South African Property Review November 2015 by SAPOA

South African Property Review

PROPERTY SOUTH AFRICAN

November 2015

REVIEW

EcoMobility Actively sustaining SA

Broll:

Facilities managers Eliminating risk, increasing convenience

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monthly cou n Our

Th e WOR

Property and facilities management

West Africa operations thriving

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November 2015

China: Walking on the Great Wall

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SAPOA events

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Y OUR WORLD MAD E S A FE

E XC E L L E R AT E FAC I L I T Y M A N AG E M E N T . E XC E L L E R AT E B R A N D M A N AG E M E N T . E XC E L L E R AT E U T I L I T I E S M A N AG E M E N T . J H I . J H I R E TA I L . J H I A D V I S O R Y . J H I C R E S

C E . I N T AFRICAN E R PA R K . S PA R K . S T E R I KREVIEW L E E N . E R A D I CO . K ATA N G A . C H AT T E L S . F R E S H . F I R S T T E C H N I C A L . S Y E N A P P R O P E R T I E S PROPERTY 64 E N F O RSOUTH

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contents

November 2015

PROPERTY SOUTH AFRICAN

Abland

REVIEW

South African Property Review

PROPERTY SOUTH AFRICAN

November 2015

REVIEW

EcoMobility Actively sustaining SA

Broll:

Facilities managers Eliminating risk, increasing convenience

series

Abreal

●

s●

monthly cou n Our

The WOR

Property and facilities management

West Africa operations thriving

ON THE COVER Name: Jabi Lake Mall Location: Abuja, Nigeria GLA: 25,986m² Expected Trading Date: November 2015 Developers: Actis Leasing agent: Broll Property Group (Pty) Ltd

by-country focu try-

November 2015

China: Walking on the Great Wall

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From the CEO From the Editor’s desk Industry news Education, training and development Legal update Construction agreement constrictions Planning and development Stitching the country together piece by piece EcoMobility Reshaping our city Cover story Growth inevitable as investors embrace the African market SAPOA Board When resilience pays off Theme leader Facilities management: the ABC of SA security Proﬁles Education Fortifying women managers in property Eye on the world China Event The built environment: a lucrative career choice SAPOA events Inaugural SAPOA KZN mountain bike challenge Feature Newtown Junction injects new life into Jo’burg’s inner city SAPOA events What’s on Upcoming events Frankly speaking In rhythm with Kevin Off the wall 3D printing gets bigger

Oilgro

FOR EDITORIAL ENQUIRIES, email nthabi@mpdps.com or mark@mpdps.com Published by SAPOA, Paddock View, Hunt’s End Office Park, 36 Wierda Road West, Wierda Valley, Sandton PO Box 78544, Sandton 2146 t: +27 (0)11 883 0679 f: +27 (0)11 883 0684 Editor in Chief Neil Gopal Editorial Advisor Jane Padayachee Managing Editor Mark Pettipher Editor Nthabi Nhlapo Copy Editor Ania Rokita Production Manager Dalene van Niekerk Designers Wade Hunkin, Eugene Jonck Sales Janine Ramey e: janine@mpdps.com; Riëtte Stevens e: sales@sapoa.org.za Finance Susan du Toit Contributors Anne Schauffer, Eugenia Makgabo, Lekgolo Mayatula, Maud Nale, Sonqoba Kunene Photographers Jabu Nkosi, Mark Pettipher, Natalie Bezuidenhout, Val Adamson, Xavier Saer DISCLAIMER: The publisher and editor of this magazine give no warranties, guarantees or assurances and make no representations regarding any goods or services advertised within this edition. Copyright South African Property Owners’ Association (SAPOA). All rights reserved. No portion of this publication may be reproduced in any form without prior written consent from SAPOA.

P R O P E R T Y

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

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e: llewellyn@rsalitho.co.za

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from the CEO

Reshaping cities for ecomobility: change the way you move The EcoMobility World Festival 2015 took place in Sandton, a city that has become synonymous with entrepreneurship and risk-taking in the commercial environment

he objectives of the City of Johannesburg for the month-long EcoMobility Festival was to encourage behavioural change through a paradigm shift in thinking by showing that car-free methods of transport are feasible and have a positive impact on commuters’ health, the city and the environment. Johannesburg’s Executive Mayor Mpho Parks Tau says the festival demonstrates to the world that an ecomobile future is possible and that public transport, walking and cycling can be accessible, safe and attractive. The City of Johannesburg hosted weeklong dialogues in the city around the topic of ecomobility. Experts from various parts of the world presented case studies on how changes in the urban form affect the mobility situation in the cities. In the keynote address entitled “Reshaping Cities for EcoMobility: Strategies and Tactics”, Yondela Silimela, Executive Director of Development Planning at City of Johannesburg, highlighted short-term interventions by the municipality that have been put together on the back of the long-term plan. The reality, according to Silimela, is that many South Africans travel long distances to get from home to work, and the need for a transit-oriented system that enhances connectivity between various areas in the city is needed. This could be a potential gamechanger that provides a solution to a paradigm that perpetuates long-distance commuting.

Silimela further highlighted the steps already being taken by the municipality to provide citizens of the “world-class African city” with efficient and accessible public transport. The Corridors of Freedom is a broad vision to move away from the city’s apartheid past and to create cohesive and integrated communities based on modern spatial planning. Future development will be focused along well-planned transport arteries that connect high-activity nodes. Clinics, government services, police stations and schools will be located in these nodes, together with parks and green spaces, retail opportunities and medium-density residential development. The bulk of facilities and services will be within walking or cycling distances or reachable through public transport, which will reduce the need to use private vehicles. Rea Vaya is the city’s Bus Rapid Transit system, rolled out since 2007. The completed system will cover 330 kilometres and allow more than 80% of Jo’burgers to take a bus rather than rely on private transport. Two trunk routes are already operational; construction on the route linking the Johannesburg CBD with the northern suburbs, including Sandton, is under way. More than 40 000 passengers travel on the Rea Vaya network every day. The city’s Metrobus fleet is being converted to run on both compressed natural gas and diesel. A new fleet of 70 ecofriendly buses was introduced in July 2015. Transport is the source of 73% of all greenhouse gas emissions in Johannesburg. By switching to low-emission fuel for the buses and converting a large portion of its vehicle fleet, the city is taking an important step towards a low-carbon economy, as envisaged in its 2040 Growth and Development Strategy. The city has started with the roll-out of highquality cycling and pedestrian infrastructure. About five kilometres of dedicated cycle lanes are already in place in Orlando. Similar safe facilities are almost complete between Ellis Park and Sophiatown along a “university corridor” that runs past the University of Johannesburg and the Witwatersrand. Future road and transport planning in Orange Farm and Ivory Park all include the addition of cycle lanes and upgraded pedestrian sidewalks, while a

20-kilometre network of cycle routes has been designed for Rosebank and Sandton. Public transport interchanges are being built at strategic locations where commuters can switch from the Gautrain network to passenger rail, buses, walking and cycling. Seamless integration between different modes will encourage residents to switch to public transport and away from private vehicle use. But is ecomobility a viable and sustainable option for the foreseeable future? Decongesting our cities in general and the Sandton CBD in particular is not only possible but essential if we want to continue to move freely in urban environments. If these systems of ecomobility are properly integrated with thinking and action in the field of spatial planning, they can do so much more. They can provide the scaffolding for reforming our cities, so that we can not only reduce our carbon emissions but also improve the vibrancy of our local economies by densifying development along pedestrian, cycling and public transport transit systems. The City of Johannesburg has taken a firm decision to move towards a greener future. At the core of this shift is the provision of public infrastructure to make public transport, walking and cycling easier, safer and more accessible. The EcoMobility World Festival 2015 offers hope for Sandton because it will open the window on an alternative future where public transport takes priority over private vehicles; where people swap their car keys for bicycle helmets; and where streets become true public spaces again, to be enjoyed by all. It will be another opportunity for this important economic node to provide leadership and show the way to a sustainable future. So there is really something we can do if we can integrate our different activities in a much more meaningful way, and that is the beginning of something really exciting in Johannesburg, with a whole diversity of urban benefits. What happened in Sandton in October provided direction to global efforts to promote ecomobility and will point the way towards the future of transport in South Africa in the years to come. Neil Gopal, CEO

SOUTH AFRICAN PROPERTY REVIEW

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SAPOA events 14207

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SAPOA events

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from the Editor’s desk

Security: an imperative resource In addition to daily headaches of managing a proﬁtable business in an unstable economic environment, security threats placed on businesses by the country’s crime rate create additional challenges

outh African business owners are concerned about rising energy costs, exchange rate fluctuations, skills shortages, economic uncertainty and the ease of doing business in the country. The crime rate is another addition to this list of frustrations, and with the festive season approaching, security becomes a particularly pressing matter. The country is fast turning red and white, with Santas gracing the corridors of malls and shopping centres across the country as South Africans prepare themselves for the annual holiday retail splurge. This is an exciting time for consumers but it is also an opportune time for criminal elements to make their presence felt, especially in areas where large quantities of cash are handled. In the recently released crime rate statistics for 2014/2015, it is reported that robberies have increased in the country – as evidenced by daily reports in news bulletins. More worrying for the business sector is that, daily, South Africa experiences about 53 business robberies. In the last year, 19 170 robberies were reported, a 3,2% increase year on year. This is a crime that has been on the increase steadily over the last decade – the number of business robberies in 2014/2015 is four times higher than it was in 2004/2005.

Truck robberies have increased by almost 30% year on year from 991 to an astounding 1 279 – 24 robberies for each week of the year. When trucks are hijacked, the ripple effect of the incident has a bigger cost implication for the business than just the loss of the truck and cargo. Where a business is unfortunate enough to experience regular attacks, client confidence will be lost, leading to a very long process of attempting to win back consumer trust. In a market that’s saturated with service providers, when clients leave, they rarely come back because there is always another option at arm’s length. The good news arising from the crime stats is that after seven years of consecutive increases, cash-in-transit heists have actually decreased from 145 in the previous year to 119. Bank robberies have seen a similar decline, from 21 to 17 this year. These numbers may be encouraging – but for the 17 banks that were robbed there is little comfort. Several factors are quoted as the reason for the high crime rate in the country. In a recent article, Dr Chandre Gould of the Institute for Security Studies says that “We have increasing poverty and inequality, and have failed as a country to secure confidence in – and respect for – the rule of law.” The private sector is in a good position to assist in helping to secure a certain level of safety by employing the best security companies to manage risks, thus ensuring that when clients visit their places of business, they feel safe and at ease. As much as all other resources are pivotal to the running of a sustainable business, the security resource is one that will assist in bringing more (and happier) customers to business districts and centres. It is quite apparent that with increased feet come increased risks; therefore security services and the management thereof is a high priority. Until next time, Nthabi Nhlapo, Editor SOUTH AFRICAN PROPERTY REVIEW

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2015/10/19 9:27 AM

industry news

Gold for facilities excellence

roll Facilities Management (FM) received Gold for Facilities Excellence in the 2015 PMR Golden Arrow Awards. “We are honoured to receive this award,” says Rowland Gurnell, Chief Operations Officer of FM at Broll. “We would like to sincerely thank the PMR Africa Awards, the South African Facilities Management Association, our clients, industry peers and nominees in the competition.” Gurnell says behind the success of Broll FM is the dedicated team that sees to all the clients’ needs. Without this team, the accolade would not have been possible. FM continues to be a sought-after specialist service across the continent because it allows property owners to focus on what they do best, leaving management of non-core support and associated services to the property specialists, he explains. Broll FM, a division of Broll Property Group, manages about 12million square metres of properties within the Group. The purpose of the PMR Africa Awards is to enhance excellence and set a benchmark in the industry. The awards are indicators of a company or division’s competencies, and are the culmination of a research process whereby companies and institutions are rated based on respondents’ perceptions, with a strong focus on evaluating and measuring customer service and customer satisfaction. Gurnell points out that the survey asked respondents questions Rowland Gurnell, Broll about the way in which the company communicated with clients, the quality of service received, staff competence and credibility. “Broll FM ticking favourably all the boxes of the survey shows that our clients have confidence in both our service offering and ability to overdeliver on what we promise,” he says. “This award will encourage our teams to continue to exceed customer service while keeping abreast of FM trends locally and globally.”

The Broll FM Team (from left): Chris Aslett, Director: Technical; Janine Faustino: Sales and Key Account Manager; Christine Grobler: PA/Operations Management Administrator; Joseph Murdock: Technical Manager; John Veldon: Project Manager

Architectural firm DHK is awarded the contract for the design of The Centenary

endai Development South Africa has announced its maiden luxury residential project, The Centenary, which is to be developed as part of Modderfontein New Town. Over the next 15 to 20 years, Zendai plans to transform the 1 600 hectares of land it acquired in 2013 into a smart and sustainable metropolis. The Centenary covers an area of approximately 12 hectares and will be developed in phases. Construction of the first phase is intended to commence during the first quarter of 2016, with completion planned for early 2017. Well-known architectural firm DHK Architects was awarded the contract for the design of The Centenary. The practice recently won three Innovative Excellence in Design Awards (a SAPOA award), and has received

5-Star Green Star Rating for two of its office-block designs. “This is the beginning and we are excited,” said Zendai Development South Africa CEO Anthony Diepenbroek, speaking at the launch. “Our goal with The Centenary is to provide unique, highquality residential living spaces that will set the standard for Modderfontein New Town in terms of convenience, connectivity, sustainability and luxury. Surrounded by heritage buildings that date back to the 19th century, and within walking distance of the modernity of high-speed travel, The Centenary is set to be Johannesburg’s new enviable address. “The uniqueness of The Centenary is that it complements Modderfontein’s rich heritage while displaying the energy and excitement of the new town.”

