South African Property Review August 2013

South African Property Review

PROPERTY SOUTH AFRICAN

REVIEW

WALKING ON BROKEN GLASS Women shatter the ceiling

Women in property August 2013

SASOL’s SANDTON HQ Alchemy brings the magic

August 2013

Heritage, where the heart is DR MOSENEKE HEADS TO VUKILE Why he made the move

011 911 8000 www.jhi.co.za

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2013/04/29 10:31 AM

from the CEO

A guide for landlords SAPOA CEO Neil Gopal recently attended the 2013 BOMA Conference, where the Global Tenant Survey was released. It offers valuable insights for property owners, managers and landlords

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he business of commercial property is two-fold: creating and building buildings, and ensuring businesses want to pay for the privilege of operating from those premises.

As a landlord, what factors make the difference between your current tenants signing on for another term, or losing them to a newer, more modern space?

It was with this question in mind, and the possible answers, that BOMA International – in partnership with BOMA Canada, CBRE, the Property Council of New Zealand and SAPOA – commissioned Kingsley Associates to conduct the 2013 Global Tenant Survey.

The study looked at issues such as tenant satisfaction (both overall and with various services, features and amenities), lease decision priorities, space-use strategies, alternative work arrangements, attitudes toward green building practices, and important tenant and property characteristics (such as size, type and location).

At the 2013 BOMA Conference, which took place in San Diego last month, Peter Merrett, Jones Lang LaSalle’s Sydney head of customer service, said, “We need to really start to open our hearts to our customers and make a difference for the experience, day to day.”

Merrett makes a point of giving tenants a reason to continue renting their office space.

While experiences are part of the deal, other important factors tenants consider are safety, cost and Green Star ratings.

The full report (available at www.sapoa.org.za) offers landlords and property managers valuable insight into things they should consider beefing up on, adapting to or introducing from scratch.

Neil Gopal

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contents

August 2013

PROPERTY SOUTH AFRICAN

Abland

REVIEW

South African Property Review

PROPERTY SOUTH AFRICAN

REVIEW

WALKING ON BROKEN GLASS Women shatter the ceiling

Women in property

Abreal August 2013

Oilgro

August 2013

Heritage, where the heart is VUKILE’s NEW WUNDERKIND Why Dr Moseneke made the move

ON THE COVER

1 Casino Road, built in 1897, has been lovingly restored and refurbished, and is now Heartland’s head office in Modderfontein

SASOL’s SANDTON HQ Alchemy brings the magic

I have to congratulate you on the recent South African Property Review (July 2013) – fabulous job! These kind of things are usually quite dull and fairly uninspiring – you should, however, feel very proud of this extremely impressive publication. I particularly enjoyed the way you brought it all to life with a vibrant, fresh and engaging style, and the fantastic photography showed off the recent convention in Sun City perfectly.

Peter Merrett National head of customer service Property & asset management Jones Lang LaSalle, Australia

4 News 12 Education, training and development 15 Western Cape networking evening 16 Legal update 20 Meet your SAPOA board members 22 Harnessing the power of heritage 26 The Encha-Vukile job Dr Sedise Moseneke makes a move 28 Boots and mortar Property and sponsorship 30 Where to for South Africa?

33 Transformation by the lake Lakeside on show 49 Sasol’s Sandton alchemy 42 Harnessing the power of heritage 51 Breaking the glass ceiling Women in property 64 Off the wall Prime real estate in your hand FOR EDITORIAL ENQUIRIES email editorial@sapoa.org.za or managingeditor@sapoa.org.za.

Published by SAPOA, Paddock View, Hunt’s End Office Park, 36 Wierda Road West, Wierda Valley, Sandton PO Box 78544, Sandton 2146 t: +27 (0)11 883 0679 f: +27 (0)11 883 0684 e: sales@sapoa.org.za Editor in chief Neil Gopal Editorial advisor Jane Padayachee Managing editor Mark Pettipher Consulting editor David A Steynberg Deputy editor Candace King Copy editor Ania Rokita Sales Riëtte Stevens Finance Susan du Toit Contributors Advocate Portia Matsane, Martin Ferguson, Nicky Manson Photographer Michael Glenister DISCLAIMER: The publisher and editor of this magazine give no warranties, guarantees or assurances and make no representations regarding any goods or services advertised within this edition. Copyright South African Property Owners’ Association (SAPOA).

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

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news

Skills-levy grant cuts cause concern in commercial property industry

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ith government’s recent amendments to the SETA Grant Regulations, concerns have been raised by the South African Property Owners Association (SAPOA) along with the commercial property industry as a whole. Government has cut mandatory grants, or refunds, to companies that undertake sector education training from 50% to 20% of its skills-development levy.

The skills-development levy companies pay is 1% of payroll, and they have been able to claim a proportional refund of the levy to the extent they have incurred cost on training and development.

“This can only be negative for skills development in South Africa,” says SAPOA president Estienne de Klerk. “It obliterates a key incentive for our members to train and develop employees, and flies in the face of the National Development Plan’s policy of fast, inclusive growth through skills development. It also neglects the collaborative approach between government and companies to close the country’s yawning skills gap.”

It is mandatory for property sector companies to pay skills-development levies to Sector Education and Training Authorities (SETAs). However, SETAs are riddled with bad governance, maladministration, meagre financial management and not meeting their mandate of improving the skills environment, resulting in hardly any additional training for the sector. On top of this, these companies pay again to provide private training to invest in their employees’ skills and development.

“Our members will be paying twice for the same thing,” says De Klerk. “Now, with the prospect of the lower 20% refund, the government is eroding an important inducement for skills development and will actually reduce the resources companies in the property sector have for training. It is raising the tax burden, in effect, and looking at the SETAs’ track record, will be giving nothing in return.”

He notes that the property sector should have been consulted prior to the amendment. “SAPOA and all our members are fully committed to South Africa’s skills-development objectives,” he says.

“We have been developing the workforce skills to meet the sector needs. This will impact all these programs. The skills gap can only start narrowing if companies and government work together. But slashing mandatory skills-levy grants is not the answer to a larger, better-trained workforce. It will have the opposite effect.”

“The property sector is motivated to grow in a sustainable way,” says SAPOA CEO Neil Gopal. “This means we’re also motivated to strengthen our skills base. We’ve already progressed with some meaningful skills-development goals, and we want to continue.

Government should be creating more incentives for employers to develop employees with high-demand skills, rather than discouraging them and eroding the support of companies in skills creation. SAPOA will be exploring alternatives to address the matter with Government.”

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Emira improves portfolio

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mira Property Fund has experienced improved occupancy levels over the past few months, reporting that vacancies in its property portfolio have dropped below 7% for the first time since 2008.

“Proactive leasing and disposing of non-core assets led to our improved occupancy levels,” explains CEO of Emira Property Fund James Templeton. “They also furthered our goal of enhancing the quality of Emira’s property portfolio.

The full effects of the increased occupancy will come through in the 2014 financial year. This places Emira in a position to deliver heightened performance for investors.”

At the end of April 2013, Emira achieved a vacancy level of 6,9%, a figure that’s substantially

lower than the 7,8% at the end of 2012, and an improvement compared with vacancies of 11,5% at its financial year-end on 30 June 2011. Going forward, Templeton says Emira aims to reduce its portfolio vacancies even further, and will continue to focus on unlocking greater value from its properties. “In the present market, portfolio growth through acquisition is almost impossible, with quality investment property assets difficult to come by and often overpriced because of fierce competition,” he says.

“Emira will continue to invest in our portfolio of assets with redevelopments, extensions and refurbishments, which currently offer better returns for our investors.” +27 (0)11 775 1401, Emira.co.za

Growthpoint raises R2,5-billion in equity capital

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rowthpoint Properties recently announced the successful closing of its R2,5billion equity raise, one of the largest capital raisings for a South African listed property company to date. It was oversubscribed amid strong demand for new Growthpoint linked units. Norbert Sasse, CEO of Growthpoint Properties, says, “We’re extremely pleased with the success of our accelerated book build. It enjoyed robust demand, both domestic and international. It is encouraging to see the increase in foreign demand.” Local support amounted to 70% of the capital raise, with

the balance representing key international interest.

“Around R1,2-billion of the capital raised will fund development projects within our existing property portfolio,” says Sasse. “Growthpoint also has a significant pipeline of potential acquisitions (excluding the Fountainhead Portfolio). By raising capital early, Growthpoint can act swiftly to benefit from various quality distributionenhancing investment prospects that we have identified locally and abroad. We are already well advanced with several of these, and ready to take best advantage of market opportunities.” +27 (0)11 944 6000, Growthpoint.co.za

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> Corporate and Investment Banking

NOTHING BUILDS A STRONGER FOUNDATION THAN A WEALTH OF EXPERIENCE

RESILIENT PROPERTY INCOME FUND

ATTERBURY INVESTMENT HOLDINGS

DIPULA INCOME FUND

ZAR 600 million

ZAR 1.77 billion

ZAR 843 million

Term Finance

Term Finance

Term Finance

ARROWHEAD PROPERTIES LIMITED

COSMOPOLITAN GROUP

NEW AFRICA DEVELOPMENTS

ZAR 700 million

ZAR 450 million

ZAR 540 million

Term Finance

Development Finance

Term Finance

ALICE LANE – PHASE 1

MIDDELBURG MALL

JABULANI PRECINCT

Abland and Pivotal Property Fund

Flanagan and Gerard Investments (Pty) Ltd and Moolman Group

CALGRO M3 Holdings Ltd

ZAR 440 million

ZAR 300 million

ZAR 271 million

Development Finance

Development Finance

Development Finance

Our experience shows how involved we’ve been in building the real estate market. This foundation allows us to provide you with the best possible financial solutions for your real estate needs. www.standardbank.co.za/cib

Authorised financial services and registered credit provider (NCRCP15).

The Standard Bank of South Africa Limited (Reg. No. 1962/000738/06). SBSA 126413/RR – 3/13 Moving Forward is a trademark of The Standard Bank of South Africa Limited

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news

Nedbank supports affordable housing

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he City of Cape Town, Nedbank, and developer Inframax recently celebrated the launch of the Rugby development with an official sod-turning ceremony that was attended by several stakeholders.

“This initiative forms part of the City’s commitment to building communities, not just houses,” said Councillor Tandeka Gqada, Mayoral Committee Member for Human Settlements. “We know that, in the right environment and with the right opportunities, our residents can thrive.” The finance deal forms part of Nedbank’s existing long-term relationship with the City of Cape Town, following its appointment by the Cape Town administration as a joint venture partner with Inframax Holdings and Shisaka Investments for the development of four affordable-housing projects to be undertaken on City-owned land.

“This has been a long journey and we are pleased to have reached the pinnacle where, by participating in this tripartite agreement, Nedbank not only demonstrated its commitment to the affordablehousing market and the principles of Government’s integrated housing objectives, but more especially to improving the living conditions of South Africans,” said Manie Annandale, head of Nedbank Corporate Property Finance: Affordable Housing. In Cape Town alone, Nedbank has signed loan agreements with affordablehousing developers with strong track records to the total value of more than R500-million, which is set to yield about 5 500 housing opportunities for Capetonians in the years to come. +27 (0)21 416 7000, Nedbank.co.za

Dr Andrew Golding on the current residential market

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he CEO of Pam Golding Properties (PGP) Dr Andrew Golding says that the residential market appears to be re-emerging in a gradual recovery, with PGP continuing to receive increasing sales volumes across the regions.

Buyer activity is still ongoing because of pent-up demand as well as increasing interest from a growing middle-class sector that is entering the property market in search of property. Despite this, access to credit is still the main issue for home buyers. “However, it is encouraging to note that sales in the price range up to R1,5-million make a significant contribution to total market sales,” says Golding. “This is also a sector of the market which would benefit from a further reduction in the interest rate, not just as a confidence booster but also as a way of helping to

offset rising costs in terms of electricity, fuel and food prices and property rates.” Irrespective of the various challenges, PGP continues to conclude sales to purchasers with access to cash as well as to buyers across the price spectrum. “Confidence in residential property as a sound medium-to-long-term investment continues to gather momentum, especially among a new generation of younger buyers,” says Golding. “PGP is also seeing a growing appetite among highend buyers not only for luxury homes in South Africa but also in highly desirable destinations abroad, such as the Seychelles, Mauritius and London. As South Africa’s residential property market continues to show resilience, we are optimistic with regards to the market for the remainder of 2013.” +27 (0)21 710 1700, Pamgolding.co.za

Quality office space in Jo’burg on the rise

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ccording to Jonathan Klimek, a leasing consultant for JHI Properties, the office sector in Johannesburg is picking up with appealing office space becoming available and offering corporates good value.

“At present there are some very attractive buildings and rental rates on offer, with easy access to major routes, shopping facilities, sought-after residential areas and other amenities.

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These are situated in various locations in areas such as Bryanston, Sunninghill, Rivonia, Fourways, Sandton and Craighall, with quality office space available in sizes from 400m² to 1 000m² at competitive rentals of R75 to R80 or R85 per square metre, up to approximately R110 in prime locations,” he says.

Other areas that are proving to have potential for positive office-sector growth include

Kyalami and the Waterfall Estate. These areas boast high residential densities, which will inevitably give rise to the development of office space.

“Infrastructural improvements such as those that seek to alleviate traffic congestion and increase accessibility and convenience provide benefits for office users,” says Klimek. “For example, the upgraded Allandale

interchange provides an incentive for corporates to move to areas such as Waterfall Office Park. The relocation of various large corporates in the vicinity adds to the appeal as many clients, suppliers and associated industries will look to be close to their business partners, thereby creating good demand for space in well-positioned areas.” +27 (0)11 911 8000, Jhi.co.za

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news

Eyethu Mall to form part of a new town centre

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ommunities living in the Sebokeng region have a lot to look forward to with the development of the new R400million Eyethu Orange Farm Mall, a retail project that will form the core of Orange Farm’s new town centre. Developed by Flanagan & Gerard and Stretford Land Developments, the 27 000m² two-level regional mall with expansion rights of up to 35 000m² GLA will offer various local and national retail tenants with a focus on food, household goods, fashion and services.

Several leading retailers are already on board, including Shoprite, Pick n Pay, McDonald’s, Clicks, Truworths, the Foschini

SACSC Annual Congress 2013 around the corner

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etail will fall under the spotlight once again at this year’s South African Council of Shopping Centres (SACSC) 17th Annual Congress. On from 11 to 13 September at the Sandton Convention Centre, the 2013 SACSC congress will highlight the role of shopping centres and retailers in South Africa, and delve into how retail stays on top of its game in an ever-evolving arena. “With this year’s theme being ‘Uncover’, the three-day event will feature a line-up of presentations and panel discussions, bringing together the sector’s key players under one roof,” says SACSC CEO Amanda Stops. +27 (0)10 003 0228, Sacsc.co.za

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Group, Mr Price and Edcon.

Despite the mall’s major trade expected to be “walk-in” shoppers, commuters have also been accounted for, with the mall offering free open-air parking for private vehicles.

Along with this, transportinfrastructure upgrades such as road improvements and taxi-rank upgrades have already begun.

The mall will also be linked to the adjacent Stretford Station.

“We are proud of the fact that our development has been designated as a ‘presidential project’ with national, provincial and local government support as a result of its communityupliftment initiative,” says Flanagan & Gerard’s Peter Gerard. “We, the Orange Farm

community and the City of Johannesburg’s Region G are creating a new town centre with an integrated transport hub that connects Eyethu Orange Farm Mall with Stretford Station and the Golden Highway, which is to become the ‘Jabulani’ of the South.” Along with the two developers, the Orange Farm Community Trust and Dipula Income Fund have invested in the development. Dipula has already acquired the first phase of the development.

With earthworks having already commenced, the mall is scheduled to open for trade in September 2014. +27 (0)10 590 4867, Fgprop.com

Dipula doubles its property portfolio

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or the six-month period that ended on 28 February 2013, Dipula Income Fund increased its distributable earnings by 44,1% year on year, and has significantly progressed with its portfolio growth strategy with the aim of increasing the quality, size and value of its assets. “Since listing in August 2011, Dipula has closed deals that will, once all assets are transferred, more than double the size of the fund,” says Dipula Income Fund CEO Izak Petersen.

Dipula’s half-year results indicate an 18,5% increase in net property income and an 11,8% revenue increase, with its gearing about

30%. Dipula announced half-year distributions of 41,669 cents per A-linked unit and 29,804 cents per B-linked unit, representing distribution growth per unit of 5% and 7,4% respectively.

Furthermore, Dipula’s vacancies improved from 10,4% to 9,8% during the interim period.

Since listing, R843-million of acquired assets have transferred to Dipula. The fund has R499million worth of assets under development, and R945-million worth of assets is awaiting transfer. Its market capitalisation grew from about R1,5-billion at listing to R3-billion currently.

“Despite continuing sluggish economic conditions, Dipula should achieve full-year per-unit distribution growth of between 6,5% and 7,5%,” says Petersen.

“Some acquired properties took longer than anticipated to transfer and, with slowerthan-expected letting, impacted growth. The full benefits of these acquisitions and some latest lettings will come through in the 2014 financial year.” Dipula intends to apply for the new South African REIT structure after its financial year ends on 31 August 2013. +27 (0)11 325 2112, Dipula.co.za

Redefine goes down under

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edefine Properties recently increased its direct holding in Australian listed Cromwell Property Group by taking up AUD65,6-million of Cromwell’s capital raise, which will partly fund Cromwell’s successful acquisition of a portfolio of government properties.

“It’s our stated intention to deepen our presence in Australia,” says Redefine

SOUTH AFRICAN PROPERTY REVIEW

CEO Marc Wainer. This takeup of capital grows Redefine’s interest in Cromwell from 10% to 12,5%.”

Cromwell has acquired a portfolio worth AUD405million from the New South Wales government, consisting of seven office properties. It raised AUD250-million in capital to fund a portion of the transaction. “This attractive portfolio includes five

properties that have 15-year leases with the New South Wales government,” says Wainer. “Of the remaining two, one has a five-year lease in place, and the other is a multi-tenant building.

Properties of this quality are achieving a 9% yield in Australia.

This highlights how expensive comparable properties are becoming in South Africa.” +27 (0)11 283 0000, Redefine.co.za

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obituary

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Luxury office park in final phase

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he final phase of the well-established Rynfield Business Park has been launched, offering tenants security and stylish luxury.

