Business Day Home Front 01 July 2016

BDlive.co.za | @BDliveSA

FRIDAY, JULY 1 2016

HOMEFRONT PAGE 2

PAGE 10

SHORTMARKET CLUB OPENS IN STYLE

CAPE TOWN’S INNER CITY REJUVENATION

PAGE 15

STOR-AGE PROPERTY FUND SOARING

PAGE 15

WORK STARTS ON TSHWANE MALL

Straight A for student flats The academic year started with protests against a lack of student accommodation. This increasing need has encouraged private developers to step into the gap WORDS: KIRSTEN HILL :: PHOTOS: SUPPLIED

CONTINUED ON PAGE 6

FOOD AND DESIGN

Friday July 1 2016

“It’s bringing in a bit of an industrial modern edge” Sandalene Dale-Roberts

Ladies and gents, lunch The Shortmarket Club has opened its doors in Cape Town, promising opulent décor and trendsetting inner city eating with old-world leanings WORDS: KIM MAXWELL PHOTOS: SUPPLIED

T

he Shortmarket Club has opened, sandwiched in a pedestrian lane between Cape Town’s Bree and Loop streets. Chef Wesley Randles and manager Simon Widdison are the hands-on component of a four-way partnership. It includes Luke and Sandalene

Dale-Roberts of The Test Kitchen and The Pot Luck Club, where Randles and Widdison previously worked.

In creating the Shortmarket Club, designer Sandalene Dale-Roberts has transformed a run-down nightclub. She designed and made the dining banquettes to leather and brass bar counters, and sourced waitresses’ bowties to black braces.

Diners take the staircase to the first-floor bar, where Argentinean stained glass sliding doors open to a dining room, marrying the two spaces. Says DaleRoberts: “There is the bar with its masculinity and moodiness. I wanted it so that when you step into the dining room there is a more luxurious, softer feeling.”

Shortmarket Club’s décor has attitude and perkiness, plus nods to the past in vintage lamps suspended above tables and a set of old architect’s drawers doing duty

as a cutlery station. Colours are muted in brown leather bar tables and red and green chairs. Pale grey, circular dining banquettes create what Dale-Roberts calls an “old English, slightly colonial, smoky cigar bar” feel.

Antique mirrors with patina add glamour to the modern bar. Peter Eastman’s black screens were laser-cut to add visual interest on staircase walls and on exterior panels of the bar, pastry area and kitchen. “It’s bringing in a bit of an industrial modern edge,” says Dale-Roberts.

But the restaurant’s focal point is undisputedly the wall of glass-mounted paper butterflies. Old till slips and invoices from The Test Kitchen and The Pot Luck Club were colour-washed and burnt by hand by artist Mark Rautenbach, beautifully emulating collections of pinned insect specimens. theshortmarketclub.co.za

Chef Wesley Randles on The Shortmarket Club I’ll take you through the menu. Lunch or dinner is contemporary but classic: organic grass-fed beef carpaccio on goat’s milk ricotta, with a dressing of miso-cured egg yolk and barrel-aged cherry vinegar dashi, served with frozen Parmesan and burnt onion powder. Or you could order Saldanha Bay oysters. There are dressing options — you could have a spicy Tiger’s

milk dressing, or just oysters clean. You could finish work in the afternoon, sit in the bar and have the perfect martini with fresh oysters.

There is lamb rump, roasted over the wood fire, served with lamb rosemary jus and a Consol jar of mint jelly on the side. On the plate is fennel fondant, instead of classic potato fondant, roasted down until caramelised.

It comes with leeks sous

vide and fennel seeds, pine nuts and pine needles.

The dining process is a little bit of theatre and fun.

We have bread trollies and cheese trollies running up and down the aisles. The waiter will bring a tray with four plates on it. We created the menu and style for this space. We can bring back that old-world dining where every table is looked

FOOD AND DESIGN

after really well, but with that bit of theatre at the table so the dining is fun.

“We can bring back that old-world dining where every table is looked after really well, but with that bit of theatre at the table so the dining is fun”

The point of the menu is to challenge your focus and taste buds. The restaurant doesn’t feel pretentious. It lies between upmarket casual dining (The Pot Luck Club) and extreme fine dining (The Test Kitchen). We’ve never touched on breakfast in any of our restaurants so that’s a whole new thing. Our style of breakfast is recognisable but extremely different.

We know Cape Town has quite a breakfast culture. It’s going to take something different and creative to separate us.

We’ve tried to be original. It won’t be eggs and a croissant.

