South African Property Review
PROPERTY SOUTH AFRICAN
April 2017
REVIEW
PROPERTY REVIEW - LogoTreatment.pdf
ONE on ONE
Regulating the valuers Professional associations
RICS
Working to a royal charter
PROFESSIONAL ASSOCIATIONS
In search of common ground
April 2017
SAIBPP
Transformation a long-term imperative
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2016/08/25
11:31 AM
SAPOA events
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SOUTH AFRICAN PROPERTY REVIEW
contents
April 2017
PROPERTY SOUTH AFRICAN
REVIEW
South African Property Review
PROPERTY SOUTH AFRICAN
April 2017
REVIEW
PROPERTY REVIEW - LogoTreatment.pdf
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2016/08/25
11:31 AM
ON THE COVER In focus: professional associations, valuers and transformation objectives
ONE on ONE
Regulating the valuers Professional associations
RICS
Working to a royal charter
PROFESSIONAL ASSOCIATIONS
In search of common ground
April 2017
SAIBPP
Transformation a long-term imperative
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From the CEO From the Editor’s desk News Legal update Protection of personal information and the working of the Information Regulator Planning and development Urban embrace: innovative rental accommodation in Johannesburg – Live Easy: move in, move up Careers day Exposing learners to property as a career choice Education, training & development Human resources development must be strategic in every organisation Confidence through professional standards Empowering woman in the built environment Valuations Global methods of measurement: the new way forward Valuations When integrity is non-negotiable One on one A woman who is not all about the numbers game Limpopo IDP Industry participation in the review of the City of Polokwane’s integrated development planning process 2017/18 SAIBPP Driving transformation in the South African property sector One on one In search of common ground Profiles Events What’s on Upcoming events Off the wall Standing tall, but how tall? FOR EDITORIAL ENQUIRIES, email mark@mpdps.com Published by SAPOA, Paddock View, Hunt’s End Office Park, 36 Wierda Road West, Wierda Valley, Sandton PO Box 78544, Sandton 2146 t: +27 (0)11 883 0679 f: +27 (0)11 883 0684
Editor in Chief Neil Gopal Editorial Adviser Jane Padayachee Managing Editor Mark Pettipher Copy Editor Ania Rokita Public Relations Officer Maud Nale Production Manager Dalene van Niekerk Designers Wade Hunkin, Eugene Jonck Sales Robbie Pansegrauw e: rob@mpdps.com Finance Susan du Toit Contributors Andre Fiore, Jaco du Plessis, Stanley Karombo, Rirhandzu Khoza, Marguerite Lithgow, John Martin, Lekgolo Mayatula, Vanessa Mitchell, Portia Mkhabela, Mumtaz Moola, Maud Nale Photography Mark Pettipher, Thabang Radebe, Val Adamson, Xavier Saer 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. Printed by Designed, written and produced for SAPOA by MPDPS (PTY) Ltd e: mark@mpdps.com
e: philip@rsalitho.co.za
from the CEO
Leveraging relationships through affiliations In nearly every country, there are numerous industry and professional associations that represent the interests of its members and organise the activities for the industry segment
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APOA is affiliated with other organisations that have a similar mandate in an effort to strengthen the country’s commercial space, while promoting certain business values and ethics. In this issue, we honour and celebrate the work of such organisations, and recognise the pivotal role they play. To stay ahead of property trends and current affairs, SAPOA relies on, and is supported by, a network of local prestigious affiliates. These include the Women’s Property Network, the South African Council of Shopping Centres, the Green Building Council of South Africa, the South African Institute of Black Property Practitioners, the South African Institute of Valuers, The Property Charter Council and the African Real Estate Society, and others. Through these relationships and the backing of a number of research and analysis listed property groups, residential property groups, urban regeneration associations and local online resources, SAPOA has
a wealth of information at its fingertips, which it is able to share in order to inform and enlighten its members. SAPOA also enjoys fruitful collaborations with global connections, such as the Building Owners Managers Association, the Property Council of Australia, Property Council New Zealand, Cities Alliance, Urban Land Institute, National Association of Real Estate Investment Trusts and the Royal Institution of Chartered Surveyors. These ensure that SAPOA has its finger on the pulse of the international property market. This type of skills set and information sharing allows SAPOA to support its members to its fullest capacity. Establishing strategic alliances with other associations in order to build both parties’ organisational capacity and further enhance and develop the relationship between the organised professionals, is to the benefit of the property industry as a whole. Neil Gopal, CEO
SAPOA President Nomzamo Radebe and I had the honour of meeting and engaging with RICS President Amanda Clack. SAPOA and RICS have been discussing the various ways they can strengthen the partnership they share as professional associations. We further discussed the work that RICS does with the International Management Association. We need to work together to
help
professionalise
facilities
management, which is a key area, particularly in South Africa. Clack was in the country at the end of February, ahead of the RICS Africa Summit, which took place on 23 and 24 February in Sandton, Johannesburg.
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SOUTH AFRICAN PROPERTY REVIEW
FROM LEFT Myself, SAPOA President Nomzamo Radebe, RICS President Amanda Clack and RICS Director of Business Delivery Jennifer Welsh
SAPOA events
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from the Editor’s desk
The times, they are a-changing! It seems that the property industry is seeing signs of change – but some say not fast enough
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When we start looking at the various professional associations that are affiliated with SAPOA, we find there is a great opportunity for networking as well as to develop fantastic cooperation channels. As I delved deeper into these associations, a pattern of professionalism soon emerged 4
SOUTH AFRICAN PROPERTY REVIEW
n this April edition, we focus on professional associations, and in my privileged position as editor, I get to speak to the CEOs of some of these associations. Recently, we were fortunate enough to welcome in the country Amanda Clack, the RICS President, who was also interviewed for us by SAPOA’s Public Relations Officer. The Royal Institution of Chartered Surveyors, founded in 1868, is a body that encompasses strict standards, so to be a member of RICS brings an endorsement of professionalism to your portfolio. We also talk to TC Chetty, RICS country manager, who through the RICS association with SAPOA is helping to drive change in the property industry in southern Africa. We also look at other associations, with the South African Institute of Black Property Practitioners’ President Nkuli Bogopa giving us some encouraging information and sharing her passion for transformation in the industry. As South Africa begins to grow towards a more inclusive, more transformed society, we thought it prudent to get a cities’ take on it from the South African Cities Network, an organisation that’s at the forefront of the nation’s thinking, developing research and urban planning. Here we speak to Dr Geci Karuri-Sebina who, as Executive Director of Programmes, has plenty to say about the complexities of transforming our urban and city landscapes. When we start looking at the various professional associations that are affiliated with SAPOA, we find there is a great opportunity for networking as well as to develop fantastic cooperation channels. As I delved deeper into the associations, a pattern of professionalism soon emerged. Take our interview with Gavin Cummins, Chief Executive Officer of the Valuator Group: what became apparent from our discussion was that, in order to grow in the property industry, it is imperative for developers, contractors, planners, facility managers and
investors to belong to some kind professional and governing body. For example, to be taken seriously as a valuer, both locally and internationally, you need to be RICSregistered: this is what gives you credibility in the marketplace. By following standards set internationally, you add value to your particular place in the property profession. Just as we were going to press, I was handed an article by the Australia And New Zealand Property Journal: a story about the adoption of measurement standard. If you recall, in our December 2016/January 2017 edition we reported on the International Property Measurement Standards’ Standards Setting Committee, which met in Sandton. It’s great to see that SAPOA’s involvement in this particular process has had some influence globally. In the article, part of the measurements standards being adopted states that these will be of great help to valuers. And so the cycle carries on. To take the theme of associations a step further, we even looked out for a slightly obscure body – the Council on Tall Buildings and Urban Habitat. This particular body has come up with a method of measuring how tall a building is, as well as what constitutes one. Also in this issue, we have our usual industry news, to which we are happy to receive contributions – especially from our affiliated associations. Please continue to send us your contributions of not more than 300 words (and a picture, if possible) via e-mail to editor@mpdps.com. We begin the countdown to 20 June 2017, when the SAPOA Annual Convention & Property Exhibition will kick off. Our July edition will be published early to celebrate the Convention – so please contact us now to get your advertising and advertorial contributions together on rob@mpdps.com. Enjoy reading this issue! Mark Pettipher, Managing Editor
SAPOA events
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industry news
Redefining the impact of project delays on cost
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roject delays can have a significant impact on trust and budget if not handled adeptly from the start – and now there are tools that can help to transform the challenge. When it comes to delays and the assessment of delay claims, there is limited guidance available. In fact, there is no clear path in terms of managing the issue, establishing process or determining who is ultimately responsible. The result is that many unexpected delays tend to end in disputes, which can potentially impact relationships and the success of a project. There has long been a need for the industry to have access to a simple, standardised process that walks all parties through the claim and finds equally simple answers to the problems. This need inspired the development of the Decision Support Framework, a tool designed to assist in the assessment of claims
from the start, eliminating indecision and uncertainty, and providing users with a clear route to resolution. The framework was crafted over a number of years, and was designed to be easy to understand and capable of managing claims across industry and incident. The Decision Support Framework is currently being integrated as part of the Association of South African Quantity Surveyors’ member tool-kit via continuous professional development training courses, which are being offered around the country.
Hendrik Prinsloo, QS course facilitator
Van Dyck Carpets capitalises on new flooring trends with sustainable and innovative products
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an Dyck Carpets, a division of PFE International, is set to capitalise on new trends in flooring by meeting market demands with innovative and sustainable new products. Dr Mehran Zarrebini, Chief Executive Officer of PFE International, says that, as consumers push for more environmentally friendly products, flooring manufacturers and retailers are developing and selling more sustainable products to meet “green” demand without compromising the look, integrity and durability that end-users continue to seek in flooring. This is also evident in the commercial space, where luxury vinyl tiles (LVT) and carpet tiles were gaining in popularity. “Professionals such as architects and designers want to know about the green characteristics of the flooring materials being utilised in different projects,” he says. The LVT segment in particular has grown internationally,
Dr Mehran Zarrebini
capturing some market share from the high-cost, labour-intensive ceramic and stone segments. Zarrebini says the carpet tile segment continues to grow as the flexibility to mix patterns and colours in creative ways has proved to be a winner with designers. “The ability to mix it up and add colour to the floor has enhanced collaborative workspaces and upped the energy levels of the office environment,” he says. “Also, the ease of installation and ability to remove and replace damaged tiles has added to its popularity for the corporate environment.”
Corobrik sponsors its 30th Architectural Student of the Year competition
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ight finalists from universities around South Africa have already won the regional competitions, and will meet at the Hilton Hotel in Johannesburg between 8 and 10 May 2017 for the 30th Corobrik Architectural Student of the Year awards evening. The annual Corobrik Architectural Student of the Year Award is the country’s premier event, highlighting the creative and technical talent of South Africa’s top architectural students
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and to drive the advancement of design excellence nationally. Participating universities include University of the Free State, University of Cape Town, Nelson Mandela Metropolitan University, Tshwane University of Technology, University of Johannesburg, University of KwaZulu-Natal, University of Pretoria and University of the Witwatersrand. Participants’ thesis models are available to view at the Hilton Hotel between 9.30am and midday on 10 May.
SOUTH AFRICAN PROPERTY REVIEW
Tertiary institutions are encouraged to send architectural and design students to view the models and listen to a student lecture that will be delivered by awardwinning architect Andrew Makin. Vedhant Maharaj is the winner of the 2015 Architectural Student of the Year Award. His winning architectural thesis is entitled “Yantra, Infrastructures of the Sacred and Profane”, and is a water purification infrastructure for the hazardously polluted River Ganges in India.
Vedhant Maharaj
SAPOA events
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industry news
Learn to take entrepreneurial leadership to the max! P
roperty Point, a Growthpoint Properties initiative, is zooming in on how entrepreneurs can contribute to directly driving business performance at its latest not-to-be-missed To The Point session.
Guest presenter Carl Bates is an international speaker, director, author and mentor. Most importantly, he is an entrepreneur, so he knows well the many questions entrepreneurs ask themselves.
Robyn Basson, Property Point
“How can I inspire the best from my team? How can the team members leverage the most value for themselves and the organisation? How can my performance directly drive business performance?” He also has some valuable and unexpected answers to these questions, and he’s ready to share them with entrepreneurs at the To The Point session. Originally from New Zealand, Bates is based in South Africa and has spoken in 14 countries. His expertise includes leadership, setting up high-performance boards and shaping business promises. The session will delve into the importance of identifying individual team members’
Shawn Theunissen, Property Point
strengths and the roles that match their natural ability. Bates will share his entrepreneurial hacks for improving team communication and engagement, and help find the best ways to lead and manage a dynamic team to stay ahead of the competition. Excitingly, he’ll also share practical insights to help you implement these techniques in your business.
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VANCOUVER
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CALGARY
TORONTO
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OTTAWA
MONTRÉAL
QUÉBEC CITY
LONDON
JOHANNESBURG
SAPOA events
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industry news Growthpoint delivers 6,1% half-year distribution growth and makes good progress on strategy
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rowthpoint Properties Limited has reported distribution growth of 6,1% for its six-month interim period to 31 December 2016, delivering performance comfortably in line with market guidance. Growthpoint achieved an increase in total distributable income of 10% from its previous half-year. It improved portfolio vacancies from 5,7% to 5,4%, and boosted the value of its property assets to more than R120-billion. It also continued its internationalisation strategy through its investment into London Stock Exchange Alternative Investment Marketlisted Globalworth Real Estate Investment Ltd (Globalworth) and expanded its investment into Growthpoint Properties Australia (GOZ), as well as growing its funds management business to launch
AECOM Africa Norbert Sasse
a Healthcare Real Estate Fund. Growthpoint Chief Executive Officer Norbert Sasse attributes the positive distribution growth to the continued performance of Growthpoint’s South African property portfolio, a strong contribution from its V&A Waterfront investment, and growing distributions from Growthpoint’s 64,3% holding in GOZ, which were enhanced by a successful currencyhedging strategy.
