South African Property Review June 2016

South African Property Review

PROPERTY SOUTH AFRICAN

June 2016

REVIEW

Showing off The Mall of Africa

s●

series D L

●

monthly cou n Our

Th e WOR

Property developers

Developing South Africa Cornubia: Tying the urban knot

by-country focu try-

June 2016

Canada The new land of milk and honey

SAPOA events

13,500 PEOPLE

21,250 TENANTS

2,300 BUILDINGS

R150 b illion

IN ASSETS

1 1 million

SQUARE METRES OF LETTABLE AREA

345

RETAIL CENTRES UNDER MANAGEMENT

LEADING THE WAY Driven by excellence and forward thinking, we’re distinguished by our proud track record as Africa’s leading trusted provider of a wide range of integrated property solutions and services.

With our growing African footprint, we are setting the pace for property service excellence in Africa.

OFFICES: GHANA . DEMOCRATIC REPUBLIC OF CONGO .

KENYA . LESOTHO . NAMIBIA . NIGERIA . SOUTH AFRICA .

SWAZILAND . ZAMBIA . ZIMBABWE LEGAL ENTITIES: CAMEROON . COTE D’IVOIRE .

GABON . SENEGAL . TANZANIA . UGANDA

CONTACT US Head office (Johannesburg): +27 (0) 11 911 8000 INFO@EPSGROUP.CO.ZA

|

WWW.EPSGROUP.CO.ZA

T H E F U T UR E OF P R OP ERT Y T HINKING EXCELLERATE FACILITY MANAGEMENT . EXCELLERATE BRAND MANAGEMENT . EXCELLERATE UTILITIES MANAGEMENT .

JHI . JHI RETAIL . JHI ADVISORY . JHI CRES . JHI STRUCTURES . ENFORCE . INTERPARK . SPARK . STERIKLEEN . ERADICO .

50K A T ASOUTH N G A . AFRICAN C H A T T E LPROPERTY S . F R E S HREVIEW . FIRST TECHNICAL . PROFICA

contents

June 2016

PROPERTY SOUTH AFRICAN

Abland

REVIEW

South African Property Review

PROPERTY SOUTH AFRICAN

June 2016

REVIEW

Showing off The Mall of Africa

ON THE COVER The Mall of Africa, South Africa’s newest retail experience worth R4,9-billion, comes to life.

s●

LD

series

Abreal

●

monthly cou n Our

The WOR

Property developers

Developing South Africa Cornubia: Tying the urban knot

by-country focu try-

June 2016

Canada The new land of milk and honey

2

From the CEO

4

From the Editor’s desk

6

Industry news

10

Education, training and development

12

Planning and development South Africa in the next five years

14

Legal update The Mathabathe case and our law

16

Eye on the world Canada

22

Profile The Waterfall development:

Oilgro

setting a new standard of living 26

Developer Cornubia: tying the urban knot

34

On show Leading the pack

66

SAPOA events

68

Events

69

What’s on Upcoming events

70

Frankly speaking Getting on the Attac(q)k

72

Off the wall A quirkier way to escape FOR EDITORIAL ENQUIRIES, email editor@mpdps.com Published by SAPOA, Paddock View, Hunt’s End Office Park, 36 Wierda Road West, Wierda Valley, Sandton PO Box 78544, Sandton 2146 t: +27 (0)11 883 0679 f: +27 (0)11 883 0684

Editor in Chief Neil Gopal Editorial Adviser Jane Padayachee Managing Editor Mark Pettipher Copy Editor Ania Rokita Production Manager Dalene van Niekerk Designers Wade Hunkin, Eugene Jonck Sales Robbie Pansegrauw e: rob@mpdps.com; Riëtte Stevens e: sales@sapoa.org.za Finance Susan du Toit Contributors Anne Schauffer, Lekgolo Mayatula, Maud Nale, Mumtaz Moola Photographer Xavier Saer DISCLAIMER: The publisher and editor of this magazine give no warranties, guarantees or assurances and make no representations regarding any goods or services advertised within this edition. Copyright South African Property Owners’ Association (SAPOA).

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

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

e: llewellyn@rsalitho.co.za

P R O P E R T Y

F U N D

from the CEO

Welcome to the SAPOA 50th Annual Convention & Property Exhibition This year marks SAPOA’s 50th anniversary. CEO Neil Gopal looks forward to the highlights that can be expected at this year’s Convention

R

egarded as South Africa’s premier property conference of the year, the Convention will once again present an exceptional opportunity for both local and international property professionals and practitioners to join in the discussion about the latest trends, challenges and investment opportunities. This year’s Convention will highlight the sheer hard work, raw talent and sterling achievements that take place in the South African real estate industry on a daily basis.

The three-day event will be hosted in Johannesburg, the heartbeat of our country – the city of gold – from 21 to 23 June 2016 at the Sandton Convention Centre.

Putting the REAL into real estate was at the heart of the 2015 Convention, and the lively levels of debate, controversial points of view and important conversations made for an interesting event.

This year, SAPOA has selected a line-up of thought-provoking local and international speakers to share their expertise and knowledge.

2

SOUTH AFRICAN PROPERTY REVIEW

In the face of further global economic uncertainty, the Convention will provide the perfect platform for commercial players to gain knowledge with regards to the role and impact of the commercial property sector, why the regeneration of small towns should be in the interest of cities, and how to deliver successful urban environments through property sector partnerships.

The year 2016 marks a special milestone in the history of SAPOA, as we celebrate our 50-year anniversary. SAPOA was established in 1966 by the leading and large property investment organisations, to bring together all role players in the commercial property industry and to create a powerful platform for property investors. The growth of the organisation is proof that the commercial and industrial property industry in South Africa is a strong one, and that it continues to illustrate the attractiveness of property as well as the development of our country. Our years of existence add a great deal to the credibility, longevity, staying power and success as the voice of the commercial property industry. We will be celebrating and promoting our 50th anniversary by redefining our organisation and thanking our members for decades of patronage.

Once again, Master of Ceremonies Eusebius McKaiser will host the Convention’s proceedings, and the 2016 line-up will delve into the latest trends and development within the property space.

A major highlight of the three-day convention and part of the property focus is the presentation of two much-anticipated awards: the SAPOA Property Journalism Awards for Excellence and the SAPOA Property Development Awards for Innovative Excellence.

The Journalism Awards for Excellence will recognise and honour South African property journalists who have made a noteworthy contribution to the commercial and industrial property industry through quality media coverage of the property industry in broadcasting.

The Property Development Awards for Innovative Excellence will showcase the outstanding contributions from world-class owners, developers and built environment professionals who create smarter, more beautiful buildings every year that significantly enhance the industry.

This year, SAPOA has also introduced the Lifetime Award for Excellence to honour and celebrate the exceptional contributions made by an individual who has changed the face of South Africa and the landscape of the property sector through sustained leadership, major pioneering contribution and outstanding legacy to the South African Property industry and community.

The SAPOA Convention is a gathering place for industry leaders. We trust that the issues raised, discussed and debated – and our wellinformed speakers’ views and opinions – will be of great value to your experience at this event. The three-day Convention promises to be the ultimate networking event for property professionals, offering opportunities to engage with industry leaders.

SAPOA would like to extend a warm note of thanks to all its sponsors, and to the SAPOA Executive Board and staff who make this annual event a major success.

We hope that you enjoy the Convention, and wish all delegates an insightful and delightful event.

Neil Gopal, CEO

SAPOA events

SOUTH AFRICAN PROPERTY REVIEW

51

from the Editor’s desk

Towards half a tonne Change and growth are inevitable – let’s embrace them!

T

he phone rings. It’s the start to a normal busy business day. “Mark, do you have a minute?” You know the tone that says someone has something to tell you but they don’t quite know how to do it? Well, that was how former editor Nthabiseng started the conversation. How bad could it be? April was well to bed, we were heading for the start of the May edition and there were a few days before the mill started up again…

“I’m going back to my old firm,” said Nthabi. “But I’ll help to finish off the May edition, though.” Bombshell dropped.

So here is the big change. After much thought and a discussion with Jane, SAPOA’s marketing manager, it was decided that I, having been Managing Editor of SAPOA publications since May 2013, having guided the editorial process through now three editors (David Steynberg, Candace King and Nthabiseng Nhlapo), should step up to the plate and take on the role of editor.

With both Neil and Jane’s “blessing”, for want of a better word, I embrace the change and face the inevitable. After all, it’s all part of growth. We’ve grown the magazine from just 2 500 readers in May 2013 to more than 10 000. When the first South African Property Review went online, we had 191 impressions with seven reads of 3,28 minutes. Today’s print run reflects SAPOA’s membership – about 2 000 members – giving us more than 7 200 print copy readers, and our online average impression rate is more than 2 800 with a read time of 5,56 minutes. We can safely claim 10 000 readers – likely more, because I keep being asked for back issues, and referring to the online stats I see that the May 2013 edition now stands at 4 913 impressions, with an average read of 4,44 minutes.

Given that the magazine is aimed at a highly targeted niche market (80% of commercial property owners are SAPOA members), Property Review has gone from strength to strength and continues to be both entertaining and informative.

This issue is no different in its aim.

We’re pleased to be able to bring you The Mall of Africa in Gauteng, the continent’s most impressive mall. Worth R4,9-billion, it is owned by Attacq, and was designed

4

SOUTH AFRICAN PROPERTY REVIEW

by MDS Architecture, developed by Atterbury and engineered by Aurecon.

Our quarterly Developer feature is Tongaat Hulett’s Cornubia project, South Africa’s biggest integrated human settlements project of about 12km².

Geographically for Durban, this project “ties the urban knot”.

The Eye on the World looks at the land of the “Mounties”, a new land of milk and honey – Canada, the world’s second largest country behind Russia, and probably the most educated in the world. On a lighter side we’ve found a quirky capsule hotel to look at on the Off the Wall page.

So change is on the horizon – new retail outlets, new mixed-use developments, new commercial property – and SAPOA is heading for its 50th Annual Convention and Property Exhibition at the Sandton Convention Centre (from 21 to 23 June).

Being the new editor, I’ve had a sneak peek at the Convention’s draft programme.

I can honestly say that this year’s Convention promises to be a truly glittering affair, and along with our CEO Neil Gopal, I look forward to seeing you again – and meeting many of you for the first time – at SAPOA’s, highlight of the year.

Going forward into the second half of the year – I can hardly believe that we’re in June already! – July Property Review will be our Convention issue. We will bring out the bumper edition early, so it will be available at Convention. Our President Mike Deighton will hand over the reins to President Elect Nomzamo Radebe, and we look at highlights from the property industry’s past 50 years.

The August issue will carry our Convention Report Back as well as a list of all the recipients of SAPOA’s prestigious awards. It will highlight the many activities that made this year’s 50th anniversary celebrations such as success, Property Review will also celebrate Women’s Month with Women in Property – a fitting first edition with Nomzamo at our helm.

Future issues include themed topics such as international developments, education and research, green and the environment, and commercial property brokering as well as auctioneering.

The month of July sees the highly popular Property Development Programme taking place in Cape Town. Professor François Viruly of UCT once again leads the programme, culminating in a gala awards dinner.

I look forward to working with old and new members, getting to know you with oneon-one interviews, keeping the continuity going and making Property Review an even better “voice of commercial property”.

We’ve also created a new offering – I’m sure you have seen the advertisements in Property Review. PROvocate, SAPOA’s Property Advocate magazine, will initially be a bimonthly publication, giving us time to get behind the legal issues that concern and affect our members. We may touch on these subjects in Property Review but PROvocate will be the magazine that gets the stories in full.

All the best – and see you at the half-tonne celebrations.

Mark Pettipher, Managing Editor

SAPOA events INVITATION TO STEP INTO THE VOORTREKKER ROAD CORRIDOR

ABOUT US: The Greater Tygerberg Partnership (GTP) is a catalytic champion for the Greater Tygerberg Region, working in partnership with the City of Cape Town towards the redevelopment and revitalising of the Voortrekker Road Corridor (VRC).

SERVICE: We take on the role of a development facilitating agent, with various services on offer to investors, business owners, building owners, developers and the community in the area: ● Identification of development opportunities ● Due diligence studies of properties ● Area specific knowledge of the built environment ● High level pre-feasibility studies at attractive rates ● Liaising with City departments to address issues hampering development.

OPPORTUNITIES THE VOORTREKKER ROAD CORRIDOR BOASTS WITH: ● 9 tertiary institutions, 7 hospitals and 100 000 plus students in the area. ● Significant demand for affordable housing ● Urban Development Zone (UDZ) Tax incentive ● Proximity to Transport services. ● Opportunity to be an inclusive “Live, Work and Play” corridor in the City of Cape Town. ● Highest concentration of employment opportunities in Cape Town.

Making progress possible. Together.

CONTACT DETAILS: Tel: (021) 823 6713 Website: www.gtp.org.za Facebook: http://www.facebook.com/thegtp Twitter: @gtp_the SOUTH AFRICAN PROPERTY REVIEW Email: Kirsten Sloth Nielsen – kirstensnielsen@gtp.org.za / Lyle van der Merwe – lyle.vdmerwe@gtp.org.za

51

industry news

Market intelligence marks a new era in retail

T

oday’s retail environment is increasingly characterised by savvy, engaged shoppers and driven by new and evolving technologies.

“When the stakes are high, competition is fierce and change is rapid, market intelligence becomes crucial for success.” So said Nomzamo Radebe, President of the South African Council of Shopping Centres (SACSC) and Chief Executive Officer of JHI, speaking at the sixth annual SACSC research conference in Sandton recently.

Nomzamo Radebe, SACSC President and CEO of JHI

The one-day conference, sponsored by Broll Property Group, offered a robust lineup of new ideas, insights, cutting-edge solutions and best practice for the retail and property industry.

Getting to know the consumer, identifying new trends and harnessing the value of technology are among the top challenges for today’s innovative retailers and shopping centres.