So we have a Scotch egg. It’s a boiled egg in a layer of pork farce and caramelised onion, on a bed of wild mushrooms, kale, crème fraiche and grated truffle. Another dish is organic trout, hot-smoked inhouse, then glazed with sweet miso butter. It’s served with organic poached eggs and three-month fermented cream. Nobody touches fish for breakfast in Cape Town usually. That’s the idea: we can draw people in because

Wesley Randles our breakfast is different.

I’ve always wanted to do an amazing roasted chicken at the table. So we have a petit pousson. It’s a twoday cooking process. The chickens are cured and stuffed with chestnuts, lemon and fynbos, slow-cooked sous vide individually, then roasted in the oven, glazed in olive oil. At the table we present it in chestnut husks set on fire, so we are smoking the chicken on arrival. The garnishes are classic. We’re serving roasted parsnip and bread sauce, with organic roasted baby beet and tarragon gravy.

CHEF WESLEY RANDLES AND SIMON WIDDISON

The food style is a complete mix and match. You can’t say any of the dishes are Asian or something else.

We’ve taken amazing South African produce and used

them with techniques we know. I’ve worked with Luke for nine years so I’ve learnt to manipulate the flavour using Asian ingredients in such a way that we can bring out the best possible product. We use certain Asian ingredients to make the dish — not Asian — but the best it can possibly be.

I wanted to do a lemon tart that is so much more. When it arrives at the table it looks like lemon tart. But lemon geranium is blended into the crust, and the custard filling has a touch of saltiness from preserved lemon. It is caramelised and served with strawberry and amasi ice-cream, and finished off with lemon charcoal and strawberry dust. I don’t like to screw around and add a million purees to the plate.

But then it has to be the perfect lemon tart.

Friday July 1 2016

I’ve always wanted to be an all-rounder: very capable in pastry, but also on the sauce section or grill. Luke always said to be a really good head chef you needed to be able to jump on every section at any time and be better than everyone else.

It’s important that you can do that, especially if you have your own restaurant.

Simon and I have worked together for years. He is an all-rounder but he knows his wine pretty damn well.

I started at La Colombe with Luke just before I turned 21, then at The Test Kitchen (Simon was the GM opening it). Simon and I opened The Pot Luck Club together in 2013.

I try to make sure that I am not just following trends.

You start off with a base: something completely original. Then you can add techniques that you’ve seen somewhere and create something which is completely different.

That is just progression; it’s not copying. The first and foremost focus here is flavour. Everything needs to be delicious first.

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CONTINUED FROM PAGE 1

Straight A for student flats “Addressing the crisis of pass rates begins with providing students with the living environment that 21st-century student life requires” John Schooling, CEO, Stag African

STUDENT AT HOME

s the demand for student accommodation continues to far outweigh supply, and university heads concede there is a crisis, new opportunities have opened up for developers and investors.

More than 1-million students are registered at private and public universities in SA, and opportunities for property investors are seemingly infinite. Rising maintenance costs, ageing residences and other issues have limited the growth options for on-campus student housing, despite increased allocations for upgrades.

Many universities simply do not have sufficient space or possibility for new developments and are outsourcing their accommodation needs to private developers and building managers, creating

Friday July 1 2016

excellent investment opportunities.

A vote of confidence came from Redefine Properties, SA’s second-biggest listed property company, when it bought a 51% stake in Respublica for R204m last year. Fast becoming a major student bed developer, Respublica has a current capacity of 2,700 beds across its fully serviced Johannesburg and Pretoria residences. It hopes to increase this to 20,000 beds in the next four years through new developments, on and off campuses.

TREMENDOUS DEMAND Craig McMurray, CEO of Respublica, says the demand for student housing is tremendous. In a recent Business Day article, he said the private sector was best placed to provide student accommodation. However,

PROPERTY SHORTAGE

“We’ve seen interesting repurposing of old C-grade buildings becoming quality accommodation for students” Rob Kane, chairman, Cape Town Central City Improvement District

late registrations following #FeesMustFall protests and late examination results would place increased strain on private student residential providers, he warned. He also acknowledged that bad accommodation had a high correlation with students’ failing, especially in their first year of study.

forward, but in response to the ongoing shortage, a number of visionary property developers are also regenerating city centres and bustling neighbourhoods across the country. Many are achieving this by converting old office blocks into modern one-bedroom or studio flats for rental to students.

MODERN STUDENT LIFE Stag African CEO John Schooling agrees.

“Addressing the crisis of pass rates begins with providing students with the living environment that 21stcentury student life requires.

What’s more, the likelihood of a first-year student passing is increased from 60% to 80% if they stay in residence,” he explains. “The negative pass rate is even more staggering at previously disadvantaged universities, where it is common for six or more students to share a room simply because there is no alternative.”

The property development company is renowned for its creation of on-campus student residences. Stag African recently completed a 380-bed residence at the Buffalo City Campus of Walter Sisulu University. It is working on a University of Fort Hare residence that will add about 2,046 beds.