Valuation for Land Reform and Expropriation Presented by the University of Cape Town and Office of the Valuer General 10 – 12 May, Birchwood Hotel Boksburg, Johannesburg 19 – 21 July, Riverside Hotel Durban North, Durban 3 CPD points, ECSA validation no: UCTVLRE17 This course is designed to equip participants with advanced skills regarding the valuation of property to be acquired by the State under the provisions of the Property Valuation Act 2014 and the new Expropriation Act. The course is offered jointly with the Office of the Valuer General. It is both theoretically rigorous and practical, providing a range of skills required for the determination of value as defined in the Property Valuation Act, and of ‘just and equitable’ compensation, as prescribed in the Constitution and the Expropriation Act. Course fee: R8400 Presenters: A/Prof Manya Mooya For further details and registration information, please visit the website www.cpd.uct.ac.za
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BIM has enormous potential to cut construction costs in Africa
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uilding Information Modelling (BIM) has massive potential in Africa’s Architecture, Engineering and Construction (AEC) industry to reduce capital and operational cost, and boost the quality of construction projects, says Craig Howie, BIM Manager at AECOM Africa. AECOM Africa has been an early adopter of BIM, starting in 2010. “As of 2014, all of our new projects within the Buildings + Places department are executed by our engineers and architects, with BIM-enabling software such as Autodesk
Revit and Civil 3D as a standard,” he says. “Making this shift from a traditional manual 2D CAD drafting approach to a 3D information-rich parametric approach has been a key driver in our adoption of BIM processes.” On a global scale, AECOM is the largest licensee of the world’s leading BIM software providers, such as Autodesk, Bentley and Trimble. In Africa, AECOM is able to leverage its local BIM capabilities both on high-profile projects on the continent and internationally.
Profica extends East African footprint
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eading construction and property solutions company Profica has been operating successfully on the African continent for more than a decade. Profica has a strong track record in Kenya and Rwanda, and is now happy to announce the opening of its new offices in Tanzania and Uganda to strengthen its East Africa operations. These will enhance Profica’s capacity to deliver diverse projects in East Africa, complementing an already well-established presence in Kenya. Thierry Giannone, Profica’s Director of East Africa operations, says the decision to have people on the ground in Tanzania and Uganda was a logical “next step” for the company, in that interest and activity in the region has been steadily growing. “Although we’ve been active in East Africa for some time, Profica’s main
operational hub was only officially established in Nairobi in 2015,” he says. “The time was ripe to set up offices there as Kenya was, and continues to be, buoyant with opportunity.” The next step was for Profica to extend into the region with local bases in Uganda and Tanzania. Giannone says that there is a growing interest in both Tanzania and Uganda. “We are seeing steady growth on the back of sustainable business in the region. We’re carefully optimistic. We’ve already completed a smaller-scale project for high-profile international client Google in Uganda. This was a turnkey fit-out of a new office space. In Kenya, under the guidance of Profica Kenya’s Project Director Jan Seemann, the project management of Booking.com’s office space and Google was completed in December last year.”
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industrial news
Prevent corruption on government projects through the use of quantity surveyors
Larry Feinberg, Executive Director at the Association of South African Quantity Surveyors
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overnment will spend more than R50M billion to fund national and provincial Y economic infrastructure requirements, CM according to the National Budget 2017 announced by Finance Minister Pravin MY Gordhan. Noticeably, however, according CY to the Auditor-General’s report on local government audit outcomes for the 2014- CMY K 2015, infrastructure was one of the items that municipalities struggled with most to correctly measure and disclose in the financial statements over the past five years. Auditor-General Kimi Makwetu has also recently released three performance-audit reports dealing with pharmaceuticals, water infrastructure and urban-renewal projects. The Auditor-General reported that in some instances the required skilled personnel were not appointed at the start of a project. The Association of South African Quantity Surveyors (ASAQS) says quantity surveyors are best placed to stem corruption in government infrastructure projects. “The first step is for both government officials and ordinary taxpayers to understand what the role of a professional quantity surveyor is,” says Larry Feinberg, Executive Director of ASAQS. “Globally, construction projects are highly susceptible to cost overruns, owing to a number of factors. Here in South Africa, as in certain other countries, we have the additional problem of corruption, where due process is flouted in order to benefit connected individuals or companies – often during the construction process itself.” SOUTH AFRICAN PROPERTY REVIEW
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legal update
Protection of personal information and the working of the Information Regulator By Mumtaz Moola
Section 14 of the Constitution of the Republic of South Africa, 1996 provides that everyone has the right to privacy. The right to privacy includes a right to protection against the unlawful collection, retention, dissemination and use of personal information
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he Protection of Personal Information Act No. 4 of 2013 (POPIA), previously referred to as POPI, regulates the collection, use, storage, sharing and deletion of personal information of individuals and, where applicable, corporate entities. Section 14 of the Constitution of the Republic of South Africa, 1996 provides that everyone has the right to privacy. The right to privacy includes a right to protection against the unlawful collection, retention, dissemination and use of personal information. Several jurisdictions around the world have already implemented stringent privacy legislation. POPIA brings South Africa in line with international best practices in the field of privacy. The Information Regulator took office on 1 December 2016, and states that it has been hard at work conceptualising and thinking through the type of organisation it wants to establish. The tag line it uses is, “Ensuring protection of your personal information and promotion of access to information�. The Regulator states its mission is to ensure that both the constitutionally guaranteed right of access to information and the right to privacy are equally protected and enjoyed.
What does POPIA do? POPIA governs the way personal information is collected, stored, used, disseminated and deleted. Personal information has a wide meaning, and includes information that identifies and relates to living individuals (for example, gender and employment history) and existing corporates (for example, company contact details and correspondence of a confidential nature). The individual or corporate that the personal information relates to is referred to as the data subject. POPIA protects personal information of data subjects by imposing minimum standards for its lawful processing. The data subject must consent to the processing of personal information except in certain circumstances. The most common of these is where processing is necessary to conclude or perform a contract with the data subject.
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Does POPIA apply to my organisation? Both public and private organisations need to comply, as well as individuals. There is no minimum threshold for compliance. It applies to South African organisations that process personal information (including employee personal information) and to foreign corporates that process personal information in South Africa (unless information is merely forwarded) using automated means (use of electronic equipment operating automatically under instructions) or where the personal information forms part of a filing system. Processing for purely personal or household activities, or for journalistic, literary or artistic purposes, is excluded.
Compliance with other laws POPIA provides exemptions where the processing complies with legal obligations imposed by other laws (for example, providing personal information to a regulator). If another law provides more onerous obligations for the processing of personal information, the other law must be complied with (i.e. the highest standard applies).
Sensitive information Personal information relating to children (i.e. under the age of 18) and special personal information (which includes private information relating to religious beliefs, race, trade union membership, health or sex life, biometrics and criminal offences) are subject to more onerous processing obligations. For example, cross-border transfers of these categories of information require prior approval from the regulator if the foreign recipient does not provide an adequate level of protection.
Subject access requests A data subject has the right to (i) know if an organisation holds personal information about them, free of charge; (ii) access that information for a fee; (iii) request correction or deletion of inaccurate, irrelevant, excessive, out of date, incomplete, misleading or unlawfully obtained personal information; and (iv) request destruction or deletion of
legal update
personal information that an organisation is no longer authorised to retain.
Direct marketing An organisation may not contact a prospective customer through automated calls, email or SMS to promote any products or services without that individual’s informed consent (i.e. the prospective customer must be given the opportunity to opt in to specific use). All communication must contain the organisation’s identity and contact details through which the customer can opt out at a later stage.
Cross-border transfers Personal information may only be transferred to a third party who is in a foreign country in limited circumstances, such as with the data subject’s informed consent or where the foreign recipient is subject to obligations similar to those under POPI that provide an adequate level of protection of the information. You must tell the data subject if you collect information intending to transfer it to another country and give them particulars of the protection given offshore.
Mandatory notification of data breach The regulator and identifiable data subjects must be informed where there are reasonable grounds to believe that personal information has been accessed or acquired by an unauthorised person. The regulator may direct that a data breach be publicised if there are reasonable grounds to believe that publicity would protect a data subject who may be affected.
Information officers The information officer is the head of a private organisation or a public body, or their appointee. An information officer must be registered with the Information Regulator established under POPI before performing their duties (which include ensuring compliance with POPI, assisting the regulator with investigations and dealing with subject access requests). Employees may be designated as deputy information officers to assist with these duties.
Enforcement Non-compliance with POPI may result in a civil action for damages, enforcement action by the Regulator (on its own initiative or on receipt of a complaint) or criminal action for any offence committed. Offences will be prosecuted in the magistrates’ court and,
on conviction, may give rise to imprisonment of up to 12 months or 10 years, depending on the severity of the offence, or a fine, or both imprisonment and a fine. Alternatively, the regulator may issue an administrative fine up to R10-million for an offence (which is higher than the maximum fine in the UK and most of Europe). Section 47 of POPIA empowers the Regulator to establish its own administration to assist it in the performance of its duties. It must also appoint a Chief Executive Officer as the head of administration and an accounting officer; hence it has adopted this section to ensure the independence of the Regulator as provided for in section 39 of POPIA. To date, only sections 39 to 54, 112 and 113 of POPIA have come into operation. The rest of the sections will only come into operation once the Regulator is fully operational. Section 112(1)(a) and (b) of POPIA empowers the Minister of Justice to make regulations relating to the establishment of the Regulator. The Regulator intends to table the regulations in Parliament in compliance with section 113(5)(a) before the end of 2017. Section 114(4) of POPIA requires the Regulator to take over the function of enforcing the Promotion of Access to Information Act from the South African Human Rights Commission (SAHRC). The legal process of doing so is regulated by this subsection read with section 110 of POPIA. The Regulator has entered into a Memorandum of Understanding with the SAHRC to operationalise the relevant section of the Act.
An organisation may not contact a prospective customer through automated calls, email or SMS to promote any products or services without that individual’s informed consent (i.e. the prospective customer must be given the opportunity to opt in to specific use)
We acknowledge, with thanks, input from Norton Rose Fulbright Inc.
This legal opinion is only a guide and should not be copied with the expectation that it will serve specific individual circumstances. Most of these recommendations have not been tested in our courts. SAPOA cannot guarantee any success in any court if any of these recommendations are put to use. SOUTH AFRICAN PROPERTY REVIEW
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planning and development
Urban embrace: innovative rental accommodation in Johannesburg Live Easy: move in, move up
The objective is to enable individuals living in undesirable conditions to gain access to affordable rental accommodation By Rirhandzu Khoza, John Martin and Lekgolo Mayatula
This provides an option to community members currently living in undesirable, over-let and undignified conditions to relocate into safe, secure and well-managed housing.
City of Johannesburg developmental agenda
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his month, we celebrate 23 years of democracy, and as we continue to grapple with challenging issues, we need to find innovative and sustainable solutions. One of the challenges experienced by the country relates to spatial integration, which needs to be tackled through various strategically interconnected approaches. As South Africans, we’re known for not shying away from confronting our challenges head-on, and the magnitude of the challenge does to seem to deter our desire to succeed. We go out there with a winner’s mind-set, aiming to achieve great results. The provision of affordable inclusionary housing is one of the key ingredients the country can use to transform the spatial dynamics – this requires commitment, dedication, innovation and support by all the role-players in the property development value chain. SAPOA has responded to the essential need for spatial transformation through its
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research on inclusionary housing, with the aim of participating actively in the process and sharing the industry’s learnings with the various role-players, such as the municipalities and provincial and national government. SAPOA, through its involvement in the inclusionary housing dialogue, has embraced the opportunity to be exposed to collaborative initiatives undertaken by developers in the affordable housing market in strategic areas in the city of Johannesburg. The lack of affordable lowincome rental accommodation in well-located areas of the city has encouraged the developers of Live Easy to take one of the first leaps in providing affordable rental housing in a well-located area. A development of this nature guarantees that tenants are residing in good proximity to economic opportunities, public transit and social amenities. The developers have ensured that Live Easy is an affordable housing brand that aims to shape and transform the housing market.
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The city has taken it upon itself to develop affordable housing by providing social housing. Most importantly, it has created an enticing environment for private developers to come to the lead of housing provision through establishing spatial frameworks that deal with the challenges faced. One such spatial framework is the Kew, Marlboro, Wynberg Urban Development Framework (2009), which seeks to deal with illegal building occupation and informal settlements at the interface of Kew and Alexandra. Furthermore, it seeks to capitalise on the proposed bus rapid transit system link. The Johannesburg Spatial Development Framework 2040 states that industrial nodes will focus on future job creation, as well as diversification of land uses. In order to maximise the
social and economic value of current industrial nodes, residential opportunities with essential urban amenities should be promoted close by. This allows for shorter commuting times for people working in industrial nodes. Importantly, this housing should include a majority of lowincome units that are affordable for households earning the city median of approximately R3 500 a month (2011 prices). Alternatively, it should include affordable housing for households earning between R3 500 and R7 000. This housing should not be located in areas of noxious industries that would be harmful to residents.
Live Easy Against the backdrop of the city’s strategies, it is evident that Live Easy is an innovative affordable residential development where a warehouse facility has been repurposed and redeveloped into affordable residential homes. Live Easy is located in an industrial node in Kew, close to Linbro Park, Wynberg, Sandton, Rosebank and the Johannesburg CBD.
planning and development It has good access to public transit and is within a walking distance to major activity roads such as London Road and Louis Botha Avenue. Kew and neighbouring areas are often associated with challenges such as informal housing within warehouses, and crime. Live Easy provides its tenants with “Nano Modules” that consist of 12m² to 24m² self-contained units, each with its own kitchenette and bathroom, priced from R1 950 to R3 600 per month. Live Easy is not solely a residential development. It encompasses land uses that complement the residential component, such as a daycare facility for both residents and
non-residents, a gym, green spaces, playgrounds, retail shops, laundromat facilities and Wi-Fi services. The functionality behind these amenities is to create a sense of community and to reduce the operating cost of the development, therefore making it financially and socially viable for tenants to reside in the development. More than 130 units were opened to the public in September 2016, with another phase planned to complete the development at 540 units. Phase 1 consists of a total of 540 units encapsulated into two storeys, and it is anticipated that 770 units will be fully occupied once Phase 2 has been completed.
Resistance to embracing the urban Residential developments of this nature are often prone to strong opposition from neighbouring property owners and the community. When you close your eyes and think of a 12m² to 15m² unit, individuals are too scared to envision how the space is configured, yet alone inhabit such a unit. However, upon completion of the units and a number of site viewings that the developers opened to the public, it is evident that the design and layout of the units enable a single person to live in 12m², while 15m² to 24m² allow for occupancy up to a maximum of four people. People are excited by what the developers are doing; as a result, the design of these units has attracted other property owners to repurpose and redevelop their property into residential units. The developers of Live Easy plan to create a residential precinct with a number of adjoining and detached properties. Their aim is also to develop safe and liveable streets. However, in order for the developers to do this, they have a lot of work to do in terms of infrastructure upgrades on the outside of the building and introducing preliminary urban management strategies.