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industry news

Major upgrade for Soweto private hospital

C Hugh Scott-Barrett, CEO

The JSE has granted approval to UK’s Capital & Regional for a secondary listing

linix Health Group has announced a R230-million upgrade to Clinix Lesedi Private Hospital, the first black-owned private hospital in Soweto. It will also be renamed to Dr SK Matseke Memorial Hospital, as a tribute to the late Dr Solomon Kgokgophana Matseke, teacher, administrator, writer and scholar. The upgrade will commence immediately. Once completed, it will include a state-of-the-art 275-bed hospital with seven new operating theatres; a 20-bed ICU

facility; a 14-bed neonatal ICU; a seven-bed paediatric ICU; and an 11-bed maternity ward. A radiology department, casualty, pharmacy, pathology lab, renal facilities, nuclear medicine department, doctors’ rooms, administration, kitchen and reception areas, and a new road entrance will also be constructed. Architects Geyser-Hahn and construction company Raubex have been appointed to carry out the upgrades,

apital & Regional, a UK focused specialist property real estate investment trust (REIT) with a £1-billion portfolio of in-town dominant community retail and leisure centres in the UK, has been granted approval for a secondary listing on the JSE. Capital & Regional is a leading owner of dominant town centre community shopping centres in the UK. The group’s portfolio comprises six wholly owned shopping centres, collectively known as the mall portfolio, and 20% and 50% joint venture interests in two further centres located in the towns of Redditch and Ipswich. The JSE granted approval to Capital & Regional for a secondary listing of all of its issued ordinary shares on the Main Board of the JSE in the “Retail REITs” sector. This will be a foreign inward listing. Capital & Regional has its primary listing on the London Stock Exchange. At the date of this announcement, the market capitalisation of the company was £469,5-million. “The listing should improve both the depth and spread of the shareholder base and the liquidity and tradability of the company’s shares, while enhancing potential funding options to pursue future growth and investment opportunities,” says Capital & Regional Chief Executive Officer Hugh Scott-Barrett.

Dr KOP Peter Matseke, CEO of Clinix Health Group; Neria Matseke, wife of the late Dr SK Matseke; Dr Ayanda Ntsaluba, Chairperson of the Clinix Health Group; and Andrew Wilson, Hospital Manager at Dr SK Matseke Memorial Hospital

ANNIVERSARY CONVENTION

& PROPERTY EXHIBITION

21 - 23 June 2016 Sandton Convention Centre Our 50th anniversary validates the credibility of SAPOA and proves our longevity, staying power and success as a leading Property Industry body. We will be celebrating and promoting our 50th anniversary in 2016 by redeﬁning our organization and thanking members for decades of patronage. The Convention will bring together the most inﬂuential national and international property professionals, all under one roof. SAPOA will select the most relevant, thought-provoking pundits to share their sometimes controversial, yet highly respectable opinions, expertise and knowledge. Be part of this experience! www.sapoa.org.za

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which will also include a R60million investment in technology. Speaking at the launch, Dr Ayanda Ntsaluba, Chairman of the Clinix Health Group Board, said, “We are incredibly proud of the legacy we have created. Since Clinix Health Group was first established in 1992 with a clear purpose to bring private healthcare to previously disadvantaged communities, our objective has been to ensure that our hospitals remain cutting-edge, efficient and relevant to the needs of the communities. These upgrades will ensure we can meet and exceed these expectations for the people we serve. Along with Lesedi, we are investing an additional R32,5-million in upgrading three of our other properties, Clinix Naledi-Nkanyezi, Clinix Tshepo-Themba and Botshelong-Empilweni. We just completed the upgrades at Clinix Naledi-Nkanyezi and Clinix Tshepo-Themba, and work at Clinix Botshelong-Empilweni will commence later this month to ensure all of our hospitals offer state-of-the-art facilities and services.”

2015/10/14 12:14 PM

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2015/10/19 9:30 AM

industry news Cornubia makes space for education

Josia Lodi of the Gauteng Provincial Government

aving their school moved to brandnew premises right on their doorstep was a welcome change for Blackburn Primary School learners living in the subsidised housing development of Cornubia, north of Umhlanga Ridge. Earlier this year, the 52-year-old school was moved from a building located on Tongaat Hulett’s sugarcane agricultural estate of Blackburn to new premises in Cornubia. Cornubia is a ground-breaking joint venture partnership between the government and Tongaat Hulett. Bongani Gumede, Corporate Director

of Tongaat Hulett Developments, said the old school facilities and agriculture estate in Blackburn were being converted into a Mixed Incubator, providing a training facility for various social development and economic participation programmes. “We continue to pursue zero unemployment,” Gumede said. “We have identified a need to link skills development to the phases of development, i.e. construction phase demand for specific trades such as bricklaying, electrical work, plumbing and forklift driving so they will be equipped to apply for jobs as they emerge.”

Gauteng Spatial Development Framework

Best Alternative Asset Manager the Year Award

APOA recently held an interactive workshop on the Gauteng Spatial Development Framework. Erky Wood from GAPP Architects & Urban Designers presented on the principles that guided the 2011 Gauteng Spatial Development Framework, and Josiah Lodi from the Gauteng Planning Division at the office of the Premier presented on the review process of the Gauteng Spatial Development Framework. SAPOA is committed to continue engaging with the Gauteng province (and other provinces) about their development frameworks. To endorse this, SAPOA is a member of the GSDF review reference group, and will also be facilitating stakeholder consultation sessions in this regard.

Erky Wood of GAPP Architects & Urban Designers

TANLIB was proud when one of their own, Alex Phakathi, won the Best Alternative Asset Manager of the Year Award of at the Association of Black Securities & Investment Professionals (ABSIP) Financial Services Sector Awards, which were held recently. ABSIP is widely recognised as an influential force in the transformation of the financial sector. Annually, the association calls for nominees from the industry and acknowledges top achievers. To be considered for an award, contenders must excel in their area of expertise over the past year in various segments of the financial services sector. “Nominated for the Alternative Equity Asset Manager of the Year Category, Alex Phakathi emerged victorious out of several strong contenders in his category,” says Head of STANLIB’s Direct Property Investment Franchise Amelia Beattie. “In his role as Liberty Property Portfolio Fund Manager for STANLIB, Alex is responsible for managing a large asset management and development team, which in turn manages Liberty’s Property Portfolio (LPP) as the Group’s Asset Management Customer Facing Units.” Before joining STANLIB in January 2014, Phakathi was the CEO of Fountainhead Property Trust, a listed property unit trust. He was previously a member of the executive committee of Redefine Properties, a real estate investment trust (REIT) listed on the JSE, responsible for acquisitions and disposals. From 2010, he served as Head of Property Strategy and Planning at Barclays Africa but before that, he established himself as a senior industry leader as the Managing Director at Pareto Limited. Phakathi is a Past President of SAPOA and serves on the Board and Council of the Property Sector Charter Council. “Congratulations to Alex on bringing home the award – we are very proud!” Beattie says.

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CHARLIE BRAVO #446-15

SAPOA events

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education, training and development

SAPOA’s Introductory Programme now on e-learning platform In keeping up with new educational trends, SAPOA has developed an e-learning training method to manage the delivery of training and training materials to various audience groups, who will be able to access it on their desktops, tablets and mobile devices

A certificate of competence for delegates who successfully comply with all the assessment criteria or a certificate of attendance will be issued upon successful completion of the training programme by the University of Johannesburg

he very popular SAPOA Introduction to Commercial Property Programme (ICPP) is now available on the e-learning platform. The ICPP joins the Essential Commercial Property Programme, which has been running on the e-learning platform for some time. By not compromising the standards of education, the ICPP e-learning platform will be making a difference by introducing commercial property skills to people who under normal circumstances would not have the opportunity to develop their knowledge and skills. We trust that the ICPP e-learning will also be welcomed by younger generations as we develop their skills in a manner they not only understand but also prefer and feel comfortable with.

ICPP e-learning programme Delegates will be able to take part in the ICPP (eight modules over a three-month period) on the e-learning platform with online assessment and certification at the end of the three-month period by the University of Johannesburg. The ICPP is focused on the commercial and industrial property industry. Our target market of delegates are people who have no experience or formal knowledge of the commercial or industrial property industry. The following topics are covered in the modules:

●● Module 1: Glossary of South African property terms ●● Module 2: Legislative environment that impacts on the property market ●● Module 3: Trends in the South African property market ●● Module 4: Role players within the property industry ●● Module 5: General principles of contract law ●● Module 6: General principles of immovable property law ●● Module 7: Building plans, subdivisions and consolidations ●● Module 8: The principles of marketing property

E-Learning benefits to SAPOA members ●● Training content is available anywhere at any time, and optimised for computers, mobile phones and tablets. ●● Employees have three months to complete the programme, and are not out of the office for three/five days at a time. ●● The educational training programme cost is reduced by almost 50%, making it more affordable for our corporate members and for individuals. ●● Incidental costs such as travelling, accommodation and meals are eliminated.

The e-learning platform and training format The training format works as follows: first, delegates register with SAPOA, who will invoice the delegates.

Once the payment has been received, Hypenica will send delegates a username, login details and a password to access the E-Learning Programme. The delegates will have access to the programme for three months (12 weeks) – they must complete the programme in that time. Once the delegates are registered, access to the chat room will be granted. This will enable the assessor and/or lecturer to communicate with the delegates and the delegates to communicate with each other. In the event of a student have difficulty in mastering the training content, this will also be the method of communicating with the assessor and/or lecturer to obtain clarity. The ICPP e-learning format of training delivery is by means of eight videobased training modules. Each delegate will receive an electronic student course manual, which contains the training material on which the videos are also based. After each module there will be a test or assignment that must be successfully completed before moving on to the next module. Once all modules are completed, delegates will complete an online examination.

Assessment, moderation and certification Modular assessments will be made as the programme progresses. A final assessment

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education, training and development will be in the form of a test but will be optional. A certificate of competence for delegates who successfully comply with all the assessment criteria or a certificate of attendance will be issued upon successful completion of the training programme by the University of Johannesburg. The university will also act as a moderating body in terms of its policies and procedures.

SAPOA and University of the Free State renew and expand their collaboration on Short Learning Programmes

Accreditation

The University of Johannesburg is a comprehensive accredited academic institution. As required by the Higher Education Act, the university is registered with the South African Department of Education as a public higher-education provider, and its qualifications are accredited by the Council on Higher Education and recognised by the South African Qualifications Authority (SAQA).

SAPOA and the University of the Free State have been in collaboration in the presentation of Short Learning Programmes (SLPs) for the past decade n future, the SLPs will be â&#x20AC;&#x2030;administered by the University of the Free State Business School on behalf of the Faculty of Natural and Agricultural Sciences and the Quantity Surveying and Construction Management Department. The same popular SAPOA programmes will be offered: 1. Facilities Management Programme (FMP) 2. Building Construction Technology Programme (BCTP) 3. Immovable Asset

For more information and to register please contact: Mafonti Morobi SAPOA Training Coordinator t: +27 (0)11 883 0679 e: hr-education@sapoa.org.za To register or for enquiries, please contact: Banele Senatla Course Coordinator t: +27 (0)012 434 2630

Management Programme (IAMP) 4. Intensive Project Management Programme (IPMP) 5. Introduction to Commercial Property Programme (ICPP) 6. Essential Commercial Property Programme (ECPP)

e: banele.senatla@ce.up.ac.za

This collaboration with the University of the Free State Business School will provide opportunities for more SLPs and for management development e-learning programmes.

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legal update

Construction agreement constrictions An Agreement of Sale in conjunction with a Construction Agreement not only mitigates risks for parties but aligns expectations and obligations, and creates room for clarity.

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

This documentation is drafted with the intention to include all terms and conditions agreed upon by the buyer and the seller. Once signatures have been afﬁxed to the Agreement of Sale, hereinafter referred to as the Agreement, ownership and possession of property may be transferred. This process not only mitigates risks for parties but aligns expectations and obligations 12

n Agreement of Sale in conjunction with a Construction Agreement is essential when property is being developed and purchased. This documentation is drafted with the intention of including all terms and conditions agreed upon by the buyer and seller. Once signatures have been affixed to the Agreement of Sale, hereinafter referred to as the Agreement, ownership and possession of property may be transferred. This process not only mitigates risks for parties but aligns expectations and obligations. In the event that unforeseen hurdles are met, the Agreement allows room for clarity. The above-mentioned notion was discussed in the case of Bray, Michael Geoffrey v Grand Aviation (Pty) Ltd and Another. The following transpired. Mr Michael Geoffrey Bray, hereinafter referred to as the Plaintiff, launched an application against Grand Aviation (Pty) Ltd, hereinafter referred to as the Defendant.

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.

The Plaintiff sought an order for the specific performance in which he compelled the Defendant to build a dwelling on an erf as per the terms in the Agreement. The Defendant, who is a developer, proceeded to oppose the application on the grounds that he did not sign the

In the months that ensued, discussions were held between the Plaintiff and the Defendant in respect of the alterations that the Plaintiff wanted to make to his Unit E. A revised quote was sent to the Defendant which incorporated the alterations sought by the Plaintiff. There were two items that were not quoted, and the Plaintiff was asked to sign the quote and fax them back to the Defendant Agreement, and therefore there was no compliance with Section 2(1) of the Alienation of Land Act of 1981 (Act No 68 of 1981). He further contended that, based on the lack of compliance, he had a right to validly cancel the Agreement which he exercised.

The Agreement describes a “Unit E” dwelling. The Defendant provided the Plaintiff with a building plan for the type of unit that formed part of the Plaintiff ’s application, for his bond and building loan. The Plaintiff obtained a bond over the erf and a building loan for the construction of the building. In the months that ensued, discussions were held between the Plaintiff and the Defendant in respect of the alterations that the Plaintiff wanted to make to his Unit E. A revised quote was sent to the Defendant, which incorporated the alterations sought by the Plaintiff. There were two items that were not quoted, and the Plaintiff was asked to sign the quote and fax it back to the Defendant. This was not done by the Plaintiff as per request from the Defendant. After receiving the email from the Defendant, the Plaintiff signed the quote and initialled the altered floor plan. He averred that he could not produce the transmission of the document sent to the Defendant, but maintained it had been done. Further, the Plaintiff received an email from the Defendant in which he attached detailed plans of the unit, incorporating the alterations sought. The Plaintiff responded to the Defendant on the same day and same was positive. The Plaintiff received the revised quote for the alterations, and it was incorporated into the Addendum. The quote was similar to the initial quote given by the Defendant in respect of the items quoted as well as the description and cost. The only difference between the initial quote and the revised quote was that the latter included

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legal update a new item 24, which was a “modification fee”. The modification fee became the subject of much contention between the parties. The Plaintiff advised that he was told the fees were for the delays in the development. This was denied by the Defendant, who alleged that it was for the “basket of finishes” to be applied to the Plaintiff ’s unit and that this was communicated to the Plaintiff. It was found that the modification fee was indeed to cover the increased building costs. The modification fee was regarded as unacceptable by the Plaintiff and he was therefore not willing to pay it. This was communicated to the Defendant. However, he could not recall to whom it was communicated. He averred that it must have been an oral agreement. The Defendant disputed this assertion. The Defendant relied on the notes that were written on a file. The indication was that the Plaintiff was prepared to pay the modification fee as it was sent earlier. The Plaintiff did not admit on affidavit that he had been prepared to pay the modification fee. Thus it was not disputed that the Plaintiff did not sign the addendum to the agreement. Subsequent to the aforementioned course of events there was no communication for a period of eight months between the Defendant and the Plaintiff. The Plaintiff then received a letter from the Defendant, which stated he had cancelled the Agreement.