It is a significant step

BRAAMFONTEIN HUB South Point Properties, one of the country’s largest student accommodation providers, was established in 2003 when, as its website states, it “found exploitative landlords to be the prevailing alternative to inadequate oncampus housing and with the majority of students residing

in poorly maintained and expensive accommodation”.

In 2004, the company acquired seven buildings in Johannesburg’s Braamfontein student hub and housed 350 students in private flatstyle accommodation that provided quick access to transport services such as the Rea Vaya Bus Rapid Transit System, the Gautrain bus routes and taxi ranks within walking distances.

Twelve years later, the company has well over 20 buildings and houses more than 20,000 students in Johannesburg, Port Elizabeth, Pretoria, Durban and Cape Town. South Point has helped to develop

“We pride ourselves on three specific things: security, location and comfort” Emily Whitefield, CEO, Student at Home

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definitive new-generation student precincts and there seems to be “knock-on regeneration” effects taking place nationally.

CONTAINER SOLUTION In 2015, property management company Citiq officially opened its Umhlanga Junction Extension, a 75-bed student block in Johannesburg’s Brixton that is built entirely from shipping containers. The Caroline Street building was erected within two months. “We believe Brixton has amazing potential because of its location and the many historical buildings that lend themselves to repurposing and refurbishment,” Citiq CEO Paul Lapham said at the time. “Brixton is convenient for students studying at the University of Johannesburg and catering specifically for the needs of students and hopefully helping them achieve academic success.”

Small businesses and individual entrepreneurs can invest in student accommodation relatively easily. They can buy and redevelop houses and flats, and rent them to students.

For financing help, there are partners. The Gauteng Partnership Fund is a public sector affordable housing delivery vehicle that collaborates with the private sector to develop student accommodation. It uses the Student Accommodation Fund to take up equity stakes in student housing projects. These projects tend to be inner-city residential refurbishments, conversion of offices to residential units and greenfields developments.

Says Rob Kane, chairman of the Cape Town Central City Improvement District: “Student accommodation was, until fairly recently, a market largely ignored by developers in this area, but entrepreneurs are now steadily filling the gap. Over the past few years, we’ve seen interesting repurposing of old C-grade buildings becoming

Friday July 1 2016

quality accommodation for students, some of which are also being used by young professionals starting out.”

FULLY STOCKED A range of student accommodation has opened in the Cape Town CBD too. These include 91 Loop Street, South Point on Barrack Street, Student & Life at 210 Loop Street and Student At Home at 106 Adderley Street. The last houses 300 students on six floors and is expanding storey by storey as the floors fill up. It will eventually house about 450 students.

Student at Home flats, as with most private student flats, have all the furnishings students need, including a bed, desk, cupboard, TV and kitchen appliances. All flats also have their own standard bathroom with shower, basin and toilet.

Student At Home provides an uncapped fibre line, 19 channels of DSTV and a weekly cleaning service plus a laundry facility.

Each room is fitted with a pre-paid electricity meter.

As with most residences of this sort, there are house rules regarding access times, visitors, drinking and safety, among other things.

Student at Home CEO Emily Whitefield says: “We have an on-site 24-hour security company that mans both entrances to the building as well as perimeter checks. We have cameras on every floor, plus a biometric fingerprint system. We pride ourselves on three specific things: security, location and comfort, as well as access to a mind-boggling array of retailers, nightspots and restaurants, 22 museums, a public library, the Company’s Garden and a multitude of private galleries and several transport options.”

The demand for student accommodation continues, pushing up prices. As accommodation costs rise, poorer students will increasingly find themselves in tough competition with those who can afford to pay.

PROPERTY TREND Friday 1 July 2016

How Cape Town’s CBD is winning Inner city living in Cape Town is in demand and driving a wave of new development, leading many potential investors to ask themselves: should I buy now?

WORDS: BRENT SMITH AND GEORGINA GUEDES :: PHOTOS: CAPE TOWN CENTRAL CITY IMPROVEMENT DISTRICT

PROPERTY TREND Friday 1 July 2016

` CAPE TOWN CBD RESIDENTIAL PROPERTY A tale of three CBD apartment blocks over a 10-year period best illustrates how the market has evolved across different types of buildings.

S

ince 2013 the property success story of the Mother City’s CBD has been well publicised. Here the past 10 years of redevelopment are coming to fruition and more than R8bn worth of new builds or refurbishments are set to take place over the next five years.

This includes some 250 new residential units currently under construction, which will add significantly to the approximately 3,500 units already in the area.

20 YEARS OF CHANGE The upliftment of the city centre owes its success to a long-term strategy implemented by the Cape Town Central Improvement District (CCID).

