious flats.” In the lower part of the design, nature is more prevalent, notes the website. The concept not only includes a residential component but also boasts socialising spaces where neighbours can meet and mingle and enjoy the view of the city, or simply relax in spaces that are situated inside the building, including a club, a swimming pool and relaxation area on the upper floors. At the top of the building, the floors feature unique penthouses that give the place a symbolic meaning.

The one that won Also known as Tao Zhu Yin Yuan, Callebaut’s Agora Tower is currently under construction in the Xinyi District of Taipei. Being developed by BES Engineering Corporation on one of the largest designated residential sites in the city, the building was designed with the goal of achieving Leadership in Energy and Environmental Design Gold certification. The 42 335m² building will feature 42 luxury apartments coupled with rooftop clubhouses, a swimming pool, gym facilities, and car parking floors. Having broken ground in March 2013, Agora Tower is scheduled to be completed by 2016. Menis’s design is, for now, just a proposal.

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interview

AFRICA’S FIRST GREEN CITY

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interview

Proactive Quantity Surveying 3

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

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