South African Property Review July 2014 by SAPOA

South African Property Review

PROPERTY SOUTH AFRICAN

July 2014

REVIEW

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

OVERALL WIN NE R

Innovative Excellence Awards And the winners areâ&#x20AC;Ś

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

REAL ESTATE and the South African economy

July 2014

WORLD SERIES Global markets in the hot seat

Cover With Spine_JULY_SUBBED.indd 1

2014/06/23 9:56 AM

JHI_SAPOA Add_July.indd 1 Untitled-1 1

2014/06/17 11:00 AM 2014/06/24 11:42 AM

from the CEO

Convention made a difference With the 46th Convention still fresh on everyone’s minds, SAPOA CEO Neil Gopal reflects on the key outputs of the event and highlights SAPOA’s gratitude towards all those who made it a success

ith the 46th SAPOA Annual International Convention and Property Exhibition having come and gone, the legacy it left behind is still lingering among the industry’s players. Hosted at the International Convention Centre (ICC) in the heart of the Cape Town, Convention delegates attended in numbers, with close to 1 400 delegates filling the venue – a figure that surpassed last year’s 1 200 attendees, and a sure sign that the Convention is growing every year. This year’s theme was angled around “Making a Difference”, a goal that SAPOA aims to achieve on a constant basis. Established in 1966, SAPOA boasts a rich history and an even richer purpose – to be the quintessential and ultimate voice of the commercial and industrial property industry. Since its inception, SAPOA has kept to its goals, purpose and overarching vision. This vision is reflected in the annual Convention, which aims to pique the interest of members and the overall property sector. The organisation (as well as the Convention) exists and functions thanks to the ideas, needs, concerns, and goals of its members. The annual Convention takes place every year thanks to the members and overall industry – without your contribution and interest the Convention would not exist. Because of the constant drive and dedication of the members, SAPOA has achieved several milestone and ground-breaking relationships with key role players and stakeholders, and has successfully lobbied several concerns and issues

with government on all levels. In light of this, we have published several reports in this issue to illustrate SAPOA’s commitment to its members and the industry, as well as its advocacy efforts. The highlights of this year’s Convention include the star-studded speaker line-up, as well as the noteworthy winners of the Innovative Excellence Awards, the Property Journalist Awards and the Best Exhibitor Stands. The 46th Convention also welcomed the newly elected councillors and board as well as the appointment of SAPOA’s newly elected president Amelia Beattie. I look forward to working closely with

Mrs Beattie, who will continue to build on all the efforts initiated by immediate past president Estienne de Klerk. Most notably, the Convention acknowledged the graduation of seven SAPOA Pareto Bursary Scheme Trust students, while a pledge campaign was launched to raise funds for the Trust to accommodate more students going forward – R725 000 was pledged during the course of the Convention! The SAPOA Convention Committee and I agreed to pledge R100 of the fee of each delegate at Convention – more than R130 000 towards the Fund. The aim is to raise R20-million over the next few years, which will then cater for our next big goal – to support 50 students via the Bursary Trust by SAPOA’s 50th anniversary. Furthermore, it has been an honour to be appointed as the chairman for the BOMA International Region Council. I will take this opportunity to strengthen SAPOA’s relationship on an international footing. Last but not least, SAPOA would like to thank the sponsors of this year’s Convention as well as the staff for all their hard work, dedication, and for their commitment to the organisation. We hope that you enjoyed 2014’s Convention and look forward to hosting you all again in Durban next year for the 47th Convention. Dates to diarise: 19 to 21 May 2015, ICC, Durban.

Neil Gopal, CEO

SOUTH AFRICAN PROPERTY REVIEW

CEO Review_JULY_SUBBED.indd 1

2014/06/23 9:52 AM

from the editor’s desk

Money, money, money They say money makes the world go round – but it’s the way in which it’s used that truly makes a difference

hether it’s snuggled in your back pocket, sitting in an offshore bank account, shooting up and down on the stock exchange or spent on a major development, money is a valuable commodity in today’s times. We love to say that money doesn’t define us – but it certainly does make an impact. The process of bartering and the use of commodity money dates back thousands of years, when barley and sea shells were used as a form of currency prior to coins and paper notes. Today, currency and economics are major factors in all aspects of the modern world. The fluctuation of economies influences not only the country at hand but also the rest of the world, including those countries that are trading partners. History has shown us that the faltering of economics can have a severe ripple effect on the entire globe. The devastating Great Depression of 1929 began in the US when the Wall Street stock market crashed on 29 October. This had a massive ripple effect on other countries around the world, both rich and poor. Personal income, tax revenue, profits

and prices all dropped, and international trade plummeted by more than 50%. In the US, unemployment increased to 25% – and even 33% in some of the other countries. During the mid-1930s, a few economies began to recover, while some markets only recovered after the end of World War II in 1945. The 2008 economic downturn, known as the Great Recession or the Second Great Depression, was not as dire as its predecessor but is believed to still have its chokehold on the world in 2014. It’s been six years since the recession, which is related to a liquidity crisis, and global markets are re-emerging. Some – such as Poland and Slovakia, the only two members of the European Union to have avoided a GDP recession – have even been left unscathed. Although they have experienced sluggish growth, India, China and Iran have not entered into recession. Economic experts note that the 2008 downturn did not have a major effect on developing countries. In terms of Africa, some say it’s because the continent is not fully integrated into global market dynamics, while Asia and Latin America were well prepared as a result of experiencing crises previously. While developing and emerging markets are garnering attention, developed markets are recovering because there has been an uptick on a global scale with various countries getting back on track. Capital is flowing once again and foreign investment is surging. In light of the latest positive global economic indicators, we decided to introduce an “Eye on the World” series, starting this month. Be sure to read about what’s going on in the markets in this issue. Apart from talking money and markets, this month is quite important: this is SAPOA’s Convention report-back issue, and it is filled to the brim with Convention-related content, including an eight-page feedback story, the glorious SAPOA Innovative Excellence Award winners, as well as the noteworthy Journalist Award winners of our industry. This issue also features the newly elected SAPOA board members and councillors, as well as an intimate interview with the organisation’s recently elected president, Amelia Beattie. Sit back with a cup of coffee and enjoy! Candace King, editor

SOUTH AFRICAN PROPERTY REVIEW

Ed's Letter_JULY_SUBBED.indd 2

2014/06/23 9:58 AM

10753

MAKING

PROPERTY FUNDING FROM START TO FINISH HAPPEN

Building partnerships to realise opportunities for our clients. At Nedbank Corporate Property Finance we understand property. In fact, our agile solutions have made us the market leader with a proven track record across the board. Contact us for your commercial, industrial or retail property funding needs. Cape Town

021 416 7000

Durban

031 364 1111

Eastern and Southern Cape Gauteng and Bloemfontein

041 393 5800 011 294 4444

Rated South Africaâ&#x20AC;&#x2122;s Best Property Finance Bank in the 2013 PwC South African Banking Survey.

nedbank.co.za

Untitled-1 1

Pretoria Port Elizabeth

012 436 7000 041 398 8000

The Gateway, Rabie Property Group, Century City, Cape Town.

Nedbank Limited Reg No 1951/000009/06. Authorised financial services and registered credit provider (NCRCP16).

2014/06/24 11:44 AM

contents

July 2014

PROPERTY SOUTH AFRICAN

Abland

REVIEW

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

Abreal

PROPERTY SOUTH AFRICAN

REVIEW

OVERALL WIN NE R

Innovative Excellence Awards And the winners are…

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

REAL ESTATE and the South African economy

July 2014

WORLD SERIES Global markets in the hot seat

Cover With Spine_JULY_SUBBED.indd 1

Oilgro

July 2014

2 6 8 10 12 14 16 18 25 28 42 46 52 58 61 62 66 70 84 86 87 88

ON THE COVER No. 1 Silo, Allan Gray’s blue-chip headquarters, was the overall winner of the Innovative Excellence in Property Development award and the winner of the Corporate Office Developments award. It also won the Overall Green Award, and has the region’s first 6-Star Green Star rating for design from the GBCSA

2014/06/23 9:56 AM

From the editor’s desk News Education, training and development Legal update Suspensive conditions in contracts Interview Amelia Beattie Feature Liberating Sandton’s skyline SAPOA board Meet the new team Convening in the Cape Property rates: making cents of it Innovative Excellence Awards SAPOA Journalist Awards and exhibitor stand winners Africa uncovered Angola Eye on the world Overview GDP report Real estate and the South African economy Business conﬁdence survey Feature Live design. Transform life Feature Banking on commercial property SA economy still under pressure Why be ethical? Retail running off the tracks? Statistics Off the wall Food for architectural thought

FOR EDITORIAL ENQUIRIES email candacekingsapoa@gmail.com or mark@mpdps.com Published by SAPOA, Paddock View, Hunt’s End Office Park, 36 Wierda Road West, Wierda Valley, Sandton PO Box 78544, Sandton 2146 t: +27 (0)11 883 0679 f: +27 (0)11 883 0684 e: sales@sapoa.org.za Editor in chief Neil Gopal Editorial advisor Jane Padayachee Managing editor Mark Pettipher Editor Candace King Copy editor Ania Rokita Production editor Dalene van Niekerk Designer Dirk Knoesen Sales Riëtte Stevens Finance Susan du Toit Contributors Martin Ferguson, David A Steynberg, Nicky Manson, Denise Mhlanga Photographer Michael Glenister

P R O P E R T Y

F U N D

DISCLAIMER: The publisher and editor of this magazine give no warranties, guarantees or assurances and make no representations regarding any goods or services advertised within this edition. Copyright South African Property Owners’ Association (SAPOA). All rights reserved. No portion of this publication may be reproduced in any form without prior written consent from SAPOA. The publishers are not responsible for any unsolicited material. Printed by Designed, written and produced for SAPOA by MPDPS (PTY) Ltd e: mark@mpdps.com

Contents Review_JULY_SUBBED.indd 7

e: david@rsalitho.co.za SOUTH AFRICAN PROPERTY REVIEW

2014/06/24 11:39 AM

> Corporate and Investment Banking

LEADING THE WAY IN REAL ESTATE FINANCE ACROSS AFRICA

AFRICAN LAND INVESTMENTS LIMITED

FAIRLLOP PROPERTY DEVELOPERS LIMITED

GRAND TOWERS MALL

USD 57.5 million

USD 33 million

NGN 1.8 billion

Senior Debt Lead Arranger

Zambia

Ghana

Nigeria

EYETHU ORANGE FARM MALL

IKEJA CITY MALL

OANDO WINGS DEVELOPMENT LTD

ZAR 349 million

USD 70.3 million

USD 100 million

Development and Term Funding

Syndicated Term Loan

Senior Debt Joint Lead Arranger

South Africa

Nigeria

ONE AIRPORT SQUARE

POLO PARK DEVELOPMENT COMPANY LIMITED

S&C IMMOBILIARIA

USD 31.2 million

USD 36.2 million

USD 14.3 million

Senior Debt Lead Arranger

Senior and Mezzanine Debt Sole Arranger

Senior Debt Sole Arranger

Ghana

Nigeria

Mozambique

On a continent as varied as ours, the business of real estate is no exception. Our presence in 19 African countries provides unique insight and local knowledge which has enabled us to build the largest dedicated real estate platform within this diverse market.

They call it Africa. We call it home. www.standardbank.co.za/cib

Moving Forward

Authorised financial services and registered credit provider (NCRCP15). The Standard Bank of South Africa Limited (Reg. No. 1962/000738/06). SBSA 179310 â&#x20AC;&#x201C; 4/14 Moving Forward is a trademark of The Standard Bank of South Africa Limited

Untitled-1 1

2014/06/24 11:45 AM

news

Silverstar undergoing R560million development

Century City is booming with new development totalling R4,3-billion C

entury City is booming with new hospitality, residential and commercial developments – recently completed, under construction or in the pipeline – totalling more than R4,3-billion. These include a R1-billion mixed-use development, The Square, in the Bridgeways precinct at the Ratanga Road entrance to Century City, which will consist of a 900seat conference centre with 12 meeting rooms and a business lounge, a 125-bedroom hotel, showrooms with residential apartments above, a 8 800m² office block with a groundfloor restaurant and service retail, and a structured parking garage linked to the conference centre. This is the largest development undertaken to date by the Rabie Property Group at Century City and will bring more than R21-billion the value of development that has taken place in the 250ha mixed-use precinct since the first sods were turned in 1997. Work on this mega-development, which will be anchored by a multifunctional square, has already begun, with completion due for end 2015. John Chapman, a director at the Rabie Property Group, which has been responsible for the bulk of development undertaken to date and which owns the remaining undeveloped land and associated rights, says Century City is now home to more than 500 businesses and 3 000 residential units with an estimated 50 000 people now living or working in the precinct. A host of other commercial and residential projects are also currently under construction or in the pipeline. According to Chapman, numerous factors contributed to the success of Century City, not least its central location, its high standard of infrastructure and services, its safety and security, its very strong public transport offering (including MyCiTi), and the high quality of life it offers, with a wide array of world-class amenities from schools to gyms, Intaka Island and Canal Walk within walking distance and the emergence of a strong community spirit with sports clubs and churches having mushroomed in recent years. “Strong demand for offices in the precinct has also seen Century City office vacancies dropping,” he says. “They’re currently at a comparatively low six percent, which has been driving new development, while the residential market has attracted both owner occupiers and investors, the latter of which are practically assured of a tenant from day one as rental demand strongly outstrips supply.” When fully developed, Century City will comprise a total of 1,25-million square metres of bulk, of which just over one-million square metres has been built or is in the pipeline. +27 (0)21 550 7000, Rabie.co.za

ilverstar, a Tsogo Sun property located in Mogale City on Johannesburg’s West Rand, is currently undergoing a R560-million refurbishment. The complex, which opened its doors in March 2008, is being redeveloped to create a variety of additional dining options and an outdoor events area, allowing the complex to host live concerts and events such as the popular Boktown. The development is being undertaken as a single-phase project. Construction began in May 2013 and the anticipated completion date is September 2014. “We realised that our customers enjoy spending time outdoors so, to make full use of this concept and our spectacular location, an outdoor square is being introduced,” says Shane Collinson, director of operations and Complex General Manager at Silverstar. Drawing inspiration from the surrounding foothills of Roodekrans Ridge, the development will bring Silverstar into the open air, with leisure and entertainment facilities built around a large village square. Additional facilities will include six cinemas, all boasting the latest technology 3D screens, a 12-lane bowling alley, two additional restaurants inside the property, laser games, a refurbished casino, an up-market indoor multipurpose events venue, and additional parking. Furthermore, the gaming floor and internal complex will be aesthetically refreshed to complement and bring together the theme of the development. Firms involved in the development are Northpoint (architecture, as well as interior design of the food courts, cinemas and circulation), Aurecon (structural and civil engineering) and WBHO (main contractor). +27 (0)11 662 7300, Silverstarcasino.co.za

SOUTH AFRICAN PROPERTY REVIEW

News_JULY_SUBBED.indd 6

2014/06/23 1:05 PM

news

Panoramic penthouse views from new iconic Sandton building S

even bespoke penthouses are close to reaching completion in the heart of the Sandton CBD. Occupying the top two storeys of Katherine & West, a 10-storey AAA-grade building conveniently located on the corner of West and Katherine Streets, the luxurious penthouses offer access to a premium city-living lifestyle. With Johannesburg becoming a world-class city, Katherine & West penthouses provide the ideal base for the sophisticated buyer to reside in the heart of Gauteng’s economic hub. Katherine & West’s accessibility is second to none, with direct access to the main arterial roads of Rivonia Road and Katherine Street, and with M1’s Grayston Drive on-ramp just two kilometres away. Utilising the city’s impressive public-transport system is straightforward – the building is conveniently located next to the Sandton Gautrain station and therefore offers easy access to OR Tambo International Airport. Starting at R9,485-million and scheduled to be ready for occupation this month, the penthouses primarily target the national and international business market looking for a convenient and accessible base within Sandton. Katherine & West is surrounded by an excellent support infrastructure, including

seven international hotels, Sandton City (Africa’s prestigious shopping centre), the Sandton Convention Centre and Nelson Mandela Square, all within walking distance. The Johannesburg Stock Exchange as well as head offices of major local and international organisations are also clustered in close proximity. Each uniquely designed penthouse is accessed via a dedicated elevator from a private lobby. The lower level of the duplex penthouses includes a finely finished contemporary living area and a stateof-the-art kitchen that opens onto a spacious entertainment area inclusive of an impressive private balcony with panoramic views of the Sandton skyline on one side and Inanda suburbia on the other. Two or three bedrooms with en-suite bathrooms are located on the upper level of each penthouse. Residents have access to the building’s amenities, including office space to lease, concierge services and Open On West coffee shop, where business people and guests can meet over light lunches or refreshments in the open-plan dining facility or private meeting rooms. Renowned interior-design consultancy Head Interiors was contracted

to furnish two of the luxury suites. “Sandton has become known as the ideal address for local and global corporations,” says Kent Gush of Kent Gush Properties. “By day, commerce thrives as people work, lunch and shop; by night it is alive with energy, offering some of the city’s best restaurants, wine bars and nightlife, and playing host to the residing trendy young professional, the well-heeled international traveller and the very successful executive.” +27 (0)11 727 3600, Barrow.co.za

Study reveals that property contributes R191,4-billion to SA economy

he Property Sector Charter Council (PSCC) recently released the results of its latest study, “The Impact of the South African Property Sector on the National Economy”. This research continues from the 2012 report, which measured the size of the property market in South Africa at a massive R4,9trillion. It was and remains the first study of its kind in the country. The 2013 report estimates the size of the economic activity in the property sector in terms of annual income and expenditure flows generated by the sector. The study showed that the property sector contributes R191,4-billion to the economy. A key finding of the research shows that, in 2012, the total economic contribution to GDP of the residential property sector was R103,7-billion, while it contributed R20,1billion to the fiscus through various forms of tax. On the other hand, the commercial (non-residential) property sector contributed R80,9-billion to GDP and R25,3-billion to the fiscus through direct and indirect taxes.

The analysis in the latest report uses the life cycle of a property, from origination concept to its end cycle. The total contribution to GDP of the end of cycle stage in 2012 was R6,8-billion, with R1,1-billion being contributed to the fiscus. The research also considers the financial revenues attributable to the existence of the property during its life cycle, and looks at buildings from an “object” and “investment asset” perspective. “The property sector makes a significant contribution to the country’s economy and it is important to pursue this research to its conclusion for several reasons,” says CEO of the PSCC Portia Tau-Sekati. “Aside from the fact that no reliable figures have existed on the size and impact of the sector before this, in a sector this big and this important there should be ample opportunity for transformation to take place.” Tau-Sekati explains that detailed research is being carried out in various phases, with each

phase providing new understanding of the sector, ultimately creating a consolidated body of knowledge about that will foster consistent understanding of the sector for measurement and evaluation. The first phase measured the size of our property market; the second its financial and economic revenue. The third, currently under way, measures and analyses the transformation using the broad-based BEE tool with eight elements contained in the property sector code. The report was sponsored by Dipula Income Fund. Dipula CEO Izak Petersen says it holds substantial value for the property sector. “Dipula is proud to sponsor research that enhances the knowledge base of the sector, contributes to its growth and benefits all participants.” The research was commissioned by the Property Sector Charter Council and compiled by the Investment Property Databank. +27 (0)11 880 9918, Propertycharter.co.za SOUTH AFRICAN PROPERTY REVIEW

News_JULY_SUBBED.indd 7

2014/06/23 1:05 PM

education, training and development

Certificate for the Commercial Property Practitioner S

As a fully integrated commercial property company, Milestone Property Group considers every transaction as a step towards being able to compete fearlessly in the growing commercial office space markets. With an excess of R400 million in deals concluded as well as a presence in three provinces, we are proud of our milestones and continue to punch above our weight.

CMY

For more information, contact: info@milestoneproperties.co.za +27 (011) 463 8071

ince its formation in 1966, SAPOA has committed itself to improving the quality of education in the property industry. Until about 20 years ago, this was done through regular seminars, the annual Convention, study tours and the Property Development Programme (PDP). First presented in 1969 and aimed at middle and senior management, the PDP was the only short adult educational course offered by SAPOA. In recognition of the need for transformative education and training, the early 1990s saw the introduction of a number of additional educational courses offered under the aegis of the education committee of SAPOA and in conjunction with the University of Pretoria, under the direction of Professor Chris Cloete. One of these courses was the Certificate for the Commercial Property Practitioner (CCPP). The year-long CCPP was introduced in 1996 at the request of the commercial brokers sub-committee of SAPOA. For the first three years, the CCPP was run by means of evening classes in Gauteng, but after requests from interested participants in other parts of the country, the format was changed to a correspondence format, culminating in a threeday block session. This is the 17th year this very popular course is being offered, and the 14th time the course is being offered on a correspondence basis.

Martin Ferguson, SAPOA’s HR, education, training and development manager, collaborates with thought leaders in South Africa’s property sector

To date, 618 participants have successfully completed the programme, out of a total of 1 165 participants who have registered for it – the ratio of successful completions is about 53%. About 70 participants have registered for the course this year.

The CCPP in focus The CCPP is South Africa’s premier qualification for practitioners and brokers involved in office, retail and industrial leasing, selling, management and investment. It aims to provide the necessary skills and knowledge for the property practitioners, property financiers and commercial brokers to function effectively,

SOUTH AFRICAN PROPERTY REVIEW

HR_JULY_SUBBED.indd 8

2014/06/23 10:56 AM

With increasing need for transformation in education and training in the property industry, SAPOA’s education committee highlights its CCPP programme, an allencompassing course that remains relevant since its inception efficiently and successfully in the commercial and industrial property sectors. Participants in the CCPP will find their skills and knowledge sharpened not only by the practical instruction and case studies, but also by the interchange of ideas with the lecturers and their colleagues in the three-day block session. The CCPP is open to all brokers and property practitioners, whether independent or employed by institutions. Entrance qualification is a minimum of matric, with mathematics at matric level being desirable. Appropriate broker experience will be a recommendation for acceptance. The course comprises 14 subjects, to be studied by correspondence between February and November. During October participants attend a three-day residential block session, typically at a venue in Gauteng. In those three days, practical case studies and problems are discussed by leading practitioners in the field. Time is also allowed for discussion of any problems or contentious issues that participants may have encountered during their preparation. Evaluation is by means of six assignments (to be submitted on a monthly basis from March), and a four-hour written exam in November. Limited arrangements can be made for some

participants to write exams in the main centres in the country. In order to gain admission to the examination, participants will have to have attained an average evaluation mark of at least 40% in the assignments. To successfully qualify for the CCPP, a participant will have to obtain an aggregate pass mark of 50%. The examination carries a weight of 60% of this mark and the assignment mark 40%. This course has been recorded with the South African Qualifications Authority. The approved rebate may be claimed from the relevant SETA on the cost of the course, thereby making it more attractive to employers for staff training. The course also carries CPD points for built environment practitioners. In addition, participants who have passed the course will be exempted from the NQF 4 EAAB qualification for estate agents.

Course contents ● Introduction to property development ● Building technology and services ● Building and design economics ● Financial mathematics ● Principles of economics ● Property law ● Town planning ● Property finance ● Property management ● Property tax ● Property marketing ● Negotiation ● Property valuation ● Investment analysis

Sutherland successfully engineered these SAPOA Innovative Excellence Award winning projects

Silo 1 - V&A Waterfront, Cape Town (Overall Winner – Corporate Office Developments + Green Award)

Cradlestone Mall - Gauteng (Winner – Retail Developments)

Silo 2 - V&A Waterfront, Cape Town (Winner – Residential Developments)

UCT Engineering Building - Cape Town (Winner – Other Developments)

CPT - JHB - DBN - TYGER VALLEY

SOUTH AFRICAN PROPERTY REVIEW

HR_JULY_SUBBED.indd 9

2014/06/23 10:56 AM

legal update

“Da mihi factum, dabo tibi ius”: Give me the facts, I will give you the law

Suspensive conditions in contracts By The SAPOA legal department

Simply stated, repudiation is the refusal to perform a duty of obligation owed to the other party in a contract. Negotiation and conclusion of complex contracts in any sector normally entails inclusion of conditions or provisions that have major material effect on the object of such contracts. It is therefore prudent that the implications of any contractual terms or conditions be thoroughly assessed for the purpose of protecting the interests of a client or company.

uspensive conditions in contracts were dealt with in the Supreme Court of Appeal, Case Number 359/2013 in the matter between Africast (Pty) Ltd, a company within a group that undertakes property investment and development, and Pangbourne Properties Limited, a public company listed on the Johannesburg Stock Exchange, its principal business being the acquisition and letting of commercial and industrial premises. A contract was negotiated in late 2006 and for the first two months of 2007 in respect of development of a commercial property in Sunninghill, Johannesburg. There was an agreement about the terms of a contract for the building of commercial premises by Africast (Pty) Ltd and for the leasing out of those premises to tenants. A further condition was the creation of a cession of rights under the lease to Pangbourne Properties Limited, which was under the duty to pay the purchase price for the improved properties to Africast (Pty) Ltd only on transfer of the properties and cession of the leases. A suspensive condition became the focus of the Supreme Court of Appeal. The condition was that Pangbourne Properties Limited should give written notice of the approval of the contract by its board of directors within seven working days of such board approval. The Supreme Court of Appeal was requested to determine if the contract lapsed due to the non-fulfilment of a suspensive condition. In this case, one of the parties – that is Africast (Pty) Ltd, had constructed the buildings in accordance with the contract with Pangbourne Properties Limited’s employees having been involved on a constant basis with the development. The dispute arose with Pangbourne Properties Limited refusing to provide Africast (Pty) Ltd with bank guarantees in respect of the fulfilment of its payment obligation to Africast (Pty) Ltd.

What was accepted as a fact was that Pangbourne Properties Limited had resolved, after almost 18 months after the signature of the agreement, that the suspensive condition had not been fulfilled within the stipulated period, which accordingly meant that it was not bound by the contract. At the core of the legal dispute was the fact that the representatives of Pangbourne Properties Limited, who signed the agreement on its behalf, subject to approval by the board, did not have the legal power to bind Pangbourne Properties Limited to the contract. While the negotiations and the signing of the agreement may have been concluded, the issue arose as to when the contract was legally concluded. Was it at the time of the signature, or when the board approved the contract, or when Africast (Pty) Ltd was informed of the approval within a period of seven days from date of the board resolution? The contract was signed on 5 March 2007, subject to written notification to Africast (Pty) Ltd of Board approval within a period of seven days from date of such approval. An addendum to the contract was signed on 11 April 2007. On 20 April 2007, Pangbourne Properties Limited’s Board signed a written resolution approving the acquisition of the property from Africast (Pty) Ltd and an agreement with Africast (Pty) Ltd to construct an office park, the total purchase consideration being R66 698 792, payable on conclusion of the development. On 25 April 2007, an employee of Pangbourne Properties Limited communicated in writing by advising Africast (Pty) Ltd of the board resolution and also attached the board resolution. Africast (Pty) Ltd terminated the contract by regarding Pangbourne Properties Limited’s action as a repudiation of the contract, and sued for damages based on breach of contract.

SOUTH AFRICAN PROPERTY REVIEW

Legal Review_JULY_SUBBED.indd 10

2014/06/23 11:13 AM

legal update The South Gauteng Court ruled in favour of Pangbourne Properties Limited and concluded that the suspensive condition had not been fulfilled timeously. This meant that Pangbourne Properties Limited was not bound by the contract. The High Court had to determine when the contract was concluded by the parties. It held that the contract became binding subject to a suspensive condition, when it was signed by the representatives of the parties. The Court mentioned that one could not speak of a contract subject to a suspensive condition as becoming binding only on the fulfilment of the condition. Africast (Pty) Ltd argued in the Supreme Court of Appeal that the High Court’s interpretation was not correct and submitted that the suspensive condition “the happening of an uncertain future event”, was not the approval of Pangbourne Properties Limited’s board. It contented that the suspensive condition was the giving of written notice of the fact of the approval. Africast (Pty) Ltd contended that the fulfilment of the condition occurred when written notice of the board approval was sent to them by Pangbourne Properties Limited,

which was within the seven business days of the conclusion of the contract. Pangbourne Properties Limited submitted that the word “concluded” in the contract had been carefully chosen, and that it was intended that the conclusion would be the moment when negotiations between the parties were closed. Pangbourne Properties Limited submitted that negotiations are not concluded when a board authorises a contract but rather that they are concluded when the parties have reached agreement on the terms of the contract. The Supreme Court of Appeal decided that the contract was concluded only when Pangbourne Properties Limited’s board approved the contract, and when written notification of the approval was given to Africast (Pty) Ltd, it ceased to be conditional. In conclusion, the Supreme Court of Appeal upheld the appeal of Africast (Pty) Ltd and ruled that the contract between the parties is binding. Further thereto, the court ordered that Pangbourne Properties Limited in this case repudiated the contract and that Africast (Pty) Ltd in this case was entitled to cancel and claim damages for breach of contract.

The Supreme Court of Appeal decided that the contract was concluded only when Pangbourne Properties Limited’s board approved the contract, and when written notiﬁcation of the approval was given to Africast (Pty) Ltd, it ceased to be conditional

SOUTH AFRICAN PROPERTY REVIEW

Legal Review_JULY_SUBBED.indd 11

2014/06/23 11:14 AM

face to face

Beattie’s bold strategy Newly elected SAPOA president Amelia Beattie takes the reins for 2014/ 2015 with a positive outlook and a real strategy for the South African real estate market and beyond By Candace King Photograph by Michael Glenister

he’s steadfast in her goals, passionate Beattie says this quote resonates about property, and creative in her with her as she prepares for this year as approach as the newly elected SAPOA SAPOA president. “This is about serving president for 2014/2015. Sitting down our members – not because I have to but with Amelia Beattie to discuss her mission because there is, for me, indeed joy in serving.” statement for the next 12 months was Her long-standing industry expertise inspiring. As a young woman who just and backing from STANLIB will positively recently entered the contribute towards property ballgame, “I have therefore tried to keep the her presidency. “At I found interviewing STANLIB, property goals real. They will be moulded Beattie to be a breath is a very important of fresh air and a around four pillars: relationships, part of what we offer boost of girl power our clients – it is an education, advocacy and for myself and for attractive asset class other women in leadership (REAL). Relationship and therefore I get a the industry. lot of support from round-tables will cover Beattie’s newly the bigger Liberty engagements with the different elected role marks Group, which makes the third female member sectors, including youth the role a little easier SAPOA president to undertake.” and women; and education in close to 50 years Her goals are real – a milestone that is initiatives will see us launching a and both industrysomething to think and communitybig research agenda into a skills about. “The role changing – Beattie analysis. On the advocacy side of women in the is real about making property industry a difference. “I want we will start an initiative with remains an issue to make sure that the premiers where previously that needs focus, we don’t forget the not only by SAPOA ‘real’ in real estate,” we focused on the mayors. On but by all members she says. “Property leadership we will establish and of the industry,” says is tangible and we lead an Africa committee that Beattie passionately. need to make sure “Lynette Finlay and that the goals that consists of the various industry Marna van der Walt we have can make bodies to provide leadership paved the way for a real difference to me; they are both the people in the on issues on the continent” women for whom industry. I have I have a deep respect. Women have made therefore tried to keep the goals real. big strides in the industry over the past 15 They will be moulded around four pillars: years, and we need to be proud of that and relationships, education, advocacy and celebrate these achievements.” leadership (REAL). Relationship round-tables On being elected as SAPOA’s new will cover engagements with the different president, Beattie makes reference to a member sectors including youth and women; piece that South African Public Protector and education initiatives will see us launching Thuli Madonsela wrote. She said, “I am still a big research agenda into a skills analysis. On one of the people but placed in a position the advocacy side we will start an initiative where I can assist them a bit better than with the premiers where previously we focused before. My mother gave me compassion on the mayors. On leadership we will establish and the spirit of service – of wanting to and lead an Africa committee that consists help not because you are going to be paid of the various industry bodies to provide but because there is a joy in helping.” leadership on issues on the continent.”

SOUTH AFRICAN PROPERTY REVIEW

Interview Amelia_SUBBED.indd 12

2014/06/24 12:31 PM

face to face Beattie says SAPOA will also continue to follow through on all the issues that started in these pillars during Estienne de Klerk’s presidency, and on the ongoing initiatives run by the SAPOA executive. Elaborating further on the education pillar, Beattie is very proud of the R725 000 that was raised for the SAPOA Bursary Fund through the pledges at the Convention. “We need your support; we need your open hearts and cheque books, we need your R50 000 pledges,” she said in her address at Convention. The current goal is to raise R20-million in the next few years. “The Convention was again a superb event and we need to congratulate Neil Gopal, his team and the Convention committee who spent endless hours ensuring that it happened without any glitches. We learn a lot, we engage a lot and we create a lot of value over the three days.” When asked about facing challenges, Beattie is realistic in her response. “Life is full of challenges, business is full of challenges, industry organisations are full of challenges – but the greatest sense of achievement comes from collaborating with each other to overcome these challenges successfully whilst our integrity remains intact,” she says. “I’m privileged to work with Neil Gopal and a competent and involved board – so these are not my challenges, they are our challenges. Together we will find wisdom to overcome them.” In terms of the industry’s challenges, Beattie says they are myriad. “SAPOA is in a position to be the voice of the industry, and to spearhead some of these issues to solution. SAPOA can also provide thought leadership on these issues to the policymakers way ahead of these matters starting to impact the industry.” Apart from the REAL goal for SAPOA, Beattie also wants to fulfil her own personal goals. “I want to give back to an industry that gave so much to me over the last 14 years,” she says. “I want to serve the needs of members, and be a voice and mouthpiece for those who don’t have the opportunity. I want to spearhead the right things. But most importantly I want to make sure we educate and grow as many people in the process as possible, understand where the gaps are that we need to close, and make sure people understand the opportunities they have in educating themselves. I want to continue to love what I do – I have a deep passion for people and for property, and SAPOA gives me the opportunity to continue to live these dreams.”