Chairperson of the CCID Rob Kane says that the first developments that were envisaged to transform the Cape Town Central City into a residential downtown opened their doors in about 2005.

These included a handful of new builds along with a number of refurbished office buildings that had previously been underutilised. Investors took notice, with many leveraging to purchase multiple apartments.

However, the global economic crash of 2008 hit and a large number of units were returned to the market, many of which sold at a loss.

“It was only after the 2010 Soccer World Cup that there was sufficiently renewed interest in downtown living to spark the residential market again,” says Kane.

This means that some units in certain developments effectively took eight years to reach their investment potential.

“It was about 2013-14 that we started seeing the price correction overall in the CBD start to kick in properly,” says Kane.

He believes that

investors looking for property should do so now, because the CCID predicts that when the units currently under construction start transferring to their owners later this year, property prices in the CBD could rise to R35,000/m2.

Seeff Cape Town CBD agent Alan Screen agrees.

“To be honest, it’s cooking.

A well-priced unit — less than R2.5m — will fly off the shelf within a week. I recently sold an apartment sight unseen to a woman from Johannesburg.

We’re mostly seeing investment buys, but young professional buyers are also flocking to the area.”

LOW STOCK Growing demand, coupled with a shortage of stock in the CBD, has led to average sale prices in the past three years rising from R1.428m in 2013 to R2.031m in 2015, according to The State of Cape Town Central City Report, the CCID’s latest annual investment guide.

Pam Golding Properties’ Laurie Wener, senior executive for developments in the Cape region, says that while the number of unit sales in the CBD dropped between 2014 and 2015 — from 191 to 185 — this was due to lack of stock, not lack of demand.

“Demand exceeding supply has pushed prices up. The scenario of unit sales being down, but value substantially up, continues,” she says.

The stock shortage has been the driving force behind the substantial investments in new developments made by companies such as Signatura that, at a cost of R1bn, is converting Riebeek Street’s Triangle House (a former commercial

building) into the Radisson Blu Hotel & Residence that will feature 11 storeys of designer apartments.

Signatura founder John Rabie says Cape Town’s CBD is SA’s closest thing to a European urban area, where everything is within walking distance and there are good public transport links. “We think with the investment in infrastructure that is taking place such as the MyCiTi bus, as well as the upgrading of the fibre optic network, the CBD is set to become a true 24-hour place where people want to live.”

Signatura MD David Cohen is of the view that despite marginal national economic growth, Cape Town affords a lifestyle that many people are seeking.

“This is why there is currently so much ‘semigration’ from other parts of the country and why we think there stands to be quite good capital appreciation for owners,” he says.

But new developments such as Portside, a joint venture between FirstRand Bank and Old Mutual, now housing FNB, RMB, WesBank and Ashburton, also signify the growing confidence that big business has in the upliftment of the area.

Sedgwick points out that initiatives such as First Thursday — drawing people into the city on the first Thursday night of a month to visit galleries, bars and stores — have contributed to restoring people’s faith in the area.

The turnaround has been significant and the CCID’s star is rising, with investors and homemakers snapping up well-priced properties.

“It’s obviously down to good governance. A turnaround like this can’t happen overnight — it’s the fruit of all the investment starting to come to life,” says Sedgwick.

Cartwright’s Corner in Adderley Street was one of the first commercial buildings to be converted to residential in the mid-2000s. Marketed as a luxury development, facilities include an indoor swimming pool and gym.

With many buyers purchasing for investment with an intention to rent out the units, the smaller flats sold relatively quickly.

Unit size range: 45m² to 314m² 2006 sale price range: R835,000 to R3.5m 2016 sale price range: R1.55m to R6m 2006 levies range: R825 to R2,000/month 2016 levies range: R1,800 to R4,200/month 2006 long-term rental range: R3,500 to R7,500/month 2016 long-term rental range: R8,000 to R20,000/month St Martini Gardens in Queen Victoria Street is a large complex with landscaped grounds overlooking The Company’s Garden. It is an established, albeit fairly ordinary, residential complex.

Facilities include extensive communal gardens and an outdoor swimming pool.

Unit size range: 28m² to 146m²

2006 sale price range: R460,000 to R1.8m 2016 sale price range: R650,000 to R4m 2006 levies range: R690/month 2016 levies range: R814 to R1,085/month 2006 long-term rental range: R2,100 to R4,500/month 2016 long-term rental range: R5,500 to R16,000/month Senator Park at 66 Keerom Street, overlooking Long Street, is a decades-old residential block — but one that has seen a turnaround from an officially declared “problem building” to a development success story.

Erected as a “no frills” building with all 43m² bachelor apartment units, it lies in the heart of Long Street’s vibrant nightlife district. A development success story, it is now largely populated by young professionals.