Situated in the upmarket Rynfield area in Benoni, and adjoining the Ebotse Gold and Lifestyle Estate, Rynfield Business Park is set in a tranquil park-like setting with gardens, water features and abundant bird life.

“Established in 1979 on 13 759m², the exclusive Rynfield Business Park already consists of three blocks fully tenanted by blue-chip corporates such as Liberty Life and Momentum, and the developer’s own business, JW Els Corporate and Individual Brokers,” says Louis Gerber, a broker at JHI Properties. “With services already installed, the park also includes its own conference facilities for business-park members to hire for special functions, as well as state-of-the-art security systems linked to armed response, a guardhouse with access booms, automated floodlights and electrified fencing, and on-site security guards.” So far, three out of the eight new office suites have been sold off-plan. “Interest in this development is high and we are currently in negotiation with several interested purchasers representing professionals in the legal and financial field as well as those in the client-service sector, insurance and marketing,” says Gerber. The office suites vary in size from 174m² to 233m², with prices ranging from R2,286-million to R3,728-million. +27 (0)11 911 8000, Jhi.co.za

SA property sector pays tribute to journalist Micel Schnehage

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he South African property sector is mourning the passing of award-winning Moneyweb journalist Micel Schnehage, who passed away recently after a long battle with cancer.

In June, Micel was the recipient of the South African Property Owners Association (SAPOA) Property News Journalist of the Year 2013 award at the annual awards for excellence in property journalism. Schnehage won the accolade for her tenacious, topquality journalism, newsworthy content and careful investigation.

“As a sector, we are deeply saddened,” says SAPOA president Estienne de Klerk. “We were able to honour Micel for her substantial contribution to both journalism and the property sector. She embodied quality journalism that demanded transparency from the property industry, and boosted people’s knowledge about sector. We hope that her example of excellence will inspire others to strive for outstanding standards in property journalism.”

Every year, SAPOA gives four awards for outstanding journalism covering the property sector. As a winner, Micel was judged according to a stringent set of criteria, including accuracy, clarity and consistency. Her investigative articles on the Estate Agency Affairs Board stood out as a clear winner in the hotly contested News Journalist category.

“On behalf of the property sector, we extend our deepest sympathies to Micel’s family, friends and colleagues,” says De Klerk.

“She will be missed.”

International standards project Paarl named “Town of the Year”

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he scenic and historic town of Paarl has been announced as the “Town of the Year” for the Western Cape 2013 by Afrikaans TV magazine programme Kwêla. “The Kwêla accolade is a highly soughtafter one, bringing with it exceptional publicity for the town and a sizeable marketing budget as a prize,” says Pam Golding Properties’ area manager for Paarl, Wellington and Franschhoek, Surina du Toit. “The local businesses – and especially the hospitality industry – will certainly benefit

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from the exposure. But the award only confirms what residents already know – that this is a highly desirable place to live, with a close-knit community, a beautiful selection of homes, and superb facilities and amenities.”

Paarl offers a mix of property types, from secure lifestyle and golf estates to comfortable, modern family homes, historic Cape Dutch homesteads and both lifestyle and commercial farms. Paarl is South Africa’s third-oldest town. +27 (0)21 871 1480, Pamgolding.co.za

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he Royal Institution of Chartered Surveyors (RICS) South Africa has formed a coalition of professional organisations, working to develop and promote highlevel international standards in asset valuation, property measurement and ethical behaviour. RICS is proud to announce that SAPOA is the first South African organisation to become a coalition partner to the International Property Measurement Standards.

RICS is working with bodies such as the International Valuation Standards Council to spread recognition of the existing international valuation standards, which are already

linked to International Financial Reporting Standards.

RICS has taken the lead in forming the coalition and securing the World Bank to host an inaugural meeting to address the need for international measurement standards. There are currently wide disparities in the bases on which physical assets are measured around the world, making comparisons difficult, risking distorted values, damaging investor confidence and creating opportunities for fraud.

Just as standards in financial reporting depend on those for valuation and measurement, they all depend on a sound foundation in ethical behaviour. +27 (0)83 632 5555, Rics.org

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Transfer duty exemption W

Hugh Jackson is a director at the Cliffe Dekker Hofmeyr real-estate practice. With more than 30 years of experience, he has played a vital role in the development and growth of the firm’s real-estate practice in Johannesburg.

He has gained a reputation throughout the property industry, the financial sector and the legal profession as a leading expert in property law, property finance and real security. He specialises in property and mortgage finance, real security, including notarial bonds, bank and institutional property and securitybased transactions, regulation of money lending, commercial property development, property law in general, and conveyancing.

ith effect from 1 January 2013, transfer duty is no longer payable in respect of a transaction contemplated in Item 8 of Schedule 1 to the Share Blocks Control Act, No 59 of 1980, whereby a right to, or interest in, the use of immovable property conferred by virtue of the ownership of a share in a share block company is converted to ownership of the immovable property concerned.

The amendment of section 9(19) of the Transfer Duty Act, No 40 of 1949, is contained in Section 1 of the Taxation Laws Amendment Act, No 22 of 2012.

The exemption from payment of transfer duty in such circumstances was previously restricted to a natural person and only applied if the initial acquisition of the share was subject to duty in terms of the Transfer Duty Act. The exemption now applies in respect of any such transaction concluded on or after 1 January this year, irrespective of whether the holder of the share is a natural or juristic person, and whether or not the transaction relating to the initial acquisition of the share was subject to payment of transfer duty at that time.

The exemption is extended further to include the acquisition by any person of a part of the immovable property of the share block company where that person had a right of use of that part of the property that was conferred on him or her by reason of the ownership of a share held in the share block company. +27 (0)11 562 1000, Cliffedekkerhofmeyr.com

90 Grayston to keep Sandton on the map

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s its single largest commercial office development to date, Redefine Properties’ R505million 90 Grayston redevelopment adds further appeal to Sandton, ensuring that the vibrant business and leisure node is abreast with international trends and keeps pace with the most advanced cities of the world.

“The 90 Grayston flagship development furthers Redefine’s strategy of achieving a range of higher-quality premium-grade properties in our investment portfolio,” explains Mike Ruttell, Redefine Properties’ head of development. “We are making good progress on the development, and it is exciting to see this landmark taking shape in the sought-after, central Sandton node.”

“Redefine is a one of our big partners in shaping Sandton, and we do value its investment and confidence in the future of the area,” says City Improvement District manager for Sandton Central Management District, Elaine Jack. “Every development in Sandton central is a welcome addition to the district as it can only mean that developers and property owners value the importance of this node.” The 19 343m² sustainable 16-storey premiumgrade office development is on track for completion in July 2014. +27 (0)11 283 0000, Redefine.co.za

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education, training and development

Taking a long view on the South African property sector While property investors are regularly exposed to short-term economic and market trends, there is a growing awareness that social, technological, infrastructural, economic and environmental drivers have important implications for the structure and performance of property markets Martin Ferguson, SAPOA’s HR, education, training and development manager, collaborates with thought leaders in South Africa’s property sector

As a result of rapid rates of urbanisation, Gauteng’s population is expected to grow by a further 10-million people in the next three decades

By Francois Viruly, associate professor at the Department of Construction Economics and Management, University of Cape Town

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or the investor, the failure to identify trends can result in the sudden physical, functional and economic obsolescence of buildings and corresponding decline in financial returns.

Physical obsolescence is associated with the observation that changing built-environment standards influence the perceived quality of a building; for instance the “green“ rating of a building can influence its marketability.

In the long term, buildings also suffer from functional obsolescence, driven by changing tenant requirements (including changing parking requirements), the adoption of new work and business practices, and the growth of internet retailing. These influence the quantity and type of property space demanded.

Social trends Opportunities in the South African built environment continue to be influenced by rapid rates of urbanisation.

Gauteng’s population, for example, is expected to grow by a further 10-million people in the next three decades. Meeting the residential requirements of this rising urban population will require higher built-environment densities and considerable expenditure on transport infrastructure. Higher density residential developments will, in future, be able to effectively compete for land against

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SOUTH AFRICAN PROPERTY REVIEW

Professor Francois Viruly

commercial development opportunities, which should have a positive impact on the level of institutional investment in the residential sector.

Moreover, higher densities will redefine existing retail catchment areas and, as a result, will provide opportunities for the development of new segments of the retail sector. This may, for instance, include the development of a growing number of innercity retail outlets.

Technological trends It is reasonable to suggest that the rapid evolution of information technology will continue to alter real-estate decisions made by households and businesses alike. Information technology significantly changes the way shoppers and office workers perceive space. The challenge for the property sector is to provide space which reflects an increasingly transient workforce.

Investors in the retail sector are carefully assessing strategies that are expected to mitigate the consequences of e-retailing on the performance of existing shopping centres. The Financial Times recently reported that property-market investors are falling out of love with US shopping malls as up to 15% of the country’s suburban retail centres are forecast to close over the next five years in the face of online competition. The future of shopping centres lies in placing a greater emphasis on “shoppertainment” and the demands of the Y generation that has been brought up with technology. This also means shifting the shopping paradigm based on “bricks and mortar” to that of “clicks and mortar”.

Infrastructure The ability of a property to attract tenants is closely associated with its accessibility.

While in the past decades the automobile played an important

education, training and development

role in the decentralisation of cities and the development of shopping centres, the perception of accessibility is changing with the introduction of modern public transportation systems.

Integrated transport systems can connect various commercial nodes in ways that offer new opportunities in the property sector. For example, the Gautrain rapid-rail system has created new connections between office nodes in Pretoria, the northern suburbs of Johannesburg and the Johannesburg CBD. Efficient transportation systems also offer opportunities to create nodes that effectively combine home, work and social life, and which reverse the separation of the location of work from home.

The economics and the property market The spatial outcome of economic activity is being altered by economies that have shifted from manufacturing to the service sector. Apart from the tendency of the service sector to be less locationbound than traditional industrial sectors, the optimal location in the service sector is being defined by accessibility to universities and research complexes, as well as the availability of well-educated labour. The Urban Land Institute in the US emphasises that the government, academia and hospitals will form a powerful combination in creating the locational requirements of businesses in the future.

Focus on Africa The property market is affected by the globalised investment market, with investors as well as users of space trading across borders. For South African investors, the opportunities will arise primarily across the African continent.

This growing interest in African business ventures is largely a response to strong economic growth prospects and an under-developed retail environment. Recent figures published by the International Monetary Fund suggest that the sub-Saharan economy will continue to grow at an average annual rate of approximately five percent.

The type of investor who enters the sub-Saharan African market is also changing. While the pioneers were private equity funds and individuals, the players now include large pension and listed-property funds. For instance, Stanlib has recently announced its Africa Direct Property Development Fund that makes it possible for investors to enter the African real-estate sector indirectly. The fund will be US$-denominated and will target a return of 25%.

The banking sector is also showing a growing appetite, with a number of South African banks competing for funding opportunities across the continent. However, funding projects across Africa remain expensive, and occur at relatively low loan-to-value ratios. This factor hugely influences the size and type of developments undertaken.

Environmental issues The focus on environmental standards has the potential to reshape the property sector in the years to come. Green built-environment standards are being influenced by publicsector policy interventions, operating-costs realities and the demand by tenants to be located in environmentally friendly places. While so far much of the focus has been on the rating of individual buildings, numerous initiatives are under way that will place a greater emphasis on the environmental rating of existing buildings and precincts. There is also some risk that properties presently defined as being A-grade could lose this status on the basis of changing “green� standards.

The focus on environmental standards has the potential to reshape the property sector in the years to come. Green built-environment standards are being influenced by public-sector policy interventions

Conclusion To a significant degree, the historical evolution of the built environment and the real-estate sector has always been closely associated with social, technological, transportation and economic developments. For the property investor, the challenge lies in not only identifying possible future trends that could affect the real-estate sector, but also in developing strategies that will capitalise on these opportunities.

Information technology and modern transportation are expected to significantly change the way space is perceived and the type of properties that are demanded.

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education, training and development education, training and development

Property valuation and management qualifications at the University of Johannesburg The development of property education has been delayed by the disparity in the availability of property-specific programmes in institutions of higher learning in South Africa. Before 2012 there have been limited opportunities to further studies beyond a national diploma in real estate.

Undergraduate programme In 2010, the Department of Finance and Investment Management at the University of Johannesburg introduced property valuation and management modules as electives in the BCom Finance degree. This provided undergraduate students with an opportunity to acquire knowledge regarding the physical aspects of immovable property, as well as the factors that influence the value of investments in immovable property.

Bridging programme In 2013 a Bridging Programme in Finance was introduced to assist individuals without property-related qualifications to gain the necessary background in order to articulate into the BCom Honours degree.

Additionally, the Advanced Diploma in Property Valuation and Management was also introduced; it is tailor-made for holders of national diplomas in real estate.

It also provides an opportunity to articulate into the BCom Honours degree.

BCom Honours In 2012, the Department of Finance and Investment Management also introduced a BCom Honours degree in Property Valuation and Management.

The Honours in Property Valuation and Management will attract students who are interested in specialising in property valuation and management. The curriculum will include the following modules: l Advanced Property Valuation and Management A; l Advanced Property Valuation and Management B; l Advanced Property Finance and Investment; l Applied Property Law A; l Applied Property Law B; l Property Portfolio Management; l Research Methodology; and l Case study.

The Department is proud and privileged to be able to offer an honours degree in Property Valuation and Management. The BCom Honours in Property Valuation and Management will certainly go a long way in addressing the needs of the property industry in South Africa.

For more information, please contact: Mr AndrĂŠ Kruger MTech: Real Estate (Unisa) Programme Director: Property Valuation and Management Department of Finance and Investment Management, University of Johannesburg T: +27 (0)11 559 2260 F: +27 (0)11 559 3753 E: akruger@uj.ac.za

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Mr Marno Booyens MCom Financial Management Lecturer Department of Finance and Investment Management, University of Johannesburg T: +27 (0)11 559 2969 E: marnob@uj.ac.za

social networking

SAPOA Western Cape networking sponsored

by Absa Commercial Property Finance

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well-attended networking event was held at the Viglietti showroom in Cape Town on 6 June 2013, and SAPOA was fortunate to secure the sponsorship of Absa Commercial Property Finance (CPF) for the event. Waseem Mustapha, regional manager at Absa CPF Western Cape, gave a brief talk, which highlighted Absa CPF’s revised strategy for 2013. In 2012, Absa CPF recognised the need to align itself locally and nationally as a preferred “go to” bank for commercial property finance. Accordingly, its objective to raise Absa CPF’s market presence acknowledges SAPOA as a critical player in the commercial property industry and

sees it as an important voice in facilitating sound business in the broader local property market. Imraan Ho-Yee, SAPOA’s regional chairman, welcomed the 230 regional members to the event. The dynamic, unconventional environment of the Viglietti showroom and workshop gave guests the opportunity to network as well as appreciate the magnificent cars on display.

The lucky-draw prizes were a hit – we had two model Ferraris up for grabs, and one lucky SAPOA member walked off with a “lunch drive” in a Ferrari, sponsored

by Viglietti Motors.

1 Lameez Alexander, Jane Padayachee, Melissa Mohamed, Imraan Ho-Yee, Dave Russell, Caroline Coates, Refqah Fataar Ho-Yee 2 Trevor Shapiro, Luciano Bersella, David Talbot 3 John McMahon, Lloyd Nussey, Dylan Pelton, Roger Robeck, Johan Grobler, Dave Russell, Martin Reynolds, Stephan Wormald 4 Shaun Fourie, Vivienne Walsh, Tessa Brunette, Rupert von Tutscheck 5 Roxanne Riffel, Arno Cloete, Ian Taylor, Waseem Mustapha 6 Pieter Muller, David Walker, Wayne Rossi, Jared Schneider, Jerry Mperdempes

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legal update JUDGMENTS

LAND CLAIMS Kwalindile Community v King Sabata Dalindyebo Municipality and Others Zimbane Community v King Sabata Dalindyebo Municipality and Others Case CCT 52/12 CCT 55/12 COURT MEDIA SUMMARY

The legal update highlights judgments, Bills and key decisions that have been passed, published and made in as far as they may affect the property sector or members of SAPOA in their various capacities. Citations have been provided to ensure members can fully apprise themselves of the facts of relevant reported matters

By Advocate Portia Matsane

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The Kwalindile Community and Zimbane Community (the applicant communities) lodged claims with the Regional Land Claims Commissioner under the Restitution of Land Rights Act (the Act) for the restitution of their land rights. These included claims to restore parts of immovable property described as the Remainder of Erf 912 in the district of Mthatha (Erf 912). The claims of the applicant communities were accepted and investigated by the Land Claims Commissioner, who referred them to LCC for adjudication. The land claims were also supported by the Minister of Land and Agricultural Affairs (Minister).

The King Sabata Dalindyebo Municipality (the Municipality) is disputing the validity of the claims, and argued before the LCC that the land claims do not have merit because the applicant communities have never lived on the land they are claiming.

The Land Claims Court granted the order sought by the Municipality to immunise the claimed land from restoration (non-restoration order), subject to certain qualifications, which the Supreme Court of Appeal later set aside.

The Land Claims Court and Supreme Court of Appeal reasoned that restoration would not be in the public interest. The applicant communities applied to this Court for leave to appeal against the decision of the Supreme Court of Appeal. The Municipality opposed this application. The second and third respondents opposed the application to the extent that their property rights are affected by the land claims.

In this Court, the question turned on the proper exercise of a court’s power under the Act to make a non-restoration order. In a unanimous judgment by Moseneke DCJ, the Court held that the courts below misdirected themselves on the value judgment they were required to make. The Court reasoned that a non-restoration order violates the constitutional right of a claimant to possible restoration. Therefore, any order must be made with enough particularity to ensure that a successful claim is not unduly curtailed. The Court further found that nothing on the facts justifies the conclusion that it is in the public interest for rights on vacant and undeveloped

land not to be restored, or that there is substantial public prejudice because vacant and undeveloped land may be restored to the applicant communities when their claim is finally determined.