Beattie’s goal is also to make a difference on the African continent. “I’d like to see the same depth in most of the African markets as we have in South Africa. My dream is to be the catalyst for creating quality environments for people on the African continent just as we have here. We have an ability to change the lives of so many people, through bricks and mortar. Property is an amazing industry, not only for investors – we create jobs and trading environments, and we change people’s lives. “I also hope we can create an environment where property is a career of choice as our children leave school, where there is much more awareness about the awesome opportunities that this industry create.”

“SAPOA is in a position to be the voice of the industry, and to spearhead some of these issues to solution. SAPOA can also provide thought leadership on these issues to the policy-makers way ahead of these matters starting to impact the industry”

SOUTH AFRICAN PROPERTY REVIEW

Interview Amelia_SUBBED.indd 13

2014/06/24 12:32 PM

editorial

Liberating Sandton’s skyline Nearing completion, Liberty Properties’ highly anticipated Atrium on 5th development is set to swank Sandton up as one of the node’s most appealing property attributes

The location of Atrium on 5th means staff, guests and international visitors are located at the centre of convenience, with retail, convention facilities, hotels and residential amenities all in close proximity 14

egarded as Sandton’s next top business address, the sexy Atrium on 5th, formerly known as the Twin Towers, is earmarked for completion in August 2014. As the building transforms into one of the most eye-catching in the Sandton district, the premium office space on offer has already attracted the attention of several prominent tenants.

The building is jointly owned by Liberty and Pareto, and is being developed by Liberty Properties. Through the rejuvenation of this 32year-old building, Atrium on 5th will now incorporate various environmentally sustainable attributes, with the project aiming to achieve a 4-Star Green Star SA Office Design and As-Built rating. While the original building has been updated with a number of new features, including a glass façade, the most striking element is the creation of an 11-storey-high glazed atrium, which provides for splendid views up Maude Street. Furthermore, the façade has been double glazed and insulated, which ensures optimal use of daylight while minimising heat losses through the building envelope. Not only is Atrium on 5th one of Sandton’s most impressive renovations; it also forms part of the renowned Sandton City complex, making it a truly mixed-use development. The location of Atrium on 5th means staff, guests and international visitors are located at the centre of convenience, with retail, convention facilities, hotels and residential amenities all in close proximity. The many positive infrastructural developments in Sandton – including the Gautrain – have further enhanced the demand to be situated in the node. Thus the area continues to expand and develop. With its outstanding location within the Sandton CBD and its proximity to the Gautrain, Atrium on 5th tenants also have the choice of alternative modes of transportation: the building caters for cyclists with lockers, showers and a preferential parking system with dedicated parking bays for tenants. As the Sandton node continues to redevelop and garner further success, Liberty Properties will continue to enhance the business hub’s key property developments, with Atrium on 5th as a prime example.

SOUTH AFRICAN PROPERTY REVIEW

Liberty_SUBBED.indd 14

2014/06/23 1:04 PM

10222 Compliance number: 3DR068

Untitled-1 1

2014/06/24 11:47 AM

sapoa board

Mike Deighton President Elect

Estienne de Klerk Immediate Past President

Neil Gopal SAPOA CEO

Dr Sedise Moseneke

James Aling

Meet the new team Amelia Beattie President Chief investment officer: direct property investments at STANLIB Amelia Beattie 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 (WPN) and Nedbank “Five Star Woman” award, she is passionate about education, and is a founder and trustee of the WPN’s Education Trust, which promotes the education and development of young women in property studies.

Mike Deighton President Elect CEO of Tongaat Hulett Developments Mike Deighton began his career with the Durban Municipality, later working in the consulting engineering 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.

SAPOA COMMITTEES ❖ SAPOA INNOVATIVE EXCELLENCE AWARDS Pieter Engelbrecht Growthpoint Properties ❖ SAPOA BROKERS John Jack Galetti Knight Frank ❖ SAPOA EDUCATION, TRAINING & DEVELOPMENT Nomvula Pooe Growthpoint Properties ❖ SAPOA NATIONAL DEVELOPERS FORUM John Martin iProp ❖ SAPOA RESEARCH Sanett Uys JHI Properties

❖ SAPOA SUSTAINABILITY Heidi Hertz City Property Administration ❖ SAPOA LEGAL Desirée Nafte Hyprop Investments Limited ❖ REIT Estienne de Klerk Growthpoint Properties ❖ SAPOA GOVERNMENT LIAISON Dr Sedise Moseneke Vukile Property Fund Limited ❖ SAPOA PROPERTY & FACILITIES MANAGEMENT Nicole Baumgarten Finlay & Associates

Estienne de Klerk Immediate Past President Executive director at Growthpoint Properties Limited Estienne de Klerk’s experience spans 18 years of 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 at Investec. He’s represented the SA REIT Association as signatory to the Property Sector Charter and is the chairman of the SA REIT committee responsible for the establishment of REIT legislation. Dr Sedise Moseneke Executive director at Vukile Property Fund Limited 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 executive director at Vukile Property Fund. Moseneke is also an elected board member of Nu-Way Housing Developments and Krisp Properties, and was a previous SAPOA president (2012/2013).

James Aling Managing director at HL Halls & Sons (Pty) Ltd James Aling is the managing director at Halls Properties (the property development business of the Halls Group, based in Nelspruit, Mpumalanga) and the current chairperson of the recently established SAPOA regional council of the Mpumalanga region. He aims to get the regional council well established and representative of the broader Mpumalanga region, and see that City Improvement Districts get onto the SAPOA agenda as a sustainable approach to developing and/or revitalising healthy neighbourhoods and precincts in partnership with property owners and local government. David Green Director at ProAfrica Property Services (Pty) Ltd David Green is a director at ProAfrica Property Services, which assists international corporates with all aspects of real estate in South Africa and much of Africa. Projects have included the largest industrial sale and lease back disposal in sub-Saharan Africa, and

❖ SAPOA CONVENTION & PROPERTY EXHIBITION David Green ProAfrica Property Services

SOUTH AFRICAN PROPERTY REVIEW

Board Members-2_SUBBED.indd 16

2014/06/24 8:59 AM

sapoa board

David Green

Peter Levett

Marius Muller

Ipeleng Mkhari

Nomzamo Radebe

Izak Petersen

Announced at the 46th SAPOA Annual International Convention and Property Exhibition, here are the newly appointed SAPOA board and national council members the relocation of various head offices in South Africa, Kenya, Ghana, Nigeria, Mauritius and Angola, among others. Green has been a member of SAPOA since 1982 and is currently the chairman of the SAPOA Convention committee, a position he has held for several years. Peter Levett Managing director at Old Mutual Property Peter Levett has been with Old Mutual for 16 years and with Old Mutual Property for 12 years 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. Marius Muller CEO of Pareto Limited Marius Muller’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 iFour, also holding the appointment of managing director at iFour.

Ipeleng Mkhari COO of Motseng Investment Holdings Ipeleng established the first black-woman-owned CCTV business and subsequently co-founded Motseng Investment Holdings, a diversified investment holdings group in 1998. She’s 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. Nomzamo Radebe Managing director at JHI Properties Awarded the prestigious Five Star Woman 2009 award by the WPN, Nomzamo Radebe is a non-executive director of the Independent Regulatory Board for Auditors and of the South African Council of Shopping Centres. She is also a nonexecutive director at Munich Reinsurance Company of Africa Limited, a member of its audit and risk committee, and the chairman of its social and ethics committee. She is also a non-executive member of the SAPOA audit and risk committee, a trustee of the SAPOA Pareto Bursary Trust and a member of the board of the Property Sector Charter Council.

Izak Petersen CEO of Dipula Income Fund Izak Petersen originally co-founded the Mergence group of companies – which was co-principal in the formation and listing of Dipula – a decade ago. Prior to that he worked for PSG Investment Bank, first as group management accountant and subsequently as a transactor in structured finance and products, and was at Deloitte South Africa before that, where he executed services locally and in the US. He continues to serve as an executive committee member of various industry bodies and holds directorships in a number of Mergence group companies.

ELECTED OFFICIALS ❖ Izak Petersen Dipula Income Fund ❖ Nonku Ntshona Nonku Ntshona and Associates ❖ Kgaogelo Mamabolo STANLIB Direct Property Investments ❖ Dimitri Kokinos STANLIB Direct Property Investments ❖ Nomzamo Radebe JHI Properties

REGIONAL COUNCILLORS AND THEIR RESPECTIVE REGIONS ❖ WESTERN CAPE Refqah Fataar Ho-Yee Smith Tabata Buchanan Boyes ❖ KWAZULU-NATAL Edwin van Niekerk Max Prop ❖ EASTERN CAPE (PORT ELIZABETH) Mark Bakker Bruce McWilliams Industries ❖ EASTERN CAPE (BUFFALO CITY, EAST LONDON) Zoe Chagadama Department of Public Works ❖ MPUMALANGA James Aling HL Halls & Sons (Pty) Ltd The regional councillors for Gauteng and Limpopo will be announced soon.

SOUTH AFRICAN PROPERTY REVIEW

Board Members-2_SUBBED.indd 17

2014/06/24 9:01 AM

the 46th annual sapoa international convention and property exhibition

Convening in the Cape Staying true to its overarching theme for 2014, SAPOA’s 46th Annual International Convention and Property Exhibition not only made a difference but also illustrated the power, the passion and the unconditional heart of the South African property industry By Candace King Photographs by Michael and Danieter Glenister, Sam Burrows and Nick Proust

he City of Cape Town proved to be a living, breathing example of the host of topics, issues, and discussions that were fleshed out at SAPOA’s 46th Annual International Convention and Property Exhibition – a spectacular event that unequivocally informed, intrigued, surprised and treated the property industry’s greatest players. As South Africa’s second largest city and the economic breadwinner of the Western Cape, Cape Town accounts for more than 75% of all economic activity in the region. Cape Town is a different city than it was several years ago. Having evolved into a thriving hub of activity on all levels, the central business district (CBD) is the pulse of the city and offers a host of opportunities for business, leisure, work and studying. It’s a city populated with people from diverse backgrounds who utilise its public spaces as well as its highly efficient MyCiTi public transport system. The focal goal of the city over the past few years has been to embark on several initiatives designed to make it easier to invest and do business in the region. Thanks to the Central City Improvement District, Cape Town has been rejuvenated into a vibrant centre of social inclusion and economic prosperity via partnerships with government, non-governmental organisations, the private sector and local residents. In recent months, the city has become a commercial property development haven – according to the State of Cape Town Central City 2013 Report, the value of property in the Cape Town CBD currently stands at close to R24-billion. Held from 10 to 12 June 2014 at the Cape Town International Convention Centre (CTICC), the 46th Convention is getting on in its life as it edges close to the big five-oh – but the event still remains relevant, especially with this year’s fresh and newsworthy speaker and topic line-up. Apart from the insightful and up-to-date content, the delegate attendance this year is solid proof that the SAPOA Convention is garnering more attention year on year. “The attendance for 2014 has surpassed last year’s figure of delegates. This Convention is certainly growing,” says Maurice Mdlolo, managing director at Liberty Group Properties, which served as this year’s principal sponsor. Last year saw about 1 200 attendees, while this year the figure rose close to 1 400. With more delegates and a host of activities, speakers and networking opportunities, the CTICC was buzzing over the course of three days, while the inner city of Cape Town served as an allencompassing playground for the 46th Convention.

ABOVE SAPOA Immediate past president Estienne de Klerk BELOW, FROM LEFT Immediate past SAPOA president Estienne de Klerk, City of Cape Town honourable mayor Patricia de Lille and SAPOA CEO Neil Gopal

SOUTH AFRICAN PROPERTY REVIEW

Convention Report Back_SUBBED.indd 18

2014/06/24 10:26 AM

convention report back

CLOCKWISE FROM TOP LEFT Amelia Beattie receives the presidential regalia from Estienne de Klerk; Beattie presents her REAL strategy; (from left) Estienne de Klerk, former Springbok coach Jake White, Amelia Beattie and Neil Gopal.; a game of golf at De Zalze; delegates enjoy the tours of Cape Town

Day 1: Landing in the Mother City Facing the nip of the cold front in Johannesburg at 4am to catch a 7am flight to Convention, it was comforting to land in a rain-free and relatively sunny Cape Town. Apart from being giddy about the muchprayed for change in weather, it was great to see a few familiar faces on the plane, including SAPOA’s immediate past president Estienne de Klerk and his wife, who was quite excited about the prospect shopping in Cape Town. Making my way to the Radisson Blu Park Inn hotel on the Foreshore, which was to be my home for the duration of Convention, I was interested to see a plethora of shack dwellings with satellite dishes adjacent to the N2 highway, and simplistic RDP houses with backend shack add-ons, which are (according to the shuttle driver) rented out to “tenants”. This intriguing sight sparked off a conversation about the poor living standards and social inequalities in the city of Cape Town. Russia’s housing debacle popped up in the dialogue, which made me think about Dr Yuri Maltsev, whom I had previously interviewed and was looking forward to hearing at Convention. As in South Africa, the provision of adequate affordable housing has become a state priority in SOUTH AFRICAN PROPERTY REVIEW

Convention Report Back_SUBBED.indd 19

2014/06/24 10:27 AM

the 46th annual sapoa international convention and property exhibition Russia, as has encouragement of growth in the private housing sector. While Cape Town boasts stark social contrasts, there are big, influential changes happening in the city via community upliftment, public transport implementation and pedestrianisation, and beefed-up safety and security to heightened infrastructure and property development and sustainability consciousness. This positive transformation of Cape Town is reflected in the opinions of its inhabitants. “Things just work here,” said the shuttle driver proudly. “We don’t have issues with electricity and water, and the city is fairly pollution-free.” While I was becoming accustomed to Cape Town, the first day of Convention was a busy one with two riveting city tours – a scenic route as well as an inner-city excursion – an educational workshop on gross lettable area and return-effective measurement standards, and an afternoon of golf at De Zalze Golf Club.

Day 2: Making pledges, meeting the mayor and reflecting on the future The second day started off with a bang as the master of ceremonies – political analyst, broadcaster, lecturer and writer Eusebius McKaiser – kicked off the Convention, deboning the meat of the event in the most comical manner. “So why am I here, you ask? I am here as MC to honour an industry that contributes to South Africa and its economy,” said McKaiser, who became enthralled by the property industry and all its bells and whistles during the course of the event. “The leadership of SAPOA is phenomenal.” Headlining the opening ceremony, the honourable mayor of Cape Town Patricia de Lille warmly welcomed all delegates, highlighting Cape Town’s great steps towards further prosperity, and the city’s commitment to the private sector. The mayor noted that Cape Town is a city that is safe, efficient, clean and truly world-class. She added that the property sector’s direct and indirect job creation is welcome, as is its overall economic contribution. “The city of Cape Town recognises SAPOA as a key stakeholder, as SAPOA represents a tremendously important constituency – our property owners, who make an invaluable contribution through rates and other service charges to ensure that we can deliver on our service delivery mandate to all residents,” she said. De Lille further added that Cape Town has now rolled out several hard and soft incentives, including the initiation of an open data policy – a first in South Africa. Furthermore, an electronic rates system will go live later this year. Illustrating the city’s desire to partner with the private property industry and its dedication to the sector, the mayor pledged R50 000 to the SAPOA Bursary Fund and encouraged the industry’s role players to do pledge as well. “There is no time like the present to make investment decisions,” she said. “Property is one of the most exciting, dynamic and innovative sectors in South Africa, and nowhere is this more tangible than at SAPOA,” said SAPOA’s immediate past president Estienne de Klerk. “Our industry affects the lives of millions of South Africans every day. Not only do we create wealth, investments, jobs and career opportunities, we also create workplaces, marketplaces, meeting places – the fabric of our society. The health of our sector directly affects the health of the economy, and the way we conduct our business impacts the quality of almost every South African’s life. We make a difference – not only today but tomorrow as well. Property is a sector that invests in the future. We are committed for the long term.”

Convention MC Eusebius McKaiser with SAPOA president Amelia Beattie

Scenario strategist Clem Sunter

Liberty Group MD Maurice Mdlolo

SOUTH AFRICAN PROPERTY REVIEW

Convention Report Back_SUBBED.indd 20

2014/06/24 10:45 AM

convention report back

Cape Town mayor Patricia de Lille

Immediate past president Estienne de Klerk

Vukile CEO Laurence Rapp

Investec’s Rüdiger Naumann

ABOVE SAPOA president Amelia Beattie OPPOSITE, FROM TOP SAPOA CEO Neil Gopal with president Amelia Beattie during the SAPOA AGM meeting; the constant buzz of the exhibition hall

Bidding his presidency a farewell, De Klerk closed by saying, “Over the last year it has been a privilege to look after the interests of the commercial property sector with SAPOA’s board, executive team and members. I know that SAPOA has made, and will continue to make, a difference and change for the better the way our industry is perceived within the legislative, planning, tax, education, regulatory, environmental and social landscape in which we operate.” From the past president to an economics professor: Dr Yuri Maltsev was quite the comedian as he provided an eye-opening insight into the horrors of the Soviet Union, furnishing South Africa with lessons on the savagery of socialism. “Liberty and property mean freedom,” said the former economic adviser to Russian president Gorbachev. “People without property are slaves. Liberty is nothing but choice.” He added that many people did not and still do not have choice, especially those living in Russia and South Africa. Currently, one-billion people in the world live in economic and political freedom. So what are the lessons to learn? Maltsev pointed out that liberty is a precious gift and that we need to cherish and fight for it. Moving closer to home, independent consultant and scenario strategist Clem Sunter taught us how to think like a fox. “A fox looks outwards and makes quick and agile decisions to survive,” he explained. “Business needs to behave the way a fox does: look outwards and change with the market.” He added that it is critical to identify and deal with the red flags that can influence your business. Dealing with South Africa, Sunter painted several possible pictures of the future South African scenario. Using the Barclays Premier League as an example of the current global situation, Sunter said that South Africa is still in the competition, but just scraping by. However, there are three possible scenarios for the country: 1) We get our act together; 2)We don’t; and 3) We become a failed state filled with violence and unpredictability. “We are now sitting at 50%, 25% and 25% in terms of the three scenarios,” Sunter said, noting that the South African red flags to watch include whether the current government will unite us or divide us; whether we are going to use our county’s pockets of excellence or dumb them down, causing these individuals and companies to leave the country; our stimulation of the economy; and our attitude towards entrepreneurs. “South Africa has an ambivalent attitude towards entrepreneurs, tolerating mediocrity,” he said. “We don’t recognise individual innovators the way the US does.” A prime pocket of excellence in South Africa is our listed property sector, which was dissected by Professor Brian Kantor, Investec Wealth & Investment chief economist and investment strategist and the non-executive chairman of Acucap. “Listed property in South Africa is a work in progress,” he said. “So far, it has had a good run. The strength in the listed sector is all to your advantage.” Over the past few years property has outperformed all other classes, including shares, bonds and cash. Kantor highlighted the fact that there is promise for this sector to become bigger. To ensure this, we need better methods of analysis and monitoring in the industry, he said. Sitting on the Real Estate Investment Trust’s (REIT) panel discussion, portfolio manager for Investec Asset Management Rüdiger Naumann noted that niche specialist funds are a real opportunity in South Africa and that there is space for a residential fund because it is an attractive model “We need to provide investors with best-of-REIT governance,” said Laurence Rapp, chief executive officer of Vukile Property Fund Limited. SOUTH AFRICAN PROPERTY REVIEW

Convention Report Back_SUBBED.indd 21

2014/06/24 10:46 AM

the 46th annual sapoa international convention and property exhibition With a full-day of sessions and speakers, including the muchanticipated announcement of the SAPOA Journalist Award and Innovative Excellence Award winners, Day 2 ended with nonstop networking over cocktails as delegates enjoyed the exhibitor stands while exchanging their opinions on the day, their ideas and their business cards.

Day 3: Rates, retail and a street-party romp The third and final day of Convention was a heavy hitter both in terms of topics and the party finale. It began with an insight into a South African macroeconomic analysis with STANLIB’s chief economist Kevin Lings, which was followed by a look at the property sector’s economic impact in South Africa by Dr Douw Boshoff, programme leader for real estate at the University of Pretoria. According to Simon Freemantle, senior analyst at Standard Bank Research, the projected growth to come in this year is sitting at two percent, and 2,1% next year. “We are not in a technical recession,” said Freemantle. And Lings added, “It’s key that we lift confidence in South Africa. The current slow-down is self-induced.” SAPOA’s newly elected president Amelia Beattie addressed the Convention with passion and determination – qualities that are steadfast and imperative for the year ahead. “I want to make sure that, together, we make a real contribution to the industry, its people and the various communities in which we operate,” she said. “My hope is that we make sure we don’t forget the REAL in real estate. During the 2014/2015 term, we will focus our efforts on four REAL pillars – relationships, education, advocacy and leadership.”

STANLIB’s chief economist Kevin Lings

UP senior lecturer Dr Douw Boshoff

ABOVE The panel discussion on property rates and taxes tried to make “cents” of the issues surrounding municipality tariffs and valuations

Thank you for your attendance at the 46th Annual SAPOA International Convention and Property Exhibition, which took place at the CTICC from 10 to 12 June 2014. We trust that the many issues raised, discussed and debated, as well as our well-informed speakers’ views and opinions, were a great valueadd to your experience at this event. See you at the 47th Annual SAPOA International Convention and Property Exhibition in sunny Durban, at the ICC from 19 to 21 May 2015!

Neil Gopal SAPOA CEO

David Green Chairperson: SAPOA Convention committee

SOUTH AFRICAN PROPERTY REVIEW

Convention Report Back_SUBBED.indd 22

2014/06/24 11:17 AM

convention report back

Rates Watch’s Ben Espach

Former FNB CEO Michael Jordaan

ABOVE Dipula Income Fund CEO Izak Petersen, Vunani Investment Property Fund CEO Rob Kane and Redeﬁne Properties CEO Marc Wainer

As a burning issue in the property sector, the topic of property rates and taxes and the surrounding inconsistencies packed a punch, with the panel discussion featuring comments from several industry heavyweights and a government representative. Findings released by SAPOA at Convention state that the yearly increases in municipal rates and taxes have impacted the South African economy to the tune of 4 500 lost jobs and lost economic output of about R2,8-billion. “There needs to be a re-evaluation of the rates valuation methodology,” said Redefine Properties’ chief executive officer Marc Wainer, who was quite vocal in his opinions. “Local authorities need to relook at their business – no-one wants to invest in them because of their inefficiency. Municipalities don’t have the skills, knowledge or time. There needs to be a simpler method in place to assist this lack.” “The Municipal Property Rates Act is relatively young – we are currently still experiencing the starting phase,” said Veronica Mafoko of the directorate of municipal finance and viability at the Department of Cooperative Governance. “There are going to growing pains, and this is expected. If there’s no trust in the general valuation roll system, then we cannot move forward.” Moving from the rands and cents, former FNB CEO and Montegray Capital director Michael Jordaan provided radical insight into the coming digital disruption, offering suggestions for the industry on what could possibly be done about it. “Technology change is exponential,” he said. “Information technologies double their power every yea.” He also noted that, in the coming years, nearly all information will be free, and that there will be radical changes in AI, robotics, 3D printing, synthetic biology, media tech, nanotech, networks and sensors.

Thanks to our 46th SAPOA Annual International Convention and Property Exhibition sponsors

DINNER SPONSOR

MAIN SPONSOR

PENS AND NOTEBOOKS SPONSOR

DINNER SPONSOR

USB SPONSOR

MINI PROGRAMME SPONSOR

JOURNALISM AWARDS SPONSOR

GOLF: HALFWAY HOUSE SPONSORS

DELEGATE BOOKLET SPONSOR WIRELESS HOTSPOT SPONSOR

COCKTAIL FUNCTION SPONSOR

PAST PRESIDENTS DINNER SPONSOR GOLF: HALFWAY HOUSE SPONSORS

SOUTH AFRICAN PROPERTY REVIEW

Convention Report Back_SUBBED.indd 23

2014/06/24 11:18 AM

the 46th annual sapoa international convention and property exhibition Jordaan also highlighted that people operating in the property industry can be put out of business in the next 10 to 15 years as a result of new technology, advising that the sector needs to keep on educating itself in order to survive – and simply “digitise everything”. The discussion then moved to global real estate trends in 2014 and beyond – Kees Hage, partner and global real estate leader at PriceWaterhouseCoopers (PwC) Luxembourg presented a global view of the real estate sector over the next 20 years, while PwC associate director of advisory strategy and operations Peter Hoijtink addressed the retail consumer expectations that are driving the next retail business model in South Africa. Like Sunter’s flags, PwC have identified a few that are relevant to the property industry. Three trends to watch include the battle for assets, place-making (great development is about making successful places) and demographics at work. “The global outlook looks positive in the coming year – but it is a different game and property players need to think carefully about their business, investment and development decisions,” said Hage. Towards the end of Day 3’s packed speaker and panel-discussion line-up, it was evident that the delegates were losing steam, but the “rock star” of public speaking – Motiv8 Merchant Services managing director Vusi Thembekwayo – brought the fire back with his high spirits, hilarious accents and riveting presentation. “In all great organisations there are four laws: find the truth; aim to be the best and not the biggest; vision excites, not numbers; and lead by the ‘business case’,” he said. Thembekwayo ended his presentation on a high note with an inspiring quote from South Africa’s Tata Nelson Mandela, who had spent 27 long years behind bars on Robben Island, a prison situated not far from where the Convention took place. The Convention as a whole closed with an exciting “Around the World” street party – with themes from South Africa to Mexico, Greece and the US, the party was a sumptuous affair, with food and beverages available on demand and an exceptional entertainment component. Delegates partied their way into the early hours of the following morning before heading back to reality and back to their respective living and working locales – until next year, when everyone will be together again.

PwC (Luxembourg)’s Kees Hage

David Green, ProAfrica Property Services

PwC’s Peter Hoijtink

Business speaker Vusi Thembekwayo

Convention wrapped up with bright lights and live music at the much-anticipated street party

SOUTH AFRICAN PROPERTY REVIEW

Convention Report Back_SUBBED.indd 24

2014/06/24 11:25 AM

the 46th annual SAPOA international convention & property exhibition the 46th annual sapoa international convention and property exhibition

Property rates:

making cents of it

Ben Espach, director of valuations at Rates Watch, shares his presentation from the 46th Convention on the debacle around skewed valuation and property taxes as well as the criticisms of the Rates Act

Rates Watch’s Ben Espach

he Municipal Property Rates Act (MPRA), or “the Rates Act”, is the Act that governs the basis of valuing properties for rating purposes across South Africa. The MPRA is in essence a sound and solid piece of legislation. It has been based on similar legislation in first world countries such as the US, the UK and Australia. However, it has been subjected to much criticism. Is this fair? The problem lies not only in the compilation of the municipal valuations but also in the very poor standards of implementation by most municipalities in the country. In order to understand the weaknesses affecting the issue of municipal valuation and rating and trying to make “cents” of them, I will give a short background to the main causes that are wreaking havoc in the South African property sector, especially relating to rates and taxes. All valuation contracts awarded to the private sector have to be made in terms of the Municipal Finance Management Act. The pitfalls of this form of procurement are: ● Corruption ● Award based on price preference (90:10 ratio) ● Quality and experience compromised because of the price preference ● Lack of continuity ● Inexperienced tenderers are appointed lacking in knowledge, know-how, and administrative and MPRA skills A successful financial institutional valuer may not have the specific knowledge needed to compile mass valuations for rating purposes. The recent valuation appeal board ruling in the ERPM appeal confirms this statement.

In many cases, non-valuation companies have been awarded the tender to compile municipal valuation rolls. This results in “under and over” valuations causing imbalances in the application of rates and taxes. The well-known expression “pay peanuts and get monkeys” is very true and appropriate in the award of municipal valuation tenders and the consequences that follow. Or, put another way, “goedkoop is duurkoop” – a well-known Afrikaans saying that means pay cheap prices and you’ll pay more in the long run. Thus baie duurkoop, or very expensive, for municipalities and property owners alike. In most cases, there is a total lack of planning in the preparation of the valuation tender. This results in unrealistic completion dates bringing about short cuts, guesstimates and total chaos. The current Johannesburg, Ekurhuleni and Polokwane scenarios are examples: ● Jo’burg has lodged 63 000 objections against its own valuation roll ● Polokwane: 16 000 entries in first supplementary roll (there are just over 70 000 properties in total) This is unheard of! A single contractor has been awarded the tender for the compilation of the valuation rolls for the above three municipalities involving more than two-million properties to be compiled in less than 11 months. Simply put, “Mission Impossible”. I am sure that there is not a single property owner in the audience today who has not had an issue with municipalities with regards to either the valuation of their property or the rates and taxes account. Let us follow the process of inspecting a valuation roll. A roll is submitted by the municipal valuer and the municipal manager is obliged in terms of the Rates Act to publish notices in the provincial gazette and local newspapers, as well as being obligated to advise all property owners that the valuation roll is open for inspection. This is the familiar and dreaded section 49 notice. What troubling and inaccurate information does it carry? Due to postal delays and/or postal strikes, it is very common for these notices to be received by owners after the closing date calling for objections. The municipal valuer will commence his considerations only after the closing date and only when he has received all the objections from the municipal manager. Depending on the number of objections, this can be a tedious and very time-consuming task.

It can take up to 18 months before the decision of the municipal valuer is made known to the objector. The owner/objector then receives the section 53 notice. Only then can an appeal be lodged. The Rates Act states very emphatically that “the lodging of an objection does not defer liability for payment of rates beyond the date determined for payment”. This means that where a property has been incorrectly valued, the property owner is obliged to pay rates even if the municipal valuation is wrong, until the matter has been finalised by either the municipal valuer or the valuation appeal board. In order to prevent essential services from being disconnected, there is no option but to pay. The appeal process can take several years to finalise. Johannesburg is still attending to valuation appeals and reviews relating to the first general roll dating back to 2008. Where the decision of the municipal valuer is accepted by the owner, and there is a difference of 10% or more, the decision has to be referred to the valuation appeal board for review. This is cause for further delay, and the appeal board has the right to revoke or review the decision. Until such time as this whole process is finalised or corrected, the property owner is unable to pass on the correct rate increases to tenants. It makes accurate budgeting and cost control extremely difficult, if not impossible, to implement. It is safe to say that certain municipalities are in a state of total administrative collapse. Inadequate billing systems further add to the chaos and turmoil experienced by property owners. How does all of this affect the property owner? In simple terms, badly – very badly. I am sure that you are all aware of these issues. Let us have a further look. Undervalued properties are the industry’s biggest nightmare. They bring about a complete distortion in the distribution of rates, and the “undervalued” get away with murder. Undervaluations are always under threat of objection by either the municipality or the owners. Remember the 63 000 Jo’burg objections, all from disgruntled ratepayers seeking either revenge or fairness? On the other hand, the “overvalued” overpay grossly, burning large holes in their pockets. Overvaluations result in the tedious process of objection and appeal. It is now also quite common for tenants to challenge the municipal valuations. They enter into their own rates boycott by withholding their landlord contributions until the matter has been resolved. SOUTH AFRICAN PROPERTY REVIEW

Report Back Ben Espach_SUBBED.indd 25

2014/06/24 9:25 AM

the 46th annual SAPOA international convention & property exhibition

This causes the property owner to carry a huge cash-flow burden. Most financial officials of the municipalities across the country do not concern themselves with the correctness or accuracy of a valuation roll. In the mind of CFOs, the valuation roll is just a tool to collect rates. They simply adjust their rates budget in line with the valuation roll. A fundamental principle of the rates policy is to ensure that there is fairness and equality across the board. Yet because of the huge fluctuations and inaccuracies of the valuation roll, this fundamental objective can never be achieved. SAPOA has commendably taken the lead in challenging municipalities, and has further committed itself by appointing Rates Watch and the University of Pretoria to undertake an in-depth research project into the question of what is the cause of these unrealistic rate increases and hikes. South Africa does not currently have a monitoring body such as a valuer general. The proposed valuer general’s office will focus on land restitution and not on the much-needed monitoring of municipal valuations. Will the situation improve? In my view, no – certainly not during the current cycle of valuation rolls, and probably not for the next 10 years. What else affects the rating of a property? ● Time pressures ● Inadequate planning ● Not understanding and incorrect interpretation of legislation Most municipalities compile the valuation roll based on a draft rates policy. It often happens that the approved rates policy will differ from the draft policy. This may have a dramatic impact on the rates levied. The Ekurhuleni Municipality compiled its 2009 valuation roll on a draft rates policy, where categories were based on zoning. The approved policy, however, determined that categories be based on usage and not zoning. This was a substantial difference. As a result, there were thousands of properties that have had their rates based on incorrect tariffs. In a recent magistrate application initiated by Rates Watch, the magistrate ruled that a municipality cannot be “enriched by its own mistake”. Despite this, Ekurhuleni has made no effort to correct its mistake or undertake fair and just administration by compelling the municipal valuer to correct his mistakes. The City of Johannesburg also marches to its own drum. It has met with devastating court decisions, at huge costs to the city. The general attitude of most municipalities is to place the onus on the property owner to object, despite knowing full well that there is a major error in the implementation of their rates policy. The ratepayer assumes in all good faith that the implementation of the rates policy is correct, and very few ratepayers object to incorrect categorisation. They simply do not understand this aspect of the Rates Act at all.