All units: 43m² 2006 sale price range: R200,000 to R300,000 2016 sale price range: R900,000 to R995,000 2006 levies range: R690/month 2016 levies range: R1,026/month 2006 long-term average rental range: R2,500 to R3,000 2016 long-term average rental range: R7,500 to R9,000/month

SAFETY FIRST David Sedgwick, Horizon Capital MD, adds that compared to other CBDs in SA, the whole of Cape Town’s inner city has been targeted for redevelopment.

“The whole CBD is viable, as opposed to small districts — other inner cities have much smaller pockets where things have turned around,” he says.

He adds that while there was certainly work to be done in Cape Town, the city was never abandoned by big business.

“Woolworths head office, Standard Bank and Engen have always been there, so the CBD perhaps didn’t have to turn around from such a low point as other inner cities.”

“A turnaround like this can’t happen overnight — it’s the fruit of all the investment starting to come to life” David Sedgwick, MD, Horizon Capital

CARTWRIGHT’S CORNER

021 801 5400 082 511 1115 sales@msp.property

Where to buy?

WESTERN CAPE 12%

The Western Cape House Price Index rose by 12% (year-on-year) during the 1st quarter of 2016.

Of all the major Rand Area regions, the Western Cape had the highest house price growth in South Africa during the 1st quarter. This is the highest growth rate since the 1st quarter in 2006

Western Cape

According to TPN (Tenant Profile Network), the Western Cape has the highest percentage of residential rental tenants in good standing by major province and stands at 88.7%

Best buy?

2 Bedroom - Sectional Title

When looking at Gross Yields by Title Deed and Room number, it is Sectional Title that generally looks the most attractive and 2 bedroom apartments perform best currently.

Sources: TPN and FNB

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2011 LAUNCHED FIRST BRICK February April

FIRST HOME REGISTERED End 2011

3299 TOTAL ON COMPLETION

TYPICAL CASE STUDY IN BUH-REIN ESTATE

51sqm

2 Bedroom, 1 Bathroom Sectional title

1220

321

1758

2011

2016

Launched price

Current price

R424 900

R729 900

72% Capital growth over 5 years or 14% p.a.

Initial monthly rent

Completed properties

Under construction

R3 200p/m

To still be completed

Current monthly rent

R6 500p/m

103% Rental growth over 5 years or 20.6% p.a.

VIDA NOVA - APARTMENTS

CHANDELLE - APARTMENTS

SEVILLE - TOWNHOUSES

FROM R 649 900

FROM R 739 900

FROM R 1 399 900

Vida Nova offers 139 one and two bedroom apartments.

Chandelle consists of 147 luxurious apartments.

Seville offers 31 Single residential townhouses.

All apartments come standard with fitted blinds and built-in cupboards in all bedrooms. Wall units and granite tops with mosaic splashbacks creates a certain style of elegance in the kitchen. Every unit features a built-in braai with covered patio. For your car’s care a covered parking bay is included.

All apartments come standard with 2 bedrooms, built-in-cupboards, a fully fitted kitchen that includes wall units with granite tops. The outside area offers a covered patio with built-in braai and limited units include exclusive use gardens.

Ideal for pet lovers.

All rooms come standard with built-in-cupboards, double volume ceilings, a fully fitted kitchen with a gas hob and separate scullery. It is finished off with granite tops and mosaic splashbacks. A built-in braai and private garden, ideal for pet lovers.

All costs included | No Deposit

1

1

1

Covered Parking

All costs included | No Deposit

2

1

1

Parking bay

All costs included | No Deposit

3

2

1

Terms & Conditions apply

www.msp.property

MSP ADVERTORIAL Friday July 1 2016

ADVERTORIAL

BENEFITS TO BUYING IN A NEW ESTATE OVER A TRADITIONAL SUBURB TRADITIONAL SUBURB

NEW DEVELOPMENT

Deposit required – up to 10% of the house value in transaction costs and deposit

Deposit required – zero All costs included

No guarantees Water leaks, faulty wiring, wood beetle etc Buh-Rein in Buh-Rein Estate is a prime example of a convenient location with excellent security, great value-added services and excellent capital growth. About 3,000 people now live at BuhRein Estate, with 1,758 of 3,299 properties still to be completed.

Guaranteed quality New homes come with guarantees and no hidden risks (NHBRC)

GET IN TOUCH

MSP Developments Tel: 021 914 6703 E-mail: sales@msp.property www.msp.property www.buhrein.co.za

Why everybody loves estates Estate living is proving to be extremely popular, given its lifestyle and security benefits, with impressive growth figures being recorded at the sprawling Buh-Rein Estate WORDS AND PHOTOS: SUPPLIED

Buh-Rein Estate in Cape Town’s Northern Suburbs is a prime example of a convenient location with excellent security, great value-added services and excellent capital growth.