The Court upheld the appeal and set aside the orders of the Supreme Court of Appeal and the Land Claims Court. It did not uphold the second respondent’s appeal because the land on which it had a registered lease was not operative. This is because the land had not been developed. The Court did, however, find that it would not be in the public interest and would be substantially prejudicial to the public not to order a non-restoration order in respect of land over which the third respondent has a registered long lease and which it has developed. The Court ordered the Municipality to pay the costs of the applicant communities as well as the third respondent’s costs in all the courts.

TRANSFER OF PROPERTY AND MUNICIPAL DEBTS City of Tshwane Metropolitan Municipality versus Thomas Mathabathe & Nedbank Limited Case NO 502/12 The law (section 118(3) read together with section 118(1) of the Local Government: Municipal Systems Act 32 of 2000) requires that a registrar of deeds may not register the transfer of property except on production to that registrar of deeds of a prescribed certificate issued by the municipality or municipalities in which that property is situated, and which certifies that all amounts that became due in connection with that property for municipal service fees, surcharges on fees, property rates and other municipal taxes, levies and duties during the two years preceding the date of application for the certificate have been fully paid. However, that prescribed certificate issued by a municipality is valid for a period of only 60 days from the date it has been issued.

It is important to note that an amount due for municipal service fees, property rates and other municipal taxes, levies and duties is a charge upon property in connection with which the amount is owing and enjoys preference over any mortgage bond registered against the property.

In the above case, an owner of property appointed a bank (mortgagee of the property) through a special power of attorney to sell the property by public auction on his behalf.

An auctioneer was appointed by the bank. An offer was made at the auction by a third party,

legal update which was subsequently accepted. During the registration process of the property, the appointed Conveyancer applied for a clearance certificate. The municipality provided the Conveyancer with the total amount outstanding in respect of municipal rates and services which included what was termed “the historical debt” comprising of charges levied for the provision of municipal services to the property prior to the two years envisaged by section 118(1)(b). The municipality refused to exclude historical debt, and the purchaser and the bank launched a high court application in the North Gauteng High Court to request the Court to order the Municipality to limit the amount that became due in connection with the property. The application was opposed by the Municipality. The Court ruling in favour of the Purchaser and the Bank was appealed against by the Municipality.

The Supreme Court of Appeal clarified that municipalities were obliged to collect monies that become payable to them for property rates and taxes and for the provision of municipal services. The Court continued by making a distinction of the manner in which municipalities can fulfil that, i.e.: l There is security given to municipalities for repayment of the debt, in that it is a charge made on that property. l They are accorded powers to block the transfer of ownership of the property until debts are paid in certain circumstances.

The Appeal Court referred to the observations of Judge JA Brand in the matter of BOW Ltd versus Tshwane Metropolitan Municipality 2005 (4) SA 336 (SCA), in which the court stated that the security provided by the subsection amounted to a lien having the effect of a tacit statutory hypothec, and that no limit was placed on its duration outside of insolvency. It was further stated that its effect was to create in favour of the municipality a security for the payment of the prescribed municipal debts, so that a municipality enjoyed preference over a registered mortgage bond on the proceeds of the property. Subsection (3) according to Brand JA does not refer to a category or class of debts but to the aggregate of different debts secured by a single charge or hypothec.

It follows that the amounts of all debts arising from the stipulated causes are added up to become one composite amount secured by a single hypothec, which ranks above all mortgage bonds over the property.

The Appeal Court noted that the security given to a municipality by section 118(3) is a charge upon property which signifies that it is security for the payment of a debt or

performance of an obligation. It is critical to note that any amount that is due for municipal debts which are not limited by the mentioned two years and which have not been prescribed is secured by the property. If it is not paid and an order of the court is made, then the property can be sold in execution and the proceeds can then be applied in payment of the debts.

The Court held that the municipality failed to draw the distinction in the manner in which a municipality can fulfil its obligation of collecting monies payable for provision of municipal services, and further that it was wrong in its contention that upon registration of transfer of the property, the municipality loses its rights under section 118(3) of the Act. The appeal was dismissed with costs.

RIGHTS OF OCCUPIERS ON MUNICIPAL LAND Pontsho Doreen Motswagae and Others v Rustenburg Local Municipality and Another CCT 42/12 [2013] ZACC 1 COURT MEDIA SUMMARY On 7 February 2013, the Constitutional Court presented judgment in a case that concerns the constraints placed upon municipalities when entering land on which people’s homes are situated. The applicants’ homes are situated on land owned by the Rustenburg Local Municipality (the Municipality). These homes were dilapidated. The Municipality employed a contractor to carry out work on the land as part of a housingdevelopment project. The contractor entered the property and excavated the outer wall of the home of one of the applicants with a bulldozer, exposing its foundations.

The applicants applied to the North West High Court in Mahikeng (the High Court) for an interdict restraining the Municipality and the contractor from performing this construction work. The High Court refused the application because the applicants were not being ejected from their homes and their privacy was not disturbed. The applicants challenged the High Court judgment and the order.

In a unanimous judgment, written by Yacoob J, the Constitutional Court held that the applicants’ constitutional right not to be evicted from their homes without a court order guarantees SOUTH AFRICAN PROPERTY REVIEW

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legal update their peaceful and undisturbed occupation of their homes. Having found that the work of the Municipality interfered substantially with the applicants’ peaceful and undisturbed occupation of their homes, the Court concluded that the Municipality could not undertake the work without a court order.

Finally, the Court concluded the Municipality should have secured the eviction of the applicants beforehand.

The Constitutional Court therefore ordered that any construction work on the land on which the applicants’ homes are situated should not be executed without the consent of the applicants or a court order.

RATEABLE PROPERTY eThekwini Municipality v Ingonyama Trust Case CCT 80/12 COURT MEDIA SUMMARY eThekwini Municipality (the Municipality) brought an application in the KwaZulu-Natal High Court in Durban (the High Court) seeking a declaration that the Ingonyama Trust (the Trust) property falling within the jurisdiction of the Municipality is rateable for the period between May 1996 and June 2005. The Trust opposed the application and contended that the land was state property, which was exempt from being rated in terms of the Rating of State Property Act (the Rating Act).

The High Court found that the property in question was not state property and held that it is therefore rat-able.

The Trust appealed to the Supreme Court of Appeal. The Court held that the property in question constituted state property which was exempt from rates and overturned the High Court order.

In the Constitutional Court the Municipality sought leave to appeal against the judgment of the Supreme Court of Appeal. The Municipality’s application was two months late, so it had to apply for condonation of the delay. The Municipality had to satisfy two requirements: it was required to give a satisfactory explanation for the delay and to show that the interests of justice favour the grant of condonation of the delay.

In a unanimous judgment by Jafta J, the Court rejected the explanation given by the Municipality for the delay because it was unsatisfactory, and held that it was not in the interests of justice to grant condonation and leave to appeal. The Court further held that there were no prospects of success because the land in question constituted state property exempt from rates in terms of the Rating Act.

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BILLS The following Bills were published for public comments and, where relevant, SAPOA submitted formal comments. Members of SAPOA are hereby provided with objectives of each Bill.

1. The Deeds Registries Amendment Bill The Deeds Registries Amendment Bill of 2013 proposes amendments to the Deeds Registries Act No 47 of 1937. The Deeds Registration system is structured to guarantee land title.

The Bill focuses on amending, among other things, mainly any errors that have been made.

It addresses errors and omissions specifically in deeds and other documents, which involves updating the names in which they are registered and replacing incomplete or unserviceable documents.

The Bill provides for the following amendments: l Amending the Deeds Registries Act of 1937, so as to provide discretion in respect of the name of the person or the description of property mentioned and other documents; l Provision for the issuing of certificates of registered title taking the place of deeds that have become incomplete or unserviceable; l Substitution of an obsolete heading; l Deleting the reference made to the Agricultural Credit Act of 1966; l Regulation of the updating of deeds in respect of change of names of companies, close corporations and surnames of women; and l Amending of definitions and to provide for matters connected therewith.

2. Property Valuation Bill The objectives of the Property Valuation Bill are: l Giving effect to the provisions of the Constitution, which provide for land reform and the facilitation of land reform through the valuation of property in order to determine the purchase price for or payment in respect of property; l Providing for the establishment of the Office of the Valuer General; l Providing a valuation service to departments, organs of state and to municipalities; and l Providing for a review mechanism.

3. Restitution of Land Rights Amendment Bill The Bill provides for the following amendments: l Amending the cut-off date for lodging a claim for restitution; l Regulating the appointment, tenure of office, remuneration and the terms and conditions of service of judges of the Land Claims Court; l Making further provision for the advertisement of claims; l Providing that the lodging of a fraudulent claim shall be an offence; l Providing for additional factors that must be considered by the Court when considering whether to order restoration; and l Extending the Minister’s powers of delegation.

4. Sectional Titles Amendment Bill The Bill provides for the following amendments: l The definitions of “architect”, “developer” and “land surveyor”; l The cancellation of registered sectional plans in a prescribed manner; l The endorsement of title deeds to reflect amended participation quota schedules; l The regulation of the issuing of certificate of registered title in respect of an undivided share in a section; l The registration of a transfer of a part of the common property with the consent of the owners of the sections and the holders of the registered real right; l The concept of folders of registered real rights over exclusive use areas to the alienation of exclusive use area; l The cancellation of part of a section in pursuit to an expropriation; l The consent of bond holders with the registration of a sectional plan of extension; and l The issuing of more than one certificate of real right extension and more than one certificate of real right of exclusive use area, and matters connected therewith.

legal update

Address by Deputy Judge President of the Constitutional Court: 1913 Land Act

Welcome to our new members T: 011 669 9000

T: 012 685 0900

T: 011 269 3000

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he address by the Deputy Judge President of the Constitutional Court, Dikgang Moseneke, at the 2013 SAPOA Annual Conference on the Land Act of 1913 was a historical event and one that deserves a mention.

It was an address that delved into an important legal, social and economic issue which, as a result of its nature and capacity to evoke deep emotions from all, differentiates it from other (still important) addresses and presentations of the auspicious SAPOA Conference. It is with professional admiration that we, as part of the legal fraternity, were able to witness and listen to a narrative and an enumerative historical sequence of where our legal framework has meandered through, and the status quo in which the country finds itself as a result thereof, from a man who has left most of us with a sense of “restoration”. It was this sense of “restoration” and “affirmation” that found its place next to the seat of principles of integrity, dignity, respect, impartiality

and justice that are inherent and fitting in our context, to take pride and “curry favour” on the side of the law.

While debates and views on the issue of expropriation of land in South Africa will continue to dominate the local discourse, Deputy Judge President Moseneke will have left a mark in our minds as to the historical prejudice that proprietary ownership and possession has had to endure in the past. It was not only that his address sought not to invoke anger or bitterness nor unearth emotions of guilt or shame, but that it left us with one clear message: that a solution is required – one with a moral and legal conscience, one that will always have the permeations and permutations of the 1913 Land Act in its foresight, by taking stock of the past, with the intention to resolutely and on a balance of scales of justice to address the present, in order to positively but in a responsible manner to influence and build a better future.

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T: 086 111 2431

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sapoa board

Meet your SAPOA 2013 / President Estienne de Klerk Executive director at Growthpoint Properties Limited Estienne’s experience spans 18 years, overseeing take-overs, mergers, acquisitions, BEE deals and capital raisings.

He started in the marketing department of Eskom Durban Distribution, followed by banking and property finance with Investec. He has represented the SA REIT Association as signatory to the Property Sector Charter and is the chairman of PLSA REIT committee responsible for the establishment of REIT legislation.

Amelia Beattie Chief investment officer at Direct Property Investments, SAPOA president elect

Dr Sedise Moseneke CEO of Encha Property Services

Brian Azizollahoff Shareholder and partner at Capstone Property Group

Mike Deighton CEO of Tongaat Hulett Developments

Malcolm Horne Group CEO of Broll Property Group (Pty) Ltd

Amelia joined Stanlib in 2012 after more than 10 years at Old Mutual Property. She has extensive strategic and implementation experience in all property disciplines. A recipient of the Women’s Property Network and Nedbank “Five Star Woman” award, Amelia is passionate about education, and is a founder and trustee of the Women’s Property Network Education Trust, which promotes the education and development of young women in property studies.

After completing his bachelor’s degree in dental surgery in 2000, Dr Sedise Moseneke served in the SANDF as a lieutenant in the Burundi peacekeeping mission. Today he is the CEO of Encha Property Services, a subsidiary of the Encha Group.

In this capacity he has managed the growth of the portfolio from R330-million to R1,5billion through the Vukile listing. Sedise is also an elected board member of Nu-Way Housing Developments and Krisp Properties.

Before Capstone Properties, Brian was the executive director and chief executive officer at Redefine Properties Limited and Redefine Income Fund Limited respectively. He was behind the strategy to merge Redefine, ApexHi and Madison Property Fund Managers into one internally managed fund, which resulted in Redefine being the second-largest listed property company in South Africa. Brian is an Absa Business Achiever Award winner.

Mike started his career with Durban Municipality, later working in industry and in the consultingengineering profession.

In 1995 he moved into property development, joining Gough Cooper Homes, and later Group Five Properties. In 2000, he joined Tongaat Hulett Developments as a development manager, and was later promoted to director of commercial and industrial developments. In 2008, he was appointed chief executive, making him responsible for property development.

Malcolm heads propertyservices company Broll, with R60-billion assets under management, 1 250 employees and offices across South Africa.

Broll is also pioneering professional property services in sub-Saharan Africa, where it operates in 15 countries from eight offices. Malcolm is also a director at Akhona-Broll Properties, Anglo American Properties, Ampros, Amaprop Townships, Broll Valuation and Advisory Services, South African Council of Shopping Centres and WSPFMG Facilities Management.

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sapoa board

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1 Estienne de Klerk 2 Amelia Beattie 3 Dr Sedise Moseneke 4 Brian Azizollahoff 5 Mike Deighton 6 Malcolm Horne 7 Peter Levett 8 Lesiba Maloba 9 Ipeleng Nonkululeko Mkhari 10 Marius Muller 11 Musa Ngcobo

Peter Levett Managing director at Old Mutual Property

Lesiba Maloba General manager (property investments) at Public Investment Corporation

Ipeleng Nonkululeko Mkhari CEO of Motseng Investment Holdings

Marius Muller CEO of Pareto Limited

Musa Ngcobo CEO of Lulama Property Fund

Peter has been with Old Mutual for 16 years and with Old Mutual Property for 12 in various roles, including head of corporate finance and chief operating officer of the Old Mutual Investment Group. He also spent five years at Goldman Sachs in London.

In his position of general manager at the largest asset-management company in South Africa, Lesiba presides over a property portfolio of an estimated R60-billion, which is continually growing. His experience in the property sector is intercontinental and spans two decades.

He is a board member of the V&A Waterfront and a property committee member of the Community Property Company.

Ipeleng established the first black-womanowned CCTV business and subsequently co-founded Motseng Investment Holdings, a diversified investment holdings group in 1998.

Ipeleng has been named one of CEO magazine’s most influential women in business, and was a finalist in the Entrepreneur Business Woman of the Year. She is an Archbishop Tutu Fellow.

Marius’s property experience includes leasing, financing, project management, development management and asset management.

Prior to Pareto, he was involved with the listing of Resilient Property Income Fund on the Johannesburg Stock Exchange. He also served as an executive director at Resilient, Diversified, Pangbourne and i-Four, also holding the appointment of managing director at i-Four.

After a career in marketing and advertising sales and investment banking, Musa joined Aucor Auctioneer as a property specialist.

Later he co-founded Kensani Properties, and also founded Skhoma Properties in 2010. Today he is involved with the Nedlac BBBEE Task Team and BUSA Transpol, and is also on the presidential BBBEE Advisory Council’s subcommittee.

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cover story

At the heart of our heritage Heartland’s development sites in Gauteng and the Western Cape bring with them a number of historical and architectural gems which require a prerequisite amount of management in the form of retention, renovation and appropriate restoration to ensure sustainability.

Its head office, located in Modderfontein, Johannesburg is one such building

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odderfontein Village was established in 1894 to meet the needs of the growing gold-mining industry. Various heritage buildings have been retained in Modderfontein, including: l The Modderfontein Dynamite Company Museum: Constructed in 1895, this was originally the residence of the first chief engineer. It has served as a museum since 1987; l Franz Hoenig Haus: The first factory manager’s house, constructed in 1896; l 33 High Street: The assistant factory manager’s house constructed in 1897; and

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l 1 Casino Road: Constructed in 1897.

1 Casino Road was built to meet the recreational and entertainment needs of the management staff at the dynamite factory. It lies in the heart of Modderfontein’s historic village.

The building contained, among other things, a ballroom and concert hall, a woodpanelled lounge, a kitchen, an opulent bar area and a library, and has undergone many conversions from the days when it was lovingly built by master craftsmen, with fixtures and fittings shipped in from Europe, to create the opulent interiors and Germanic-style architecture deemed suitable for its purpose.

Since being built, it underwent various conversions and served different purposes.

The building was commandeered by the military staff of Major General Baden-Powell during the South African War, it served as the Town Hall when Modderfontein was proclaimed a Town Council, and is now the headquarters of Heartland.

Heartland moved into the building during the late 1990s and has occupied the building ever since. During 2011, the building was re-looked at it in terms of identifying more efficient use of the space. Johannesburg-based interior-space design company, Tower Bridge, was approached to assist with the renovation, which culminated in the delivery of a completely renovated building in January 2013.

The brief was to restore and refurbish the entire building within the existing Germanic architectural style while modernising the interior, which serves as office space to a staff of about 50 people. The end result is a combination of efficient use of internal

ABOVE Airy, open-plan offices give a relaxed, productive feel BELOW The building was originally constructed in 1897 OPPOSITE The bar on the upper level has a gentleman’s-club atmosphere about it

cover story

space, the retention of architectural character and modernisation of interiors.

The synergistic relationship between old and new is evident throughout the building.

Modern elements such as bulkheads, porcelain tiles and flush plaster ceilings were introduced. A pressed metal ceiling was discovered in good condition, where a suspended ceiling was planned, and the project team attended to the restoration of the ceiling instead. A section of pristine brickwork and steel girders was uncovered in the executive area; this has been left unplastered, with the steel showing the stamp of the German foundry where it was cast.

“From an organisational point of view, the concept was to optimise the use of space while improving communication in the company,” says Charl van Niekerk, an engineering manager at Heartland, who took on the role of designer and project manager for the restoration. “We moved to open-plan areas where teams could collaborate and work closely together.”