Urban management Over the years, it has been found that urban management not only plays a fundamental role in safeguarding the city’s investment – it is also crucial for the successful implementation of urban development plans. The area-based management framework for this region seeks to support the management and maintenance of public assets. The framework predominantly focuses on urban management of the area, paying particular attention to safety. A few of the key objectives of the framework are:
●● Safe, efficient and sustainable public spaces and transit hubs; ●● Expanding and improving public transit infrastructure and facilities; and ●● Development of privately owned properties into mixed land uses. Urban management is not just the responsibility of the public sector. It requires the engagement and cooperation of multiple stakeholders to come to the forefront of urban development. It is evident the city has taken its first step in anticipation of innovative developers such as Live Easy, who have come to the forefront in providing mixed-use residential developments with the aim of creating a precinct with improved, enhanced, well-maintained public spaces and infrastructure, including sidewalks, roads and parks. The area has a long way to go – but by taking baby steps, it is envisioned that it will become the cornerstone of an affordable mixed-use residential precinct that caters for middle-to-low income earners through the diversification of the node. Developers in the area need to also ensure that they protect the economic areas of the city by not converting all properties into affordable residential units. Live Easy is testament that affordable housing is achievable – but it requires developers to be innovative and creative, and the government (especially municipalities) needs to work closely with developers to successfully transform the spatial dynamics of our beautiful country. South Africa – just like the rest of Africa – can carve out solutions that reflect the innovation of the continent. The results crafted are of outstanding quality and have the potential to be shared on an international scale. If done correctly, the provision of inclusionary and affordable housing solutions could be the next intercontinental showcase.
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careers day
Exposing learners to property as a career choice Learners from various high schools in and around Port Elizabeth attended the Working World Exhibition at the Nelson Mandela Bay Stadium from 28 February to 2 March 2017. SAPOA was there, and took the opportunity to introduce learners to careers within the built environment through career guidance and the SAPOA Bursary Fund Compiled by Maud Nale
The Working World Exhibition, now in its 18th year, is an annual event on the Port Elizabeth calendar, aimed at empowering and positioning learners for the world of work. The exhibition repackages the essential components of a career guidance programme into an interactive experience that learners can identify with and find meaningful. As one of the exhibitors, SAPOA reached out to more than 7  000 learners from disadvantaged backgrounds. From all the various fields of property studies, of particular interest to most were the fields of quantity surveying, architecture, town planning, property economy and construction engineering. Various industries also participated, including tertiary institutions, automobile, health and beauty, and the public sector.
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education, training & development
Human resources development must be strategic in every organisation By Portia Mkhabela
– SHRD policies and strategies must be vertically integrated with business strategies, which in turn helps to synergise performance outcomes.
Strategic human resources and development (SHRD): what it means SHRD involves introducing, eliminating, modifying, directing and guiding processes so that all individuals and teams get the skills, knowledge and competencies they need to undertake current and future tasks required by organisations. SHRD contrasts with the traditional view of training and development as reactive, piecemeal interventions in response to specific problems. SHRD should be responsive to the business needs of the organisation – but when a more strategic approach towards HRD is taken, the result is what is described as a “learning culture”. SHRD can be articulated as follows: ● Relationship with business strategy – SHRD makes a significant contribution to the successful achievement of business objectives through the enhancement of human resource capability, and represents a major source of competitive advantage. ● Development of individual and organisational human capital – SHRD is focused on developing both individual and organisational human capital, thus enabling organisations to differentiate themselves from competitors. ● Develop a climate of learning – SHRD helps create an environment in which employees are encouraged to learn and develop, which then creates opportunities for employee’s proactive behaviour towards learning and self-management. ● Vertical and horizontal integration of SHRD strategies, policies and practices
HRD specialists frequently struggle to perform strategic roles in organisations. There is a clear distinction between lagging and leading learning, and development specialists (Deloitte, 2011). These important differences between a lagging and leading HRD highlight that, to operate effectively as a leading specialist, there must be a strong focus on strategic issues that contribute to business growth and competitiveness because they are deemed to be vital in the success of the business. The table below seeks to clarify the distinctions:
Lagging
Leading
Retain a large proportion of their operational duties
Spend their time primarily on strategic tasks that contribute to key business priorities
Struggle with making an impact on the business
Clearly measure and articulate the value they bring to the organisation
Find it difficult to balance business and HRD agenda
Effectively deliver against aligned SHRD and business agendas
Lack clearly defined responsibilities of hand-offs with other HRD/HRM areas
Have clear and transparent role to play in SHRD service delivery
Require further support with developing critical business skills or SHRD skills
Are considered top talent within the organisation
The relevance of SHRD in the period of submitting workplace skills plans and annual training reports for our various sectors As the property commercial sector, we are now moving into the critical period of reporting on activities in which we were involved during 2016 (and the three months of 2017). Are we prioritising this process to ensure the data we present reflects the good work our HRD specialists have been managing throughout the year, or are we just submitting for compliance purposes?
What is the purpose of the Skills Development Act? Shortage of skilled staff is a serious obstacle to the competitiveness of industry in South Africa. The Skills Development Act of 1998 aims to: ● Develop skills for the local workforce; ● Increase investment in education and training, and improve return on investment in those areas; ● Encourage employers to promote skills development by using the workplace as an active learning environment; ● Encourage workers to participate in learnership and training programmes; ● Improve employment prospects by redressing previous disadvantages through training and education; ● Ensure the quality of education and training in and for the workplace; and ● Assist with the placement of first-time work-seekers.
What is the purpose of a workplace skills plan (WSP)? The WSP serves to structure the type and amount of training for the year ahead, and is based on the skills needs of the organisation. A good WSP considers current and future needs, taking into account gaps identified through a skills audit, the performance management system, succession planning initiatives, and any new process or technology changes planned. Management discusses the company’s goals with employees, who in turn commit to the process of achieving them. Management gets the opportunity to discover talent as well as skills they did know they had.
What is an annual training report (ATR)? This report consists of all attendance registers, proof of expenditure and training providers used, so the SETA can establish whether training was done or is being conducted. As we prepare for the task ahead, HRD has to make a positive impact on the success of its organisation – including reflecting correct skills capabilities so we can develop the skills that will take the country forward. This article was inspired by the work of Carbery and Cross, as well as the Services SETA data. SOUTH AFRICAN PROPERTY REVIEW
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SAPOA events
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SAPOA events
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confidence through professional standards
Empowering women in the built environment In Sandton to attend the Royal Institution of Chartered Surveyors (RICS) Africa Summit, its current President, Amanda Clack, spoke to Maud Nale about her vision for the empowerment of women all over the world in the property industry. This project is already well underway through a pilot mentoring initiative for South African women. She discusses the importance of collaboration between RICS and the Women’s Property Network Interview by Maud Nale Edited by Marguerite Lithgow
N
ine months into her term of office for RICS, with more than 130 000 qualified professionals, students and trainees dotted around the world to call on, the indomitable President describes this busy chapter as “a whirlwind”. So far during her presidency, she has been to Japan, Hong Kong, Shanghai, Beijing (China), Munich (Germany), India, and Brazil, before landing in Sandton for the twoday Africa Summit. “Since taking up my role as President last June, I’ve been travelling to meet with governments and senior officials to talk about our work,” she says. “It’s fantastic to see the work our people are doing around the world. It’s been a privilege to meet our professionals and firms everywhere, and to see their great work. It is tremendously encouraging, too, to be here for this summit.” As a public-interest organisation, RICS, headquartered in London, operates in all major financial hubs around the world. It is a global professional body, promoting and enforcing the highest qualifications and standards in the areas of land, real estate, construction and infrastructure. As such, it delivers international standards and policy influence across the board. “I’ve had 30 years in the sector, and the three key themes that stand out as tremendously relevant to the marketplace are ‘infrastructure’, the ‘cities’ agenda and the ‘war for talent’,” she says. “It’s exciting to be talking about them to you! “Here in Africa, investing in infrastructure is an essential focus area for governments because it acts as a big economic stimulant. It enables businesses to come together, is the foundation for better social infrastructure and housing, and naturally creates better environments for people. There is, however, a massive gap in terms of the infrastructure‘spend’requirements,
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“Here in Africa, investing in infrastructure is an essential focus area for governments because it acts as a big economic stimulant. It enables businesses to come together, is the foundation for better social infrastructure and housing, and naturally creates better environments for people” Amanda Clack, RICS President
going through to 2030, and predictions are that about US$57-trillion will need to be spent on infrastructure in the next 15 years. “The cities agenda is becoming increasingly important because more and more people are living in cities. Currently, about 54% of the global population lives in cities. I’ve just come back from Toronto and New York, where that figure is 84% – they have very high populations in the cities. The United Nations predicts that by 2050 we’ll have 66% of the global population living in cities. Of course, this is very positive news for RICS, and for SAPOA too, because more and more building will be required as a result of this phenomenon.” Explaining her “war for talent” theme, Clack says, “It’s all about how you attract people into the profession, and how you give them appropriate support. It’s been interesting to hear from SAPOA about all the work you’ve been doing on bursaries. This is so important to bring in more of the people who wouldn’t, of their own accord, have thought of entering the real estate industry. Even more significantly, for those who couldn’t consider coming into real estate and construction because of fewer opportunities, your bursaries give them that vital lifetime chance. “This is equally a personal focus of mine, and I think it’s wonderfully inspiring that you’ve got Nomzamo Radebe as President now. It is wonderful to have a woman President nominated in SAPOA’s 50th anniversary year. I am only the second female President of RICS, and the 135th in 149 years. With our 150th anniversary coming up in 2018, we’re very pleased about that too.” Talking about the key theme of the Summit, she continued, “As you know, one of the key focus areas alongside this year’s Africa Summit is ‘women empowering the built
confidence through professional standards environment’, and the theme came about through our networking with the Women’s Property Network (WPN) in South Africa. There was a very real desire to start a mentoring programme, so we’ve set up a pilot scheme with 10 women from across South Africa being mentored, at their own request, by female counterparts in the UK. “Appropriate to our theme, we have a special lunch taking place that allows us to bring the two groups together for what will be our third meeting. The women in London are meeting over there, while I’ll obviously be here with the women in South Africa. And with the wonders of technology we’ll all be joined together via video link. “In the meantime, mentors and mentees have begun working together and learning from each other, because mentoring is not just one-way. There is also a lot of reverse mentoring happening, which is ideal because this is how it works, how it becomes possible to help and support women in particular, in their career and in the industry. From this, often great lifetime friendships develop too. Interestingly, the issues are actually the same wherever you’re working because it’s about how to be successful in your career, how to balance all sorts of issues. It’s not just about being a woman. The whole project is very inspirational.” Referring to RICS itself, Clack adds, “Thirteen percent of our membership is female, which is quite a low percentage, so we need to do more to attract women to the profession. The good news is our trainee membership, which is around 48% women. Wouldn’t it be great to one day get it up to a balanced 50/50? That is probably a few more years in the pipeline. On a more personal note, explaining how she manages her time, balancing career achievements with leisure time, she says, “I think you’ve got to be good at juggling. It’s been fantastic to have the support of my employer, EY, allowing me to do the President’s role, which is just for a year, much like at SAPOA. EY gets me back after the year, which is when I can really give back.” Revealing her recipe for success, Clack says, “I think if you love what you do, you end up being successful at it. Completing a parttime degree five years after leaving school at 18, I discovered, from the moment I started in this arena that I absolutely loved it. Overall, I feel I’ve been incredibly fortunate. I like variety and I like to have good work-life balance. My greatest love is music – I’m a trained classical pianist – and my second big interest
is photography. You’ll always find me with a camera in my pocket; everywhere I go I take photographs. I’m passionate about sailing too, and skiing. Of course, its important to have great family and friends who are supportive of my busy lifestyle.” Turning back to RICS, and on the question of how to fit so much into the rest of her Presidential term, she says, “I see my role as passing the baton to my successor, the Toronto-based incoming President John Hughes. The most important thing is that,
“We’re looking at the rapid pace of urbanisation; what sub-Saharan countries can learn from each other and from the global platform; and how to take, and bring to the fore, the best of what you’re seeing around the world. Thereafter, we look at infrastructure, what it means, and the important role of standards; then a focus on ‘occupiers’ and the facilities management agenda we mentioned earlier” on 7 November, he gets the legacy I leave, and takes RICS forward into the 150th year.” “Although a President has just the year to achieve so much, in reality there are also the run-up periods as Senior Vice President and President Elect, too. Most importantly at RICS, backstage there is an incredibly hardworking, supportive staff team. So, as President, you create a momentum behind the things you are passionate about, and this work continues when you step down. The RICS professional staff provide the consistency as Presidents come and go. I
believe that’s the great differentiator for a successful professional organisation such as RICS, and obviously for SAPOA as well. It’s essential to have that partnership between the professionals and the staff.” Considering what could be gained from the forthcoming Summit, the President predicted a gathering of like-minded professionals, and strongly urged “never to underestimate the power of networking that happens in and around the more formal agenda”. “Gugulethu Cele from CNBC will be hosting the conference for the third year. She’s fantastic because she does a great job of steering the event and sets quite a pace as well.” Going into more detail, Clack said, “We’ve got some great keynote speakers and panel sessions planned. To give you a bit of a flavour, the opening keynote, by Bennet Kpentey, Chief Executive & Managing Consultant of Sync Consult in Ghana, looks at the macro-political view of what it means for land and rapid urbanisation in sub-Saharan Africa. After that we look at land availability because land is obviously key when you’re looking at the whole urbanisation agenda. “Then we’re looking at the rapid pace of urbanisation; what sub-Saharan countries can learn from each other and from the global platform; and how to take, and bring to the fore, the best of what you’re seeing around the world. Thereafter, we look at infrastructure, what it means, and the important role of standards; then a focus on ‘occupiers’ and the facilities management agenda we mentioned earlier. “Finally, we have the closing session by Maureen Ehrenberg, Chair of the Board of Directors of IFMA, and International Director at JLL. The panel sessions include highquality keynote speakers to get a good debate going, and people will take away not only CPD (continuing professional development) hours but, hopefully, a real, rich knowledge that they can share with colleagues in the workplace.” Concluding the interview, Clack shared the following, “One of the really important things to come out, through the standards work that we’ve been involved with, is that no organisation exists as an island. Whether you’re SAPOA or RICS, the power lies in working together, and collaborating with each other. We’re so much stronger when we go to the market together, and work jointly on initiatives. It gives greater clarity for governments, and to the clients and corporates out there. So, there is power in partnerships and, at the end of the day, that comes down to people.” SOUTH AFRICAN PROPERTY REVIEW
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confidence through professional standards
RICS plays an increasingly accountable role in its contribution toward the development of sub-Saharan Africa TC Chetty, the South Africa Country Manager of the Royal Institution of Chartered Surveyors, talked to Mark Pettipher about the various responsibilities and objectives of the institution during its current chapter in the country, and also about his own role in the South African context Interview by Mark Pettipher Written by Marguerite Lithgow
T
he Royal Institution of Chartered Surveyors, the world’s leading professional body for qualifications and standards in land, property, infrastructure and construction took a decision, a few years ago, to invest in sub-Saharan Africa, and to look into the best way to promote viable growth in this part of the world in respect of the built environment professions. The Institution’s goal was to create a threehub model, the hubs effectively located in southern Africa, eastern Africa, and western Africa. The individual countries identified at the time were South Africa (where there was already a presence), Ghana and Kenya. Also at that time, the institution chose to appoint an Africa Director in Kenya, where there was considerable activity, and where much of the future of sub-Saharan Africa was targeted. “At present, whatever we accomplish in South Africa falls within the sub-Saharan context too, with certain matters being effected from South Africa into the rest of Africa,” says Chetty. “Naturally, there’s a specific focus on southern Africa for a dynamic like the Southern Africa Development Community (SADC), among others.” The blueprint for every RICS proposal comprises the three solid RICS objectives which are, in essence, to set standards, to train people towards those professional standards, and then to regulate against those standards. A multitude of activities are generated around the hub of implementing and achieving this blueprint. An overarching goal in South Africa, and in the sub-Saharan African context, is to achieve universal adoption of global standards, and/or the RICS standards. They are slightly different in the sense that global standards are often created by an international coalition that includes the RICS benchmarks. An excellent example of this type of meld would be the International Property Measurement Standards (IPMS), a standardised and globally applicable method, since 2013, for measuring property, of which SAPOA is an accredited South African member.