CEO of MSP Developments Riaan Roos, the brainchild behind the award-winning estate, explains what is behind the increased popularity of living in and investing in estates.

My aim has always been to offer value-added homes to regular South Africans, and this is the sector where the estate market is picking up considerably — and we know that this trend is set to continue.

Research by Lightstone on estate living in SA shows that for the top 10 highest number of transactions within estates in the past five years, Buh-Rein Estate comes in fourth place, with 797 properties sold. As we know, buyers are drawn to the Western Cape in particular, and they are also drawn to the four major factors offered by estate living: security, convenience, lifestyle and value for money.

Lifestyle leanings It is clear that security considerations are a major issue for residents and investors in estates, and one that we see continuing to be a factor for a long time to come. Convenience and the lifestyle elements included in some estates are also key drivers for potential buyers and investors.

Looking at Buh-Rein Estate, you could buy a similar apartment elsewhere, but you would not get all the amenities and extras that we provide as

part of the MSP philosophy.

These include 24-hour on-site patrolling vehicles, precinct access control, remote access gates and perimeter fencing. The estate also features day/night CCTV, dome cameras and highspeed broadband internet. The Lifestyle Centre, which will house a restaurant, kids’ play area and a swimming pool, will be opening very soon. A multipurpose sports field, outside gym, Bootcamp and weekly tag rugby will ensure residents enjoy a healthy lifestyle with various opportunities to interact.

We don’t only build homes; we also build communities.

By the end of 2017 the highly anticipated Checkers shopping centre will also be on site, together with some line shops, adding even more convenience.

Public transport to and from the estate includes Golden Arrow buses as well as a daily private shuttle service (HG Travel).

In terms of price, the properties definitely offer value for money. All costs are included and up to 100% bonds are available from the major financial institutions — which is what people want. We offer apartments and duplexes to double-storey townhouses, priced from R649,900 to R2m. An investor recently came to buy one property and ended up taking four in three property developments in Buh-Rein Estate. We restrict sales to individual investors to a maximum of two apartments

per complex, and only 40% of apartments within a specific complex are earmarked for property investors. The reason for this is because we want the majority of people staying in a complex to be the owners rather than mere tenants. By doing this, you make sure that everyone’s asset is protected.

A healthy balance between owners and tenants is vital.

Investment growth The popularity of estates leads to some remarkable statistics in terms of amazing growth that investment properties achieve, as well as impressive growth in monthly rental income.

For example, in BuhRein Estate a two-bedroom apartment (51m²) bought for R424,900 in 2011 now carries a price tag of R729,900. This equates to roughly 72% capital growth over the five-year term, or just more than 14% a year.

These properties almost doubled in value and the annual growth achieved also outperformed inflation (currently at 6.2%) by far.

Regarding monthly rental income, these apartments were initially rented out at R3,200 a month; current monthly rental income stands at R6,500 — 103% growth over the five-year period, or 20.6% a year. Properties in Buh-Rein Estate achieve on average R1,000 to R1,500 a month more than similar properties in the immediate surrounds.

Ideal property Not only is Buh-Rein Estate the ideal place for investors or for first-time buyers, it offers a large selection of properties that are perfect for retirees wanting to scale down. In essence, estate living can offer the perfect lockup-and-go solution, giving you peace of mind when leaving your home, whether it is for business or pleasure.

Since 2002 we have delivered about 6,000 properties, and one can only truly achieve success when one answers the needs of the buyer. You have to adapt and adhere to market conditions and where the demand lies.

It is for these reasons that I remain positive about market take-up of our estate offerings going forward, with investing and living in estates set to become more and more popular.

BUH-REIN ESTATE AT A GLANCE 3,299 homes in its own suburb 87.62 hectares 1,220 completed properties 321 under construction 3,299 total properties planned 3,000 current residents

PROPERTY NEWS Friday July 1 2016

ONE-STOP SHARED OFFICE SPACE AT ONE CHADWICK One Chadwick Co-Working Space has opened off Grayston Drive in Sandton.

It has been developed by XtraSpace, the company that opened the high-end Melrose Arch FlexiOffice last year.

“What makes One Chadwick special is our unique combination of services, which enables the small business owner or entrepreneur to have his office, warehouse and logistics service all under one roof,” says chief operating officer Colleen Mansour. “It’s a turnkey solution for entrepreneurs, helping equip them with everything they need to grow their businesses.”

Membership packages start at R1,750 a month.

There are 50 individual serviced offices with reception, a business centre and concierge. One Chadwick also offers highspeed internet, meeting rooms, boardrooms, a logistics service with a local and international courier service, 250 secure and dedicated storage units, and SpaceBox, the company’s online valet storage service.