Trends in technology and consumer patterns will shape retail in new and interesting ways well into the future as the lines between physical and digital retail continue to blur. “In all areas of retail, change is the new normal,” says Radebe.

6

As innovation and adaptability become ever more critical and omnichannel retail becomes omnipresent, Radebe believes prospering in the new era of retail requires shopping centres and retailers to know their shoppers better than ever.

“Technology-driven change in the retail environment is compelling us to become more flexible and open to new retail concepts, ways of working, store formats, customer service, rental models, reporting systems and marketing channels. And this is only the beginning,” she says.

About 270 delegates were in attendance this year, making the event bigger than the International Council of Shopping Centres research conference.

“The popularity of the research conference shows the value that modern retail places on keeping pace with new developments and applications in technology, the latest world-class solutions and ever-changing consumer trends,” says Radebe.

SACSC is the official umbrella body of all involved in shopping centres, including owners, developers, managing agents, brokers, professionals, retailers, marketers, service providers, financers and researchers. It was officially launched in 1991 to advance the retail and retail property sectors of South Africa.

SACSC promotes the interests of the sector in South Africa and internationally, while addressing issues and meeting challenges within the industry.

It engages with associated sectors and other stakeholders on behalf of its members, and highlights the role of shopping centres as a major resource for all communities in South Africa.

SOUTH AFRICAN PROPERTY REVIEW

Steyn City ready to roll out Phase 2

F

ollowing the phenomenal success of Steyn City’s first phase, the lifestyle resort has released the first Phase 2 stands this month. Fifty-three new stands are to be made available to the public in this first part of Phase 2 roll-out. The new stands complement the magnificent erven already released in Phase 1 of the lifestyle resort, with half boasting immaculate golf course frontage.

With erf sizes ranging from 1 000m² to 3 000m², and prices pegged between R3,6-million and R12-million, stands are sure to appeal to prospective buyers with different needs, from those seeking to create an outdoorsoriented lifestyle for their family on a secure lifestyle resort with an enormous variety of amenities, to people on the lookout for an investment guaranteed to deliver solid returns.

Indeed, those buyers who recognised the potential of Phase 1 have already been handsomely rewarded, with property values in Steyn City worth 20% to 30% more than at the time of launch in March 2015.

Steyn City Chief Executive Officer Giuseppe Plumari reports there was a significant number of these buyers, with 80% of all stands launched in Phase 1 already sold out. In addition, all apartments in Oasis, Steyn City’s Park Ridge apartment building, have also been snapped up by eager purchasers.

Plumari attributes this massive interest to the resort’s outstanding infrastructure. But while it’s true that amenities such as an award-winning clubhouse, Nicklaus Design golf course, fine dining

restaurant and deli, equestrian centre and skate park, and exceptional tree planting and landscaping put Steyn City in a league of its own, what really makes the difference is the fact that these facilities have already been established. As a result, buyers are able to tour the lifestyle resort and gain a realistic experience of what it would be like to be able to access them while living in the unique parkland, thus getting a glimpse of the soughtafter Steyn City lifestyle.

This is in stark contrast to the situation on most lifestyle estates still under construction, Plumari points out, where infrastructure is yet to be built and buyers have to imagine the final product.

“Being able to walk through our amenities gives our buyers confidence,” he says. “They don’t have to wonder whether what’s been promised in our marketing efforts will be delivered in reality – they’ve already had a taste of the lifestyle.”

Plumari adds that, while these top-class facilities undoubtedly enhance the standard of living at Steyn City, they are ultimately about convenience. “The Steyn City lifestyle has been crafted so that you never have to leave home,” he says. “You’ll be able to access everything you need – from fuel to groceries – on site, in an environment that is pleasing to the eye and soothing to the soul. It’s about a lifestyle based on old-fashioned values of neighbourliness and the joy of family time.”

The roll-out of Phase 2 means that more buyers will be able to experience this idyllic way of life for themselves.

Property Review August Edition

in property

WOMEN

Women lead the way in many industries, and more so in property.

In August, we acknowledge their tireless efforts to develop a career path in an ever-expanding industry. Don’t miss this unique opportunity to highlight the women in your organisation who are making a difference in the property industry. perty in pro

en m o w

SAP

4 t 08’1 lemen Supp

OA

en wom ut NLIB bo STA nate a io pass rty e prop

k blac e iring Insp en in th r wom y secto rt e prop

erty prop t s t the Mee try’s mo men s o u w d in al enti influ

Editorial profile material deadline: 29 June | Display advertising booking deadline: 7 July | Advertising artwork deadline: 11 July Contact Robbie Pansegrauw on +27 (0)21 856 0321 / e-mail rob@mpdps.com or Riëtte Stevens on +27 (0)71 877 5520 / e-mail sales@sapoa.org.za

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

industry news 130 000 litres of water available in drought-affected Thaba Nchu

Purchasing property paperlessly

G

C

lobal humanitarian aid organisation World Vision South Africa has, in partnership with Bloemwater and the Mangaung Metropolitan Municipality, successfully installed 26 Jojo water tanks in Thaba Nchu and surrounds as part of its 150-tank/750 000 litres of water project, funded by the FirstRand Foundation and other stakeholders. The project was headed by World Vision’s Thaba Nchu Area Development Programme (ADP).

The 26 tanks will provide 130 000 litres to community members residing in Thaba Nchu and surrounding villages, and bring critical relief in an area that is still plagued by drought and resultant food shortages.

The tanks will be filled regularly

by Bloemwater, and maintained by the various communities and the municipality.

During the ribbon-cutting ceremony, Bhekimpilo Khanye, integrated ministry director of

World Vision SA, emphasised the importance of partnership and ownership of the water tanks. “These water tanks will cushion our children against the effects of the drought,” he said. “It is imperative that they have access to the tanks and it is filled with water and maintained.”

He added the project would not have been completed on time without the hard work and commitment of the Thaba Nchu ADP and support of Mangaung municipality, Bloemwater and the Barolong council.

“We put a lot of pressure on our ADP and it delivered. These water tanks are not ours; they belong to the community and we hope they can bring muchneeded relief to the everyone,” says Khanye.

The remaining 124 water tanks are currently being rolled out in KwaZulu-Natal (Ixopo and Umzimkhulu) and in Limpopo (Thusalushaka, Kodomela and Giyani).

urrently the only site of its kind in South Africa, Quoin Online offers a paperless service to suit our modern times. All paperwork and due diligence documents are accessed through the site (www.quoinonline.co.za) instead of manually emailing heaps of documents.

“It’s the Amazon of property sales,” says co-founder of Quoin Online Wayne van der Vent.

“We realised when we started this that there had to be a better way of dealing with paperwork. If you think about how many documents are needed/produced in property transactions, there are many trees lost just in traditional property sales!”

Potential buyers are able to submit final or competitive offers online; they are sent to the seller for review. The competitive-offer system has been known to achieve high

above asking price, up to 150% higher in a few incidences.

The firm also meets all legal requirements, as with traditional real estate transactions.

The team members come from an investment background, giving them an in-depth understanding of what a buyer needs to be able to make an unconditional offer. Moving to a smart technology platform allows Quoin to offer more than is available traditionally.

“We reach a wider audience through this platform, constantly implementing the latest technology and updating our software in-house,” says Karen Miller, Director and Principal of Quoin Online. “Technology is where the property market is moving towards in terms of sales and rentals. You may be reluctant, or need to be dragged kicking and screaming in that direction – but if you don’t you’ll be left behind.”

Continuing Professional Development Programme Faculty of Engineering & the Built Environment

Continuing Professional Development courses

Commercial Property Valuation

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

Dates: 31 August - 2 September 2016 Cost: R7800

Accounts Method of Property Valuation

Valuation for Land Reform and Expropriation

Dates: 23 – 24 June 2016 Cost: R5200

16 – 18 November 2016 Cost: R7800

Dates:

For further information and registration forms, please visit the website: www.cpd.uct.ac.za/cpd/cpdcourses/2016 or email: ebe-cpd@uct.ac.za 127324 SAPR

8

SOUTH AFRICAN PROPERTY REVIEW

industry news

Thank you to our sponsors

Platinum Sponsor

Gladafrica HoldinGs (PTY) limiTed Corporate Identity Guidelines

Gold Sponsor

Silver Sponsor

Notebooks & Pens

Journalism Awards

Silver Sponsor

Golf Halfway House

Silver Sponsor

Mini Programme

Silver Sponsor

Internet CafĂŠ

Supporting Sponsors SOUTH AFRICAN PROPERTY REVIEW

9

education, training and development

Wits University now has the strongest academic team

in real estate within South Africa, consisting of a mix of resident and visiting faculty members SAPOA speaks to the programme convenor at the Wits School of Construction Economics & Management about the signiďŹ cance of this partnership with SAPOA of practitioners who cannot take time off for full-time study. We are now extending this to our honours-level degrees to allow those who were unable to undertake full-time study the chance to return to complete their honours qualifications. We have initially piloted this in Quantity Surveying and will most likely expand it in 2017 to our Honours in Construction Management degree.

Professor Samuel Azasu

P

rofessor Samuel Azasu is currently an associate professor and coordinator of both postgraduate and executive real estate courses. He has a PhD in real estate management. His research interests cover corporate real estate management, reward management for real estate firms, real estate education and real estate market analysis.

What is the main role of the School of Construction Economics & Management?

Like all schools at Wits, we see ourselves as a centre for teaching and research. Because of the vocational nature of our programmes, we play a key role in supplying future professionals to the property and construction sectors, and providing a source of ongoing professional development to practitioners through our short courses and postgraduate programmes.

How does the school cater for students who may not have the time or resources to undertake full-time studies or degrees?

At undergraduate level, we are a full-time contact university, but at postgraduate level we recognise that our programmes need to be primarily part-time to meet the needs

10

SOUTH AFRICAN PROPERTY REVIEW

In terms of the work that the school has done thus far, do you believe the goals of the department are being met?

If the goals of the department are to be a key agent in the transformation of the industry sectors, in its widest sense of challenging and equipping our students with high-level skills to change the way these sectors operate, then we believe we are on the way to making a significant impact.

SAPOA has played an important role in advancing the transformation agenda of the property sector in many ways, including in the area of skills provision In relation to the property sector in particular, we are expanding our enrolment and graduation rates in property studies.

Graduations for the new cohorts of students so far have been at the postgraduate level, but a new cohort of undergraduates will complete at the end of 2016.

The good news is that, at least at postgraduate level, our students acquire sufficient skills by the end of the first semester of the first year to be employable. In that respect, we are positioning ourselves to make an impact in closing the skills gap in the

property sector in a way that is transformative because our student profile deeply reflects the country’s demographic situation.

What does the partnership with SAPOA signify?

SAPOA has played an important role in advancing the transformation agenda of the property sector in many ways, including in the area of skills provision. The sector and the market have also become a lot more sophisticated in the last 20 years in terms of the asset base and the level of service provision. This progress, however, sits side by side with the fact that outside of the valuers and facilities managers, there are no professional designations in the profession, there do not appear to be practice standards and access to higher education is still beyond the reach of many people. There is therefore an urgent need to professionalise the rest of the industry and more clearly articulate emergent and established career paths within the property industry.

Our partnership with SAPOA is a step in this direction because, outside of formal programmes, we are looking to make sure executive education is comprehensive and deep enough to ensure proper skills transfer.

SAPOA is also considering the development of professional designations in property management, asset management, investment analysis and market analysis, among others.

Our new suite of executive courses was designed with this in mind.

We also want to make sure people who do not have time for full-time university work have access to a global academic team that will provide cutting-edge knowledge to solve tomorrow’s problems. We are also using these courses as a bridge to enable people with national diplomas to access postgraduate qualifications. SAPOA will be the conduit through which we disseminate our research and create thought leadership for the industry.

education, training and development

The blueprint for real estate education SAPOA Partners with Wits for all real estate courses

T

he educational efforts of SAPOA are aimed at: ● Increasing knowledge and skills of the property industry among employees within the industry; ● Ensuring that the content of programmes/workshops and other educational interventions is aligned to industry needs; and ● Raising employability and/or competence of the practitioners and professional in the industry.

We received requests form our members to review and revise our course content and modules.

SAPOA decided to have the University of the Witwatersrand (Wits) as a strategic partner in an effort to provide the industry with a one-stop-shop service for all real estate courses.

Wits is a worldclass research university in Africa, and is known for its commitment to academic and research excellence.

It contributes to the global knowledge economy and local transformation through the generation of high-level scarce skills and innovative research

Why Wits?

Wits is a world-class research university in Africa, and is known for its commitment to academic and research excellence. It contributes to the global knowledge economy and local transformation through the generation of high-level scarce skills and innovative research. At the forefront of a changing society, Wits is an engaged institution, dedicated to advancing the public good.

It promotes intellectual communities and attracts talented students, distinguished academics and thinkers from around the world.

Accreditation All SAPOA education courses are held nationally in collaboration with Wits. The university obtains accreditation for its qualifications through the Higher Education Quality Committee of the Council for Higher Education, recognised by the South African Qualifications Authority as the education and training quality assurance body.

This means that companies can claim money from their skills levy when their employees attend short courses presented

by SAPOA through the university, if these courses are incorporated into their companies’ skills plans, which they submit to the SETAs. The training programmes are all accompanied by an assessment that promotes understanding and application of the information provided.

The SAPOA/Wits Real Estate Programme is the only programme

in South Africa that has been benchmarked by independent international academics (who are experts in their field) and judged as comparable to similar programmes in Europe and North America.

This enables us to offer a world-class education featuring internationally trained staff as well as some of the leading experts in the local market.