The project was designed as a series of stages (starting on the first floor and moving to the ground floor), as staff needed to be accommodated during the renovation if the offices were to continue functioning. Three planned moves of various departments

allowed for staff to continue with as little disruption as possible, and noisy, disruptive work was scheduled for weekends.

The rather dark reception area was opened up with sections broken through. The initial plan in the reception area was to install a flush plaster ceiling throughout but this needed to be changed to accommodate the different ceiling levels and services such as air conditioning, which needed to be installed.

The old Dance Hall, originally the venue for “an inconceivable variety of functions, from flower shows to boxing matches and Bioscope”, according to the unpublished The Modderfontein Club by Ray Moore, was

converted into open-plan office space with suitable ventilation and adequate lighting.

During the revamp, three sealed ventilation towers were discovered in the roof structure.

The revamp of these towers allowed for improved natural lighting in this area. Split airconditioning units were added, with ducting neatly hidden behind the historic cornices.

The open-plan office is sectioned off with glass screens imprinted with historic images of the building dating back to 1897, below an impressive ceiling of steel and timber latticework. Printed wallpaper is also used throughout the building to depict the history of the building and of the area. The concept of using printed wallpaper was an input from the Tower Bridge team. The photos used were sourced by Heartland, the glass screens were produced by Ukhuni, and the graphic wallpaper was created by Lemon Decor, who specialise in this type of work.

The main boardroom on the upper level is sectioned off from the passage by transparent vinyl with deep-etched scenes of the modern Jo’burg skyline. This idea, conceptualised by Van Niekerk, showcases the different elements of the work that Heartland undertakes. An aerial photograph of Modderfontein (dating back to 1968) wallpapers one of the walls in the main boardroom, continuing the theme of history and how the area has evolved.

The bar on the upper level, an opulent and imposing room, has an old gentleman’s-club feel to it. The intention was to retain this feel with paint and wallpaper but, instead, historic timber panelling behind the perimeter wall seating booths was discovered and the decision was taken to restore this. With floorto-ceiling curtaining, sheer weave roller blinds, new carpets and reupholstered stools, the bar has been revitalised while retaining its character.

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cover story

ABOVE The reception area shows use of archival images to give homage to the historic value of the building BELOW 11 Antwerp, restored and relocated

The revamp of 1 Casino Road has breathed life into the building and rejuvenated its occupants. This is one of many heritage buildings in Modderfontein and one of two notable heritage projects in the area.

The disassembly and relocation of three houses is another demonstration of retention of heritage buildings.

Two of the three houses were constructed between 1898 and 1899 and served as the residence to the company building contractor and the chief security officer (respectively).

The last of the three was constructed during 1922 and is a typical example of post-WWI staff housing.

The Gautrain rapid-rail alignment had a negative impact on these buildings in that they were spatially segregated from the historic core. A proposal was submitted to the heritage authorities to relocate and restore the three buildings. They were then moved to what will ultimately remain as Modderfontein Historic Village.

To allow for the relocation, fully dimensioned technical drawings of the existing structures were prepared. Schedules of finishes, windows and doors, and details

showing special ways in which components were originally assembled were drawn up, and extensive photographic records of the interior and the exterior were prepared.

Detailed inventories of materials and components to be reused as well as materials and components to be replaced were prepared prior to and during the disassembly.

Reusable material was labelled and numbered to allow for reconstruction of each building in a manner that retained its form and story. Disassembly of the buildings took place under the watchful eye of the appointed architect.

A key component between disassembly and relocation was the storage of materials and components. Storage for a prolonged period of time would compromise the reconstruction of the buildings – so the sooner the structures could be rebuilt after being disassembled, the greater the chances of achieving visual accuracy and retaining as much of the original material in good condition and undamaged by excessive transportation and exposure to the elements.

Materials that were not weather resistant were stored under secure cover.

The receiving site, which the buildings were relocated to, was surveyed and boundaries were set out. The new sites were selected partly because the topography of the location matched that of the original location, which reduced the need for extensive and potentially environmentally disruptive ground works, and ensured that the structure maintains architectural integrity on the site.

Plans were prepared to accommodate new electrical, plumbing, security and communication reticulation layouts, as well as other alterations and additions required to ensure the buildings’ sustainability.

These buildings are now housed on High Street in Modderfontein and are surrounded by heritage gems that will be retained: the Dynamite Company Museum, Franz Hoenig Haus and 33 High Street.

The relocation of the Antwerp Houses and the renovation of 1 Casino Road are seen as the ideal showcase for Heartland’s planned Historic Village.

“We are extremely proud of our heritage buildings,” says Van Niekerk. “But when a heritage building is viewed by prospective tenants or investors, they invariably want to rip out the interior and modernise everything.

The relocation of the three houses and the restoration of 1 Casino Road are seen as an example of how one can preserve heritage while meeting the requirements for an efficient building.”

Heartland’s vision for the Historic Village is to create a mixed-use development by restoring the heritage buildings in the precinct, while continuing with the release of land to allow for infill development in predefined areas.

+27 (0)11 579 1000; +27 (0)21 852 1154 Heartland.co.za

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g n i k Ta s t i o t y t r e p o r P . l a i t n e t o p l fu l Times & lifestyles are changing, new challenges demand a fresh outlook and solutions. Heartland has developed an innovative approach to creating efficient spaces for people to live, work and play. Focused on meeting the need for responsible, sustainable developments – resulting in quality spaces where business, industry and communities take root, prosper and grow.

FOR LETTING OR DEVELOPMENT ENQUIRIES

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interview

The Encha-Vukile job With the ink barely dry on what Dr Sedise Moseneke calls one of the “most ground-breaking BEE transactions to date”, the property industry looks set for a shake-up in the way transformation works from now on

By David A Steynberg

“It is definitely a step forward because of the way the transaction is structured,” says new executive director at Vukile Property Fund, Dr Sedise Moseneke

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T

he first day of August 2013 was a significant milestone for Dr Sedise Moseneke’s Encha Properties and Laurence Rapp’s Vukile Property Fund. It was the day when a true BEE property owner would partner with a listed entity in its bid for real transformation, while creating significant equity and diversification of its property portfolio.

The transaction was structured so that five of Encha’s properties – predominantly in the national government-tenanted space – would be acquired by Vukile Property Fund for about R1,4-billion. In exchange, Encha would own R500-million in shares (or approximately six percent) in Vukile.

According to Vukile, “For the purposes of the Property Sector Charter, this would represent an approximate 20% holding in Vukile, after adjusting for mandated investments.” The properties in the portfolio consist of investment-grade properties such as Navarre Wachthuis, the Koedoe Arcade and De Bruyn Park in Pretoria, as well as the Pretoria Momentum building and the Bloemfontein Fedsure building.

Still, the transaction has not been without criticism, with some people saying it is a step back from the Property Sector Charter and the industry’s transformation agenda. It has been criticised because, had Encha opted for the front-door listing process – started by Rebosis in 2011 – Encha as the BEE company would have remained in complete control.

Moseneke, a new executive director at Vukile Property Fund, says the industry is missing the point and not studying the finer details.

“It is definitely a step forward because of the way the transaction is structured,” he says.

“Not only does it address the requirements as set out by the Department of Public Works in terms of having a 100%-black-owned asset and property management company, but it also demonstrates how the property industry can do transactions between non-listed black companies and listed entities while meeting all the requirements of the property charter on a commercially sustainable basis.”

Encha has brought its own equity, property skills, and a portfolio of properties that it had owned and managed previously, in exchange for a significant portion of Vukile.

It will also perform an asset and property management role for several of Vukile’s sovereign tenant properties.

“Not only are we addressing ownership issues, we are also addressing meaningful, commercially driven transformation within Vukile itself,” says Moseneke. “We think it’s a ground-breaking transaction in that it demonstrates to the industry that the era of doing transactions where you are only getting a few non-property-related, well-networked individuals to form a consortium and to hold shares in a listed company is over. We are bringing to this transaction skills but we are also bringing our own net equity in terms of the portfolio.”

“Key issues of the property charter are being addressed, compliance is being met in terms of the scorecard, and the transaction makes room for future growth” Coming back to the Property Sector Charter, however, this transaction addresses executive management requirements in that Moseneke himself will become an executive director and be permanently based at Vukile.

Ownership requirements will be addressed, as will procurement, enterprise development, socioeconomic development, employment equity and investment in previously disadvantaged areas. This has also always been a focus of Vukile’s retail strategy.

“With this transaction, key issues of the property charter are being addressed, compliance is being met in terms of the scorecard, and the transaction makes room for future growth of Encha within Vukile through an equity tap structure that allows us to keep acquiring units within Vukile and to ensure there is no dilution of share-holding as the company continues to grow,” Moseneke says. “We see it as a new way of doing BEEbased transactions in the property sector; more importantly, the value and the economic benefits of the transaction still remain with Encha. So we are not diluting in terms of the structure; we’re not losing our economic value.

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Whatever we have created over the years, we have been able to bring with us into the Vukile transaction.”

In fact, through the structure, Vukile has the potential capacity to grow its market cap substantially while still retaining the required BEE-ownership levels per the sector scorecard.

Such a transaction, however, would never have been possible without Vukile’s buy-in.

This is one aspect in which Moseneke tips the proverbial hat to Rapp’s “purpose and vision when it came to creating a transformed Vukile Property Fund”.

“He has embraced transformation in a very unique way: he was the first out of the blocks saying he wanted to do a property transaction that is commercially based,” Moseneke says.

“Even though the transaction will definitely benefit Vukile from a transformation charter perspective, he wanted to make sure it was sustainable and financially viable for Vukile and its unit holders.

“We were not requesting that any of the Vukile shareholders fund the transaction because Encha Properties brought its own equity and capital to fund it” “So you have two companies that had two very different strategies when it came to creating value for Encha and transformation for Vukile; and we were impressed how Laurence [Rapp] and his executive team had embraced the transformation as well as the unit holders who gave their support for the transaction. I don’t think we encountered anyone who was against the transformation transaction – especially because there was no dilution. We were not requesting that any of the Vukile shareholders fund the transaction because Encha Properties brought its own equity and capital to fund it – and it’s very important that we hadn’t requested any of them to assist in a BEE transaction. It was based purely on merit and on Encha being able to deliver on the equity from day one.”

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Boots and mortar Property players are changing the rules of the game through strategic sponsorship in rugby

By Candace King

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n the quintessential South African lounge or local pub, the sport of the day is often accompanied by the three “B”s: braai, biltong and beer. In recent times, a fourth “B” has been added to the equation – bricks. As a way of finding alternative and revolutionary methods of branding, property giants in the commercial property industry have started to sponsor rugby, using strategic branding that targets both the general public and company clientele.

In February 2012, South Africa’s second-largest listed property loan stock company, Redefine Properties, concluded a three-year sponsorship deal with the Golden Lions Rugby Union as a co-sponsor of the MTN Lions team. According to Redefine’s integrated annual report for 2012, development of the company’s brand strategy includes both sponsorship and advertising in the rugby arena.

Through the Lions team sponsorship, Redefine branding was featured on the official kit as well as on the field for both the Vodacom Super Rugby and Absa Currie Cup competitions. Furthermore, as part of its communication programme, Redefine ran a highimpact advertising campaign on squeeze-backs during sports programmes on DSTV. Redefine got the rugby-sponsorship ball rolling; now, more than a year later, other property companies are following suit. In May, Growthpoint Properties announced its new five-year multi-million-rand stadium-naming-rights sponsorship of the Sharks rugby team, resulting in the renaming of the Sharks’ home ground (which will be known as Growthpoint Kings Park). Apart from the naming rights, the company’s logo will also appear on the back of the playing shorts of the Sharks’ team kit.

basis – wholesale/rent clientele including office and industrial clients, as well as broader-market clientele such as retail clients.

“We never saw this as a competition but rather as a branding opportunity,” he says. “There is high brand value in this form of sponsorship and property companies are catching on to this type of opportunity.

There are emerging brands in real estate that I see as an ongoing future trend.”

He adds that this type of unique sponsorship allows Growthpoint to communicate its brand to its target market, as many of its clients follow rugby.

Furthermore, he notes that the Vodacom Super Rugby tournament is an appealing branding avenue for Growthpoint because it allows for exposure into Australia – a market that is important to Growthpoint.

Growthpoint Properties is the largest South African listed property company, with property assets valued at more than R55-billion. It owns and manages 390 properties in South Africa, 44 properties in Australia through its investment in Growthpoint Properties Australia or GOZ (in which it has a 66% stake), and has a 50% interest in the properties of the V&A Waterfront in Cape Town.

Growthpoint in the shark cage Having grown up on the south coast of KwaZuluNatal, executive director of Growthpoint Properties and current SAPOA president, Estienne de Klerk, says he’d attended the stadium as a young boy several times and explains how the renaming of the stadium is an overwhelming feat. “We are excited about the prospect and feel very proud,” he says. “Growthpoint started out as a small business more than a decade ago, and it is now South Africa’s biggest listed property company. It’s all very surreal.”

The burning question is, why rugby? De Klerk explains that, in relation to Growthpoint, this type of sponsorship offers value to the company’s profile and simultaneously targets Growthpoint’s two-tier client 28

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THIS PICTURE Growthpoint Properties is proud to have its name associated with Kings Park Stadium in Durban ABOVE Redefine Properties became the co-sponsor of the MTN Lions in February last year, setting the sponsorship ball in motion

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“The Sharks brand is one of the biggest in South African rugby,” says De Klerk. “They have more loyal supporters than any other team. It is a brand that Growthpoint can closely associate with, because we share common areas of values. It was a natural fit for us.” He explains that the sponsorship also holds other benefits, such as having access to players as well as facilities at the stadium.

Head of marketing and communications at Growthpoint Properties, Nadine Kuzmanich, says they sought to sponsor a team as passionate about connecting with fans as Growthpoint is about its clients.

TOP Estienne de Klerk of Growthpoint Properties with former Sharks CEO Brian van Zyl

“South Africa loves the Sharks,” she says. “Sporting fans are passionately invested in the team. It’s a really emotional connection. We feel the same way about our clients. We are delighted with this new five-year partnership. This sponsorship will give us exposure across the landscape of South Africa and Australasia, which is what we have been looking for.”

Branding fit for a king Although not strictly a commercial property company, leading infrastructure development group Aveng has also pursued the sponsorship of rugby. In March 2013, the Aveng Group announced its conclusion of a major sponsorship deal with the Southern Kings and the Eastern Province Rugby Union. The terms of the sponsorship deal include the right to display the Aveng logo on the front of the Southern Kings’ Super Rugby franchise’s jersey as well as the front of the EP Kings’ Currie Cup team’s jersey.

The Southern Kings wore the Aveng-branded jerseys for the first time in a match against the Sharks, played on 9 March 2013 at the Nelson Mandela Bay Stadium, which was built by the Aveng Group in 2009. “The Southern Kings rugby sponsorship really resonates with Aveng because the team is still in its development phase, and is based in a region in which the Aveng Group has a large footprint,” says a spokesperson for the group. “It is also a good fit to have a sponsor that built the Nelson Mandela Bay Stadium, home of the Kings. The Aveng Group did not seek out a rugby sponsorship in particular. Having built a number of the stadiums around the country, Aveng was approached by a sports-sponsorship company and presented with a number of proposals across all disciplines.”

Back in 2009, the Aveng Group sponsored the Southern Kings when they played in a match against the British & Irish Lions. They are once again sponsoring the team, this time for the 2013 Super Rugby season. Like Growthpoint, Aveng has a very strong presence in both Australia and New Zealand, which is another reason the sponsorship was secured.

Aveng boasts a strong presence in the Eastern Cape, where much infrastructural work has taken place lately. This includes the recent completion of a major expansion to the Boardwalk Casino for Emfuleni Resorts, work at Aspen Pharmacare in Port Elizabeth, the expansion of the Rehau factory facility in Uitenhage and alterations to the Frere Hospital in East London, undertaken for the Coega Development Corporation.

Beyond the try line With rising competition in the commercial property sector and the built environment as a whole, companies need to seek out alternative ways of getting their brand across the try line. Property-related companies need exposure, and South African rugby, in turn, needs successful and efficient financial sponsorship.

“We welcome Growthpoint Properties to the Sharks family and we thank the company for its investment in our brand,” said former Sharks CEO Brian van Zyl at the time. “We look forward to a long and mutually beneficial partnership.”

“We are very excited to have a company of Growthpoint’s pedigree on board as stadium-namingrights sponsor,” says Sharks’ managing manager Michael Ablett. “Both our brands have enjoyed vast success over the years and we look forward to the joint success of this new, exciting partnership.”

According to Oregan Hoskins, the president of the South African Rugby Union, “A vibrant rugby culture in the Eastern and Southern Cape is vital for the health of the game in South Africa. I’d like to add my thanks to Aveng, and particularly to their chief executive, Roger Jardine, for his role in concluding this important arrangement. I’m sure both parties will benefit from the partnership.”

Although the sponsorship is only for one year, the Aveng Group might extend the contract into the 2014 season, depending on whether the Southern Kings are still involved in Super Rugby. From a Growthpoint perspective, De Klerk notes that after the five-year contract is up, the sponsorship may also be renewed.

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Where to for SA? Is it all doom and gloom for South Africa – or will this wounded lion reunite with the African pride once more?

By Candace King Photographs by Michael Glenister

A

bout a decade ago, The Economist labelled Africa “the hopeless continent”, a highly opposed statement that the authoritative weekly came to regret. Not learning from the past, The Economist found itself in hot water once again with the media and the political world when it published an editorial on South Africa in October 2012.

Entitled “Sad South Africa – Cry The Beloved Country”, the article negatively critiqued the country’s economic and political landscape, stipulating that South Africa is sliding downhill while much of the rest of the continent is clawing its way up.

“Not so long ago, South Africa was by far the most serious and economically successful country in Africa,” the article stated. “At the turn of the millennium it accounted for 40% of the total GDP of the 48 countries south of the Sahara, whereas Nigeria, three times more populous, lurched along in second place with around 14%.

The remainder, in raw economic terms, barely seemed to count.” The article went on to say that today the rest of Africa, with its “lion economies” is fast outshining South Africa, and that the once-fruitful country is drowning in its own problems.