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Conceptually, the property market is completely global, including in the South African context. Buyers worldwide invest in, inter alia, sub-Saharan Africa, Western Europe, Eastern Europe, the United Kingdom and Australia. Bringing uniformity into
TC Chetty, South Africa Country Manager of the Royal Institution of Chartered Surveyors
measurements, particularly at a professional level, ensures the property owners, property developers and clients all know, consistently, what they are getting and dealing with. In a similar vein, ethics, valuations and construction measurements standards also need standardising to make global property and portfolio comparisons possible. A key drive for RICS, in conjunction with local coalition partners, is thus to get these global standards adopted in South Africa and in sub-Saharan Africa, in so doing encouraging a high standard of professionalism. It is very much a call for all professionals working in the built environment sector to commit to entrenched global standards. On the back of this, RICS anticipates significant membership growth in subSaharan Africa as individual professionals and the various professional bodies move towards setting and adopting the global standards.
South African membership is close to 1 100, and in sub-Saharan Africa it stands at just under 2 000 members – and rising. About RICS objective in South Africa, Chetty says, “In many respects, the standards in South Africa are superb, comparative with anywhere else in the world. Our key endeavour here is to work in collaboration with the various South African statutory, voluntary and industry bodies within the built environment sector, to share ideas and thoughts about things that are happening globally, provide information, and work within the standards space to entrench global standards in partnership with the statutory bodies, and other organisations already firmly established here, whether SAPOA, the South African Council of Shopping Centres or the Green Building Council of South Africa, to achieve mutually beneficial objectives. “With statutory councils such as the South African Council for the Property Valuers Profession and the South African Council for the Quantity Surveying Profession (SACQSP), and voluntary associations such as the Association of South African Quantity Surveyors (ASAQS) and the South African Institute of Valuers, we’re looking at partnering on both sides. While RICS President Amanda Clack was here in February, we signed a new Memorandum of Understanding with ASAQS, in order to enable increased cooperation on a number of initiatives, including training and continuous professional development. “We already have a mutual recognition agreement with the SACQSP and direct entry agreements with, among others, the SACPVP and the South African Council for Project and Construction Management Professions. Last year we signed a Memorandum of Understanding with the South African Institute of Valuers. We likewise have a Memorandum of Understanding with SAPOA, and working arrangements with the Women’s Property Network (WPN) and the Green Building Council of South Africa that are still to be formalised.
confidence through professional standards “The idea is to partner in their events, even on occasion to run them jointly. If an event were planned around a particular subject, we’d look at sponsoring a speaker from our global resource base to speak at such an event. Considering the sky-rocketing cost of running conferences, it makes sense to maximise the time that a visiting international speaker spends in the country. For example, we could sponsor an international speaker for a convention being hosted by one of our collaborative partners, and add value by doing a road show around the country with that speaker, for CPD and other events.” In terms of collaboration, RICS has designs to build on the world-leading work already being done in South Africa. For example, the green building standards developed by the Breen Building Council of South Africa can be benchmarked against any global standard, and some of the technologies being put in place that are unique to South Africa would also be appropriate in places of similar climate or environment, such as Australia or Argentina. “There is much happening in the built environment arena, with RICS involved at the forefront of much work around global futures,” says Chetty. “What we really desire is to share ideas around new and exciting developments, for example building information modelling (BIM), and the internet of things. RICS has been very active in the various United Nations events around climate change, including COP21 in Paris and COP22 in Marrakech, often being one of few non-governmental agencies to be presenting. We feel it’s all about increasing the global
knowledge base, in the confidence that this will enhance professionalism. “We have set up the sub-Saharan Africa Market Advisory Panel that meets a few times a year to share thoughts and insights about Africa. The panel includes academics, professionals and researchers from South Africa, as well as Nigeria, Ghana and Kenya. “Another Market Advisory Panel we have set up meets a few times a year to discuss the South African market and the South African professional built environment sector, addressing questions such as ‘What is happening?’, ‘What can we do?’, ‘Where can we add value?’, and ‘How can we change things?’ with a view to also engaging with government on matters pertaining to upskilling, and informing about and bringing in international benchmarks.” Many are not aware that RICS operates a dispute resolution service (DRS) for the built environment, and does training and upskilling in this field. The organisation puts a particular emphasis on making people aware of alternative options for resolving a dispute, rather than going to court. In South Africa, currently, the costs of court action – and the time delays – are absolutely prohibitive. RICS wants the general public, and professionals within the built environment sector, to become more aware of their choices. “We currently train people in alternative dispute resolution mechanisms such as arbitration, adjudication, mediation and how to be an expert witness,” says Chetty. “We also manage a panel of people qualified in dispute resolution who form part of our
‘Global President’s Panel’. Disputes can be referred to our DRS coordinator, who would then nominate panel members with the relevant expertise, from whom the interested parties can choose. We have substantial expertise in some areas, and are growing expertise in other areas. Our aim is to be in a position to be able to better inform and direct people or organisations around alternative dispute resolution mechanisms. Hopefully this will contribute to unblocking some of the bottlenecks in our court system. “Getting to know Africa, and how Africa operates, has been a learning curve. Unlike in the United Kingdom, in South Africa and in much of sub-Saharan Africa RICS is not a statutory body – but we still believe that we can contribute significantly to the professionalisation of the built environment sector. RICS has 125 000 members worldwide, of which 80 000 to 90 000 are based in the UK. There is a substantial demand in subSaharan Africa for the status because becoming a member provides a global credibility and global opportunities for work, which also (in a sense) allows people to spread their wings and learn. Many South Africans, thanks to their RICS membership, have been able to work in the Middle East, Mauritius and other parts of Africa. “We live in interesting times. There is so much opportunity in South Africa in the property industry, and with a population growth demanding houses, shopping centres, and infrastructure – and we need to be able to work together to deliver. We’ve got to deliver as Team South Africa.”
Africa’s rapid urbanisation tops agenda at RICS Africa Summit A
The RICS Africa Summit was held at the Hilton Hotel in Johannesburg on 23 February 2017
frica’s cities need to brace themselves for millions more people over the next few decades, with the continent having one of the fastest urbanisation rates in the world. This was one of the main messages at the Royal Institution of Chartered Surveyors’ (RICS) Africa Summit held in Sandton Central, Johannesburg, in February, with delegates hearing that rapid urbanisation presented both challenges and opportunities. Better urban planning and massive investment in infrastructure is needed to cater for the influx of people looking for job opportunities, higher salaries and urban lifestyles in Africa’s cities. Delivering the opening keynote address, Bennet Kpentey, SOUTH AFRICAN PROPERTY REVIEW
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confidence through professional standards
Gauteng MEC for Infrastructure Development, Honourable MEC Jacob Mamabolo
Chief Executive and Managing Consultant at Ghanaian‐based Sync Consult Management Consultants, highlighted the rapid pace of urbanisation in Africa. “Cities in Africa with more than a million people increased from 52 in 2011 to 65 in 2016,” Kpentey said. “This rate of urbanisation is on par with Europe and higher than India and North America. With 40% of the population living in cities, Africa is more urbanised than India (30%) and almost on par with China (45%). By 2030, Africa will have 760-million urban residents, increasing to 1,2billion by 2050, according to the African Economic Outlook 2016 report.” Kpentey said that while Africa’s rapid urbanisation presented infrastructure challenges for its major cities, it was also a sign of a prospering continent. With Africa’s upward mobility, high urbanisation and continued economic growth, there was an increased number of mega infrastructure projects in Africa. However, Kpentey said the continent needed to accelerate infrastructure development through
innovative means such as public‐private partnerships. Panel discussions with speakers from Nigeria, Ghana, Kenya and South Africa gave delegates perspective on rapid urbanisation and the challenges surrounding land availability in their respective countries. In his keynote address, Gauteng MEC for Infrastructure Development Jacob Mamabolo said as the economic powerhouse of Africa, Gauteng was attracting about 300 000 people annually from the rest of South Africa and other African countries. He said the rollout of infrastructure in the province was no easy task, given that Gauteng was the most populated province and continued to attract more people. Speaking at the summit, RICS President Amanda Clack, who is also Partner at EY and Head of Infrastructure (Advisory) for the UK and Ireland, said that by investing in core infrastructure, governments were ensuring the economic future of a country and its cities. “Infrastructure investment is vital to supporting rapid urbanisation and creating the world’s future cities,” she said.
FROM LEFT Bennet Kpentey, Gugulethu Cele, Holger Adam, Ada Mwangola, Thulani Kuzwayo and Ian Palmer
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Conference Speaker Maureen Ehrenberg
Wafula Nabutola and Benjamin Manu
confidence through professional standards
Professor François Viruly of University of Cape Town
FROM LEFT Amanda Clack, Sanett Uys and Bernadette Gitari
FROM LEFT Andrew Osakwe, Kola Akinsomi and Aminu Shehu
Emeka Eleh from Ubossi Eleh & Co with Mark Walley Regional, MD for RICS EMEA
“The world is facing an infrastructure funding gap of US$57-trillion until 2020,” she said. “Infrastructure investment has the power to drive social change, create jobs, support businesses, improve the environment and create a better world in which to live.” The 2017 RICS Africa Summit was facilitated by Gugulethu Cele, a senior anchor at CBNC; sponsored by Colliers International, Cushman & Wakefield Excellerate and the Green Building Council of South Africa; and supported by the International Facilities Management Association.
About the Royal Institution of Chartered Surveyors
FROM LEFT Bennet Kpentey, Jennifer Welsh, James Dadson and Obi Oliobi
London‐based RICS is a global professional body that promotes and enforces the highest qualifications and standards in the areas of land, real estate, construction and infrastructure. As a public-benefit organisation, it operates in all the world’s major financial hubs, delivering international standards and policy influence. SOUTH AFRICAN PROPERTY REVIEW
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valuations
Global methods of measurement: the new way forward As the world becomes increasingly globalised, those looking to invest in real estate are seeking opportunities outside their traditional local areas, BUT with possibly hundreds of different standards and methods for the measurement of buildings for transaction and valuations, how can investors be sure of what they are getting. Extract from Australia and New Zealand Property Journal (March 2017) By Vanessa Mitchell
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he issue is clear: different standards and methods of measurement for buildings apply in every developed country and on every continent of the globe. Whether it is industrial, retail, residential or office space, how a space is measured – and therefore what you potentially get for your money – can be completely different depending on what market you are in. As investors look to expand their property portfolios outside their own countries, it is becoming abundantly obvious that one clear, easy-to-understand method of measurement for building types is needed on a global scale. Now, thanks to the International Property Measurement Standards Coalition (IPMSC), this necessity is becoming a reality, and the Australian Property Institute (API) is helping to lead the way.
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It is becoming abundantly obvious that one clear, easy-tounderstand method of measurement for building types is needed on a global scale Allen Crawford, API member, Managing Director of Chesterton Property Advisors, and Vice Chairman of the IPMS Standard Setting Committee
The API, as a founding member of the IPMSC, is heading the charge to bring about the harmonisation of national property standards through the creation and adoption of agreed international standards for the measurement of buildings. With this in mind, the API recently released a new Technical Information Paper (TIP) on Methods of Measurement that aims to provide a national guide to API members for the consistent application of the measurement of buildings. The TIP recognises the standards produced by the IPMSC, and places Australia front and centre as a leader in global methods of measurement change. The IPMSC, which held its first meeting at the World Bank in Washington, DC in May 2013, is made up of 87 leading professional, not-for-profit and non-governmental organisations, and is focused on developing a principlebased standard for the way buildings are measured globally.
valuations
A Standards Setting Committee of 19 independent experts appointed by the IPMSC has been hard at work drafting new International Property Measurement Standards. It aims to promote market efficiency through greater confidence between investors and occupiers by providing consistent measurements for transactions and valuations. Allen Crawford, API member, Managing Director of Chesterton Property Advisors, and Vice Chairman of the IPMS Standard Setting Committee, says that with so many different methods of measurement in use across the world, it is almost impossible for global investors and occupiers to accurately compare similar spaces. “Different standards apply depending on which country you’re in,” he says. “For example, some countries in Europe don’t measure shop size to the mall line – they measure shop size to the centre of the mall. The US includes shared ground floor foyers in their measurements; and the UK deducts columns from their measurements while some other countries include all columns. “Also, real estate is far more dynamic now than it was even a decade ago – but certain countries have been using the same methods of measurement for more than 30 years. “It became very clear back in 2013 that there needs to be one global method of measurement for various building types. The IPMS brings together a very diverse crosssection of experts across all disciplines to help realise this. Those experts have property experience in 140 countries. “The IPMS has already released global standards of measurement for office buildings and residential buildings, and we hope to release standards for industrial buildings and retail buildings in the next 18 months. With this in mind, the TIP recently released by the API aims to be fully fluid and in line with IPMS recommendations, and ensures the appropriate measuring convention is used for the appropriate circumstances. “An underlying principle of the TIP, and the IPMS, is that physical measurement is a matter of fact, not opinion.” According to the API, with the implementation of global property measurement standards, properties will be consistently measured, creating a more
transparent marketplace, greater public trust, stronger investor confidence and increased market stability. Crawford reports that the changes between the NLA adopted by the Property Council of Australia and IPMS 3 Office are: ●● The external wall is measured to the Dominant Face in IPMS, but to the Internal Dominant Portion in PCA. Both consider whether the window pane or the wall to floor junction is more than 50% and adapt the measurement accordingly. NLA looks at the whole length of the wall, whereas IPMS looks at each section of a wall length. ●● IPMS includes all areas, whereas NLA excludes areas that do not have a clearance of 1,5 metres. For whole-floor tenancies, NLA excludes areas where lifts face other lifts, but IPMS includes those areas. ●● Residential is much harder. The boundaries of strata title and hence the area of a strata title unit is different in every state and territory in Australia. IPMS has adopted a measurement convention 3A, which is similar to the PCA method of measurement for residential buildings. The TIP directs this is the measurement to be adopted by API members. ●● IPMS includes three measurement sections. IPMS 1 is a gross area, external wall which can be used for summary costing of development. IPMS 2 is an internal face of external wall measurements. They are the same for all building classes. We apportion those areas into components that are a useful tool for Facility Management. IPMS 3 is designed for transactional (and hence valuation) purposes.
he says. “It’s not going to change overnight. There are many entrenched views all around the world. “But as leases are renewed and the market evolves, the new standards will naturally be adopted. “Following the release of the four main categories of buildings – industrial, retail residential and office – we are then hoping to look at specialised properties, such as airports and hotels, in the future.” The TIP on Methods of Measurement is available on the API website, api.org.au/ technical-information-papers. For more information on the IPMS and global standards visit ipmsc.org.