Courses being offered by the Wits School of Construction Economics & Management include ● Introduction to Real Estate ● Real Estate Market Analysis ● Real Estate Investment Analysis ● Commercial Real Estate Valuation ● Property Management ● Real Estate Corporate Finance ● Real Estate Finance ● Strategic Corporate Real Estate Management ● Management and Leadership for the Built Environment ● Facilities Management ● Building Services ● Occupational Health & Safety in Facilities Management ● Property Management for Property Developers ● Law for Property Development and Management ● Advanced Facilities Management ● Management Development in Commercial Property ● Senior Managers Development in Commercial Property

The university obtains accreditation for its qualifications through the Higher Education Quality Committee of the Council for Higher Education, recognised by the South African Qualifications Authority as the education and training quality assurance body

For more information on these courses, visit Sapoa.org.za.

Contact: Mafonti Morobi Training Coordinator t: +27 (0)11 883 0679 f: +27 (0)11 883 0684 e: hr-education@sapoa.org.za

SOUTH AFRICAN PROPERTY REVIEW

11

planning and development

South Africa in the next five years H Lekgolo Mayatula is SAPOA’s Planning and Development Manager

In essence, every single citizen has the opportunity to table their concerns with their municipality, and these matters must be addressed and monitored through the IDP process.

In most cases, the IDP is linked to a municipality’s turnaround strategy (MTS), which aims to address some concerns raised by national government on the performance of the municipality 12

ave you ever wondered how municipalities go about making plans to service their citizens? We could probably take a much broader perspective on this question and ask, what are the puzzle pieces that government uses to develop and grow the country’s economy?

The answer to this would be via the implementation of their various strategic and sectoral plans, which are guided by legislative frameworks and policies. The single inclusive strategic municipal plan that facilitates development is the Integrated Development Framework (IDP), which is drafted in alignment with the local government elections (which take place every five years). The approach taken by municipalities is that in the first year of office, the new council is required to follow through on IDP projects that were adopted by the previous council and only in their second year of office can the new members assess, interrogate and adopt new projects in alignment with the approved five-year plan.

The aim is to ensure that all those who are appointed to serve the citizens of the country are held accountable – and this is done through the annual review of the IDP. So in essence, every single citizen has the opportunity to table their concerns with their municipality, and these matters must be addressed and monitored through the IDP process. In most cases, the IDP is linked to a municipality’s turnaround strategy (MTS), which aims to address some concerns raised by national

SOUTH AFRICAN PROPERTY REVIEW

government on the performance of the municipality. With the local municipal elections taking place in this year, municipalities have been gearing up to get their 2016-2021 IDPs ready for implementation on 1 July 2016; all the items that have been approved need to be implemented by 30 June 2021.

The city of Johannesburg held its final public participation engagement on 30 April. The city of Ekurhuleni submitted its final IDP report to council for approval consideration in April. The city of Polokwane started it public consultation process April. So it is evident that municipalities are at the final stages of the IDP process, and should you require further information on the strategic priorities of each municipality, this information is accessible on their websites.

Have you ever wondered how municipalities go about making plans to service their citizens?

It is important that the municipality and the citizens work in collaboration to ensure that our country continues to provide great investment opportunities that facilitate economic growth and stability.

The municipalities are faced with similar challenges – such as youth unemployment, income inequality, weakening global economy, lack of food security, increased population (especially in the main

metropolitan municipalities), lack of delivery of sustainable human settlements, lack of support for entrepreneurship development, climate change, lack of security of natural resources, the increase in food and transportation costs, low levels of education and skills (especially in the rural areas), lack of healthcare, lack of care for the elderly, children and the disabled, etc. The only way in which these issues can be addressed is through active participation in the existing processes, in which the IDP plays a major role.

The IDP is a live municipal strategic plan that is reviewed on an annual basis. This means that active citizenry, stakeholder and industry participation are key. In addition to this, it is important to note that from a planning and development perspective the IDP is closely linked to the Spatial Development Framework. In essence, it can be said that through robust participation and commitment the property industry has the opportunity to steer the spatial transformation agenda in collaboration with the municipalities.

The Municipal Systems Act No. 32 of 2000 provides a clear directive on the IDP processes that need to be adhered to, but it has become imperative for municipalities to assess their public participation processes as the current process does not afford sufficient time for productive engagement with the various stakeholders.

This is illustrated by the fact that, in most cases, municipalities only start the IDP public participation

planning and development process in March/April when the plan needs to be approved by no later than the end of May. It is understood that municipalities have a wide constituency to serve, and

The IDP is a live municipal strategic plan that is reviewed on an annual basis.

This means that active citizenry, stakeholder and industry participation are key.

In addition to this, it is important to note that from a planning and development perspective the IDP is linked to the Spatial Development Framework.

In essence, it can be said that through robust participation and commitment the property industry has the opportunity to steer the spatial transformation agenda in collaboration with the municipalities that in a democratic process there needs to appropriate and transparent systems in place; however, this should not limit the exploration of alternative ways of engagement. One of the positive developments of this era is the advancement

of technology, cellphones/ smartphones and fantastic apps that could be used to investigate alternative methods of communication and public engagement.

There is always a potential risk when stepping into the unknown, especially when it comes to information management and the legalities associated with this. The flipside to the coin is that until such time as all the citizens are able to tangibly contribute towards the improvement and success of the country, all spheres of government will continue to bear the burden of being the sole source of service delivery.

This is by no means the answer, especially given the current economic climate and the debilitating effects this bears on the human drive and ambition to succeed.

It is important to note that the IDP is linked to the municipal budget over that same period. Added to this, the municipality’s core income is derived from property rates.

According to the State of City Finances Report 2015 compiled by the South African Cities Network, the big five cities (Johannesburg, Cape Town, eThekwini, Tshwane and Ekurhuleni) dominated the property revenue collection and accounted for 89% of the total rates revenue collected from the nine cities in 2014.

According to the city of Johannesburg, their total 2016/17 budget is estimated at R54,4-billion, of which R9,4-billion is allocated for capital expenditure and R45,1-billion is allocated for operating expenditure. The high operational expenditure is not only limited to the city of Johannesburg, as this is apparent across all spheres of government. The 2016 national budget as prescribed by the Finance Minister Pravin

Gordhan intends to manage the size of the government workforce (which is the major source of expenditure), reduce the expenditure ceiling and increase tax revenue.

The impact of a reduced workforce and an increase in tax revenue has dire consequences to the property industry. For instance, as it currently stands, most municipalities do not have sufficient human resources to deal with town planning applications. A delay in processing town planning applications negatively impacts development and job creation, and reduces possible revenue for the municipality. The need for a different engagement approach during the IDP and budget planning process must produce results that creatively address a variety of challenges through limited resources. The establishment of regional and sub-regional citizen-based development partnerships has been proposed by SAPOA to the city of Johannesburg as part of its submission to the draft IDP 2016/21 process.

It is important for government to create a business-enabling environment, and this can be done through the coordination and crosslinkage of IDPs across various municipalities. The process would be challenging, given the various dynamics that each municipality faces; however, if successfully implemented, it would certainly attract and retain investment on a much broader scale and not only be limited to one municipal area. The impacts of the IDP are phenomenal; this is evident through the review reports that are submitted to council on an annual basis.

But there is still room for improvement – and this is where government and the various stakeholders need to make a conscious commitment and effort to participate in the IDP process.

There is always a potential risk when stepping into the unknown, especially when it comes to information management and the legalities associated with this. The ipside to the coin is that until such time as all the citizens are able to tangibly contribute towards the improvement and success of the country, all spheres of government will continue to bear the burden of being the sole source of service delivery. This is by no means the answer, especially given the current economic climate and the debilitating effects this bears on the human drive and ambition to succeed

SOUTH AFRICAN PROPERTY REVIEW

13

legal update

The Mathabathe case and our law: municipalities claiming rates and taxes and other charges from successors in title to properties

By Mumtaz Moola

In the Mathabathe case, Mathabathe purchased a property at an auction and, as required, the conveyancer applied for a rates clearance certificate from the municipality

This legal opinion is only a guide and should not be copied with the expectation that it will serve each party’s individual circumstances.

Most of these recommendations have not been tested in our courts. SAPOA cannot guarantee any success in any court if any of these recommendations are put to use.

14

T

he case that has created the trend of municipalities claiming rates and taxes from owners who were not the owners of the property when the liability for rates and taxes was incurred, is City of Tshwane Metropolitan Municipality v Thomas Mathabathe, a decision in the Supreme Court of Appeal under Case No. 502112 (“the Mathabathe case”).

In the Mathabathe case, Mathabathe purchased a property at an auction and, as required, the conveyancer applied for a rates clearance certificate from the municipality.

The amount payable was excessive, and when queried, it transpired that the municipality was claiming debts that occurred beyond the two-year period.

Mathabathe sought an order from the High Court directing the municipality to limit the amount required for the clearance certificate, to only the rates and taxes for the preceding two years. The order was granted by the High Court but was appealed by the municipality to the Supreme Court of Appeal (“the SCA”).

In the appeal, the SCA said the following: “Municipalities are obliged to collect monies that become payable to them for property rates and taxes and for the provision of municipal services (Section 96). They are assisted to fulfil that obligation in two ways: first, they are given security for payment of the debt, in that it is a charge upon the property concerned (Section 118(3)); and second, they are given capacity to block

SOUTH AFRICAN PROPERTY REVIEW

transfer of ownership of the property until debts have been paid in certain circumstances (Section 118(1)). The principal elements of Section 118 are accordingly a veto or embargo provision with a time limit (Section 118) and a security provision without a time limit (Section118(3))… The two subsections thus provide the municipality with two different remedies. Although the purpose of both is to ensure payment of the municipal claims that fall within the stipulated categories, the mechanisms employed to achieve that purpose are different… Section 118(3) is on its own wording an independent, self-contained provision. The security provided by that section amounts to a lien having the effect of a tacit statutory hypothec … and no limit is placed in its duration outside of insolvency… Its effect is to create in favour of a municipality a security for the payment of the prescribed municipal debts so that a municipality enjoys preference over a registered mortgage bond on the proceeds of the property… Sub-section 3, according to Brand JA… “does not refer to a category or class of debts but to the aggregate of different debts secured by a single charge or hypothec”. For the purposes of Section 118(3), it therefore does not matter when the component parts of the secured debt became due.

The amounts of all debts arising from the stipulated causes are added up to become one composite amount secured

by a single hypothec which ranks above all mortgage bonds over the property.

Unlike Sub-section (1), Sub-section (3) is not an embargo provision – it is self-evidently a security provision.”

While the appeal was dismissed, the principles of Section 118(1) and 118(3) were clearly set out. The municipality accordingly could not require payment of amounts beyond the two-year period set out in Section 118(1) for the purposes of obtaining a clearance certificate under that section. The court further said, “The Municipality failed to draw on the distinction that Sub-section 3 is not an embargo provision but a security provision … the municipality was plainly wrong in its contention that upon registration (of transfer) … (it) loses its right under Section 118(3) of the Act.” The municipality has security for the historical debt.

That is where the judgment ended. The judgment was not extended to suggest that the municipality in holding its “charge”, which has been interpreted to be a lien, may be enforced against a successor in title to the property, who was not the debtor and liable for the charges against the property at the time they were incurred.

Attorney Andrew Bembridge of Edward Nathan Sonnenberg (ENS) states it would appear that municipalities have interpreted the judgment to be that their security for the historical debt being a charge

legal update

(lien), which creates preference over any mortgage bond registered against the property, also creates a debt by successors in title to a property. He states that the nature of the statutory charge created under Section 118(3) is simply to create a preference ahead of any mortgage bond. Section 118(3), in creating the preference, does not expressly allow a municipality to recover those amounts from a person who is not the debtor.

In the case of Makonthwana v Nelson Mandela Metropolitan Municipality SECLD Case No. 903102 heard in the Constitutional Court, the constitutionality of Section 118(1) in relation to the obligation of the land owners to pay consumption charges not incurred by the owner was considered.

The Makonthwana judgment decided in particular what “in connection with the property’’ means. The High Court had held that Section 118(1) was unconstitutional since it was an infringement on a land owner’s rights to their property because there are other methods of debt collection available to the municipality therefore making the infringement unjustifiable. However, the Constitutional Court did not agree and held that Section 118(1) was constitutional.

It held that “there is a level at which the owner and the debt are usually connected or related regardless of the nature of the relationship between the owner and the occupier, and of whether the property is lawfully occupied. This is because the owner is bound to the property by reason of the fact that ownership entails certain rights and responsibilities. Both the owner and the consumption charge are closely related to the property, and the property

is always the link between the owner on the one hand, and the consumption charge in respect of water and electricity provided by the municipality on the other hand.”

Bembridge further states that from this it is clear there must be a link between the property and the owner to justify liability for a consumption charge.

In other words, in order to justify the consumption charge, the person being charged should be the owner at the time the consumption charge was incurred. If the person is the not the owner of the property then the link between the owner and the consumption charge is missing.

So in the case where a successor in title is held liable for previous consumption charges for the property, there is arguably no link between that owner and the consumption charge.

The Constitutional Court in the Makonthwana case further found that Section 118(1) indeed resulted in a deprivation of property since it deprived the owner of the right to dispose of the property.

However, the deprivation was only temporary because of the two-year period imposed. The court further acknowledged that the purpose of Section 118(1) is to “encourage regular payments of consumption charges and thereby to contribute the effective discharge by municipalities of their constitutionally mandated functions”. At the same time it acknowledged that Section 118(1) does not affect the right of ownership, being the right to freely alienate the property. However, it only lasts for two years, thus creating a proportionality between the purpose and the end result.

On that basis Section 118(1) was not unconstitutional.

In section 118(3), which the SCA in the Mathabathe

case pointed out, is “unbridled by time”, there is no principle of proportionality between the means and ends and this would leave the interpretation given by the municipalities to recover debts of an owner who did not incur the debts without limitation, or at all, vulnerable to constitutional scrutiny.