Despite the widespread outcry, there are those who agree with the article, such as the South African Institute of Race Relations (SAIRR), which believes that The Economist got it right this time. “It can surely not come as a surprise to anyone who has paid close attention to South Africa over the past five years that we are on an unsustainable economic and political trajectory,” says the institute’s deputy chief executive Frans Cronje. “This is not to say that the country has not made any progress in terms of areas such as living standards or service delivery, as the institute has repeatedly pointed out. Rather, it is to say that without dramatic shifts in policy, it is no longer possible for the current government to meet the demands of actors within the South African society.”

He says a lot of foreign correspondence on South Africa is blinded by the “Rainbow Nation miracle” and that the further away we move from that analogy, the clearer it is that South Africa is perhaps not that special.

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Tony Leon

“We are just another normal emerging market with the usual emerging market problems,” he says. “The Economist reports will obviously have an impact on investor sentiment.

In the short term the impact will likely be negative and will cause damage to the economy. In the long term, however, it will alert people – in government, the business world and outside – to the need for urgent policy reform.”

So is South Africa truly going backwards?

Is the country mimicking its apartheid past with its inequality, corruption, poor political decision-making and economic downfall?

Strikes, hikes, economic woes South Africa cannot and should not mask its problems. Over the past few years the country has experienced a plethora of nagging issues, including an economic crisis, widespread electricity blackouts and political shenanigans.

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The Economist reported that, over the past decade, “Africa to the north of the Limpopo River has been growing at an annual average clip of six percent, whereas South Africa’s rate for the past few years has slowed to barely two percent.”

It went on to state that rating agencies have downgraded South Africa’s sovereign debt, foreign investment is drying up, protests against the state are becoming more violent, our education system is in shambles and that high unemployment persists. “According to the World Economic Forum, South Africa ranks 132 out of 144 countries for its primary education and 143 in science and maths,” it said. “The unemployment rate, officially 25%, is probably nearer 40%; half of South Africans under 24 looking for work have none. Of those who have jobs, a third earn less than US$2 a day. Inequality has grown since apartheid, and the gap between rich and poor is now among the world’s largest.”

South Africa has been hit hard by a wave of economic unpleasantness: wildcat strikes in the mining, agricultural, trucking and textile industries, rocketing petrol and food prices, high household debt, and corruption.

One of 2012’s harshest highlights was that of the Lonmin Marikana strike that saw the deaths of 44 people. According to figures compiled by SAIRR from print-media reports, 200 people were killed in strikerelated violence between January 1999 and October 2012.

“What has happened since the Marikana shooting, both in terms of ratings-agency downgrades and the latest report from The Economist, is a much-needed correction in opinion about South Africa,” says Cronje.

“For too long South Africa has benefited from the aura of its peaceful transition. For this reason the change of sentiment towards the country will ultimately be beneficial as it will lead to a more accurate assessment of the challenges confronting South Africa and its government.” He suggests that the South African government should stop being picky when it comes to direct foreign investment and rather welcome any investment interest and opportunity that the country receives.

Dr Roelof Botha

“The current economic climate and the factors impacting the economy (global economic conditions and domestic developments, such as the labour-market situation) are not conducive to economic growth, or consumer or investor confidence,” says Absa’s senior property analyst Jacques du Toit. “Many consumers are still experiencing some financial pressure on the back of low employment growth, rising living costs, high levels of debt, low savings, impaired credit records and low confidence.

Real economic growth slowed down to only 1,2% in the third quarter of 2012, from 3,4% in the second quarter. Consumer confidence is at a low – back to a level last seen in 2008, when the economy was in recession.”

One of the most important things to keep an eye out for in 2013, says the SAIRR, is consumer and household debt. According to the SAIRR’s recent survey, Gauteng has the highest consumer debt per capita out of all nine provinces, and accounts for almost half of total consumer debt held in South Africa. Total consumer debt in South Africa has increased from R85-billion in 2011 to R104-billion in 2012.

A slight change of heart At a “state of the nation” business breakfast in Sandton, former leader of the opposition party and South African ambassador to Argentina, Tony Leon (pictured opposite), addressed the current situation in our country and proposed several future paths for South Africa. With high unemployment, inequality, corruption and an economic downturn, it’s no wonder South Africa is being stigmatised as a failing nation.

Leon used Argentina as a case study, illustrating how a country can go from hero status to zero in the same way as sporting icons such as Oscar Pistorius and Lance Armstrong. Like South Africa, Argentina is a resource-rich country, boasting one of the largest shale-oil and gas reserves in the world. During the 1930s, Argentina was one of the 10 most successful economies. Sadly, due to bad governance and corruption, a lack of judicial independence, high taxes and tariffs, and interfering regulations, Argentina has suffered several setbacks – high inflation, high poverty and unequal income distribution.

South Africa boasts similar problems.

However, amid the negative issues, it still illustrates pockets of sunshine. “It was Bill Keller who said that if South Africa does not leave you ambivalent, then you have not been paying attention,” noted Leon.

And despite the negativity surrounding our service delivery, ironically, South Africa has made significant strides with improvements made in the last 19 years. Household income has increased by 30% in the last decade. Our accounting sector is ranked as one of the best in the world. And the list continues.

Joining Leon at the breakfast was Dr Roelof Botha (pictured above), top economist and commentator on South African economics and politics, who sees the silver lining of our country’s problems. He noted there have been healthy post-recession growth trends for South Africa’s key sources of taxation, and that South Africa’s fiscal affairs are stable. Debt is dropping and the rand is mostly where it should be, and our prime rate has been very low in the past 40 years. “The whole debt issue has been exaggerated by the media,” he said. “There is nothing wrong with credit.

Without spending there is no economy!”

His concerns loomed around labour and energy resources. “COSATU is the enemy within,” he said. “It encourages members to behave lawlessly. Government needs to cut the ‘umbilical cord’ with COSATU.” He also noted that our labour sector, especially in agriculture, has suffered the most.

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Jacques du Toit

Employment in agriculture has dropped tremendously, with 600 000 jobs lost thanks to COSATU. Apart from labour, our electricity is a major issue. “We do not have enough electricity, which prevents South Africa from increasing its GDP.”

The property market How does the property industry fit into this socioeconomic drama? Du Toit says the residential property market showed a relatively subdued performance in 2012 as compared to a few years back. The market has been affected by economic trends, the state of consumer finances and confidence in the past year, as reflected in demand and supply conditions. “Affordability of property remains an important factor in view of the state of consumer finances, rising living and property-running costs, banks’ lending criteria, interest rates and property prices,” he says.

Re/Max of Southern Africa chairman Peter Gilmour says that, despite the challenges, 2012 was a solid year for real estate in South Africa. He notes that high debt-to-income ratios and a poor savings culture are the main reasons behind South Africans’ struggle to secure home finance.

“South Africa only has a domestic-savings rate of about 20% of GDP, compared with other emerging markets, such as China, which has a domestic-savings rate of about 50% of GDP,” he says. “High debt and poor savings reflect negatively on affordability levels, which has held back the market and slowed down recovery. For this to change in 2013, South African consumers need to focus on clearing their debt and starting a savings programme to ensure their ability to secure home-loan finance in the future.”

Gilmour points out that one of the positives of 2012 was the cleaning up of the Estate Agents Affairs Board, which will definitely improve industry standards.

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“We have every confidence that this change will have a positive effect on the industry in 2013 and we look forward to a new era in the real-estate business that is synonymous with good governance and transparency,” he says.

He is optimistic about property sales and house prices in 2013. “As investment in business and infrastructure increases, there will be a gradual increase in employment, which will lead to increased demand for both rental properties and property to buy,” he says. “Home prices are expected to continue their gradual rise in 2013, especially in the high-demand areas and price brackets, while interest rates are expected to remain low, therefore presenting buyers who have cash and can qualify for mortgage finance with a great opportunity to invest in a home at a good price.”

Where to from here?

Cronje (pictured above) tells us to expect more strikes in 2013. He says the more pressure is put on the government by the strikers, the more corrective action it will put in place in order to alleviate and solve the country’s dire problems.

“What do you think you get when you have a 50% youth unemployment rate, the highest inequality levels in the world and an education system that doesn’t perform? You can only have radicalism and instability,” he says. On a lighter note, Cronje says this is actually a good thing for South Africa – it will create more “lightbulb moments” among businesspeople, government officials and policymakers, so that they find ways out of the crises.

“It is expected that the economy will grow further this year, while employment growth is expected to be low,” says Du Toit.

“Inflation is forecast at around six percent this year, compared with 5,7% in 2012.

Inflation erodes the spending power of consumers. However, interest rates are projected to remain low, which will support the property market and the demand for (and affordability of) mortgage finance. Global economic growth should improve, domestic labour-market conditions should stabilise, households should increase their savings and lower their debt by living within their means. Property-price growth is expected to remain relatively low in 2013, which will result in little capital appreciation.

Property demand and supply conditions will have to be more balanced, and consumer finances will have to improve before a significant improvement in the residential property market will occur.”

Gilmour says the most important thing that property industry professionals can do this year is to continue building relationships.

“The more things change the more they stay the same,” he says. “Despite all that has changed in recent years and all the technological advances that have assisted real-estate professionals, the fundamentals of being successful remain the same. While the growth in real estate in the year ahead may not be substantial, it will certainly provide opportunity for buyers, renters, agents and real-estate companies to improve their situations and benefit from the relative economic stability that South Africa has to offer.”

Botha noted that the recession is over and marginally higher real GDP growth is forecast for 2013. Inflation is to remain low, reaching six percent, and formal-sector employment is making slow progress. He believes that we will reach four percent GDP growth next year – but Cronje believes there’s a 50/50 chance that South Africa will see either “the long dark night” or “the new dawn”. He also thinks the ANC is likely to lose the 2024 elections if it does not reform and fix the country’s problems.

Amid a strong public voice that critiques government, Leon said South Africa is home to a very boisterous population that can assist in pulling the country out of the mud. The top companies in South Africa will continue to drive the country into the fast track towards prosperity. “The 2014 elections will see increased support for the opposition and more coherence among opposition parties. The ANC will return to power but with reduced support,” he said.

“If we live in the past we will never reach the future or achieve great things. The dawn always rises in Africa.”

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Transformation by the lake

With sustainability on its side, the Lakeside Office Building in Centurion is the epitome of inspiration and transformation by design Situated directly opposite the Centurion Gautrain station, the auspicious and sustainable Lakeside Office Building is located in Centurion’s growing commercial node on the north bank of Centurion Lake, offering prime office space and convenient access from both Johannesburg and Pretoria, as well as the N1 and N14 highways.

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This design is testament to the complex resolution of the numerous problems and development aspects faced when transforming old office buildings (seen opposite) with serious limitations into a contemporary office space

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Developed by Growthpoint Properties and designed by AMA Architects, the Lakeside Office Building won the SAPOA Innovative Excellence Award in the Overall Green Property Development category, and has achieved a 4-star Green Star Office V1 rating.

This redevelopment incorporates sustainable development technologies, from design through to construction. It embodies sound principles of liveability and environmental preservation through the intelligent reuse of existing building structures. The five-floor lowrise redeveloped office building consists of 6 146m² of GLA with 5 223m² of A-grade office space. It also contains 227 parking bays, including visitors’ parking in the basement of the building, as well as open and shade-port parking.

The façade was extensively replaced with ETICS in order to lighten the face-bricked look of the original building. The lightweight ETICS cladding structure has become the new envelope for the building. The re-cladding of the façades has also enhanced thermal efficiencies, and the redesign of the windows has enhanced the internal light quality.

Sustainable design specifications u An air-conditioning system that uses less power and water u The installation of heat pumps and solar geysers, resulting in lower energy consumption u Low-water-consumption sanitary fittings, including waterless urinals u Special commissioning of the electrical, plumbing and air-conditioning systems u Use of fly ash in place of Portland cement in the concrete u Insulating glass with special shading provisions u Low-energy-consumption lamps u A building management system to reduce energy consumption u Use of low-VOC paints and adhesives, and timber products from sustainable sources u Use of non-ozone-depleting refrigerants u Procurement of the majority of building materials within a 400km zone of the building u Facilities for recycling waste u Facilities for cyclists and provision for hybrid vehicles in the parking SOUTH AFRICAN PROPERTY REVIEW

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on show

Security is a major plus at Lakeside, with features including boom access control at all entry and exit points (using proximity cards); CCTV cameras at vehicle entry points; an electric fence around the perimeter of the property; a video intercom at the front entrance to allow clients to control visitor access; access control into the basement parking and from there into the building; and highly trained security guards.

Completed in February 2013, this striking, contemporary office building encloses its core space through a new glazed atrium from which there are attractive views over Centurion Lake. The office configuration favours an open-plan arrangement around its atrium, and all internal fire-escape stairs and vertical service shafts, often in the middle of a floor plate, were stripped out to free up the floors. An observation lift in the triple-volume atrium adds kinetic linkage to each of the floor plates.

The design aims to contribute to the surrounding urban framework through expressive architecture. The new forms of these buildings were designed through a particular engagement with the site and contour. The contemporary linear layering is the textured architectural form that enhances the distinctive design.

The relationship between the inside and the outside, the extended horizon and views of the lake at the periphery, and the contained views of the atrium, links the recognisable spatial poetics. We have reused, extended and embraced the inherited built form, and applied sustainable principles to refresh and reaffirm the building’s validity.

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on show Liveability remains at the heart of the design solution – natural light is sourced through the atrium, while appropriate orientations, large windowscapes and efficient floor plates add comfort to the spatial arrangement.

Meet the team Developer and owner: Growthpoint Properties Architects: AMA Architects Project managers: CPD Construction Projects & Developments Quantity surveyors: Davis Langdon Civil and structural engineers: PDNA Mechanical engineers: ACAS Principal contractor: Exabuild Electrical engineers: JSE Electrical Engineers Fire consultants: Specialised Fire Technology (Pty) Ltd Green/sustainable consultants: Aurecon Other consultants: Solutions for Elevators S4E

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development

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here’s a monster being conceived in Sandton on Katherine Street, just 500 metres from the Gautrain station. It will be one of the city’s, and indeed South Africa’s, biggest and most striking giants – and something its developer, Greg Sacks, believes will not only change the face of Sandton but also its culture.

Standing 11 storeys high and descending seven basement levels (six below, one above ground), this 67 000m² Goliath will host one of South Africa’s most successful and powerful corporates: Sasol.

Consolidating its 4 500-strong workforce scattered across 40 business units in 17 buildings around Johannesburg, this new corporate office is both a feat in commercial property development and design, and a boiling pot for greater efficiency and innovation from a forward-thinking South African brand.

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Alchemy CEO Greg Sacks

“It’s not a very tall building so there is no massive complexity that would come from that,” says Sacks, who is the CEO of the project’s development company, Alchemy. “It takes advantage of the land size and it offers really large floor plates, which was something the tenant wanted. They are looking for a building with a ‘high-performance environment’ where they can constantly change configurations; a building that will last them for the next few decades and will remain relevant. For these reasons the building will have access flooring throughout the office areas so it can accommodate high levels of churn and densification.”

While the design of the building is “absolutely stunning”, Sacks says it’s also efficient as a workplace.

“The vertical and horizontal people circulation is very strong,” he says. “From a vertical circulation point of view, you have multiple forms of transportation, such

development

Sasol’s Sandton alchemy The latest blue-chip company to root itself along Katherine Street in Sandton is multinational petrochemicals giant, Sasol.

We speak to its developer, Greg Sacks of Alchemy, about how he sees it changing the physical and cultural landscape of this very busy node

By David A Steynberg

as spiral and normal staircases, lifts and escalators, which make it very easy to get around the building.

From a horizontal point of view, you have very big floor plates, typically 6 500m², so you can keep as many people on a floor as possible. We also have multiple bridge links to link them to a common core, which will also aid in the efficiency of the building. It encourages the integration of the various business units and departments at Sasol.”

Working with a tenant such as Sasol, which has an incredibly high profile, is something Sacks says is highly energising. Sasol is, according to Sacks, driving the green initiative very strongly.

“We are working with our green-building consultants, and they’ve given us a list of the various credits that we need to achieve a five-star Green Star rating,” he says. “We are still going through the list SOUTH AFRICAN PROPERTY REVIEW

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development with the tenant to see which of the Green Star credits appeals most to them. So we are not necessarily going for the best bang for their buck; we are also looking for ones that are more environmentally friendly than others, and more exciting. The tenant is also heavily involved in LED technology and wants to include that technology throughout the building.

“I think this building will help solidify Sandton as the business capital of Johannesburg and South Africa. It shows progress, so it’s good to have it in a concentrated area. Look at Sandton and Katherine Street now and you’ll see a lot of cranes. Imagine driving up this road in three years’ time; imagine what it will look like. Some of the most beautiful, striking new buildings with huge tenants in them will stand here. It’s very inspirational.”

With a deadline for completion in the second half of 2016 (and excavations on the site due to be completed in December), the main contractor will have about two-and-a-half years to complete this megalithic structure, doing about 500m² of formwork per day. Sacks has full confidence in meeting this ambitious deadline, come rain or striking unions.

With Sandton having welcomed the new Alexander Forbes building, and with Ernst & Young and the new Barrow (at Katherine and West)

development taking shape, does this node have the road traffic and bulk infrastructure capacity for another massive corporate?

Sacks believes there is no place other than Sandton that could accommodate a development of this magnitude. “To do a development such as this one, we have our traffic engineers conduct a study that gets vetted by the council,” he says. “Sandton is the best place for a building like this one. Katherine Street has four lanes going up and four lanes going down, and apart from some road widening at Albertyn and a four-way intersection at Pybus, there is no other significant upgrade in the immediate area. In fact, the upgrade we have to do for the local council is the widening of Rivonia Road in Morningside. Sandton has got the ability to deal with this. Of all the office nodes, it is the one best-equipped to deal with large-scale developments. Katherine Street is a big, big road and it feeds directly onto the highway, Sandton Drive and Rivonia Road – those are all major routes.”

Alchemy has also been asked to upgrade the sewage lines up Katherine Street, while the power supply will come from Eskom.