The rates policy is the basis upon which rates are levied. The rates policy must be reviewed from year to year. Challenging and monitoring the rates policy is vital. In general, there is a lack of integrity and honesty by certain municipalities in implementing their rates policy. The recent bout of court cases and appeal board rulings, and the SAPOA investigation of the Polokwane valuation roll, confirm that municipalities act not only in breach of the Rates Act, but also in conflict with other legislation and the Constitution. Johannesburg municipality in particular has come under severe criticism by various judges. Rates are determined directly from the content of the valuation roll. An inaccurate valuation roll will result in grossly incorrect rates being applied. The valuation roll is therefore the key and most critical factor in the determination of fair and equitable rates. The Rates Act is very explicit regarding the effective dates applicable to properties that have been subjected to a supplementary valuation. These dates are peremptory, yet certain municipal valuers and/or their municipalities apply their own discretionary dates. In one of my recent cases, a substantial refund was obtained simply because the municipality applied the incorrect effective date. This had nothing to do with the valuation or the category of the property. How do we get back on track? How do we make cents of it? The answer is a two-stage solution. The first stage is for property owners to take control of the municipal valuation process, so that the critical systemic issues associated with property valuations and rates can be systematically addressed by the stakeholders who are best placed to do so. That is you – the property owners. The second stage is to establish a much needed monitoring body – a SAPOA “valuer’s office” (SVO). This office will: ● Control and monitor valuation standards throughout the country ● Bring about uniformity and equality ● Establish a database This two stage process will guarantee: ● Certainty of valuations ● Stabilisation of rates Let us discuss the concept of self-determined municipal valuations (SDMV). This envisages that SAPOA members will support the implementation of having municipal valuations “predetermined”. Negotiations will be held with the various municipal valuers, who will be supplied with all the necessary data for them to make an informed and accurate municipal valuation in conjunction with the negotiator. The municipal valuations will be predetermined prior to publication of the valuation roll. Supplementary valuations will also be predetermined and satisfactorily resolved, unlike the current scenario of one supplementary after another.

What are the advantages? Once the valuations have been predetermined by a team of highly specialised, experienced and hand-picked valuers forming part of a panel of valuers, the following benefits will accrue: ● No objections ● No request for reasons ● No appeals ● No valuation reviews ● Correct categorisation ● Correct implementation dates ● No adjustments to rate accounts ● No backdating of rates accounts This will bring about: ● Accurate rates budgeting and recovery ● Savings in time and money ● Market-related valuations across the board ● “Undervaluations” no longer having a competitive rates edge ● Fairness and equality in the distribution of rates ● Rates stability ● Retention and continuity of data from one roll to the next Currently, with each new appointment of a municipal valuer, data simply disappears. Furthermore, this office will monitor all SAPOA “municipal valuations” as well as the numerous rates policies throughout the country (there are approximately 250 municipalities countrywide). Data will be supplied by members to the SVO on an ongoing basis. The SVO will compile internal municipal valuations. All data will be retained by the SVO to monitor and ensure that all SAPOA municipal valuations are fair and equitable. The SVO will also monitor all relevant rates policies and establish whether the rates policies are being correctly implemented. The functions will include: ● Monitoring municipal valuations ● Collating data ● Hosting data ● Compiling internal municipal valuations ● Monitoring rates policies ● Monitoring effective dates ● Negotiating rates policies ● Education and assistance In conclusion, the rates saga will worsen before it improves. The property industry needs to take control of its own rates destiny. How? I strongly believe that this two-stage approach is the only way towards achieving this objective. SDMV is a bold and innovative step. It places control in your hands rather than in the hands of inexperienced municipal valuers. The establishment of a SAPOA valuer’s office is an exciting initiative that offers substantial benefits and rewards. The time to act is right now. Unless property owners take these initiatives, the current rates debacle will continue to spiral out of control and the tornado will continue. We need to restore the balance. If not, there will be no making cents of it at all. In the words of Nelson Mandela, “It seems impossible – until it’s done.”

SOUTH AFRICAN PROPERTY REVIEW

Report Back Ben Espach_SUBBED.indd 26

2014/06/24 9:26 AM

A HUGE

THANK YOU FOR THE BURSARY FUND PLEDGES Total pledged in one day at the 46th Annual SAPOA International Convention and Property Exhibition

R725,000

R50,000

R10,000

City of Cape Town Growthpoint Stanlib Bakgatla Properties on behalf of Moruleny City Stellenbosch University Old Mutual City Properties JHI Properties Standard Bank Iprop Dijalo Property Services

Sterikleen Interpark Excellerate Facilities Management AMA Architects

R5,000 Enforce Security SAPOA, R100 per delegate

For companies wishing to continue or help contribute to the fund please send your pledge to bursaryfund@sapoa.org.za

Bursary advert-rev.indd 1

2014/06/24 9:30 AM

Concrete Xcellence excellence awards

L WINN ERAL ER OV

ALL GREE OVER NA WA ER: RD NN WI

R: NE W IN

RATE OFFICE D EVE RPO CO LO PM E

Ticking all the right boxes, the 2014 winners of SAPOA’s Innovative Excellence in Property Development Awards prove that South Africa’s property industry is thriving in the most innovative way possible

he South African built environment is a very loud

place at the moment as iconic, aesthetically beautiful, sustainable and, above all, innovative buildings are screaming for attention – and they are being heard. The winners of this year’s SAPOA Innovative Excellence in Property Development Awards are prime examples of how South Africa’s property industry is on par with the rest of the world in terms of top design, modern architecture, forward-thinking sustainability and contemporary sexiness. Over the next few pages, relish the country’s latest concrete cream

Retail Development Winner:

RETAIL DEVELOP ME ER: NT NN WI

Cradlestone Mall

Cradlestone is located in the area vernacular of the Cradle of Humankind, which was the starting point for the philosophy that underpins the design concept. The identity of the centre is derived from the evolutionary finds in the area, and is subtly incorporated in the contemporary design elements that make up the façade, floors and roofscapes of the visual portion of the design aspect. Furthermore, the planning of the centre adheres to proven retail flow and layout. Developer Sasol Pension Fund Architects Bentel Associates International Project manager Sedgeley Developments Quantity surveyors SVR Quantity Surveyors Civil engineers ILIFA Africa Consulting Engineers Structural engineers Sutherland Engineers (Pty) Ltd Mechanical engineers Wingrove Consulting Engineers Other consultants Techworld Consulting Engineers, Watsol Design Technology, Insite Landscape Architects, Diesel Power, JJ Coetsee Town Planner, Cairnmead Industrial Consultants, Eksteen & Le Roux Principal contractors Aveng Grinaker-LTA Electrical engineers ESE Consulting Engineers Fire consultants Specialised Fire Technology Green/sustainable consultants Leap

of the crop. 28

SOUTH AFRICAN PROPERTY REVIEW

Excellence Winners rev 1_SUBBED.indd 28

2014/06/24 9:41 AM

Corporate Office Development Winner, Overall Green Award Winner and Overall Winner No. 1 Silo

No. 1 and 2 Silo are the first completed phase in the V&A Waterfront’s Silo Precinct, which will soon see the redevelopment of the historical Grain Silo. The 18 500m² No. 1 Silo building was developed for blue-chip tenant Allan Gray’s new headquarters. The building has been awarded the region’s first 6-Star Green Star rating for Design from the GBCSA, and is seeking an As Built rating. Incorporating innovative green design solutions with proven technology, No. 1 Silo works with the environment, not against it. Developer V&A Waterfront Architects Rick Brown Architects, VDMMA Project managers and principal agents Mace Quantity surveyors MLC Civil & structural engineers Sutherland Engineers (Pty) Ltd Mechanical engineers ARUP Other consultants Arcus Gibb Engineers, City Think Space, Collaberation, Disability Solutions, Eco-Safety Systems, Matrix Consultant Services, Neil Schwartz Town Planning, Planning Partners, SRL, Nicholas Baumann Heritage Management, Arcus Gibb Engineers, Ecosense Environmental Practitioners Principal contractors WBHO Electrical engineers Solution Station Green/sustainable consultants ARUP

Commercial Office Development Winner:

CIAL OFFICE D MER EVE OM LO :C PM ER N EN N T WI

Alice Lane Phase One

Situated in Sandton on the corner of Fredman Drive and 5th Street, Alice Lane Phase One is set to provide a backdrop to urban exterior spaces and atria. Consisting of six floors of parking and eight floors of commercial office space, the design of the 14-storey building formed the last, very important piece of an urban puzzle. Alice Lane Phase One has been designed as a 4-Star rated GBCSA building. It includes elements such as double glazing and performance glass, careful monitoring of R- and U-values of materials, recycling of water, green parking bays, and passive heating and cooling systems. Developer Abland Architects Paragon Architects Quantity surveyors Quanticost Civil and structural engineers L&S Consulting Mechanical engineers C3 Consulting Engineers Other consultants Insite Landscape Architects Principal contractors WBHO Electrical engineers Taemane Consulting Fire consultants IFESA

The judges Pieter Engelbrecht: Growthpoint Properties Andries Schoeman: AECOM Anthony Orelowitz: The Paragon Group Beata Kaleta: DSA Architects Craig Sutherland: Sutherland Multidisciplinary Engineers Corné De Leeuw: DelQS Quantity Surveyors and Property Valuers Hashim Bham: BTKM Quantity Surveyors John Truter: WSP Group Africa Structures John Williamson: MDS Architecture Ken Reynolds: Nedbank Limited Richard Cottrill: Abland Rudolf Nieman: JHI Project Management and Sterikleen Sam Silwamba: Old Mutual South Africa Wessel van Dyk: Boogertman + Partners Architects Zinon Marinakos: DSA Architects International

: ER NN WI

TIONAL D ERNA EVE INT LO PM EN

International Development Award Winner: The Oberoi Centre

Located at the entrance of Business Bay, the commercial and hotel towers reflect a contemporary environment that cohabits the same neighbourhood as the world’s tallest building, the Burj Khalifa, and surrounding developments. The luxury business premises and five-star hotel embodies the modern face of the new Dubai and its urban precincts. It is one of the first hotels in Dubai to be awarded an “A” grade by the Dubai Municipality within the first six months of opening. The 27-storey/252-key hotel is juxtaposed against the 33-storey commercial office tower, linked by a four-level common podium.

Developer Rani International Development Co Architects DSA Architects International Project managers Confluence (CPM) Quantity surveyors Currie & Brown Civil and structural engineers Halcrow Yolles, Shankland Cox Mechanical engineers Halcrow Yolles, Shankland Cox Principal contractors Al Naboodah Contracting LLC Electrical engineers Halcrow Yolles/Shankland Cox Fire consultants Halcrow Yolles

SOUTH AFRICAN PROPERTY REVIEW

Excellence Winners rev 1_SUBBED.indd 29

2014/06/24 10:13 AM

excellence awards Refurbishment Winner and Innovative Merit Award Winner: University of Pretoria: Mining Industry Study Centre

The University of Pretoria had identiﬁed the need to improve graduate study outcomes on all levels. Due to the logistics of balancing travel time, demands on timetables and remote accommodation, it had become common for students to spend 12 hours a day on campus – and the need for an on-campus study and information centre had come to the fore. Centrally located in the engineering precinct lay the barren and defunct square, ideally situated to build the study centre. As the structure could not be demolished and wasn’t structurally adequate to support the envisaged development, the new structure needed to span the existing space and the new build needed to be effectively suspended from such. From an environmental and sustainability perspective the concept worked well, and an existing problem was turned into an opportunity as the storm water run-off was re-engineered into a wetland. The wide louvred roof overhangs work as shading devices and counter the particularly nasty orientation. The form will be echoed with the placement of two Acacia abyssinica on either side of the entrance.

: REFURBISHME NER NT WIN

ALL ER OV

VATIVE MER IT A INNO WA RD

Developer University of Pretoria: Facilities Management Architects ARC Architects Pretoria (Pty) Ltd Project managers ARC Architects Pretoria (Pty) Ltd Quantity surveyors Pentad Civil and structural engineers Aurecon Mechanical engineers Spoormaker and Partners Other consultants Delport Du Preez & Associates Principal contractors Robenco Construction Electrical engineers CA du Toit Fire consultants Chimera Fire Protection

Other Development Winner: New Engineering Building R DEVELO OTHE PME ER: NT NN WI

Developer University of Cape Town Property and Services Architects SAOTA Project managers LMC Project Management Quantity surveyors LDM Civil and structural engineers Sutherland Engineers (Pty) Ltd Mechanical engineers Solution Station Principal contractors Filcon Projects Electrical engineers Solution Station Fire consultants Keith Fletcher & Associates cc Green/sustainable consultants Agama

The new faculty building houses the civil engineering department, the overflow of the neighbouring chemical engineering department and the dean of the faculty. The development includes primarily academic offices and laboratories, as well as formal and social learning spaces. Departments are arranged around a southern-lit atrium and a prominent east-west break in the building, which allows views to the mountain. The laboratories are situated on the western edge of the building, while the southern and eastern edges are predominantly used as office space. The lower atrium and adjacent courtyard are activated by a social learning space on the entrance level that overlooks the civil engineering laboratories below. The upper campus building vocabulary and proportions are underlying in the architectural palette, although they’ve been reinterpreted and expressed in a more contemporary way. Inspired by the mountains behind (and the tectonic movement that created them), the external walls are expressed as heavy plates that delaminate towards the south, opening the internal spaces towards the mountain views, and allowing new connections to be made to the campus fabric and landscape. The prevalent UCT tiled roof is deconstructed and expressed as planes that float over the traditionally rendered walls.

SOUTH AFRICAN PROPERTY REVIEW

Excellence Winners rev 1_SUBBED.indd 30

2014/06/24 10:00 AM

Residential Development Winner: No. 2 Silo

TIAL DEV SIDEN ELO : RE PM ER EN NN T WI

No. 2 Silo is one of the first developments in the new Silo Precinct of the V&A Waterfront. The building is the V&A’s first residential development in more than five years (since the completion of the Marina Residence development). It is also the first residential development in South Africa to be assessed using the GBCSA Multi-Unit Residential v1 Design Rating tool and to receive a 4-star rating for design. No. 2 Silo shares many of the green features of the adjacent No. 1 Silo – but it also has its own unique green features, from water-efficient showers and energy appliances to a solar-heated rooftop pool and water-wise garden. The development consists of 31 apartments – seven storeys of one- and two-bedroom apartments ranging in size from 70m² to 157m². Built on the edge of the working harbour and its historic, textured dockside, No. 2 Silo is an inspired architectural achievement aimed at the discerning resident and investor.

Developer V&A Waterfront Architects Rick Brown Architects, VDMMA Project managers and principal agents Mace Quantity surveyors MLC Civil and structural engineers Sutherland Engineers (Pty) Ltd Mechanical engineers ARUP Other consultants Arcus Gibb Engineers, City Think Space, Collaberation, Disability Solutions, Eco-Safety Systems, Matrix Consultant Services, Neil Schwartz Town Planning, Planning Partners, SRL, Nicholas Baumann Heritage Management, Arcus Gibb Engineers, Ecosense Environmental Practitioners Principal contractors WBHO Electrical engineers Solution Station Green/sustainable consultants ARUP

Industrial Development Winner: Grundfos South Africa

The multinational group Grundfos, one of the world’s leading pump manufacturers, was looking for a new hi-tech industrial facility in Gauteng to serve as its head office and assembly and distribution facility in sub-Saharan Africa. The proposed site in Meadowbrook had excellent exposure along two major highways, the junction between the N12 and R24.The GBCSA 5-star Green Star rated facility consists of 9 684m² of warehouse and office space. For Growthpoint, developing a new state-of-theart facility on such a prominent site was of primary importance. The emphasis was on developing a landmark facility while exceeding the customer’s expectations in terms of design and operating costs. The site, previously occupied by a heavy industrial user, had to be redeveloped to reflect a world-class 10 000m² industrial asset that also added value to the surrounding residential community. Integrating the client’s products, including pumps to the fire set, water-recycling facility and watertreatment plant, was an important requirement in the design. An excellent professional team and an equally professional contractor have delivered a final product that exceeds expectations of both the customer and the property owner. It’s an example of what future hi-tech industrial facilities will look like.

RIAL DEVE DUST LOP : IN ME ER NT NN WI

Developer Growthpoint Properties Architects Empowered Spaces Project managers Growthpoint Properties Quantity surveyors AECOM Civil and structural engineers Aurecon Mechanical engineers Aurecon Principal contractors WBHO Electrical engineers Conscius Consultants Fire consultants Specialised Fire Technology Green/sustainable consultants Aurecon

SOUTH AFRICAN PROPERTY REVIEW

Excellence Winners rev 1_SUBBED.indd 31

2014/06/23 10:11 AM

excellence awards

ALL ER OV

Innovative Merit Award Winner: UTi Pharma

Intaprop’s development of UTi Pharma’s new world-class warehouse at Meadowview Business Estate in Linbro Park required a strong understanding of the client’s complex operations and bespoke innovation to develop a strategically located efficient distribution-boosting facility that also allowed for future growth to the highest pharmaceutical standards. This resulted in the design of the R573-million, 43 500m² head office and distribution campus in Intaprop’s Meadowview Business Estate. Completed in October 2012, the facility is designed to be energy-saving, improve productivity and optimise space, efficiency and flexibility for future growth.

VATIVE MER IT A INNO WA RD

Developer Intaprop Architects GLH Architects Project managers Coffey Projects Quantity surveyors BTKM Civil and structural engineers L&S Consulting Engineers Mechanical engineers C3 Consulting Engineers Other consultants Insite Landscape Architects, Singisa Environment Principal contractors Tiber Bonvec Construction Electrical engineers Taemane Consulting Fire consultants TWCE Consulting Engineers

Innovative Merit Award Winner: Tshedimosetso House VATIVE MER IT A INNO WA ALL RD ER OV

Developer Growthpoint Properties Architects ADO Architects, S&A Architects, Urban Concepts Architects Project managers Akwaba Africa Properties Quantity surveyors AECOM, Lindile Mteza & Associates Civil and structural engineers EDS Engineers Mechanical engineers Aurecon, MCE Group Principal contractors Murray & Roberts Construction Electrical engineers Conscius Consultants, Eksteen & Le Roux Fire consultants Aurecon Green/sustainable consultants Aurecon, S&A Architects

Tshedimosetso House is a six-storey building comprising approximately 17 000m² GLA of office space in a doughnut plan with a central atrium. The building embodies the focus on integration of the urban context, heritage sensitivities and a balanced technological input. Public artwork is provided as part of the building’s place-making. The public artwork on the corner, a visualisation of the Fibonacci sequence, strengthens the urban identity of the building. The site contained three houses that were demolished, but the original archways were integrated into the design and the material into the street façade of the new building as part of a heritage celebration. Photovoltaic cells are integrated in the glassing of the façade, an “African first”, and have been linked to a research study by the University of Johannesburg to evaluate the appropriateness of this technology in South Africa. Façade construction system ETICs are used, hugely improving the building’s performance. Through the juxtapositioning of technology and heritage, the building embodies the design aim of integration and sensitivity. The resulting building design is an amalgamation of site, heritage and technological influences, contributing to one of the first 4-star Green Star rated buildings in the capital.

SOUTH AFRICAN PROPERTY REVIEW

Excellence Winners rev 1_SUBBED.indd 32

2014/06/24 10:17 AM

RANSFOR MAT ALL T ION VER :O AW ER AR I NN

Overall Transformation Award Winner: D

Noswal Hall

Noswal Hall, Zenprop’s first landmark student accommodation development, accommodates 399 residents across 19 floors. Approximately 170 flats are configured into bachelor units, two-bed sharing units, three-bed sharing units and four-bed sharing units. Noswal Hall is situated directly across the road from the main campus of the University of the Witwatersrand. Its close proximity to the university makes it an attractive offering for Wits students seeking affordable, modern, easily accessible accommodation. Each unit has a kitchenette equipped with an integrated mini fridge, microwave oven and two-plate stove The building’s distinctive Mondrianthemed façade has become an icon across Braamfontein’s skyline.

Developer Zenprop Property Holdings (Pty) Ltd Architects Empowered Spaces Project managers Capex Projects Quantity surveyors Walker Mare Civil and structural engineers DG Consulting Engineers Mechanical engineers Adaptive Resource Engineering Other consultants AR & Associates, Comprac, iSpaces Principal contractors Duncanrig Electrical engineers Quad Africa Fire consultants TWCE Consulting Engineers

Heritage Award Winner:

New Military Health Base Depot for SAMHS This government project entails the design and construction of the new Military Health Base Depot for the South African Military Health Service in Thaba Tshwane, Pretoria. SAMHS required a larger, more secure and modern base to ensure optimum functioning. An existing military property of 64 571m² in Thaba Tshwane was selected as the most suitable site. A number of the existing buildings on site were identified to have significant heritage value and had to be retained in the new design. Requirements were met through a campustype development with 12 buildings of different sizes and functions, including five heritage buildings being restored and creatively adapted for re-use.

Developer Department of Public Works Architects Impendulo Design Architects, Jeremie Malan Architects Project managers Jeremie Malan Architects Quantity surveyors Mokate Monk & Du Plessis Civil and structural engineers Ntsu Engineering Consultants, Civil Concepts, Emzansi Engineers Mechanical engineers JP Partnership, Mnjiya Consulting Engineers Principal contractors Liviero Construction Electrical engineers Ukhozi Consulting Fire consultants Mnjiya Consulting Engineers Green/sustainable consultants WSP Consulting Engineers

ERALL HERITAG EA : OV WA ER RD NN WI

SOUTH AFRICAN PROPERTY REVIEW

Excellence Winners rev 1_SUBBED.indd 33

2014/06/24 10:15 AM

arc architects

Arc Architects Pretoria has a good story to tell “W

e are honoured to have been awarded the winner of the refurbishment category and Overall Merit award for innovation in engineering, for the University of Pretoria Mining Industry Study Centre,” says Anton de Jongh, MD of Arc Pretoria. “We’ve also been short-listed in the refurbishment category for Sanlam Life Insurance’s Norwich Place at 66 Grayston Drive and conceptually associated with Growthpoint Properties’ Tshedimosetso House development, which received an Overall Merit award of innovation in green design.” The specific challenges associated with the UP Study Centre were that the centre needed to be erected on top of an existing concrete roof not designed to accommodate such a structure. This was accomplished by utilising 43m flat arches over the existing structure and partially suspending the centre. The storm water run-off around the centre was designed as a reed-bed filter system, with ponds that accommodate the fauna and flora that forms part of the botanical garden. The utilisation of photovoltaic glass is deemed a South African first. The award of Overall Innovative Excellence is indicative of the practice’s approach always to expand on convention within the parameters of client requirements and financial restraints. The practice is currently involved with projects nationally in South Africa, and expanding into Africa in the commercial and corporate office, retail, residential, leisure, mixed-use and medical fields.

West Hills Mall, Aweija, Accra With completion of the first phase of the largest regional mall in West Africa this year-end, West Hills Mall, many South African national tenants will be established in the Ghanaian retail landscape. West Hills Mall will be primarily anchored by Shoprite and local nationals Palace. Major fashion retailers will include the likes of Edcon, Woolworths Holdings, the Foschini Group, Truworths, the Azadea Group, Mr Price, Lufian, and Woodin. Many of the local banks will be represented, along with tech brands, communications providers, a forex bureau, beauticians, jewellery merchants and accessories stores. Entertainment consists of a five-cinema Silverbird complex overlooking a central square with locally established restaurants such as Sizzlers, Foods Inn, Basilissa and Barcelos. “Having paid the school fees by physically experiencing the intricacies of introducing major retail abroad over the last three years, we believe that our efforts in Ghana have paved the way for our future endeavours there,” says Pierre van Driel, director at Arc Architects.

Ecobank Ghana Limited head office building at Ridge, Accra

: REFURBISHME NER NT WIN

This development is the outcome of a successful response to an international competition that called for an ultramodern head office complex with a banking facility for Ecobank Ghana Limited. The overall objective was to produce a world-class facility that is contextually rooted and celebrates the spirit of Accra. Numerous challenges where overcome by embracing sustainable and economical building solutions that meet and exceed the needs and expectations of the end-user client. With an optimised response to solar orientation, balanced by an inside-out approach, the functional requirements as set out by the brief determined the size, site circulation, and building massing. The development, with a 15% footprint on the 1,2ha site, is characterised by two building components mediated by a multi-volume entrance atrium. The tallest building of the two houses will be the office component and will be 13 storeys high, while the second building will house the banking hall component, complimented by other public functions, such as the canteen and auditorium. The development will average about 17 500m² of usable area, two basements and ongrade parking. The development shall strive to embrace best practice in terms of green principles and shall embrace international office-space standards in its creation of an energy-efficient and high-performance building. It shall manifest as a powerful yet poetic and rhythmic addition to the Accra Skyline, embedded as a meaningful contribution to the built environment – one that shall remain timeless and contemporary.

SOUTH AFRICAN PROPERTY REVIEW

Arc Architects Advertorial 3_SUBBED.indd 34

2014/06/23 11:03 AM

arc architects

Anton de Jongh, managing director

Pierre van Driel, director

LEFT Ecobank Ghana Limited Head Office Building at Ridge, Accra BELOW AND BOTTOM West Hills Mall, Aweija, Accra (internal and external representation) OPPOSITE, FROM TOP The University of Pretoriaâ&#x20AC;&#x2122;s Mining Industry Study Centre; Norwich Place at 66 Grayston in Sandton; Tshedimosetso House, Hatfield, Pretoria

Mo Phala

Madi van Wyk

+27 (0)12 362 7350 arcpta@arc.co.za www.arc.co.za SOUTH AFRICAN PROPERTY REVIEW

Arc Architects Advertorial 3_SUBBED.indd 35

2014/06/23 11:04 AM

Untitled-1 1

2014/06/24 11:50 AM

people in profile

Nigel Holley Coffey Projects (Africa) (Pty) Ltd

Andreas Letnik Coffey Projects (Africa) (Pty) Ltd

Vaughan Davies Coffey Projects (Africa) (Pty) Ltd

Nigel Holley, general manager of Coffey’s project management team in Africa, says that Nigeria’s economy is expanding, and will possibly overtake South Africa’s. “We’re seeing a rising demand for commercial offices and shopping centres in the region,” he says. “We’ve followed our loyal South African client base into this market. It’s the complex nature of working in a fast-developing economy that our clients have had challenges with. To overcome this, we have steadily tackled the problems we encountered and, in the process, we’ve built a knowledge base and reputation that other developers are being attracted to. “South Africa is an exciting market. We’ve learnt to understand our clients’ needs and to add value to each project by delivering projects across the entire spectrum of developments – retail, tourism, industrial and commercial. “Coffey has an ISO9001 accredited quality management system and subscribes to the Green Star Building Council’s aims and objectives. We are fully supportive of all HSSE initiatives to enable our clients, consultants and contractors as well as our people to work in a safe, injury-free environment.” Some of the iconic projects that have resulted in Coffey’s project management expertise being recognised throughout Africa include: l Nedbank Corporate Head Office, Sandton, Johannesburg l Montecasino Entertainment Complex, Fourways, Johannesburg l Mahe Resort, Seychelles l Ikeja City Mall, Lagos, Nigeria l Accra Mall, Ghana l Radisson Hotel, Maputo Holley has a background in quantity surveying, both in the professional office and with contractors, and has spent more than 40 years in the construction industry, working on all types of projects across South Africa and the islands of the Indian Ocean.

Coffey Projects is one of the few project management companies with real experience in delivering investmentgrade completed projects on the African continent. Its first major retail development – The Palms in Lagos – was followed by Accra Mall in Ghana and the recently completed Ikeja City Mall in Lagos. Andreas Letnik heads up the Africa team, and is currently busy with prime retail and commercial projects for major institutional investors in Nigeria and Ghana, which are currently under construction. He has worked in the Nigerian development arena over a 10-year period, which makes his experience invaluable. His background and training is as an architect, and he was part of the multinational team that completed the landmark Tinapa retail park in Cross River State, Nigeria, which was – and still is – the largest retail development built in West Africa. Until recently, Letnik was part of the investment banking Real Estate Africa team at Standard Bank, responsible for major real estate equity investments across the African continent, before joining Coffey to spearhead its growth into the African continent. What sets Letnik and his team apart is the multifaceted experience of both technical understanding of client projects and a thorough understanding of the entire development management process applicable in the broad African context (especially when it comes to project funding, development risk and exit strategy). Although there is currently no shortage of potential realestate funding (both private equity and institutional debt funding), challenges facing most West and East African clients and sponsors revolve around development feasibility and creating a “bankable” development project. Letnik and his team therefore go beyond pure construction project management, providing development management assistance for our clients that ticks the boxes for the real estate investment community.

Vaughan Davies is a project director at Coffey Projects, with experience in a range of retail, commercial and hospitality projects. Prior to Coffey, he worked for three years in Lagos, Nigeria as the project manager for the 20 000m² shopping centre development at The Palms. Davies was also the project director responsible for the UTi Warehouse and Distribution Centre Project for Intaprop. It was an greenfield project utilising the latest concepts in design of distribution centres. With a rack-clad structure, the racking is also the structure that supports the roof and side walls. For a medical distribution facility, temperature control and design of the conveyor systems had to meet strict regulatory requirements. This required a detailed design process integrating the needs of the end-user and the design of the conveyors and the racking (sourced from Europe) with locally based architectural and engineering teams. Detailed planning, coordination and sign-off prior to construction starting ensured a successful project. Coffey is a project management firm that delivers solutions to clients’ complex needs. Much of the work involves the refurbishment or expansion of existing infrastructure. This involves keeping an ongoing business functioning while the construction work happens behind the scenes. Most clients are also looking at energy-efficient solutions to keep operating costs under control, requiring mechanical and electrical equipment to be replaced without affecting operations. From a project management perspective this requires detailed planning and management of relationships with developers, operators, facility managers, service providers, tenants, contractors, subcontractors, suppliers and the professional team. Broad-based BBE is also attracting more attention from developers and government, gearing up with the development strategy. This creates exciting opportunities for new alliances and for developing skills within the business. So while the future is uncertain and certain resources may be in short supply, the opportunities are definitely there.

+27 (0)10 593 2520 Nigel.Holley@coffey.com www.coffey.com

+27 (0)10 593 2520 Andreas.Letnik@coffey.com www.coffey.com

+27 (0)10 593 2520 Vaughan.Davies@coffey.com www.coffey.com SOUTH AFRICAN PROPERTY REVIEW

Profiles Coffey & Arup_SUBBED.indd 37

2014/06/23 11:26 AM

people in profile

Jacques Wessels Coffey Projects (Africa) (Pty) Ltd

Jaco Kemp Arup

Jacques Wessels is a senior project manager at Coffey Projects. His experience ranges from largescale commercial and industrial developments to retail and data centres. He qualified as an architect, then worked in the public sector where he headed up the Department of Public Works’ project management division in Johannesburg, before joining Coffey in 2007. Commercial developments included a medium size office block in Gaborone and Nedbank Phase 2. This project added 40 000m² to Nedbank’s Sandton head office. This building holds the distinction of being awarded the first Green Star rating in South Africa. Following on the Green Star experience, Wessels is presently managing a Vodacom project aimed at increasing the power utilisation effectiveness of fourteen mobile switching centres. This challenging project includes the introduction and testing of previously untested technologies. The new 6 000m², Tier 3 Vodacom data centre was handed over by Wessels in April 2014. This is not Coffey’s first venture of this kind. The Standard Bank data centre in Samrand was followed by data and mobile switching centres for Vodacom at Mount Edgecombe, Foreshore and Bellville. Coffey is presently involved in the design of the Eskom data centre in Megawatt Park. Coffey was the project manager for the SAPOA (innovation) awarded UTi Pharma distribution centre, which was completed in 2012. Wessels executed a watching brief for the new DB Schenker warehouse and distribution centre, which was also nominated for a SAPOA award. Coffey allocates a strong, focussed team to each of its projects and to the creation of centres of excellence within the business. Local capacity and experience is underscored and enhanced by the backing and support of the international Coffey Group.

Arup has been a key contributor to the South African built environment for the last 60 years, and is extremely proud of its past and current projects, many of which are considered market-leading. A highlight has been its work on No. 1 Silo at the V&A Waterfront. In his role as Arup’s leader for sustainable buildings business in South Africa, Jaco Kemp was the lead sustainability consultant on No. 1 Silo. He has extensive local and international experience in environmental sustainable design and mechanical building services design, having worked in Arup offices in South Africa, Australia and Ireland. “Based on my experience of 6-Star projects in Australia, I realised that we had the ingredients for something truly special on the No. 1 Silo project,” he says. “We had a client with a clear sustainability vision; a willing design team with the technical knowhow to design innovative solutions; and a contractor that was fully committed to implementing them. My fondest memory of the project was seeing the client and design teams’ excitement when they were told that we had achieved a 6-Star Green Star rating. Through teamwork and a truly committed client and tenant we created a legacy for Cape Town and South Africa that can be called world-leading in sustainable design.” Kemp is the lead sustainability consultant engineer for the Cape Town International Convention Centre expansion. He was also the lead ESD engineer for the new business school at the Nelson Mandela Metropolitan University in Port Elizabeth. The building was selected to be part of the new Green Star Public and Educational buildings tool pilot scheme, and was awarded a 4-Star Green Star rating, a first for the country in this category. Arup is an independent firm of designers, planners, engineers, consultants and technical specialists offering a broad range of professional services. Through its work, it makes a positive difference, shaping a better world.