On the principle of there having to be a link between the owner and the debt, Section 118(3) cannot have the effect of creating a debt against successors in title to the property who did not incur the debt. It simply creates a security.

Further, Section 118(3) without a time limit, may be a violation of Section 9(3) of the Constitution which requires all to be equal before the law. A successor in title to land cannot be equal before the law under these circumstances.

The court interpreted the word “charge” in the Mathabathe case to mean lien. A lien according to our common law, is a right tacitly conferred by law on a person who is in possession of property of another person, on which he has expended money or money’s worth, of retaining possession of the property until he has been duly compensated.

A lien is merely a security and does in itself confer a right of action to claim compensation but confers a defence in favour of the possessor of the property to any action by the owner to recover his property. If the estate of the owner is sequestrated the possessor (holder of the lien) is entitled to a preference on the proceeds of a property for the amount due to him.

To reiterate, a lien merely creates a security but does not confer right of action to claim compensation from the owner of the property.

The security of a lien sits outside of the debtor and creditor relationship.

It simply creates a security in favour of the possessor of the property. In the absence of a link and proportionality as set out in the Makonthwana case, it does not create a debt due by a successor in title to a property. At best that security is enforceable against other creditors even in the case of successors in title. The security cannot create a new debt due by a successive owner.

Conclusion Section 118(3) simply creates a preference in favour of a municipality over any mortgage bond registered against the property. In the absence of a link and proportionality as set out in the Makonthwana case, it does not create a debt due by a successor in title to a property.

At best that security is enforceable against other creditors even in the case of successors in title.

The security cannot create a new debt due by a successive owner.

The practical consequences of the interpretation by the municipalities are that: ● Property owners may never have peace of mind when taking transfer of a property, that all rates and taxes have been paid to date, or if they have not, that they are immune from the municipality proceeding against them for debts incurred by a previous owner; and ● Lenders who are securing debts by way of mortgage bonds will also not have the security of all rates and taxes have been fully paid, or if not paid, that the municipality will not proceed against the current owner of the property for debts incurred by a previous owner.

We would like to thank Andrew Bembridge of ENS for his legal opinion on this matter.

SOUTH AFRICAN PROPERTY REVIEW

15

erie

s●

monthly cou n Our

Th e WOR

eye onLD thes worlds ●

by-country focu try-

Canada:

The new land of milk and honey?

The world’s second-largest country – Canada – ranks third in the world in proved oil reserves (behind Saudi Arabia and Venezuela) and is the world’s fifth-largest oil producer. We look at how the Canadian real estate market fares Compiled by Mark Pettipher

16

SOUTH AFRICAN PROPERTY REVIEW

eye on the world

The flag of Canada, unofficially referred to as the Maple Leaf and l’Unifolié (French for “the one-leafed”), is a national flag consisting of a red field with a white square at its centre, in the middle of which is featured a stylised, red, 11-pointed maple leaf. It is the first-ever specified by law for use as the country’s national flag.

In 1964, Prime Minister Lester B Pearson formed a committee to resolve the issue, sparking a serious debate about a flag change to replace the Union Flag. Out of three choices, the maple leaf design by George Stanley, based on the flag of the Royal Military College of Canada, was selected. The flag made its first official appearance on 15 February 1965; the date is now celebrated annually as National Flag of Canada Day.

Key facts ▼ Name Canada ▼ Etymology The country name derives from the St Lawrence Iroquoian word “kanata”, meaning “village” or “settlement”. ▼ Anthem O Canada, adopted in 1980. Originally written in 1880, O Canada served as an unofficial anthem for many years before its official adoption.

The anthem has French and English versions whose lyrics differ. Because Canada is a Commonwealth realm, God Save The Queen serves as the royal anthem in addition to the national anthem. ▼ Capital Ottawa ▼ Major urban areas (population) Toronto 5,99-million; Montreal 3,98 million; Vancouver 2,49-million; Calgary 1,34-million;

Ottawa 1,33-million; Edmonton 1,27-million (2015) ▼ Area Total: 9 984 670km² Land: 9 093 507km² Water: 891 163km² ▼ Country comparison to the world 2 ▼ Population 35 099 836 (July 2015, est.) ▼ Languages English (official) 58,7%; French (official) 22%; Punjabi 1,4%; Italian 1,3%; Spanish 1,3%; German 1,3%; Cantonese 1,2%; Tagalog 1,2%; Arabic 1,1%; other 10,5% ▼ Median age 41,8 years ▼ Unemployment (youth, ages 15 to 24) 6,9% ▼ GDP/PPP US$1,87-trillion; per capita US$52 287 Banff National Park (Photograph © Brendan Bell/Flickr.com)

SOUTH AFRICAN PROPERTY REVIEW

17

eye on the world All provinces and territories provide preprimary education for five-year-olds. School is compulsory until age 16 or 18, depending on the province or territory.

Educational responsibility

ABOVE Notre-Dame Basilica of Montreal (Photograph © GPS/Flickr.com) BELOW The Vancouver skyline (Photograph © Bruce Irschick/Flickr.com)

C

anada is a nation that boasts beautiful countryside, interspersed by modern cities. It’s a popular location with people looking to bask in natural beauty while enjoying all the modern conveniences found in the Western world.

Canada is also frequently ranked numberone in the United Nations’ annual Human Development Index, which considers factors such as job opportunities, quality of schooling, life expectancy and cost of living. It has one of the strongest economies in the world and is a member of the G8, the world’s most prosperous nations.

While Canada covers a vast area, the majority of people live in cities that are positioned within 200km of the US border, leaving the larger part of the country less inhabited. Northern and Western Canada are popular with naturelovers from across the world; these areas

18

SOUTH AFRICAN PROPERTY REVIEW

are also home to the world’s last Inuit (Eskimo) communities.

In March this year, Statistics Canada said the country’s estimated population topped 36-million for the first time. The agency estimated Canada’s population at 36 048 500 on 1 January 2016, up 62 800 from 1 October 2015. International migration was the main driver of the population growth.

Education In terms of education, Canada is often compared with other countries that have joined the Organisation for Economic Cooperation and Development (OECD), first ratified in December 1960.

Canada is a bilingual country, and its constitution recognises French and English as its two official languages. Public education is provided free to all Canadians who meet the age and residence requirements.

There’s no federal department of education and no integrated national system of education. In the 13 jurisdictions (10 provinces and three territories) departments/ministries of education are responsible for the organisation, delivery and assessment of education at elementary and secondary level for technical and vocational education, and for post-secondary education.

Some jurisdictions have separate departments or ministries, one taking the responsibility for elementary/secondary education, and another for post-secondary education and skills training.

Regional education differences While there are many similarities in provincial and territorial education systems across Canada, there are significant differences in curriculum, assessment and accountability policies among the jurisdictions that express the geography, history, language, culture and corresponding specialised needs of the populations served. The comprehensive, diversified and widely accessible nature of the education system in Canada reflects the societal belief in the importance of education.

According to Statistics Canada data, there are approximately 15 500 schools in Canada: ●● 10 100 elementary ●● 3 400 secondary ●● 2 000 mixed elementary and secondary.

The overall average is 350 students per school.

eye on the world The economy Capital Economics’ David Madani, the group’s Canada economist, is on record as predicting a growth of just 0,7% this year and 1,2% in 2017.

“With business investment expected to fall more sharply this year, we expect the economy to struggle in 2016, buffered by only a moderate improvement in non-energy exports,” he says. Other economists have cited the ever-mounting property values in Vancouver and Toronto, and the swollen debt levels that accompany them, although they aren’t calling for a meltdown.

Madani has long believed that the Canadian housing markets are headed for trouble. “Housing corrections are under way in regions hit by the oil-price shock, and we still fear that Vancouver and Toronto are at an even greater risk of a correction than a year ago,” he says.

Economic performance

Commercial property “The segmentation that occurred in Canada’s commercial real estate market during 2015 has grown more pronounced,” says Paul Morassutti, Executive Managing Director for CBRE Limited (Canada). “More than ever, new technologies are poised to deliver on the promise to alter the way we shop, ship, work and play. This factor, combined with unprecedented capital propelling commercial real estate purchases and new construction, is creating a dynamic environment that will produce winners and losers in 2016.”

Real estate is known for a fixation on location, but far-reaching global trends

Source: Invest Canada

will overtake local details as the basis for many real estate decisions next year.

Energy prices, monetary policy and business strategies built around new technology will impact everything from the number of new office towers that are built to the way goods are moved from manufacturers to consumers and the amount of property that is purchased by foreign investors.

“No building is future-proof, no business model is infallible, no lease term is indefinite,” says Morassutti. “But the fact remains that Canadian commercial real estate fundamentals are some of the healthiest in the world.”

He also reasons that there were several common perceptions about the CRE market in Canada that do not accurately reflect the reality of its underlying fundamentals in 2016.

SOUTH AFRICAN PROPERTY REVIEW

19

eye on the world Canadian REITs are in trouble A declining buying force over the past three years constrained by a high cost of capital, the S&P/TSX Capped REIT index closed five percent down in 2015. Yet Morassutti says the REIT index outperformed the wider TSX index and, being mindful of averages, 33 out of 54 Canadian REITs posted positive returns in 2015 with relatively few overall having substantial exposure to the Albertan office market.

“REITs are definitely operating in a challenging environment, but reasons for the sector to go even lower are becoming harder to find,” he says. “The sector yields six percent, spreads over 10-year GoC Bonds are attractive and energy vulnerability appears to have been fully priced in. Many REITs have clearly been oversold.”

The office market is over-supplied Against a backdrop of 1,55-million square metres of new office buildings under construction, the national vacancy rate is the highest in a decade and has increased in virtually every major market over the year. Of this new construction, more than 60% is to be delivered in Toronto and Calgary collectively.

However, drilling down beyond the national vacancy rate again reveals great disparities.

Morassutti remarks that suburban office vacancies were drastically higher than downtown vacancies, which have skewed the national average. Focusing on the markets with

Talented workforce

the most additional supply, he says, “At 18,2%, Calgary vacancy rate is still rising but Toronto’s overall level of vacancy is quite stable at 9,6%.

The vacancy rate in downtown Toronto’s greater core is 3,3% and the vacancy rate in the South Core is only two percent. Vacancies in most non-Alberta markets are manageable.”

Alberta is a distressed market Prolonged low oil prices and nearly 20 000 job losses in the province in 2015 have caused significant pain within Alberta’s office market.

However, there is yet to be any distressed selling in Alberta, and Morassutti says that more than half of Calgary’s office properties are

“owned by long-term, institutional owners who have the scale to weather a few years of pain in a small portion of their overall portfolio, especially when they are booking gains in other parts of the country.”

Foreign investors see Canada as a “one trick pony” A large withdrawal of foreign capital from Canadian equity markets seems to affirm the perception that, as a result of prolonged low commodity prices, international investors are negative about the country’s future economic outlook. “The reality is four out of the last five major downtown office sales in Canada have

Highlights of the Canadian commercial property market

Investment ● A low Canadian dollar and relatively strong property fundamentals should produce healthy demand for Canadian commercial real estate in 2016. ● Investors will become more selective and super-prime assets could conceivably attract higher pricing and lower cap rates, while reducing liquidity for everything else. ● The disconnect between REIT pricing and the value of REIT assets could encourage markets to focus on the location and performance of REIT holdings in 2016.

● The low cap rate environment will put even greater emphasis on development as a means of enhancing return targets. ● Low oil prices would likely have to be sustained into 2017 for lease renewals and lender pressure to force the hand of some second tier asset owners in Alberta.

Office ● Vacancy rates are climbing following a prolonged landlords' market and are likely to remain elevated as new supply comes online through 2017. ● With banks restructuring some operations and office users generally moving to new efficient workplace strategies, there is the potential for absorption to remain below historic norms. ● A growing tech sector accounted for a record 38% of significant office leasing transactions nationally in Q2 2015, which will keep downtown markets more active than the suburbs. ● The pace of technological change is putting increased pressure on landlords to ensure that their properties are adaptable and remain competitive.

Industrial ● The industrial market will outperform from a leasing and investment perspective in 2016, as a responsive development pipeline maintains a healthy balance between supply and demand. ● Distribution and logistics activities will remain the primary driver of leasing and investment activity. Retailers will attempt to differentiate themselves with supply chain enhancements.

20

SOUTH AFRICAN PROPERTY REVIEW

eye on the world

● E-commerce is driving demand for 4 600m² buildings in close proximity of major population centres. This could reinvigorate obsolete industrial properties in the inner suburbs. ● Favourable foreign exchange rates had a negligible impact on industrial property demand to date. Other manufacturing powerhouses are strong competitors on a number of fronts.

Retail ● The Canadian retail market will recalibrate following the demise of Target and challenges for mid-market retailers.

Foreign retailers will view Canada as a worthy destination but will be selective. ● High-end retailers, traditionally located on high streets, will gravitate towards the increased luxury of super-regional shopping centres such as Yorkdale Mall in Toronto and CF Pacific Centre in Vancouver. ● Retail leasing will be polarised in 2016.

Retailers will fixate on urban locations and high-end malls; lingering vacancy can be expected in second- and third-tier malls. ● As online sales grow, the number of distribution points at which consumers can receive and return goods that were purchased online will increase. ● Brands will attempt to deliver an overall lifestyle to the Millennial shopper. Online and in person, retailers will appeal to the consumers' mind, body and soul.

Apartment ● Strong pricing and deferred maintenance are causing owners to strategically reexamine their portfolios. Demand for multifamily product will remain healthy and fundamentals will be stable in 2016.

Mining sector

● Cap rates for class A high-rise apartments continue to tighten, which will raise prices for investors and spur rental rate increases and higher fees for ancillary services such as laundry and parking. ● Empty nesters looking to downsize, an increase in new immigrants to Canada and rising home prices will bolster multifamily demand. ● Vacancy rates are climbing and rental rates are under downward pressure in Calgary and Edmonton. Rental occupancy rates could firm in Alberta if economic difficulties slow household formation and create challenges in the residential ownership market.