Considerations ● The above-mentioned Agreement has two components that are distinct. One relates to the sale of land and the other to the construction of the dwelling on the land. ● It is only for the Contract of Sale that the signature is required.

● The Plaintiff signed the Agreement and this was regarded as evidence that he intended signing on the terms set out in accordance with the Agreement.

was entitled before commencement of the construction to demand the guarantee for the full amount for the building costs. ● Of importance is the fact that the Plaintiff was entitled to finance the construction of the property by means of a mortgage bond and the building loan in accordance with the Agreement. The security furnished by the Defendant was acceptable in accordance with the meaning of the Deed of Sale.

The modification fee became the subject of much contention between the parties. The Plaintiff advised that he was told the fees Judgment were for the delays The judge held the following: parties were in in the development. ● The agreement regarding the obligation to build. This was denied ● Irrespective of the fact by the Defendant, that the parties were in disagreement regarding who alleged it was alterations, the Defendant for the “basket was obliged to build the unit in accordance with of finishes” to the Agreement. be applied to the ● The Defendant was ordered to construct Plaintiff’s unit the standard Type E unit and that this was on the Plaintiff ’s property in terms of the Agreement. communicated ● The Defendant, however, to the Plaintiff. was not required to attend to the alterations It was found that as there was no agreement the modification regarding the alterations to the unit based on the fee was indeed to fact that there were items cover the increased which were not included in the quote and it could building costs ● Further, the Defendant took an interest in effecting alterations to the property subject to certain stipulations being met. He reserved the right to build the unit in accordance with the Agreement. ● The Parties agreed to and signed the Agreement, and the Plaintiff confirmed that same was done in accordance with the first quote. ● The Defendant was of the view that he cancelled the Agreement, and therefore

The Defendant was ordered to construct the standard Type E unit on the Plaintiff’s property in terms of the Agreement. The Defendant, however, was not required to attend to the alterations as there was no agreement regarding the alterations to the unit based on the fact that there were items which were not included on the quote and it could not be said that there was consensus between the parties

not be said that there was consensus between the parties. ● The Defendant was ordered to pay the costs of the action and the application that preceded it. BRAY MICHAEL GEOFFREY V GRAND AVIATION (PTY) LTD AND ANOTHER Case No: 07/28371 Judgment handed down: 18 May 2015

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planning and development

Stitching the country together piece by piece Finding solutions for the development and planning of South Africa requires forward thinking and detailed planning but it is a process well worth undertaking

S Lekgolo Mayatula is SAPOA’s Planning and Development Manager

According to the Southafrica.info website, South Africa is the world’s 26thlargest country by population and 24thlargest by land area. The country is oneeighth the size of the United States, just over one-third the size of the European Union, twice the size of France and nearly four times the size of Germany. South Africa is roughly the size of Niger, Angola or Colombia 14

outh Africa covers a geographical area of 1 219 090km² and is divided into nine provinces: the Eastern Cape, which covers an area of 168 966km²; Gauteng, which covers an area of 16 548km²; Mpumalanga, which covers an area of 76 495km²; KwaZuluNatal, which covers an area of 94 361km²; Northern Cape, which covers an area of 372 889km²; Limpopo, which covers an area of 125 755 km²; North West, which covers an area of 106 512km²; Free State, which covers an area of 129 825km²; and the Western Cape, which covers an area of 129 462km². According to the Southafrica. info website, South Africa is the world’s 26th-largest country by population and 24th-largest by land area. The country is oneeighth the size of the United States, just over one-third the size of the European Union, twice the size of France and nearly four times the size of Germany. South Africa is roughly the size of Niger, Angola or Colombia. According to the National Geographic website (Travel.nationalgeographic.com), South Africa is Africa’s largest and most developed economy. It is the world’s 26th-largest economy by gross domestic product, has the 33rd-largest labour force, is the 19th-largest global producer of electricity, has the 18th-largest road network in the world, and has the world’s 15th-longest network of railway tracks. According to Statistics South Africa, in 2014 our population was estimated at 54-million, of which approximately 51% are women.

The Gauteng province accommodates the largest share of the population with approximately 12,91million people, KwaZulu-Natal accommodates approximately 10,69-million people, and approximately 1,17-million people reside in the Northern Cape (which is the smallest province with the smallest share of the South African population). Another point for consideration is that about 30% of the population is aged younger than 15 years, and approximately 8,4% is 60 years and older. Migration is one of the important demographic processes that shape the age structure and provincial population distribution processes. As it stands, in the period between 2011 and 2016 it is estimated that about 241 760 people will migrate from the Eastern Cape, Limpopo is estimated to experience an out-migration of nearly 303 100 people, and the Gauteng and Western Cape provinces are estimated to experience an inflow of migrants of approximately 1 106 400 and 344 830 respectively. From a racial perspective, black Africans constitute 80% of the total population (with approximately 43,33-million people), the coloured population is estimated at 4,77-million people, the white population is estimated at 4,55-million people, and the Indian/Asian population are estimated at 1,34-million people.

The information provided above is just a small fragment of what needs to be taken into consideration when finding solutions that will benefit the development and growth path of South Africa in order to create our future – a future that works. The challenge will most likely be the way we go about finding solutions that will eventually lead to the future that we envision as articulated in the National Development Plan 2030, various governmental strategic documentation and the Spatial Planning Land Use and Management Act (SPLUMA). The answer lies in development of precise and well-coordinated spatial development plans and spatial development frameworks. In 2011, the Gauteng Spatial Development Framework (GSDF) was approved by the executive council as the province’s official spatial development framework. However, a number of challenges inhibited the GSDF from achieving the desired spatial planning results. These included: ● Selective alignment by provincial sector departments to the GSDF; ● Insufficient growth management approaches upon rescindment of the Gauteng Urban Edge; ● The scale of spatial direction in the GSDF perceived as being too broad; ● The roll-out of the GSDF models and geographic information systems (GIS) capabilities not being operational and

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substantially weakening the implementation of the GSDF; Urban structuring initiatives not being managed centrally or specifically advanced by a relevant sphere of government and limiting spatial transformation advancement by the GSDF; The GSDF not shaping the provincial, local or agency capital budgets in order to advance spatial transformation agenda; Limited human capacity of spatial planning and GIS specialists in the Development Planning Chief Directorate negatively impacting the implementation process; The required approval not in line with the regulatory frameworks that did not exist prior to SPLUMA.

Gauteng is currently in the processes of reviewing its spatial development framework with the intention of ensuring that it is compliant with the political mandate as prescribed in the National Development Plan and the Gauteng Pillars of Radical Transformation. New policy directives such as the 25-year Gauteng Integrated Transport Master Plan, the Gauteng Provincial Environmental Management Framework, the Gauteng Employment Growth and Development Strategy, the Gauteng Growth Management Perspective, the Concept Paper: Gauteng Spatial Perspective 2030, Municipal Growth Development Strategies, Integrated Development Plans and spatial development frameworks are just some of the documentation that will be taken into consideration during this review process. The process will take into consideration SPLUMA requirements as described in sections 15, 16 and 17 of the Act, and the Gauteng city-region, which is an integrated cluster

of cities, towns and urban nodes will be used as the base map to unpack the demographic and socioeconomic human settlements infrastructure, transportation and spatial

Migration is one of the important demographic processes that shape the age structure and provincial population distribution processes. As it stands, in the period between 2011 and 2016 it is estimated that approximately 241 760 people will migrate from the Eastern Cape, Limpopo is estimated to experience an outmigration of nearly 303 100 people, and Gauteng and the Western Cape are estimated to experience an inﬂow of migrants of approximately 1 106 400 and 344 830 respectively

It should be noted that while the province is in the process of reviewing the current GSDF, municipalities are also at various stages of reviewing their respective municipal spatial development frameworks. This creates an opportunity to facilitate alignment and an agreed spatial vision; however, many challenges could arise should these processes not be appropriately coordinated and integrated. The Gauteng province aims to finish the review process by March 2016, and SAPOA has been invited to participate as a member of the GSDF reference group. SAPOA members are therefore urged to actively engage with the information to be distributed by the office of the Premier on the GSDF as this will strengthen the relationship between the two organisations, and will ensure that the voice of the commercial and industrial property sector is recognised.

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profiles of the province, and formulate a strategic framework that will facilitate and guide development and investment in the province.

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SAPOA events

Development Management Project Management Quantity Surveying Leasing Tenant Co-ordination

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Illungile Consulting Services – (012) 346 4744 – www.Illungile.co.za – Retail – Commercial Mixed – Industrial – Private Sector SOUTH AFRICAN PROPERTY REVIEW

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EcoMobili-

EcoMobility ty

RESHAPING OUR CITY

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EcoMobility The festival

A movement with purpose The much-anticipated EcoMobility Festival held in Sandton last month was a resounding success as citizens embraced the efforts of the City of Johannesburg

Contrary to popular expectation, the event did not cause much traffic disruption; instead, driving, walking and cycling through Sandton, Africa’s richest square mile, became easier as traffic was decongested and the environment made more vibrant than usual. In a bold and hugely successful approach to change urban mobility patterns, the City of Jo’burg gave citizens a preview of a future urban transport system where walking, cycling and public transport become the preferred transport modes of choice. The event was organised in conjunction with the ICLEI, the world’s leading network of more than 1 000 cities, towns and metropolises committed to building a sustainable future by

helping members make their cities and regions sustainable, low-carbon, resilient, ecomobile, biodiverse, resource-efficient and productive, healthy and happy, with a green economy and smart infrastructure. The organisation impacts more than 20% of the world’s urban population. During the month-long EcoMobility World Festival, streets in Sandton’s central business district (CBD) were turned into public spaces where people can move with ecomobile means of transport: pedestrians, cyclists and public transport were given priority. With an estimated 75 000 vehicles entering this CBD every morning, it was widely believed that the partially closed streets could potentially lead to traffic problems. Evidently this was not the case as the new

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bicycle lanes, a public transport loop around the CBD and a park-and-ride system offered as alternative modes of transport proved to be successful. “With more offices, hotels and shopping capacity being built, Sandton will eventually become a huge parking lot,” says Executive Mayor Parks Tau. “Ever-worsening congestion will hurt the county’s economy. EcoMobility forms a key part of the city’s action on climate change, air pollution and social inequalities. “Our aim is to encourage participation and creative thinking around the issue of EcoMobility and show that Jo’burg is determined to combat climate change.” Tau is also set to deliver the global cities’ message on EcoMobility and climate-smart cities to the United Nations

Climate Change Conference in Paris in December this year. The initiative, which rolled out in the format of a festival, received strong support from the public and private sector. “The EcoMobility Festival is the moment

FACTS

Five technical papers were published, which informed the discussion during the EcoMobility Dialogues and summed up the latest policy developments in the fields of transport and climate change, urban freight, urban health, road safety, soot-free buses and sustainable transport.

to showcase alternative modes of transport,” said Gauteng Premier David Makhura. “Social integration and social cohesion are at the centre of that. We need to build our cities and MAIN IMAGE Among the events organised for the festival was a cycle challenge RIGHT Residents and visitors of the Sandton CBD and surrounding areas were treated to a street parade TOP RIGHT Cycling and alternative modes of commuting were promoted during the EcoMobility festival

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EcoMobility

The city is working human settlements in a way that it easily promotes people towards an urban interacting, walking and cycling.” design with liveable Addressing congestion and accessible Mayor Tau conceded the fact that nodes that are there was some discomfort on Sandton roads since road closures, characterised by an but said this is an inevitable price integrated transport we all have to pay to usher in a new and sustainable era of alternative system, residential modes of transport to reduce densiﬁcation along congestion, carbon emissions and the overall negative economic corridors, a impact these have on the city. “As the city’s economic permeable hub and Africa’s richest square pedestrian network mile, Sandton is under threat and cycling paths of becoming a giant parking lot and subsequently collapsing connected to green our economic wellbeing,” he said. spaces, ticketing “The City is working towards an urban design with liveable and information and accessible nodes that are characterised by an integrated transport system, residential densification along corridors, a permeable pedestrian network and cycling paths connected to green spaces, ticketing and information.”

A fashion parade showcasing re-usable materials

GHG emissions and climate change Greenhouse gases trap heat from the sun and warm the planet’s surface. Of the world’s greenhouse gas (GHG) emissions, the majority are related to energy consumption, and most of those are carbon dioxide. ● Urban transport is a major driver of GHG emissions and climate change. ● According to projections, two-thirds of the world’s population will live in cities by 2050. ● Urban transport accounts for nearly half of the emissions of the transport sector.

● Between 2000 and 2050, GHG emissions from the transport sector are projected to increase by 140 %, with a very large share of that increase coming from developing countries (nearly 90%). ● According to the latest report by the IPCC, “Without aggressive and sustained mitigation policies being implemented, transport emissions could increase at a faster rate than emissions from the other energy end-use sectors.”

● The EU Commission estimates that the implementation of sustainable urban transport measures in a given city has a substantial effect on GHG emissions, and could lead to a CO2 emission reduction of between 35% and 70% in 2040 compared to business as usual for the assessed cities (Barcelona, Malmö, Freiburg and Sofia). ● Single measures in the urban transport sector have an impact on GHG emissions – for example, the Bus Rapid Transit system and Gautrain use.

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EcoMobility

The festival showcased how the entire family unit can play a role in combating global warming

also recorded on buses, according to the MEC. “The recent increase in the number of Gautrain passengers shows that commuters are making a conscious shift from private car use to public transport, and that public transport is safe, reliable, accessible and affordable.”