“The IPMSC has already released global standards of measurement for office buildings and residential buildings, and we hope to release standards for industrial buildings and retail buildings within the next 18 months”
Crawford admits the process of implementing a global set of standards for measurement is an ambitious project. “While we hope that standards for all four property categories will be out by the end of this year, we understand the adoption of these standards globally will take much longer,” SOUTH AFRICAN PROPERTY REVIEW
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valuations
When integrity is non-negotiable Respected entrepreneur and CEO of the Valuator Group Gavin Commins speaks to South African Property Review Editor Mark Pettipher about the multifaceted role of a successful professional valuer in today’s property climate
By Mark Pettipher and Marguerite Lithgow.
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efining his profession, Gavin Commins says, “For an open market valuation you need a willing seller and a willing buyer. The valuer’s role in the commercial property transaction cycle is to determine value by providing an independent, arm’s-length valuation. Importantly, when the valuation is put on the table, it needs to be defendable. A valuation is always going to be subjective in essence, so it is imperative it’s motivated by research, combined with economics, logic, and experience attached to methodology.” The Valuator Group is a multifaceted valuation company covering most specialised assets for both market and insurance purposes. “Anyone looking for an independent valuation can approach us – we work for a diverse range of clients,” says Commins. “One usually deals with someone in senior management, such as the financial director. Credibility and discretion are of the utmost importance. “A valuation for market value, replacement value and municipal valuations for rates and taxes, all need professional input. From a banker’s perspective, mortgages and loans require a valuation to be done by a valuer, and an attorney dealing with trusts and deceased estates requires an independent valuation to be given, right down to SARS level. “A property listed fund in the related industry of compliance and regulations has an obligatory annual report to submit to shareholders. To be correctly compliant, it isn’t appropriate to value one’s own portfolio. Nowadays, all property businesses tend to employ a professional valuer for an assessment, presenting it to shareholders as an independent professional evaluation. The procedure might not be regulated but, through the corporate governance process, one must have a valuation done. As with an ISO, a professional procedure is followed. “In the body corporate market, trustees are now held personally liable for any consequences of non-compliance. If a building burns down and the trustees haven’t followed the required procedure to have the property correctly valued, their
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“A vital starting point for an up-and-coming valuer to remember, at all times, is that it’s all about credibility. The RICS membership shows very clearly that the Code of Conduct plays a huge part, irrespective of qualifications”
insurance company will question the evaluation and apply the average clause, with huge financial consequences. Regulations are happening now in this sector, and new legislation is on its way. “Most prefer to be forward-thinking and cover for eventual disaster. Certain funds must be kept in place. Regulations are currently being written and passed into legislation. Since 2008, we’ve all been subject to huge corporate governance innovation, which is a positive thing, with the National Association of Managing Agents of South Africa (NAMASA) being the organisation looking after the governance of bodies corporate.
valuations “All property, moveable and fixed, has value. In the commercial, retail, industrial and highend residential space, we look at whether it’s an income earning asset, and also whether it’s a lifestyle asset, which is not a commercial characteristic. Commercial properties are generally valued on an income stream discount cash flow basis. The most magnificent building you’ve ever seen might be A-grade office space but if the cash flow is not there, it has no value to an investor. It’s straightforward: the valuer looks at the yield, the capital rate, does the evaluation and comes up with a value. “In a slightly different scenario, a wine farm, for example, might be an income-earning operation but, from the owner’s perspective, it has a degree of lifestyle to it because it has an enjoyment factor. The property itself might be a historical site, it might have room for expansion, or it might be unique – perhaps with a unique view, for instance. In such circumstances, we do both types of valuation – an income-generated valuation as well as a property valuation. We simply take the value of the building and improvements, apply a depreciation rate to what we believe is fair value for the building and improvements, then add back the land at market value. “Governed in South Africa by the South African Council for the Property Valuers Profession (SACPVP), the individual is the member, not the company. There is thus joint shouldering of responsibility between the valuers and the company. You must have a qualified valuer of the South African Institute of Valuers (SAIV) and the Professional Council for an insurance valuation for a broker to an insurer. “Our valuers are part of a professional institution, accepted in the industry; and our valuations, including for insurance purposes, must be defendable in a court of law. An evaluation is a form of insurance in which an asset can be attached to a portfolio. “For the individual member, the are other career options, such as the Royal Institution of Chartered Surveyors (RICS). RICS offers a range of career options. I am a qualified RICS business valuer, and the methodology principles are exactly the same as for property. “Another great value RICS brings to the table is that the valuation company now has rules and regulations too – because you do need both. The Valuator Group is regulated by RICS, and a company must be compliant to become a RICS member. It’s audited annually by RICS Europe, which looks after Africa. The Code of Conduct (the Red Book) is a huge part of the RICS organisation which, from a company perspective, strengthens the professionalism of the whole industry.
“All African countries now demand the RICS qualification as the only recognised currency for valuations. We are seeing enormous changes here within a very short time thanks to our RICS member TC Chetty’s industry. He works with all local councils and bodies to get everyone RICS-compliant. “We’d like to see a compulsory property inspection report instituted for raising finance in the property market, as in Dubai and the United Kingdom. It protects a naive buyer from being conned by latent defects, replacing the ‘voetstoots’ arrangement. An assessment for rating property maintenance is also needed.
“Governed in South Africa by the South African Council for the Property Valuers Profession (SACPVP), the individual is the member, not the company. There is thus joint shouldering of responsibility between the valuers and the company. You must have a qualified valuer of the South African Institute of Valuers (SAIV) and the Professional Council for an insurance valuation for a broker to an insurer. “For South Africa to be a truly First World destination attractive to foreign investment, standards must be upped – and controls to protect the buyer are the only professional option. South Africa was recently reported as the cheapest place in the world to retire. Retirees from Germany, Switzerland and elsewhere will want that kind of protection before purchasing, and will demand the same professional standards they get in Europe. They’ll want the Is dotted and the Ts crossed in every aspect of a property transaction. It’s a great thing for property in South Africa to have emerging bodies such as RICS, SAPOA and CESOS, each with different roles, sharing a common ethic of collaboration to bring in international standards.”
Discussing valuations for foreign clients and currency exchange fluctuations, Commins says, “We have several international clients. A house property in Hermanus replicated identically in Dubai will have a different value because it has different circumstances attached, so the valuation company must understand market trends. We look at comparable sales in the market, and there has to be an internationally used currency denominator depending on the client’s base. “In property, RICS covers three sectors – quantity surveying, land surveying and valuation. In South Africa, one needs to be a member of the SACPVP and SAIV. Being well entrenched, it can be studied at a technikon or university, with an honours year specialising in valuations. After two years as a candidate valuer, you’re qualified. Through RICS, you need an undergraduate qualification as a rider to select your chosen path. “A vital starting point for an up-andcoming valuer to remember, at all times, is that it’s all about credibility. The RICS membership shows very clearly that the Code of Conduct plays a huge part, irrespective of qualifications. “Secondly, I recommend that a young, newly qualified valuer gains varied experience first by working for a big organisation such as Broll Property Group. There he or she will get the right kind of exposure by learning what they have to offer. It’s important to gain experience in more than just valuations. There is more than one aspect to the determinable value you put on the table, and you need insight into a broader sphere than pure valuations. With all the exposure nowadays to technology and accessed information, we have to be innovative and put something extra on the table. We continually look for added-value services for clients, to complement valuation and make us unique in terms of services we offer. “It’s regarded as an old man’s industry, and it’s not going to make you a multimillionaire – but if you are entrepreneurial, your exposure to the valuations side will create many opportunities, as it has done for me. A valuer needs to be alert to business opportunities for their loyal clients. “I think it’s a fantastic career for an individual. It covers a whole spectrum of different avenues to follow. Property valuation is about economics, and you need creativity when using your economic competence in a subjective environment.” SOUTH AFRICAN PROPERTY REVIEW
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one on one
A woman who’s not all about the numbers game On a daily, quantity surveyor Sandi Mbutuma is all about the rands and cents of building projects, and manages construction costs and contracts. It is the rare combination of mathematical ability and business acumen that has seen her grow from strength to strength
By Maud Nale Photograph by Xavier Saer
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andi Mbutuma is a quantity surveyorturned-businesswoman, who’s building an empire one building project at a time. She is the Managing Director and founder of Gauteng firm Azzaro Quantity Surveyors (Pty) Ltd, her labour of love – and hard work. “I am a quantity surveyor 24/7. I live and breathe the profession,” she says. She believes her combination of knowledge, experience and relationships built within the industry has prepared her for the next step in her career as a businesswoman. “After a rewarding 14-year career at various quantity surveying firms, I decided to take a leap of faith go at it on my own.”
From humble beginnings As a young girl growing up in Mdantsane township in East London, Mbutuma had no idea what quantity surveying was. “Back then, we were socialised to believe that medicine, law, teaching and nursing were the paying professions.” But after taking part in a pilot programme that sought to find her strengths and competencies, she realised that numbers fascinated her. By the time she was in Grade 12 in 1996, she had done a lot of research about the industry, and got to appreciate the construction industry as a whole and the different kaleidoscopes of what quantity surveying offered. Her curiosity for the profession led her to the University of Johannesburg in 2001, where she studied towards a diploma in building and later a BTech in quantity surveying.
An illustrious career She got her first taste of quantity surveying back in 1999, as a trainee at Bathuleng Wallace Raubenheimer, where she gained training in commercial building projects. She later joined Bham Tayob Khan & Matunda (BTKM) in 2001, where she served as a junior quantity
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one on one surveyor on commercial building projects and also received special training in empowerment. Her career path also led her to take up positions at TFMC and Brian Heineberg & Associates. Fast-forward to 2011, and she joined Pentad Quantity Surveyors as an Executive Director, shareholder and as the chair of the firm’s BEE portfolio. This took a total of 14 years, which Mbutuma regards as being “the most rewarding years of my career”.
Getting to the business of the day Being an entrepreneur was not always part of Mbutuma’s plan. Although she did prepare for it almost two years before taking the leap, the reality was the journey would not be without challenges. “Projects can take anything from six months to two years between concept and construction, and companies need to sustain themselves financially during that time as the projects are usually on risk,” she says. “Finding new clients, entering a market and competing for projects with established firms was a great challenge too.” As a director and shareholder, she also notes that the business of the day as a quantity surveyor is that you have to be a deal-maker. “A large part of our work is about securing sustainable projects. You have to bring in clients and projects that will sustain the company, draw skills sets and bring new entrants into the profession and industry.” Thankfully, the market was responsive, and the relationships she’d built previously helped her bridge the gap. “My fellow partners and colleagues also play a pivotal role in the development and growth of the company.”
“It’s all about relationships” Mbutuma has been involved in some prestigious, high-level projects, and is grateful for the mentorship and guidance she received from those she met along the journey. “I value the lessons I’ve learnt from my mentors, including Nicolas Sheard (of RLB Pentad Quantity Surveyors), Hashim Bham (of BTKM Quantity Surveyors) and Brian Heineberg (of Brian Heineberg & Associates),” she says. To her, it’s all about relationships, which she continues to nurture. “Relationships are very important,” she says. “It’s a small industry, and much of the time we are aligned on certain projects.”
Quantity surveying as an evolving industry As the property industry moves into the digital era, Mbutuma realises the landscape of quantity surveying has changed, and that the industry must adapt. “The turnaround times are very short now,” she says. “Projects that
previously took years to build are being completed in shorter timeframes. We are seeing a lot of this happening. Sites have become less laborious, and much of the work is now being done offsite.” She believes we are going to see many more modular programmes in quantity surveying. “Old and new ways of quantity surveying are merging to create a whole new ways of doing things.” Her predictions for the next five to 10 years? “I think the industry is moving towards being more modular. This is mainly in response to clients’ needs, as quantity surveying is a very customer-driven industry.”
“I value the lessons I’ve learnt from my mentors, including Nicolas Sheard (of RLB Pentad Quantity Surveyors), Hashim Bham (of BTKM Quantity Surveyors) and Brian Heineberg (of Brian Heineberg & Associates)”
“I’m still very involved in the property industry” In addition being a quantity surveyor, Mbutuma also shares her expertise as part of the judging panel for the SAPOA Property Development Awards for Innovative Excellence. As a quantity surveyor, her role on the committee includes advising on the development costs of the entries. “We look for the financial viability, yield, market, vacancy rates, the tenant mix and that wow factor. The entire model must work.” She is also amazed by the quality of entries received annually, and believes that South Africa is competing at a global level. “We can see the development landscape of South Africa being elevated to another level.” Having recently being appointed the chairperson of the Women’s Property Network (WPN), Mbutuma is also looking forward to putting a stamp on the role that females play in the industry. “Being a quantity surveyor in a chiefly male-dominated industry, I can definitely attest to the fact that the role of women in the built environment has evolved,” she says. “Having observed an increasing amount of new entrants and more female participation, I’m excited to be at the forefront of empowering women. Platforms such as the WPN give us a platform to showcase our skills and add value to the industry.” She wears many “caps” in the property industry, and believes in sharing expertise. She is thus also a board member of the Property Sector Charter Council, Exco Member of the Government Liaison Committee at SAPOA, and serves as a member of various other associations. It is clear that there is no stopping Mbutuma, for whom the sky seems to be the limit. Equipped with knowledge and experience, she has positioned herself well in her work as a quantity surveyor and in the various associations she is a part of, and will definitely continue to a force to be reckoned with in the property industry.