Hotel ● Expect more stability in the Alberta hotel market in late 2016. The balance of the country will record positive market and financial performance for the hotel industry next year. ● The low Canadian dollar will continue to entice visitors, especially from the US and Asian countries. Vancouver, Toronto and Montreal as well as the resort sector will be the prime beneficiaries of this trend. ● Expect the level of investment activity and demand for all hotel types to remain strong in 2016. The typical deal profile will likely involve core markets such as

Toronto and Vancouver and a continuation of bundled or portfolio deals. ● Buyers will also be keen to acquire hotel assets in redevelopment and value-add possibilities. There will also be a diverse buyer pool, with growing interest from private equity and institutional buyers.

Seniors’ housing ● While it will be a challenge for the market to match the same volume of transactions of 2015, sellers may want to take advantage of current pricing. ● The sub-seven percent average cap rate for class A assets signifies the fact that high-quality seniors’ housing is now being viewed as an institutional grade investment. The pricing gap between class A and class B/C assets will likely widen slightly in 2016. ● Recent movements in pricing will result in a period of price discovery in 2016 that will require disciplined disposition processes to identify optimal buyers and maximize pricing. ● There are opportunities for new projects offering mid-range pricing and services as this segment of the market is expected to grow in the coming years. Merchant developers will be more active and will act as a supply conduit for larger operators.

SOUTH AFRICAN PROPERTY REVIEW

Source: CBRE – Canada

been to foreign buyers, and there is more to come, primarily in Vancouver and Toronto, which have emerged as true global markets,” notes Morassutti.

He adds that any short-term economic uncertainty has not dissuaded offshore buyers who tend to have long-term investment horizons and seek to buy prime assets in core locations. “While the low Loonie sweetens the deal, few are buying on the basis of a currency play alone. This capital could easily go to any market in the world.

The reason so much of it is looking to be placed in Canada speaks to the global trend to de-risk and to seek security and safety.”

21

advertorial

The Waterfall development: setting a new standard of living

The Mall of Africa and the new PwC head office

22

SOUTH AFRICAN PROPERTY REVIEW

T

he Waterfall development has been watched by many and, over the past three years, has grown and taken its place in the Highveld skyline. Ensuring that it really does set a new standard for living – offering a live-work-play lifestyle – took years of strategic planning.

The Waterfall development has been established on Waterval Farm, a sprawling piece of land once owned by the Gibson brothers, who bred cattle and ran a stagecoach business between Johannesburg and Pretoria. The farm was sold in 1934 to Moosa Ismail Mia, who built a religious training facility and a school for Indian orphans on parts of the land. Later, the government began expropriating the land for development, with Eskom’s Megawatt Park and the Buccleuch interchange built on what was once the farm. It was with this in mind that the Mia family decided to develop the land with the assistance of Werner van Rhyn, a qualified quantity surveyor and MBA graduate. Van Rhyn has been instrumental in the conceptualisation and implementation of the master development plan for the development of Waterval Farm.

The land is large enough to support this massive development but during the planning stage, care was taken to ensure the space never felt too crowded. In fact, the designers of the development have been able to combine all the elements needed for work, play and living, given the clean canvas they were afforded, which meant no barriers to the creation of a holistic lifestyle. What made it even more special was the fact that Waterfall’s location is at the nexus of a growing residential and commercial node in Gauteng.

Today, the Waterfall development forms part of land held in trust by the Waterfall Islamic Institute which, while it may not sell the land, supports its development on the basis of a 99-year renewable lease. In fact, this development represents a first for housing development in South Africa, as it is the first property project where the developers have come up with a method of creating bankable leased land.

To this end, Waterfall Investment Company (Pty) Ltd, the development vehicle for the land owners of the Waterval Farm, was created. Furthermore, Waterfall Management and Operating Company (WMOC) – the property, asset and operational manager on behalf of the Mias – was established and manages the full development.

Waterfall Equestrian Estate

Waterfall Hills Mature Lifestyle Estate

24

SOUTH AFRICAN PROPERTY REVIEW

advertorial

WMOC is responsible for managing and coordinating all the current and future developments on and for the Waterfall development, on behalf of the Mias.

WMOC also holds extensive expertise in the field of leasehold and is the appointed specialist in the leasing agreements for the developments on Waterfall.

Once completed, the Waterfall development will eventually consist of secure residential estates, mature lifestyle estates; business parks, a Netcare hospital (already operational), five-star hotels, and a number of schools (including Reddam House and Curro), a large clubhouse with a full gym (already operational), a cemetery, a Gautrain station, as well as commercial and retail elements that include the most ambitiously sized shopping mall in Southern Africa, the Mall of Africa.

Waterfall is intended to be an attractive, efficient, secure and easily accessible lifestyle option that is perfectly suited to any person. This development has something for everyone, including those who fall within the affordable housing segment.

The strategic location and attention to detail in all areas of the development ensure that Waterfall promotes an integrated livework-play environment that is ecologically sensitive and provides a new standard in quality estate living.

Gradient - 80% pantone 7462 C

TM

Waterfall Country Estate and Reddam school

rosa@waterfall.co.za www.waterfall.co.za

pantone 7462 C

developer

Cornubia: tying the urban knot A decade in – and at least another to go – and public-private collaboration, value chain partnerships and innovation around social integration remain the lodestars of Tongaat Hulett’s Cornubia development

By Anne Schauffer

Cornubia Bridge, with Umhlanga Ridge on the right and Cornubia on the left

‘C

ornubia is the biggest integrated human settlements project in the country’ was a recent quote in print by the MEC for Human Settlements – a statement endorsed wholeheartedly by Mike Deighton, Managing Director of developers Tongaat Hulett.

But despite the fact that size (1 200 hectares), as they say, matters, Cornubia is about more than scale. This vast phased development has provided the space and time needed for a constant re-examination and re-honing of a project with complex, even ground-breaking goals. With the underlying vision a response to the need for low-income housing – essentially, an affordable neighbourhood – it was always likely to be a socially challenging project, requiring a sensitive, collaborative and inclusionary approach.

26

Phase 1 of Cornubia shopping mall being developed by Investec, opening in October 2017

SOUTH AFRICAN PROPERTY REVIEW

developer Flexibility has been one of the key elements, and as Deighton says, “We can’t just throw out the entire rule book at Cornubia, but we can innovate cautiously and appropriately. We have multiple small pilots, so with each phase we reassess and improve on its workability. We envisage Cornubia as providing a host of answers and blueprints for the future, certainly for Durban, KwaZulu-Natal and South Africa – and, we like to think, even globally.”

From the outset, these 1 200 hectares – about 12km² – were always seen by Tongaat Hulett as land of value, not just because of its key location but also because, as time went on, the surrounding communities of Mount Edgecombe, Umhlanga, Phoenix and more began to spread. At the heart of it was the Cornubia land.

“When we began the conceptual work on Cornubia, one of our urban designers from Gapp Architects, Erky Wood,

coined the phrase ‘tying the urban knot’,” says Deighton.

“Certainly geographically, that’s exactly what it does. If you think about Durban, it’s extensively developed around the CBD, then obviously south, west and north along the major transport routes. But to the north, it bifurcated near Mount Edgecombe between a corridor running along the coast and an inland corridor including the towns of Verulam and Tongaat.

Sandwiched in between was a tongue of sugar-cane land.

Cornubia became the core piece of land sitting in the middle of the bifurcation, and it pulls it all together. It integrates the surrounding communities, and internally, there’s an integrated development concept.”

In 2008, of the 1 200 hectares about half was sold to the municipality. The city’s vision was to build 15 000 low-cost houses on its node; to date, about 1 500 have been built and are occupied, with more under construction.

Although the spatial concept of this residential precinct was designed by the city, both parties signed a development memorandum for cooperation and alignment.

Deighton believes this collaboration has been one of the strengths of the mechanism. “It’s been a joint initiative, joint problem solving; we’ve struggled together,” he says. “A great deal of the early work was very intensive, and we’ve come a long way.”

But, as all players acknowledge, there’s still a way to go. The project has evolved substantially since inception – particularly in terms of integration and sustainability – and continues to do so. Cornubia is a very large, broad-based mixeduse precinct – almost, says Deighton, like a city; although given that it sits within the Durban Metro, it’s a word from which he prefers to shy away.

“It certainly has all the complexity of a town,” he says.

Cornubia will contribute two percent, or R50,4-billion, to South Africa’s gross domestic product over its 20-year development period, according to an analysis conducted

by KPMG “The original vision for the industrial uses, the retail uses – Investec’s 85 000m² shopping centre is currently under construction – and the affordable housing elements all remain, but the integration of that has grown. What wasn’t really evident in the early days

Phase 1 A and B adjacent to Cornubia’s industrial and buisness estate (CIBE)

SOUTH AFRICAN PROPERTY REVIEW

27

developer

Cornubia town centre and the M41 gateway interchage with Umhlanga Ridge in the distance

(although it was always part of our planning, so it’s been around for 10 years) is that the area around Gateway – the Umhlanga Ridge Town Centre – which is probably the largest of its kind in the country in terms of a mixed-use newurbanist precinct, would jump the freeway. That’s happening right now, so you get more of that really integrated use.”

As the developer, Tongaat Hulett has been deeply involved in the municipality’s subsidised housing. “If you look at it spatially, together, we’ve certainly achieved higher density, which is critically

28

important – low-density sprawls are completely unsustainable,” says Deighton. “It’s a better spatial form, particularly urbanistically. I think the utilisation of roads, the enclosure of streets, the making of place by the urban development, is a step up on most of what we’ve seen, certainly in terms of subsidised housing, around the country.”

The biggest challenge has been integration across the affordability bands, so for the people who live there – and who will in the future – Deighton believes there’s

SOUTH AFRICAN PROPERTY REVIEW

a long way to go in terms of where their ambitions lie. “Cornubia is considered a good area for people to locate themselves for highquality residential right across the market, but that’s where a great deal of our future work lies,” he says. “How can we make more of that? We’re absolutely committed to exploring different modes and mechanisms to enable more people of different affordabilities to live together and in a more complex fabric, where there’s a multitude of uses in close proximity to one another.”

Critical to Cornubia are the infrastructural links, and three major interchanges are under way: SANRAL, the massive interchange on the N2; the significant upgrades to the Flanders Drive interchange; and, as part of the city’s Go!Durban Rapid Transport System, the new R280-million bridge and interchange off the N2 highway, between Umhlanga Ridge Town Centre (alongside the Porsche dealership) across the freeway to Cornubia, due to be completed in January 2017. They aren’t the only links planned but they’re a significant intervention in providing physical integration into the surrounding communities. When fully functional, they’ll be gamechanging on many levels.

Cornubia was declared one of three national priority projects in South Africa. Karen Petersen, Development Director at Tongaat Hulett Developments, considers its unique location as the single most important factor. Quite simply, “It’s really part of the economic node,” she says. “For the first time, poor people can walk to Gateway.” For her, THDev is breaking new ground here, and as each phase of the development gets under way, innovative thinking – driven by past mistakes, fresh insight and acquired knowledge – drives the concept and design, in particular when it comes to residential. She says that to date, close to 600 developable hectares of Cornubia have been sold, while Deighton quantifies the investment in top structures – completed or under way – as close to R5-billion or R6-billion, with a projected investment figure of about R25-billion worth of real estate.

An aerial map of Cornubia shows the nodes of commercial/ business, retail, industrial and

SAPOA events

“How can you help us realise our vision?”

“We’re geared for it.”

In the real estate sector you need a partner with fortitude, experience and know-how to see you through.

With our capabilities and deep local sector insights we have innovative solutions to meet your needs. Let us be your partner for wherever your ambition takes you. standardbank.co.za/business

Authorised financial services and registered credit provider (NCRCP15).

SOUTH AFRICAN PROPERTY REVIEW

The Standard Bank of South Africa Limited (Reg. No. 1962/000738/06). Moving Forward is a trademark of The Standard Bank of South Africa Limited. SBSA 230709 – 1/16

51

developer

Investec’s Cornubia shopping mall will be located off Ethekwini’s Go!Durban Rapid Transport System route

residential development – past, present and future – and provides a sense of scale and place. Because of the sensitive wetlands, buffers, servitudes and topography of the land, only 750 of the 1 200 hectares are developable, with 40% as social spaces. “The intention here is to utilise this open space network as a series of active open spaces making provision for mountain biking, trail running and other forms of non-motorised transport,” says Petersen.

“Several portions of land have been earmarked for social facility clusters, which would include schools, libraries, multipurpose halls/centres, etc – all within easy walking distance from key activity spines and public transport.”

Ninety-nine percent of the Cornubia Industrial Business (CIBE) is sold out, with seven factories fully

Contact Us For Property Disposals Aucor Property, a stand-alone division of the Aucor Group, SA’s leading authority on asset acquisition and disposal, is at the forefront of the real estate auction industry, bringing a broad range of residential and commercial property to auction floors across the country.

With a national footprint, Aucor Property’s dedicated and experienced team, manage the entire sales and purchase process, offering an extensive range of purchase and sale methods all backed by proven marketing strategies that deliver results.

Our services includes

AUCTIONS TENDERS

PRIVATE TREATY ONLINE SERVICES

ASSET MARKETING VALUATIONS

Contact: property@aucor.com | Johannesburg 011 033 6600 | www.aucorproperty.co.za LIKE US

30

/AucorProperty /AucorProperty

/AucorProperty

SOUTH AFRICAN PROPERTY REVIEW

/AucorProperty FOLLOW US

/AucorProperty /AucorProperty

developer Cornubia housing and employment ●

●

●

●

Cornubia is ultimately envisaged to have 10 000 affordable and middle-income units,15 000 subsidised units and 2,5-million square metres of commercial and industrial bulk.