It also has a fully equipped event space, the Willowood Atrium, with stage, projector, sound and catering facilities.

Mari Schourie, CEO of XtraSpace FlexiOffice, says there are numerous gains in developing co-work spaces, taking into consideration PricewaterhouseCoopers research showing human resources professionals’ predictions that at least 20% of their workforce would be contractors or temporary workers by 2022.

According to Mansour, XtraSpace FlexiOffice has taken “meeting at a coffee shop” to a whole different level.

“Co-working space will provide you with all the benefits of a traditional office within an established business environment at a fraction of the cost,” says Mansour.

ONE CHADWICK OFFERS Serviced offices from one-man to large team offices from R2,700 a month Virtual office space on a month-to-month basis from R900 a month Open plan co-working office space starting from R1,750 a month Private working/meeting booths with screens for presentations Video conferencing in the main boardroom

Stor-Age’s maiden results outperform projections

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A’s largest self-storage property fund, Stor-Age, has posted its maiden annual results, which have outperformed its pre-listing forecasts. In the four and a half months since listing to March 2016, distributions to shareholders have amounted to R39m, which translates to 30 cents per share — 4.7% ahead of forecast.

This performance was supported by strong demand, 11% annualised escalations and growth in portfolio occupancy to 86%, and rental income of R54.9m, which came in 3% higher than forecast.

The company listed on the JSE in November last year as the first real estate investment trust of its kind on the exchange. “We are pleased to have achieved a very attractive set of results in such a tough economic environment,” says Stor-Age CEO Gavin Lucas.

The key elements that contributed to the successful results are that self-storage

is an almost entirely needsdriven market that trades very well in all economic cycles, he says. About 70% to 80% of Stor-Age’s customers are individuals, from working class to upper middle class.

Says Lucas: “We are in a consumption-led economy, and we consume more than we ever have in the past, acquiring goods faster than ever before. At the same time, living spaces are becoming more dense and efficient, providing us with less space to store our stuff.”

The balance of Stor-Age’s customer base is represented by the commercial segment and SMMEs in particular.

“Our records show us that our average term is 21 months, but we don’t tie our customers into long-term contracts, which makes it attractive for them.”

Based on this set of results, Lucas says that Stor-Age has reaffirmed its distribution growth forecast of 10% annualised growth to March next year.

“We are pleased to have achieved a very attractive set of results in such a tough economic environment” Gavin Lucas, CEO, Stor-Age

Work starting on Tshwane Regional Mall Atlantic Seaboard house fetches record R290m

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onstruction of the Tshwane Regional Mall began in June, according to the Public Investment Corporation (PIC) and Isibonelo Property Services. Building costs of the mall are estimated at R996m, with part of the funding provided by the PIC. The mall was called a catalytic project at the Tshwane International Trade and Infrastructure Investment Conference in May. It is expected to change the shopping experience for residents of Mamelodi and surrounding areas.

It is close to transport routes and 3,000 taxis are expected to operate on site daily. There are also plans to link the mall with other transport modes such as Tshwane Rapid Transit and Gautrain routes.

Gross lettable area has been allocated: about 17,403m2 for fashion, 12,020m2 for supermarkets, 8,188m2 for general stores and 5,031m2 for sit-down

restaurants and a food court.

The remaining space will go to government offices, medical services, general stores, health and beauty, financial services and homeware.

Tshwane Regional Mall will supply facilities for about 600 informal traders and offer about 3,750 job opportunities. Construction is expected to provide 1,500 job opportunities. Another 2,250 job opportunities are expected following construction in retail, cleaning, security and maintenance.

Says PIC CEO Daniel Matjila: “The PIC is pleased to have partnered with Isibonelo Property Services to construct the Tshwane Regional Mall.

This is done in line with our developmental investment mandate, in terms of which we seek to generate returns for our clients, while at the same time contributing to the development of the areas in which we are invested.”

Bantry Bay residence on Cape Town’s Atlantic Seaboard was sold for R290m in May, a record price achieved and the highest price ever achieved for a residence in SA, according to Dogon Group Properties CEO Denise Dogon and her partners Adrien Epstein and Vicky Atlas.

Epstein, who introduced the buyer and closed the deal, says the German industrialist is “very happy with his purchase”.

He had been looking at buying a property in Saint Tropez or Ibiza but settled

on the Cape Town home.

The property is situated on three erven comprising 5,200m² overlooking magnificent views of the ocean and the Twelve Apostles.

The modern house, by design and architecture company Saota, has luxurious accommodation and state-of-the-art finishes throughout.