“The turnaround times are very short now. Projects that previously took years to build are being completed within shorter timeframes. Sites have become less laborious, and a lot of the work is now being done offsite” SOUTH AFRICAN PROPERTY REVIEW
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Limpopo IDP
Industry participation in the review of the City of Polokwane’s integrated development planning process 2017/18 Compiled by Jaco du Plessis
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he Polokwane local municipality’s Integrated Development Plan 2017/2018 review process commenced in July 2016. The integrated development planning (IDP) process serves as a strategic planning instrument for local authorities, and guides and informs all planning, budgeting, management and decision-making processes in district and local municipalities. In practice, the IDP serves as a comprehensive strategic business plan for municipalities over the short and medium term. The Municipal Systems Act of 2000 (MSA) requires that municipalities review their IDPs annually in accordance with an assessment of its performance measurements. Municipal IDPs affect the property industry directly and indirectly as policies, projects and budgets relating to all aspects of municipal governance and service delivery are formulated, debated and approved on an annual basis during IDP review process. The MSA stipulates that a municipality must establish appropriate mechanisms, processes and procedures to enable local communities to participate in the affairs of the municipality. SAPOA is an important representative stakeholder of the property industry in Polokwane and provides inputs to the annual IDP review process via the IDP representative forum. The Polokwane Municipality presented the draft IDP Status Quo Analysis Report during a representative forum meeting on 29 September 2016, and representative stakeholders were requested to comment and make representations to the municipality on the draft report. The Limpopo Region’s comments and concerns regarding the content of the Status Quo Analysis Report were conveyed to the Polokwane local municipality and are summarised below. The municipal boundaries of the Polokwane municipality were extended in 2016 with the merger of a large part of the Aganang municipal area with the Polokwane municipality. Aganang is a rural municipality
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with a very limited economic base, and the rural economy is essentially driven by government expenditure, which will pose a challenge for the financial sustainability of the Polokwane municipality, considering the low affordability levels of rural households and fiscal constraints that are being faced by government. The amalgamation of the Aganang and Polokwane municipalities will definitely have a negative impact on the budgetary resources of the Polokwane Municipality and the municipality’s capacity to deal with infrastructure and housing backlogs.
The existing Polokwane/ Perskebult town planning scheme (2007) is only applicable to the urban area of Polokwane city and Seshego, and some adjacent smallholdings and farm portions A moratorium on residential densification and township establishment was introduced in Polokwane City in May 2013 as a result of a lack of sufficient bulk water and sewerage infrastructure. SAPOA is seriously concerned with water supply figures in the IDP document, which state that the municipality receives between 80 and 94Ml/day while the peak flow demand is 163Ml/day. Similarly, the capacity of the municipal sewerage works is 28Ml/day while the current sewerage load is 34Ml/day. The municipality must address the bulk infrastructure situation as a matter of urgency and indicate to local developers when this moratorium, which is crippling residential development for the past 4 years, will be lifted. A new regional waste water
treatment plant is planned for the city, but construction has not commenced. Such a treatment plant will at best be operational two to three years from now. Water losses in Polokwane City and Seshego amount to 48%. Old asbestos pipes that need replacement are a major contributor to water losses. The municipality embarked on a programme to replace old asbestos pipes in the CBD and surrounding townships to limit water losses. SAPOA will request the Polokwane municipality to prioritise the replacement of asbestos pipes on the IDP budged as Polokwane City/Seshego cannot afford for half of the water supply to be lost because of a lack of infrastructure maintenance. The existing Polokwane/Perskebult town planning scheme (2007) is only applicable to the urban area of Polokwane City and Seshego, and some adjacent smallholdings and farm portions. The rural townships of Mankweng and Sebayeng will soon be included in the land use management scheme. The remaining commercial farming areas, rural villages and traditional authority areas are excluded from the town planning scheme. The inclusion of traditional authority areas is complicated because of informal land tenure, lack of buy-in from traditional authorities, lack of records, etc. The result of a lack of proper land use control measures in these commercial farming areas, rural villages and traditional authority areas is uncontrolled, informal and illegal land development, especially along main transport corridors close to the urban areas of Polokwane City and Seshego. Uncontrolled land invasion and informal settlement close to the urban areas of Polokwane City and Seshego are a major problem. Substantial land invasion occurs on the farm Duvenhageskraal 1136 LS to the southwest of the city near the Percy Fyfe road and on the farm Tweefontein 1001 LS to the east of the city along the R71 towards Mankweng and Tzaneen. SAPOA is concerned that the Polokwane municipality does not
SAPOA events
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2017/03/17 4:02 PM
Limpopo IDP The IDP Analysis document states that the non-implementation of strategic projects identified in the municipality’s Electricity Master Plan because of a shortage of funding will result in future load shedding. SAPOA will request the municipality to prioritise, budget for and implement these strategic projects as the city cannot afford for a lack of electricity to add to the bulk infrastructure woes currently experienced by property developers in the city
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exercise any control over such land invasion adjacent to the city’s boundaries, and that no municipal spatial planning is done for these areas to ensure that orderly development takes place. The uncontrolled settlement on land will put an additional burden on the city’s current insufficient water resources, pollute groundwater sources, and pose serious traffic problems because of illegal/ informal accesses onto the national Polokwane-Tzaneen R71 road. SAPOA is concerned about the lack of action against illegal land uses in and around the city. Numerous residential properties in Polokwane are utilised illegally for office and business purposes, and it seems that the Polokwane municipality lacks the capacity to act against such illegal activities. Illegal land uses are also a common sight on surrounding smallholdings. Owners of smallholdings develop residential rental units, industrial concerns and offices on their properties without following required land use application procedures. Inadequate septic tank systems on these properties are a serious concern, and property owners are complaining about the bad smell which results from overflowing septic tanks. SAPOA will request the local authority to address illegal land use practices in and around the city, and to act against the perpetrators. Property developers in Polokwane City experience problems in obtaining occupancy certificates for new buildings because of low water pressure in the municipal water reticulation systems. The Fire Services Unit of the municipality conducts fire water pressure tests on new building developments and does not provide an occupancy certificate if the water pressure is below the minimum requirement. Developers need to erect elevated storage tanks for new buildings (at considerable cost) to obtain the required water pressure, which will not be necessary if the municipal reticulation system has adequate water pressure. The IDP analysis document states that the non-implementation of strategic projects identified in the municipality’s Electricity Master Plan because of a shortage of funding will result in future load shedding. SAPOA will request the municipality to prioritise, budget for and implement these strategic projects as the city cannot afford for a lack of electricity to add to the bulk infrastructure woes currently experienced by property developers in the city. SAPOA is concerned that the IDP analysis document states that municipal fire-fighting services are under severe pressure due to old
vehicles and equipment that will soon be decommissioned. Certain vehicles and equipment (e.g. tankers) have already been decommissioned because of their bad condition, and limited life-saving equipment is procured because of budget limitations. A shortage of vehicles and equipment has a major impact on fire-fighting and rescue services. SAPOA is concerned the municipality will not be able to provide effective emergency and disaster management services in future. The Mall of the North/Mitchell House School Node and surrounding gated residential developments have only one point of access/egress to/from the R81 national road that links this node with Polokwane City to the west and the large settlements of Makotopong, Sebayeng and Dikgale to the east. The single-street access causes serious traffic congestion at peak hours at the School Street/R81 intersection. The traffic congestion affects people visiting the Mall of the North, parents dropping off or picking up learners at Mitchell House School, residents of the surrounding residential areas and people living in the settlements to the east of the city. SAPOA had discussions with the Polokwane municipality to try to find solutions to the traffic congestion issue, and will continue to put pressure on the municipality to address the situation. The Polokwane municipality is planning to develop a new municipal GIS system. SAPOA will request the municipality to provide the public with limited access to the new municipal GIS system to allow property developers and professional service providers access to property-related data within the municipal area. Spatial data made accessible to the public should include cadastral boundaries, property descriptions, township names and extensions, zonings, location of municipal service infrastructure, contours, etc. SAPOA will forward these points of concern to the Strategic Planning & IDP Unit of the Polokwane municipality during the commenting period allowed on the draft IDP document. SAPOA will also scrutinise the draft IDP Projects & Budget document to ensure that critical issues, e.g. bulk water and sewerage, be prioritised, projects be identified and such projects be included in the multiyear municipal budget for implementation. Compiled and submitted by: Jaco du Plessis Pieterse, Du Toit & Associates (Pty) Ltd Town and Regional Planners in Polokwane e: jaco@profplanners.co.za
SAPOA events
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SAIBPP
Driving transformation in the South African property sector Nkuli Bogopa, the President of the South African Institute of Black Property Practitioners (SAIBPP), is passionate about transformation of the property sector. She is driven by the need to raise awareness, understanding and acceptance, and committed to the importance of transformation as a critical long-term imperative for all South Africa’s economic sector By Stanley Karombo
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“SAIBPP is also calling for the government to commit to increasing total procurement spend to at least 50% for black-owned, managed and controlled companies in the next two to three years”
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he SAIBPP has the key objective of driving transformation in the South African property sector, says Bogopa. This is achieved by facilitating economic participation and skills development for previously disadvantaged individuals, and ensuring more representative participation in the property industry. She has many years of experience in the property sector, which she gained while she was at the world’s second-biggest miner, Rio Tinto. She gained extensive knowledge in the commercial property sector, before joining SAIBPP in November 2015. Bogopa is no stranger to leading organisations. While at Rio Tinto, she was the Group Property Manager for Southern Africa. She managed to turn around the SAIBPP, which consists of about 500 skilled black property practitioners and property owners, including professionals, business leaders, suppliers and stakeholders from both the private and the public sector. It also includes corporates listed on the JSE, banks, and the Reserve Bank of South Africa. The SAIBPP has seen massive growth during her two-year tenure at the helm. Bogopa, says she is happy to champion transformation, incorporate the ideas learnt at Rio Tinto and champion transformation in property in South Africa. Some critics argue that transforming South Africa’s R5,8-trillion property industry is an insurmountable task, while most participants are very slow in transforming. “I believe the government must play an enabling role for transformation to finally take place in the property sector,” she says. Bogopa, who draws her inspiration from strong, driven and like-minded people in the property industry, believes education is important – but commitment is just as important. Her advice to young South Africans coming in to the industry is that they must work hard. She also believes that the South African government is taking on this challenge by
encouraging transformation not only in corporates but in small business as well. Bogopa feels she needs to continue to increase SAIBPP’s presence. She intends to build on the strong team around her and work towards a closer relationship with government. The plan is important because there is a lot of advocacy involved, and government engagement will be greater. Meanwhile, she says SAIBPP supports the government move to expedite the transformation of the property sector. The organisation does, however, caution that this will require actionable programmes and clear, time-based implementation strategies to guarantee success. It is key to note that, without the support of a solid implementation strategy and measurable targets, it is unlikely we will see results in either the short or medium term. “Private residential property ownership accounts for R3,9-trillion of the property sector,” says Bogopa. “The commercial sector still remains frighteningly untransformed, with less than 10% being black-owned, managed and controlled.” Currently, less than 20% of the buildings occupied by government departments are black-owned, managed and controlled, resulting in 80% of government lease spend going to B-BBEE-compliant but untransformed companies. Of the 40-plus JSE-listed property funds, less than 10% are black originated and managed. This is unacceptable 23 years into democracy, given the abundance of skilled and capable black property professionals, many of whom are SAIBPP members. The only way to catalyse black ownership in the property sector and grow the industry is for government, as a key stakeholder in the sector (which is valued at approximately R6-trillion) to urgently cease lease renewals for untransformed companies and replace these with long-term leases for black-owned,
SAIBPP
managed and controlled property funds and new entrants. This will send a strong message that government is pro-transformation – a necessary catalyst for the transformation of the property sector. “SAIBPP is also calling for government to commit to increasing total procurement spend to at least 50% for blackowned, managed and controlled companies in the next two to three years,” she says. “This will have a positive impact on the entire property industry value chain, stimulate black industrialisation and create sustainable jobs. As black people, we can no longer accept being treated like political benchwarmers, perpetually being ‘enterprise development candidates’ and ‘upskilled’ but never given real access to opportunities. We have the skills and the experience, and we are ready!” The SAIBPP is also committed to seeing the adoption of the Property Incubation Programme within the Department of Public Works that will give new entrants access to the property industry and encourage growth and competitiveness. Making land available to previously marginalised groups, black people, women and youth is key to ensuring equitable redistribution and growth of the property sector and the economy. Bogopa is not, however, a proponent of giving land to black people simply for it’s own sake. “Whether the land is intended for property, or for agriculture, the recipient must have the expertise, skills and know how to benefit from it’s value,” she explained. “We continue to work closely with the relevant government departments and our members to ensure these objectives are swiftly implemented and achieved,” says Bogopa. The mother of two kids, who after work spends her time with family, believes that if government has a political will for transformation, nothing will scuttle the process. “We’re bullish about the future,” she says. SOUTH AFRICAN PROPERTY REVIEW
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one on one
In search of common ground Dr Geci Karuri-Sebina is the Executive Director of Programmes at the South African Cities Network, where she manages the research programme. She has two decades of experience working and publishing in the fields of urban development, urban policy, innovation and foresight. South African Property Review caught up with her in Johannesburg to talk about the changing South African cities By Mark Pettipher
U
rban knowledge generation and application is the South African Cities Network’s (SACN) key function. As both a research source and a catalyst for development policy and debate, the SACN covers the full scope of the urban management process, including development, inclusive cities, sustainable cities, well governed cities and productive cities.