+27 (0)10 593 2520 jacques.wessels@coffey.com www.coffey.com

+27 (0)21 409 3500 jaco.kemp@arup.com www.arup.com

Georgina Smit Arup Georgina Smit is a sustainability specialist who has been managing sustainability performance on diverse projects of interest within Arup since 2009. She is passionate about sustainable design, and has an appreciation for the role that green building tools serve as market drivers to further the sustainability agenda. Smit was part of the Arup sustainability team that delivered the 6-Star Office v1 Design rating for No. 1 Silo, and a 4-Star Multi Unit Residential (MUR) Design rating for No. 2 Silo in the V&A Waterfront Clock Tower Silo district. No. 1 Silo was the first 6-Star rating in the Western Cape and No. 2 Silo was the first residential development to be rated under version 1 of the tool in South Africa. Smit managed the Green Star submissions with effective resource strategies that deliver quantitative improvement on resource consumption and carbon emissions for both buildings. She was also part of the team that supported and facilitated a sensible sustainability approach and innovative designs, made possible by the professional team, the client’s commitment to sustainability and the contractor’s support. She is currently busy managing the As Built submission for No. 1 Silo, learning from the challenges and opportunities of translating green design into a reality. Smit won the Green Building Council of South Africa 2013 “Rising Star” award for recognised leadership in the green building industry.

+27 (0)79 523 8009 georgina.smit@arup.com www.arup.com

SOUTH AFRICAN PROPERTY REVIEW

Profiles Coffey & Arup_SUBBED.indd 38

2014/06/23 11:26 AM

Technical specifications Minimum flow pressure: Volumetric flow: Flow time:

Protronic-S AQUA130 Hands Free Hot and Cold Metering Tap Protronic-S mains-independent, optoelectronically-controlled washbasin mixer DN15 with theft-proof aerator with integrated flow rate regulator. Wash basin mixer with battery operation. Self-closing single mixer

1.0 bar 0.10 l/s at a flow pressure of 3 bar 1â&#x20AC;&#x201C;15 adjustable

Aqualine-S AQUA201 Self-Closing Pillar Tap Noise group I, for wash systems, with aerator and flow straightener. Optionally for connecting to cold water or pre-mixed warm water. Self-closing functional cartridge, pistonfree design, with automatic and backlash-free closure. Adjustable flow duration. Full metal construction, polished chromium-plated brass. Self-closing pillar tap

Aqualine-C AQUA203 Self-Closing Pillar Tap Noise group I, for wash systems, with aerator and integrated flow controller. Optionally for connecting to cold water or premixed warm water. Self-closing functional cartridge, pistonfree design, with automatic and backlash-free closure. Adjustable flow duration. Full metal construction, with twist-proof operating element, polished chromium-plated brass.

Noise group I, for wash systems, with angled outlet and aerator with flow straightener. Optionally for connecting to cold water or pre-mixed warm water. Self-closing functional cartridge, piston-free design, with automatic and backlash-free closure. Adjustable flow duration. Full metal construction, polished chromium-plated brass.

Self-closing pillar tap

Self-closing bib tap

Aquamix-C AQUA202 Self-Closing Hot and Cold Pillar Metering Tap

Untitled-1 1

Aqualine-S AQUA205 Self-Closing Bib Tap

Aquamix-S AQUA200 Self-Closing Hot and Cold Mixer

For wash systems, as a basin mixer with aerator with integrated flow controller. For connecting to the hot and cold water supply. Self-closing mixing cartridge, piston-free design, with automatic and backlash-free closure. Adjustable flow duration. With finely adjustable and twist-proof temperature stop. Full metal construction, polished chromiumplated brass. Optionally with connecting hoses or connecting pipes, connecting pieces with integrated non-return valves and dirt strainers.

Self-closing single mixer

2014/06/24 11:52 AM

franke advertorial

ZIP HydroTap:

instant, filtered chilled and boiling water The ZIP HydroTap: the leading instant boiling water producer in Africa for more than 30 years; a leading international brand backed by Franke After Sales

o more waiting for water to boil. No further need to buy bottled water. ZIP HydroTap brings you boiling filtered drinking water, all from the tap! The HydroTap’s five-micron filter system removes impurities but leaves essential fluoride, giving you healthy, filtered boiling and chilled water instantly. Impurities such as dirt, rust, chlorine and micro-organisms are not good for you – they also affect the taste of what you eat and drink. The HydroTap is up to 40% more energy-efficient than a kettle, and a safety lock makes it safer as it stays cool to the touch. It’s the smart way to bring better taste into your kitchen.

Healthier

Automatically sleeps when unused

For healthier drinking, ZIP HydroTap now filters your water 25 times finer. It’s the world’s last word in water filtration.

After two hours of not being used, ZIP HydroTap either powers down to maintain boiling water at 64°C, or hibernates (powers off completely).

ZIP HydroTap at work

Five-micron filter

ZIP HydroTap offers you the option of chilled filtered water as well as boiling filtered water – instantly.

Using a sub-micron filter in areas with excessively high levels of sediment in the water supply may require the filter to be changed more frequently than practical. In such areas, a five-micron filter may be substituted after the first filter change. The ZIP five-micron filter removes general contaminants and sediment, plus chlorine taste and odour, but will not filter out parasites such as cryptosporidium and giardia.

Simpler

Boiling: Boiling filtered water is available instantly for tea, coffee, soup and cooking. No more time wasted waiting for water to boil – ZIP HydroTap makes it efficient! Chilled: Crystal-clear, great-tasting chilled filtered drinking water is always on tap. No money is wasted on bottled water, and no time is spent off the job hunting for water.

Safer A unique safety lock eliminates the risk of accidental discharge of boiling water. You need to press both the red lever and the “safety” button at the same time for access to boiling water. Press the blue lever for chilled filtered water. The lever action tap gives you simple fingertip control for filling a glass, jug, carafe or bottle to just the right level without splashing or waste. Prevent your hands being exposed to steam when filling pots with boiling water: flick up the red lever, and boiling water runs “hands-free” continuously for pre-set period of between five and 15 seconds. You can limit boiling water access whenever you wish. To make boiling water unavailable when your kitchen is unattended, it’s easy to turn the boiling water isolation feature on and off.

Sub-micron filter • Removes impurities smaller than one-thousandth of a millimetre, including cryptosporidium and giardia. • Reduces dirt, rust, asbestos fibres and other suspended impurities. • Removes chlorine plus other tastes and odours to leave water crystal-clear and odourless. • Reduces common limescale buildup inside the tank.

Greener Beyond comparison for energy efficiency, ZIP HydroTap also stamps out water wastage, leading the world in sustainable technology.

Advanced technology cuts power consumption Power-Pulse™ electronic technology controls power phasing precisely to minimise energy consumption and power costs.

Enjoy more precise temperature control Power-Pulse™ also regulates boiling water temperature more precisely than before, maintaining the set temperature within 0,2°C.

Slow-flash light signals hibernation mode Touch the controls and the system awakens. Blue and red lights flash, and then remain steady when boiling and chilled temperatures are okay.

Programmable 24/7 weekly timer Turns the power off during periods your kitchen is not in use – on weekdays or overnight, or during periods when you are away.

Free Flow bottle-filling feature The “Free Flow” feature now incorporated into all ZIP HydroTap models allows you to fill bottle after bottle with filtered cold water, even when the rated chilled water capacity is exceeded.

Cuts down water wastage, too Every drop of water is dispensed at the set temperature so there is no water wasted running a tap until the temperature is right.

An air-cooled system not water-cooled Air-cooled systems never dump water into the drain, as watercooled systems do. It’s far more environmentally responsible.

Smarter With ZIP power-saving technology and “Sleep Mode” active for 10 hours in 24, the ZO HydroTap costs very little to run.

More choices Which ZIP HydroTap is right for your office, showroom, canteen or waiting room? ZIP offers the world’s most comprehensive range of boiling and chilled filtered water systems for any workplace.

Automatically calculates boiling point Because boiling point varies by altitude, ZIP HydroTap pinpoints boiling point during installation and sets its controls accordingly.

Boiling water temperature is adjustable During installation, boiling temperature can be varied from 99°C to 68°C if a lower temperature is preferred. Factory setting is 98°C.

The range includes: l ZIP Commercial HydroTap l ZIP Commercial HydroTap II l ZIP BoilTap l ZIP Residential Compact 2

Featured commercial project The Porsche Centre Johannesburg, situated in Randburg, was completed in April 2008 by architectural company Empowered Spaces, and outfitted with ZIP products. As part of its mission to ensure the growth of the Porsche brand in South Africa and to provide all Porsche customers with an exceptional ownership experience, Porsche offers a full range of services at the centre. Feel free to visit the centre and enjoy a cup of coffee made from the ZIP HydroTap. Porsche runs a modern sales office and workshop to ensure that quality products can be serviced and maintained. The ZIP HydroTap with under-counter unit is sleek in design and matches the image of the dealership.

ZIP distributed by Franke Kitchen Systems (Pty) Ltd +27 (0)861 372 653 www.zipsa.co.za enquiry.fsa@franke.com

SOUTH AFRICAN PROPERTY REVIEW

Knight Franke Advertorial_SUBBED.indd 40

2014/06/23 11:08 AM

We’re transforming a Sandton landmark to create one of Africa’s finest workplaces

Introducing Atrium on 5th, the bold reinvention of the iconic Sandton

Twin Towers office complex. With unrivalled business infrastructure, a

prestigious location close to Sandton City and the convenience of Gautrain station, the significance of this influential address cannot

be underestimated. Designed with P-grade specifications to achieve a 4-star green rating, this 13-storey architectural landmark offers

sustainable solutions for discerning tenants. Atrium on 5th presents a

rare opportunity to work in in the hub of Africa’s commercial precinct.

Building completion date August 2014. Call now for leasing enquiries:

Queen Mjwara O83 282 5924 queen.mjwara@liberty.co.za Michelle Grainger O82 775 3885 michelle.grainger@liberty.co.za

Proud property owners

ATRIUM.05.14

Untitled-1 1

2014/06/24 11:56 AM

sapoa journalist awards and exhibitor stand winners

Winning wordsmiths and exhibitor excellence SAPOA pays tribute to South Africa’s top property journalists and leading publications as well as the best exhibitor stands at this year’s 46th Convention

he winners of the annual SAPOA Property Journalism Awards were recently announced at the 46th Annual SAPOA International Convention and Property Exhibition in Cape Town, as the commercial property sector honoured and recognised the dedicated and professional members of the media who have contributed immensely to the industry. Sponsored by JHI Properties, the Awards saw entries increase from 27 to 37 across the spectrum, with the most hotly contested category being the Property Feature Journalist of the Year, which received 14 entries.

The categories, respective winners and special mentions Property News Journalist Category Business Day’s Joan Muller was praised for her unwavering standard of quality journalism, newsworthy content and thorough investigation into pertinent property issues. Former winner in the category and esteemed property journalist Elma Kloppers from Sake24/Beeld received a special mention in this category.

Property Feature Journalist Category Mary Anne Constable, features writer for the Journal Of Facilities Management, won the award for her fresh style of writing and thought-provoking articles that the judges felt were well presented. Candace King, publications editor of the South African Property Review and Property Developer, received a special mention in this category.

Best Property Publication Category Shopping SA, the official journal of the South African Council of Shopping Centres, was a clear winner for what the judges described as a good range of informative and wellresearched content. The publication’s relevance to the sector scored it paramount with the panel. Earning a special mention in this category was the Real Estate Magazine.

Property Online News Category SA Commercial Property News impressed judges with its comprehensive site, which they felt presented a wide variety of current and topical property information. Its neat, visually appealing, easy-to-navigate structure earned it top place in the category. Property Wheel received a well-deserved special mention in the category Property Online News.

FROM TOP Joan Muller with Neil Gopal, Estienne de Klerk and Nomzamo Radebe; Mary Anne Constable with Neil Gopal, Estienne de Klerk and Nomzamo Radebe; Marianne Norton, editor of Shopping SA, with Neil Gopal, Estienne de Klerk and Nomzamo Radebe; Ortneil Kutama, media director at SA Commercial Prop News, with Neil Gopal, Estienne de Klerk and Nomzamo Radebe

The judging panel Nomzamo Radebe, managing director at JHI Properties; Rob Rose, editor of Business Times; Vernon Matzopoulos, head of Business Day TV; Mark Pettipher, managing director of Design & Photography Services; Brian Azizollahoff, managing director at Capstone Property Group and SAPOA Journalist Awards Committee chairman

SOUTH AFRICAN PROPERTY REVIEW

Stand & Journalist Winners_SUBBED.indd 42

2014/06/24 9:33 AM

Crane

SAPOA Journalist Awards and Exhibitor Stand Winners

Crane Construction Consultants Crane Construction Consultants is a leading quantity surveying and project management consultancy. Established in 1999, the company offers a full spectrum of feasibility studies, cost management, programme management and reporting across seven sectors including Retail, Infrastructure, Education, Healthcare, Leisure, Residential and Workplace. Based in Johannesburg, Crane has offices in most major cities in South Africa and four associate offices in Africa. The company has a Level 1 (BEE) rating and Green Building Council South Africa certifications. Some of the projects successfully completed include: Sandton City expansion and refurbishment, Greenacres Shopping Centre refurbishment, Nelson Mandela Bay Stadium, Silverstar Casino and Hotel, Gautrain, Cresta Shopping Centre refurbishment and Mbabane Office Park (Swaziland).

People Talent People at the heart of the company and Crane encourage innovation and cutting edge solutions, to provide clients with a holistic approach. To build a talent pipeline for the engineering industry, Crane Construction Consultants sponsor previously disadvantaged students with bursaries, mentorship programmes and vacation work.

Giving Back As part of its commitment to making a difference in the communities in which it operates, Crane Construction Consultants supports a number of organisations, including City Parks Johannesburgâ&#x20AC;&#x2122; George Lea Park, Kids Haven and Villa of Hope.

15 YEARS

SOUTH AFRICAN PROPERTY REVIEW

Crane advertorial.indd 1 Stand & Journalist Winners_SUBBED.indd 43

143781

Tel : +27 11 783 8220 | Fax : +27 11 783 9205 | www.craneqs.co.za

2014/05/12 4:29 PM 2014/06/23 1:10 PM

sapoa journalist awards and exhibitor stand winners Winning exhibitor stands Large stand: Standard Bank Small stand: LYT Architects Innovative stand: Growthpoint Properties Green stand: Remote Metering Solutions

CLOCKWISE FROM TOP Standard Bank, large stand winner; Growthpoint Properties, innovative stand winner; Remote Metering Solutions, green stand winner; LYT Architects, small stand winner

SOUTH AFRICAN PROPERTY REVIEW

Stand & Journalist Winners_SUBBED.indd 44

2014/06/24 9:34 AM

SAPOA Journalist Awards and Exhibitor Stand Winners

RETAIL DEVELOP ME ER: NT NN WI

Defining the way the leading property companies will manage their utilities in the future - the Smart, Guaranteed Utility Management Solution

Some of our clients that we assist in moving forward from the existing antiquated utility management model include:

GrowthpointRedefineHypropCapitalFortressSynergyTowerLibertyTotalSAPicknPayParetoEmira InvestecPremiumOctodecArrowheadCPADeltaAccelerateCheckersAttacqVukileJHIRetailAfrica AtterburyNADMoolmanGroupTwinCityKeystoneBrollMatlotloLoadstoneFrontierSpireMotseng

The Next Level of Utility Management Smart Utility Management Smart, Global Leading Information Driven Trusted Utility Management Tenant and Landlord Utility Solutions

Echelon Electricity and Sensus Water Smart and Prepaid Metering Technology and Systems

Guaranteed Service Delivery Exceeding Client Expectations

www.remotemetering.net SOUTH AFRICAN PROPERTY REVIEW

Stand & Journalist Winners_SUBBED.indd 45

2014/06/23 1:14 PM

: ies r e s ly eyerion y ca africa f nth untr A o e o Th our m by-c s yntr focu u co

Africa uncovered Angola

After almost three decades of civil war, Angola is picking up the pieces and gathering all its strength as it emerges as one of Africa’s fastest-growing economies By Candace King

Angola at a glance ▼ Population 18,1-million (July 2013 est.) ▼ Major city Luanda ▼ Currency Kwanza (AOA) ▼ Total area 1 246 700km² ▼ GDP growth (2013) 5,1% ▼ Key industries Petroleum, diamonds, iron ore, fish and food processing, textiles, sugar

ith a highly tumultuous political and economic history, Angola has risen a bit like a phoenix out of the continent’s ash pool of broken and backward African countries that have mostly all shared the same uneasy past. On the backbone of 27 years of harrowing civil war and rampant unrest, Angola is now one of the world’s leading oil producers – second-largest after Nigeria on the continent – and one of Africa’s fastestgrowing economies. After the Portuguese arrived in 1483, Angola became a major slave-trading locale during the 17th and 18th centuries. Although the slave trade was officially abolished in 1836 by the Portuguese government, Angola was not all that free as Portugal consolidated colonial control over the country between 1885 and 1930, resulting in further local resistance. 46

The Angolan people fought extensively against imperialist tyranny and occupation until the country received its independence from Portugal in November 1975. But due to internal clashes between local authorities and various political factions, Angola fell into a dirty and lengthy civil war. The political power struggle between the governing People’s Movement for the Liberation of Angola (MPLA) and the rebel group National Union for the Total Independence of Angola (UNITA) sparked one of the world’s most horrific civil wars that lasted almost three decades, resulting in at least 500 000 deaths and an economy in shambles. MPLA and UNITA were rivals even prior to gaining independence. The war eventually concluded in 2002 after the then-leader of UNITA Jonas Savimbi was killed by government troops. After both parties ceased the war, Angola began to stabilise, holding elections in 2008 and 2012 and adopting a new constitution in 2010. While there has been a gradual transition to democracy, UNITA continues to be thorn in the ruling government’s side. With the aid of oil production and oil exports as well as foreign loans (especially from the Chinese), Angola has experienced increasing economic growth and is rebuilding itself – mostly in terms of its infrastructure. After almost 12 years of civil unrest,

SOUTH AFRICAN PROPERTY REVIEW

Africa Angola_SUBBED.indd 46

2014/06/23 9:26 AM

eye on africa

351 - 395 395 - 1,110 1,110 - 5,900

MAIN IMAGE The Epupa Falls on the Cunene River, on the border between Namibia and Angola INSET MAP Population (thousands) SOUTH AFRICAN PROPERTY REVIEW

Africa Angola_SUBBED.indd 47

2014/06/23 9:27 AM

eye on africa

Luanda prime rents and yields Prime rents

Prime yields

Offices

US$150/m per month

Retail

US$120/m² per month

10%

Industrial

US$15/m² per month

12%

Residential

US$15 000 per month*

* Four-bedroom executive house – prime location

Regional summary Population

Sum (Area in km²)

Population density (Persons per km²)

Luanda

5 851

2 418

2 420

Huíla

2 098

79 022

Benguela

1 985

39 827

Huambo

1 624

35 771

Kwanza Sul

1 354

58 698

Bié

1 144

70 314

Uíge

1 101

58 698

Lunda Norte

770

103 760

Malanje

755

93 302

Cunene

648

77 213

Moxico

565

223 023

Cabinda

441

7 270

Real GDP Real GDP growth (%)

Southern Africa (%)

With a rising middle class, mostly based in the capital, Luanda, Angola desperately requires infrastructure and property development

Africa (%)

25 20 15 10 5 0 -5

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013(e)

2014(p)

the country is starting to see the emergence of a strong middle class in Luanda along with a boom in development in the capital. Economic indicators are looking good. Although below the forecast target figure of 7,1%, Angola’s GDP grew 5,1% in 2013, with a new burst expected in 2014. Growth is projected to reach 7,9% in 2014 and 8,8% in 2015 as major public infrastructure investment is implemented. The country’s extra GDP came mostly from the non-oil energy, agriculture, fisheries, manufacturing and construction sectors. However, Angola is regarded as one of the world’s poorest countries and is plagued by most of the problems common to Africa. In the capital, power outages and traffic jams occur daily. In light of energy shortages, improvements to electricity generation and distribution worth US$23.4-billion are planned by 2017. Food security is another challenge and Angola is trying to develop agriculture in order to reduce imports and feed the country. (Interestingly, Angola was the world’s fourth-largest coffee producer before independence in 1975.) Corruption is another problem – allegations have been rampant about oil revenues being squandered through mismanagement.

2015(p)

Source: Opendataforafrica.org

SOUTH AFRICAN PROPERTY REVIEW

Africa Angola_SUBBED.indd 48

2014/06/23 9:28 AM

eye on africa

The Angolan property industry Property as well as infrastructure development is making headway in Angola as a result of recent economic stability, foreign loans and investment, and oil production and trade. With the next elections set for 2017, pressure is set to increase on the government in 2014 in terms of the roll-out of substantial public infrastructure works. Several major property players, such as Aurecon, are investing time and money in the country. Having been active in Angola since 1993, Aurecon has played an important role in the reconstruction of the country.

Macroeconomic indicators 2012

2013(e)

2014(p)

2015(p)

Real GDP growth

5,2

5,1

7,9

8,8

Real GDP per capita growth

2,1

4,9

5,8

CPI inflation

10,3

9,3

8,3

7,8

Budget balance % GDP

8,7

2,4

-5

-6,9

Current account balance % GDP

9,9

5,7

4,3

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

Share of imports by country in total imports Peru 1,22 Germany 2,15 Portugal 2,73 South Africa 2,77 France 3,19 Italy 3,61 Canada 4,31 China, Taiwan Province of 9,89 United States 24,14 China 43,49

Source: Merchandise trade matrix, imports and exports of total all products, annual, 1995-2011

Ease of doing business (1 is the best) (DVH RI 'RLQJ %XVLQHVV 5DQN LV WKH EHVW

175 ĎĎłĎą 172.5 ĎĎłĎŽÍ&#x2DC;Ďą

174

ĎŽĎŹĎĎ 2011

ĎŽĎŹĎĎŽ 2012

172 172

170 ĎĎłĎŹ

ZÄ&#x201A;ĹśĹŹ Rank

Poverty and a lack of skills also hamper the country. About 36% of the population lives below the poverty line, and unemployment remains high at 26%. Policies are needed in order to alleviate the plight of Angolans, and investment is needed in skills and infrastructure development in order to improve human development. The government has begun to put strategies in place in order to improve living conditions, with investment being made to increase access to electricity, water and transport. Financial sector policies are also being transformed in order to stimulate business. A new foreign exchange currency law for the oil sector and a mining law have recently been introduced. According to the World Bankâ&#x20AC;&#x2122;s 2014 â&#x20AC;&#x153;Doing Businessâ&#x20AC;? report, Angola ranked 179th out of 189, and was placed 178th with regards to the ease of starting a business (below most regional competitors). The country will need to galvanise economic diversification and reduce the dependence on oil, which accounts for about 46% of GDP, 80% of government revenues and 95% of Angolaâ&#x20AC;&#x2122;s exports. Major challenges lie within Angolaâ&#x20AC;&#x2122;s social and physical infrastructure, which is behind the demand curve. With a rising middle class, mostly based in the capital, Luanda, Angola desperately requires infrastructure and property development. The country is investing in roads, ports and airports. By 2017, Angola is expected to attract US$4-billion a year in non-oil investments from abroad. Ports are proposed in Cabinda, Zaire and Bengo, while a new cargo terminal is operating in Viana (12km southeast of Luanda) and an international airport is being built near Viana.

168 168 167 167

167.5 ĎĎ˛ĎłÍ&#x2DC;Ďą 165 ĎĎ˛Ďą

164 164 163 163

162.5 ĎĎ˛ĎŽÍ&#x2DC;Ďą ĎĎ˛ĎŹ 160

ĎŽĎŹĎŹĎł 2007

ĎŽĎŹĎŹĎ´ 2008

ĎŽĎŹĎŹĎľ 2009

ĎŽĎŹĎĎŹ 2010

ĎŽĎŹĎĎŻ 2013

^Ĺ˝ĆľĆ&#x152;Ä?Ä&#x17E;Í&#x2014; tĹ˝Ć&#x152;ĹŻÄ&#x161; Ä&#x201A;ĹśĹŹ Ĺ˝Ĺ?ĹśĹ? ĆľĆ?Ĺ?ĹśÄ&#x17E;Ć?Ć? ĎŽĎŹĎĎŻ

The group has been involved in the construction of residential units, new roads and bridges; rehabilitation of existing roads; the construction of clinics, police stations, recreational centres, educational facilities, sports fields, shops and hotels; as well as the building

BELOW AND OPPOSITE TOP Angolaâ&#x20AC;&#x2122;s capital, Luanda, rising up after years of conďŹ&#x201A;ict, is beginning to see the beneďŹ ts of the country's oil wealth

SOUTH AFRICAN PROPERTY REVIEW

Africa Angola_SUBBED.indd 49

2014/06/23 9:30 AM

eye on africa

ABOVE Luanda’s emerging modern skyline

Water access (%)

6.5 - 25

of mining facilities, communication infrastructure and water and drainage systems. Some of Aurecon’s projects include the Nova Vida township design, construction and project management; construction supervision for a housing development of 2 500 urban units in Ondjiva, southern Angola; and the Sonangol Headquarters; as well as transportation developments such as the design and supervision of the roads between Namibe and Lubango, and the 375km of road and bridge over the Cunene River. The tourism and leisure sector in Angola is set to grow exponentially. According to figures of the World Travel and Tourism Council (WTTC), Angola is set to become an emerging holiday spot in the next 10 years. The WTTC also expects to see an annual growth in tourism of 7,3% between now and 2024.

25 - 44 44 - 59

The industrial market in Angola is quite healthy, with a strong demand for warehousing and manufacturing space as a result of expansion of industries related to petroleum, diamonds, brewing, textiles and construction 50

Retail market Angola’s retail market is still in its infancy, with a significant under-supply of modern, high-quality retail space. One of the country’s major malls, Belas Shopping Centre in Talatona, opened in 2007. Currently there are some noteworthy retail developments, including the development of Luanda Shopping, which forms part of the mixed-use Comandante Gika project in Alvalade (regarded as one of the biggest real estate projects in Angola); as well as Kinaxixi Shopping Centre in the Kinaxixi MXD Complex, Luanda. Proposed to open this month, Sky Gallery is Angola’s first luxury shopping centre, which will welcome high-end brands such as Prada, Gucci and Armani to the country. The centre is a Portuguese-Angolan investment of more than US$50-million and will boast four floors that connect three skyscrapers, 40 shops, 500 direct jobs and a commercial area of more than 11 000m².

Industrial and office market The industrial market in Angola is quite healthy, with a strong demand for warehousing and manufacturing space as a result of expansion of industries related to petroleum, diamonds, brewing, textiles and construction. Luanda’s key industrial areas are located mainly to the north of the city centre, around the Sonils port. Other zones of industrial property are found to the east (Viana) and to the south (Benfica). Strategically situated close to the planned international airport,

the Special Economic Zone at Viana was established in 2005 and is designed to ultimately accommodate 73 factories. The office sector is experiencing high demand in Luanda, especially from oil companies and banks. Strong improvements are required in the sector as many of the buildings need back-up power generators and water purifiers. There is also a major demand for quality office space; but there is a severe shortage of supply and occupation costs are among the highest in the world. With recent construction completions, some of the pressure has been eased, with rental coming down over the past year. The main commercial areas are the Ingombata and Baixa districts in the CBD, while secondary office areas include Maianga, Alvalade and Miramar. There has also been considerable development activity in the growing Talatona/ Luanda Sul area, which is considered the new prime commercial and residential district of Luanda.

Residential market The residential market is booming in Luanda, with the cost of living soaring well above cities around the world. According to Mercer’s Cost of Living Rankings of 214 cities, Luanda overtook Tokyo in 2013 as the world’s most expensive city for expatriates. Dominated by the ex-pat community, the residential sector in Luanda is characterised by high prices for villas and apartments; but new supply that entered the market in the past two years has ensured a decrease in prices. Based on a 2013 report by real estate firm Colliers, the total stock of office space moved past the onemillion square metres mark in 2012, with costs of US$150/m² per month. The report further indicates that a two-bedroom apartment with access to a generator, water tank and secure parking can cost between US$7 000 and US$10 000 per month. Prime property is located in central areas such as Miramar and Ingombata, as well as Talatona in the south, which provides lower-cost but high-quality housing and is popular with ex-pat families because of its international school and shopping centre. A current trend is that the middle class are looking for cheaper homes outside the city, and are moving to Chinese-built housing projects such as Kilamba Kiaxi. However, the infrastructure is underdeveloped and social housing estates stand empty.

SOUTH AFRICAN PROPERTY REVIEW

Africa Angola_SUBBED.indd 50

2014/06/23 9:30 AM

DUBE CITY:

DUBE TRADEZONE:

COMMERCIAL, OFFICE AND HOSPITALITY DEVELOPMENTS

DTP

BULK APPROVED

DBN

R730

MILLION

120 000M

KZN

Proposals received by 31 August 2014 will be evaluated by 30 September 2014. Proposals received thereafter will be evaluated as and when received, subject to the availability of sites.

CUBE/570/SAPOA/3

To secure a prime location â&#x20AC;&#x201C; contact Hamish Erskine or Tim Hudson: (T) +27 32 814 0000, (E) property@dubetradeport.co.za To receive a pdf of the submission details go to: www.dubetradeport.co.za/proposals

Untitled-1 1

2014/06/24 11:58 AM

Th e WOR

s●

monthly co u n t our r

series ● D L

by - country foc

While Africa is receiving most of the attention, global markets are also re-emerging, with capital and interest being injected into the veins of international real estate By Candace King

Eye on the world I

t was about a year ago that the South African Property Review launched its monthly “Eye on Africa” series – an in-depth look at each African country in terms of economics, politics, demographics, real estate, challenges and opportunities. The series was conceived out of Africa’s star status as the “next best thing” to hit the international market. Last year we reported that Africa boasts the opportunity for the highest return on foreign investment in the world – foreign direct investment has increased by about 50% since 2005. Since the global economic downturn in 2008, Africa has performed an output of six percent or more GDP growth, with minimal debt/GDP ratios. Twenty-eight percent of African countries achieved growth rates above six percent, with some rivalling the growth rate of China. Standard Chartered Bank predicts that Africa’s economy will grow at an average annual rate of seven percent over the next 20 years. We’ve written that Nigeria would prove to be the continent’s golden boy in terms of growth and opportunity, and that this was

one market to keep an eye on. Then, in April 2014, it was revealed that Nigeria’s economy was worth US$510-billion, surpassing South Africa’s nominal GDP of US$322-billion. As the continent’s most populous nation, Nigeria is now the largest economy in Africa. Over the past five years, that economy has been growing at an impressive average of seven percent. But while Africa continues to steal the spotlight, the rest of the world is experiencing a revival in terms of growth and renewed investment interest, especially in real estate. “Direct investment in real estate is almost back to pre-crisis levels and the impetus is increasingly attributable to sovereign wealth funds and institutional capital, much of it from Asia,” says Kees Hage, PwC (Luxembourg) global real estate leader. “Investment is surging around the world.” Hage highlights that US real estate recovery is set to continue this year, with investors increasingly looking beyond some of the traditionally popular cities to secondary markets in search of higher yields.

Figure 1: Relative size of institutional-grade RE per region

“Direct investment in real estate is almost back to pre-crisis levels and the impetus is increasingly attributable to sovereign wealth funds and institutional capital, much of it from Asia. Investment is surging around the world” Kees Hage, PwC (Luxembourg) global real estate leader

Source: PwC analysis

Figure 2: Proportion of the world population aged 60 years or over

Source: UN report, World Population Ageing 1950-2050

SOUTH AFRICAN PROPERTY REVIEW

Eye On The World_SUBBED.indd 52

2014/06/23 10:26 AM

eye on the world

Figure 3: The top 10 cities for commercial property investment across the world in 2013

Real Capital Analytics â&#x20AC;&#x201C; Global Capital Trends 2013 SOUTH AFRICAN PROPERTY REVIEW

Eye On The World_SUBBED.indd 53

2014/06/23 10:27 AM

eye on the world “It says something about the improving conditions and confidence in European real estate that the biggest perceived issue facing the industry is a shortage of prime assets to buy,” he says. “Real estate fundamentals in Asia-Pacific are expected to remain strong in markets throughout Asia in 2014, with stiff competition for core assets in prime markets prompting some investors to look beyond the mainstream for acceptable returns.” According to PwC’s “Real Estate 2020: Building the Future” report, the global stock of investable real estate will rise by more than 55% to about US$45,3-trillion by 2020, up from US$29-trillion in 2012, and will expand again by a similar proportion by 2030. “Expansion will be greatest in emerging economies, where economic development will lead to better tenant quality and, in some countries, clearer property rights,” says Hage. “It will play out across housing, commercial real estate and infrastructure.” Kees Hage, PwC (Luxembourg) global real estate leader

The report also finds that private capital will step in to fill the gap left by banks and insurers as a result of Basel III, Solvency II, the Volcker rules and other regulations requiring a reduction in exposure to real assets. In the Middle East and North Africa, PwC predicts total investable real estate will rise by 62% to US$2,5-trillion by 2020, from a 2012 total of US$1,5 trillion. According to the latest edition of “Emerging Trends in Real Estate: The Global Outlook for 2014”, produced annually by the Urban Land Institute and PwC, the two biggest sources of capital flows are the US and China, with the latter accounting for 35% of global volume. The report notes that, according to Real Capital Analytics (RCA), sales of large-lot-size commercial property around the world totalled more than US$1,1-trillion in 2013, surpassing the trillion-dollar mark for the first time since 2007. The strength of the US, revival of transactions in Europe and massive volume of land deals in China all contributed to this upturn in activity.