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Gauteng Transport MEC Ismail Vadi said there’s been a substantial increase in passengers travelling on the Gautrain since the launch of the City of Johannesburg’s EcoMobility World Festival, with a passenger increase of 7,7% on Gautrain trips. On the first day of the festival, the Gautrain recorded its highest Monday passenger trip count with an average of 60 120 passengers using the service on the day compared to the usual 55 800 average Monday passenger trips. He said the bus service increased by 512 passenger trips with an average of 21 076 passengers using the bus service on the day. A total of 2 934 non-train users were

FACTS In preparation for the festival, a comprehensive Transport Management Plan was drawn up by the city after consultation with local stakeholders, including residents, the business community and the hospitality sector, as well as extensive traffic studies. SOUTH AFRICAN PROPERTY REVIEW

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EcoMobility

End of the car age? EcoMobility is a vast topic but on a fundamental level, it is about how cities around the world adapt to a car-free environment By Maud Nale

Camilla Ween of Goldstein Ween Architects in London

SAPOA CEO Neil Gopal participated in the EcoMobility dialogues as part of the panel discussion on reshaping cities for EcoMobility. Other panelists in the discussion included Camilla Ween from Goldstein Ween Architects in London, David du Preez from the Johannesburg Urban Cyclists Association and Jacques van Embden from BLOK SA with the moderator of the session being Adrian Enthoven from Hollard SA. SAPOA supports all efforts by the City of Joburg in promoting sustainability and environmental awareness.

Timothy Papandreou of San Francisco’s Municipal Transport Agency

Transport Sustainability Programme, San Francisco, United States of America

an Francisco in the US is the cultural, commercial and financial centre of northern California. It has a density of about 7 022 people per square kilometre, making it the most densely settled large city (population greater than 200 000) in the state of California and the second most-densely populated major city in the US (after New York). According to Timothy Papandreou of San Francisco’s Municipal Transport Agency, it is also the richest city in the US. But as densely populated and rich as it is, it is also a growing city that encourages cycling and other modes of ecomobile transport. “We can grow all we want, but if we don’t innovate, we will end up in the same place.

Policy is a choice you make for your city”, says Papandreou. He also highlights the fact that people’s choices are changing. “We have seen a high growth for on-demand transport such as Uber”. How we use our space on the street is also important. “We don’t have a hierarchy of modes of transport,” he says. “We never use the terms pedestrians, cyclists or drivers. Whether you walk, cycle or use public transport, it is all clustered as people walking, people cycling and people driving. These are all modes of ecomobile transport that connect people.” There is also a strong commitment by the people of San Francisco towards ecomobility. Shared mobility is encouraged. Papandreou believes a great city needs excellent transport. San Francisco’s transport system is so well developed that the current ratio is 50% cars and 50% everything else. That is impressive considering that San Francisco is the richest city in the US. How does a country go about creating such a system? Through land use and traffic management: “There is nothing as alternate transport in San Francisco,” says Papandreou. “All modes are all equal and different. You can’t have service without the infrastructure. “In San Fransisco, we are not anti-car,” concludes Papandreou. “We just encourage ecomobility. Transit is not a waste of money – driving is.”

Integrated Spatial Development & Transport Strategy, London

amilla Ween of Goldstein Ween Architects in London emphasised the need for change and how policy can help to deliver that change. Cities are growing, and more and more land surface is being taken to service the car. Congestion, especially highway congestion, remains a massive impact on the economy. One of biggest contributors to decongestion in London, according to Ween, is the introduction of the London congestion charge. The London congestion charge is a fee charged on most motor vehicles operating within the city on weekdays between 7am and 6pm. It was introduced in 2003 and remains one of the largest congestion charge zones in the world. The charge aims to reduce high traffic flow in the central area and raise investment funds for London’s transport system. Cycling policies have transformed the image of cycling in London with dedicated parking for cyclists in the city. Freight London has also introduced a low-emission zone, tackling the issue of pollution. The city also constructed the London Millennium Bridge in 2000 for pedestrians crossing the Thames, linking Bankside with the city. “The transport infrastructure that London has shows that if you create the infrastructure, people will use it,” says Ween. “Transform people’s movements. There is no city in the world that has attained mobility by being a car-based city, so we need walking and cycling.”

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EcoMobility

Ariadne Manzi of the Institute for Research and Urban Planning in Curitiba, Brazil

Urban Acupuncture in Curitiba, Brazil

uritiba is the capital and largest city of the state of Parana in Southern Brazil. It is located about 250km southwest of São Paulo, near the coastal mountain range. The city’s population numbers approximately 1 879 400 people, making it the eighth mostpopulous city in the country and the largest in Brazil’s South Region.

Amanda Ngabirano of Makere University in Kampala, Uganda

Smart Moving, Uganda

ransport issues in Africa may be viewed from a different perspective than they are in the rest of the world. In most of the developing countries in Africa, walking and the use of various modes of ecomobile public transport are part and parcel of our daily life. People are generally poor and cannot afford to do anything else. Walking and cycling are considered to be very unsafe although they tend to be the most popular modes of transport in the city. Amanda Ngabirano gives an interesting and introspective account about the real issues facing Africans around ecomobility. “Perceptions are very diverse but focus mainly on infrastructure,” she says. “Ecomobilty faces rejections from boardroom stage to design.” How do we change the face of our transport system in a country where there is so much user rejection?

The key factors for the people of Curitiba are mobility and sustainability. Ariadne Manzi of the Institute for Research and Urban Planning says the urban planning process in the country started in 1943. “Before then, the country’s area consisted of high, medium and low density,” she says. “Curitiba’s bus system was developed as an integral part of an overall master plan whose basic objectives included radial expansion of the city along five corridors (structural axes), integrating land use and transport, and protecting the traditional city centre. The overall system is the result of many incremental decisions aimed at improving service quickly, pragmatically and affordably.” About 70% of Curitiba’s commuters use the bus system even though Curitiba’s automobile ownership is high. The Curitiba plan is an integrated approach to development of transport and land use.

Key directions, according to Manzi, include:

Sixty percent of the transport in Uganda is non-motorised. That means that a large number of people are walking, cycling and using public transport as a way of getting from point A to B daily. “But the current public transport is irregular, inconvenient and expensive,” says Ngabirano. “There is a loss of trust and confidence in the system. The question many Ugandans ask themselves is, can we make it work?” According to Ngabirano, communication and the marketing of the system have to be consistent. “Implementation and enforcement are also vital,” she says. “This won’t happen miraculously and by itself; it will require investment, planning and prioritisation – and behavioural and attitude changes.”

Ngabirano’s closing words are a fitting end to a very interesting discussion that brought the topic of ecomobility home. “People are tired of hearing about how things are done in Europe and America,” she says. “This is Africa. We need a regional benchmark; right examples that people can feel, touch and imagine. “Bigger-picture thinking is very necessary. Car users do not mind more of less. They mind more about convenience. People love convenience, and ecomobility will boost this convenience. “People move with a purpose. Plan their movement or they’ll plan it for you. It’s not just about the cities. Don’t forget about the people. “Unless people thrive in the cities, your cities will unfortunately not survive. Let’s change the way we move. Think smart and focus on action.”

●● Promotion of a linear urban city growth by integrating public transport, road network development, and land use along key “structural axes”; ●● (Traffic) decongestion of the city centre and preservation of the historic central city core; ●● Management and control of land use; ●● Provision of economic support incentives to urban development to realise land use aims and to assist employment generation; and ●● Improvement of infrastructure. Since the urban planning process, the city’s transport system now has a linear structure. It is known throughout the world as an example of a pragmatic, integrated, cost-effective and efficient transport system.

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cover story

Growth inevitable as investors embrace the African market Brollâ&#x20AC;&#x2122;s West Africa operations are thriving, and although both Ghana and Nigeria are facing strong headwinds that are likely to continue in the short to medium term, the picture is greatly positive in the long term By Nthabi Nhlapo

Malcolm Horne, Group CEO of Broll Property Group

In Ghana, the real estate market, although still maturing, has over the past 10 years proved to be a vibrant and fast-growing sector

BELOW Accra Mall in Ghana

est Africa is hailed as one of the most investible parts of Africa, with corporates across the board having taken to doing business in this part of the world recently. Broll Property Group is among these forwardthinking corporates and is in fact one of Africaâ&#x20AC;&#x2122;s leading commercial property services companies, serving the investor and occupier markets in 10 countries with operations in more than 17 sub-Saharan Africa regions. Founded in 1975, Broll Property Group has offices in major cities and towns in South Africa, and operations in Ghana, Indian Ocean Islands, Kenya, Malawi, Namibia, Nigeria and Rwanda. It provides real estate services in other African countries as well. Since 2004, Broll has represented CBRE in sub-Saharan Africa. Through this affiliation, the company is able to provide unrivalled

local expertise and global market knowledge to the benefit of clients. The group is a market leader in the property services sector and prides itself as an award-winning entity: Broll SA was recently awarded first place in the Real Estate Advisors and Consultants, Real Estate Agency/Letting, Real Estate Valuation and Real Estate Research Services categories at the Euromoney Awards. Similarly, Broll Namibia was named top Property Management Company after receiving the PMR Golden Arrow Award, while Broll Ghana attained Best Valuation Firm of the Year, Best Brokerage Firm of the Year, Valuation Firm of the Year and Brokerage Company of the Year at the Ghana Property Awards. Broll Nigeria also received accolades when it was named top Real Estate Advisors and Consultants in Africa by the Euromoney Awards.

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It was also named Best Real Estate Support Service Company and Best Commercial Property for Ikeja City Mall by the Real Estate Unite Awards. Judging by the recognition the company receives from the property market, it is evident that Broll’s African operations are sturdy and have shown consistent growth over the years. “West Africa is an attractive location for investors seeking high returns on their investments,” says Group CEO, Malcolm Horne of Broll Property Group, speaking about the company’s West Africa operations. “In Ghana, the real estate market, although still maturing, has over the past 10 years proved to be a vibrant and fast-growing sector. This is mostly the result of the significant economic growth that the country experienced within the last decade; however, there has been a slowdown in the real estate sector, with the weakening of the economy.” Horne notes that Ghana’s economy has benefited from more than 20 years of steadily improving macroeconomic management, strengthened by a stable political and democratic system, a competitive business environment, and growing levels of local and foreign private inward investments. “In Nigeria, the office and retail sectors have seen growth over the past decade, especially in markets such as Abuja, Lagos and Port Harcourt, where significant commercial activity takes place,” says Horne.

“Over the last year, however, we have noted traction in the investment via acquisition segment as few prime-grade assets have been put on the market.” He says that office properties such as Heritage Place and Alliance Place are among the new developments transforming the face of Kingsway Road in Ikoyi (Lagos), one of the most expensive office regions in Nigeria with asking rentals of $965/m²/annum

West Africa overview Ghana’s macroeconomic imbalances, deepening energy crisis, high inflation and interest rates, currency depreciation and the effect of lower commodity prices have all impacted negatively on investor sentiment. Nigeria is also facing economic challenges, primarily as a consequence of its government’s dependency on the oil sector as the primary source of foreign exchange and tax revenue. “The Nigerian economy appears more resilient, supported by a large growing population, favourable demographics and the growth of non-oil sectors such as agriculture and services,” says Leonard Michau, Director and Head of West Africa Operations at Broll Property Group. “As a result of the economic downturn, many investors, in particular those who have taken on development risk, have either downsized, delayed or cancelled their development plans.”

Leonard Michau, Director and Head of West Africa Operations at Broll Property Group

He adds that, on the other hand – and on a more positive note – the current conditions may result in a buying opportunity for the astute investor as corporations dispose of their properties to support their cash flow.

Broll Ghana Kofi Ampong, CEO at Broll Ghana, says that Broll’s entry into the Ghana market primarily addressed the lack of maintenance culture in the Ghanaian real estate environment. It introduced the benefits of the “outsourcing” function in the industry to free corporate

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Kofi Ampong, Broll Ghana CEO

Nigeria has also witnessed an inﬂux of multinationals in technology and ﬁnancial services, which dominated the take-up and fuelled the increase in rents in 2013 and 2014

bodies of the huge cost of managing their real estate assets and to enable them to concentrate on their core business and functions. “Broll Ghana brought innovation into the property-related service industry, especially in the field of property and facilities management,” explains Ampong. “This was in response to the sudden upwards surge in investment in commercial property development, especially in high-rise office buildings and retail developments in Ghana, and the lack of professional property management firms to manage them.” Broll Ghana’s first project was the property management instruction in 2006 for the 45,000m² office property portfolio owned by Social Security and National Insurance Trust, Ghana’s sovereign pension fund; it was closely followed by the leasing consultancy and management of Accra Mall, Ghana’s first formal retail centre, owned by private equity firm Actis. Other projects include leasing and management of West Hills Mall (26,000m²) developed by Atterbury, Junction Mall (11,000m²) developed by RMB Westport and A&C Mall (10,000m²). Property management of the 17,000m² World Trade Centre office complex and 17,000m² Accra Financial Centre; facilities management of the IFC and World Bank headquarters and MTN nationwide property portfolio, as well

Our Footprint Across Sub-Saharan Africa

Broll footprint across Sub-Saharan Africa

as leasing consultancy on behalf of clients such as Google, Vodafone and First Capital Plus. “The emergence of Ghana as an oil-producing nation in 2007 created a boom in the commercial property sector, with Accra being viewed as a business location of choice in West Africa,” says Ampong. “This led to a number of businesses choosing to be located in Ghana, despite a marked under-supply of high-quality office space and formal retail shopping space. “The real estate market responded to this demand with the commissioning of several commercial property developments with reputable developers such as Actis, RMB Westport, Group Five and Atterbury entering the market. This has led to a huge expansion of the supply side, with nearly 160,000m² of commercial space consisting of both retail and office, coming on board in the five-year period between 2008 and 2013.” In addition, the development pipeline is in excess of 100,000m² due for completion within the next 24 months. Ampong notes that in Ghana, the recent emergence of the middle class created a need for formal shopping space, leading to a surge in the development of shopping

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Bolaji Edu, Broll Nigeria CEO

malls with the first centre – Accra Mall – completed in 2007. Another trend in commercial property is mixed-use developments. “As developers seek to capitalise on locational advantages of development sites in prime areas, the solution is to create mixed-use developments that offer a combination of office, retail and residential use on one site,” says Ampong. “The benefit of putting together such differing uses is to create synergies and complementary structures.”