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Funded by South Africa’s major cities, the SACN – in conjunction with other state bodies, including the Department of Corporate Governance, the Department of Human Settlements, Public Works, National Treasury, the National Planning Commission and South African Local Government Association – produces information on good governance, and undertakes specific research on common
interest urban development topics such as effective public transport systems, human settlements and municipal financing approaches. It also supports advocacy by member metros, and produces reports such as the State of the Cities reports. Karuri-Sebina gives us an insight as to what the South African Cities Network is all about: “We invest in collaborative building and sharing of relevant information between the metros, and seek out international advances and learnings that could be relevant or instructive for South Africa’s cities,” she says. “Of great importance to us is supporting the development of effective policy, urban governance, and communication within and beyond the network of cities, coupled with advocacy through collaboration with partners such as SAPOA. “We strongly advocate for sustainability and transformation in our cities and urban environments, particularly with reference to Spatial Transformation – a recurrent theme in our State of Cities reports. We engage between regional-, city- and precinct-level scales to help advance a knowledge-driven agenda through engagement with the cities and other key role-players. This may include, for example, considering how cities can be more energyefficient and sustainable, which approaches and processes move them towards best practice, and even nudge them towards improvements in their systems and procedures. “SACN has contributed significantly to policy thinking in areas like Transit-Orientated Development (TOD) and Sustainable human settlements. We have also pushed the boundaries in seeking to understand issues such as urban and township economies, and how to finance metros in sustainable ways that support economic growth but do not necessitate gentrification. “We are very much ideas people. We may, for example, ask how development corridors could best be developed, and how they can be economically effective and inclusive. By working with the likes of SAPOA and the National Business Initiative,
one on one for example, we would engage with the metros and help to co-facilitate relevant research or dialogue between the public and private sectors. “The SACN encourages dialogue with the private sector, and has worked strategically with SAPOA for a number of years. In this respect, should the members have a need for a report on a specific topic or a framework for a certain type of urban development, we have the capability to investigate it and set up platforms or forums for engagement. “Take spatial transformation as an example. When the Johannesburg Development Agency approached us about needing a more tangible engagement with what it would mean for the city and how current practices could be showcased for learning and dissemination, we came on board to co-produce a Spatial Transformation Conference in Johannesburg, where we invited experts – both international and local – to speak and engage on this question. We involved SAPOA and developers, but also the minister, the mayor, relevant city executives, and key experts in the field. By bringing together the key actors, we were able to ensure a constructive, knowledgeand practice-based dialogue with the private and public sectors. “What value can we add to developers and the private sector? We have a body of existing research and intelligence, which may answer some of the early contextual and due-diligence questions that a developer may have. We spend our time trying to understand our cities better, and we freely share this knowledge. “Networking is also an important part of our operation. We work closely with practitioners in the metros, which may help with putting the private sector players in touch with the relevant public officials. We do not, however, work at the level of specific transactions and developments as our role is more strategic. “Our goal is to get cities to work, and being a-political, we are here to serve the public interest. Disruptive change, such as that which occurs when a new mayor comes to a metro, is not necessarily a bad thing, and in fact it is something we should expect. Cities gain new ideas and new ways of working, and organisations such as ours get new opportunities to influence how things work. “Inherited cities and their redevelopment present a particular set of challenges. We need to address old legacy infrastructure and transform the effects of old spatial legislation and planning. We reflect on this in our recent
State of Cities Report, where we suggested that we are generally faced with a city of the past, which has evolved into the city we have now, while we aspire to a city of the future. The conundrum is what choices take priority. How we spend the city’s budget is an extremely complex and contested situation to deal with. “But cities do tend to be contested spaces, so we need to have leaders and officials that are able to motivate for developments in one area over another, and control for this. Any private development is built on a public infrastructure and resource base; each new development, be it in Sandton or Soweto, benefits from the public infrastructure and municipal services that are put in place.
“We need the kind of social cohesion in cities where people can see potential for opportunities that can be borne even out previously dysfunctional urban environments” “Both the private and the public sector benefit from a new development or rejuvenation project, first by generating employment through the actual construction of the project, and then through the longterm services and economic activities that result from the changes. “But research shows that urban development must also keep in mind how the full system works. Questions such as where the workers will live, how they will be accommodated and how they will get to the development are questions that need to be considered from the outset in a new South Africa. Otherwise, we should not be surprised by mushrooming slums or growing inequality – they are a logical consequence of our actions. “When planning urban developments, we have to consider many practical issues – mixing income, race, class, use of public transport and commute times as well as cost implications. Everywhere, we are realising that we cannot continue to develop cities that require private cars and long commutes. The Integrated Urban Development Framework,
which is South Africa’s new urban policy, encourages urban developments that create mixed-use environments, open spaces and live-work-play precincts that are within easy reach of all concerned. “The SACN, together with our network of affiliated institutions, provides opportunities for open dialogue, which we hope will lead us towards a win-win outcome – a search for common ground. “Given the complicated notion that a city thrives because of its private sector, open public and private sector interaction is crucial to building a cohesive and sophisticated modern city. “A lot can be said about the importance of grassroots education and developing the awareness of the metro’s populace about their own relationship with urban space and governance. This begins with an acute understanding of how we live, where people are in relation to schools, healthcare, work, facilities and amenities, and why this matters. The conscious engagement of communities with these issues matters as we move forward. “Part of South Africa’s transformation is the encouragement of civic activity, and associations that can help to foster – through their direct interest and participation – communities that are inclusive, breaking down old stigmas. We need the kind of social cohesion in cities where people can see potential for opportunities that can be borne even out previously dysfunctional urban environments. An example of a planning response has been TOD, such as Johannesburg’s “Corridors of Freedom”. While the idea of densifying along corridors and following TOD principles is not something that is new, TODs are the flavour of the times and present certain opportunities. The SACN would be interested in understanding how TODs could have greatest socioeconomic impact – in terms of configurations that feed those transport corridors, settlement nodes and forms that encourage and optimise investment in public transport and future property development. TOD could, in this way, help to effect the spatial transformation of our cities. “The SACN also encourages and supports cities to make bold statements of their longterm intentions, and encourage public communication and participation. We find that everywhere there is a deep desire to do the right thing. Cities – both city governments and the range of city actors – are all trying to figure things out and do better. They can use organisations such as ours to provide the kind of knowledge base that could help provide road maps for the way forward.” SOUTH AFRICAN PROPERTY REVIEW
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people in profile
Alan Stephenson
Scott Aldridge
Stephen de Klerk
Managing Director
Director
Director
Mills Fitchet (Natal)
Mills Fitchet (Natal)
Mills Fitchet (Natal)
Alan Stephenson was raised on a poultry and timber farm in Swaziland, and attended Hilton College in KZN. He has a bachelor’s degree in agricultural management from the University of Natal, as well as an LLB. He also attended the Royal Agricultural College in the UK to obtain a post-graduate diploma in advanced farm management, before taking a study tour of the University of Guelph in Ontario, Canada. He worked on a wheat farm in the UK owned by Lord Rothschild, a sheep/cattle farm in New Zealand and a mixed farm in Israel. In 1987, Stephenson joined Mills Fitchet Property Valuers in Pietermaritzburg, and worked as an estate agent and valuer under the mentorship of Pat Mills. Mills taught him that, in valuations, no stone should be left unturned. After writing the SA Professional Valuers exams and attending the American Institute of Real Estate Appraisers course in Columbia SC, Stephenson became the Managing Director of Mills Fitchet Natal in 1991, a position he still holds. He has undertaken agricultural, commercial, industrial and residential valuations in South Africa, Swaziland, Zambia and Zimbabwe, and is the appointed Municipal Valuer to 15 municipalities. Interesting assignments include the valuation of Nelson Mandela’s properties in Qunu, Transkei and appearing as an expert witness at the World Bank in Washington DC. Stephenson is an appointed Assessor to the Land Claims Court, and the first South African to obtain a diploma in international arbitration through the Royal Institute of Chartered Surveyors.
Scott Aldridge was born in the Cape but has spent the better part of his life in the KZN Midlands. He has worked in the property industry for the past 22 years, starting as a real estate agent and then specialising in property valuation. Aldridge completed a national diploma in real estate (property valuation) in 2000 and has 16 years of experience in all facets of property valuation including commercial, industrial, agricultural, residential, municipal and specialised properties. Having qualified as a professional associated valuer in 2003, he was awarded the KwaZulu-Natal branch prize for Best Student in Practical Valuation in 2003 by The South African Institute of Valuers. He was registered as a professional valuer in 2009. He has acted as municipal valuer and assistant municipal valuer in a number of general valuations over the past 10 years, and has extensive experience in mass valuations, valuation roll maintenance, objections and appeals. He is a member of the Institute of Valuers and was a former member of the Branch Executive in KwaZuluNatal, also serving as Vice Chairman. Outside of the office, Aldridge enjoys exploring the trails surrounding his home town of Howick, either on foot or on his mountain bike. He is married and has two young daughters. He and his wife spend a lot of their free time improving and creating value in their small portfolio of investment properties.
Stephen de Klerk has more than 28 years of experience in project management, property development, facilities management, management consulting and property valuations. After completing a building sciences degree at Wits in 1986, he did two years of national service in the engineering corps, where he started managing projects. In 1995 he completed a master’s degree in project management and property development at Wits. De Klerk has worked for a number of property development companies. His experience covers feasibility studies, township establishment, construction, and sales and marketing for various development schemes from low-cost housing to residential estates and office and industrial parks. He also worked as a management consultant in business cases, facilities management and PPPs. In 2003, he made a life changing decision and left Johannesburg for the KZN Midlands, where he joined Mills Fitchet and qualified as a professional valuer. Mills Fitchet is one of the largest property valuation practices in the country, covering all aspects of property valuations. De Klerk is a director, and now has more than 14 years of experience in property valuations, including residential, commercial, industrial, retail, development land, farms, game farms, standing timber, land claims, expropriations, servitudes, municipal valuation rolls and other specialised properties. He is married with two children, and enjoys an active lifestyle of mountain biking, running, hiking and water skiing.
+27 (0)33 330 6990 alans@millsfitchet.co.za www.millsfitchet.com
+27 (0)33 330 6990 scotta@millsfitchet.co.za www.millsfitchet.com
+27 (0)33 330 6990 stephendk@millsfitchet.co.za www.millsfitchet.com
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SAPOA events
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SAPOA events
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events
Gauteng Broker’s Legal Forum The SAPOA Broker Committee kicked off the year with its first legal forum, sponsored by Cliffe Dekker Hofmeyr (CDH), and held at the CDH offices in Sandton
Photographs by Thabang Radebe
FROM LEFT Burton Meyer, Janke Strydom, Nicole Meyer and Attie Pretorius of Cliffe Dekker Hofmeyr
The full-service commercial law firm specialising in (among other practice areas) real estate and dispute resolution, shared its knowledge and expertise on topical, relevant issues relating to commercial brokers. Janke Strydom, Senior Associate: Real Estate, facilitated a discussion on the sale of letting enterprises in terms of contractual clauses that are often overlooked. The discussion on transacting in the property sphere from a litigation perspective,
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including confidentiality and non-disclosure agreements as well as alternative dispute resolution, was facilitated by Nicole Meyer, Senior Associate: Dispute Resolution. According to Rene Styber, Chairperson of the SAPOA National Brokers Committee, “Dispute resolution – and how a broker can be treated fairly without going to court – is particularly relevant to our brokers right now. They need practical advice when it comes to avoiding a dispute.”
Marita Meyer
events
FROM LEFT Bruce Clark, Graham Marder and Paul Levin
Vita Wilkens
FROM LEFT Luke Weschta, Milenka Rajak and Barry Wilson
FROM LEFT SAPOA National Broker Committee Chairperson Rene Styber with Lisa Crossley and Jenny Carazzo
FROM LEFT Jacky Davis, Kearon Hardy and Kayne Jeacocks
t:+27 (0)11 562 1101 attie.pretorius@cdhlegal.com www.cliffedekkerhofmeyr.com SOUTH AFRICAN PROPERTY REVIEW
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events
Columbia Business School Real Estate Association trek to South Africa 2017 The Real Estate Association at Columbia Business School, based in New York in the US, sent 37 MBA students to Johannesburg and Cape Town during March to meet with industry leaders
One of the largest and most active clubs at Columbia Business School, the Columbia Real Estate Association (REA) is a resource for MBA students interested in pursuing a career in the real estate industry, from property development and management to real estate, portfolio management, acquisitions, asset management, finance and investment. The student team hosted a networking evening in Johannesburg on 13 March 2017, where students got the opportunity to meet and network with industry leaders. Among those in attendance were SAPOA CEO Neil Gopal and President Nomzamo Radebe. Other organisations on the itinerary were Growthpoint Properties, Nedbank, Kecia Rust from CAHF, International Housing Solutions, Devmark, V&A Waterfront, and the Green Building Council of South Africa.
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events
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events
Further increasing the property management pool SAPOA and Wits University honour the Property Management class of 2016 By Maud Nale Photographs by Xavier Saer
T
he certification ceremony for the one-year SAPOA Property Management course took place on 23 February in Johannesburg. The course is the result of an ongoing collaborative effort between SAPOA and the University of the Witwatersrand. According to SAPOA CEO Neil Gopal, one of SAPOA’s main objectives is to provide professionally designed programmes to introduce prospective students to a career in the property industry. “One of the key value forces of SAPOA is to contribute to the advancement of our members’ interests in commercial property,” says Gopal. “As a professional association, our education efforts are aimed at increasing the knowledge and skills for the property industry as a whole among employees, ensuring that the content of our programmes and workshops and other educational interventions is aligned with industry needs, and raising the employability and competency of the practitioners and the professionals in our industry.”
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Professor Samuel Azasu of the School of Construction and Economics Management thanked SAPOA and the training team for the hard work and collaborative effort. “We wanted to provide courses that resulted in our graduates being the sources of innovation,
new ideas, new products and services, as well as reporting standards and formats in the industry,” he said. “Our working relationship with SAPOA continues to grow, and we look forward to all the collaborative work throughout the year.”
FROM LEFT Prof David Root, SAPOA CEO Neil Gopal, Prof Samuel Azasu, SAPOA Education & Training Manger Portia Mkhabela, SAPOA President Nomzamo Radebe and Prof Ian Jandrell
events
Stakeholders, including SAPOA and Wits University representatives and graduates
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events
Port Elizabeth breakfast session SAPOA is actively involved in the Integrated Development Process across the various municipalities
FROM LEFT Rob Edelson (PE Regional Vice Chairman); Maartje Weyers from Plan4SA; Councillor Annette Lovemore, the MMC for Infrastructure, Engineering, Electricity and Energy at The Nelson Mandela Bay Municipality; and Mark Bakker (PE Regional Chairman)
As part of Nelson Mandela Bay’s participation, SAPOA Port Elizabeth hosted an interactive breakfast session entitled “Crafting A City Vision”. Guest speakers included Maartje Weyers from Plan4SA, and Councillor Annette Lovemore, MMC for Infrastructure, Engineering, Electricity and Energy at the Nelson Mandela Bay Municipality. Weyers, who has been appointed by SAPOA to assist the region in the latest Integrated Development Plan, discussed the current process as well as the importance of the commercial and industrial property sector citizens of Nelson Mandela Bay who contribute towards the municipality’s development plans and achieving the goals of the IDP. Lovemore discussed the Nelson Mandela Bay Municipality’s vision, goals and key focus areas in relation to the IDP. The engagement session ended with a lucky prize draw, which was sponsored by Syntell and Mikros Traffic Monitoring.
