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FRIDAY, 7 OCTOBER 2016
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COFFEE, PASTRY AND RETAIL GLAMOUR
GEAR UP: NEW SECTIONAL TITLES ACT
THE DRIVERS BEHIND NEW URBAN DESIGN
CAPE MIXEDUSE PROJECT GETS GOING
Midrand boomtown
There is a buzz around Waterfall, with the new Mall of Africa and plenty of corporate headquarters going up. Midrand is fast becoming Gauteng’s new CBD WORDS: HELEN GRANGE :: PHOTO: SUPPLIED
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LIFESTYLE
Friday October 7 2016
and café that incorporates a capsule emporium of its kind, pairing Third Wave specialty coffee and rooibos with couture patisserie and café food. We bring the best of Paris and New York in a luxurious café bistro-style environment where quality reigns at every level.
A class act Cape Town is home to the first Coco Safar, Caroline Sirois and Wilhelm Liebenberg’s café, patisserie and espresso bar that offers a shot of daily escapism WORDS: KIM MAXWELL :: PHOTOS: KARL ROGERS AND SUPPLIED
Q&A with Coco Safar co-founder and CEO Wilhelm Liebenberg What makes you and life partner Caroline qualified to roll out an international brand? Over more than 25 years we have created and launched several café, coffee, bakery and curated retail branded store experiences internationally. We have successfully worked from North America to Dubai as branding, packaging and marketing strategists for multinational businesses, including luxury real estate, entertainment, hospitality and high-end retail brands, giving us unique insights in all industries related to the Coco Safar business model. What elements were missing during your research and travels? In North America the typical café with table service has more or less disappeared, and upscale café environments are practically nonexistent. The Third Wave coffee revolution resulted in the opening of hundreds of independent espresso bars on the continent, but they mostly offer a great yet very similar
What makes Coco Safar not just another coffee shop? The experience is all about daily escapism: it is the first authentic luxury espresso bar
Explain your “couture quality” concept for the French patisserie at Coco Safar. When speaking of couture quality, we specifically refer to the haute couture nature of our patisserie, which is conceptualised, designed, styled and handcrafted by teams of artisans, just like designers crafting haute couture fashion collections. If the concept is capsules, why does the adjacent Espresso Bar grind beans? The Coco Safar business model is truly innovative: offering specialty coffee drinks at our Espresso Bar and Café, made with our signature beans that can be taken home; and our specialty coffee and rooibos capsules showcasing a range of single-origin, awardwinning auction-lot coffees, put in capsules for the first time and sold at the first retail capsule emporium besides Nespresso.
coffee experience, with limited or no bakery products and minimalistic, too-often uncomfortable interiors. From a retail property perspective, why Cavendish Square as your international flagship? Cape Town’s international profile has risen significantly since 2014 and it has become a recognised hot spot and travel destination. This is where we decided to plant our flag more than two years ago. We were looking for one spectacular retail space that would allow us to best showcase our unique brand and business model. That is what we found at Cavendish, ideally situated in the southern suburbs of Cape Town, where no coffee capsule retail offering existed. The roll-out of other Coco Safar stores in SA and other key global markets is in the works.
Why Woodstock to supply an international coffee and patisserie brand? More than a year ago we opened our central kitchen, patisserie/coffee lab and production facility in Woodstock. We found this neighbourhood to have incredible creative energy with a true entrepreneurial spirit, just like it used to be in the Williamsburg district of Brooklyn, New York. This environment is highly conducive to hosting and managing a production facility where we can train our culinary talent, under the supervision of corporate chefs from New York, focused on producing quality sweet and savoury products daily. As part of our hub and spoke business model, where the production facility supplies several stores, Woodstock is centrally situated with easy access to Cape Town neighbourhoods.
“We were looking for one spectacular retail space that would allow us to best showcase our unique brand and business model” Wilhelm Liebenberg, CEO, Coco Safar
How did your customdesigned Idrocompresso machine come about? Kees van der Westen is the undisputed industry leader from a commercial espresso machine design, technology and manufacturing perspective. Considered a true visionary, he has created some of the world’s most iconic machines ever to be used commercially. Kees gave us exclusivity to a completely new Spirit espresso machine, marrying lever technology from the past that he has brought into
LIFESTYLE
the future, confirming his appreciation of our brand as an emerging market leader in the coffee industry.
JUST ANOTHER STORE? It starts with the Safajores chocolate-coated buckwheat biscuit and glass of water that arrives on a beautiful tray with every coffee order. It continues with a waitress’s descriptions of exotic fillings: colourful operas, star domes and pastries as exquisite to admire as to savour.
Which elements and local design input will you replicate in other stores? Our original store design is reminiscent of the French industrial era and the golden age of travel, with Jules Vernes-inspired design elements — a timeless understated luxury setting that should transport anyone who steps into the store to another place and time. This timeless design will form the basis of all future stores, but allow for some elements to be incorporated in each new location, to give each store a slightly different identity. We intend to almost exclusively use the custommade local furniture, fixtures, décor elements and store cabinets for the brand’s global roll-out as part of a proudly South African export story. The multitude of local artisans used include a Woodstock company that has made equestrian items. They hand-stitched all the linen panels and fine leather details in the contemporary haberdashery-style counters.