An estimated 285 000 new employment opportunities will be created in the long term by the commercial activities associated with Cornubia. This will represent 12% of total employment in the province.

It will be achieved through 39 000 direct jobs, 144 000 indirect jobs and an additional 45 000 jobs in the rest of the province.

A further 54 000 jobs will be created from the economic impact of salaries and wages paid to employees at the development.

operational and numerous listed property funds such as Zenprop and Redefine, as well as other purchasers such as Bidvest, JT Ross and Blindsmart, having bought into the CIBE. The 15 000m² Momentum Life call centre falls within the Cornubia Business Hub, with Grinaker as the main contractor.

Adjacent to it is the retail node of Cornubia Retail Park, where Investec’s 85 000m² Cornubia Mall is emerging from the ground. With a different product offering from the Gateway Theatre of Shopping – but also with movie theatres – it’s designed to appeal as destination retail to a different market.

The 11,2-hectare Marshall Dam node will make provision for 1 000 affordable apartments

in a secure, managed environment. Until recently it was submitted as the Athlete’s Village in Durban’s bid for the Commonwealth Games of 2022.

However, eThekwini has elected to develop the village on a site in Cornubia, on land owned by the municipality. Once completed, the village will accommodate about 6 500 athletes and officials.

Near the existing informal settlement of Blackburn Village, Tongaat Hulett plans to pilot an innovative affordable housing scheme of almost 2 000 units, of which employer-assisted housing and mixed-use will be key elements.

The future of the stretch of land known as Cornubia North is not carved in stone but the bulk of it will be governmentsubsidised housing, with other uses such as a business park, commercial opportunities and middle-income housing as potential parts of the mix.

For THDev’s residential development component – 10 000 units, market-led and largely private sector-driven – the focus will be on that vast “gap” market which falls outside the subsidised housing band.

Recognised as a very complex market segment – largely overindebted and therefore unable to raise a bond – it’s considered the right time and place to explore innovative and flexible solutions, whether in terms of financing, forms of tenure, collaboration via others such as employers, unions, philanthropists, public sector and more.

Petersen emphasised no single residential units but rather an innovative highdensity mixed-use model. A precinct that THDev is referring to as Umhlanga Hills will be one of the early portions of land to be released for this, specifically targeting a more affordable product. These housing opportunities will be in higherdensity typologies close to Cornubia Boulevard and the

Development Management

Quantity Surveying Leasing Tenant Co-ordination

+27 (12) (12) 346 4744 | www.illungile.co.za SOUTH AFRICAN PROPERTY REVIEW

31

XXXXXXXXX developer Go!Durban public transport route (which is similar to Johannesburg’s Rea Vaya).

“We are focusing on trying to bring down the affordability level into that so-called gap market – an intervention to get a market that’s currently under-serviced and not working to work,” Deighton says.

Tongaat Hulett Corporate Director Bongani Gumede heads up the Socioeconomic Sustainability and Innovation Programme at Cornubia, a series of vital programmes designed to ensure that the core philosophy that underpins what Petersen calls “an affordable and inclusionary neighbourhood” at Cornubia works. His primary challenges have revolved around the reality of the lives of those living in the subsidised housing, particularly with regard to income generation. It’s all very well to bring people closer to employment opportunities, but without skills, how do they participate in the local economy?

In addition, an elderly person may have been allocated a subsidised house, but the grandchildren soon follow. More than 60% of those living at Cornubia are under 20 years old.

Gumede began by looking beyond Cornubia.

“We designated Greater Umhlanga as a zerounemployment zone by facilitating more jobs than economically active population in the area,” he says. Cornubia would fall within that broader catchment area. “To understand the issues and priorities, we created a social-demographic and economic-participationopportunities database, so training could go ahead for the jobs we have, not those we like.” Conversely, they designed jobs around the capacity people have, rather than designing jobs for skills they don’t have.

He explained the process: “We engaged with a TVET College and the eThekwini Skills Development Unit, and asked them to put

The proposed higher-density affordable to mid-market housing at Umhlanga Hills

32

SOUTH AFRICAN PROPERTY REVIEW

aside their generic programmes and rather tailor the programmes and skills-development offering to qualifications that match the locally available economic sectors, such as construction, retail and industrial as well as private residential property services projects and so on.”

According to Gumede, the results have been outstanding.

The numerous social integration projects at Cornubia are ongoing and far-reaching. Often, one thing leads to another, as with the management of open spaces providing local employment. Working in partnership with the Office of the Premier, Wildlands Conservation Trust and the eThekwini municipal environment, parks and solid waste units, an alien invasive eradication project was developed to remove alien flora along 10km of the Ohlanga River. The spin-off? The young community members who participated in the project gained the necessary

landscaping skills via Wildlands’ Trees for Life initiative, and set up their own businesses dealing with the landscaping and management of Greater Umhlanga’s open space.

Cornubia’s nursery contains more than 25 000 trees destined for the rehabilitation of the development. In addition, designated green spaces have been transformed into highly successful vegetable gardens managed by – and as income generators for – the elderly.

Surplus is sold to surrounding retail outlets in Umhlanga.

Cornubia is the biggest integrated human settlements project in the country. It’s a massive responsibility because all eyes are on how Tongaat Hulett and partners make this work – really work. As Deighton says, “Cornubia is a pilot for what we look for in the future. We’re exploring different concepts and models here, and I think it could be game-changing for the urban experience in South Africa.

That’s our mission.”

on show

SOUTH AFRICAN PROPERTY REVIEW

33

on show

Leading the pack The iconic heartbeat of a new city

34

SOUTH AFRICAN PROPERTY REVIEW

on show

SOUTH AFRICAN PROPERTY REVIEW

35

on show

Gauteng Premier David Makhura

T

he newly opened Mall of Africa has set a benchmark in mixed-use shopping and entertainment in South Africa’s newest CBD – Waterfall City – by being the largest firstphase mall development in southern Africa to date.

Mall of Africa opened for business as scheduled

36

on 28 April 2016 and boasts more than 300 outlets across the 131 038m² mall.

Waterfall is located midway between Johannesburg and Pretoria and is considered one of the fastest-growing areas in South Africa. In fact, Waterfall City currently offers the third-largest office

SOUTH AFRICAN PROPERTY REVIEW

headquarters after the Johannesburg CBD and Sandton. The location is key thanks to its close proximity to both OR Tambo International Airport and Lanseria Airport.

Waterfall City and Mall of Africa are also on a convenient Gautrain bus route from the nearby Midrand station, with ample provision for public taxi access. Dedicated Uber pickup and drop-off points at the Mall are a first on offer in a South African retail environment.

Owned by Attacq (80%), developed by Atterbury, engineered by Aurecon and designed by MDS Architecture, the fully completed project is an allencompassing collaboration, and was valued at R4,9-billion upon opening for trade.

Attacq is a leading South African capital growth property company listed on the JSE with two focus areas: investments and developments. The company has a diverse investment portfolio with an excellent risk profile and its international development footprint strengthens the Attacq diversity beyond its South African portfolio.

“The opening of this iconic mega mall marks a significant strategic milestone for retail in South Africa and takes the African retail

experience to a total next level,” says Morné Wilken, Chief Executive Officer of Attacq. “As the 80% owner of Mall of Africa, the opening of the mall marks a significant business milestone for Attacq and our business environment.

Mall of Africa is a world-class lifestyle and retail destination, bringing significant value to the offering of the Gauteng province as the southern African sub-continent’s commercial powerhouse.”

The Mall of Africa was officially opened during a select breakfast opening ceremony by the Premier of Gauteng David Makhura.

“Egoli, here in Gauteng, that’s where the economy is going,” he said in his opening address. “And I am very pleased, even in the most difficult time in our economy, things are coming up everywhere in Gauteng. Thank you very much to the business people – that’s a statement of confidence in us. Thank you very much – today is a great day; a great day to see the beginning of a new city coming up in our province.”

Mall of Africa boasts great shopping, lifestyle features, events infrastructure,

SOUTH AFRICAN PROPERTY REVIEW

36

Bro

Proud by Association Established for

41 years Representing CBRE in Sub-Saharan Africa since 2004

Leasing and initial Managing Agent for Mall Of Africa

21 New Retail

Over 1,200 properties under management

in Africa

Value of assets under management

R220 bn

337,000 m²

Over 40 million m² under management 3 new countries to open and add to

tenants managed

African platform in 2016

Management systems are

Provide service offering across

new SA retail projects leased and being leased.

Largest of these projects is Mall of Africa

ISO 9001:2008 certified

17 Sub-Saharan Africa Countries

9 New Retail

6 New Retail

Research and

in East Africa

solutions

R51 bn under

Africa’s Leading Independent Property Service Provider

developments

R30 bn under

Over R136 bn

management in Facilities Management

broll.com

2,000 employees Over 30,000 28% of workforce

developments

in Southern Africa

SAPOA events

in West Africa

under Property Management in SA and Africa

developments

Occupier Services Management

database led

Visit broll.com to download the latest Retail Leasing Opportunities Across Sub-Saharan Africa Our full bouquet of property-related services Auctions and Sales • Broking • Corporate Real Estate Services Facilities Management • Property Management • Research • Retail Leasing and Projects Shopping Centre Management • Valuation and Advisory Services Angola | Cameroon | Ghana | Ivory Coast | Kenya | Madagascar | Malawi | Mauritius Mozambique | Namibia | Nigeria | Reunion | South Africa | Swaziland | Uganda | Zambia

SOUTH AFRICAN PROPERTY REVIEW

91

on show and attractive surrounding environments and landscaped gardens. With its pretty unique, experience-based architecture, the mall also holds a lot of excitement. Conservative estimates indicate that about 15-million people will visit the destination mall annually to enjoy a world-class bluechip shopping experience.

The development has enhanced the diversity of the retail sector in South Africa, changed Gauteng’s skyline and stimulated the economy. The project supports the local economic development and has stimulated job opportunities. On some days during the development phases, up to 14 000 contractors from diverse disciplines were working on site. It has been estimated that after the opening about 4 500 people will be employed by and in the Mall of Africa.

MADE IN ITALY

RAINPLUS Siphonic roof drainage system Valsir Rainplus® represents the most modern technology in the construction sector and the drainage of rainwater from the roofs of medium and large size buildings.

Maximum performance, money savings and sustainability in one single system. www.valsir-uneeq.co.za info@valsir-uneeq.co.za Tel: +27 11 609 8284 / +27 21 557 5293

PAG_VALSIR-UNEEQ_RAINPLUS_GB_210x148.indd 1

38

SOUTH AFRICAN PROPERTY REVIEW

31/07/15 08:44

on show The design and build

“The Mall of Africa

Aurecon was responsible for the civil and structural engineering of the project, which included the bulk earthworks, subsoil and bulk stormwater design, the foundations and all structural designs. Certainly one of the biggest projects the company has undertaken in South Africa, the development was definitely a challenge – but an interesting one. ”The footprint of the mall stretches over more than 16 hectares comprising multilevel basement parking and service delivery areas, two main levels of retail plus multilevel parkades,” explains Aurecon’s Technical Director Nicol Labuschagne.

“From an engineering perspective I would say that the most interesting structural features are the special translucent (ETFE) roof over the central court

has been designed and developed

by Africans but I believe it will stand proud with the most outstanding international retail centres” – Tia Kanakakis, MDS Architecture

Graeme Page Consulting Engineers CC (GPCE) and Wingrove Consulting Engineers CC (WinCE) were privileged to have been part of the Professional Team involved in the iconic Mall of Africa. We would like to take this opportunity to wish Atterbury Property Developments and Attacq the best of luck with the launch and subsequent trading of the mall.

SOUTH AFRICAN PROPERTY REVIEW

39

on show

40

PROUD TO BE INVOLVED WITH THE MALL OF AFRICA PROJECT

Proud to be associated with the Mall of Africa

NWS.CO.ZA | INFO@NWS.CO.ZA

www.specialisedfiretechnology.co.za info@sftsafety.co.za 011 476 7420 SFT House 257 Smit Street, Fairland, 2195

SOUTH AFRICAN PROPERTY REVIEW

on show

Attacq CEO Morné Wilken, Attacq Chairman Pierre Tredoux and Atterbury CEO Louis van der Watt

TV personality Katlego Maboe as MC at the opening

and the transfer structures in the basement to enable a large delivery truck tunnel to transgress the entire length of the basement.”

With a development of this size, planning was key – and one of the most important parts of the original infrastructure was preparing the roads and putting a traffic and pedestrian plan in place.

Atterbury was the developer on this project, so it was up to the company to deal with this mammoth undertaking.

The Atterbury Property Group was founded in 1994 with a specific focus on developing retail centres and commercial buildings across South Africa, the rest of the African continent and, more recently, Europe.

The group has spent close to R290-million to date on upgrading the road network system around the mall.

Intersections that needed special attention included

“The opening of this iconic mega mall marks a significant strategic milestone for retail in South Africa and takes the African retail experience to the next level” – Morné Wilken, Chief Executive Officer of Attacq

SOUTH AFRICAN PROPERTY REVIEW

41

on show

E R A RC

PE U, AND U S T R YO WHA

Y FO T R O E D CAN UR PROP G YO NNIN

WI D R NY, A A P W A M CO ING, E D N A E LUE LE GI A Y A V H S F A AND OT O IES. L G N A I N S ERT P CLEA CARE HA O R R PR E U P O SU TO Y D D TO A

CLEANING Business and Industry, Retail, Healthcare, Hospitality, Education and Specialist Cleaning

HYGIENE Rentals, Sales, Dust Control and Consumables

PEST MANAGEMENT SERVICES Flying, Crawling, Rodents and Fogging

We’re 51% black-owned, of which 16% is owned by black women.

Along with our empowerment ethos, we’re also committed to delivering outstanding, proactive service, stringent safety standards, environmentally sustainable cleaning, and well-trained staff. Which is why we were recently appointed as the cleaning company for the prestigious Mall of Africa.