Figure 4: Relative GDP per region

Global mega-trends will change the real estate landscape considerably over the next six years – and beyond Source: PwC analysis

Figure 5: Annual average housing completions 2012-2025

Ilse French, PwC (Johannesburg) Africa real estate leader

Source: Global Construction 2015

SOUTH AFRICAN PROPERTY REVIEW

Eye On The World_SUBBED.indd 54

2014/06/23 10:33 AM

eye on the world Figure 6: Urban and rural population trends

Source: United Nations Department of Economic and Social Affairs, Population Division (2012); World Urbanization Prospects – The 2011 Revision

RCA calculates that Chinese investment in Europe alone tripled last year to €3,05-billion as developers and private individuals joined the country’s sovereign wealth funds in seeking to diversify their assets outside Asia.

Real estate’s transformation So how is the real estate landscape evolving? PwC’s “Real Estate 2020: Building the Future” report provides an analysis of the changing landscape, which will give real estate managers a broader range of opportunities, with greater risks and new value drivers.

The real estate industry is at the centre of rapid economic and social change, which is transforming the built environment. Thousands of people migrate to cities across Asia, the Middle East, Latin America and Africa daily, attracted by the wealth of these new economies. By 2020, this migration will be firmly established. Cities in these regions will swell and entirely new ones will spring up. Meanwhile, the middle class and ageing populations in these emerging economies are increasing demand for specific types of real estate – such as affordable housing, retirement accommodation, gated communities outside

cities for families and small apartments without kitchens or parking for young professionals. Rapid urbanisation and demographic changes, especially within emerging markets, will lead to substantial growth in real estate investment over the next six years. At the same time, as the industry’s opportunities grow so too will assets invested into the sector. Intense competition for prime real estate will force real estate managers and investors to seek out new opportunities for yield. Yet the growing and changing real estate world will present them with a far wider range of risks, which they need to be equipped to manage. There will be a huge expansion in cities, with mixed results. By 2020, the 21st century’s great migration to the cities will be well under way. Cities will swell across the fast-growing countries of Asia, Africa, the Middle East and Latin America. Even the developed Western countries will continue urbanising, albeit at a slower pace. Come 2020, cities will be competing fiercely with one another. But while some cities will become centres of wealth creation in a multipolar world, others are likely to fail. Those that emerge as their region’s leading cities are likely to provide opportunities for attractive returns. Global mega-trends will change the real estate landscape considerably over the next six years and beyond. While these trends may already be evident, there’s a natural tendency to underestimate how much the real estate world will have changed by 2020. The “Emerging Trends in Real Estate” report highlights that “place-making” is already a core strategy for developers today. This multifaceted approach to the planning, design and management of public spaces is part of a wider interest in the sustainability of real estate, and is gaining in sophistication as the industry explores creative ways to ensure viability. “Place-making is one of the biggest themes in the post-crisis era,” explains Hage. “There is global interest in how good places contribute to health, productivity and consumer activity. Developers are embracing green spaces, pedestrian areas, ‘green’ infrastructure and independent traders, beneficial to retail and office occupiers alike, to attract users to new schemes.” Understanding the needs of tenants will be crucial to creating an environment in which people enjoy working. Specialised skills in design that uses technology solutions and incorporating sustainability and a “green” focus should be considered. There is increased focus on an “agile” working environment, which takes into account the fact that, as workers increasingly work from SOUTH AFRICAN PROPERTY REVIEW

Eye On The World_SUBBED.indd 55

2014/06/23 10:36 AM

eye on the world

home or satellite offices, the need for office space will decrease. Another important aspect is understanding the economics of cities, especially infrastructure, and investing in office developments where infrastructure, including roads and public transport, are adequate to meet the long-term needs of developments in the area. The report considers that, beyond 2020, the generation that has grown up in the digital world will dominate consumer spending and the culture of work. Social networks will help to determine where and how people will want to live, work and recreate. Telecommuting will become more practical – for example, as a result of being able to access database applications easily through tablets and computers. “It’s no coincidence that Google wants to position itself at King’s Cross, in the heart of London,” says Hage. “In its hunt for space, the online search group wanted an environment that encouraged ‘causal collisions of the workforce’. The new neighbourhood would offer Google’s 4 500 employees access to a street-food thoroughfare, public transport, canal-side hang-outs and choreographed water fountains. Pop-up cafés and outdoor sports areas are also part of the mix.”

South African real estate Where does South Africa stand amid the trends and transformation in the global arena? While the country has its share of problems, our property industry is booming, especially in the listed sector. Figure 8: International trends in total population

Source: Author’s calculations

According to the SA REIT Association, recent years have seen South African listed property outperform other sectors with average annualised returns for the five years to 2012 of about 16,2%, (compared with the All Share performance of 9,6% and the All Bond performance of 10,9% over the same period). In 2013 we saw returns fall to about 7,1% with prospects for 2014 being at similar levels, assuming there is no significant change in the GDP forecast. On a global front, the UBS Real Estate Investor Index global listed property notes that foreign REITs outperformed South African REITs in 2013 with total returns in rand terms of 22% on the back of a weakening rand and economic recovery in key markets, including the US, the UK and Germany. Global REITs are expecting annual earnings growth of about eight percent for the next three years (in US dollars). This, plus the expectation of a furtherweakening rand will make global REITs more attractive than their local counterparts. “Notwithstanding the decline in returns of local listed property from historical highs, the local listed property industry is expected to grow significantly in size between now and 2020, following similar trends expected in global markets,” says Ilse French, PwC (Johannesburg) Africa real estate leader. She highlights that some of the most important trends in the South African real estate market include increased consolidation to achieve economies of scale; an increase in the number of REITs; and new developments taking place based on infrastructure availability, making position become ever more important.

“We are also seeing an increased interest in residential developments from foreign investors,” she says.

The biggest challenges for our industry The drive for efficiencies, with costs such as rates and taxes increasing above inflation, will necessitate economies of scale. This will drive consolidation in the industry, says French, adding that slow economic growth reduces demand for real estate, while the simultaneous increases in interest rates will further negatively impact value and demand. Availability and cost of capital could drive consolidation and listing of property funds as banks and insurers are impacted by changing solvency regimes. The industry also faces a wide range of skills shortages, from facility managers to executive level.

Is Africa really the next big thing? “Our ‘Real Estate 2020’ report suggests that sub-Saharan Africa will be the biggest growth region, with growth of 90% from 2012 levels to 2020,” says French. “However, as this is from a very low base, investable real estate will still be under US$1-trillion by 2020, making up approximately 1,5% of global investable real estate. Real estate growth in Africa will be mainly driven by retail and residential demands.” Huge growth in African cities is forecast but infrastructure will need to be developed. The retail market remains challenging. The majority of the retail market in subSaharan Africa is still informal, with the exception of South Africa, where a fairly large proportion of the retail market is modern, mature and very competitive. In response to slowing growth, many South African retailers are increasingly looking to the rest of Africa for returns, but their expansion has been slow because of a lack of shopping malls and a weak supplychain infrastructure. Many are operating in tandem with property developers, opening up in parallel with new mall developments and shopping complexes. Local knowledge will be essential for those wanting to invest in Africa. Partnering with local people who are well connected to their local markets and local regulations will be important. The countries that are currently showing the most potential for retail are Nigeria, Ghana and Kenya, mainly because of their large populations, relatively high GDP growth rates, increasing urbanisation and infrastructure.

SOUTH AFRICAN PROPERTY REVIEW

Eye On The World_SUBBED.indd 56

2014/06/23 10:38 AM

Untitled-1 1

2014/06/24 12:00 PM

gdp report

Real estate

and the South African economy In light of the commercial real estate sector’s role as a highly important economic contributor, SAPOA has produced an in-depth GDP Report on the industry’s impact on the South African economy By Candace King

Dr Douw Boshoff, senior lecturer at the Department of Construction Economics at the University of Pretoria

The essence of this study was to provide a view of the overall activity that is taking place in the sector, and how this feeds into the economy and contributes to economic activity and job creation

ith the commercial real estate sector’s continuous growth and influence on the South African economy, SAPOA saw the need to produce a GDP Report to highlight the sector’s economic impact. The organisation approached Business Enterprises at the University of Pretoria to conduct a detailed analysis of the contribution of commercial real estate, which only forms part of the sector, to the South African economy. Sponsored by Broll, STANLIB, Standard Bank and Crane, the “SAPOA GDP Report: The Economic Impact of the Commercial Real Estate Sector on the South African Economy” clearly shows that the real estate sector has a great influence on the local economy. The aim of this study was to provide a view of the overall activity that is taking place in the sector, and how this feeds into the economy and contributes to economic activity and job creation. The report is divided into five sections. Section 1 presents an executive summary; Section 2 provides a theoretical framework of the research conducted and gives an overview of the principles and methods that are applied in the rest of the report;

Section 3 provides the statistical facts in terms of activity that leads to the economic activity within the real estate sub-sector; Section 4 shows the analysis in terms of the total contribution of the sub-sector to the economy; and Section 5 attempts to provide some forecasting of short-term future activities. “Real estate is considered globally as a very important contributor to economic activity,” says Dr Douw Boshoff, a senior lecturer at the Department of Construction Economics at the University of Pretoria, who was involved in the production of the report. “Not only does it provide in the space needed for virtually all other economic activities to take place, including manufacturing, retail activities and business services, but it also, in itself, contributes directly and indirectly to economic activity and job creation. Altogether, the real estate sub-sector is reported by the South African Reserve Bank within the financial intermediation, insurance, real estate and business services sector.”

The results Prepared for SAPOA by Business Enterprises at the University of Pretoria (Pty) Ltd along with the Department of Construction Economics and the Department of Economics, the report found that during 2013 the commercial real estate sector contributed a total of R1,32-billion to the fixed capital stock of the country, while the gross fixed capital formation for the sector added R97,8-million to this figure for the same period, which represents 20,9% and 14,95% respectively of the entire economy. Of the mentioned capital formation, R69,7-million (71,2%) of the sector, is attributable to non-residential buildings. Apart from the capital investment of the sector in the economy, it has also contributed R652,2-million to the gross domestic product of South Africa during 2013, before taxes and subsidies are taken into consideration. This resulted in approximately two-million jobs in the sector, which represents 14,75% of all jobs in the economy.

SOUTH AFRICAN PROPERTY REVIEW

GDP Report_SUBBED.indd 58

2014/06/23 12:25 PM

gdp report Future forecasts The report estimates that the non-residential real estate sector will directly contribute an additional R2,75-billion to the economic activity in South Africa during 2014, over and above the activity that is already in place. In addition to this, the direct impact will also cause indirect impacts and induced impacts, causing these to increase economic activity created by the sector to R5,1-billion and R7,8-billion respectively. In line with this, the contribution to GDP will be about R2,2-billion through direct activity, R2,4-billion through indirect activity and R3,7-billion through induced activity. This will also result in a total of 13 065 new jobs being created, made up of 10 421 formal and 2 644 informal jobs. The sector will also contribute an estimated R20,8-million in net taxes, made up of R1,4-million net taxes on products and R19,3-million net taxes on production. The report further indicates that Gauteng will dominate the expected economic growth in all real estate, with KwaZulu-Natal following behind and then the Western Cape. In terms of property types, growth will be largely dominated by shopping centre development, followed by industrial and warehouse properties, then office and banking properties.

Broll’s perspective According to Broll’s foreword in the report, South Africa is expected to show a gradual increase in growth over the next two years, following several years of disappointing growth. However, this trend is not destined for South Africa alone – several countries, including South Africa’s main trading partners, have been slow to recover since the 2008 global economic recession. This has impacted South Africa’s average growth rate to a muted 2,8% since 2010. During 2013, real GDP growth was below market expectations at 1,9%. The South African Reserve Bank estimates growth to reach 2,6% in 2014 and 3,1% in 2015. Despite these slightly positive projections, the country still faces several challenges – a high unemployment rate (24,1%), labour unrest and strikes, electricity supply constraints and escalating rates and taxes are just some of the major problems that are hampering growth. There are positive signs, though. The government has set up or proposed various frameworks and plans to improve infrastructure, promote growth, reduce unemployment and unlock economic opportunities. These include the National

Development Plan, several strategic infrastructure plans, industrial development zones and special economic zones. Furthermore, new power plant developments are also under way. What is comforting is the strengthening relationship between government and the private sector, especially the property industry. With infrastructure development critical for the economy, and industrial and economic development high on the agenda, opportunities for the property sector are abundant.

The report indicates that Gauteng will dominate the expected economic growth in all real estate, with KwaZulu-Natal following behind, then the Western Cape

Figure 1: All real estate economic activity growth

Source: Author’s calculations Figure 2: Actual economic activity at current prices

Source: South African Reserve Bank Figure 3 : Actual gross domestic product at current prices

Source: South African Reserve Bank SOUTH AFRICAN PROPERTY REVIEW

GDP Report_SUBBED.indd 59

2014/06/23 12:30 PM

gdp report

Figure 4: Distribution of all property building plans passed per province

Figure 5: Distribution of national building plans passed per property type

Source: Adapted from Statistics South Africa

Figure 6: Total national building plans passed per month

Figure 7: Total value of buildings completed per province

Source: Statistics South Africa

Source: Adapted from Statistics South Africa

Figure 8: Economic activity contribution – all property per province

Figure 9: Asset class expected to perform best in 2014 and over the next 10 years

Source: Author’s calculations

SOUTH AFRICAN PROPERTY REVIEW

GDP Report_SUBBED.indd 60

2014/06/23 12:30 PM

statistics

How confident are you? Through its recently conducted Property Industry Business Confidence Survey, SAPOA aims to collate the views of its members in order to strengthen the organisation’s advocacy stance By Candace King

n an effort to better understand its members’ vast views and opinions regarding the overall property industry and its current situation, SAPOA conducted an online business confidence survey. This survey provides vital information that will support SAPOA’s advocacy campaigns and encourage political discussion about the importance of a prosperous property sector. The sentiment survey was completed by 108 participants who reflected their views on their companies and businesses as well as the current property sector landscape. It’s important to note that not all of the 108 participants answered each question. Taking place prior to the 46th Annual SAPOA International Convention and Property Exhibition, the Property Industry

Which of the following impediments may influence your business decisionmaking over the next 12 months? No perceived barriers Interest rates

6,82% 50%

Exchange rates

20,45%

Domestic economic conditions

73,86%

Global economic conditions

37,5%

Availability of debt finance

40,91%

Consumer demand changes

39,77%

Access to skilled labour

22,73%

Political environment

55,68%

Property tax regime

21,59%

Navigating regulation

17,05%

Site/land availability (or lack of)

28,41%

Planning controls

31,82%

Infrastructure planning

39,77%

Local authority’s inefficiencies

61,36%

Government efficiency

37,5%

Inflation

40,91%

GDP growth

28,41%

Business Confidence Survey was well received by members, dealing with an array of industry-related questions ranging from company, staff and sector queries

to South Africa’s economic growth, key influential indicators and which asset class will have the greatest total return over the next 12 months.

Which sector of the property industry do you primarily operate in? Residential Office Industrial Retail Retirement living Hotels, tourism and leisure

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Over the next 12 months, how do you expect capital values to change for the following asset classes?

Residential

Office

Industrial

10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Decrease

Stable

Rising

SOUTH AFRICAN PROPERTY REVIEW

Business Confidence Survey_SUBBED.indd 61

2014/06/23 9:48 AM

feature

Live design. Transform life As the World Design Capital of 2014, Cape Town aims to take design and transformation to another level through innovative projects and awe-inspiring events By Candace King

SOUTH AFRICAN PROPERTY REVIEW

WDC 2014_SUBBED.indd 62

2014/06/23 1:18 PM

feature The year 2014 is an exciting one for Cape Town. It’s a year that will further solidify the city’s love for creativity and design, and transform the metropolitan into an even more thriving destination with innovation, economic stimulation and social upliftment at the forefront. This is all thanks to the city being awarded the World Design Capital (WDC) project title for 2014, a global competition that seeks to identify individual cities that have effectively used design to propel innovation, development and improvement across various metro-specific platforms, including the economy, culture, society and the environment. Originally an initiative by the International Council of Societies of Industrial Design and the International Design Alliance, the WDC merit is awarded biennially in advance, giving winning cities a chance to plan, develop and promote a year-long programme of WDCthemed events for their designated year. In March 2011, Cape Town officially submitted its 465-page World Design Capital 2014 bid book to City of Cape Town executive mayor, Alderman Dan Plato, and in October 2011 it was designated WDC for 2014. The Mother City’s bid forms part of a broader vision to transform Cape Town into a sustainable, productive African city, bridging historic divides, and building social and economic inclusion. During the course of 2014, Cape Town will host more than 460 design projects aimed at transforming the city.

Like most South African cities and various other global metros, Cape Town is divided by design as well as social differences. It’s a city of natural beauty and cosmopolitanism coupled with poverty and urban degradation. Due to the segregation of the past brought on by apartheid, the city is divided on an urban and social level. The WDC 2014 design projects will help to bridge the gaps through a reshaping of the cityscape into one that is safer, more efficient and inclusive.

Design24 #WDC317: Naspers Centre finds a new face While there is a plethora of noteworthy WDC projects, one that stands out on an architectural and urban redevelopment footing is Design24, Media24’s official World Design Capital design competition project that looks for conceptual ideas and proposals for the re-imagining and redesign of the exterior façade of the Naspers Centre on Cape Town’s Foreshore. Built in 1962 by Sanlam at a cost of R4million, the 26-storey building was the tallest commercial property in Cape Town – and in Africa. In 1981, Naspers bought the Sanlam Centre from Sanlam and renamed it the Naspers Centre. The name is soon to be changed to the Media24 Centre.

After the competition closed at the end of February 2014, 94 entries were submitted from architects, industrial and graphic designers, artists, students, and urban planners from across South Africa. The entries were initially assessed by an independent curators’ panel of design, engineering, architecture and construction specialists based on six criteria: aesthetic value, sustainability, cost, technical feasibility, buildability, and a reflection of all four World Design Capital themes. The panel of curators included architect Luyanda Mpahlwa, Future Cape Town CEO Rashiq Fataar, World Design Capital 2014 editorial director Paul Duncan; associate director and buildings sector leader at the Cape Town office of Arup Simon Gill; and quantity surveyor and director of the De Leeuw Group Sean Cowgill. The panel then presented a “longlist” of possible winners to a second panel consisting of Media24 and Naspers leadership, assisted by two technical advisers – Professor Alta Steenkamp, director of the School of Architecture, Planning and Geomatics at the University of Cape Town; and Simon Gill. “Together, the entries form a collection of inspired ideas that have helped us see the future of our headquarters building in so many different ways,” said Anika Ebrahim, head of corporate communications at Media24.

The programme boasts several “clusters” of projects and events: With “Live design. Transform life” as the central theme, Cape Town’s World Design Capital 2014 programme is shaped around the following four sub-themes: ● ● ● ●

African innovation, global conversation: African ideas that speak to the world Bridging the divide: design that reconnects the city and reconciles its communities Today for tomorrow: sustainable solutions for people and the planet Beautiful space, beautiful things: inspiring architecture, interiors, food, fashion, jewellery, craft, art and creativity

● ●

●

● ●

●

Lifestyle: design that gives meaning through fashion, arts, culture, sports and recreation Business that builds: design that adds value to the economy through innovation, finance, systems and social entrepreneurship Sustainability solutions: design that focuses on efficiency and resilience related to food, energy, water and the natural environment Connection that unites: design that elevates communication, transportation and social cohesion Education that elevates: design that shares knowledge through schools, exhibitions and skills development Community improvement: design that improves health, wellness, housing and urban development

SOUTH AFRICAN PROPERTY REVIEW

WDC 2014_SUBBED.indd 63

2014/06/23 1:19 PM

feature

ABOVE The Design24 selection panel includes (from left) Sean Cowgill, quantity surveyor and director of the De Leeuw Group; Rashiq Fataar, CEO of Future Cape Town; and Simon Gill, associate director of Arup LEFT DBM Architects’ design, “Roots”, imagined tangled roots reaching up the full height of the Media24 building

“Some are very extravagant, while others are very simple.” The designs further highlight the current building trends and technologies as well as contemporary design ideas that are out there. Another important concept that was fleshed out in several of the designs is that of sustainability. Many of the entries featured techniques to help generate and also save energy, such as wind turbines in various forms and solar shading ideas. Roof gardens, vertical gardens and ideas to improve the public space around the building were also featured. Art, digital imagery and broadcasting techniques were also proposed, as were innovative ways of using lighting, glass and various other materials. The prize money of R320 000 was to be awarded to one winner and two runners-up, who would receive R200 000, R80 000 and R40 000 respectively. However, none of the designs submitted met all of the criteria, and thus none qualified for an award. But although there was no clear winner, Media24 decided to reward the three favoured designs. The top three designs came from Cape Town-based Tsai Design Studio, whose design titled “Urban Sculpture” imagined a folded sheath wrapped around the building, with a prominent media wall facing Walter Sisulu Avenue; MLB Architects, based in Cape Town and Johannesburg, whose design titled “Reimagining an Icon” used glass, mesh and green planting to create an entirely new silhouette for the building; and Pretoriabased DBM Architects, whose design titled

“Roots” imagined tangled roots reaching up the full height of the building, in reference to Media24’s 100-year history in Cape Town. “Some of the entries truly re-imagined the iconic Naspers Centre, so even though there wasn’t a clear winner we decided to split the prize money equally between the top three entries as recognition of their artistic contribution,” says Media24 CEO Esmaré Weideman. “Our implementation team will now be tasked with the challenge of finding the best design solution – which could include elements of the top three designs – within our modest budget of R15-million. Although this is the end of the competition, it is only the first phase of the exciting journey to reinstate our building as an icon of the future Foreshore.”

Design24’s future mark on Cape Town The desired outcome of Design24 is to initiate urban redesign in the city centre. Prior to the announcement of the competition winners, Nicky Swartz, programme director for World Design Capital 2014, said that the outcome of the Design24 challenge could literally change the landscape of the city, especially because it sits within the wider context of a redesigned Foreshore precinct. “I hope the submitted designs cause consternation, raise questions, and spark debate and conversation – and I hope the competition engages all of Cape Town, providing a platform for discussion about urban design and development,” she said.

“Through Design24 and other projects, the envisaged changes to our urban landscape will represent the substance of the legacy of our year as the world’s design capital.” After decades of decline, the Cape Town CBD is only now experiencing a fresh upward trajectory. The ongoing development in areas such as the Foreshore precinct is relatively new, with the Cape Town International Convention Centre (CTICC) having only been built in 2003. But future developments are set to change the area completely. These include the expansion of the CTICC, the construction of the new Christiaan Barnard Memorial Hospital, and the redevelopment of the Artscape precinct project. “We have much to celebrate this year,” says Weideman. “As a country, we celebrate 20 years of democracy. As a city, we celebrate a year of design as the fourth World Design Capital. And as a company, we celebrate 100 years of being part of a great city, with our mother company Naspers turning 100 in December – a century since Die Burger, that very proud newspaper in the Media24 stable, was first published. “We love being part of a city – and a country – that is so full of creativity, imagination and innovation. And we especially love the idea of drawing on that creativity, imagination and innovation to shape our future here. That was the driving force behind the decision to bring Design24 to life through the World Design Capital programme.”

SOUTH AFRICAN PROPERTY REVIEW

WDC 2014_SUBBED.indd 64

2014/06/23 1:19 PM

feature

ABOVE Tsai Design Studio’s “Urban Sculpture” used the idea of a folded sheath wrapped around the building, with a prominent media wall facing Walter Sisulu Avenue RIGHT MLB Architects’ “Re-imagining an Icon” used glass, mesh and green planting to create an entirely new silhouette for the iconic building

Interview with Naspers Centre project manager Hilary Alexander How challenging will it be to combine three different architectural concepts for the final design of the building? It’s a challenge but we’re confident that our implementation team, in collaboration with the designers and the technical team, will be able to find the best possible solution to transform the building on modest budget.

What are your thoughts on Cape Town being the World Design Capital for 2014? The World Design Capital 2014 designation is an opportunity for the design community to apply its creative and innovative mind to the multi-layered challenges that affect our communities. The designation can accelerate the development of these ideas, and catalyse real change where change is needed most.

How will sustainability be implemented in the redesign of the building? The brief and the judging process prioritised sustainability for the new designs. The key will be to ensure the new façade improves the performance of the existing building, to help Media24 maximise energy efficiency. Our façade engineering consultants will work with the implementation team to maximise the performance of the façade – and of the building as a whole.

What will make this re-imagining of the Naspers building iconic as a WDC project?

When will the building be completed, and what are your hopes for the outcome?

The Naspers Centre (then known as the Sanlam Centre) was an icon of its time when it was built in 1962. Since then, the city has changed immeasurably and the building has become part of a much busier skyline. The building’s redevelopment will reinstate its place as a contemporary icon in the future Foreshore. Once it is completed, the building will be a lasting visual representation of the legacy of the World Design Capital programme.

The design development process is under way, and the timelines will become clearer in due course. Our hope for the outcome is that the Media24 Centre becomes a case study for design thinking and world-class architecture in the world’s most beautiful city. We want our head office to be representative of who we are as an organisation – a multiplatform media company on the move. We love it here, and we’re very much looking forward to placing our building, our company and our city firmly on the global map of great design.

Most buildings in Cape Town are old and not very aesthetically appealing. Do you think this refreshed building will stimulate revival of others? There is significant development planned for the Foreshore precinct, and this project is part of that ongoing progress. We hope that the overall precinct development, as well as the re-imagining of the Naspers Centre (to be renamed the Media24 Centre), will catalyse additional urban renewal in the Foreshore and across the rest of the city. We hope the design will inspire other building owners to reignite their visual presence in the city, bringing the World Design Capital’s physical presence into a striking new architectural and design age.

What makes the Design24 competition so appealing and important in the property industry? Is this something that should be done more often? The competition challenged the entrants to completely re-imagine the building without affecting its existing structure. The creativity and imagination we saw in the 94 entries we received revealed a wealth of design thinking that could be applied to many other structures – there are many buildings in Cape Town of a similar age. We also believe that Design24 could be a model for other design competitions that could help to further change the face of our city centre. SOUTH AFRICAN PROPERTY REVIEW

WDC 2014_SUBBED.indd 65

2014/06/23 1:22 PM

feature

Banking on commercial property Despite tough times with slow GDP growth in the country, South African banks say they are open for business and will lend to credible borrowers in the commercial property sector By Denise Mhlanga

ommercial property is a key driver of economic growth in South Africa. In 2012, the sector contributed R80,9-billion to GDP and R25,3-billion to the fiscus through various forms of direct and indirect taxes, according to research. Commercial property is one of the main private-sector capital investment areas and a major driver of economic growth. Funding provided by banks enables the continuation of this investment, says Siegfried Uken, FNB’s head of property finance and investment lending.

In May, the Property Sector Charter Council released a report titled “ The Impact of the South African Property Sector on the National Economy” – a follow-up to a 2012 report that measured the size of the property market and estimated it to be about R4,9-trillion. The latest report shows that, in 2012, the total economic contribution of the commercial property sector to GDP was R80,9-billion (and R25,3-billion to the fiscus), while the residential property sector’s contribution was a total of R103,7billion, with R20,1-billion contributing to the fiscus through various forms of tax.

The role of financial institutions

Siegfried Uken, FNB head of property finance

Mike Mortimer, head of commercial property finance at Absa, concurs with Uken that financial institutions are key enablers for growth in the property sector – but they also play an instrumental role in ensuring such growth occurs in a responsible and sustainable manner. As banks, they look to develop commercial relationships with those property developers and investors who share their long-term strategy for the industry, and are not in the business purely for short-term gain. “Banks have developed into strategic partners for property developers and investors, rather than just pure providers of property finance,” says Mortimer. Robin Lockhart-Ross, head of credit at Nedbank Corporate Property Finance points out they also play a secondary role in the sector in supporting and sponsoring industry bodies and initiatives that seek to improve self-regulation, set standards and promote best practices. As an example, Nedbank Corporate Property Finance is a major sponsor of the South African Council of Shopping Centres, and is presently the principal sponsor of the Green Building Council of South Africa, which promotes environmentally sustainable building practices. Further to that, says Lockhart-Ross, they facilitate and sometimes even undertake property developments themselves, usually to catalyse development in particular

SOUTH AFRICAN PROPERTY REVIEW

Banking Commercial Property_SUBBED.indd 66

2014/06/23 9:39 AM

feature

segments of the market. In recent years, this has been particularly evident in the low-income housing sector, where, in response to commitments made in terms of the Financial Sector Charter (and like most other financial institutions), Nedbank Corporate Property Finance has established a dedicated affordable housing unit to proactively support developers in this space.

Open for business Mortimer says that Absa is indeed open for business in terms of providing loans – as long as they fall within defined risk parameters. “Commercial property is a long-term rather than a quick-win game, and that is how we view both our business and the valued relationships with our clients,” he says. “We believe in growing and nurturing lasting relationships with our clients. To ensure that we are able to do this, we have an obligation to lend in a manner that is responsible.” Uken says that FNB provides financial aid across the spectrum of commercial property and that it has the required knowledge and market-leading skills, supported by appropriate processes, to deliver customised deal solutions. “Our primary objective is to continue supporting business banking clients in the owner-occupied segment and to actively penetrate the investment property market for non-listed industry leaders,” he says. “Nedbank is the acknowledged market leader in the sector, by virtue of holding the highest market share by some margin over our competitors and having been recognised in the 2013 PWC banking survey as the best property finance house in South Africa,” says Lockhart-Ross. “By contrast with some other financial institutions, we have been consistent in our approach in that we have ‘remained open for business’ and have continued to provide funding into the market through the property cycle, rather than withdrawing or scaling back during adverse conditions and ‘opening our cheque book’ or gearing up only in boom times. “Our clients include existing owners, new investors and prospective developers; listed property funds, major private investor and developer groups, and medium-sized corporates; as well as small owner-occupiers in retail, office, industrial and specialised properties such as hotels, hospitals and residential schemes.”

Robin Lockhart-Ross, head of credit at Nedbank Corporate Property Finance

In terms of commercial and retail property developments, in light of the current sluggish economic environment, each of the banks boasts its own strategy on lending. “We critically assess each opportunity individually, and we have appropriate geographic and sectoral expertise to ensure that each property finance request receives the dedicated attention that it deserves,” says Mortimer. “In addition, we have a very experienced team who are able to draw extensively from the lessons learnt in the past and ensure that mistakes are never repeated. We believe that our clients will, in turn, benefit extensively from this experience.”

Even in these sluggish economic times, there are still numerous viable and bankable development opportunities being sourced and packaged by established developers

SOUTH AFRICAN PROPERTY REVIEW

Banking Commercial Property_SUBBED.indd 67

2014/06/23 9:40 AM

feature

Mike Mortimer, head of commercial property finance at Absa

“Banks have developed into strategic partners for property developers and investors, rather than pure providers just of property finance” Mike Mortimer, head of commercial property finance at Absa

Uken says that the inherent nature of development loans includes the complexity of construction and delivery risks that need to be understood and mitigated in conjunction with normal deal fundamentals (i.e. client, security and serviceability risks). He notes that FNB needs to be comfortable with the proposed development loan exit, whether in the form of rental income streams (such as retail centres) or sales proceeds (such as sectional title offices or mini factories). “As a bank, we intend to partner with experienced developers with the support of

reputable professional teams and building contractors in appropriate developed/ developing property nodes,” he says. “Property credentials such as location, layout, operating costs and the ability to generate income will determine the security value placed on the property. We believe that the mitigating of the mentioned risks will enable projects to be delivered not only on time, but also in accordance with quality specifications and the budget.” “Our attitude towards commercial and retail property developments hasn’t changed substantially quite simply because the fundamentals of sound property lending remain the same throughout the property cycle,” says Lockhart-Ross. What we always look at is, firstly, the substance and experience of the developer; secondly, the location and quality of the property; and thirdly, the strength and length of the tenancies.” Even in these sluggish economic times, there are still numerous viable and bankable development opportunities being sourced and packaged by established developers. This activity is evident in the retail sector, particularly in the previously under-supplied rural and former township areas, and in the logistics and distribution sector, as this obviously services and hence follows retail expansion. However, there is limited new development presently in the office sector, where there is a general oversupply across the country except for a number of high-profile, new, premium office developments in key nodes such as Sandton and Rosebank in Johannesburg for major corporates who are relocating and consolidating their head offices. When dealing with property developers and the sector, it’s not always smooth sailing – there are some challenges that the banks encounter. “We occasionally find instances where our client’s risk appetite for a particular transaction is greater than ours,” says Mortimer. “In these situations, it needs to be borne in mind that we are providers of property finance, and the returns we would generate out of the finance facility are usually significantly less than would be realised by the equity partners in the deal. As such, our risk appetites will differ as well.” Uken notes that some of the challenges encountered by property developers include

SOUTH AFRICAN PROPERTY REVIEW

Banking Commercial Property_SUBBED.indd 68

2014/06/23 9:40 AM

feature

the lack of certainty, cash and commitment, as experienced in the following ways: tenants are inclined to commit to shorter lease periods, often leaving a mismatched loan term; tenants/buyers prefer to transact based on a visible property product, whereas banks are less inclined to fund speculative opportunities without loan exit certainty; difficulty for new developers to enter the property arena without the relevant property experience and financial backing; and a limited appetite for vacant land funding with the added prolonged holding cost born by the developer to rezone land for development. “Two of the major challenges presently facing property developers are the lack of institutional capacity at local government level, not only to process rezoning and development approvals but also to provide the necessary bulk infrastructure and services, and the above-inflation increases in administered costs – not only municipal rates and taxes but also electricity charges and levies,” says Lockhart-Ross. He adds that the former can result in lengthy delays to commencement or conclusion of development, which may compromise the viability of projects either through the resultant effect on costs or through missing the market cycle, whereby previously committed buyers and tenants withdraw from the projects. “The latter is causing developers’ and owners’ operating and holding costs to escalate at higher rates than their rental escalations, making it difficult to pass these costs on to their tenants or to absorb them in their rental income, thus squeezing the yields earned on their properties.”