Broll Nigeria Broll expanded into Nigeria in 2004 and has been at the forefront of the retail revolution that has occurred in Nigeria over the past decade. The company played a key role in bringing retailers such as Shoprite, Game and MRP into Nigeria, thereby fundamentally changing the way that Nigerians shop. Broll has been instrumental in pioneering international-standard property and facilities management, and was involved in some of the biggest real estate deals in Nigeria, including the sale of Sale of Mearsk (Atlantic) House in Victoria Island, sale of Siemens Building in Oshodi, leasing of Ikeja City Mall, Palms Lekki and Jabi Lake Mall in Abuja, and facilities management of Ikeja City Mall and Oando HQ.

“Nigeria has also witnessed a huge influx of multinationals in technology and financial services, which dominated the take-up and fuelled the increases in rents in 2013 and 2014,” says Bolaji Edu, Broll Nigeria CEO. “The subsequent development boom has resulted in rents beginning to taper off from their historic highs.” Separate from retail growth areas that drive the growth of the company and address the needs of Nigerian clients are investment sales and purchases, corporate real estate services, advisory, research and valuations. Speaking about Nigeria’s most notable commercial property trends, Edu says that the core office markets remain Ikoyi and Victoria Island. “These two locations have been the focus for nearly all the new office space completed over the last few years,” he explains. “The green and sustainable trend in Nigeria has not entirely taken off across the board, although several organisations (typically those with an international footprint) are being more environmentally conscious.” In closing, Edu says investors and developers are now building offices with environmentally friendly features; some are even getting global accreditations such as LEED and Green Star.

Service offerings Broll offers services that include asset management and consulting, auctions and sales, corporate real estate services, facilities management, industrial, investment and office brokering, property and project management, retail leasing and projects, research, shopping centre management, valuation and advisory services, a patented Broll-Online property-management software solution and a property search function with a vast database of properties across Sub-Saharan Africa..

t: +27 (0)11 441 4000 e: info@broll.com w: www.broll.com SOUTH AFRICAN PROPERTY REVIEW

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SAPOA board

When resilience pays off Jeff Zidel’s career is decorated with an innovative entrepreneurial history, and his recent appointment to the SAPOA Board adds another colour tone to his highly impressive contribution to the commercial property sector By Nthabi Nhlapo Photographs Xavier Saer

Zidel says property is something that drives him, and although he’s moved across various positions over the years, he still finds new and interesting projects to work on regularly

e is an accomplished property developer and investor with more than 40 years of experience, but regardless of his extensive knowledge of the industry, Jeff Zidel, Nonexecutive Chair of Fortress income fund still speaks about commercial property with a passion in his voice. Zidel, one of SAPOA’s newest board members, started his illustrious career working as part of a family estate agency – but it was when he moved into the shopping centre development space that he became

directly involved with the commercial property sector. He helped develop small shopping centres across South Africa, with 10 in Lesotho. The three-time president of the Roodepoort Chamber of Commerce was also involved with the first sectional title of the thenTransvaal area at Florida Lake and says this was one of the high points of his career. He has many other achievements locally and abroad but it is his local conquests that he speaks about with a clear sense of pride. “When the Nandos chain of restaurants started out, I had an office at Hyde Park Shopping Centre,” he explains. “It is here that I got to work with the Brozin family (coowners of Nandos) as they started to expand their brand.” His company had a joint venture with Nandos and helped it go from having only four stores to 120 in quick succession. “I had a lot of fun working on those stores because at the time Nandos was the flavour of the month,” he says, adding that he never stopped his shopping centre developments.

Founding Resilient On 6 December 2002, Zidel entered the listed property sector when together with Desmond de Beer and Barry Stuhler he listed a company called Resilient Properties. The group now consists of six separate funds listed on the Johannesburg Stock Exchange with one – Rockcastle – listed on the Mauritian stock exchange and another – Nepi – listed on the London and Bucharest stock exchanges. The funds have a combined market capital of around R150-billion. Zidel says property is something that drives him and that, although he has moved across various positions over the years, he still finds new and interesting projects to work on regularly. “I could retire at my age (64) but I’m enjoying what I’m doing so much that retirement doesn’t seem at all necessary,” says Zidel who is also the Vice President of the South African Council of Shopping Centres.

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SAPOA board ST NEWPEERT Y S ’ A O O SAP HLY PR DATE

T h e S A P OA P r o p e r t y A d v o c a t e M a g a z i n e

NT L UP BI-MOAND LEGA ION ASSET PUBLIC AT

SAPOA, a member driven organisation – reaching the industry

Ninety percent of South Africa’s commercial property owners are SAPOA members. They are the industry’s decision-makers. Published bi-monthly, the SAPOA Property Advocate Magazine PROvocate offers a unique opportunity to be the one-stop communication ADVOCATE tool for all things legal in the property industry. PROvocate promises to be the platform ALBERT MURPHY Sectional title that informs the property industry about the constant changes in South Africa’s developments and the reality property legislation. Like its sister publication South African Property Review, the of Murphy’s Law magazine’s targeted distribution will ensure it lands on the right decision-makers’ desks. PROvocate is aimed at legal professionals in the commercial property space, the lawyers and advocates who deal with property, and developers, owners and asset managers in both the retail and residential property arenas. Property ownership is not restricted to “bricks and mortar”; it includes diverse subjects such as intellectual property law and property as a brand. We are committed to developing a platform that will showcase property advocates, attorneys and the firms in which they practice. We will examine the pitfalls that developers and property owners face, from planning through to execution and handover. In addition to the professionals who already work in the property industry, we aim to work closely with educational institutions suchWe as the University of Pretoria, the keep you in perfec t register University of the Witwatersrand and the University of Cape Town. These established centres of learning are the incubators of our future property practitioners, and a RSA Litho is the prefe rred PROVOCATE magazine choice of printer for the number of their professors sit on South Africa’s legislative boards. Weandwill lookpublaticati some our niche ons of their graduates and identify, as well as publish, extracts from their studies that sectional title schem e developments could benefit the professionals in this exciting sector. 1 T R PA PROvocate will also be available online through its dedicated portal, Gordon’s Bay’s Harbour Island: Murphy’s Law in Provocate.co.za, further expanding its reach across international boarders. practice in sect

11-2015

ADVOCATE MAGAZINE THE SAPOA PROPERTY

The SAPOA Board Zidel says that, at the moment his focus is largely on giving back to the industry that he’s worked in most of his life. “This was also the inspiration behind my involvement with SAPOA,” he says. “I have been very involved with SAPOA in the past because of the incredible work that the organisation does.” He has served on various committees within SAPOA. “SAPOA’s work in the commercial property industry is unmatched, especially when one looks at the organisation’s level of involvement by way of recommendations and making submissions on bills influencing the industry,” he says. Having individual companies be their own watchdogs would have been too timeconsuming and tedious a task, so SAPOA aggregates the common needs of the industry and services it. “It is also worth noting that SAPOA remains in constant conversation with government on behalf of the industry, something that individual companies cannot possibly have the capacity for,” says Zidel. “SAPOA also has built up important relationships, such as those with the Department of Public Works, Treasury, Local Councils and others.” He also says that the information that the organisation brings out, including the research, is an unmatched tool for the industry. “Fortunately, SAPOA hosts a conference every year that brings together this industry’s heavyweights under one roof and gets them talking about common goals,” he says. “It is staggering how much work SAPOA is doing, and the effects thereof are quite tangible to businesspeople in the commercial industry space.” Zidel is a fanatic of education and says that among SAPOA’s initiatives, the educational activities are a catalyst to change and economic growth for generations to come. “Education is the best way to develop this country and help create future entrepreneurs and professionals who are confident, educated and competent,” Zidel concludes.

Mike Gregory, Henkel Gregory Inc

WLOTZKASBAKEN A strange case of property ownership in the Namib desert

focus on attorneys

Jos Hooyberg, Hooyberg Attorneys

Desiree Nafte,

Hyprop Investments Henkel Gregory Inc (formerly Craig Henkel & In April Associates) is a two-director 2005, Jos Hooyberg law firm that has been started operating from offices Hooyberg Attorneys, Desiree Nafte joined a boutique firm specialising in Fourways, Johannesburg the commercial property in since 1995. Craig Henkel property law. Hooyberg industry in 2001 as a legal adviser specialising and Mike Gregory, acknowledges the each importance in have more than 30 property law after of interpersonal relationships, years of experience practising as an attorney in the internal both in property and conveyancing private practice for and external, and several years. In 2011, fields, and are both of nurturing these. Desiree are acting with integrity In experienced in all aspects Nafte was appointed and ensuring the best the National Legal of property law. Executive for the client, Hooyberg creates at Hyprop Investments Gregory, who joined Henkel in 2010, heads a culture of mutual Limited and is the loyalty current up between the the property and commercial Chairperson of the company and its clients, SAPOA Legal Committee. law departments at the as well as its firm. Having spent professionals and business She obtained a BA a number of years and an LLB degree partners. The result in the UK comprehensiv from is a practising as a solicitor, the University of the e and collaborative he has gained valuable Witwatersrand in 1989. approach towards insight addressing and associations in the Regarding the challenges her role for SAPOA, Nafte property markets there. and opportunities faced says, “As by its clients. Chairperson of Every property transaction, the Legal Committee, however large or small, relies for its success I have endeavoured Hooyberg is the legal force behind several on a speedy and problemto steer the Committee upscale free conclusion. Henkel mixed-use property towards providing developments in Gauteng. the commercial Gregory’s “hands-on” property The approach and personal firm has been involved industry with practical involvement at senior in precedent-setting information relating policy level adoption by to throughout the transaction legal issues facing the municipalities in respect industry.” process ensures this of bulk service is contributions, achieved consistently. Nafte has comprehensiv as well as in the e knowledge of the constitutional challenge to the Development property industry and “We have been associated experience in property for many years with Facilitation Act. law, the law society in training and she believes women Hooyberg Attorneys is a small firm that and mentoring attorneys are a significant part offers of who wish to qualify its clients direct, helping grow the economy one-on-one attention as conveyancers, and of the country. and has we a strong skills regularly present lectures “Women can contribute set across various areas to students wishing to the South African of the law, to from contractual write the conveyancing economy by drafting to conveyancing examination,” says Gregory. developing a culture and “Having qualified and international transactions. of entrepreneurship,” practised in the UK, she says. “More These complement we have offering South its strong connections African women need in commercial property in the UK and to participate in law and property European litigation, new property markets. business creation, in both Johannesburg We regularly introduce as this will be and Cape Town. a major South African clients driver in the growth The law of property to property opportunities in South Africa needs of our economy. Women to be there and have introduced understood within tend to be very the context of the opportunities innovative and oversees clients to creative; property opportunities and challenges facing we need to channel this energy into new, in South Africa. We the country. On one successful go out the growth hand, of our way to build businesses.” of the South African lasting relationships economy requires a with our close look clients and key players Unfortunately, many at how government in the property industry. women in South Africa policy and legislation With our years of facilitates and protects are not yet recognised experience in property, property values, as well for the impact, growth we are acts such as how and able to provide a level opportunity they as the Spatial Land can provide to our of service equal to any Use and Management economy, of the Act 16 of big law firms without Nafte says. “Greater 2013 affect property the ‘big law firm’ price support structures development more need to be tag.” broadly. On the other put in place to New legislation affecting develop this culture hand, it is necessary the property industry to of is being passed all understand the challenges entrepreneurship the time, and the among women,” faced by South Africa criteria for ensuring she says. in success in property “Female entrepreneur equitable access to land development or speculation s face huge challenges and housing, and is specifically how in becoming increasingly South Africa because the right to property stringent. As a result, of the increasing regulatory interfaces with the legislation and inexperienced property environment, limited case law, which often access developer will struggle to financial subordinate resources, to succeed without experienced property in favour of gender inequality, other concerns. gender stereotyping advisors. and lack of skills.”

Please email your request to quotes@rsalitho.c 71 Stewart Street, o.za Goodwood, 7460. Tel 54+27 (0)21 592 1224 www.rsalitho.co.z a

rsi litho ad.indd

+27 (0)11 684 1111 jos@hooyberg.com www.hooyberg.com

www.henkelgregory.co

.za

April 2015

+27 (0) 11 447 0090 desiree@hyprop.co.za www.hyprop.co.za

April 2015

2015/03/26 7:46 AM

ional title develop ments

PROvocate’s pillars By examining various aspects of property law, PROvocate will focus on: ● Regular town planning, legislation and advocacy updates; ● Doing business in Africa: the legal requirements of setting up business in various African countries, in particular when setting up commercial property development partnerships; ● Emerging markets and global growth, financial and economic trends, emerging markets within and beyond South Africa, the impact of legislation on property development at home and abroad. (As the magazine grows, opinions from leading law-makers and financial gurus will be sought and featured); ● Ownership, mergers and acquisitions, leasing, management agencies, REITs, tax, property ownership laws, and development of the property ownership sector in South Africa; ● Development plans approval, subdivisions, town planning, re-zoning, high-density developments, mixed developments (business/residential, IDZs), and sectional title developments;

In this series of articles, Adv Albert why developm J Murphy will discuss ents can become how and a maelstrom of financial ruin and disaster. By Advocate Albert J Murphy

● Engineering: storm water, roads and bridges within the concept of connecting cities and supporting the commercial property sector. Leading experts in the engineering world will be interviewed and featured; ents scheme developm sectional title ● Environment: innovative building technology, environmental impact assessments, carbon tax policies, and safety and health regulations at building sites; ● Private and public sectors: useful contact numbers and specific topics on municipal planning and the Department of Public Works projects; ● Education: the institutions that offer property as a profession, the innovative methods that are being developed and their application in practice; ● Attorney and industry profiles, movers and shakers: the people behind the industry; and ● Leading advocate profiles. 12