So call our 24/7 helpdesk on 0800 453 444 or email supercare.opshelpdesk@supercare.co.za, and find out how we can help your properties shine.

42

SOUTH AFRICAN PROPERTY REVIEW

2116 Supercare Advert 02 RR.indd 1

www.compass-group.co.za

05.05.2016 7:55 AM

on show

the Allandale Road exit connecting to the N1 freeway, which will see triple the amount of traffic it used to. A unique aspect is Atterbury’s freeflowing intersection, which is designed to not require traffic lights, and is actually the first of its kind in Africa to be constructed on this scale. The hope is to simplify the route and facilitate easy access to Waterfall on an already busy intersection.

The new R160-million Bridal Veil Road overpass bridge has created a brandnew east-west transport route. The new bridge crosses the N1 highway south of the Allandale Road interchange and north of the Buccleuch interchange. It creates a direct link between Midrand and Waterfall City with a new R40-million, one-kilometre SOUTH AFRICAN PROPERTY REVIEW

7:55 AM

43

ag

H

|2 4

Y

p v

AS SE TS

UR

OU

SAF E

| VIP & Even ts

o el

O un

nt me

Y

So

SE CURING

h

KEE PI NG

as

nd

D

e

|

o n s | Ta c t i c a luti l A So i r ic gy Solutions | & olo R G e ta il

Ca

ec

re

ro

an

nt

hn

sh

Ce

ec |T

M

i

on

at em rN u o

tr

rt | Arme d ppo Re Su sp d | Tr a s i o n n i o n n ga se

luti

END TO END L IN TA TE O ions | Parki t T u l ng So

OLUTION S ED T RA t | G u a r d i n g S e r v i c e s G | E Command en l onal

C

on show

Fidelity Security Group is Southern Africa’s largest integrated security solutions provider and the industry leader in protection innovation.

Our commercial and residential client base benefits from the combined performance of our comprehensive service offering, with the advantage of a thorough upfront system needs analysis to ensure the right results with custom designed capabilities.

Trust a new breed of security solutions based on expertise, experience and service excellence.

• • • •

Over 95 branches nationwide Protecting 1 000’s of citizens and their assets Supporting over 42 000 employees and their families Proudly South African. AAA BEE rating

KEEPING YOU SAFE | SECURING YOUR ASSETS

+27 11 763 9000 • www.fidelitysecurity.co.za 44

SOUTH AFRICAN PROPERTY REVIEW

on show S-bend dual carriageway extension to Bridal Veil Road, which will take shoppers right to the doors of Mall of Africa.

It will carry four lanes of traffic – two in each direction – a pedestrian walkway, a cycling lane and a raised centre median.

Getting to the mall has been made easy – and, once there, convenience reigns as a result of the creation of 6 500 parking bays as well as reserved parking for physically disabled shoppers.

“This is the biggest mall that we have ever done,” says Atterbury Property’s Zahn Hulme. “It’s also the biggest development ever completed in a single phase.

One of our greatest challenges with a build of this size was the heavy rainfall in 2014.

We lost 10 days of construction time and we had to pump millions of litres of water out of the foundations.”

“In line with Atterbury’s vision to create working, shopping and entertainment spaces for everyone to live

SOUTH AFRICAN PROPERTY REVIEW

45

on show

100% RECYCLABLE

DERBIT® SP-FR

Dual Re-enforced, UV protected by the incorporation of noble polymer modification, Fire Retardant (BROOF t2) certified, bituminous waterproofing membrane

Sustainable Waterproofing Solutions

info@derbit.co.za www.derbit.co.za 0860 DERBIT (337248) 46

SOUTH AFRICAN PROPERTY REVIEW

info@quakeseal.co.za www.quakeseal.co.za 082 936 2669 – 011 022 8211

on show to their full potential, the development of this breathtaking shopping and leisure destination introduces an unmissable and unmatched retail experience,” says Louis van der Watt, Chief Executive Officer of Atterbury. “Mall of Africa’s exceptional scale, design, location and retail mix place it at the forefront of property development.”

Rawlins Wales & Partners supplied the electrical engineering services on the project. To tackle a venture of this scope, the team broke the project up into smaller “sections” without letting the enormity of it deflect the design process, explains project director Gideon Steyn. ”It was one of the biggest and definitely the most challenging of projects because of the number of individual tenants as well as the supply of power,” he says.

The heating, ventilation and air-conditioning consultation came from Graeme Page Consulting Engineers CC (GPCE). “Our firm, was responsible for the design and implementation of the air-conditioning installation, and we were privileged to work with a fantastic and professional team,” says GPCE’s Graeme Page.

The project implemented multiple green technologies, including the massive photovoltaic installation on the roof. The installation will be the largest in South Africa and Africa and will provide 4,8MVA of sustainable power for the centre. The mall also uses grey water harvesting in all public toilets and for the irrigation of the entire development. Its design ensures that natural light is maximised in the mall in such a way that shopper comfort is also optimised.

The total size of the Mall of Africa, including buildings and parking decks, is 550 000m² making it the largest retail development in Africa.

SOUTH AFRICAN PROPERTY REVIEW

47

on show

48

SOUTH AFRICAN PROPERTY REVIEW

on show This is the equivalent of 78 rugby fields. Within this landscape, there is 130 000m² dedicated to retail space, featuring more than 300 shops. James Ehlers, Managing Director at Atterbury Property Developments, notes that a stroll around the building’s perimeter will take you on a walk of 1,75 kilometres. He also reveals that more than six kilometres of shop front has been created inside, more than 530 kilometres of post-tension cable has been used in the construction, as well as 18 500 tons of rebar and 205 000 cubic metres of concrete.

The retail concept for Mall of Africa is to provide distinctive shopping and entertainment. The mall is meant to serve locals and tourists, and includes flagship stores for all the

SOUTH AFRICAN PROPERTY REVIEW

49

on show

Mall of Africa construction site October 2014

We did it!

Atterbury, Bloukrans building, Fifth floor, Lynnwood Bridge 4 Daventry Street, Lynnwood Manor, Pretoria T +27 12 471 1600 enquiry@atterbury.co.za atterbury.co.za 50

SOUTH AFRICAN PROPERTY REVIEW

Mall of Africa opening day 28 April 2016

on show major retailers in South Africa as well as a variety of specialty stores. Anchor tenants include Woolworths, Edgars (which has the biggest store in the mall), Checkers and Game, while local and international brands on site include Forever New, River Island, Mango, Versace, Cotton On, H&M and Forever 21. The Mall is also home to the first Zara Home store in South Africa, French fashion brand The Kooples and iconic coffee house Starbucks.

Designed by MDS Architecture, cutting-edge strategy and important interior and exterior aesthetics take their inspiration from Africa’s natural geological features and landscapes. Tia Kanakakis, a partner at MDS who headed up the Mall of Africa project explains the design brief: ”Mall of Africa was to set a new benchmark in retail design that would put South Africa and Africa on the map in terms of retail development.

The combination of excellent architecture combined with the leasing expertise on the project placed in a new urban framework was intended to provide the catalyst for a new CBD.” The latest international trends in mall design are combined with the inclusion of environmentally sustainable design, materials and technologies, and with the New Urbanist principle of walkable, mixed-use environments. Emphasis was placed on the exterior

Did you know? ● 131 038m² in floor space ● Dedicated drop-off zones ● Public transport holding facility ● 24 access points ● 303 outlets ● ±6 800 parking bays ● 3 078 employees ● 6 000m shop-front length ● 40 escalators SOUTH AFRICAN PROPERTY REVIEW

51

THE WINNING

on show

PARKING SOLUTION

AT THE MALL OF AFRICA PROUDLY SUPPLIED BY

ZEAG’s next generation parking system offers reliability, flexibility as well as exceptional durability.

Combined with JMS, their latest multi-platform management software, the system caters for solutions ranging from a simple car park to multiple sites linked into a centralised control room.

All this supported by a company celebrating two decades in the Southern African parking market.

We are an ISO 9001 Certified Company

CONTACT: +27REVIEW 11 794 4525 I WWW.HUBPARKING.CO.ZA SOUTH AFRICAN PROPERTY

52

on show aesthetic of the mall, the ease of internal shopper circulation and allowing shops, store fronts and even entrances and parkades to have their own architectural identity.

Shop fronts are high, and circulation spaces are filled with natural light.

With a project of this magnitude, the greatest challenge was to remain true to the original vision of the design while taking into account the commercial constraints that arose during the project, says Kanakakis.

“Our client wanted us to create a landmark development – but at the same time to be mindful of the feasibility and the return on the project,” she says. “At the end of the day we were appointed on the strength of being commercial and retail specialist architects; as such, we drove the design vision within the commercial aspects of the project.”

SOUTH AFRICAN PROPERTY REVIEW

53

on show

Care | Integrity | Consistency

012 346 5752

• • • • • •

Health and Safety Specifications Baseline Risk Assessments Health and Safety Plan Construction Work Permit Application Legal Audits Tenant Legal Obligations

christof@cairnmead.co.za

Proud to be associated with the Mall of Africa

54

SOUTH AFRICAN PROPERTY REVIEW

on show

A long term project such as this one demands focus.

“Fortunately our client was very involved in the day-today running, and had a vested interest in streamlining the commercial aspects of the development,” says Kanakakis.

“The Mall of Africa was designed

by Africans but it stands shoulder to shoulder with the best retail design builds worldwide.”

Novum Structures was appointed as the design build specialty sub-contractor for the central free-form skylight.

This skylight is 170m long and varies in width from 12 to 50 metres. The structure is made up of 1 357 unique painted steel beams, which were site-bolted together to 507 custom machine steel nodes.

This structure was subsequently clad with 846 unique two-layer inflated ETFE pillow. The pressure in these pillows is maintained by SOUTH AFRICAN PROPERTY REVIEW

55

on show

56

SOUTH AFRICAN PROPERTY REVIEW

on show

100 95 75

25 5 0

three air machines located adjacent to the skylight, and by hundreds of metres of air lines.

“Novum first got involved with this project in 2012 and has subsequently worked very closely with MDS Architecture and other members of the professional team to finalise the design,” says Andrew Spottiswoode, Engineering Manager at Novum Holdings LLC South Africa. “As a design build company, we were responsible for the full detailed engineering, all drawings, fabrication and installation of this skylight.

For the project installation we worked very closely with Tass Engineering and the Mall of Africa JV. “Even though I have spent a great deal of time working on the central skylight, I still find the 3D undulating geometry of this skylight my favourite structural feature of this mall. Between MDS and ourselves, we explored numerous grid options in which we varied the grid density as well as the overall form and curvature of the skylight. Getting the right grid size and curvature is critical – not only does this affect the visual appearance of the skylight, but it also has a major effect on the cost and constructability of this feature element.”

The space offers easy shopping navigation, divided into upper and lower levels that can be accessed through 26 entrances. The mall also features 40 escalators and 50 elevator facilities for easy access, as well as nine restrooms well positioned throughout the structure. The layout of the mall is both straight and curved, with a race-track circulation.

A central spine links a variety of offerings beneath a large and dramatic environmentally friendly roof covering. This glazed roof feature is said to be the largest of its kind SOUTH AFRICAN PROPERTY REVIEW

57

on show

“Our distinctive commitment is to quality excellence”

Large Domestic and Commercial Landscape Contractors • • • • •

Design Work Water Features Hard Landscaping Irrigation Maintenance

PROUD TO BE PART OF THE MALL OF AFRICA DEVELOPMENT 014 576 1925 www.greenacreslandscapes.co.za info@greenacreslandscapes.co.za 58

SOUTH AFRICAN PROPERTY REVIEW

on show

More info The mall is open seven days a week – from 9am to 8pm on Mondays to Saturdays and from 10am to 8pm on Sundays and public holidays. Extended trading hours may apply during peak seasons.

The centre is located at Lone Creek Crescent and Magwa Crescent in Waterfall City (latitude: 26°00’53.3”S, longitude: 28°06’23.5”E).

Centre management is available at +27 (0)10 569 1470 or marketing@mallofafrica.co.za.

in the world, and spectacular lighting design enhances the daylight during the day and accentuates the spine at night.

Designated identifiable shopping court areas enable easy shopper navigation through the mall thanks to a spacious circulation layout. Each has its own name and houses various shopping products. The Crystal Court was based on the mineral wealth of southern Africa, with strong geometric patterns evocative of crystals and diamonds. The Great Lakes Court is inspired by the great lakes of Africa, and the colours, materials and patterns in this court are calm and gentle. The Oleum Court draws its inspiration from the trade and oil businesses in West Africa, with bold, dramatic patterns and rich, glowing colours. The Sand Court combines the warm colours and soft contours of the North African desert with the motifs

found in traditional Berber carpets and architecture.

The Forest Walk or central spine area are themed around the rainforests of Central Africa.

The materials and patterns evoke the sinuous rivers, warm timber and tropical foliage of a rainforest.

It’s not just everyday shopping and services that are available.

Alongside the dramatic design and space is valet parking, handsfree shopping and Wi-Fi. There is also a Champagne bar in the restaurant Zuri. With regards to entertainment, Mall of Africa houses a state-of-the-art Ster-Kinekor movie theatre, including an IMAX 3D theatre, two Cine Prestige 3D cinemas, each with its own VIP lounge area and exclusive catering offers, and a further six cinemas, two of which are 3D-ready.

Eleven restaurants will offer a variety of culinary options catering not just for the high-end consumer but for families as well.

SOUTH AFRICAN PROPERTY REVIEW

59

on show Choices include Spur, Ocean Basket, Wimpy, KFC, McDonald’s, Mythos, Rocomamas and Wasabi, while those with a sweet tooth can indulge in Krispy Kreme, Cinnabon and Häagen-Dazs.