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Peter O’Kennedy and Jasper Burden
Mark Hunter-Smith and Andrew Thomson
events
Jasper Burden
Pani Patsalos
Peter Inman
Peter Merrington and Mike Palframan
Errol Ritson
Ivan Edelson and Graham Boyd
Derek Zimmerman
Bruce Munnings and Stacy Schnablegger
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events
KZN Breakfast Seminar: InRodes to the Future Sossies, social networking and solemn advice were the flavour of the morning as the commercial and industrial brawn of Durban gathered to hear property economist, valuer and researcher Erwin Rode at a breakfast hosted by SAPOA KZN Regional Council and sponsored by Business Partners By Andre Fiore Photographs by Val Adamson
T
he topic, “Long-Term Future Trends of Property Investments in South Africa and How to Maximise Your Investments”, sparked much debate as spoons clinked and coffee was quaffed at the Mount Edgecombe Country Club. In his welcoming address, SAPOA KZN Regional Chairman and Executive Director at Maxprop Edwin van Niekerk spoke about the importance of building relationships and encouraged guests to effect economic transformation wherever possible in their business. He discussed the progress that SAPOA KZN had made in its relationship with the city and the mayor, and the hope that, through its involvement with Team Durban, it would be able to intensify the drive of UIPs across Durban. Warren Lester, Investment Manager at Business Partners, discussed the company’s passion for funding, supporting and mentoring entrepreneurs. A specialist risk financier established in 1981, Business Partners is proud to provide customised financial solutions for lifestyle SMEs, and has to date invested more than R16-billion in the South African economy. One of its most popular products, 100%
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property finance, allows entrepreneurs to own their business premises outright, yet still make use of services ranging from due diligence to property management from Business Partners. “We have the funds, we know the market and we are here to support entrepreneurs in Durban,” Lester said. CEO of Rode & Associates Erwin Rode took the podium, explaining that he is dependent for data on the goodwill and contributions of commercial and industrial brokers. He thanked, among others in the Durban area, Frank Reardon of Broll. He then turned to the economy, which he said is still in a serious recession and has been going through gradual structural change. In his view, the economy is losing its vigour. An investment in brick and mortar, Rode acknowledged, is traditionally a long-term investment – and with the property cycle globally being 15 to 20 years, it’s important to note that there are long times when property is not such a good investment as well as short spurts when it’s an incredible investment. The implications for landlords and asset managers for the next five to 10 years, Rode says, are that the economy seems to be in
a protracted low-growth era. Over-rentedness is common and may become worse as long as contractual escalation rates are at eight percent – which means that pampering one’s tenants is highly recommended. On a more positive note, Rode highlighted the fact that industrial rentals in Durban have been outperforming those in central Witwatersrand since 2004. Similarly, he found the two percent growth rate of the tertiary sector versus the GDP to be “reasonable” for a developing country. The thought-provoking material of the seminar was succinctly summarised by Van Niekerk, who pointed out that the competitive advantage offered by Durban in terms of lifestyle, in conjunction with the abundant green development, worklive-play offerings and the digital explosion, is ripe for capitalisation, invigoration and communication. Rode endorsed the positive role precinct management can play by managing the public space and thereby adding value to the surrounding properties. In addition, the lifestyle is improved, attracting the skills that are one of the drivers of the economy.
events
FROM LEFT Warren Lester, Edwin Rode and Edwin van Niekerk.
Brian Wright and Kevan Govender
FROM LEFT Greg Veerasamy, Karen Peterson, Kate Ralfe and Nkopodi Nkopodi
Joshua Pillay and Grant Gibson
FROM LEFT David Jollands, Fiona Hodge, Mohsin Shaik and Soo Meyer
Ben Moodley and Aletta de Lange
FROM LEFT Mthulisi Msimang, Avinash Sanichur, Byron Jeacocks and Mtura Matshini
Craig Dohne and Bev Message
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UPCOMING EVENTS & TRAINING PROGRAMMES
2017 APRIL
03-07
Gauteng Commercial Real Estate Valuation (CREV) Course
19
Port Elizabeth Lease Agreement Workshop
25
Limpopo Introduction to Brokering Seminar
TBC
MP
TBC
Gauteng Gauteng Networking Evening
Mpumalanga Networking Event
MAY
11
Management for Property Developers Gauteng Project (PMPD) Course Cape Method for Measuring Floor Areas Town in Buildings (MOMFA) Workshop Port Elizabeth Port Elizabeth Golf Day
19
KZN
19
Port Elizabeth Port Elizabeth Breakfast Session
08-12 09
KZN Breakfast Presentation
21
Limpopo Limpopo Golf Day
22-26
Gauteng Real Estate Corporate Finance (RECF) Course
30
Durban Lease Agreement Workshop
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Gauteng Gauteng Breakfast Presentation
JUNE 02
Gauteng SANS 10400 Workshop
09 19-23
for Measuring Floor Areas Gauteng Method in Buildings (MOMFA) Workshop Corporate Real Estate Management Gauteng Strategic (SCREM) Course
20-21
Gauteng Negotiation Skills Masterclass Programme (NSMP)
30
KZN
KZN Broker Cocktail Session
TBC
Cape Town
Lease Agreement Workshop
Dates are subject to change. Please see Sapoa.org.za for regular updates.
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For SAPOA members
ister
- Property Reg
EACH YEAR WE ACCEPT a large number of listings and advertisements from SAPOA professionals and service providers across the entire spectrum of property activities. Don’t miss out on this well-used, popular industry resource. SAPOA aims to provide added value by offering the basic listings free of charge to all members. In this respect, we hope that we are assisting you in your marketing endeavours to some extent. We thank you for your support in previous years. In an effort to improve the look and ease of usage, we have redesigned the directory layout to a four-column grid and have made available certain entries that will stand out from the norm.
m
2016 - 2017
2016-11-29
BOOKINGS 2018-2019 OPEN FOR SAPOA MEMBERS
12:38:11 PM
● 40 categories, full - and part-category page sponsorship ● Highlighted data entries ● Data entries with logos ● Affordable small advertisements (half- and quarter-page) ● Boxed columns and part columns
For advertising opportunities and rates contact t: +27 (0)11 883 0679 f: +27 (0)11 883 0684 e: sales@sapoa.org.za 50
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Booking deadline: 21 September 2017 Material deadline: Logo entries 5 October 2017 Column entries 5 October 2017 Display adverts 2 November 2017
off the wall
Standing tall, but how tall? As an editor the magazine, each month I look out for topics that could be considered “off the wall”. With this month’s topic dealing with Professional Associations, I thought I’d look at an unusual association – the Council on Tall Buildings. Yes, there is such a council: it’s based in Chicago. To keep things in “perspective”, I thought I’d take a look at their website, http://www.ctbuh.org Compiled by Mark Pettipher
T
o quote the site, the Council on Tall Buildings and Urban Habitat (CTBUH) is “an international not-for-profit organisation supported by architecture, engineering, planning, development and construction professionals, designed to facilitate exchanges among those involved in all aspects of the planning, design, construction and operation of tall buildings”. Founded in 1969, the Council’s mission is to disseminate multi-disciplinary information on tall buildings and sustainable urban environments, to maximise the international interaction of professionals involved in creating the built environment, and to make the latest knowledge available to professionals in a useful form.
What is a tall building? There is no absolute definition of what constitutes a “tall building”. It is a building that exhibits some element of “tallness” in one or more of the following categories: a. Height relative to context It is not just about height, but about the context in which it exists. Thus, whereas a 14-storey building may not be considered a tall building in a high-rise city such as Chicago or Hong Kong, in a provincial European city or a suburb this may be distinctly taller than the urban norm. b. Proportion Again, a tall building is not just about height but also about proportion. There are numerous buildings that are not particularly high but are slender enough to give the appearance of a tall building, especially against low urban backgrounds. Conversely, there are numerous big/largefootprint buildings that are quite tall but their size/floor area rules them out as being classed as a tall building. c. Tall building technologies If a building contains technologies that may be attributed as being a product
of “tall” (e.g., specific vertical transport technologies, structural wind bracing as a product of height, etc), then this building can be classed as a tall building. Although number of floors is a poor indicator of defining a tall building due to the changing floor-to-floor height between different buildings and functions (e.g., office versus residential usage), a building of perhaps 14 or more storeys – or more than 50 metres in height – could perhaps be used as a threshold for considering it a tall building.
How is the height of a tall building measured? The Council on Tall Buildings and Urban Habitat recognises tall building height in three categories: Height to architectural top Height is measured from the level1 of the lowest, significant2, open-air3, pedestrian4 entrance to the architectural top of the building, including spires but not including antennae, signage, flagpoles or other functional-technical equipment5. This measurement is the most widely utilised, and is employed to define the CTBUH rankings of the “World’s Tallest Buildings”.
4. Highest occupied floor
Height is measured from the level1 of the lowest, significant2, open-air3, pedestrian4 entrance to the finished floor level of the highest occupied6 floor within the building. 5. Height to tip Height is measured from the level1 of the lowest, significant2, open-air3, pedestrian4 entrance to the highest point of the building, irrespective of material or function of the highest element (i.e., including antennae, flagpoles, signage, and other functional-technical equipment). Number of floors The number of floors should include the ground-floor level and be the number of main floors above ground, including any significant mezzanine floors and major mechanical plant floors. Mechanical mezzanines should not be included if they have a significantly smaller floor area than the major floors below. Similarly, mechanical penthouses or plant rooms protruding above the general roof area should not be counted. Note: CTBUH floor counts may differ from published accounts, as it is common in some regions of the world for
World’s 10 tallest buildings according to height to architectural top (as of December 2016)
1) Burj Khalifa, Dubai (2010), 828m/2 717ft
6) Taipei 101, Taipei (2004), 508m/1 667ft
2) Shanghai Tower, Shanghai (2015), 632m/2 073ft
7) Shanghai World Financial Center, Shanghai (2008), 484m/1 588ft
3) Makkah Royal Clock Tower Hotel, Mecca (2015), 601m/1 972ft
8) International Commerce Centre, Hong Kong (2010), 484m/1 588ft
4) One World Trade Center, New York (2014), 541m/1 776ft
9) Petronas Towers 1 & 2, Kuala Lumpur (1998), 452m/1 483ft
5) Guangzhou CTF Finance Centre, Guangzhou (2016), 530m/1 739ft
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off the wall 1
Level: finished floor level at threshold of the lowest entrance door.
2
Significant: the entrance should be predominantly
above existing or pre-existing grade and permit access to one or more primary uses in the building via elevators, as opposed to ground-floor retail or other uses that solely relate/connect to the immediately adjacent external environment. Thus, entrances via below-grade sunken plazas or similar are not generally recognised. Also note that access to car park and/or ancillary/ support areas is not considered a significant entrance. 3
Open-air: the entrance must be located directly off an external space at that level that is open to air. 4
Pedestrian: refers to common building users or occupants and is intended to exclude service, ancillary or similar areas.
Functional-technical equipment: this is intended to
5
recognise that functional-technical equipment is
certain floor levels not to be included (e.g., the level 4, 14, 24, etc in Hong Kong). Criteria for co-joined buildings A building complex is considered to be a single, co-joined building (as opposed to two separate buildings connected by sky bridges or other elements) when 50% or more of the total building height is connected. Exceptions to this 50% rule can be made in cases where the form of the building creates a coherent arch, creating a singular architectural expression and thus a co-joined building – to be judged by the CTBUH Height Committee.
Building usage Building vs telecommunications tower A tall “building” can be classed as such (as opposed to a telecommunications/ observation tower) and is eligible for the “tallest” lists if at least 50% of its height is occupied by usable floor area.
subject to removal/addition/change as per prevalent technologies, as is often seen in tall buildings (e.g., antennae, signage, wind turbines, etc are periodically
Single-function and mixed-use buildings ●● A single-function tall building is defined
as one where 85% or more of its total floor area is dedicated to a single use. ●● A mixed-use tall building contains two or more functions (or uses), where each of the functions occupies a significant proportion7 of the tower’s total space. Support areas such as car parks and mechanical plant space do not constitute mixed-use functions. Functions are denoted on CTBUH “tallest” lists in descending order (e.g., “hotel/office” indicates hotel function above office function).
Building status Complete (Completion) A building is considered to be “complete” (and officially added to the CTBUH Tallest Buildings lists) if it fulfils all of the following three criteria: ●● Topped out structurally and architecturally8 ●● Fully clad9 ●● Open for business, or at least partially occupiable.
added, shortened, lengthened, removed and/or replaced).
World’s 10 tallest buildings according to highest occupied floor (as of December 2016) 6
Highest occupied floor: this is intended to recognise conditioned space that is designed to be safely and
legally occupied by residents, workers or other building users on a consistent basis. It does not include service or mechanical areas which experience occasional maintenance access, etc. 7
This “significant proportion” can be judged as 15% or greater of either (1) the total floor area or (2) the total 6) International Commerce Centre, Hong Kong (2010), 469m/1 538ft
building height, in terms of number of floors occupied
1) Burj Khalifa, Dubai (2010), 585m/1 918ft
for the function. However, care should be taken in the
2) Shanghai Tower, Shanghai (2015), 561m/1 918ft
7) Taipei 101, Taipei (2004), 438m/1 437ft
3) Guangzhou CTF Finance Centre, Guangzhou (2016), 495m/1 622ft
8) KK 100, Shenzhien (2011), 427m/1 401ft
4) Makkah Royal Clock Tower Hotel, Mecca (2015), 495m/1 622ft
9) Gaungzhou International Finance Centre, Guangzhou (2010), 415m/1 362ft
5) Shanghai World Financial Center, Shanghai (2008), 474m/1 555ft
10) Willis Tower, Chicago (1974), 413m/1 354ft
case of super-tall towers. For example, a 20-storey hotel function as part of a 150-storey tower does not comply with the 15% rule, although this would clearly constitute mixed-use. 8
The topping out architecturally of a building implies
World’s 10 tallest buildings according to height to top (as of December 2016)
that all structural and finished architectural elements are in place. 9
The omission of a small number of cladding panels to allow fixing of a construction hoist while interior fit-out of some building areas is continuing does not affect the status of “fully clad”.
1) Burj Khalifa, Dubai (2010), 830m/2 723ft
7) Taipei 101, Taipei (2004), 508m/1 667ft
3) Makkah Royal Clock Tower Hotel, Mecca (2015), 601m/1 972ft
8) Shanghai World Financial Center, Shanghai (2008), 494m/1 622ft
4) One World Trade Center, New York (2014), 546m/1 792ft
9) International Commerce Centre, Hong Kong (2010), 484m/1 588ft
5) Guangzhou CTF Finance Centre, Guangzhou (2016), 530m/1 739ft
10) John Hancock Center, Chicago (1969), 457m/1 499ft
Source: Council on Tall Buildings and Urban Habitat
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6) Willis Tower, Chicago (1974), 527m/1 729ft
2) Shanghai Tower, Shanghai (2015), 623m/2 073ft
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