The fully furnished and equipped property features: • A 2,800m2 home (including garden and terrace) on a 5,200m2 property • 360° views of Lion’s Head,

• • • • • • •

Table Mountain, Twelve Apostles, Clifton, Atlantic Ocean, Bantry Bay and Robben Island Five family bedrooms Three guest bedrooms Two staff bedrooms Open-plan living areas Level garden and terrace with wraparound pool Garaging for 12 cars VIP security

Total sales for the team in May were R470m.

Total sales for Dogon Group Properties as a whole were R600m, of which 85% was on the Atlantic Seaboard.

Priced from R2.25 million. No Transfer Duty.

One-on-Whiteley, the new residential phase of Melrose Arch, is the ultimate in luxury cosmopolitan living. When you invest in an apartment at One-on-Whiteley, you are investing in a secure, convenient and vibrant lifestyle.

One-on-Whiteley provides an amazing opportunity to be part of the success and attraction that this unique new urban quarter offers. By owning an apartment in One-on-Whiteley, you open the door to 21st century living.

On Show at the Pam Golding Office and Amdec Property Café - High Street, Melrose Arch.

To be part of the ultimate in luxury cosmopolitan living, please contact: Peet Strauss 074 683 1222 • pstrauss@pamgolding.co.za Victoria Russell 074 683 1222 • victoria.russell@pamgolding.co.za Tersia Taljaard 063 695 7571 • tersiat@amdec.co.za Office: 011 684 2995/6 • pamgolding.co.za/melrose-arch

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Amazing Rooftop Pool and Sun Deck.

NEW INVESTOR APARTMENTS IN ROSEBANK From only R1.7 million.

Rosebank / Priced from R1.7 million. No Transfer Duty.

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ON SHOW: Weekdays 9am - 5pm. Sunday 12pm - 5pm.

To become an investor today or add to your property portfolio, please contact: Victoria Russell 074 683 1222 • victoria.russell@pamgolding.co.za Theo Joannides 081 313 4907 • theo.joannides@pamgolding.co.za Office: 011 268 1637 • pamgolding.co.za/property-development

I M AG I N E WH AT A R870 M I L L I O N H OT EL C A N D O F O R YO U R L I FES T Y L E , A S W E L L A S I N V E S T M EN T.

PEERLES S PED I G R EE .

BY A PP O I N T M E N T.

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A p a r t m e nt S h ow ro o m , U n i t 1 2 4 23 , T h e H o u g hto n o n t h e 1 2 t h , 5 3 , 2 n d Ave n u e.

WESTERN CAPE AN ENCHANTING GARDEN, MAGNIFICENT VIEWS AND PRESTIGIOUS POSITION This gorgeous country style home, provides the perfect setting for sublime entertaining. A spectacular integrated bar/family/entertainment room, with pizza oven, overlooks the pool and magical garden with mature treed borders, encompassed by panoramic north facing mountain views. Spacious accommodation with glamorous Master Suite, totalling 5 bedrooms and 5 bathrooms, gym/studio and study plus staff room. Generous 3 car garaging, massive extra car parking and space for boats, borehole water, and good security, completes this picture.

BEDROOMS: 5 BATHROOMS: 5

BISHOPSCOURT R15.95 million

Ingrid Hoaten 082 490 6246 Charne Shipper 083 274 6336 Web Ref: 105107

GAUTENG A DREAMY 1940 ART DECO, 4 BEDROOMED, FILM MOGUL’S MANSION Exquisitely appointed. Stylish drawing room, dining room seating 14 guests, an Escoffier kitchen, breakfast room, magnificent Cherrywood library, quiet secluded Rosewood reading room, magical cottage garden and en suite cottage, two fitted studies, plush pyjama lounge; large heavenly formal garden; sophisticated ultramodern SQ; garaging for 4 cars.

BEDROOMS: 4 BATHROOMS: 4 Rowland Hill 082 683 2702 011 880 3550

HOUGHTON

Web Ref: 105241

R10.9 million

WESTERN CAPE MAGNIFICENT MODERN MASTERPIECE IN STONEHAVEN! This home really does have the WOW factor.

Boasting four sea facing bedrooms with the main being an exceptional room. The open plan reception and dining areas open onto the patio and indigenous garden which overlooks a quaint dam. The large patio wooden deck area looks out over the Atlantic Ocean and Chapman’s Peak. Offering garaging for two cars and plenty of off street parking. The added bonus of a large indoor store room makes this luxury living at its best! With only 127 Cape Vernacular designed luxury homes set in a spacious eco environment, Stonehaven incorporates both peaceful and secure country living.

FISH HOEK R5.45 million

BEDROOMS: 4 BATHROOMS: 3 Chantelle van Zyl 082 565 7950 021 785 5931 Web Ref: 104961