A giant food court opens onto central landscaped lawns. This family-orientated park and children’s play area is designed to bring people together. In addition there is an interactive musical water fountain and an amphitheatre.

“Mall of Africa was designed to provide something for everyone,” says Cobus van Heerden of Atterbury Property Developments. “Not only do we offer the best range of local and international retail brands, we also created a space where people can enjoy themselves, be it having lunch with friends after a morning of shopping or enjoying some fresh air while they watch their children play in the park. Mall of Africa is a place to be savoured.”

The Future Mall of Africa is essentially the anchor of the future mixed-use developments planned for the area. These include more offices, retail spaces, a hotel, conference and recreational amenities and residential areas. The Mall of Africa will be the heart of this future precinct, known as Waterfall City, which has been specifically designed to promote integrated live/ work/play environments.

“The super-regional Mall of Africa will also act as a strong catalyst for demand for premises in the surrounding Waterfall City, which is seen as one of the most significant South African commercial developments of the decade, and continues to attract much local and international attention as a new corporateheadquarters destination,” says Wilken. “Waterfall City is rapidly becoming a destination city where residents, business occupants and visitors can

60

SOUTH AFRICAN PROPERTY REVIEW

on show

SOUTH AFRICAN PROPERTY REVIEW

61

on show enjoy a true work, live and play quality lifestyle.

With its many corporate headquarters and industrial nodes, the city will offer the ideal destination for corporate consolidation and the accompanying cost reduction from having a central location where business teams can be housed together in Gauteng’s new corporate business powerhouse.”

Situated adjacent to Mall of Africa, Waterfall Park, whose completion coincided with the opening of the mall, is inspired by Central Park in New York.

The park offers a vibrant and lively family-friendly space. It has been designed to bring together families and friends within walking distance of their offices or homes.

“With the opening of the Mall of Africa, Attacq confirms its pursuit of sound capital growth, delivering its strategic business model for long-term returns for all Attacq stakeholders,” says Wilken. “Attacq will continue to develop, invest and grow wisely as a sound listed capital growth fund with a strong investment and development pipeline beyond this major milestone.

We will continue to pursue good business opportunities in South Africa, both in developing markets and in established markets.”

62

SOUTH AFRICAN PROPERTY REVIEW

SAP

on show

SOUTH AFRICAN PROPERTY REVIEW

SAPOA Mag Advert MDS Architecture Full Page.indd 1

63

2016/05/10 03:50:18 PM

on show

Contact ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

64

SOUTH AFRICAN PROPERTY REVIEW

Attacq Atterbury GHC Africa Valsir-Uneeq MDS Architecture Norval Wentzel Steinberg Graeme Page Consulting Engineers Wingrove Consulting Engineers Broll Property Group PTY LTD Fidelity Security Gauteng Piling Green Acres Landscapes Derbit Quake Seal Supercare Zeag HUB Parking Technology Cairnmead Industrial Consultants SFT EQF Igneous Concrete

Attacq.co.za Atterbury.co.za Ghcafrica.co.za Valsir-uneeq.co.za Mdsarch.co.za Nws.co.za Gpce.co.za winconsult@iburst.co.za Broll.com Fidelitysecurity.co.za Gautengpiling.co.za Greenacreslandscapes.co.za Derbit.co.za Quakeseal.co.za Compass-group.co.za Hubparking.com christof@cairnmead.co.za Specialisedfiretechnology.co.za Eqf.co.za Igneous.co.za

on show

SOUTH AFRICAN PROPERTY REVIEW

65

SAPOA events

SAPOA Port Elizabeth

hosts annual general meeting

ABOVE Re-elected Port Elizabeth proficient Chairman Mark Bakker LEFT FNB Property Economist John Loos

SAPOA Port Elizabeth, in collaboration with First National Bank, hosted the region’s annual general meeting at the historic PE St George’s Club in Bird Street.

A breakfast session was enjoyed with FNB Property Economist John Loos, who delivered an interesting and informative update on the country’s current property and economic situation. The SAPOA PE AGM followed the breakfast presentation.

Congratulations to Mark Bakker, who was re-elected and accepted the position as the region’s proficient Chairman.

An additional word of appreciation is extended to the new and re-elected Regional Executive Committee members for their valuable contribution in addressing relevant and appropriate needs and concerns of local property owners, which is the pivotal point of attention for the Committee.

66

SOUTH AFRICAN PROPERTY REVIEW

SAPOA events

Amateur golf at its finest

First-place winners took home Gyro Swing sets sponsored by Nedbank

Second-place winners received R750 Pro Shop vouchers courtesy of SAPOA

Third-place winners received R500 Pro Shop vouchers courtesy of SAPOA

SAPOA Limpopo recently hosted a golf day at the Polokwane Golf Club, with76 players taking part. We would like to thank the following sponsors for their valuable contribution to making this day a success: ● First prizes were sponsored by Nedbank ● Hole 1 was sponsored by AccTech Limpopo ● Hole 3 was sponsored by Max Prof ● Hole 9 was sponsored by Mall of the North ● Hole 10 was sponsored by FNB ● Hole 11 was sponsored by Da-Ga-Boys ● Hole 18 was sponsored by Advice Worx ● Branded water bottles were sponsored by LimAqua

Longest Drive prize winners: Morne Myburgh and Esmeralde Burke (prizes by AccTech Limpopo)

SOUTH AFRICAN PROPERTY REVIEW

67

events

Invest in yourself: think finance Top students honoured at University of Johannesburg annual prize-giving

By Maud Nale Photographs Xavier Saer

The class of 2015’s top achievers in the Faculty of Finance & Investment Management

T

he Department of Finance & Investment Management at the University of Johannesburg hosted its eighth annual prize-giving ceremony in Johannesburg. The awards ceremony is a highlight within the department, arranged to honour and recognise the department’s top academic achievers, and awarding a total of 39 prizes to the top students in various modules and programmes for 2015. Special-achievement prizes are also awarded.

The Department of Finance & Investment Management, established in 2005, consists of five divisions, offering modules and programmes in financial management, financial planning, investment management, property valuation and management, and quantitative finance.

The ceremony was attended by the Dean of the faculty, the Vice Dean, HODs from other departments in the faculty, faculty and departmental staff, lecturers, prize-winners and their families, as well as the sponsors of the programme categories.

Kevin Thomas, Deputy HOD and a senior lecturer, was the programme director, and the guest speaker was HOD and senior lecturer Carl Anschutz. Both lecturers work at the Department of Finance & Investment Management.

68

SOUTH AFRICAN PROPERTY REVIEW

Top achievers at the prize-giving ceremony

ABOVE Programme director Kevin Thomas, Deputy HOD and a senior lecturer RIGHT André Kruger, a lecturer and programme manager of Property Valuation and Management, with SAPOA CEO Neil Gopal

events

Wits graduation ceremony S

Professor Conrad Mueller (Member of Convocation), Professor Adam Habib (Vice Chancellor), Neil Gopal (SAPOA Chief Executive Officer), Carol Crosley (University Registrar), Professor Ian Jandrell (Dean, EBE Faculty)

UPCOMING

EVENTS

APOA CEO Neil Gopal was recently invited as a guest speaker at the University of the Witwatersrand (Wits) Faculty of Engineering and the Built Environment graduation ceremony .

Officiating at the ceremony were Chancellor Justice Dikgang Moseneke and Vice Chancellor Adam Habib.

In attendance were the Deputy ViceChancellor, the University Registrar, the President of Convocation, the President of the SRC, Heads of Schools, Deans of Faculties and the academics.

2016 June

Region

Date

Event

East London

9 June

East London Networking Event

Gauteng

21 June

SAPOA Golf Day

Gauteng

21 to 23 June

SAPOA Annual Convention and Property Exhibition

July Region

Date

Event

Gauteng

14 July

Power Hour Breakfast: Topic TBC

East London

19 July

East London Breakfast Seminar

Port Elizabeth

20 July

PE Networking Event

Mpumalanga

21 July

Mpumalanga Networking Event

KwaZulu-Natal

28 July

KZN Breakfast Presentation

August Region

Date

Event

East London

4 August

East London Golf Day

Gauteng

5 August

SAPOA Women’s Day

Gauteng

11 August

Research Breakfast: Topic TBC

Port Elizabeth

17 August

PE Power Hour Breakfast

Gauteng

TBC

Gauteng Networking Event

Dates are subject to change. Please see Sapoa.org.za for regular updates.

frankly speaking

Getting on the Attac(q)k Morné Wilken, Chief Executive Officer of Attacq is the family man behind one of Africa’s newest malls

Q Would 10-year-old Morné be proud Q What inspires you? of what you have accomplished?

Making a difference.

Yes – and I'm grateful for all my blessings.

Q The motto of your life would be?

Q If we gave you a one-way ticket, all-expenses-paid relocation to any part of the world, where would you go?

Go big or go home.

Q What are you hobbies and passions?

Mountain biking, music and nature.

I could go anywhere provided I can take my family with me.

Q What is your favourite travel

Q What fascinates you about life?

Anywhere in the bushveld.

The way humans interact with one another, and what drives them.

Q What do you like most about your work?

Deal making – finding a creative way to make things happen or to make a transaction work.

Q What one thing would people

destination in the world?

Q One place you’d like to visit?

Peru.

Q If we gave you a camel, would you keep it?

No thanks – I don’t smoke any more!

Q If you weren’t in the property

be surprised to know about you?

industry, what would you be doing for a living?

There are no surprises.

Working with animals in nature.

Q What are the main things you

Q What’s the best advice

Act with integrity, stick to your word and have the willingness to be wrong.

My own kids often say “relax and laugh a little”.

have learnt during your career?

About Morné Wilken Morné Wilken, CEO of real estate capital growth fund Attacq Limited with a net asset value of R6,4 billion (as at end 2015) and 80% owners of the iconic Mall of Africa, is a qualified industrial engineer who obtained his engineering honours degree at the University of Pretoria. Leading Attacq’s strategy to list on the JSE, Wilken has extensive experience in property development, property investment, property finance, corporate restructuring and acquisitions.

He spent 10 years at the Property Finance Division of First National Bank and Rand Merchant Bank (both divisions of FirstRand Bank Limited) where he excelled as a top deal-maker.

70

SOUTH AFRICAN PROPERTY REVIEW

a child has ever given you?

He then led the strategic roll-out and development of the Waterfall business estate in Midrand for Attacq before joining Attacq in 2009 as Chief Operating Officer. In 2011, he was appointed as Chief Executive Officer of Attacq and led the company listing on the Johannesburg Stock Exchange. He also serves as a non-executive director of international property company MAS. Attacq is a leading South African capital growth fund in the real estate sector, and has consistently delivered growth in capital to its investors through its strategic property holdings and developments. Attacq has a diverse investment portfolio with an excellent risk profile – its international

development footprint strengthens the Attacq diversity beyond its South African portfolio. The company pursues long-term sustainable capital growth through actively investing in and managing land, property development rights and investment properties, and benefiting from key long-term strategic relationships and alignments.

"Attacq is unique in its vision as the leading JSE-listed property capital growth fund and aims to deliver exceptional sustainable capital growth through creative local and international real estate developments and investments,” explains Wilken. “Attacq pursues its vision through its strategic drivers: develop, invest and grow.”

SAPOA events

011 028 8140 | www.turnerinc.co.za SOUTH AFRICAN PROPERTY REVIEW

51

off the wall

A quirkier way to escape Phil Ruimte stumbles across a strange-but-true use of offshore oil-rig escape pods – as a floating hotel in the Netherlands

D

Denis Oudendijk

72

SOUTH AFRICAN PROPERTY REVIEW

utch garbage artist Denis Oudendijk discovered these neat little oil-rig escape capsules – built in 1972 – while searching for an enclosed boat from which to do his research. He enjoyed them so much that he bought more and turned them into a floating hotel based in Scheveningen in the Netherlands city of Den Haag. For R980 per night, you can sleep in the comfort of a capsule hotel room, complete with fishing net and a hammock.

Oudendijk’s plan was to travel Europe – via water – looking for local waste to turn into something desirable and useful. A boat would have been the obvious choice, but he needed something that was enclosed and could be used functionally as a house as well as a laboratory.

Oudendijk purchased his first pod in 2003 as part of this research project. According to Inhabitat.com, he eventually found more survival capsules, and transformed his project into floating hotel rooms so other people could experience what he had experienced.

The view from low in the water is quite different than from up on a boat, and he wanted to share that with others.

There were a few pods to choose from.

Each pod – about 4,3m in diameter – had space for up to three people, and was kitted out with lights, a survival suitcase and sleeping bags. Guests could choose between simple hammocks or a normal bed.

Each pod also came with its own emergency chemical toilet.

The most luxurious option, based on the escape pod featured in the James Bond film The Spy Who Loved Me, was decked out with 1970s glamour and had everything needed to make “shaken, not stirred” martinis, a disco ball, comfortable rugs, a TV/DVD player and the complete set of James Bond movies to inspire espionagebased fantasies.

Further research into the pods has revealed that the unusual hotel, located in the Free Architecture Surf Terrain next to a surfers’ village and beach hostel on Scheveningen in Den Haag, closed its operations in 2014.

SAPOA events

APPRECIATING PROPERTY STRUCTURE

NAA GLOBAL WINNERS

Successful structure in property is more than civil engineering.

It’s transactional structuring.

Contact the international award winning property specialists today.

Appreciating Property Value Tel. 011 684 2707 I www.highstreetauctions.com A member of the National Auctioneers Association (NAA)

SOUTH AFRICAN PROPERTY REVIEW

51

1

2

SAPOA events

Proactive Quantity Surveying 3

4

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

Our track record speaks for itself.

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

QUANTITY SURVEYING

Gerhard de Leeuw

Akopo Africa

Nico Roos

Dr Corné de Leeuw

DISPUTE RESOLUTION

PROPERTY VALUATION

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

50

SOUTH AFRICAN PROPERTY REVIEW