Funding the retail sector Absa is very comfortable with its exposure to the retail sector – the bank is well represented but not overly exposed. “We believe that selective opportunities still exist in this sector but we need to be prudent, as we have seen a proliferation of new retail space over the past few years against a backdrop of challenging times for the consumer,” says Mortimer. He also points out that the macroeconomic indicators suggest that households will remain under pressure for some time– which begs the question of how much room there is for expansion at present.

“That said, there is solid demand for good-quality property assets in areas where shopping is under-provided,” he says. “We have financed a number of successful retail centres that have been sold either on completion or shortly thereafter at attractive yields, and we will continue to support these opportunities.” FNB, for example, recently concluded a property deal in Bloemfontein to the value of R110-million. Uken explains that the largest property included in this deal is a community shopping centre called Preller Square anchored by one of the leading Woolworths stores in the country, further providing a suitable tenant mix for the surrounding community. The centre has been trading successfully for the past two decades. Meanwhile, Nedbank notes that the retail sector has been consistently the bestperforming sector in recent years, with regional and super-regional shopping centres being the star performers, largely because of the defensive quality of these prime retail assets that are underpinned by a high proportion of long-term leases with blue-chip tenants. This is not expected to change in the next few years. “A significant proportion of our lending approvals in 2013 and 2014 has been in the retail sector, where we are still comfortable to lend on new developments and acquisitions, with the exception of smaller convenience and neighbourhood shopping centres where we have been exercising caution, as these have been the poorest-performing centres in the retail sector,” says Lockhart-Ross. The bank has funded the development of projects such as the Mall of Africa in Midrand, the Newtown Precinct in the Johannesburg CBD, the Bay West centre in Port Elizabeth and the Mthatha regional mall, and is also funding centres in former townships in Umlazi in KwaZulu-Natal, Tembisa in Gauteng and in rural areas such as Pongola in KwaZulu-Natal, Zebediela in Limpopo, Phokeng in the North West and Emoyeni in Mpumalanga. Nedbank has backed established retail developers who will have done extensive demographic research to confirm that there is adequate demand in the catchment area of the proposed centres; it has also secured formal lease commitments from national retailers for a substantial proportion of the lettable area of their centres.

Two of the major challenges presently facing property developers are the lack of institutional capacity at local government level, not only to process rezoning and development approvals but also to provide the necessary bulk infrastructure and services, and the aboveinflation increases in administered costs – not only municipal rates and taxes but also electricity charges and levies Robin Lockhart-Ross, head of credit at Nedbank Corporate Property Finance

SOUTH AFRICAN PROPERTY REVIEW

Banking Commercial Property_SUBBED.indd 69

2014/06/23 9:40 AM

editorial

SA economy still under pressure It is now more important than ever for commercial property managers to manage potential risks of future tenant defaults

he economic downturn has put pressure on property managers across the country not only to fill the commercial space within their portfolios but also ensure that tenants – once signed – are able to pay. Being able to understand the credit history and performance of property tenants can greatly reduce the risks associated with defaulting payments. Michelle Beetar, managing director at Experian SA, explains the benefit of credit management tools for the property management industry. Property managers, like other industries, are facing increased pressure to ensure the tenants they sign for their properties are going to pay their bills. Many years ago, credit decisions tended to be based on limited information and “gut feelings”. With the evolution of technology and increasing corporate governance requirements, the commercial credit industry has been forced to evolve. Instant and accurate decisions are now imperative – and possible. As such, many property businesses are turning to technology, data and analytical tools – provided by international information services companies such as Experian – to manage their potential credit risk. One part of mitigating risk is understanding the potential tenant’s history upfront. The other part is monitoring their credit performance. Experian SA assists commercial property managers with evaluating the tenants’ credit status, monitors their ongoing business performance, determines the likelihood that they will get their monthly rentals on time, and understands compliance implications. For example, if tenants have an annual turnover of R1-million or less, they will be regarded as individual consumers rather than established businesses, and particular regulations will apply. Decisions also have to be consistent. A proper credit analysis measures all applicants against the same set of criteria. This gives the relevant business a means to set its policies for risktaking. Automated decision-making for bigger clients will also take these policies into account. Walter Kruger, national credit manager at Growthpoint Properties and long-standing client of Experian, feels the same. “Using a reputable bureau such as Experian, which has up-to-date commercial information on tenants, is vital to ensuring that risk is assessed in such a manner

Michelle Beetar, managing director at Experian

that existing and new tenants are scrutinised to ensure a risk-free long-term relationship,” he says. “Up-to-date adverse information news and tenant monitoring alert us to potential problematic accounts. Once daily updates are received, they allow us to proactively contact our tenant and assist him before any nonpayment issues arise. Because our business is conducted over the long term and differs from a normal trade environment of goods sold and delivered, the bureau offers important information to us to make informed decisions.” For Growthpoint and a number of other property management companies, a deeper commercial understanding based on integrated business and consumer information is needed. Commercial property managers need to be able to view potential and existing tenants’ unique business credit-risk score, which provides early indicators of payment risk. Experian’s Commercial Delphi Score provides greater granularity to risk ratings for business credit granting. The score is designed to predict the likelihood of business failure over a 12month period, and is structured so that it scores all active businesses, including sole proprietors. It has been developed to operate on multiple data access platforms, so it treats SME and large business appropriately and has the facility of scoring start-ups and established businesses. Additionally, risk grades need to be updated in real time, as and when factors material to the credit-worthiness of a business change. With certain key elements used in the scoring process feeding into the database daily, businesses are assured that they have the most up-to-date risk profiles on their debtors.

Experian has developed core expertise in building and managing a comprehensive commercial database over the last 30 years. The company holds information on 4,1-million companies, of which 1,7-million are active and have risk scores associated to them. Experian also holds information on 2,2-million commercially owned properties and processes more than a million trade credit payment lines, which cover more than R63-billion outstanding trade credit. “We produce more than 60 000 researched business reports per annum,” says Beetar. “A typical business report will include a wide range of information, such as a company’s registration and ownership details, trading addresses, how quickly the business is paying its bills, a credit-risk score, court judgments and a history of its financial performance.” The company’s ownership of consumer and business credit information means that Experian is particularly well positioned to help assess the creditworthiness of small- to medium-sized businesses. Given the pace of business, automated decision-making is becoming important in driving efficiency and improved revenue recognition. Experian offers valued-added solutions that combine our data assets with predictive analytical modelling to automate a lot of the decision-making processes, resulting in significant productivity enhancements. Experian’s technology facilitates the making of many credit decisions quickly. These are consistent decisions that are accurate and based on non-subjective criteria. Additionally, Experian is able to provide property managers with a holistic view of risk levels across all of their tenants in one place, enabling them to see who their riskiest tenants are and how they are paying them compared to their other suppliers. This enables the property manager to respond proactively and manage their tenants accordingly. Having a strategy in place to manage the risk of potential tenants effectively will not only assist in maintaining long-term profitability but also improve the tenants’ service quality. Although a company’s growth may necessitate a certain level of risk, we do not believe it should result in defaulting commercial tenants and bad-debt write-offs.

SOUTH AFRICAN PROPERTY REVIEW

Experian_SUBBED.indd 70

2014/06/23 10:43 AM

4263 Wetpaint Advertising

CORE STRENGTH BY AMSTEELE SYSTEMS

Amsteele Systems is proud to be associated with this prestigious development and for our pre-stressing teams to have been a part of the successful achievement of the fast-track program.

102 RIVONIA

HEAD OFFICE: TEL +27 11 827 6721 E-MAIL info@amsteele.com www.amsteele.com Stressing Development since 1969

Untitled-1 1

2014/06/24 12:05 PM

on show

Breaking boundaries Despite many obstacles, when a group of forwardthinking individuals worked together on this complex project, the result was visionary

ushing the boundaries and exceeding expectations, the new headquarters of Ernst & Young (EY) has created a unique addition to the Sandton skyline. Developed by Eris Property Group, designed by Boogertman + Partners and projectmanaged by SIP Project Managers, it came down to superb teamwork to manage a difficult timeline and budget. “EY’s existing lease was terminating and the company needed new premises,” says SIP’s Rod Oosthuizen. “In order to meet an absolute deadline, new benchmarks in speed of construction and ‘out of the box’ thinking in doing things differently was imperative. Building began on 20 June 2012 and EY had to move and be operational by the end of November 2013.” Adding to this challenge were unexpected and problematic soil conditions, a transport strike, a NUMSA strike and a complex architectural design. But the project was completed on time – and according to Oosthuizen, this was the

result of having the right team in place. “The entire team had a can-do attitude,” he says. “Everyone was focused on what had to be done. Nothing was impossible and there was a unique spirit that permeated the team.” Otto Dreyer of Eris Property Group agrees that it comes down to having the right people and teams in place. “There is a big demand in Sandton for unique spaces and design,” he says. “This is driven by the demands of big tenants such as EY. Developers need to get the right team in place to push design parameters. And with the aforementioned strikes, time constraints and budget constraints, 102 Rivonia certainly pushed the boundaries in all facets. It is of utmost importance to have a solutions-focused team – it is incredible what you can achieve when the team has the same mind-set. We pushed funding, aesthetics, design and innovation borders, and Eris and I are exceptionally proud of the team and the end product.

SOUTH AFRICAN PROPERTY REVIEW

On Show_SUBBED.indd 72

2014/06/23 1:24 PM

on show

SOUTH AFRICAN PROPERTY REVIEW

On Show_SUBBED.indd 73

2014/06/23 1:25 PM

Portside

on show

The TallesT 5-star green design and built Cape Town

102 Rivonia Road

The quiCkesT 4-star green design and built sandton

A tAle of two cities Property Developments • asset Management • Facilities Management Trading and investing • leasing & investment Broking • Property advisory service Retail services • Property Valuations

contact 011 775 1000 www.eris.co.za 74

SOUTH AFRICAN PROPERTY REVIEW

On Show_SUBBED.indd 74

2014/06/23 1:26 PM

on show

The development spans over 98 800m² and comprises three elements: an eight-storey building with an atrium space and transecting stairs and bridge links; a 14-storey ofﬁce tower connected by a four-storey bridge; and a two-storey podium upon which it sits, forming part of a greater nine-storey parking basement It was an enormous privilege to be part of project such as this one.” The new home of EY is known as 102 Rivonia Road and is a glorious marriage of glass, metal, organic shapes and curves, resulting in a futuristic design that has no equal in terms of competing for attention. EY, which provides assurance, tax, transaction and advisory services to companies and governments, has said the move will place the professional services firm at the centre of South Africa’s economic hub in the Sandton central business district. Broll Property Group has been EY’s property adviser since 2010. Broll’s challenge was to define new ways of working and to identify a solution that would give EY a workplace of the future, while improving their corporate identity at the same time. As EY’s adviser, Broll carried out an in-depth analysis of current workplace requirements and shortfalls, which resulted in highly competitive proposals being put forward. The final result was a high specification 4-Star green rated building let at extremely competitive rentals and significant value add to EY over the period of their lease. The consolidating of three buildings into one, now 102 Rivonia, provided EY a saving in occupancy per person (reduced from 12m² per person to 7m² per person. SOUTH AFRICAN PROPERTY REVIEW

On Show_SUBBED.indd 75

2014/06/23 1:26 PM

onShared showvision. One goal.

on show

With 35 years of experience and a portfolio of highprofile projects, SIP has become highly sought-after as a result of consistently delivering high-quality projects on time.

Did you know? The building design had achieved early recognition at the World Architecture Festival held in October 2012 in Singapore, where the project was short-listed for an award in the Future Commercial Ofﬁce category.

SIP Project Managers (Pty) Ltd Reg no: 1984/006110/07 Head office 10 Woodmead Estate, 1 Woodmead Drive, Woodmead, Sandton t: +27 (0)11 233 6800 f: +27 (0)11 233 6801 e: sipjhb@sippm.co.za 76

Broll has also assisted EY across Africa in countries such as Cameroon, Nigeria, South Sudan and Mozambique. There were several criteria that EY had highlighted. These included a location within Rosebank, Illovo, Sandton or Rivonia; accessibility to major transport networks and the Gautrain; visibility and exposure; large floor plates incorporating access floors; and a flexible and efficient space with easy access to shops, gymnasiums and restaurants. The completed 102 Rivonia borders Rivonia Road to the north, Katherine Street to the south, 5th Street to the west and Alexander Forbes to the east. Originally the site of three office buildings, the development spans over 98 800m² and comprises three elements: an eight-storey building with an atrium space and transecting stairs and bridge links; a 14storey office tower connected by a four-storey bridge; and a two-storey podium upon which it sits, forming part of a greater nine-storey parking basement. Welcoming you into the space, a grand staircase off Rivonia Road guides pedestrians from street level to the podium, which offers panoramic views over Sandton. The firm of Boogertman + Partners was in charge of the façade design. A combination of convex and concave curves, it is constructed from a unitised performance glass with a light tint, using vertical fins that control natural light.

SOUTH AFRICAN PROPERTY REVIEW

On Show_SUBBED.indd 76

2014/06/23 1:27 PM

on show

Different work spaces were designed, including the work cafĂŠ (work hub), hot desks, a variety of meeting spaces to accommodate different needs, and break areas for socialising

SOUTH AFRICAN PROPERTY REVIEW

On Show_SUBBED.indd 77

2014/06/23 1:28 PM

on show “This design is a first for the South African environment,” says Bob van Bebber, director at Boogertman + Partners. “It is significantly different from any other building in the area and will certainly become a local landmark.” The interiors do not disappoint. Floating floor planes, overhangs and protrusions, the impressive atrium, and criss-crossing bridges have created an organic, flowing space that encourages people to circulate and interact, in turn creating a spectacular design feature. The interior design was undertaken by Adrian Davidson of Savile Row, a bespoke interior design and architectural consultancy. “Unlike many projects I work on, I have to give credit to the client here,” he says. “Ernst & Young was a fantastic co-creator in this project, really embracing new ideas and interrogating every step, detail and process along the way to ensure a great workplace for its staff.” A natural colour palette is interjected with bursts of colour in the form of brightly coloured carpets and furniture, while polished concrete floors and natural timbers can be seen throughout the open-plan work areas and breakaway meeting spaces.

A natural colour palette is interjected with bursts of colour in the form of brightly coloured carpets and furniture, while polished concrete floors and natural timbers can be seen throughout the open-plan work areas and breakaway meeting spaces 78

SOUTH AFRICAN PROPERTY REVIEW

On Show_SUBBED.indd 78

2014/06/23 1:29 PM

on show

Defining future workplaces for you Occupiers of multiple commercial properties often suffer from an uncoordinated approach to their owned or leased portfolio, and that´s where Broll´s Corporate Real Estate Service (CRES) adds value. Our advisors will work with you to develop a strategy that is both cost effective and in line with your business objectives. We’ll manage any property acquisitions, renewals or disposals, administer and report on your leases, and monitor utilities so as to ensure your best interests are looked after at all times. Our CRES services • Consulting • Portfolio Data Management • Portfolio Estates Management • Transaction Management • Workplace Strategy • Facilities Management

BRL/014/E

Broll’s full spectrum of property-related services: Office Broking • Industrial Broking • Retail Leasing and Projects • Investment Broking • Project Management Research • Asset Management and Consulting • Valuation and Advisory Services • Shopping Centre Management Property Management • Corporate Real Estate Services • Facilities Management

Visit broll.com or call our team on 08610broll SOUTH AFRICAN PROPERTY REVIEW

On Show_SUBBED.indd 79

2014/06/23 1:33 PM

on show An activity-based workplace is about much more than desk sharing or hot desking or hotelling – it’s about providing a greater choice of how people can work

SOUTH AFRICAN PROPERTY REVIEW

On Show_SUBBED.indd 80

2014/06/23 1:31 PM

on show “Eighty percent of what we perceive or experience is based on a visual sense of our environment,” says Davidson. “Uninspired spaces lead to uninspired, stressed employees. The use of shots of colour in the environment is there to break visual monotony, and to illustrate choice and inspire EY employees.” It was imperative to understand how EY works, its behaviour patterns and building usage, says Davidson – and what was discovered was that it was important for mobile staff who were based off-site to be able to have a base office that addresses mobile staff members’ requirements and allows them to socialise with colleagues. Staff based at the office permanently also had to be catered for. As much of EY staff are mobile it made sense to employ an activity-based space-planning philosophy. “An activity-based workplace is about much more than desk sharing or hot desking or hotelling – it’s about providing a greater choice of how people can work,” says Davidson. Different work spaces were designed including the work café (work hub), hot desks, a variety of meeting spaces to accommodate different needs, and break areas for socialising.

Data Cabling Computer Rooms

CSi Thabile has, throughout its history and 30 years of experience, established a reputation for being a unique, innovative South African business with the ability to establish, relocate, upgrade or enhance a green field’s data centre or network infrastructure.

T +27 11 262 3341 F +27 11 262 3354 | +27 86 500 3150

www.csigroup.co.za

CSI_SA Property Advert.indd 1

On Show_SUBBED.indd 81

2014/06/23 10:06 AM

SOUTH AFRICAN PROPERTY REVIEW

2014/06/23 1:35 PM

on show “Everything was considered in detail not only to create an office, but to develop an advertisement and a destination,” he says. An important green design aspect was the maximisation of natural light and views, and the minimisation of acoustics and noise. The former was achieved by using glazed rather than solid partitions, while noise minimisation included using sound-absorbent materials such as carpet, fabric workstation screens, acoustic ceiling tiles, suspended acoustic panels and padded wall treatments. In order to achieve a 4-Star Green rating, Boogertman + Partners designed the building with innovative opportunities to harness natural light and ventilation and energy conservation, as well as imbuing appropriate responses to the intricate network of green design considerations. This responsibility lay on the shoulders of Alison Groves of WSP Consulting Engineers. “The building’s fully glazed façade will provide excellent ingress of daylight, which is linked to employee wellbeing,” she says. “At the same time, the glass will restrict radiant heat gain into the building, and the problem of direct glare will be mitigated by the vertical fins. Sixty percent of the floor area will allow external views to the outside, enabling office personnel to look out of the windows and maintain a refreshing connection with the outdoors. In addition, the external glass has been modelled together with the HVAC system, with a primary focus on maintaining thermal comfort.”

An important green design aspect was the maximisation of natural light and views, and the minimisation of acoustics and noise

OTHER GREEN FEATURES ◆ All paint, adhesives, sealants and carpeting have low VOC (volatile organic compound) content ◆ Heat pumps replace geysers ◆ Electricity consumption is metered ◆ Lighting occupancy sensors ◆ Rain-water harvesting ◆ Water-efficient sanitary fixtures ◆ External shading devices and blinds ◆ The building management system controls all electric equipment ◆ Set indoor temperature ◆ Ventilation rated at 7,5l/second per person ◆ Magnetic ballasts on lights save energy and minimise flickering ◆ Use of sustainable timber and recycled steel ◆ Water metres allow for early leak detection and any other anomalous use

MEET THE TEAM Developer/client Eris Property Group, www.eris.co.za Tenant Ernst & Young, www.ey.com EY property adviser Broll Property Group, www.broll.com Project managers SIP Project Managers, www.sippm.co.za Architects Boogertman + Partners, www.boogertman.com Space planning and interiors Savile Row, www.savilerow.co.za Green design consultant WSP Green By Design, www.wspgroup.com Mechanical engineers Spoormaker & Partners, www.spoormaker.co.za Post tensioning Amsteele Systems, www.amsteele.com Data cabling CSI Thabile Networks, www.csigroup.co.za Sanitaryware Melibo

SOUTH AFRICAN PROPERTY REVIEW

On Show_SUBBED.indd 82

2014/06/23 1:35 PM

on show

CREATING MORE VALUE THROUGH DESIGN ARCHITECTURE INTERIOR DESIGN PLANNING

EY 1 0 2 R ivo n ia R o a d

I D E A S A R E J U S T PA R T O F O U R S T O R Y W e recognise every client and pr oject is u n iq u e, an d th at gr eat d es ign is m or e th a n si m pl y pr e t t y pi ctu res. We believe good architectu r e, or d es ign is ab ou t gr eat ex p er ien ces . Ev e r y o n e h a s a n i dea, but what makes one great? We b elieve th at gr eat d es ign is b as ed on a s ol i d fo u n da t i o n o f k n owl edge, insight, and collabo r ation , over laid w ith a h u m an cen tr ed ap p r oach t o i n n o v a t i o n .

www.savilerow.co.za SOUTH AFRICAN PROPERTY REVIEW

On Show_SUBBED.indd 83

2014/06/23 1:37 PM

editorial

Why be ethical?

Business ethics consultant Rabbi Gideon Pogrund of Business Ethics provides insight into why being ethical in today’s corporate world can greatly assist your business

s recently as 25 years ago, many people viewed business ethics as trivial and irrelevant. There was a joke that did the rounds in business schools: if an MBA were to include a course on ethics, it would be the shortest in the curriculum. Behind this view lay the long-held assumption that a company is an amoral entity that, aside from not violating the law, need not concern itself with ethical questions – or, in the famous words of Milton Friedman, “the business of business is business”. Today, attitudes are very different. There has been a quiet but radical transformation in our expectations of the corporation. Increasingly, companies are addressing key ethical questions, such as, “What is our purpose?”, “What do we believe in?”, “What principles should guide our behaviour?” and “What do we owe one another and the people we deal with – of course our investors, but also our customers, our employees and our communities?” Increasingly, companies are looking for ways to both ensure ethical compliance and build an ethical culture, and adopting ethics management strategies that include surveys, training workshops and seminars, and reporting hotlines. Of course, this is not to suggest that everyone has vigorously embraced business ethics – some remain indifferent, cynical and dismissive. But this is the direction in which the international and South African corporate world is unquestionably moving. In part, this transformation has been driven by legislative and corporate governance pressures. Internationally, this includes the Sarbanes-Oxley Act in the US, the UN Global Compact, the OECD Guidelines for Multinational Enterprises, and the Global Reporting Initiative. In South Africa, the Companies Act (2008) requires that all publicly listed and state-owned companies as well as other medium and large companies establish a social and ethics committee, and that they “monitor and report” their ethical performance. The Third King Report (2009) calls for ethical leadership and effective ethics management, and recommends that

Gideon Pogrund is a business ethics consultant. He offers presentations and workshops to companies, and facilitates the Ethics Monitor survey

companies “assess, monitor, report and disclose” their ethical performance. But beyond these pressures, there are major benefits to being ethical. To begin with, a focus on ethics offers a way to manage and reduce risk. Individual misconduct – such as theft, embezzlement and the diversion of business opportunities that really belong to the company – presents a serious threat. In the US, for instance, individual misconduct is said to cost companies six percent of their annual revenue. An even bigger risk is posed by corporate misconduct – unethical behaviour by those acting in the company’s name or on its behalf. Companies caught up in misconduct risk being hit with fines, penalties and legal expenses, and can quickly have their reputation destroyed and their core relationships wrecked, as the experiences of Enron, Arthur Andersen and the South African construction companies demonstrate. Warren Buffett, who was appointed chairman of Salomon Brothers after it became embroiled in a highly damaging case of misconduct, understood this well. He told a group of executives, “Lose money for the firm

and I will be understanding; lose a shred of reputation for the firm and I will be ruthless.” There is also a threat to individual board members, who face reputational, legal and financial damage. In South Africa, this risk has been magnified by the Companies Act, which has extended personal liability to directors for certain acts of misconduct. Evidence shows that employees in organisations with a strong ethical culture are 36% less likely to engage in misconduct than in those with a weak culture, and so sound ethics management is a crucial tool in reducing risk. But the benefit of being ethical is not only defensive – it can also be a source of competitive advantage. Ethics make a positive contribution to building a well-functioning company with a high-performance culture. Values such as respect, honesty and fairness are essential for encouraging cooperation, inspiring commitment, and nurturing creativity and innovation. Values shape a company’s identity and reputation, and have a major bearing on its market and societal positioning. James Burke, the former CEO of Johnson & Johnson, described its reputational capital as being “real, palpable and bankable” – and indeed it was this that enabled the company to withstand the Tylenol crisis of the 1980s. According to a 2011 global study commissioned by PR firm Weber Shandwick, 60% of a company’s market value is based on its reputation. Ethisphere Institute, a leading think tank, creates a list of “the world’s most ethical companies”. In 2011, there were 110 such companies and they, on the whole, compared favourably against the S&P 500. Motivated by a combination of prospective financial advantage together with legislative and corporate governance pressures, companies are placing a growing emphasis on ethics. Lynn Paine, a professor at Harvard Business School, argues that the contemporary corporation is expected to achieve a new and higher standard – to merge outstanding ethical performance with excellent financial results. For this reason, astute organisational leaders should perhaps update Friedman’s statement to “the business of business is sustainable business”.

SOUTH AFRICAN PROPERTY REVIEW

Business Ethics_SUBBED.indd 84

2014/06/23 9:50 AM

SUSTAINABLE CREATIVITY, INNOVATION AND EXPERIENCE Portside, 5 Star Green Star SA rated, Cape Town

AECOM provides professional, technical and management support services to Commercial and Industrial projects throughout the world.

AECOM provides a blend of global reach, local knowledge, innovation and technical excellence in delivering solutions that create, enhance and sustain the worldâ&#x20AC;&#x2122;s built, natural, and social environments.

Our operations in Africa boast more than 1,900 people, with a proud history of delivering excellence in our work to our clients locally and throughout the world.

For more, visit our website www.aecom.com

Prop Review 18062014.indd 1 Untitled-1 1

2014/06/20 03:15:59 PM 2014/06/24 12:22 PM

editorial

Retail running off the tracks? While retail margins remain tight and developers continue to build new centres, it’s a good time to be a property owner By David A Steynberg

t the moment, it’s better to be a property owner than a landlord. This is the view of economist David Smith of Macquarie First South Securities. Smith says the great run that retail has had over the past decade is unlikely to repeat itself. “The past decade has been an almost perfect alignment for improved consumer spending,” he says. “This resulted in average earnings growth of 21,3% per annum (16% real). We expect most of the structural tailwinds to become headwinds going forward, and an earlier-than-expected rate cycle coming into play.”

Growth drivers

●● Consumption of food products ●● Expanding middle class ●● Rising demand for high-value goods He said that current conditions, which predict interest rates to rise further over the next 18 months, made the retail environment for tenants even more challenging. “Lease costs are the second-largest expense for retailers – after labour,” he said. “And lease costs are rising faster than labour costs, sales and gross profits.” Last year also saw industrial finally overtake the retail and office sectors, posting a total return of 17,1%. The retail and office sectors posted 16,8% and 13,6%, respectively. According to the Investment Property Databank, operating costs increased by 13% in 2012, and 12,3% in the first half of 2013 – compared with consumer inflation of 5,1% in 2013.

Double-digit price increases in electricity and municipal costs were the major culprits. The relationship between retail sales growth and new mall space coming on stream has also changed. Smith says that, since 1995, retail sales growth was sitting at 3,5% per year, compared with 2,3% for mall space growth per year. This changed in 2008 following the global financial crisis. “Retail sales growth slowed to 2,7% per annum and mall space growth accelerated to 2,8% per annum,” he says. Smith cited the reasons for a growth in space to include retailers wishing to maintain market share and an overly optimistic view on the consumer, despite the fact that input costs were rising faster than gross profits. In both the food and apparel sectors, a rise in labour costs per square metre resulted in an increase of 2,4% and 4,8% respectively, while the increase in lease costs per square metre was 6,2% for the food sector and 8,7% for the apparel industry. According to The Broll Report 2013/14, rental rates in super-regional centres are substantially higher than in other centres at around R250/m². By comparison, rents are closer to R180/m² in regional centres and R150/m² in small regional centres. But has the growth in space had any impact on revenue for the retail sector? Smith is not convinced. “The listed space and Edcon have been growing in line with aggregate South African apparel sales since 2008,” he says. “Nominal apparel sales of 9,1% have grown in line with nominal GDP of nine percent since 2008. This is despite growing space at about five percent per annum and the inclusion of African sales.” Currently, there is about 20,7-million square metres of formal retail space within

South Africa, with the majority located in Gauteng (45%), followed by the Western Cape (15%) and KwaZulu-Natal (14%). A further two-million square metres of space is under construction or in the planning stages – about six percent of this is the Mall of Africa being developed in Midrand. Smith says the year 2013 represented a “tipping point” on sales versus cost growth and that the supply of new space continued despite retailers not necessarily benefiting. Saturation levels were a concern. “This is good for landlords – not retailers,” he says. “Under the current scenario, we would expect most companies to continue experiencing a margin squeeze over next 12 to 24 months. Foreign competition is likely to become material over the next five years.”

Retail by numbers

Super-regional centres: 8 Gauteng: 5 KZN: 2 Western Cape: 1 Regional shopping centres: 48 Gauteng: 60% Western Cape: 19% KZN: 6% This has been backed up by the entry of international fashion retailers such as Zara, Cotton On and Forever New, as well as fastfood outlets such as Burger King and Domino’s. The longer-term scenario, according to Broll, will be determined by rapidly evolving business practices, online retail technologies and a significant improvement in South Africa’s public transport infrastructure.

Retail property investments

In 2012, retail was the bestperforming property investment sector in South Africa, posting a total return of 17,1%, with an income return of 8,4% and capital growth of 8,1%. In the first half of 2013, small regional centres showed a 86

year-on-year growth in overall trading densities of 7,3%, followed by superregional centres at 6,4% and neighbourhood centres at 6,3%. Super-regional centres had an overall trading density of R2 718/m2, regional R2 217/m2,

small regional R2 139/m2 and community and neighbourhood centres R2 208/m2 and R2 662/ m2, respectively. Regional and community centres came in below inflation, showing a growth of 4,8% and 4,4% respectively.

SOUTH AFRICAN PROPERTY REVIEW

Retail Market_SUBBED.indd 86

2014/06/24 9:13 AM

statistics

SAPOA by numbers Source: SAPOA Annual Report 2013

ounded in 1966, the South African Property Owners Association (SAPOA) is a member-driven organisation formed to promote the collective interests of its members, as well as those of the commercial and industrial property sector. Regarded as the “voice of the commercial and industrial property sector” in South Africa, SAPOA boasts a combined portfolio in excess of R150-billion and has more than 1 200 members, who control about 90% of all commercial and industrial property in the country. SAPOA promotes the interests of its members by representing them on matters affecting the industry on all levels of government, and by providing a continuous

programme of educational activities and organising conventions, seminars and workshops on matters of topical interest. SAPOA also publishes journals and other literature for the benefit of its members.

Revenue

Retained earnings

SAPOA’s main areas of focus for 2013 ●● ●● ●●

Education and training Industry research Monitoring and acting on legislation that impacts on the property industry

Finances and figures For the year ending December 2013, SAPOA reported the financial performance of the organisation with revenue sitting at R32,8-million, up by 34,4% compared with 2012 (R24,4-million). Retained earnings at the end of the year increased by 41,6% to R10,9-million. As of April 2014, national membership increased from 1 170 (December 2013) to 1 189.