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April 2015

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a wise u ily housing. By p for single-fam purchaser title ownershi , potential of the sectional go land resources of acquiri f the growth is anything to opportunity past 40 years afforded the market over the Africans prefer inexpensive accommo the way South ity and relatively and home by, this will be Such commun nt urban location, in the future. share convenie of lower in to own property title schemes, within the reach sectional brought schemes include associations and in society. es, homeowners’ o block compani there are the less Then of course for retired persons. of has beco housing schemes are, the aims title ownership were, and still why sectional ical ne But what exactly a number of the psycholog concept whereby each it satisfies a certain this rather strange or even know p, which has often don’t like by ownershi achievement. people, who on one property symbolising personal closely together p allows another, live ners overcome Apartment ownershi home classes of homeow as the of such es choice? Can these issues of of the advantag s posed by a host r of pets, more the challenge to lessees and areas, the keeping are now available t use of common It spreads block schemes. kids, etc.? managing noisy home owners associated with population, links modation segment of the Providing accom n to a fixed plac the populatio e levels for all incom t aim of sectional titles was, of not only sociolo thereby attains residential The most importan political stability.” urgently needed also but provide to and still is, levels within played a par This aspect for all income Euro employment. accommodation post-war Western of centres of and role in commuting distance families had n due to births of homeless in populatio The increase n to the cities, Hermann Weitna the flow of populatio living space recorded by mgesetz immigration, for more in Wohnungseigentu of individuals the demands materials and cost of building shortage of and the escalating vs bond repay ted to an acute over the Rent choic land all contribu the centres to city When it comes proximity of housing in the your own vs paying off past century. the benefits arguments for the buffer it provide a , examining Why it works al title ownership does than paying a mo third rather goals of section for it at titles create a nothing to show place, sectional an apartment, In the first pays h a house or renting sectional owner alternative to buying apartment. ts and thereby purchasing an of instalmen to option related namely the he can lat would be closely the unit which A second objective c titles promote hoped that sectional is that It namely n the previous, to be a and a wiser utilisatio would prove construction l purposes more efficient ownership . Land for residentia conventional of land resources d metropolitan values. and rising land of a densely populate supply. The near the centre and in short the area is expensive rea titles provides Sociological soci of sectional institution of the available use There are definite make optimum opportunity to of construction. choice of sectio the high costs ent, the the land and to spread n of a single residential developm unit occupatio In a high-rise the cost of each life, addit far higher and d closer social density can be the land is develope less than when would be far

that

April 2015 April 2015

For advertising, contact Janine Ramey: t +27 (0)79 428 5380 / e janine@mpdps.com or Mark Pettipher: t +27 (0)21 856 1276 / e mark @ mpdps.com SOUTH AFRICAN PROPERTY REVIEW

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CSOS al Long-awaited section by title dispute resolution ck Prof Graham Paddo

RTY INTELLECTUAL PROPE s when Developers, be cautiou al naming your section pment develo title

2015/10/19 10:12 AM

SAPOA events

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theme leader

Facilities management: the ABC of SA security

With the festive season around the corner, facilities management (FM) in shopping malls and ofﬁce parks will have moved into top gear regarding, among other functions, security. Crowds attract crime; similarly, less-populated buildings can expose loopholes in security over the holidays By Anne Schauffer

oxing smart around safety and security in shopping malls and office parks is an ongoing, ever-changing aspect of the South African landscape. As the saying goes, “Security is a moving target” – and for those in facilities management who operate in that space, challenges are constant. In recent months, South Africa has been plagued by a wave of mall robberies, particularly in Gauteng and the Western Cape. Cape Town alone has experienced more than 18 in the past few months, with some malls being targeted repeatedly. Targets are usually cellphone, electronic and jewellery stores, with easily transportable merchandise

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that has a high street value outside of South Africa. More recently, banks have joined those targeted. Police suspect a connection between the majority of cases, and there are often suspicions of inside jobs. Derek Lategan, Managing Director of Enforce (Excellerate Facilities Management’s security wing) points to a fraud survey conducted by Pricewaterhouse Coopers, which confirmed that crime originating from insiders – mall staff – is way bigger than anything emanating from outside. It’s solid confirmation of the complexity of managing security, and how it’s only resolved through multiple layers and numerous players.

Security regulations Of concern to some in the security industry are issues surrounding non-compliant security firms. Of the 11 000 members of the Private Security Industry Regulatory Authority, only 200 to 300 members are fully compliant. Full compliance requires that security guards have provident funds, regulated salaries and bonuses, maximum number of hours on duty, skills levels, and numerous other factors, while a non-compliant company can operate with guards paid on an hourly basis, a no-work-no-pay philosophy, and even with uniforms not supplied. The transient nature of this contractual employment doesn’t lead

Derek Lategan, Managing Director of Enforce

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theme leader Facilities and building management, and the Internet of Things Mark Grant of PSG Management Services, Property Services Group CC, says traditional facilities management usually includes the installation and use of multiple proprietary software management systems that control and monitor ”hardware” installations, such as: ●● Security (CCTV cameras, access control equipment) ●● Life safety (fire systems such as sprinklers and smoke detection) ●● Heating ventilation and air conditioning (HVAC) ●● Electrical (energy management and lighting control) Usually there is a very tight correlation between the manufacturers of equipment that forms part of these “hardware” installations and the suppliers of the software management systems that ultimately control and monitor these installations. More often than not, they are one and the same. This has resulted in a plethora of management systems that building owners typically need to deal with when managing a facility. We feel that the recent interest by software giants such as Google, Apple and Microsoft in the Internet of Things – the concept of automated communication between intelligent machines/equipment using standard Internet protocols between connected devices – will add impetus to the “opening up” of traditionally secretive building management software. It happened with the music industry and with the film industry, and it will happen with the Internet of Things and the management of buildings.

to a sense of professionalism among the guards, which can translate into poor-quality guarding. Of most concern, though, are inferior, outdated skills levels and unregulated hours. Without equivalent overheads such as ongoing training, non-compliant companies are able to quote up to 30% less – a significant, often attractive figure for property owners. Security costs have an impact on financial performance, and facilities managers are being asked to cut costs. There’s been an increasing squeeze on owners’ investment in security – and, as one group suggested, “They’re not doing due diligence on a company to see whether it’s compliant with legislation. They go out to tender, and opt for the cheapest.” Are the non-compliant companies legal? Yes. Apparently there are loopholes in the law – which the South African Security Association (SASA) is currently contesting.

generation of the design solution, and the requirements are client-specific. There are no generic solutions to security, so architects can’t include aspects that are not concrete early on in scheme designs; hence these elements are often non-integrated systems and components. Ideally buildings should integrate all aspects of facilities management including security, façade cleaning/servicing, maintenance, cleaning, and deliveries.”

Crime meets design There’s little doubt that excellent security attracts tenants. Zenprop’s Head of Facilities Management Lieb Liebenberg says this is particularly relevant when it comes to clients with international headquarters. “We use specialised companies/consultants for every project even if it’s an old building we’re revamping for a tenant,” he says. “We also conduct risk assessments from time to time on occupied buildings when the conditions/ or the environment changes or there are foreseen changes, and then act accordingly to ensure sustainability on tenant occupancy.” From a security perspective, whether we’re talking about shopping malls or office parks there’s a significant difference between new builds and old. Crime impacts on design, and given that crime is constantly evolving, so too must design. Old buildings present the biggest challenges because, back in the day, it was all about a good-looking functional building, no matter how many entrance/exit points, easily accessible back-room passages, remote ablutions and other weaknesses it had. A shop’s site within a mall was determined by consumer buying patterns, foot traffic flow and other considerations. Architect George Elphick of Elphick Proome Architects says that when it comes to security, the client – a corporate organisation – usually selects or has an in-house security specialist. “This aspect is seldom, if ever, undertaken by architects alone,” he says. “The key to a fully functional outcome is introducing all security requirements at inception – this allows for integration into the design solution. Frequently, clients only consider the inclusion of a security regimen at a later stage in the

George Elphick of Elphick Proome Architects

Packaged solutions Excellerate Facilities Management believes in a bundled service – not only because it offers cost savings but because it offers a more synergistic approach to security. “Typically, you’ll have separate companies handling cleaning, guarding, parking, all the facilities management’s soft and hard functions,” explains Lategan. “We have the opportunity to create a fully integrated synergy between all those elements, and from a cost perspective, we can reduce superfluous supervision and management layers. Rather than just cleaning and guarding, we provide a massive crossover – our cleaners are as much our eyes and ears as our guards.” Excellerate believes the traditional system of quoting – Bill of Quantities (provide five guards, 10 cameras, etc) – has weaknesses, and the company is lobbying for an outcomebased approach. “It’s far better for a client to tell us the outcome they’re looking for and their budget; based on that, we can design a customised solution,” says Lategan. “The key here is providing guards of the right calibre, not a certain number of guards, and this is something we’re driving at through SASA. The goal must be a security solution that balances appropriate technology with personnel – one that uses technology where a guard not only isn’t necessary but could even be less efficient. It’s also more cost-effective.”

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people in theme profile leader

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Stan Frank, Head of Integrated Facilities Management for JLL for sub-Saharan Africa and EMEA

Global trends Stan Frank is the Head of Integrated Facilities Management at JLL for sub-Saharan Africa and EMEA, reporting into London. Speaking from personal experience and exposure to the international market, in particular when he was in Dubai dealing with retail developments, he says that the international market is still ahead of the game when it comes to implementing security measures in shopping malls. “This is primarily because of that market’s exposure to terrorism, as opposed to the local market which – to date – has dealt primarily with petty crime and armed robberies,” he says. “The shift in change is required upfront at design stage, where the developers need to involve the facilities management professionals to assess the requirements from a pragmatic, riskmitigation and operational perspective. Implementing an effective security solution is three-dimensional and involves the integration of proactive static security, reactive armed response and strategic technology.

The latter forms part of the overall technology platform used to integrate the various operational elements of the mall, for example, maintenance, monitoring and energy management. The key is to create visual barriers that prevent and deter potential perpetrators while also providing a sense of comfort and security for the shoppers. “This process becomes a lot more challenging to implement retrospectively because of the costs involved, but new developments have an opportunity to engage with facilities management professionals throughout the design, build and management stage to ensure the proposed solution is sustainable, easily available, functional, maintainable and accessible. In many instances, some of the security options are value-engineered out of the end-product because of costs and aesthetics – but these decisions ultimately still come at a price.”

Conclusion The festive season is on the horizon, and crowds mean criminals. Security has to be amped up but with a certain degree of subtlety, because it can’t be intimidating to customers. “Unobtrusive security, whether it’s intelligence via our investigations unit/informers moving through the various spaces, or the latest CCTV video intelligence, is an integral part of the security package – as is a partnerships between private and public bodies,” says Lategan. “At the Gateway Theatre of Shopping, for example, the team consists of SAPS, Business Against Crime, CCTV, security guards, undercover operatives, and more. A partnership between the property owners and facilities management is vital.”

Chris Davey National Technical Manager Old Mutual Property

Chris Davey studied at UCT, completing a BSc in building management in 1989, with a certificate in project management facilitated by the Faculty of Engineering at UCT. He also completed an advanced certificate in Shopping Centre Leadership run by SACSC through the University of Pretoria and continued his education via training programmes and engagement with product manufacturers. An opportunity to join Old Mutual Property (OMP) came in May 2003 as a result of a change in strategy involving insourcing of the property and facilities functions. Prior to that, Davey worked as an accounts manager for an outsourced company, providing FM services to OMP. Davey was appointed as the Regional Technical Manager for the Western Cape, and later promoted to National Technical Manager in September 2009. He dealt with various challenges, such as power and skills shortages, as well as a diverse portfolio under management. Opportunities for advancement included improving the operating efficiencies of the properties by developing talent within the facilities management of OMP. “Being appointed as National Technical Manager was a primary achievement, which became possible as a result of the experience I gained through my engagement with a diverse range of projects, properties and people,” he said. “This would not have been possible had I not been with OMP.”

t: +27 (0) 21 530 4500 cdavey@oldmutualproperty.com www.oldmutualproperty.com SOUTH AFRICAN PROPERTY REVIEW

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people in proﬁle

Soaring up the corporate ladder A

stute young entrepreneur, Shaheer Noormohamed (28) not only has a flair for business but is also passionate about serving his community, which he has done in a variety of ways for many years. At the age of 17, while many of his peers were more concerned with enjoying their youth, Noormohamed was establishing his sense of social responsibility, joining the Pretoria Muslim Trust and providing assistance not only towards the welfare of the community, but also serving on the local burial committee. While still in matric, he worked during the afternoons as a sales rep in order to gain his independence and not relying on his entrepreneurial family for an income. Not long thereafter, he was appointed as manager of an advertising agency. He climbed the career ladder and eventually became a director of property management company Nazprop, with a portfolio of diverse properties in the Pretoria CBD, the Centurion suburbs and beyond.

The dynamic Noormohamed is also the director of various other companies, including Property Company Tshwane (Pty) Ltd, ANCYL (Pty) Ltd and Pan African Business Forum (Pty) Ltd. Since his early days, Noormohamed has reached out to the community, serving in leadership positions on various NGOs, including serving as Chairman of the Laudium Community Policing Forum and deputy Chairman of the Pretoria Central Cluster. He has also served in various positions at his local ANC branch and is presently squeezing a course in insolvency law and practice into his busy schedule. He remains committed to assisting in building our country in the spirit of uBuntu and focusing on the future for the benefit of the next generation. The young businessman has certainly put his shoulder to the wheel in practising the famous John F Kennedy quote: “Ask not what your country can do for you, ask what you can do for your country.”

Director of Companies Shaheer Noormohamed (28)

t: +27 (0)82 978 6209 shaheer@nazprop.co.za.com

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SAPOA events

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SOUTH AFRICAN PROPERTY REVIEW

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SAPOA events MASINGITA CITY

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Illungile Consulting Services – (012) 346 4744 – www.Illungile.co.za – Retail – Commercial Mixed – Industrial – Private Sector SOUTH AFRICAN PROPERTY REVIEW

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education

Fortifying women managers in property In an effort to advance women in property, Transnet in conjunction with SAPOA and the University of the Witwatersrand held a certification ceremony for nine women who completed a property management programme By Nthabi Nhlapo

Professor David Root (Wits), SAPOA CEO Neil Gopal, Zakhele Lebelo (Transnet) and Professor Samuel Azasu (Wits)

ransnet Property held a ceremony to recognise nine women who completed the Property Management Programme, which was administered by the University of the Witwatersrand’s Faculty of Engineering and the Built Environment in conjunction with SAPOA. SAPOA provides various programmes in conjunction with some of the country’s leading educational institutions; this is one of them. Transnet Property management was delighted to have been able to empower the women who were part of the programme. Speaking at the event, Zakhele Lebelo, Group Executive for Transnet Property said,

“I am elated about this event because it shows that there are positive strides that we are making in the development of women, especially black women in the property space. There are opportunities to be seized everywhere and it is always good to see that these opportunities are being utilised by women who are serious about their own development.” He believes that partnerships among leading organisations can yield highly advantageous results. “The continued partnership between Transnet, SAPOA and Wits is one that will see us grow from strength to strength,” he said.