“This area has the best infrastructure to handle a building of this nature. Public transport – especially

the Gautrain, which is 200% above projection in terms of passengers – is a runaway success. It will continue to grow. The development is only 500 metres from the Gautrain station. We hope this will help to create a pedestrian culture in Sandton (which, at the moment, is not exactly pedestrian-friendly). That’s why a development such as this must strive to make Sandton a better place for pedestrians.”

Sacks hopes the Sasol building will be the catalyst for a true high-street office development, flush with pedestrians, due to the fortune of Growthpoint owning the adjacent parcel of land.

“It’s two-thirds the size of Melrose Arch, right next to Sandton City and the Gautrain, and we believe it’s a great opportunity to integrate the development in the city by pedestrianising it,” he says. “I think we have to use this building to take advantage of the opportunities it presents rather than doing separate, stand-alone developments.

So Sandton is on track to have beautiful buildings – but it’s going to have a coldness to it if you can’t access them.

“People like to be outside,” says Sacks. “It’s not about building more shops – it’s about providing the amenities for people to sit outside on a bench and enjoy a sandwich.”

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feature

Harnessing the power of heritage Preserving our heritage sites and buildings is proving to be a challenge – but there’s a pot of gold waiting at the end of the rainbow for our colourful nation

By Candace King Photographs by James Ball

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he word “heritage” garners a vast array of meanings and symbolism for many in South Africa. To some, it means enjoying a typical South African braai on 24 September in celebration of our traditions; to others it is something more concrete – the bricks and mortar developed by our forefathers.

According to the UMass Amherst Center for Heritage and Society (CHS) of the University of Massachusetts, heritage is the full spectrum of our inherited traditions, monuments, objects and culture. The CHS website states that heritage is “both tangible and intangible, in the sense that ideas and memories – of songs, recipes, language, dances, and many other elements of who we are and how we identify ourselves – are just as important as historical buildings and archaeological sites.”

The website goes on to say that heritage has far-reaching positive implications. “It can be an element of far-sighted urban and regional planning. It can be the platform for political recognition, a medium for intercultural dialogue, a means of ethical reflection and the potential basis for local economic development. It is simultaneously local and particular, global and shared.”

Thus heritage is not only about our ancestors and the cultural constructs of modern communities; it’s also a crucial aspect of the present built environment and how society wishes to construct the future. The importance of preserving cultural and historical physical structures is gaining momentum in South Africa, something that has been taken to task by several heritage groups and property developers.

The rise of the conservation movement Concern over architectural heritage is not a new phenomenon. It was sparked decades ago in several cities in countries around the world. Published in January 2013, Miles Glendinning’s book The Conservation Movement – A History Of Architectural Preservation: Antiquity To Modernity discusses how in the last two centuries both modern Europe and America have experienced a forceful and overwhelming ideology – the conservation movement.

In the 1970s, the conservation or preservation movement rose to prominence in response to the 1960s transformation of the built environment. Many old charismatic buildings were torn down during the 1950s and 1960s, and were replaced with modern monolithic structures that lacked warmth and character.

The growing activist-like conservation movement elevated after the 1970s as several heritage-building communities, organisations and forums developed.

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These groups were driven by education and the need to bring the movement to the fore in society. South Africa mimicked these trends with the establishment of several heritage groups that promoted the adaptive reuse of buildings instead of their demolition and redevelopment.

Recognised for her involvement in architecture, author of Buildings Reborn Barbaralee Diamonstein-Spielvogel describes how adaptive reuse is precisely the recycling of buildings – how old structures can significantly be preserved and transformed into revived buildings that serve a purpose while still retaining their heritage.

She notes that economic, political, social and philosophical trends spurred on the rise of the conservation movement in the US. Glendinning’s book adds to this notion by stating that the close relationship between conservation and modern civilisation dramatically heightened in periods of war or social upheaval. Today, heritage buildings are challenged by international commercialism and globalisation.

As many would say that history repeats itself, firm believers of this famous phrase suggest that South Africa is currently experiencing a second conservation movement. One such devotee is James Ball, a heritage and history fanatic who in January 2013 founded the Heritage Portal, an online treasure trove of information that deals with South Africa’s heritage buildings and the preservation thereof. Ball notes that there appears to be a growing appreciation of old buildings in the country as well as a rise in adaptive reuse that’s partly driven by new technology and a weak economic climate.

Through the Heritage Portal, Ball aims to stimulate discussion and bring about education, as well as to create a marketing platform for the South African heritage sector that could significantly contribute to job creation and economic growth. Ball says that we are sitting on something big, a gold mine waiting to be tapped into. “We are talking tens of thousands of jobs for our country, a huge contribution to economic growth, a massive boost for tourism, and much more!”

The website acts as a three-tiered listed heritage directory, and includes heritage organisations, heritage venues or landmarks, and professionals who operate in the sector. It also aims to assist a spectrum of stakeholders to negotiate the tensions between preservation and development, and to help integrate heritage into the planning process. Above all, the portal serves as an active platform for communities to engage, giving them a strong voice in the heritage industry.

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Turbine Hall and South Boiler house are examples of restoration and heritage working hand in hand SOUTH AFRICAN PROPERTY REVIEW

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feature Let’s talk about the ‘H’ word I met Ball in Rivonia at the Liliesleaf Farm, once the headquarters of Umkhonto we Sizwe, the military wing of the ANC and the Congress Alliance, to discuss our heritage buildings and what they mean to us. After five minutes of conversation, it was clear that he means business when it comes to this issue.

After studying both undergrad and postgrad history, Ball opened himself up to the intriguing world of heritage in South Africa, which he describes as being full of life and potential. Despite this he points out that the South African heritage sector is plagued with problems. “There are so many great stories to be told but there are plenty of challenges facing the sector. If we can get stakeholders on the same page and push the education agenda, we have the chance build an industry.”

In terms of directory-listed heritage professionals alone, the UK boasts more than 3 200 companies dedicated to serving a well-developed heritage sector. Conversely, the South African heritage sector has a tiny number of professionals. “The supply chain to the heritage sector is fragmented and disorganised,” says Ball.

On a recent trip to Mpumalanga, he describes how during a short 10km drive on a single stretch of road, he passed a number of potentially iconic heritage sites that were lifeless – no tourists, no maintenance, no marketing or advertising. He suspects that this situation is repeated across the country and argues that entrepreneurs and property developers could play a significant role in bringing these sites to life. He mentions the Vredefort Dome, a World Heritage Site one hour out of Johannesburg that boasts huge value and potential but is facing stark challenges. The site lies across two provinces, the North West and the Free State, as well as five district municipalities that incorporate a large number of private landowners, businesspeople and environmentalists. This fragmentation is proving to be a challenge in terms of communication and varying opinion.

He also speaks about a special archaeological site in Mpumalanga that was once inhabited by the Bokoni, a pre-colonial society that controlled a large portion of the Mpumalanga escarpment and lasted for approximately 500 years.

The area is home to an abundance of well-preserved stone-walled homesteads with cattle tracks and terraces. This site could be a major economically sound tourist attraction.

“With a little bit of strategic thinking we can create something spectacular,” he says. “We have thousands of sites across the country that have been forgotten and are waiting for people to rediscover them. In the next decade, I believe we could be on the cusp of something big.”

Developers and heritage hand in hand Our cities are developing rapidly, spreading across the land in an eager fashion.

From a Johannesburg perspective, construction in the city takes the shape of an onion – rings of property development are expanding out and away from the innercity core into untouched areas. Although we need the new developments, such as the huge regional shopping centres and smart office buildings, we still have so much existing building stock that can be utilised. This includes heritage buildings that can harness great potential.

In his book on Johannesburg, A City Divided, the former chairman of the CBD association and manager of the Carlton Centre, Nigel Mandy, speaks about the mind and soul of a city, arguing that cities that look after their old buildings and public spaces will be able to attract hundreds of thousands of tourists as well as creative professionals who will live and work in the city. Ball adds that people want to visit, live and work in cities that have a well-developed soul. He wishes to see property developers and players in the commercial arena embrace the opportunities available in heritage property.

Over the past 10 years, says Ball, there have been prime examples of adaptive reuse projects on heritage buildings. In 2007, the historic Weltevreden Farmhouse in Roodepoort, which dates back to 1861 and is one of Johannesburg’s oldest buildings, was incorporated in the development of the Gables Office Estate.

Situated between the two double-storey buildings, the farm was restored and converted into office space. According to Ball, Turbine Hall and Constitution Hill are two more outstanding Gauteng-based examples.

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feature

THIS PAGE The Freedom Park Museum (above) and precinct (below) OPPOSITE, FROM TOP Liliesleaf Farm, the Vredefort Dome, Bokoni stone-walled homesteads, the Weltevreden Farmhouse in Roodepoort, Turbine Hall

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feature Recently, Pam Golding Properties concluded a transaction with Supello Investments for the purchase of the landmark Grocott’s Mail building in the heart of Grahamstown.

“The sale of this property was an emotional decision for the owner, Jeff Grocott, and the Grocott family, as it has been in the family since 1892 and owned by Jeff since 1981,” says Daphne Timm, Pam Golding Properties area principal in Grahamstown.

“Not surprisingly, this prime-located character building imbued with history sold within six weeks of being placed on the market. It is fitting that the new owners will be ensuring the preservation of this treasured town landmark.”

The ugly side of heritage Despite the various heritage-building preservation projects, many developers are wary about heritage, and some are blind to the opportunities the sector offers. “Many developers see heritage as a threat or a hassle, whether it’s a grave, an old farmhouse, an archaeological site or a historical building,” says Ball. “They see this as something that’s in their way.” He adds that if developers looked deeper, they could see the benefits of various heritage aspects of a site and think about how they can incorporate them into their plans.

However, there are always two sides to a coin. Property developers are battling to get their multimillion-rand heritage projects off the ground due to issues surrounding Provincial Heritage Resources Authority (PHRA) bodies, which are governed by the South African Heritage Resources Agency (SAHRA). These issues include snail-slow application processes and inefficient heritage authorities who don’t have the resources and skills required to deal with the applications. The process for approval should take between four and six weeks but is too often delayed while property developers sit on their hands with dormant projects.

“It’s common knowledge that applications can take several months,” says Dieter Brandt, a design architect and project leader who was involved in SAPOA’s Innovative Excellence Award-winning Freedom Park heritage project for the Office of Collaborative Architects. “Similarly, there is concern with the oversimplification of the 60-year rule and we are seeing this highlighted by the application process to the Gauteng PHRA (or PHRA-G). We have statutory requirements that we need to fulfil but we don’t necessarily have an evaluation committee that is sufficiently equipped to answer all the questions concerning heritage value.

“Heritage values tend to shift from context to context. What is of great heritage importance in a town such as Oxford, England does not necessarily apply to a modern city such as Johannesburg. Also, just because a structure is more than 60 years old does not mean it plays a positive role in its immediate environment. We need to understand the balance between new developments and heritage value, and that development can ultimately promote heritage preservation.”

He notes that the site where Freedom Park is situated originally belonged to Transnet and was sited adjacent to an old rail village that features structures of more than 60 years of age. There is a lively community there that in itself purports as valuable heritage for the precinct; but most of the community members are living in informal housing. It’s imperative, Brandt says, that this new national heritage monument of Freedom Park should be incorporated into the community and transformed into a thriving heritage vicinity where the residents can live in better conditions.

“We have great legislation, such as the National Heritage Resources Act (NHRA), but implementation is always difficult,” explains Brendan Hart, the principal architect and heritage practitioner at Mayat Hart Architects and Heritage Consultants. “We think that PHRA bodies, like most government institutions, are under-resourced and overloaded with too much work.”

Section 34 of the NHRA states that no person may alter or demolish any structure or part of a structure that is older than 60 years without a permit issued by a PHRA body.

“You need to comply with all PHRA requirements as set out in the application forms,” says Hart. “You need to understand the history of the building and its cultural significance, which may be architectural, cultural, historical or scientific. You also need to understand what impact the proposed work will have on the building and its heritage value.”

According to Ball, many people are not aware of the legal implications. “Overall awareness of the legislative framework is low and a large amount of work happens outside the official system,” he says.

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feature Apart from legal matters, there’s also a vicious circle swirling around the heritage sector. Property developers complain about “irritating preservationists”; heritage activists complain about the “greedy developers” … and then both parties complain about “inefficient and lazy PHRA officials”. And let’s not forget the public and the media adding fuel to the fire. “We’re all part of the same sector and need to stop lashing out at each other,” says Ball.

Solving the heritage Bermuda triangle In order for the heritage sector to flourish, all parties need to join forces and align themselves in a common goal instead of drowning themselves in argument and losing out on what’s important. Ball notes that the government feels strongly about our heritage but there are more pressing priorities that it needs to address, such as high unemployment, poor education and healthcare, poverty and crime, and HIV/Aids. He adds that the heritage community is not putting forward a strong enough argument: they need to address the heritage topic more firmly with government. “The heritage community can put forward a stronger argument by saying that, if government were to invest in heritage buildings, jobs could be created, lives could be improved, education could be uplifted, and unemployment could be reduced,” he says. “Heritage buildings can be used as clinics and schools; I feel that the private sector can also drive this home to government.”

Brandt suggests that SAPOA, as a lobby group, could tackle government on this issue, and as a property organisation could fund a professional body that does the job and operates within the law of the NHRA. “We don’t mind heritage evaluation – we encourage it. But what we need is more efficiency all around,” he says.

There is some good news in terms of establishing a professional body in Gauteng. “There is a well established group in the Western Cape known as the Association of Professional Heritage Practitioners (APHP),” says Ball. “A number of well-known Gauteng-based practitioners are trying to establish an APHP presence here and beyond. But this will take time. And the system needs to be jacked up. We need permits, declarations and HIAs to be processed in good time; we need functioning PHRAs for the big vision to come to fruition.”

“The new SAHRIS online application system developed by SAHRA is being rolled out,” says Hart. “This should hopefully start addressing the problems.”

Going forward, Ball believes developers should be educated and ask questions, heritage preservationists should be vigilant, and government should alleviate administrative problems and try to streamline the processes.

All parties need to know the rules of the heritage game. We need some big thinking and a lot of patience to build a powerful heritage industry.

ABOVE The Grocott family’s building sold within six weeks of going onto the market LEFT AND FAR LEFT Designed by architect Sir Herbert Baker, Bedford Court was home to mining magnate Sir George Farrar and his family.

The foundation stone was laid

by Lord Milner in 1903. Today it is the soul of St Andrew’s School for Girls in Bedfordview

TIPS FOR PROPERTY DEVELOPERS l Architects are required by law and their professional status to comply with the NHRA. l If something is formally protected, you know that you are limited in what you can and can’t do to it in terms of alterations/additions. l Just because something is more than 60 years old does not mean that it is of heritage significance. But you still need to make the necessary application to the relevant heritage-resources authority. l You should take into account the need for heritage approval in the development-planning process. l Architectural designs and development planning need to be sensitive to heritage values and significance. l It is best to know where you stand when buying a property – call someone who can advise you if you are uncertain. l It is also advisable to get advice from a heritage consultant/practitioner or heritage architect at the beginning of development planning where there is (or you suspect there may be) a heritage issue so that you can avoid any uncertainty.

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Women in Commercial Architecture

www.paragon.co.za

women in property

A law unto herself Cliffe Dekker Hofmeyr is the largest property practice in the country and comprises almost every aspect of property development. It’s a company that invests in the future of real estate and Lucia Erasmus brings her extensive knowledge and experience to this table.

After studying at prestigious tertiary institutions, Erasmus began her career as a candidate attorney at Van Wyk De Vries. She later practised as a conveyancer at a small firm focusing on residential conveyancing before joining Cliffe Dekker and Todd (now Cliffe Dekker Hofmeyr).

She furthered her studies by completing a Master’s in Property Law in order to assist with complex property transactions. “Every property development is different and clients have different needs and demands,” she says. “The variety of instructions I receive keeps my work interesting.”

Her approach to being a woman in the male-dominated real-estate industry is pragmatic. “My approach has always been that I am a lawyer in the property industry and that I can do what any other lawyer can do, regardless of the fact that I’m a woman,” she says. “The property industry is still dominated by males but this is changing. It is sometimes necessary to work a bit harder or walk the extra mile to prove yourself as a female, but once you have done that, there are plenty of opportunities.”

She believes that property is creative and dynamic, and gained her insight and experience in understanding the needs of the property developer by participating in town planning or design meetings, where the town planner, architect and other professionals contribute

Lucia Erasmus is the director of Cliffe Dekker Hofmeyr’s Real Estate practice and has carved a solid reputation for herself as a woman in commercial property law

their skills and share their views. “There are many different aspects of property that a woman can become involved with,” she says. “I think that women should focus on their strengths, be it creativity, management skills or, sometimes, the ability to listen and interpret a client’s needs.”

T: +27 (0)11 562 1082 E: lucia.erasmus@dlacdh.com W: Cliffedekkerhofmeyr.com

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women in property

Breaking the glass ceiling As women in property climb the corporate ladder, the industry evolves with every step taken

By Candace King

Popularised during the 1980s, the invisible yet unbreakable ‘glass ceiling’ prevented minorities and women from ascending the corporate ladder for many years. Comparing the achievements of modern society with the societies of yesteryear, it’s truly amazing to see how far we have come – especially the women

S

purred on by the activists of the past, we live in an age that’s all about rights and individuality. With advanced technology and popularity of social media, many voices are just a click or a touch away.

Race, sexual orientation, gender and age have long been targets of oppression – and while this oppression is still seen today, the world has certainly made progress in the equality arena.

Looking at the property industry, it’s clear that the sector has evolved in a positive and enriching manner. It has become far more open and equal in terms of a maleto-female ratio as well as a white-to-non-white ratio.

Women of all races especially are making waves in the industry as they climb the property corporate ladder.

“Women have now stepped into senior key positions, and are helping to shape the future of the industry” Sanett Uys

Women in property What was traditionally a white, male-dominated industry is now a vibrant, thriving, revolutionised sector with more intelligent, highranking women of all colours and creeds. Women in the property industry are the movers and shakers of today – making crucial decisions, heading up boards and companies, breaking ground and stepping into CEO shoes.

“The industry has seen a significant improvement over the last decade, with more women completing tertiary-level studies in property-related courses,” explains Genevieve Naidoo, head of real estate project management SA & RoA at Standard Bank Property Finance.