Delegate attendance at social events ●● ●● ●● ●● ●● ●●

Statement of financial position as at 31 December 2013 Notes

2013 (R)

2012 (R)

ASSETS Inventories

81 660

26 665

Trade and other receivables

4 249 819

2 347 690

Cash and cash equivalents

12 890 616

12 172 129

17 222 095

14 546 484

Non-current assets Property, plant and equipment

Total assets

1 348 669

237,385

18 570 764

14 783 869

EQUITY AND LIABILITIES Current liabilities 6

Prepaid subscriptions

4 914 212

3 516 778

2 733 438

3 552 224

7 647 650

7 069 002

1 458 679

59 046

9 464 435

7 655 821

10 923 114

7 714 867

18 570 764

14 783 869

Equity Advocacy fund Retained income

Total equity and liabilities

●● ●● ●● ●●

R1 457 169 towards the Property Charter; R600 000 towards the establishment of the Green Buildings Council of South Africa; R255 000 towards Business Against Crime; R1 604 700 towards the Bursary Fund; R1 000 000 towards the Industry Advocacy Fund; R3 914 936 spent since 2010 with regards to legal expenses to protect the rights of members

SAPOA 2014 forecasts ●● ●●

Liabilities Trade and other payables

Over the past few years, SAPOA has contributed the following for the benefit of the industry: ●● ●●

Current assets

Golf days: 1 244 Gala dinners: 600 Networking functions: 4 090 Power-hour breakfasts: 1 639 Workshops: 1 129 SAPOA Convention: 1 213

●● ●● ●● ●● ●● ●●

R33,1-million in revenue R19-million in divisional expenses (2013: R17,5-million; 2012: R13,4-million) R14,1-million in operating expenses (2013: R12,9-million; 2012: R11,6-million) R11,2-million in reserves (2013: R10,9-million; 2012: R7,7-million) Membership fee income up by 11% Educational net income up by 6,4% Operating expenses up by 9,5% Surplus of R300 000, compared with R3,2-million in 2013 and a deficit of R237 000 in 2012

SOUTH AFRICAN PROPERTY REVIEW

Stats_JULY_SUBBED.indd 87

2014/06/24 12:14 PM

off the wall

Food for

architectural thought It appears that foodshaped buildings are the order of the day as modern design feasts on tasty architectural treats By Candace King

hile food serves its purpose in sustaining life, it also acts as a source of inspiration – not only for chefs of the “Master” kind but also for architects of the built environment. While Googling “buildings shaped like food”, some bizarre (and rather tacky) structures come up in the search results, including a giant banana and a milk bottle. However, there is a handful of buildings in the world that are both food-like in design and aesthetically pleasing. The most famous foodie building is 30 St Mary Axe, or the “Gherkin”, an iconic skyscraper located in London’s main financial district (pictured below). Completed in 2003 and opened in 2004, the 180-metre 41-storey Gherkin is renowned for its contemporary design and, of course, its striking resemblance to a pickled cucumber. Situated on the site of the former Baltic Exchange, the Gherkin is the second-tallest building in the CBD and the sixth tallest in London. It was commissioned by Swiss Re. The professional team included architects Foster and Partners, structural engineers Arup, main contractors Skanska Construction UK, and mechanical and electrical engineers Hilson Moran Partnership. The Gherkin has an interesting fact file. It is covered by 24 000m² of external glass. The height of the building is more than three times the height of Niagara Falls, and each floor rotates five degrees from the one below. At any given time, 378 people can be vertically transported through the building at speeds of up to six metres per second. During the early phases of construction, the grave of a teenage Roman girl was discovered, and was then sheltered in the Museum of London during the construction period, before being reinserted at the building’s base. The Gherkin boasts a public plaza with an Arcadian garden, which is open for inhabitants of the city to enjoy. On the nature front, it features sustainable credentials, including natural daylight penetration and ventilation, light level and movement sensors, low-energy light fittings, gas usage, and more. While the Gherkin is an appealing construct, there’s a new food façade on the block that’s turning heads and whetting architectural appetites.

Shaped like a giant glowing doughnut, the recently completed 138-metre Guangzhou Circle skyscraper in Guangzhou, Guangdong, China (pictured above) is an architectural marvel. According to the building’s Italian architect, Joseph di Pasquale of AM Progetti in Milan, it is hoped that it will become a Chinese landmark. Almost 50 metres in diameter and 33 storeys tall, with 85 000m² of floor area and about €50-million of global investment, the Guangzhou Circle is home to the headquarters of Chinese companies Guangdong Hongda Xingye Group and GDPE Guangdong Plastic Exchange. The building boasts additional exclusive office space as well as a hotel. Like a doughnut dunked in coffee, the building is nestled on the edge of the Pearl River – and when reflected in the water below, its shape becomes a figure of eight, a number that is regarded as lucky in the Chinese culture. (For example, the Beijing Olympics kicked off at exactly 8.08am on 8 August 2008 … not superstitious at all!) While the building may appear doughnutlike, that was not the point of inspiration. Di Pasquale notes that the double-disc design was inspired by traditional Chinese propitiatory objects, such as jade-ring necklaces, the number eight and the numerological tradition of feng shui. The front and rear walls of the Guangzhou Circle are clad with copper plates, and the curved side walls are broken down into glazed rectilinear boxes. Within the centre, there are several elevated gardens. The central void of the building is said to be unlike any other in the world. Now that is some food for thought!

SOUTH AFRICAN PROPERTY REVIEW

Off The Wall_JULY_SUBBED.indd 88

2014/06/23 1:07 PM

PASSIONATE ABOUT

INNOVATIVE SUSTAINABILITY

The Intaka Island Environmental Education Centre ‘Eco-Cube’ is an interactive learning facility for scholars and visitors, designed to incorporate innovative sustainable design

WSP is a world leading engineering and design company with 17,000 staff in more than 300 offices in 35 countries. We work across property, transport, infrastructure, industry, environment, energy and mining – demonstrating technical depth and excellence in each and every project. Our experts are passionate about innovation and sustainable design. From employing the latest in renewable energy to natural ventilation systems and environmentally friendly materials, they strive to incorporate sustainable design principles in all the buildings they design. Our people are united by their pride in their work and their passion for solving clients’ problems. Our unique combination of specialist skills backed by global reach will enable us to offer the latest thinking and best client service, whatever and wherever the challenge.

15,000 300 35 EMPLOYEES

OFFICES

COUNTRIES

www.wspgroup.com

Untitled-1 1

2014/06/24 12:25 PM

Proactive Quantity Surveying 3

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

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

QUANTITY SURVEYING

Gerhard de Leeuw

Akopo Africa

Nico Roos

Dr CornĂŠ de Leeuw

DISPUTE RESOLUTION

PROPERTY VALUATION

Untitled-1 1

2014/06/24 12:28 PM

Serra Services (Pty) Ltd : info@serra.co.za Email : +27 (0)11 334-7447 Tel : +27 (0)11 334-7165 or +27 (0)11 334-9858 Fax : www.serra.co.za & www.serramat.co.za Web : PO Box 1217 Southdale, South Africa, 2135 Postal

SERRA速 PRODUCT CATALOGUE Vs 3.2014 - Please Keep For Future Reference

The Complete Washroom Solution.

The Difference Is In The Quality

SERRA® BRANDED PRODUCT GUARANTEE All Serra® branded products come with a no-nonsense replacement/repair guarantee against fabrication defects covering poor workmanship and/or inferior materials. The Guarantee Is Valid Provided: •

The Serra® product is used under normal wear and tear conditions.

•

The Serra® product is installed in accordance with Serra®’s specifications. (Details available with packaging or on request)

•

The Serra® product is properly and firmly mounted utilizing all wall fixing plugs and screws as supplied i.e. installation kit.

•

Only Serra® consumables and refills as supplied and/or recommended by Serra Services (Pty) Ltd are used and dispensed through the unit.

•

Only spares and accessories as specified/supplied by Serra Services (Pty) Ltd are used (where necessary) to maintain the unit.

The Guarantee Is Invalidated Should: •

The Serra® product be incorrectly installed, misused, abused and/or vandalised.

•

The Serra® product is tampered with or modified, or parts thereof go missing.

100% Hygiene Use only Serra® Branded or specified refills, spares, accessories, etc. when required. If it DOES NOT say Serra® then it is NOT the genuine quality guaranteed article.

E.&O.E Notes Products and dimensions may vary from images shown. This document is to be used as a reference tool only. Units are not to scale. Products Available In Bright Anneal/Mirror Finish - Supplied Against Confirmed Orders Only. Serra® hold a number of patents/trademarks these include but are not limited to designs and/or names. © Copyright reserved 2013.

The Difference Is In The Quality

PRODUCT CATALOGUE - INDEX Product Range A.

TABLE OF CONTENTS Description

HAND DRYING SYSTEMS

Page No. 2-5

Serra® Paper Roll Cabinets Serra® Folded Paper Cabinets Serra® Recessed Range B.

WALL BIN SYSTEMS

6-7 Serra® ‘Off The Floor’ Wall Range

AUTOMATIC HAND DRYING SYSTEMS

8-9 Serra® Conventional WAD’s Serra® High Speed WAD’s

SOAP DISPENSING SYSTEMS

10-18 Serra® Spray™ Soap Serra® F.O.A.M™ Soap Serra®Nox™ Systems Serra®Fil™ Serra® Vanity Top Soap & Foam Serra® Hi-Scrub™ Soap & Foam Serra®Lee™ Serra®Cel™

TOILET ROLL DISPENSER SYSTEMS

19-23 Serra® TR™ Range Serra® SQ™ Range Serra® MR™ Range Serra® Side-by-Side Range (Refer Washroom Acccessories)

FEMININE HYGIENE SYSTEMS

24 Serra®EVE™ Bins

PERSONAL HYGIENE SYSTEMS

25 Serra®SAN/TSC™ Toilet Seat Sanitisers

FRAGRANCE SYSTEMS

26 Serra®Air™ Plus 2

WASHROOM ACCESSORIES

27-34 Serra® Washroom Accessories

CLEANING OF STAINLESS STEEL

ADDENDUM

35 - 36 Correct Methods To Clean Stainless Steel 37

Notes Serra Services (Pty) Ltd reserves the right to make changes at any time, without notice, in equipment, specifications and/or models, and is not responsible for typographical errors. Serra® hold a number of patents/trademarks these include but are not limited to designs and/or names. © Copyright reserved 2013.

The Difference Is In The Quality

A. HAND DRYING SYSTEMS

PAGE 2

A1. Paper Roll Cabinets (Lockable - Serra® Snaplock System with Serra® Barrel Key) Serra®Matic™ Plus™

Serra®Matic™ Plus 2™

Product Code

Product Code SD1112

Reg. #: 2003/07571-2

Product Information

SD1113

Reg. # Pending.

Serra® Lever Control™

NEW

Product Information

Product Code SD1117 Product Information

Height

300mm

Height

300mm

Height

375mm

Width

300mm

Width

300mm

Width

310mm

Depth

200mm

Depth

200mm

Depth

335mm

Height From FFL

± 1250mm

Boxed Weight

± 5kg

Composition

Height From FFL

± 1250mm

Boxed Weight

± 5.1kg

Composition

Front Cover - High Grade Stainless Steel Satin Finish. Auto Release/Eject Mechanism. Uniform Paper Lengths.

± 1250mm

Boxed Weight

± 5.4kg

Composition

Front Cover - High Grade Stainless Steel Satin Finish. Auto Release/Eject Mechanism. Uniform Paper Lengths.

Front Cover - High Grade Stainless Steel Satin Finish. Auto Release/Eject Mechanism. Uniform Paper Lengths. Consumables

Consumables

Height From FFL

For proper towel dispensing, unit operation and guarantee use only Serra® premium rolls:

SC0198

737 1 Ply 4/pk

SC0198

737 1 Ply 4/pk

SC0198

737 1 Ply 4/pk

SC0199

915 2 Ply 4/pk

SC0199

915 2 Ply 4/pk

SC0199

915 2 Ply 4/pk

Companion Products

SD1130

Serra® Disposor™

SD1130

Serra® Disposor™

SD1130

Serra® Disposor™

SD1136

Serra® Disposor™ Plus

SD1136

Serra® Disposor™ Plus

SD1136

Serra® Disposor™ Plus

SD1127

Serra® SlimLine Disposor™

SD1127

Serra® SlimLine Disposor™

SD1127

Serra® SlimLine Disposor™

SD1128

Serra® EvoFlex™ Compact Disposor™

SD1128

Serra® EvoFlex™ Compact Disposor™

SD1128

Serra® EvoFlex™ Compact Disposor™

SD1139

Serra® MR SlimLine Disposor™

SD1139

Serra® MR SlimLine Disposor™

SD1139

Serra® MR SlimLine Disposor™ E.&O.E

Notes Products and dimensions may vary from images shown. This document is to be used as a reference tool only. Units are not to scale. Products Available In Bright Anneal/Mirror Finish - Supplied Against Confirmed Orders Only. Serra® hold a number of patents/trademarks these include but are not limited to designs and/or names. © Copyright reserved 2013.

The Difference Is In The Quality

PAGE 3

A. HAND DRYING SYSTEMS

A1. Auto Cut™ Paper Roll Cabinets (Lockable - Serra® Snaplock System with Serra® Barrel Key) Serra® EcoFlex™ Deluxe

Serra® EvoFlex™ Compact

Product Code

NEW

Product Code

SS1118

SS1018

Product Information

Reg. #: A2012/01908

Product Information

Height

370mm

Height

310mm

Width

310mm

Width

285mm

Depth

260mm

Depth

221mm

Height From FFL

± 1250mm

Boxed Weight

± 4.2kg

Composition

Height From FFL

± 1250mm

Boxed Weight

± 3.6kg

Composition

Front Cover - High Grade Stainless Steel Satin Finish. Uniform Paper Lengths. Consumables

For proper towel dispensing and unit operation use only Serra® premium rolls:

SC0198

737 1 Ply 4/pk

SC0198

737 1 Ply 4/pk

SC0199

915 2 Ply 4/pk

SC0199

915 2 Ply 4/pk

Companion Products

SD1130

Serra® Disposor™

SD1130

Serra® Disposor™

SD1136

Serra® Disposor™ Plus

SD1136

Serra® Disposor™ Plus

SD1127

Serra® SlimLine Disposor™

SD1127

Serra® SlimLine Disposor™

SD1128

Serra® EvoFlex™ Compact Disposor™

SD1128

Serra® EvoFlex™ Compact Disposor™

SD1139

Serra® MR SlimLine Disposor™

SD1139

Serra® MR SlimLine Disposor™ E.&O.E

The Difference Is In The Quality

A. HAND DRYING SYSTEMS

PAGE 4

A2. Folded Paper Cabinets (Lockable - Serra® Snaplock System with Serra® Barrel Key) Serra® Flat Folded

Benefits of Using Paper

Serra® MR™ Flat Folded •

‘No touch’ means no germs

•

Cost effective

•

Improved hygiene

•

No noise from a motor

•

Eco friendly - stainless steel is recyclable

NEW

Product Code

SD0968

SD0210 Product Information

Product Information

Height

369mm

Height

340mm

Width

280mm

Width

270mm

Depth

120mm

Depth

120mm

Height From FFL

± 1250mm

Boxed Weight

± 2.2kg

Composition

Height From FFL

± 1250mm

Boxed Weight

± 2.2kg

Composition

High Grade Stainless Steel Satin Finish. Uniform Paper Lengths. Consumables

High Grade Stainless Steel Satin Finish. Uniform Paper Lengths.

•

Individual towels Suggested hand washing technique: Dispense, lather, tap on, rinse.

This method could save up to 45% on water usage. Discard used paper towels in the provided waste receptacle.

Consumables

For proper towel dispensing and unit operation use only Serra® supplied F/Folded Towels 1 or 2 Ply.

SC0298

Tidy F/Folded Towels 319 1Ply

SC0298

Tidy F/Folded Towels 319 1Ply

SC0212

Kleenex Folded Premier Towel 2Ply

SC0212

Kleenex Folded Premier Towel 2Ply

Companion Products

SD1127

Serra® SlimLine Disposor™

SD1127

Serra® SlimLine Disposor™

SD1139

Serra® MR™ SlimLine Disposor™

SD1139

Serra® MR™ SlimLine Disposor™

The Difference Is In The Quality

A. HAND DRYING SYSTEMS

PAGE 5

A3. Recessed Paper Range (Lockable) Serra® Paper Towel Disp

Serra® Paper Towel Disp

Product Code

SD9462

Product Code

SD94623

Product Information

SD9469

Product Information

Height

1370mm

Height

1015mm

Height

1420mm

Width

440mm

Width

360mm

Width

440mm

Depth

150mm

Depth

100mm

Depth

110mm

Height From FFL Composition

Height From FFL

± 1372mm

Composition

Cabinet, Waste Receptacle and Door fabricated of High Grade Stainless Steel Satin Finish. Rimless Locks. Radiused Corners. Consumables

Height From FFL

Composition

Cabinet, Waste Receptacle and Door fabricated of High Grade Stainless Steel Satin Finish. Rimless Locks. Radiused Corners. Consumables

For proper towel dispensing and unit operation use only Serra® supplied F/Folded Towels 1 or 2 Ply.

For proper towel dispensing and unit operation use only Serra® supplied F/Folded Towels 1 or Ply.

SC0298

Tidy F/Folded Towels 319 1Ply

SC0298

Tidy F/Folded Towels 319 1Ply

SC0298

Tidy F/Folded Towels 319 1Ply

SC0212

Kleenex Folded Premier Towel 2Ply

SC0212

Kleenex Folded Premier Towel 2Ply

SC0212

Kleenex Folded Premier Towel 2Ply

RWO (Rough Wall Opening) Minimum 400W x 1334H x 152D mm

Sub Frame Supplied On Request

RWO (Rough Wall Opening) Minimum 324W x 673H x 108D mm

Sub Frame Supplied On Request

RWO (Rough Wall Opening) Minimum 400W x 660H x 100D mm

Sub Frame Supplied On Request E.&O.E

Notes Products and dimensions may vary from images shown. This document is to be used as a reference tool only. Units are not to scale. Serra® hold a number of patents/trademarks these include but are not limited to designs and/or names. © Copyright reserved 2013.

The Difference Is In The Quality

PAGE 6

B. WALL BIN SYSTEMS ‘Off The Floor’ Wall Range Serra® Disposor™ Standard

Product Code

Serra® Disposor™ Plus™

Product Code

SD1130

Product Code

SD1136

Product Information

Serra® SlimLine Disposor™

SD1127

Product Information

Height

385mm

Height

385mm

Height

385mm

Width

340mm

Width

340mm

Width

340mm

Depth

250mm

Depth

290mm

Depth

175mm

Height From FFL Boxed Weight

± 750mm ± 4.5kg

Composition

Boxed Weight

± 750mm ± 4.6kg

Composition

High Grade Stainless Steel Satin Finish. Consumables SD1132

Height From FFL

High Grade Stainless Steel Satin Finish.

Companion Products

SD1132

± 750mm

Boxed Weight

± 4kg

Composition

Consumables Serra® Disposor™ Wall Bin Liners Grey - 200

Height From FFL

High Grade Stainless Steel Satin Finish. Consumables

Serra® Disposor™ Wall Bin Liners Grey - 200

Companion Products

SD1117 Serra® Lever Control Cabinet

SS1118

Serra® EcoFlex™ Deluxe Cabinet

SD1112 Serra®Matic™ Cabinet

SS1018 Serra® EvoFlex™ Compact Cabinet

SD1132

Serra® Disposor™ Wall Bin Liners Grey - 200

Companion Products SD0210

Serra® Flat Folded Dispenser

SD0968

Serra® MR™ Flat Folded Dispenser

The Difference Is In The Quality

B. WALL BIN SYSTEMS

PAGE 7

‘Off The Floor’ Wall Range Serra® EvoFlex™ Compact

Serra® MR™ SlimLine

Why Stainless Steel? •

An investment in timeless and elegant quality.

•

It has become the material of choice for domestic, commercial & industrial use and is compatible with any décor and colour

NEW

Product Code SD1128

Product Code SD1139

Reg. #: A2012/01907

Reg. # Pending.

NEW

scheme. •

It is prized for its exceptional durability, great strength, its

Product Information

Height

380mm

Height

385mm

Width

340mm

Width

345mm

Depth

210mm

Depth

215mm

Height From FFL

± 750mm

Boxed Weight

Height From FFL

± 4.1kg

Boxed Weight

•

± 750mm

Consumables

won’t rust, tarnish or discolour with age. It cleans quickly &

Consumables Serra® Disposor™ Wall Bin Liners Grey - 200

Companion Products

SD1132

Serra® Disposor™ Wall Bin Liners Grey - 200

easily to a hygienic and germ free finish. •

SD0968

Serra® MR™ Flat Folded Dispenser

Stainless Steel should be the preferred choice in meeting the legislated HACCP hygiene

Companion Products

Serra® EvoFlex™ Compact Cabinet

Stainless Steel has a life expectation of over a 100 years. It

± 4.2kg

High Grade Stainless Steel in Satin Finish.

SS1018

hygiene properties.

Composition

SD1132

aesthetic appeal and superior

management standards. •

Take a look at contemporary design. Classic Stainless Steel is every where. It is the ideal timeless quality material.

The Difference Is In The Quality

C. AUTOMATIC HAND DRYING SYSTEMS

PAGE 8

C1. Conventional WAD’s Serra® 2200CA™

Benefits of Using Fully Auto WAD’s

Serra® 2200SA™

Product Code

SD1101

SD1106

Product Information

Height

212mm

Height

212mm

Width

310mm

Width

310mm

Depth

177mm

Depth

177mm

Height From FFL Boxed Weight

± 1000mm ± 5.8kg

Composition Outer Cover DCA - Chrome Plated. Technical Information

Height From FFL Boxed Weight

± 1000mm ± 6.7kg

Composition Outer Cover - High Grade Stainless Steel Satin Finish. Technical Information

100% moisture-proof integrated infra-red sensor. Fully automatic no-touch start-up within 0.6 of a second. Automatic switch-off within 3 seconds of hand removal.

Motor: 200 watt induction, 2.6Kw, 2850rpm with thermal protection overload. Thermostat set at 105ºC. Air-Volume Output: ± 274m³/hr. Drying Time: 20 - 25s.

•

‘No touch’ means no germs.

•

Cost effective.

•

Improved hygiene.

•

Less wear and tear.

•

Eco friendly.

•

Concentrated air flow.

•

Short drying time.

•

No waste paper.

•

No refills required. Suggested hand washing technique: Dispense, lather, tap on, rinse.

This method could save up to 45% on water usage.

E.&O.E Notes ALL Automatic Hand Drying Systems MUST be installed by a qualified electrician as per relevant legislation and/or SABS Code of Practice. Products and dimensions may vary from images shown. This document is to be used as a reference tool only. Units are not to scale. Serra® hold a number of patents/trademarks these include but are not limited to designs and/or names. © Copyright reserved 2013.

The Difference Is In The Quality

PAGE 9

C. AUTOMATIC HAND DRYING SYSTEMS C2. High Speed WAD’s Serra® XPRS™

Serra® XPRS™ Plus

Product Code

Serra® Eco-XPRS™

Product Code

SD1085

Product Code

SD1083

Product Information

SD1081

Product Information

Height

212mm

Height

277mm

Height

335mm

Width

310mm

Width

201mm

Width

200mm

Depth

177mm

Depth

175mm

Depth

165mm

Height From FFL Boxed Weight

±1000mm ± 5.4kg

Composition High Grade Stainless Steel in Satin Finish. Technical Information

Height From FFL Boxed Weight

±1000mm ± 6.1kg

Composition High Grade Stainless Steel in Satin Finish. Technical Information

Operation: 100% moisture-proof integrated self adjusting infra-red sensor. Fully automatic no-touch start-up. 40 second auto shut off protection. Drying Time: Less than 10 seconds Air-Volume Output: Single jet air flow, 115 m/s (adjustable). Dryer shall deliver 101.7m³/h

Operation: 100% moisture-proof integrated self-adjusting infra-red sensor. Fully automatic no-touch start-up. 40-second auto shut off protection. Drying Time: 8 - 10 seconds. Air-Volume Output: Single jet air flow, 115 m/s (adjustable). Dryer shall deliver 101.7m³/h

Motor: 350 - 700 watt 12000-18000rpm adjustable with thermal protection overload. Thermostat set at 105ºC.

Motor: 350 - 700 watt, 12000 18000rpm. Brush type. Dual Ball Bearings. Adjustable with thermal protection overload. Auto reset thermostat unit turns off at 105ºC.

Heating Element: Nickel Chromed Blackheat 450 - 900 watts with thermal protection overload. Thermostat set at 85ºC.

Height From Ground Boxed Weight

± 1000mm ± 4.9kg

Composition High Grade Stainless Steel in Satin Finish. Technical Information Operation: 100% moisture-proof integrated adjustable infrared sensor. Fully automatic self-adjusting start-up. 60-second auto shut off protection. Drying Time: 8 - 10 seconds. Air-Volume Output: Single jet air flow, 90 m/s. Dryer shall deliver 101.7m³/h Motor: 500 watt, 29000rpm, 11/16HP. Brush type. Dual Ball Bearings. Adjustable with thermal protection overload. Auto reset thermostat unit turns off at 105ºC. Heating Element: Nickel Chromed Blackheat 500 watts with thermal protection overload. Auto reset thermostat unit turns off at 85ºC. E.&O.E

Notes ALL Automatic Hand Drying Systems MUST be installed by a qualified electrician as per relevant legislation and/or SABS Code of Practice. Products and dimensions may vary from images shown. This document is to be used as a reference tool only. Units are not to scale. Serra® hold a number of patents/trademarks these include but are not limited to designs and/or names. © Copyright reserved 2013.

The Difference Is In The Quality

D. SOAP DISPENSING SYSTEMS

PAGE 10

D1. Spray Soap (Lockable - Serra® Snaplock System with Serra® Barrel Key) Serra® Bactisan™ 400ml

Serra® Spray Soap MK3 400ml

Product Code SD1981

Product Code Reg. #: 000332770 1/20 000332770 -0002

Product Information

SD1931

Serra® Spray Soap MK2 800ml

Product Code Reg. #: A2004/1753/4 000332770 1/20

Product Information

SD1941

Reg. #: A2004/1753/4 000332770 -0002

Product Information

Height

200mm

Height

200mm

Height

290mm

Width

100mm

Width

100mm

Width

100mm

Depth

100mm

Depth

100mm

Depth

Height From FFL

± 1250mm

Boxed Weight

± 1kg

Composition

Height From FFL

± 1250mm

Boxed Weight

± 1kg

Composition

High Grade Stainless Steel Satin Finish. Technical Information

100mm

Height From FFL

± 1250mm

Boxed Weight

± 1.2kg

Composition

High Grade Stainless Steel Satin Finish. Technical Information

Capacity: 400ml sachet. Provides in excess of ± 2000 single ‘shot’ applications.

Capacity: 800ml sachet. Provides in excess of ± 4000 single ‘shot’ applications.

Operation: Push button action.

Shot Volume: ± 0,2ml per shot.

Consumables

Serra® Bactisan Hand Sanitizing Liquid - 400ml SD1632

Clear Bactisan 10/pk

Consumables

Serra® Spray Soap Refills – 400ml

Serra® Spray Soap Refills – 800ml

SD1651

Pink Pearl 10/pk

SD1671

Pink Pearl 10/pk

SD1652

Clear Anti Bac 10/pk

SD1672

Clear Anti Bac 10/pk

SD1674

Blue Heavy Duty 10/pk

The Difference Is In The Quality

D. SOAP DISPENSING SYSTEMS

PAGE 11

D1. Spray & F.O.A.M™ Soap (Lockable - Serra® Snaplock System with Serra® Barrel Key) Serra® Spray Lotion 400ml

Product Code SD1951

Serra® Bacti F.O.A.M™ 400ml

Product Code

Product Code Reg. #: 000332770 -0002

Product Information

SD1982

Serra® F.O.A.M™ Hand Lotion

Reg. #: 000332770 -0002

SD1952

Reg. #: 000332770-0002

Product Information

Height

200mm

Height

200mm

Height

200mm

Width

100mm

Width

100mm

Width

100mm

Depth

100mm

Depth

100mm

Height From FFL

Depth

± 1250mm

Boxed Weight

Height From FFL

± 1.1kg

Composition

± 1250mm

Boxed Weight

± 1kg

Technical Information

± 1250mm

Boxed Weight

± 1kg

Composition

High Grade Stainless Steel Satin Finish.

Height From FFL

High Grade Stainless Steel Satin Finish. Technical Information

Capacity: 400ml sachet. Provides in excess of ± 2000 single ‘shot’ applications.

Capacity: 800ml sachet. Provides in excess of ± 1600 single ‘shot’ applications.

Capacity: 400ml sachet. Provides in excess of ± 800 single ‘shot’ applications.

Operation: Push button action.

Shot Volume: ± 0,2ml per shot.

Shot Volume: ± 0,5ml per shot.

Consumables

Serra® Spray Hand Cream - 400ml

Serra® Bacti F.O.A.M™ Refills - 400ml

Serra® Hand Cream 400ml

SD1691

SD1633

SD1692

Pink 10/pk

Clear 10/pk

Pink 10/pk

The Difference Is In The Quality

D. SOAP DISPENSING SYSTEMS

PAGE 12

D2. F.O.A.M™ Soap (Lockable - Serra® Snaplock System with Serra® Barrel Key) Serra® F.O.A.M™ Soap 400ml

Product Code SD1991

Serra® F.O.A.M™ Soap 800ml

Product Code Reg. #: 000332770-0002

Product Information

SD1995

Serra® Auto F.O.A.M™ 800ml

NEW

Product Code Reg. #: 000332770- 1/20

Product Information

SD2005

Patent #: 2013/04318

Product Information

Height

200mm

Height

290mm

Height

260mm

Width

100mm

Width

100mm

Width

106mm

100mm

Depth

100mm

Depth

Depth Height From FFL

± 1250mm

Boxed Weight

± 1kg

Composition

Height From FFL

± 1250mm

Boxed Weight

± 1.1kg

Technical Information

± 1250mm

Boxed Weight

± 1.2kg

Composition

High Grade Stainless Steel Satin Finish.

107mm

Height From FFL

High Grade Stainless Steel Satin Finish. Technical Information

Capacity: 400ml sachet. Provides in excess of ± 800 single ‘shot’ applications.

Capacity: 800ml sachet. Provides in excess of ± 1600 single ‘shot’ applications.

Operation: Push button action.

Operation: Infra-red Activation.

Shot Volume: ± 0,5ml per shot.

Consumables

Serra® F.O.A.M™ Soap Refills 400ml

Serra® F.O.A.M™ Soap Refills 800ml

Serra® Auto F.O.A.M™ Refills - 800ml

SD1650

SD1673

SD1675

White 10/pk

The Difference Is In The Quality

PAGE 13

D. SOAP DISPENSING SYSTEMS D2. F.O.A.M™ Soap (Lockable - Serra® Snaplock System with Serra® Barrel Key)

Benefits of Using F.O.A.M™ Soap

Serra® F.O.A.M™ AntiBac 400ml Serra® F.O.A.M™ AntiBac 800ml

Product Code SD2001

Product Code Reg. #: 000332770-0002

Product Information

SD2003

Reg. #: 000332770- 1/20

Product Information

Height

200mm

Height

290mm

Width

100mm

Width

100mm

Depth

Depth Height From FFL

± 1250mm

Boxed Weight

± 1kg

Composition

100mm

Height From FFL

± 1250mm

Boxed Weight

± 1.1kg

Composition

High Grade Stainless Steel Satin Finish. Technical Information

16% less water is used.

•

Saving on water costs.

•

Less product is used per wash.

•

Time saving on washing hands.

•

More user friendly.

•

Eco friendly - no thickening agents added. Suggested hand washing technique: Dispense, lather, tap on, rinse.

This method could save up to a further ± 45% on water usage compared to liquid soap use.

High Grade Stainless Steel Satin Finish. Technical Information

Capacity: 400ml sachet. Provides in excess of ± 800 single ‘shot’ applications.

Capacity: 800ml sachet. Provides in excess of ± 1600 single ‘shot’ applications.

Operation: Push button action.

Shot Volume: ± 0,5ml per shot.

Consumables

•

Consumables

Serra® AntiBac F.O.A.M™ Soap Refills

SD1653

SD1675

Clear 400ml 10/pk

Clear 800ml 10/pk

The Difference Is In The Quality

D. SOAP DISPENSING SYSTEMS

PAGE 14

D3. Liquid (Bulk Fill/Top Up) Soap Dispenser Range - Lockable Serra®Nox3™

Serra® F.O.A.M Nox3™

Serra®Nox MR SQ™

Foam Model - Launch Date TBA.

Product Code SD1226

Product Code Reg. #: 2006/0924 Reg. #: F2011/02021/02022 Reg. #: F2011/02024/02025

Product Information

SD1226F

NEW

Product Information

Product Code SD1216

Reg. #: F2011/02020/02022 Reg. #: F2011/02023/02025

Product Information

Height

208mm

Height

208mm

Height

165mm

Width

123mm

Width

123mm

Width

186mm

100mm

Depth

100mm

Depth

Depth Height From FFL

± 1250mm

Boxed Weight

± 0.73kg

Composition

Height From FFL

± 1250mm

Boxed Weight

± 0.73kg

Composition

High Grade Stainless Steel Satin Finish. Technical Information

78mm

Height From FFL

± 1250mm

Boxed Weight

± 0.90kg

Composition

High Grade Stainless Steel Satin Finish. Technical Information

Capacity: 1250ml. Provides in excess of ± 1000 single ‘shot’ applications.

Capacity: 1400ml. Provides in excess of ± 1100 single ‘shot’ applications.

Operation: Push button action.

Shot Volume: ± 1,2ml per shot.

Shot Volume: ± 1,3ml per shot.

Consumables

Serra® Soap

SC0102

AntiBac 5l

SC0109

SC0102

AntiBac 5l

SC0106

Pink Cosmetic H/Soap 5l

SC0106

Pink Cosmetic H/Soap 5l

SC0112

Shower Gel 5l

SC0112

Shower Gel 5l

F.O.A.M H/Soap 5l

E.&O.E Notes Products and dimensions may vary from images shown. This document is to be used as a reference tool only. Units are not to scale. Serra® hold a number of patents/trademarks these include but are not limited to designs and/or names. © Copyright reserved 2013.