SAPOA CEO Neil Gopal was equally impressed with the ladies’ achievements and highlighted the value of education among property professionals. “We are proud of being associated with the University of the Witwatersrand and continue to strive to provide world-class programmes for those in the property space by providing a number of services for our member organisations,” he said. “We are in constant conversation with HR managers of various organisations (such as those at Transnet) to ensure we provide courses that are relevant to the industry. We will continue to develop and strengthen our partnership with Wits and all the other universities with which we collaborate.” Professor David Root of the University of the Witwatersrand said the course provides maximum knowledge for delegates to acquire the skills that are pivotal to their careers in the property space. “Our collaboration with SAPOA is key to ensuring that the courses we provide are relevant and of a standard that is on par with the rest of the world,” he said. “Wits is committed to providing a mechanism that can help property professionals achieve their goals as graduated leaders of the property space.”

Graduates with stakeholders from Transnet and the University of the Witwatersrand, and SAPOA CEO Neil Gopal

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monthly cou n Our

Th e WOR

series ●

s●

by-country focu try-

Made in China China’s economic dominance in global trade in recent decades has made it the producer of most of the world’s goods. But there is much more to this Asian nation By Sonqoba Kunene

hile China has been criticised for unfair trade practices, including artificial currency devaluation, intellectual property theft, protectionism and local favouritism due to one-party oligopoly by the Communist Party of China, the economic powerhouse enjoyed financial growth of double figures for the last 30 years – until this year, when the rise slumped to just over seven percent.

Economy

Key facts ▼ GDP growth 7% (Q2 2015) ▼ GDP US$10,38-trillion ▼ GDP by sector Agriculture 9,2%; industry 42,6%; services 48,2% (2014)

▼ Total population 1,35-billion ▼ Population below poverty line 6,1% (2013) ▼ Unemployment 4,1% (2014) ▼ Currency Renminbi (RMB)/yuan

Until 2015 China was the world’s fastestgrowing economy in the world, with growth rates averaging 10% over three decades. As of 2014, China had the world’s secondlargest economy in terms of nominal GDP,

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eye on the world

The Great Wall of China (© Dreamstime.com)

totalling about US$10,38-trillion (according to the International Monetary Fund). At the end of 2014, the country’s unemployment rate stood at a mere 4,1%. Employment rates are kept high by some of the country’s main industries, including mining and ore processing, iron, steel, aluminium and other metals, and consumer products. China became a member of the World Trade Organization in 2001. It is also the largest trading nation in the world; it plays a vital role in international trade, and has increasingly engaged in trade organisations and treaties in recent years. With an exports tally of US$2,34-trillion and imports total of US$1,96-trillion by 2014,

the country exports electrical and other machinery, including data processing equipment, apparel, textiles, iron and steel, and optical and medical equipment. Because of its manufacturing activities and inbound investors looking for opportunities, China is now the third-most-visited country in the world, with 55,7-million inbound international visitors in 2010. An estimated 740-million Chinese holiday-makers travelled within the country in October 2012 alone.

Governance China’s Head of State is Xi Jinping, who is also the General Secretary of the Communist Party of China and the Chairman of the Central

Military Commission, making him China’s paramount leader. Jinping controls China’s 23 provinces, which include five autonomous regions, four municipalities directly under the Central Government, and the special administrative regions of Hong Kong and Macao. Political concerns in China include the growing gap between rich and poor as well as government corruption. The People’s Republic of China is one of the world’s few remaining socialist states openly endorsing communism, and its government has been variously described as communist and socialist, but also as authoritarian and corporatist, with heavy restrictions imposed in many areas, SOUTH AFRICAN PROPERTY REVIEW

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eye on the world MAIN IMAGE The Shanghai skyline LEFT A Chinese temple (© Photoeverywhere.co.uk)

Did you know? ▼ China currently has the largest number of active cellphones of any country in the world, with more than one-billion users as at February 2012. ▼ It also has the world’s largest number of internet and broadband users, with more than 591-million internet users as at 2013 (equivalent to about 44% of the population). ▼ There were 182 commercial airports in China in 2012, with 82 new airports planned to open by 2015. More than two-thirds of the airports under construction worldwide in 2013 were in China. ▼ About 80% of China’s air space remains restricted for military use, and Chinese airlines made up eight of the 10 worst-performing Asian airlines in terms of delays. ▼ The government of the People’s Republic of China is officially atheist, with religious affairs in the country overseen by the State Administration for Religious Affairs. ▼ Scholars have noted that in China there is no clear boundary between religions, especially Buddhism, Taoism and local folk religious practice. ▼ China’s military budget for 2014 totalled US$132billion, constituting the world’s second-largest military budget.

most notably against free access to the internet, freedom of the press, freedom of assembly, the right to have children, free formation of social organisations and freedom of religion. Nevertheless, the level of public support for the government and its management of the nation is high, with 80% to 95% of Chinese citizens expressing satisfaction with the central government, according to a 2011 survey. A number of foreign governments, foreign press agencies and NGOs also routinely criticise China’s human rights record, alleging widespread civil rights violations such as detention without trial, forced abortions, forced confessions, torture, and restrictions of fundamental rights and excessive use of the death penalty.

The People China is the world’s most populous country with a population estimated at about 1,35-billion – one-fifth of the world’s total population.

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eye on the world Raw materials consumed Population

20%

Economy (GDP)

13%

This figure does not include the Chinese living in the Hong Kong and Macao regions, or in Taiwan Province. The country has grown significantly from when it was founded in 1949 with a population of only 541-million. Owing to China’s stable society, rapid development of production, improvement in medical and health conditions, insufficient awareness of the importance of population-growth control and shortage of experience, the population grew rapidly, reaching 806,7-million in 1969. Since the 1970s, China has implemented a policy of family planning to control population growth, which brought about the beginning of a decline in the birth rate. By 2004, the annual rate of population growth had decreased to 12,29 per thousand. Now China’s population reproduction picture has

Concrete 60%

Copper 48%

Coal 49%

Rice 30%

Aluminium 54%

Steel 46%

Uranium 13%

Corn 22%

Nickel 50%

Gold 23%

Oil 12%

Wheat 17%

basically been turned around into one that’s characterised by low rates of birth. About 298-million Chinese in rural areas do not have access to safe drinking water, and 40% of China’s rivers had been polluted by industrial and agricultural waste by late 2011. This crisis is compounded by increasingly severe water shortages, particularly in the northeast of the country.

estimated in 2013 that 16 of the world’s 20 most-polluted cities are located in China. Still, China is the world’s leading investor in renewable energy commercialisation, with US$52-billion invested in 2011 alone. China is the world’s largest carbon dioxide emitter but in 2013, it began a five-year, US$277-billion effort to reduce air pollution, particularly in the north of the country.

Environment In the past few decades, China has suffered from severe environmental deterioration and pollution. Urban air pollution is a severe health issue in the country; the World Bank

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event

The built environment: a lucrative career choice Government representatives, property professionals and private entities inducted young people from across the country into the property and construction industries through workshops recently held in Johannesburg and Cape Town By Nthabi Nhlapo

SAPOA Training Coordinator Mafonti Morobi represented SAPOA at the event and highlighted some of the opportunities learners can access through the organisation

Thabo Masombuka, Chief Executive Officer of the Construction Sector Charter Council

he Property Sector Charter Council and the Construction Sector Charter Council recently hosted the Gauteng and Cape Town Career Week, where they invited learners from various parts of the country to attend in an effort to introduce them to the construction and property sector as an option for future studies. Various built environment professionals, companies, industry bodies (including SAPOA) and government representatives including the Minister of Public Works Thulas Nxesi and the Deputy Minister of Human Settlements Zou Kota-Fredericks, addressed the high-school learners about the various elements in built environment professions during the Gauteng event. Portia Tau-Sekati, Chief Executive Officer of the Property Sector Charter Council, encouraged learners to take the opportunity to learn from all the resources they were given during the week and utilise them to map out a bright future for themselves. “The purpose of this event is to show learners that there are a lot of exciting career opportunities in the property sector and that they can access them if they are in possession of the right information to assist in decisionmaking,” she said. Thabo Masombuka, Chief Executive Officer of the Construction Sector Charter Council believes the youth needs to be exposed to possible career opportunities at a young age. “This event and many others focusing on schools are part of a bigger plan that we must invest in as a country and an industry,” he said. “This event is only a drop in the ocean of the work that still needs to be done. The next step is for the Department of Education to get good teachers and tertiary institution lecturers who can help these learners take what we have started beyond just the theory of this week into their classroom, home and eventually into their career.” Both Tau-Sekati and Masombuka believe that creating knowledgeable youth will lead

to the skills pool for property firms increasing, thus making recruitment in these industries less of a struggle. “We need to keep learners constantly informed about opportunities in the property value chain,” said Tau-Sekati.

Portia Tau-Sekati, Chief Executive Officer of the Property Sector Charter Council

Public Works Nxesi addressed learners on how they can be future leaders in the built environment. “We must train our own children so that they too can become the engineers and architects that will help develop the country,” he said. He focused on some of the opportunities available to young people, such as quantity surveying, town planning, building sciences, brokering, conveyancing, environmental studies and architecture. He also emphasised the importance of mathematics and science in professional property careers and encouraged resilience in education. Nxesi told learners that there are more professions to choose from than just the more common ones such as teaching, medicine and bookkeeping. He also addressed the problems facing many learners of school-going age, saying that although there is still poverty in the country,

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event

there are countless opportunities for further education. “We have government bursary schemes, internships, artisan programmes, maths and science programmes in schools and many others that you must take advantage of,” he said.

Minister of Public Works Thulas Nxesi

“The Department of Public Works encourages skills development and training of professionals in the built environment and this Career Week is meant to assist us in reaching this goal. The department has a strong focus on the development of women and black people in an effort to redress the imbalances of the past. “We are creating new universities, but as government we are aware that the youth is bearing the brunt of high levels of unemployment. We have responded with a number of interventions. In the last financial year, we supported 140 000 entrepreneurs and trained many others through mentorship programmes. Government aims to provide sixmillion job opportunities over the next five years, something that calls for young people to prepare themselves in time to qualify for these opportunities.” Nxesi concluded by telling the learners that the opportunities that government provides will not be worth much if young people do not make sure they take them in their stride, educate themselves, and ensure they are committed and disciplined in their studies.

short moments. But it takes vision, talent, skills and determination to build. Therefore awakening the desires, dreams and aspirations of our youth is a crucial task for which the Property Sector Charter Council must be applauded. “Learners tend to make uninformed career choices and thereafter fail to complete their studies. The high dropout rate in our learning institutions contributes to high youth unemployment, exclusion and youth alienation.” She mentioned the National Infrastructure Plan, which was adopted in 2012 with the aim of transforming the economic landscape while simultaneously creating significant numbers of new jobs and strengthening the delivery of basic services. “One of the biggest challenges we currently face in South Africa’s property industry is that of skills development,” said Kota-Fredericks. “In fact, figures by the Department of Higher Education point to a shortage of 46 000 artisans in South Africa. This shortfall is a major concern, as indicated in PricewaterhouseCoopers’ SA Construction 2014 report, which stated that more than two-thirds of CEOs in the construction sector were most anxious about access to key skills. This challenge needs the youth of a different breed to take it head-on.” She mentioned Vision 2030, a programme to promote mass entrepreneurship in South Africa. In its proposals on the economy and employment, the plan predicts that small and expanding firms will produce 90% of the new jobs needed for full employment, giving learners hope for the future. She left learners with words of encouragement. “The sky is the limit, and it all depends on your talent and drive,” she said.

Deputy Minister of Human Settlements Zou Kota-Fredericks

Learners tend to make uninformed career choices and thereafter fail to complete their studies. The high dropout rate in our institutions contributes to high youth unemployment, exclusion and youth alienation

Human Settlements Kota-Fredericks began her address by noting that young learners carry the hopes, aspirations and dreams of a brighter and prosperous future for the country. “Anyone can tear down, disrupt and destroy,” she said. “To do that takes only a few SOUTH AFRICAN PROPERTY REVIEW

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event “So explore, ask questions, see the opportunity not the limitations. Remember: don’t think inside the box. There is no box.”

SAPOA perspective SAPOA is an avid supporter of educational programmes in the field of property and construction, and as such participation in the

Career Week was imperative. SAPOA training coordinator Mafonti Morobi spoke to learners about careers in property and what each of the different occupations entails. “Most guests and speakers at this event are professionals in the property industry and for them to have reached the positions they have, they had to go through certain

educational programmes, including those provided by SAPOA in association with some of the country’s leading academic institutions,” said Morobi. SAPOA also provided handbooks for learners to access information and reference some of the information that was disseminated to them throughout the week.