“The last few years have seen huge growth in the number of women entering this industry.

“We are no longer seen as a maledominated industry, and I’m glad to be one of the first women to break into it” Genevieve Naidoo

“I believe there have always been a lot of women operating in the industry,” says Sanett Uys, the executive for research, consultancy and valuations at JHI Properties. “The main difference is that these women have now stepped into senior key positions, and are helping to shape the future of the industry.”

From starting out as a bank clerk at Standard Bank, Uys has worked her way up and is currently one of the most influential women in the property industry. She has worked for several large firms, including Rode and Associates, Colliers International and Broll Property Group, fulfilling the roles of editor, director, and group research and marketing manager.

We are no longer seen as a maledominated industry, and I’m glad to be one of the first women to break into it. It’s a huge turnaround if you consider the number of females that were in this industry a decade ago. It means the doors have opened for future female property players. It is up to us to excel in our chosen field. Historically, there were no females at board/ executive level in the industry.”

“I have always believed that if you work hard and are willing to improve your qualifications, there is a career in property for you as a woman,” says Uys. “Now we need to step up and move into decisionand deal-making roles. Once more women move into this part of the industry, there will be an even bigger evolution.

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women in property “I think the ‘playing fields’ are more level and the men in the industry know that we as women mean business” Thea Bezuidenhout

Women bring a different dimension to the industry, and I believe that more and more women have realised that they need to be true to themselves and tackle business based on their set of values and beliefs. We don’t have to ‘become’ men to achieve the right results – by being true to ourselves we can achieve the same results, and more.”

So is the industry still a playground for white males?

“With the likes of Marna van der Walt, Nonku Ntshona, Amelia Beattie, Bronwyn Corbett and Nomzamo Radebe, who have made incredible contributions to the industry, I would certainly not like to think so,” says Naidoo.

“When I attended my first SAPOA conference five years ago, the population was fairly dominated by white males,” says Thea Bezuidenhout, director of support services at Excellerate Property Services Group and a managing director at JHI residential. “But this year

“I’ve been fortunate to work with mentors, colleagues and bosses that have been truly ‘gender-blind’ and focused on merit” Kate Wolfaardt

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was different. It was gratifying to see the transformation in the group of people who attended.”

She adds that women in general have empathy and the ability to be good leaders due to the more inclusive and consultative leadership styles they employ.

“Over the past five years, the demographics in this industry has changed, with women and previously disadvantaged individuals becoming more prominent,” Bezuidenhout says.

“I think the ‘playing fields’ are more level and the men in the industry know that we as women mean business. With this change, I think the role of some white males – especially those with years of experience – may change to those of mentors and facilitators.”

Having said that, I still believe there is work to be done here to achieve true representation.

Throughout my parking career, I’ve been fortunate to work with mentors, colleagues and bosses who have been truly ‘genderblind’ and focused on merit.

I think I also came into the industry with a tough skin for gender issues from my early career years in civil engineering!”

Kim Faclier, the managing director for property in Africa at GoIndustry DoveBid SA feels it’s not really about gender but rather about age and race. “The industry has been dominated by white traders. This isn’t a racial comment but a factual one. There is also concern that the average age is too high.

“The industry has become overlegislated, which creates barriers for people who want to enter it”

Kim Faclier

“It was more challenging when I started in the industry more than a decade ago,” says Naidoo. “I was very fortunate to have had incredible support structures and brilliant mentors, TC Chetty in particular. It was encouraging to have had this incredibly supportive male mentor.”

According to Kate Wolfaardt, a managing director at Interpark South Africa, “A great deal of transformation has been achieved. This is reinforced for me when I travel to parking shows and exhibitions, and visit colleagues in similar industries internationally. The lack of diversity, particularly in Europe, becomes surprisingly apparent.

The industry needs to attract younger, qualified people, and should be represented more from a racial perspective. A big challenge is for the industry to attract youth,” she says.

Education is key Apart from women, a major key to having more young professionals in the property industry is education and training. “The industry has become over-legislated, which creates barriers for people who want to enter it,” says Faclier. But several property companies are giving back to society and assisting with uplifting young scholars.

Uys is the national chair of the Women’s Property Network (WPN),

women in property Gaye Corbett is currently involved in mentoring new retail projects and the expansion of the Youth For Human Rights programme Gaye Corbett

a forum for women in a predominantly male industry to join together to exchange information, develop and cultivate business contacts and enhance professional success. Established in early 2000, the WPN has chapters in Johannesburg, Cape Town and Durban, with more than 300 members countrywide.

“As the national chair of the WPN, I am very involved with the work we do,” says Uys. “We have an education trust and award bursaries to ladies working in the industry and young, promising female students at tertiary education institutions that offer courses in property studies.”

“Knowledge and education are always key to success in any industry,” says Faclier. “This remains a very important issue.

Seeff Properties have granted bursaries on every level to ensure that this happens, but both parastatal bodies governing the industry at the moment are under administration and have failed to deliver as a result of corruption and fraud.”

Bezuidenhout says the industry has much to contribute because the network of people and companies is enormous.

At JHI residential property management, one of the services offered is management of student accommodation.

“I am constantly in contact with students, many of whom come from rural areas,” she says.

“These students often have difficulty adapting to city life, so I have decided to mentor a few female students – and what a privilege this is. There is huge potential out there, and if all women leaders and managers can dedicate time to coach five to 10 female students, the world can be a better place.”

Interpark has a long track record of engaging in socialresponsibility programmes, which Wolfaardt believes is essential to the DNA and emotional wellbeing of the business and its people. “Our main partner is Ikamva Labantu, which has a 40-year history of community-driven projects focused on the most vulnerable of our population – the youth and the elderly,” she says.

Tintswalo Property Group founder and chief financial officer Gaye Corbett and her daughter, Tintswalo’s CEO Lisa Goosen, are prime examples of how women are making a considerable impact

on the local business landscape with outreach projects. Corbett is currently involved in mentoring new retail projects and the expansion of the Youth For Human Rights programme in South and East African countries, as well as drugawareness programmes within South Africa in order to ensure a safer country for her grandchildren.

Corbett has worked on charitable projects for many years, but the two closest to her heart are Youth For Human Rights and The Way To Happiness projects. “My husband and I happened upon these projects many years ago while travelling through other countries in Africa, handing out books to schoolchildren,” she says.

“We are still drawn to them because their objective is to create awareness and understanding among the youth regarding their human rights. Many young people do not have a moral code upon which to base their lives; through these initiatives, we hope to help prevent some of the human rights atrocities that plague young adults of today.”

Females thinking forward It’s evident that the future looks bright for women in our property industry as well as for the youth of South Africa as the barriers are starting to come down.

Lisa Goosen is a prime example of how women are making a considerable impact on the local business landscape Lisa Goosen

“As far as I’m concerned, no matter what business you’re in, if you operate with integrity, honesty and transparency, have the education, track record and knowledge, and create a permanent foundation of trust, gender doesn’t even come into play,” says Faclier.

Naidoo says she would like to see the industry with a higher ratio of females, particularly at board and executive levels. “We need to lay down the foundation for young South African women to feel comfortable to enter this industry, with the knowledge that there were already women here who were highly successful at what they did,” she says.

“No-one can make you feel inferior if you are well prepared and know what you are talking about,” says Uys. “I have found that being honest with internal and external clients is the key.

Ask questions if you don’t understand something, and work hard.”

Bezuidenhout says she would like to see a more diverse group of people in the industry – she’d like an industry that’s innovative and makes use of technology to enhance its products and services, and which focuses more on green initiatives, alternative building methods and the development of people.

“In 10 years’ time I’d like this to be a buoyant, successful industry with a strong ethic of integrity, governance and non-discrimination,” says Wolfaardt. “There is enormous power in business through harnessing the full potential of available people, resources and talents. This is particularly true in South Africa, where our diversity creates a stimulating and exciting place to do business, enhancing our international competitiveness. With the landscape evolving as it is, I see successful women helping to break the barriers that hold back other women in the workplace.”

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Girl Power SAPOA would like to thank Century Developments for hosting the Women in Property photoshoot at Waterfall Estate

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Lisa de Boer Acucap Management Services (Pty) Ltd

Lucille Louw Atterbury Asset Management

Lisa de Boer, director at Acucap Management Services (Pty) Ltd (a division of Acucap Properties Limited) says it was being forced to get a weekend job at the age of 17 by her parents that resulted in a love affair with the property sector.

While finishing matric and studying for a degree in commercial management, Lisa worked as a customercare liaison officer at Somerset Mall. As soon as she finished studying, she knew that the dynamic retail arena was the platform she wanted to be a part of, and she joined the Somerset Mall marketing team as public relations officer. However, she quickly realised that her sights were set on running shopping centres, not marketing them. What followed was a rapid succession through the ranks, from personal assistant to leasing administrator and trainee centre manager.

Lisa then left Somerset Mall to join Cape Gate as the assistant general manager, before moving over to Paarl Mall as the general manager. In 2009, she joined the Acucap team, first as regional retail property manager and thereafter as regional general manager for Acucap’s retail and commercial properties in the Western Cape. In 2011, at the age of 32, she was made a director at the management company, which manages the Acucap and Sycom retail and commercial assets valued at more than R13-billion.

Being part of a company that believes success and its rewards should be founded on initiative and expertise rather than gender has been empowering, says De Boer, stating that Acucap has encouraged a culture where women are supported and encouraged to progress in their careers. “It’s refreshing to be part of a company that recognises that woman bring empathy, creativity as well as determination and tenacity to the party, as evidenced by the fact that each of our Western Cape centres, as well as our commercial portfolio, are all managed by women,” she says.

De Boer states that her ongoing goal is to be a positive role model and foster a proactive environment that focuses on skills transfer and assisting women to excel in this challenging and evolving sector of the South African economy.

Lucille Louw, managing director at Atterbury Asset Managers (AAM) never planned on being in the property industry. She joined Atterbury in 2000 as a temporary sales broker but was asked to join the company permanently before the end of that year.

“I was young and inexperienced but was still afforded the opportunity to become part of the Atterbury family.”

Joining Atterbury in its infancy gave her the advantage of gaining experience in not only property and asset management, but also project development.

Participating in the purchase of land, obtaining the rights, managing the contractors, liaising with the new tenants, understanding and building their specification requirements continue to be part of invaluable experience in managing the portfolios.

Now, 13 years later, Lucille heads up Atterbury’s local and international asset management divisions.

The South African assets of R17-billion include those of Atterbury, Abacus and Wingspan. The AAM team is also responsible for the R2-billion Atterbury Africa Fund, a partnership with Hyprop. The fund has investments in Ghana, Zambia and Mozambique. Lucille’s team also manages assets in Mauritius to the value of R2-billion.

A soon-to-be-completed mall in Namibia will form part of the Atterbury Africa Fund portfolio. One of the largest buildings developed by Atterbury, the Mall of Africa, and expansion in Europe are also on the cards.

Atterbury’s philosophy is to invest in its people and create an environment for success, regardless of gender, age or education. Lucille believes the company’s share scheme for employees is one of the reasons people take pride in their company and respect the innovative nature of Atterbury. She ascribes her success to her mentor of 13 years, group CEO Louis van der Watt.

“I have been incredibly fortunate in that I’ve learnt the ropes by watching and working closely with Louis,” she says. “Being a female in the industry has never affected me, and I believe this is because I work for a company that supports its people, women in particular.”

+27 (0)21 447 2010 / +27 (0)83 274 0464 lisa@acucap.co.za www.acucap.co.za

+27 (0)11 706 1176 / +27 (0)12 471 1600 lucille@atterbury.co.za www.atterbury.co.za

women in property

Vuyokazi Njongwe Billion Group

Bronwyn Corbett Delta Property Fund

Lynette Finlay Finlay and Associates

Vuyokazi, or Vuyo, is an admitted attorney and notary public in the High Court of South Africa. She holds a BJuris and LLB Honours degree from the University of the Western Cape and H.Dip Tax from Wits University.

Following her articles, Vuyo practised with Sonnenberg Hoffmann Galombik (now ENS Incorporated) as an attorney specialising in property, insurance litigation, commercial litigation and general commercial matters.

She subsequently left the legal practice for FNB Corporate where she gained further in-depth experience in international trade financing, debt restructuring and the tailoring of various finance products.

It was during this stage that Vuyo was introduced to property finance as well as business development and client-portfolio management, before joining Billion Group seven years ago as corporate affairs director. She oversees various areas of the business, including the legal and human resources departments.

With her considerable experience in property developments, she is responsible for planning and execution of new developments from implementation (land acquisition, rezoning, environmental processes, etc.) through to construction.

“Although there has been some positive change and more females are making inroads into the sector, I would love to see more women in the deal-making space,” Vuyo says. “There is also definite scope for corporates to include more women in senior management and executive positions. Women bring diversity and a fresh approach to doing business. One of the attractions of working for Billion Group is that they are industry leaders and very forward-thinking in this regard.

“There are some exciting prospects ahead as the company is actively involved in development opportunities in Africa’s high-growth economies.

This in itself offers unique career opportunities and exceptional returns for the business. There is nothing more rewarding than seeing a development come off the ground, and the finished product.”

Bronwyn was born and raised in KwaZulu-Natal, and articled at BDO, the fifth-largest accountancy network in the world, while simultaneously completing her BCom Honours degree at the then University of Natal (currently the University of KwaZulu-Natal). In 2004, on completion of her CA(SA) qualification, she relocated to Johannesburg where she joined Universal Property Professionals in 2005 as a financial manager, which was the start of her career in the commercial property sector.

Bronwyn was appointed chief financial officer at Motseng Investment Holdings (the largest 100% black-owned property management company in South Africa) in 2009, where she grew the assets under management to R1-billion in four years. This was followed by an IPO on the Johannesburg Stock Exchange, with the listing of Delta Property Fund on the main board where Bronwyn played an integral part in the oversubscribed capital raising.

“It’s safe to say that this was the highlight of my career thus far,” she says. “I believe we have established ourselves as sector specialists with a solid platform to grow from.” Following on the success of the IPO, Bronwyn and her team continued to deliver on the high-growth mandate from unit holders, and doubled the number of assets under management within six months of listing.

Known for her tough negotiation skills and boundless energy, Bronwyn has made her mark in a sector generally dominated by men. She believes women bring a unique dimension and passion to the business. “Only a woman can get away with shedding a tear over a lost asset,” she says. “Our properties are like our children – we care for them and nurture them, and that’s what makes women exceptional asset managers.”

Lynette Finlay, a CA, is the CEO of Finlay and Associates, Retail Property Specialists. The company’s overriding philosophy is “Retail is detail” – and shopping centres provide high level growth and returns because the management team “sweats the small stuff”.

The team manages retail properties across four provinces with offices in Johannesburg and Polokwane.

There are 130 staff members specialising in management of outlying shopping centres. The company is also involved in leasing of retail developments as part of the development team and conducts due diligence for the listed sector. “Finlay’s dynamic team has grown steadily through recognising skills and talents,” she says. “What is particularly encouraging is the potential shown by the younger university graduates we bring on board, both in our internship programme and those already aligned to a discipline within property management. These youngsters have a new found energy, and a different way of viewing the landscape.”

This year marks the 30-year milestone for Finlay.

All businesses are governed by economic cycles but most businesses can change direction to deal with this. Property development, however, has an 18-month to five-year lead time – in this time, potential tenants decide to expand or contract, banks decide to lend or turn off the tap, lending rates go up and down, construction prices go up. Flexibility and resilience are key. Finlay believes in rural retail, which has shown exceptional growth in recent years. Anyone taking a trip through Limpopo would be astounded by the burgeoning population and the need for retail centres.

Lynette is a non-executive director of Growthpoint Properties and was the first woman president of SAPOA. Awards include the Women’s Property Network’s “Five Star Woman” award, the Inyathelo award for women in philanthropy and the CEO merit award for most influential women in business and government. She has served as chairman of the Rosebank Business Management District; a board member of Services SETA; executive vice chairman in formulating the Property Charter; and a founding member of Women’s Property Network.

+27 (0)11 533 5115 vuyokazi@billiongroup.co.za www.billiongroup.co.za

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

+27 (0)11 807 4724 lynette@finlay.co.za www.finlay.co.za SOUTH AFRICAN PROPERTY REVIEW

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Cheryl Ankrah-Newton Liberty Properties

Faieda Jacobs Old Mutual Property (Pty) Ltd

As a female property professional who has climbed the ranks in a largely male-dominated industry, Cheryl happily reports there are finally many more opportunities for women in the industry. Particularly since joining Liberty Properties, she has seen many more female professionals announcing their presence.

The company has been a vital part of the South African real-estate arena for more than four decades and pioneered the concept of mega-malls in this country.

Cheryl’s role in business development includes growing the company’s income base by attracting new and international tenants to the existing Liberty portfolio, as well as seeking out opportunities to grow its leasing business in key nodes across Africa.

Cheryl is a member of the Royal Institution of Chartered Surveyors and achieved a BSc with Honours in Urban Estate Management in London, having worked in development, investment and management for some of the largest landlords in the UK. At Liberty Properties, she is leveraging her international connections to draw awareness to South Africa as a retail investment opportunity.

She has been instrumental in bringing some exciting brands to Sandton City, with more to look forward to.

She is also influential in the execution of new tenantmix strategies for Liberty’s prestigious retail portfolio.

Cheryl is inspired by Liberty Properties’ vision to be the leading property brand in Africa, and the number of current developments, both local and in east, west and southern Africa, give realisation to this vision.

“It is very exciting to be working with the right team in the right locations and with the right product,” she says. “It won’t be long before I can claim a list of new achievements with Liberty Properties here and across the continent!”

Faieda Jacobs is a born and bred Capetonian, and law graduate from UCT. She joined Old Mutual straight out of university, drafting pension-fund rules and regulations.

An opportunity arose to join Old Mutual Property in 1984, kicking off a fulfilling career in property, a dynamic and exciting environment where no two days are the same. Faieda’s journey in the property industry has spanned all facets of the business, from valuations to property management, facilities management and asset management. She spent a few years working with Drake & Scull and later with Allan Gray, where she managed the office and industrial portfolios for Grayprop, which later became Fountainhead.

“When I entered the industry, there were very few women and I was often the only woman of colour in the room,” she says when asked about challenges for women in the property industry. “That has changed in recent years and it has become more balanced.