The Difference Is In The Quality

D. SOAP DISPENSING SYSTEMS

PAGE 15

D3. Liquid (Bulk Fill/Top Up) Soap Dispenser Range - Lockable Serra® F.O.A.M Nox MR SQ™

Foam Model - Launch Date TBA.

Product Code SD1216F

NEW

Product Information

Benefits of Using Stainless Steel

Serra®Fil™

Water will not corrode stainless steel, and the metal typically dries very quickly.

•

In a stainless steel washroom, germs have nowhere to go. Most stainless steel dispensers are smooth, without cracks or crevices where bacteria could cultivate. This on its own creates a more sanitary space.

•

Easy to wash and cleanliness becomes a major benifit of a washroom in this style.

•

For the enviromentally conscious, another advantage of stainless steel washroom is its sustainability.

•

Stainless steel is typically a recycable material. In this way, owners can enjoy something new without exploiting any natural resources, and can rest assured thet their pieces may one day be recycled, as well.

•

Most economical material based on LCC (Life Cycle Costing)

Product Code SD1280

Reg. #: 87/0795

Product Information

Height

165mm

Height

210mm

Width

186mm

Width

105mm

78mm

Depth

111mm

Depth Height From FFL

•

± 1250mm

Boxed Weight

± 0.90kg

Composition

Surface Mounted Boxed Weight

± 1kg

Composition

High Grade Stainless Steel Satin Finish. Technical Information

High Grade Stainless Steel Satin Finish with Chrome Plated Brass pump. Technical Information

Capacity: 1400ml. Provides in excess of ± 1100 single ‘shot’ applications.

Capacity: 1000ml. Provides in excess of ± 1000 single ‘shot’ applications.

Operation: Push button action.

Operation: Downward push action, gravity fed.

Shot Volume: ± 1,3ml per shot.

Shot Volume: ± 1ml per shot. Consumables

Consumables Serra® Soap

Serra® Soap

SC0109

SC0102

AntiBac 5l

SC0106

Pink Cosmetic H/Soap 5l

SC0112

Shower Gel 5l

F.O.A.M H/Soap 5l

The Difference Is In The Quality

PAGE 16

D. SOAP DISPENSING SYSTEMS D3. Liquid (Bulk Fill/Top Up) Soap Dispenser Range Serra® F.O.A.M Vanity Top 4” & 6”

Serra® Vanity Top 4” & 6”

Product Code

Product Code SD1251

4 Inch Spout.

SD1252

4 Inch Spout.

SD1256

6 Inch Spout.

SD1257

6 Inch Spout.

Product Information Height Disp + Vanity Top

NEW

Product Information 230+70mm

Height Disp + Vanity Top

230+88mm

Width (Spout) 4”

100mm

Width (Spout) 4”

100mm

Width (Spout) 6”

150mm

Width (Spout) 6”

150mm

Depth

50mm

Depth

50mm

Shank Hole

25mm

Shank Hole

Boxed Weight

± 0.62kg

Boxed Weight

25mm ± 0.8kg

Composition

Solid Brass Chrome-Plated with Bright Chrome Finish.

Solid Brass Chrome-Plated with Bright Chrome Finish. Technical Information

Technical Information

Capacity: 1000ml. Provides in excess of ± 1000 single ‘shot’ applications.

Operation: Downward push action.

Pump Valve: Modular valve assembly.

Pump Valve: Modular valve assembly. Consumables

Consumables Serra® Soap

Serra® Soap - Light Viscosity

SC0102

AntiBac 5l

SC0102

AntiBac 5l

SC0106

Pink Cosmetic H/Soap 5l

SC0106

Pink Cosmetic H/Soap 5l

SC0112

Shower Gel 5l E.&O.E

The Difference Is In The Quality

PAGE 17

D. SOAP DISPENSING SYSTEMS D3. Liquid (Bulk Fill/Top Up) Soap Dispenser Range Serra® Hi-Scrub

Why Hi-Scrub?

Serra® F.O.A.M Hi-Scrub •

Specially designed for all health care scrub and high risk areas - safe, user-friendly, No hands operation reducing cross contamination.

• Product Code SD1261

SD1262

elbow operation by a gentle downward pump action. Dis-

295mm

Height

Width

70mm

Width

70mm

Depth

290mm

Depth

290mm

Height From FFL Boxed Weight

is intended for “hands-free”

Product Information

Product Information Height

tem of the Serra® Hi-Scrub™

NEW

Product Code

± 1000mm ± 0.4kg

Composition

pense by, simply pushing the

295mm

Height From FFL Boxed Weight

extended arm downwards with an elbow, allowing the hands

± 1000mm

to be kept totally free from con-

± 0.4kg

tact with either the frame or the container.

Composition

High Grade Stainless Steel Bracket, Plastic Bottle and Pump. Technical Information

The dispensing method/ sys-

High Grade Stainless Steel Bracket, Plastic Bottle and Pump.

•

Technical Information

The use of high quality Stainless Steel material makes the

Capacity: 500ml. Provides in excess of ± 700 single ‘shot’ applications.

Capacity: 500ml. Provides in excess of ± 1250 single ‘shot’ applications.

product more hygienic, easier

Operation: Elbow - operated, downward push action, gravity fed.

corrosion free.

Shot Volume: ± 0,7ml

Shot Volume: ± 0,4ml

Consumables

Serra® Soap

SC0102

AntiBac 5l

SC0102

AntiBac 5l

SC0106

Pink Cosmetic H/Soap 5l

SC0106

Pink Cosmetic H/Soap 5l

SC0112

Shower Gel 5l

SC0112

Shower Gel 5l

to clean and totally rust and

•

Specially designed for all health care scrub and high risk areas - safe, user-friendly, No hands operation reducing cross contamination.

The Difference Is In The Quality

D. SOAP DISPENSING SYSTEMS

PAGE 18

D3. Liquid (Bulk Fill/Top Up) Soap Dispenser Range Serra®Lee™

Serra®Cel™

Serra®Lee™ - Lockable

Product Code

SD1199

Product Code

SD1203

Product Information Height

260mm

Height

185mm

Width

80mm

Width

97mm

Depth

110mm

Depth

90mm

Height

Width

80mm

Depth

110mm

Boxed Weight

Product Information

Product Information 260mm

Height From FFL

SD1231

± 1250mm

Height From FFL

± 0.4kg

Composition

Boxed Weight

± 1250mm ± 0.4kg

Composition

High Impact Thermal Plastic - Bronze. Technical Information

Height From FFL Boxed Weight

± 1250mm ± 0.4kg

Composition

High Impact Thermal Plastic - Blue/ Grey Technical Information

High Impact Thermal Plastic - White. Technical Information

Capacity: 1000ml. Provides in excess of ± 1000 single ‘shot’ applications.

Capacity: 800ml. Provides in excess of ± 600 single ‘shot’ applications.

Operation: Gentle push button action.

Shot Volume: ± 1ml.

Shot Volume: ± 1,33ml.

Pump: Filter protected, modular one part diaphragm.

Consumables

Serra® Soap

SC0102

AntiBac 5l

SC0102

AntiBac 5l

SC0102

AntiBac 5l

SC0103

AntiBac 25l

SC0103

AntiBac 25l

SC0103

AntiBac 25l

SC0106

Pink Cosmetic H/Soap 5l

SC0106

Pink Cosmetic H/Soap 5l

SC0106

Pink Cosmetic H/Soap 5l

SC0107

Pink Cosmetic H/Soap 25l

SC0107

Pink Cosmetic H/Soap 25l

SC0107

Pink Cosmetic H/Soap 25l

SC0112

Shower Gel 5l

SC0112

Shower Gel 5l

SC0112

Shower Gel 5l E.&O.E

The Difference Is In The Quality

E. TOILET ROLL DISPENSERS

PAGE 19

E1. Serra®Rol™ TR Range Lockable - Serra® Snaplock System with Serra® Barrel Key Serra®Rol™ TR2 - White

Serra®Rol™ TR3 - White

Product Code

Product Code SD1305

Reg. #: A2005/0718 A2005/0719

Product Information

SD1315

Reg. #: A2005/0718 A2005/0719

Product Information

Height

255mm

Height

355mm

Width

125mm

Width

125mm

Depth

130mm

Depth

130mm

Height From FFL Boxed Weight

± 1100mm ± 1.4kg

Composition

Height From FFL Boxed Weight

± 1100mm ± 2kg

Composition

Mild Steel in High Quality Appliance White Powder Coated Finish. Consumables

Serra® Toilet Paper

SC0201

Std Roll 1ply 500’s 48/pk

SC0201

Std Roll 1ply 500’s 48/pk

SC0205

Maxi Roll 1ply 1000’s 24/pk

SC0205

Maxi Roll 1ply 1000’s 24/pk

SC0204

Unwrapped 2ply 350’s 48/pk

SC0204

Unwrapped 2ply 350’s 48/pk

The Difference Is In The Quality

E. TOILET ROLL DISPENSERS

PAGE 20

E1. Serra®Rol™ TR Range Lockable - Serra® Snaplock System with Serra® Barrel Key Serra®Rol™ TR2

Serra®Rol™ TR3

Product Code SD1310

Serra®Rol™ TR5

Product Code Reg. #: A2005/0718 A2005/0719

Product Information

SD1320

Product Code Reg. #: A2005/0718 A2005/0719

Product Information

SD1330

Reg. #: A2005/0718 A2005/0719

Product Information

Height

255mm

Height

355mm

Height

555mm

Width

125mm

Width

125mm

Width

125mm

130mm

Depth

130mm

Depth

Depth Height From FFL

± 1100mm

Boxed Weight

± 1.5kg

Composition

Height From FFL

± 1100mm

Boxed Weight

± 1.7kg

Composition

High Grade Stainless Steel Satin Finish. Consumables

130mm

Height From FFL

± 1100mm

Boxed Weight

± 2.6kg

Composition

High Grade Stainless Steel Satin Finish. Consumables

Serra® Toilet Paper

SC0201

Std Roll 1ply 500’s 48/pk

SC0201

Std Roll 1ply 500’s 48/pk

SC0201

Std Roll 1ply 500’s 48/pk

SC0205

Maxi Roll 1ply 1000’s 24/pk

SC0205

Maxi Roll 1ply 1000’s 24/pk

SC0205

Maxi Roll 1ply 1000’s 24/pk

SC0204

Unwrapped 2ply 350’s 48/pk

SC0204

Unwrapped 2ply 350’s 48/pk

SC0204

Unwrapped 2ply 350’s 48/pk

Companion Products

SD1921

Serra®SAN™/TSC - Gothic

SD1921

Serra®SAN™/TSC - Gothic

SD1921

Serra®SAN™/TSC - Gothic

SD1923

Serra®SAN™/TSC

SD1923

Serra®SAN™/TSC

SD1923

Serra®SAN™/TSC

The Difference Is In The Quality

PAGE 21

E. TOILET ROLL DISPENSERS

E2. Serra®Rol™ SQ Range Lockable - Serra® Auto Snaplock System with Serra® Barrel Key Serra®Rol™ SQ2 - White

Benefits of Using Serra®Rol

Serra®Rol™ SQ3 - White •

Labour saving.

•

Accommodates Std & Maxi Rolls.

•

Universal Serra® Barrel Key - one key fits all.

Product Code

Product Code SD1335

Reg. #: 91/0366 2092570 2003/07860 A2005/0718 A2005/0719

Product Information

SD1345

Reg. #: 91/0366 2092570 2003/07860 A2005/0718 A2005/0719

Product Information

Height

250mm

Height

372mm

Width

130mm

Width

130mm

Depth

130mm

Depth

130mm

Height From FFL Boxed Weight

± 1100mm ± 1.4kg

Composition

Height From FFL Boxed Weight

± 1100mm ± 2.2kg

Composition

Mild Steel in High Quality Appliance White Powder Coated Finish. Consumables

Mild Steel in High Quality Appliance White Powder Coated Finish.

•

Easy to operate.

•

Allows ‘keyless’ auto lock of unit.

•

Unit remains clean and hygienic.

•

Provides a neat finish.

•

No exposed edges.

•

Durable.

•

Hygienic.

•

Aesthetically pleasing.

•

Rust and corrosion resistant.

•

Roll level is visible at all times.

•

Allows ease of maintenance without opening unit.

Consumables

Serra® Toilet Paper

SC0201

Std Roll 1ply 500’s 48/pk

SC0201

Std Roll 1ply 500’s 48/pk

SC0205

Maxi Roll 1ply 1000’s 24/pk

SC0205

Maxi Roll 1ply 1000’s 24/pk

SC0204

Unwrapped 2ply 350’s 48/pk

SC0204

Unwrapped 2ply 350’s 48/pk

•

Unique thumb friendly roll release spring. Registerd design.

The Difference Is In The Quality

E. TOILET ROLL DISPENSERS

PAGE 22

E2. Serra®Rol™ SQ Range Lockable - Serra® Snaplock System with Serra® Barrel Key Serra®Rol™ SQ2

Serra®Rol™ SQ3

Product Code SD1340

Serra®Rol™ SQ5

Product Code Reg. #: 91/0366 2092570 2003/07860 A2005/0718 A2005/0719

Product Information

SD1350

Product Code Reg. #: 91/0366 2092570 2003/07860 A2005/0718 A2005/0719

SD1360

Product Information

Reg. #: 91/0366 2092570 2003/07860 A2005/0718 A2005/0719

Product Information

Height

255mm

Height

355mm

Height

555mm

Width

125mm

Width

125mm

Width

125mm

135mm

Depth

135mm

Depth

Depth Height From FFL

± 1100mm

Boxed Weight

± 1.4kg

Composition

Height From FFL

± 1100mm

Boxed Weight

± 2kg

Consumables

± 1100mm

Boxed Weight

± 3kg

Composition

High Grade Stainless Steel Satin Finish.

135mm

Height From FFL

High Grade Stainless Steel Satin Finish. Consumables

Serra® Toilet Paper

SC0201

Std Roll 1ply 500’s 48/pk

SC0201

Std Roll 1ply 500’s 48/pk

SC0201

Std Roll 1ply 500’s 48/pk

SC0205

Maxi Roll 1ply 1000’s 24/pk

SC0205

Maxi Roll 1ply 1000’s 24/pk

SC0205

Maxi Roll 1ply 1000’s 24/pk

SC0204

Unwrapped 2ply 350’s 48/pk

SC0204

Unwrapped 2ply 350’s 48/pk

SC0204

Unwrapped 2ply 350’s 48/pk

Companion Products

SD1921

Serra®SAN™/TSC - Gothic

SD1921

Serra®SAN™/TSC - Gothic

SD1921

Serra®SAN™/TSC - Gothic

SD1923

Serra®SAN™/TSC

SD1923

Serra®SAN™/TSC

SD1923

Serra®SAN™/TSC

The Difference Is In The Quality

E. TOILET ROLL DISPENSERS

PAGE 23

E3. Serra®Rol™ MR Range Lockable - Serra® Snaplock System with Serra® Barrel Key Serra®Rol™ MR2

Serra®Rol™ MR3

Product Code SD1343

Product Code Reg. #: 000332770-3/4 A2004/1825 A2004/01822

Product Information

SD1353

Reg. #: A2004/1823 000332770-3/4 A2004/018124

Product Information

Height

255mm

Height

335mm

Width

125mm

Width

125mm

Depth

130mm

Depth

130mm

Height From FFL

± 1100mm

Boxed Weight

Height From FFL

± 1.4kg

Composition

± 1100mm

Boxed Weight

± 2kg

Composition

High Grade Stainless Steel Satin Finish. Consumables

Serra® Toilet Paper

SC0201

Std Roll 1ply 500’s 48/pk

SC0201

Std Roll 1ply 500’s 48/pk

SC0205

Maxi Roll 1ply 1000’s 24/pk

SC0205

Maxi Roll 1ply 1000’s 24/pk

SC0204

Unwrapped 2ply 350’s 48/pk

SC0204

Unwrapped 2ply 350’s 48/pk

Companion Products

SD1921

Serra®SAN™/TSC - Gothic

SD1921

Serra®SAN™/TSC - Gothic

SD1923

Serra®SAN™/TSC

SD1923

Serra®SAN™/TSC

The Difference Is In The Quality

F. FEMININE HYGIENE SYSTEMS

Serra®EVE™ Sachet Holder

Product Code

PAGE 24

Serra®EVE™ Plus Sani Bin

Product Code

SD1507

Product Information

SD1501

Grey

SD1500

White

SD1502

Product Information

Height

162mm

Height

Width

90mm

Width

Weight

± 0.3kg

Weight

Composition

Product Information 500mm 200mm ± 1.2kg

Composition

High Grade Stainless Steel Satin Finish.

Consumables

Serra®EVE™ Petite Sani Bin

Height

360mm

Width

200mm

Weight

± 0.9kg

Composition

Auto Shut™ Top Lid - Polypropylene Body - ABS

Auto Shut™ Top Lid - Polypropylene Body - ABS Grey.

Operation: Auto Shut™ Lid with integral shute for content concealment. Hand operated.

Consumables

Serra®EVE™

SC1512

Sachet Disposal packets qty 1000 White

SC1510/1

Liner Bags - Heavy Duty qty 200 White

SC1510/1

Liner Bags - Heavy Duty qty 200 White

SC0209

Serra®EVE™ Sachets in box qty 20/box

SC1512

Sachet Disposal packets qty 1000 White

SC1512

Sachet Disposal packets qty 1000 White

SC0209

Serra®EVE™ Sachets in box qty 20/box

SC0209

Serra®EVE™ Sachets in box qty 20/box

Companion Products SD1507

Serra®EVE™ Sani Sachet Holder Stainless Steel Satin Finish.

Companion Products SD1507

Serra®EVE™ Sani Sachet Holder Stainless Steel Satin Finish. E.&O.E

The Difference Is In The Quality

PAGE 25

G. PERSONAL HYGIENE SYSTEMS Lockable - Serra® Snaplock System with Serra® Barrel Key Serra®SAN™/TSC

Product Code

Product Code SD1921

SD1923

Reg. #: A2006/0961

Product Information

Patent #: 2013/04318

Product Information

Height

200mm

Height

200mm

Width

100mm

Width

100mm

Depth

100mm

Depth

100mm

Height From FFL

± 1110mm

Boxed Weight

± 1kg

Composition

Height From FFL

± 1110mm

Boxed Weight

± 1kg

Composition

High Grade Stainless Steel Satin Finish. Technical Information

High Grade Stainless Steel Satin Finish.

Capacity: 400ml sachet. Provides in excess of ± 800 single ‘shot’ applications.

Operation: Push button action.

Shot Volume: ± 0,2ml per shot.

Shot Volume: ± 0,5ml per shot.

Consumables

•

Kills bacteria found on the toilet seat.

•

99.9% effective.

•

Reduces cross contamination.

•

Quick drying.

•

Reduces the spread of illnesses. Suggested technique:

Take toilet paper,dispense product onto paper, wipe, discard paper in the toilet bowl, sit This product can be safely used on toilet door handles to avoid further contamination.

Technical Information

Capacity: 400ml sachet. Provides in excess of ± 2000 single ‘shot’ applications.

Consumables

Serra®SAN™ TSC 400ml SD1612

Benefits of Using Serra®SAN™/TSC

Serra®SAN™/TSC F.O.A.M™

Serra®SAN™/TSC 10/pk

Serra®SAN™ TSC 400ml SD1612

Serra®SAN™/TSC 10/pk

The Difference Is In The Quality

PAGE 26

H. FRAGRANCE SYSTEMS Lockable - Serra® Snaplock System with Serra® Barrel Key Serra®Air™ Plus 2

Benefits of Using Serra®Air™

Serra®Air™ Plus 2 Gothic

Product Code

SD0527

•

Air purifier & deodorizes.

•

Antibacterial.

•

Masks unpleasant odours.

•

Atomises fragrance.

•

Quick drying.

•

Reduces the spread of illnesses.

SD0529

Product Information

•

Product Information

Environmentally friendly no areosol can and no cost of

Height

182mm

Height

182mm

Width

86mm

Width

86mm

disposal of cans, re-cyclable

Depth

65mm

Depth

65mm

container.

Height From FFL

± 2000mm

Boxed Weight

± 0.8kg

Composition

Height From FFL

± 2000mm

Boxed Weight

± 0.8kg

Composition

Polypropylene unit with a High Grade Stainless Steel cover, Satin Finish. Technical Information

Capacity: 200ml bottle. Provides in excess of ± 3800 single ‘shot’ applications.

Operation: Programmable timer.

Shot Volume: ± 0,05ml per shot.

Consumables

•

User friendly.

•

Programmable. Suggested use of fragrance: Rotate scents to avoid olfactory fatigue (information available).

Consumables

Serra®Air™ Refills - 200ml

SD0540

Serra®Air™ Grape

SD0540

Serra®Air™ Grape

SD0543

Serra®Air™ Citrus

SD0543

Serra®Air™ Citrus

SD0545

Serra®Air™ Tutti Flower

SD0545

Serra®Air™ Tutti Flower

SD1410

Batteries - size AA

SD1410

Batteries - size AA

The Difference Is In The Quality

PAGE 27

I. WASHROOM ACCESSORIES Stainless Steel Accessories Serra® Condom Dispenser

Serra® Utility Shelf

Serra® Bowl Type Cigarette Urn

Product Code

SD0692

SD0221 Product Information

SD2069

Product Information

Height

Product Information

400mm

Length

1015mm

Height

705mm

Width

80mm

Width

440mm

Width

441mm

Depth

135mm

Depth

160mm

Depth

102mm

Height From Ground

± 1200mm

Composition High Grade Stainless Steel unit.

Composition High Grade Stainless Steel.

Composition High Grade Stainless Steel. Internal waste container shall be fabricated of aluminum.

Serra® Robe Hook Single

Product Code SD7340 Composition High Grade Stainless Steel unit. E.&O.E Notes Products and dimensions may vary from images shown. This document is to be used as a reference tool only. Units are not to scale. Serra® hold a number of patents/trademarks these include but are not limited to designs and/or names. © Copyright reserved 2013.

The Difference Is In The Quality

PAGE 28

I. WASHROOM ACCESSORIES Stainless Steel Accessories Serra® Tip Over Ashtray

Serra® Soap Dish - R/C

Product Code

Serra® Soap Dish - R/C

Product Code

SD2070

Product Code

SD2095

Product Information

SD2093

Product Information

Height

32mm

Height

151mm

Height

160mm

Width

108mm

Width

160mm

Width

160mm

Depth

32mm

Depth

48mm

Depth

48mm

Composition Flip-Top Ashtray shall be fabricated in Stainless Steel Satin Finish. Ashtray shall be attached to front of bracket with a Stainless Steel pivot hinge.

Composition

Composition Recessed Mounted Soap Holder with Bar fabricated in Stainless Steel Satin Finish.

RWO (Rough Wall Opening)

Recessed Mounted Soap Holder in Stainless Steel Satin Finish.

RWO (Rough Wall Opening)

Minimum 140W x 140H x 51D mm

Sub Frame Supplied On Request

Minimum 140W x 140H x 51D mm

Sub Frame Supplied On Request

51 m m

140mm

140mm 140mm

140mm E.&O.E

The Difference Is In The Quality

PAGE 29

I. WASHROOM ACCESSORIES Washline and Towel Shelves Serra速 Clothes Line

Serra速 Towel Shelf

Product Code

SD2742

SD2091 Product Information Length

Product Information 1.8m

Composition

Height

600mm

Depth

200mm

Composition

Surface Mounted Retractable Clothes Line shall have cord cover plate, locking nut and knob retainer fabricated Stainless Steel Satin Finish.

Surface Mounted Towel Shelf with Drying Rod shall be fabricated of Stainless Steel. With Bar.

E.&O.E Notes Products and dimensions may vary from images shown. This document is to be used as a reference tool only. Units are not to scale. Serra速 hold a number of patents/trademarks these include but are not limited to designs and/or names. 息 Copyright reserved 2013.

The Difference Is In The Quality

PAGE 30

I. WASHROOM ACCESSORIES Washroom Grab Bars Serra® Bathroom Grab Bar

Product Code

Serra® Bathroom Grab Bar

Product Code

SD2918

Product Code

SD2924

Product Information

Serra® Bathroom Grab Bar

SD2936

Product Information

Length

450mm

Length

600mm

Length

900mm

Depth

200mm

Depth

200mm

Depth

200mm

Composition Security Grab Bar shall be fabricated of Stainless Steel Satin Finish.

The Difference Is In The Quality

PAGE 31

I. WASHROOM ACCESSORIES Toilet Roll Holders and Rail Serra® Twin Toilet Roll

Serra® Twin Toilet Roll

Serra® Bathroom Hanging Rail

Product Code

SD1380

SD0296 Product Information

SD2624

Product Information

Height

122mm

Height

45mm

Height

600mm

Width

320mm

Width

330mm

Width

200mm

59mm

Depth

Depth Height From Ground

± 110mm

Composition Fabricated of Stainless Steel. Rollers shall be chrome plated high impact resistant ABS plastic and shall be spring-loaded.

Height From Ground

120mm ± 110mm

Composition Manufactured from heavy-duty die-cast aluminium, Satin/Brush finish. Spindles made using Cycolac ABS Thermoplastic.

Composition Fabricated of Stainless Steel.

The Difference Is In The Quality

PAGE 32

I. WASHROOM ACCESSORIES Baby Care Accessories Serra® Baby Change Station

Product Code

Serra® Baby Change Station

Product Code

SD9012

SD9013

Product Information

Against confirmed orders only.

Product Information

Height

570mm

Height

650mm

Width

920mm

Width

940mm

100mm

Depth

Depth Height From Ground

± 815mm

Composition The baby-changing inner compartment is constructed from high impact resistant plastic with a gloss finish for an easy cleaning and shaped to cradle a child’s body. Includes a two-part adjustable safety strap. Approximately 130kg load capacity, assures child protection.

80mm

Height From Ground

± 815mm

Composition Flange and cabinet Stainless Steel. All welded construction. All exposed surfaces Satin Finish. RWO (Rough Wall Opening) Minimum 870W x 580H x 95D mm Sub Frame Supplied On Request

580mm

m m 95

870mm E.&O.E

The Difference Is In The Quality

PAGE 33

I. WASHROOM ACCESSORIES Executive Custom Range Serra® Single Robe Hook

Product Code

Serra® Towel Ring

Product Code

Serra® Soap Dish

Product Code

SAD5331

SAD5320

SAD5351

Composition

Surface Mounted Robe Hook Fabricated Stainless Steel Satin Finish.

Serra® Paper Holder With Lid

Product Code

Surface Mounted Towel Ring Fabricated of Stainless Steel Satin Finish.

Serra® Paper Holder

Product Code

Surface Mounted Soap Dish Fabricated of Stainless Steel Satin Finish with Glass Dish..

Serra® Spare Paper Holder

Product Code

SAD5370

SAD5371

SAD5375

Composition

Fabricated of Stainless Steel Satin Finish with Hooded Protection.

Fabricated of Stainless Steel Satin Finish.

Notes Products and dimensions may vary from images shown. Selected products manufactured against confirmed orders only. This document is to be used as a reference tool only. Units are not to scale. Serra® hold a number of patents/trademarks these include but are not limited to designs and/or names. © Copyright reserved 2013.

The Difference Is In The Quality

E.&O.E

I. WASHROOM ACCESSORIES

PAGE 34

Executive Custom Range 24” Glass Shelf

Product Code

Serra® 24” Towel Bar

Product Code

SAD5380

SAD5324

Composition

Surface Mounted Glass Shelf with Fabricated Stainless Steel Satin Finish Edging.

Serra® Double Towel Shelf

Product Code

Surface Mounted Towel Bar Fabricated of Stainless Steel.

Product Code SAD5301 Composition Surface Mounted Towel Bar Fabricated of Stainless Steel.

Serra® Toilet Brush Holder

Product Code

SAD5302

SAD5360

Composition

Surface Mounted Towel Shelf with Drying Rod Fabricated of Stainless Steel Satin Finish with Bar.

Serra® Towel Shelf

Fabricated of Stainless Steel Satin Finish.

The Difference Is In The Quality

E.&O.E

J1. CLEANING OF STAINLESS STEEL

PAGE 35

The corrosion resistance of Stainless Steel stems from an extremely thin but tenacious and self repairing passive film (chromium oxide ) which forms on its surface. This imparts the properties of stain resistance, non-tainting of food, hygiene, cleanability and aesthetic appearance which makes it the ideal choice for many high class articles. Further, Stainless Steel does not chip, flake, craze, crack or break. Stainless Steel will be unaffected by the normal conditions of everyday use. Routine simple gentle cleaning will reward the owner with a product which retains its properties and appearance throughout years of constant daily usage Because of its reputation for durability Stainless Steel is sometimes assumed to be indestructible, and therefore subjected to misuse or even abuse. Care should be taken to avoid such “abnormal” use. Routine Cleaning: Clean the Stainless Steel as often as experience dictates (i.e., when noticeably dull or dirty); and use the simplest cleaning procedure that will effectively “do the job”. Stainless Steel’s best friends are clean water or mild detergent solution, applied with a soft cloth or sponge. Rinse well and dry with a soft cloth. Routine simple, gentle and inexpensive cleaning will retain both the corrosion resistance and appearance of Stainless Steel through the years of exposure and use. DO’S • • •

Employ regular Routine Cleaning rather than an occasional aggressive single cleaning. Only use appropriate brands of cleaners that state “Suitable for Stainless Steel”. Always rinse with clean water and dry as the final step in a cleaning procedure.

DON’TS • • • •

Do not use coarse abrasive powders. Do not use metallic scourers or brushes with metal bristles. Do not use the so termed “silver cleaners”. Do not use acids (except nitric acid in specific instances).

ROUTINE CLEANING - All Grades & Finishes Use clean (hot) water with mild detergent (e.g., dishwashing liquid) solution. Apply with soft cloth or sponge. Rinse well and wipe dry. Routine Cleaning applied repeatedly over several days will often remove heavy soiling and staining which has occurred.

The Difference Is In The Quality

J2. STAINLESS HYGIENE

31%

30% 20%

>18%

10%

2% 0%

Stainless Steel

Aluminium

Glass

Plastic

Staphylococcus Aureus Bacteria remaining on used material after washing at 70 C

(Source SASSDA)

Stainless Steel provides the foremost effective hygiene solution in a wide range of essential health requirements.

40% Using 0.25% detergent after 5 times

Hygiene is of utmost importance in food preparation and all critical health areas. Stainless Steel is synonymous with hygiene due to the extremely thin but tenacious and self-repairing chromium oxide film that forms on its surface. High Grade Stainless Steel products lend their elegance to all your hygiene requirements while ensuring corrosion resistance, durability, aesthetic appeal and ease of cleaning. Experiments on the removal of the bacterium, staphylococcus aureas from new material revealed that only 69% of bacteria was removed from plastic, 82% from aluminium compared to 98% for Stainless Steel.

PAGE 36

Stainless Steel - The winnersâ&#x20AC;&#x2122; choice in exceptional value for money & superior hygiene standards. PRODUCT INSTALLATIONS

The Difference Is In The Quality

ADDENDUM POSSIBLE COMBINATIONS TR Range

PAGE 37 MR Range

SQ Range

Serra® EcoFlex™ Deluxe

Serra®Matic™ Plus 2

Serra® Flat Folded

Serra® Disposor™ Plus™

Serra® Disposor™ Standard

Serra® SlimLine Disposor™

Serra®Fil™

Serra® Spray Soap 400ml

Serra®Nox3™

Serra®Rol™ TR2

Serra®Rol™ TR3

Serra®Rol™ SQ2

Serra®SAN™/TSC F.O.A.M™

Serra® Spray Soap MK2 800ml

Serra®Rol™ SQ3

Serra® EvoFlex™ Compact

Serra® MR™ Flat Folded

Serra® EvoFlex™ Compact

Serra®Nox MR SQ™

Serra®Rol™ MR2

Serra® MR™ SlimLine

Serra® Auto F.O.A.M™ 800ml

Serra®Rol™ MR3

Serra®SAN™/TSC F.O.A.M™

Serra®Air™ Plus 2

Serra®Air™ Plus 2 Gothic

E.&O.E Notes Serra Services (Pty) Ltd reserves the the right to make changes at any time, without notice, in equipment, specifications and/or models, and is not responsible for typographical errors. Serra® hold a number of patents/trademarks these include but are not limited to designs and/or names. © Copyright reserved 2013

The Difference Is In The Quality

AVAILABLE RANGES Serra® Hygiene Solutions

Serra®Mat™ Matting Solutions

SERRA®MAT™ PRODUCT CATALOGUE

Vs 2.2014 - Please Keep For Future Reference

SERRA® PRODUCT CATALOGUE Vs 2.2014 - Please Keep For Future Reference

The Complete Matting Solution.

The Complete Washroom Solution.

The Difference Is In The Quality

The Difference Is In The Quality Graphic Representation

CONTACT US Serra Services (Pty) Ltd Email : info@serra.co.za Tel : +27 (0)11 334-7447 Fax : +27 (0)11 334-7165 or +27 (0)11 334-9858 Web : www.serra.co.za & www.serramat.co.za Postal : PO Box 1217 Southdale, South Africa, 2135 Pysical Address : 10 Serra Park, Prolecon Road, Prolecon, Johannesburg, South Africa Facebook : https://facebook.com/SerraServices Twitter : https://twitter.com/SerraServices

The Difference Is In The Quality