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SAPOA events

Inaugural SAPOA KZN mountain bike challenge The highly successful event, sponsored by Rodel Finance, Chalupsky Properties and Nedbank Private Wealth, featured two rides – one of 40km and one of 18km

Dale Nelson, Robin Westley, Andrew Clark and Sephton Wolmarans

Samantha Daykin, Grant Boonzaier and SAPOA’s Edwin van Niekerk

Noel Stevens, Chris Rudham, Nigel Haycock and Duncan Haupt

Sam Pool, Rhyws Watts and Zane Pyoos

Dwayne Powell, Warrick Macnicol, Grant Boonzaier and Scott McNair

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feature

Newtown Junction injects new life into Jo’burg’s inner city

As with other major cities in some regions of the world, Johannesburg’s city centre has been through a period of stagnation and degeneration. However, in the past few years, several initiatives have been adopted to reverse these trends. One of the most important is the Greater Newtown Development By Maud Nale

he establishment of a city improvement district, installation of CCTV, and upgrading of existing buildings and public open spaces have turned Newtown into a safe, secure and attractive place to work, live and visit. As part of an urban regeneration effort with the Jo’burg city council, Newtown Junction marks a major milestone in one of the biggest private sector-led commercial developments in the inner city, which is slowly being revived. Nestled in the heart of Newtown, flanked by the Market Theatre and right next to the M1 motorway, Newtown Junction has been the Johannesburg inner city’s biggest investment since the Carlton Centre in the 1970s. Attacq Limited and Atterbury Property Holdings’ ground-breaking R1,3-billion and 85 000m² development includes a 38 000m² shopping centre consisting of more than 70 stores, a food court, gym, a Ster-Kinekor

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complex, Nedbank’s headquarters, about 39 000m² of prime office space, an eightstorey hotel, and basement parking for 2 400 cars that provides easy access to the entirely pedestrianised precinct and attracts about 500 000 visitors a month. Less than a year from launch, the groundbreaking Newtown Junction development has already been honoured with multiple awards. At the 2015 SAPOA Innovative Excellence in Property Development Awards, Newtown Junction was named overall winner as well as winner in the Mixed-Use Development and Overall Transformation categories. The mall is managed by Broll Property Group. An exciting new addition to Newtown Junction, set to open in November 2015, is the design-driven local retail concept WORK|SHOP|NEW|TOWN. Envisaged as a contemporary 1 200m² design destination at this historic site, the inner-city gem will include The Potato Shed heritage restaurant and craft brewery as well as the Gentlemen’s

Arthouse, an artisan cocktail bar in the 1911 Edwardian gentlemen’s washrooms. Workshop Newtown will comprise more than 45 bespoke stalls and re-imagined stores, with a concerted focus on cutting-edge local fashion, innovative product design and eclectic services such as a tailor, barbershop and tattoo parlour. WORK|SHOP|NEW|TOWN will be open for trade seven days a week, with some tenants housing their design studios and workshops adjacent to their retail space. SAPOA’s Chief Executive Officer Neil Gopal, together with his head office staff, recently had the opportunity to take part in a guided tour of Newtown Junction under the guidance of hosts Michael Clampett, Asset Manager of Newtown Junction Mall (representing Atterbury/Attacq) and Sharala Naidoo, General Manager of Newtown Junction (Broll - Atterbury Portfolio). Newtown Junction is truly a unique retail concept, offering a cutting-edge fusion of art, design, fashion, heritage, inspiration and leisure.

About Atterbury ●● Atterbury was established 21 years ago. ●● The Atterbury Trust was launched in 1998 to support previously disadvantaged communities and advance culture on behalf of Atterbury Property Holdings. ●● In 2002 Attfund was formed, which was sold to Hyprop in 2011. ●● In 2005 Attacq was formed. ●● In 2008 Atterbury acquired 1,75million square metres of commercial development rights at Waterfall, Midrand, from the Islamic Institute. ●● AttAfrica was formed in 2012 – a fund that develops and owns shopping centres across Africa. ●● Attacq Limited was listed on the main board of the JSE in October 2013. ●● Atterbury Europe launched from Austria in 2014. ●● A record number of eight shopping centres were completed in 2014, with a total of 20 opened to date. ●● More than 1,5-million square metres of commercial, retail and residential properties have been developed by Atterbury to date. ●● Atterbury Asset Management (AAM) currently manages around 800 000m² GLA in South Africa, Mauritius, Ghana, Namibia and (more recently) Europe.

Contact: Sharala Naidoo General Manager Newtown Junction (Broll: Atterbury Portfolio) e: Snaidoo@broll.com Broll Property Group Newtown Junction, 100 Carr Street, Johannesburg www.newtownjunctionmall.co.za SOUTH AFRICAN PROPERTY REVIEW

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SAPOA events

Broker cocktail networking event Growthpoint Properties hosted a networking event with SAPOA in Umhlanga Ridge, Durban, with 60 property professionals in attendance Photographs Val Adamson

Craig Davis of Growthpoint Properties, the sponsors of the annual brokersâ&#x20AC;&#x2122; event, Reiner Stenzhorn and Ramona Moonsamy

Craig Davis, Nicole Mabuza and Norman Christoforos

Sanchia Malan, Marcelle Stiemens and Nicole Mabuza

Leon van Rooyen, Robin Evans and Craig Davis

Gerald Franken and Rob McInerney

Edwin van Niekerk, Elaine Butcher and Bev Message

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SAPOA events

Ken Versfeld, Norman Christoforos, Lisa Chalupsky and Tim Hudson

Robert Kermack, Robert Aumuller and Trevor Richardson

Mukthar Ismail, Rhys Watts, Rohan Daniel and Zane Pyoos

Tammaryn Butler, Dave Clements and Philippa Charnaud

Heather Farah, Peter Kleynhaus, Bev Nelson and David Warmback

Ramona Moonsamy, Chris Betts and Narisa Ramsaroop

Vimal Sohun, Janine Moodley, Tania Govender, Yolandi Taljaard and Justin Jacobs

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SAPOA events

Collaboration for energy security Earlier this year, SAPOA and the South African Photovoltaic Industry Association (SAPVIA) signed a Memorandum of Understanding aimed at promoting energy security through roof-top photovoltaic power generation technology. Seminars were held in Johannesburg and Cape Town By Maud Nale Photographs by Xavier Saer and Natalie Bezuidenhout

he objectives of the collaboration between SAPOA and SAPVIA will be achieved by leveraging the strengths of the associations in property development and management, and in the implementation of rooftop photovoltaic (PV) systems. Seminars were held by SAPVIA and SAPOA to inform members of the collaboration, with the following key objectives: ● Outlining the extent to which embedded (roof-top) PV can contribute towards energy security in the commercial and industrial property sector; ● Creating an enabling environment in support of the role of embedded PV as an energy security option; ● Providing a platform for SAPOA and SAPVIA members to share information and network. Policy-makers and regulatory authorities will also be invited to participate.

Key topics ● Pertinent developments in the broader electricity sector ● PV technology as an energy security measure in the commercial and industrial property sectors ● Technical requirements related to PV installations

● Regulatory requirements ● Financing and contracting considerations ● Municipal revenues, finance and taxation ● Enterprise development/ economic development

RIGHT Moefi Moroeng from NERSA, DeVilliers Botha from Solareff, Rethabile Melamu from the Gauteng Department of Economic Development, and Taru Madangombe from SAPVIA BELOW Moeketsi Thobela from SAPVIA with Paul Vermeulen from City Power, Nokuthula Mabuza from IDC, Heino Oelofse from DEHN Africa and Andre du Toit from the SAPOA Sustainability Committee

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November Region

Date

Event

KwaZulu-Natal

2 to 4 November 2015

Introduction to Commercial Property Programme (ICPP)

Gauteng

3 November 2015

Gauteng Networking Event

Gauteng

9 to 12 November 2015

Essential Commercial Property Programme (ECPP)

Mpumalanga

10 November 2015

Mpumalanga Gala Dinner

Limpopo

10 November 2015

SAPOA SAPVIA Seminar on Rooftop PV

Gauteng

16 to 20 November 2015

Facilities Management Programme (FMP)

KwaZulu-Natal

18 November 2015

SAPOA SAPVIA Seminar on Rooftop PV

Gauteng

19 November 2015

Research Breakfast: Operating Cost Report

Limpopo

19 November 2015

Limpopo Gala Dinner

East London

19 November 2015

East London Golf Day

Gauteng

24 to 25 November 2015

Negotiation Skills Masterclass Programme (NSMP)

Gauteng

30 November 2015

Legal Breakfast

December Region Gauteng

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Date 4 December 2015

Event Principles of Value Feasibility Workshop

2015/10/19 10:56 AM

frankly speaking

In rhythm with Kevin Meet Kevin Roman, the motorbike fanatic COO who sings karaoke and gets good advice from his pre-teen son By Nthabi Nhlapo

Q Would 12-year-old Kevin

Q What is the best advice

I believe so. He must have wondered what the future held after losing his mom at the age of 11.

My son Matthew, who was eight at the time, told me I could not keep on punishing him for the same offence (after having broken a window three times). In life, it means getting over yourself with regards to past offences and looking forward positively.

be proud of you today?

Q If you weren’t in your profession, where would you be and why?

you’ve ever got from a child?

I’d probably have continued in the motorcycle industry. I enjoyed the excitement, selling and marketing of motorcycles and have a great respect for the power they generate. I was in this industry for 14 years prior to entering the property market and am still a loyal follower of MotoGP. Valentino Rossi all the way!

Q How lucky are you, and why?

Q If we gave you a one-way all-

My PA tells me I wear blue, black and white. It is probably because I’m fairly conservative and not flashy with colours.

expenses-paid relocation to any part of the world, where would you go?

I’ve visited Switzerland a few times and if I had the opportunity I’d settle in either Lucerne or Zurich. I love the organisation, the professionalism; the scenery is awesome with the mountain backdrops and lakes.

Q What do you do in your spare time? I sing karaoke. I particularly love singing to the tunes of Michael Bublé, Engelbert Humperdinck and Frank Sinatra. I also love umpiring baseball and I have been a baseball umpire at national level, which I still do today.

Q What’s your favourite place to eat? Besides at home, my wife Delphine and I love to go to Pigalle Restaurant in Green Point, Cape Town for dinner and dancing. On a more regular basis I like Thai food at Wang Thai.

Q Does your family have a pet?

We have two wonderful dogs, both named by my son. The one is Yankee, named after the New York Yankees, and Auzzie, named after Australia.

I’d say I am extremely blessed because I have an awesome family, friends and colleagues – plus I work in an industry that I love.

Q What is your favourite colour of clothes to wear? Why?

Q Name five uses of a cellphone without a battery.

A mirror, a doorstop, a weapon, a ruler and a coaster for my mug.

Q If we came to your home and looked inside the refrigerator, what would we find?

You’ll always find cheese. Fig jam, sour-fig konfyt, Coke Zero, apple juice and still water.

Q If we gave you a hippopotamus would you keep it?

No! It would eat me out of house and home, and probably nibble on me!

Q What fascinates you about life?

People fascinate me. One never knows what your current relationships will yield in the future, and being 60 years old I have experienced people dynamics that have definitely made me think long and hard. Most importantly, I’ve always told my children Tamsyn and Matthew to never forget the people in life who help you to get where you are today.

Kevin Roman is the Chief Operating Ofﬁcer at Pareto Limited and is a specialist in property management, asset utilisation and development facilitation. He has more than 26 years of experience in property management and related services and was previously the Group Chief Executive Ofﬁcer of Hermans and Roman Property Solutions. Pareto Limited has developed an excellent reputation as a highly respected property loan stock company. Its strong focus is on acquiring and enhancing super-regional and regional shopping centres in South Africa, as well as mixed-use developments. Pareto Limited’s mission is to invest in, develop and manage shopping centres on behalf of its shareholders, and to optimally grow its distributions in a sustainable and ethical manner. The company has roots in the Eskom Pension & Provident Fund (EPPF) and the Public Investment Corporation (PIC), which acquired a 40% stake in 2001. The PIC acquired the remaining 60% stake from EPPF in January 2012.

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With a South African property market value in excess of R250-billion, SAPOA members control in the region of 90% of South Africa’s private sector commercial land and building stock, and manage the majority of property funds listed on the JSE. Each member is a leading player and decision-maker in the commercial property arena – and they use the South African Property Review as an extension of the SAPOA website and information platforms. These members – company chairmen, CEOs and MDs – often control massive companies and their associated budgets. As true decision-makers, some of the brightest and most talented people in the sector occupy senior roles in the SAPOA member organisations. The South African Property Review is mailed directly to the association’s leading members, and is also available to the general public both internally and online via Issuu - the online version is an exact copy of its printed original and has on average over 3675 impressions a month, with an average read of upwards of six minutes per issue, giving a monthly reader exposure of over 5000. The true value of the online versions is that they get revisited over and over again and generate a liquid international exposure for your company, making the South African Property Review a ‘must include’ in your marketing plans.

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With a monthly average exposure of more than 5000 readers, the South African Property Review is a growing and recognised news platform and go-to source of important industry information, interviews as well as in-depth African and regional reports.

For advertising opportunities and rates contact Janine Ramey t: +27 (0)21 856 1276 e: janine@mpdps.com Riëtte Stevens t: +27 (0)71 877 5520 e: sales@sapoa.org.za

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2015/10/19 12:17 PM

off the wall

3D printing gets bigger Although it’s a fairly new technology, 3D printing is set to revolutionise the construction industry and change the way buildings, residential and commercial, are developed in the future

n Italian engineering company has created a 12-metre-tall structure big enough to print structures using clay and dirt. It is currently the largest 3D printer in the world. World’s Advanced Saving Project (WASP) designed the 10-metre-wide metal printer to build structures layer by layer using dirt or clay funnelled through a central nozzle. The printer, known as Big Delta, could create homes quickly and energy-efficiently in disaster or war zones to help those who had become displaced. It is also capable of printing beams around three metres in length. WASP claims that 3D printing using natural and sustainable materials is significantly less harmful to the environment than using cement, which generates carbon dioxide. WASP is a unique company. It does not receive any public financing and reinvests all profits entirely into research and development. The sale of the smaller 3D printers represents the mean by which the company intends to fulfil its goal of a giant 3D printer that can help address the dramatic global issue of housing.

Similar to the Big Delta , ZhuoDa Group of China built a furnished two-storey villa in only 10 days, and assembled it all in less than three hours. The modular home was built from prefabricated components that were 3D-printed in a factory before they were transported to the building site. 3D technology is slowly getting its grip on construction with Amsterdam-based design company DUS claiming to have created the world’s first full 3D-printed house in the north of the Dutch capital by the Buiksloter canal. The 3D print canal house is open to the public to tour. In the Philippines, the Lewis Grand Hotel on Don Juico Avenue in Angeles City Pampanga has added a 3D-printed room to its collection. The 3D printer used on this project is still a work in progress, but it is designed in such a way that it can very easily be assembled or disassembled and then moved to another location for a future project in which it can print a large range of designs and design elements.

SOUTH AFRICAN PROPERTY REVIEW

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SAPOA events

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SAPOA events

Proactive Quantity Surveying 3

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

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SOUTH AFRICAN PROPERTY REVIEW

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