I think if you’re competent and deliver, that should open up opportunities, regardless of gender.”

Faieda says Old Mutual Property is founded on three principles. “Firstly, it’s about the people who work at Old Mutual Property,” she says. “We pride ourselves on being property professionals who are highly experienced in our fields, and whose main focus is to delight our investors, tenants, customers and shoppers.

Secondly, it’s about our pedigree, track record and performance. Old Mutual Property has a track record spanning more than 45 years, and has developed and managed several of the most prestigious buildings in and outside of South Africa – Gateway Theatre of Shopping, Cavendish Square, Menlyn Park. Finally, the company is a founding member of the Green Building Council of South Africa, demonstrating our aim to positively contribute to our planet with green buildings that ensure an environmentally sustainable future.”

Old Mutual Property is currently developing Portside, which is an iconic office building in Cape Town. It will be the tallest building in the city at 33 storeys and it has recently been awarded a 5-star Green Star rating for Office Design by the Green Building Council SA – the first tall building in South Africa to achieve this accolade.

+27 (0)11 408 5151 / +27 (0)79 229 5127 cheryl.ankrah@liberty.co.za www.libertyproperties.co.za

+27 (0)21 530 4500 fjacobs@oldmutualproperty.com www.oldmutualproperty.com

women in property

Broll celebrates women in business Broll Property Group started in 1974 and has grown to offer a comprehensive and holistic property service solution to both landlords and tenants. In conjunction with CBRE, it is the leading property services company in sub-Saharan Africa. It’s a company built on integrity, values, respect, service and excellence. With this in mind, this month Broll is applauding women

1 Heidi Rix, divisional director of asset management and director of Broll Indian Ocean, entered the commercial environment after receiving her BCom LLB degrees and completing her legal articles, and found a challenging, entrepreneurial environment that offered varied personal and careergrowth opportunities. “My career has taken me through the financial and property industries for which I am grateful, as I have had the privilege of being mentored by wellrespected and leading business and property leaders.” Heidi learnt early on that, regardless of gender, one must “earn your stripes”, and that it’s these stripes that are respected and appreciated. She believes that the SA property and commercial industry accepts, encourages and rewards performance and professionalism, irrespective of gender.

Lizelle Cloete, director of retail projects and consultancy division, was a high-school teacher before pursuing her current passion of property. Within her career she has grown in a number of positions, and one of her biggest achievements was securing the Mall of Africa leasing mandate, “an opportunity of a lifetime”. When it comes to being a woman in the property industry, Lizelle says you cannot expect to be treated differently.

“I strongly believe in equal opportunities

2 and equal treatment. I believe women have a strong work ethic, are proud of their work, are perfectionists and will always deliver the goods, no matter the circumstances.”

Fran Teagle is Broll’s director of commercial brokering. Her career began in residential real estate, but after studying advanced property practice, commercial property became her calling. There have been many milestones in Fran’s career and she thrives on being a part of changing the skyline of Sandton, having facilitated new developments for the Johannesburg Stock Exchange, Deneys Reitz (Norton Rose), and others. When it comes to being a woman in

this industry, it’s all about balance, she says.

“I think women have a hard job in business because they have to balance the demands of children and family with the demands of the workplace. In addition we have to be very knowledgeable and professional to have the edge in a predominantly male industry.”

Vuyokazi Lugqola, portfolio executive in the property management division, started her career by responding to a SAPOA advert, which offered bursaries to people with a PDI background interested in studying commercial property. And the rest, as they say, is history. Vuyokazi believes that the basis of all achievements lies in teamwork.

“I particularly love sharing knowledge with upcoming professionals on a volunteer basis, as part of our mentorship programme.”

Vuyokazi commends Broll, because “women empowerment seems to be intertwined within business strategies. However, as a woman, you have to take the initiative in whatever strengthens your performance.

Nobody is going to spell it out for you, or give it to you on a silver platter just because you are a woman.”

Thanks to its people and their teamwork, Broll offers comprehensive and holistic property services solution to maximise your property’s potential.

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1 Heidi Rix, divisional director of asset management, director of Broll Indian Ocean 2 Lizelle Cloete, director of retail projects and consultancy division 3 Fran Teagle, director of commercial brokering 4 Vuyokazi Lugqola, portfolio executive in the property management division

+27 (0)861 027 655, www.broll.co.za SOUTH AFRICAN PROPERTY REVIEW

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Nomzamo Radebe Pareto Limited

Jackie van Niekerk Pivotal Fund

Nomzamo Radebe has been in the property industry for seven years, and is currently the chief investment officer and executive director at Pareto Limited. She is in charge of asset management of the existing bluechip retail property portfolio of Pareto, valued at about R16,5-billion. “I love operating in the commercial property sector as it is a dynamic, small industry, with very knowledgeable professionals operating within it,” she says. “I particularly enjoy the fact that investing in property requires one to constantly think in the long term.”

The property industry is still quite maledominated. Seemingly the women in the property industry are required prove to their male counterparts that they have the appropriate technical skills and property sector expertise to operate in their respective roles to gain acceptance of their male colleagues.

“While this may seem like a challenge, I’ve taken it as an opportunity to grow into myself and always put my best foot forward,” says Nomzamo. “I’m fortunate that I work within a company that is very progressive and fully committed to transforming the property industry. Noting that the property industry is male dominated, this has enabled me to shine and be the beautiful ‘rose among the thorns’.”

Talking about achievements, Nomzamo proudly says, “It was a memorable and rewarding moment in my career when I was awarded as a Five Star Woman in Property in 2009 by the Women’s Property Network.

I started off as a financial director at Pareto and over time I have changed roles to become a chief investment officer, heading up the asset management unit. This enabled me to merge my finance background with the property fundamentals. This has been possible at Pareto because of the company’s commitment to ensuring that all individuals reach their full potential as professionals.”

Jackie van Niekerk studied BCom Accounting at the University of Pretoria. Since then she gained experience in the property industry in an array of positions. In 2009 she joined Pivotal Fund as an asset manager and in July 2013 she was elected to the board and also appointed as managing director.

When asked about her career in the property industry, Jackie says, “I enjoy the dynamic market and being part of creating a long-term legacy.”

When it comes to the challenges and opportunities of being a woman in the property industry, Jackie strongly believes that “We as women acknowledge it is still an industry mainly dominated by men, but we can achieve goals by not wanting to be men but maintaining who we are. I strongly feel women add a different dynamic to the industry, especially when it comes to flair in the retail environment.”

Pivotal Fund is an investment fund with a strong emphasis on development. The fund was established

by Abland and has actively been trading for the past five years as an unlisted fund with an over-the-counter trading platform facilitated by PSG Konsult. The targeted listing date is 2017/2018.

The core of Pivotal’s business principles is to create sustainable capital growth by implementing an investment strategy focused on growth through development projects, acquisitions, a vesting structure and strategic partnerships with Abland, Standard Bank and other development partners.

Pivotal, as co-owner, is currently developing Alice Lane, which is a 70 000m² prime office development in the Sandton CBD, which has recently been awarded a 4-Star Green Star rating for office design by the Green Building Council.

“What sets Pivotal apart,” says Jackie, “is our focus on maintaining the quality of our assets by entrenching our management expertise with vigour and keeping to our philosophy of attention to detail.”

+27 (0)11 258 6800 nomzamo.radebe@pareto.co.za www.pareto.co.za

+27 (0)11 510 9701 / +27 (0)73 069 8424 jackie.vannniekerk@pivotalfund.co.za www.pivotalfund.co.za

women in property

Dr Anna Mokgokong Rebosis Property Fund Ltd

Janys Finn Rebosis Property Fund Ltd

Marelise de Lange Vunani Property Investment Fund

Dr Anna Mokgokong is a co-founder and executive chair of Community Investment Holdings, a black-owned investment group with interests in healthcare, logistics, energy, telecommunications, mining and infrastructure.

The group was built from a zero base in 1995 to its current turnover of more than US$2-billion per year.

Anna chairs three JSE-listed companies, including Rebosis Property Fund. She feels strongly about empowerment, especially of women. “Women have previously been marginalised in all aspects of the mainstream economy of our country, including property development and ownership of land,” she says.

“Rebosis offers senior positions for women, and I’m delighted to say our company has women at the helm of leadership and ownership, as well as professionals.

These are not token positions but meaningful ones.”

Anna was born in Soweto and grew up in Swaziland.

She completed a BSc at the University of Botswana in 1979, followed by an MBChB at the Medical University of Southern Africa (Medunsa) in 1984. She was voted South Africa’s Businesswoman of the Year in 1999 and in 2009 was awarded an honorary doctorate in commerce by the University of South Africa in recognition of her outstanding entrepreneurial leadership. She is one of the 350 recipients of the Star Group Leading Women Entrepreneurs of the World, a forum that honours women worldwide.

In 2004, Anna was appointed by former president Thabo Mbeki to serve as deputy chair of the Independent Commission for the Remuneration of Public Office Bearers for a five-year term. She was also part of the task team set up to develop a health charter.

Between 2000 and 2004, she was a member of the council of Unisa, becoming its chair between January 2003 and December 2004. A former member of the council of the University of Pretoria, she currently serves as a member of the Economic and Management Sciences Advisory Committee.

Since 2010, she has been a member of the Bill Clinton Global Initiative, an initiative that convenes leaders across the globe in search of innovative solutions to the world’s most pressing challenges.

Janys is a chartered accountant with experience in the listed property sector. She completed her articles at Grant Thornton and was appointed as the first female partner of the Johannesburg practice in 1992.

In 2005 Janys joined Metboard Properties Ltd as chief financial officer until its purchase by Growthpoint Properties in 2006. She then joined Redefine Properties Ltd, initially as financial director of Madison Property Fund Managers Ltd and later as financial director of Redefine Properties Ltd on its merger with Madison in 2009. In 2010, she was appointed financial director of Rebosis Property Fund Ltd in the lead-up to its listing on 17 May 2011.

“I really enjoy the dynamic of high-growth, acquisitive companies, where one is exposed to driven, entrepreneurial teams on the one side, and the balance offered by corporatisation and formal structure on the other,” she says.

Janys cites the merger of Madison Property Fund Managers Ltd, Apexhi Properties Ltd and Redefine Income Fund Ltd as one of the most exciting times in her career. “This was the merging of three JSE-listed property companies into what is today the secondlargest listed property company on the exchange.”

A strong advocate for work-life balance, Janys introduced flexi hours, especially for working mothers, during her time as a partner at Grant Thornton.

“I definitely think career-driven working mothers have a much tougher time in the corporate world,” she says. “Those companies that can appreciate and accommodate these pressures through flexible working arrangements often attract and retain the best talent.”

Janys played an integral part in the JSE listing of Rebosis Property Fund Ltd. This high-growth, defensive fund offers investors unique exposure to exceptional quality, regionally dominant shopping centres underpinned by anchor and national tenants. The office component is located in nodes attractive to national government tenants under long leases, providing a sovereign underpin to a substantial portion of the earnings and shielding them from private-sector risks such as tenant insolvency and default.

Marelise has been the chief financial officer at Vunani Property Investment Fund since 2011 and has more than 19 years of finance and accounting experience.

She joined Vunani Group in June 2009 as group financial manager and, as financial director, is responsible for the full finance and accounting function of Vunani Property Investment Fund Ltd. “To my view, the challenges women have to face in the property industry are more or less on par with those that men need to face in this industry,” she says. “In-depth technical and specialist knowledge, supported by formal and goal-orientated education and coupled with softer abilities such as assertiveness, persuasiveness and a strong need to get things done come to mind. In our ever-changing world, gone are the days when parenting, balancing work and home life, and juggling many other responsibilities were in the domain of women only.”

She believes that great opportunities, specifically in the commercial property industry, lie in waiting to be unlocked by women applying their exclusive, inborn and domestically practised interpersonal skills to lead, support, understand, build teams and generally helping others to understand values and issues that really matter.

VPIF was formed in late 2006 by Vunani Limited, a black-owned and -managed financial-services group, in collaboration with Hyprop Investments Ltd. VPIF is the only JSE-listed property fund that offers investors significant exposure to commercial offices. Due to the difficult global and domestic conditions, local businesses have remained muted, resulting in higher-than-normal vacancies in across the sector.

Due to tight management and prudent cost controls, VPIF has managed to keep vacancies below market average while delivering on its growth strategy.

+27 (0)11 511 5335 dranna@ciholdings.co.za www.rebosis.co.za

+27 (0)11 511 5335 janys@rebosis.co.za www.rebosis.co.za

+27 (0)11 263 9555 marelise@vpif.co.za www.vpif.co.za SOUTH AFRICAN PROPERTY REVIEW

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profile

Let’s be Franke about quality

T

he origins of Franke Kitchen Systems date back to 1914, when the Moodliar family started a sheet-metal business, producing water tanks, cans and rickshaw lamps. In 1956, the company began trading under the name City Metal Products.

Schalk De Beer joined as the marketing manager in 1985; 14 years later, the company was sold to Franke AG in Switzerland. Today, De Beer is the commercial manager and oversees the company’s focus on commercial products. As a result of the market’s large diversity of segments, each being unique and with its own product specifications, the job comes with its own set of challenges, including installation and maintenance skills.

“While aesthetics are important for the developer and the architect, we are continuously looking at developing products for hygiene performance and vandalism resistance,” says De Beer.

Franke South Africa produces more than 80% of its products in South Africa. The company also has several manufacturing plants around the world, which allows it access to products that suit various markets.

Franke South Africa is a market leader in commercial industry through innovation and product development in cooperation with leading architects, developers and contractors. It is also the preferred brand in the medical and security industries.

Franke Kitchen Systems (Pty) Ltd Schalk De Beer: commercial manager +27 (0)861 372 653, enquiry.fsa@franke.com

The world needs fewer engineering companies.

Rebranded as Royal HaskoningDHV, SSI Engineers & Environmental Consultants believes in being more than an engineering company.

Our rebranding to Royal HaskoningDHV ushers in a new class of engineers and consultants, offering solutions for the sustainable interaction between people and their environment, ultimately enhancing society together.

www.rhdhv.co.za www.royalhaskoningdhv.com

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company profile

A new location for The C

The Creative Axis Architects North West had every reason to celebrate at the opulent Mmabatho Palms Casino in Mahikeng, with the opening of the company’s new offices in Mahikeng.

The North West office is one of six located nationally. The Creative Axis Architects also has international branches operating in Africa, India and the UK. Guests enjoyed welcome drinks while a video presentation about the rebranding of the company was screened. The food and the venue were outstanding, and diners soaked up the atmosphere as they exchanged views on future prospects and development opportunities in the North West region.

The Creative Axis Architects offers expertise in: l Offices l Healthcare l Aviation l Rail l Retail l Shopping centres l Department stores l Education l Interior design l Space planning l Hospitality l Residential l Government facilities

No 3 Calgen House 35 Nelson Mandela Drive, Mahikeng 2745 T: +27 (0)18 381 8640 F: +27 (0)18 381 8643 E: yogesh@creativeaxis.co.za www.creativeaxis.co.za 62

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company profile

Creative Axis Architects

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off the wall

Prime real estate in your hand Real estate is no longer just defined by bricks and mortar: the tech age proves there’s even more value in a consumer’s hand than previously thought

By David A Steynberg

R

eal estate has been – and will continue to be – one of the most profitable and valuable investments money can buy. Physical space, like time, is bought at a premium because of its scarcity and potential for a return on investment.

Commercial property – the bricks-and-mortar stuff – is measured in square metres with a value attached to each square metre. And the value of that unit is determined by location, grade of building and area values.

According to Forbes magazine, the average price per square foot of prime real estate in Hong Kong is about US$11 000. In Tokyo, a square foot of prime real estate will set you back US$7 600 and in London you’ll pay US$5 300.

This is big money.

But according to a report by international venture capitalist firm Bessemer Ventures Partners, these prime locations have nothing on the real estate in the palm of your hand.

“This space often commands valuations of US$1 billion or more per ¼ square inch, and there is scarcity because only about 24 of them are available,” writes Byron Deeter, a board member at Infrastructure Inc. “They are the mobile-application launch buttons on your iOS or Android home screen.”

The report says that there does exist a high correlation between “owning” one of the scarce spots on a cellphone user’s home screen and becoming a highly valued business.

“Just look at your home screen now,” writes Deeter. “It’s probable that many of these power applications are sitting on your home screen right now, and all of them are valued at more than US$1-billion: Facebook (~US$40-billion), LinkedIn (~US$20-billion), Twitter (~US$10-billion), Zynga (~US$2,6-billion), Pinterest (~US$2,5-billion), Yelp (~US$2billion), Evernote (~US$2-billion) and Box (~US$1,2-billion). Of course metrics such as total downloads and usage matter as well, but home-screen placement is a rough proxy for those metrics and customer loyalty.”

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Bessemer Ventures Partners believes it’s still early days for the proliferation of high-quality mobile applications.

“Hundreds of new applications are being released every day, and they are all competing for this prime real estate,” says Deeter.

“You also likely have some combination of Apple default applications on your home screen, including a phone book, browser, calendar, email, camera and photos. Will new products in these areas actually displace Apple’s own apps? Will new products emerge around the quantified self? Will new enterprise applications that embrace the ‘bring your own device’ (BYOD) trend start to take off? Investor interest continues to build around consumer applications (such as Uber) and productivity applications, including Box and DocuSign, for the professional user.

“What does this mean for entrepreneurs? It’s a land grab! Claim your real estate. Do whatever you can to become so valuable that you warrant home-screen placement, and your valuation will likely quickly follow.”

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Acknowledgement: SAOTA – Stefan Antoni Olmesdahl Truen Architects

Building and Property Economics is our Speciality Pro-active. Innovative. Maximising returns DelQS remains one of the most established and respected names in the industry. Through highly developed and specialised expertise we are continuously delivering creative solutions to maximise returns for our clients. And when you consider our remarkable track record in South Africa, Africa and the Middle East, there should be no doubt with DelQS at your side, all will be accounted for. Every time QUANTITY SURVEYING

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www.delqs.com | JHB +27 (11) 642 8751 | PTA +27 (12) 460 3304 Associated offices: GHANA | KENYA | MAURITIUS | NAMIBIA | NIGERIA | TANZANIA | UGANDA 14414 012 460 8545