PRODUCED BY TIMES MEDIA PROPERTY PUBLISHING Unit G4, Old Castle Brewery, 6 Beach Road, Woodstock, 7925 021 447 7130
Friday October 7 2016
We have ordered high tea for two, served in a trio of sweet and savoury waves (the Third Wave is a purist approach to sourcing, roasting and brewing coffee). A Canadian apricot streusel pecan scone is surprising and crumbly; a keylime and kumquat éclair’s citrus tang perfect. A flat white is rich and strong. A chilled, slow-brewed coffee is spiked with orange peel. At Coco Safar every aspect is crafted. Croissant Benedict breakfasts extend to brioche pizzetta light lunches. The café may be accessed via the din of a shopping centre, but there is a reprieve, thanks to ceiling fans, jazzy tunes and moody ambience that could be in cosmopolitan Vienna or Brussels. During their honing process Sirois and Liebenberg sampled
A EDITORIAL TEAM Editor: Kim Maxwell Creative Director: Mark Peddle Designer: Craig D’Oliveira
from Pierre Hermé’s Paris patisserie to Dominique Ansel’s cronuts in New York’s SoHo. Liebenberg becomes animated when he is describing Coco Safar creations concocted after many product development hours in his Willie Wonka-like Woodstock facility. Nearly everything is created locally for Coco Safar, from leather-stitched armchairs and crockery to eye-catching uniforms. Banquette seating below mirror panels is framed by cast metal with weathered bronze effects. Dangling glass ball lights — they remind me of creamy chocolate truffles — were blown by Red Hot Glass in Paarl. At the adjacent retail capsule emporium, collections of coffee and rooibos capsules entice behind a counter. Their packaging forms a colourful wall backdrop. The espresso bar outside is for a quick, quality coffee stop. It is also a shrine to the iconic Idrocompresso coffee machine, a shiny steel and glass oneoff with leather detailing on surfaces and handles. Says the barista: “It’s like playing with a Ferrari every day of your life.”
PUBLICATION
Editorial Consultant: Bridget McNulty Copy Editor: Lorraine Kearney Content Business Manager: Catherine Davis
ADVERTISING SALES Michèle Jones Susan Erwee Yvonne Botha
michele.jones@thecreativegroup.info susan.erwee@thecreativegroup.info yvonne.botha@thecreativegroup.info
084 246 8105 083 556 9848 082 563 6685
LEGAL NEWS Friday October 7 2016
WHAT HAS CHANGED
The new sectional title rules Five years after amendments were first drafted, the Sectional Title Schemes Management Act comes into effect this month – with consequences for noncomplying property owners, trustees, investors and developers. Here is what you should know
Key stipulations in the act require detailed administration, reporting and auditing procedures. They include:
with an audited annual report. They also need to register a domicile with the chief ombud, local municipality and local registrar of deeds.
Every body corporate has to have a 10-year maintenance plan and a separate long-term maintenance reserve fund based on expected costs. This is apart from a current budget for short-term maintenance. “This could mean that schemes that have not made good provisions already will have a hard time not increasing their levies substantially. Well-run schemes that have sensible, good reserves will have to reallocate their funds to short- and long-term reserves and will be much less affected,” says Spencer.
Any changes that are made to levy contributions and rules must be certified in writing. This applies to levies and to all body corporate rules and regulations.
Whether schemes have strong reserves or not, their levies will have to be revised, if only to include contributions to the CSOS. Given a seed fund of R40m, the service will only partly be funded by taxpayers; it is set to become self-funding through annual contributions from associations and schemes, and those who seek the service’s intervention, for which they will have to pay an application and, possibly, an adjudication fee. The CSOS can be approached not only to settle disputes, but also to help schemes to recover arrears levies. All community schemes need to be registered with the CSOS, and to send regular copies and reports to the new ombud’s office on the financial health of the body corporate, along
Trustees need to appoint a managing agent to run the property. This, says Spencer, is akin to Australian regulations, with an executive managing agent reporting to trustees or owners every six months. “It’s a positive move, as it makes life a lot easier and simpler for owners and trustees, especially with the ruling that the person who handles a body corporate is not allowed to handle funds unless they are registered estate agents.” The act is very specific about scheduling meetings, establishing a quorum and voting by proxy. No person may hold more than two proxies, and an owner may only vote once, irrespective of the number of units to their name. This all has property managers in a tizz. “The proxy rule has advantages as not enough people attend AGMs, so often people had a controlling vote by means of proxy — and one can use it for good, or abuse that power. Now, with limited proxies, chances are they won’t make a quorum, and meetings will be delayed. This makes it difficult for managers, as it will necessitate many more meetings and incur additional costs for body corporates,” says Bauer.
WORDS: LUCINDA JORDAAN :: PHOTOS: ISTOCK
A
mendments to the
Sectional Titles Act brought two interesting legislative developments to the property industry: the introduction of the Sectional Title Schemes Management Act and the Community Schemes Ombud Services Act (acts 8 and 9 of 2011). The latter led to the establishment, in April 2015, of the Community Schemes Ombud Service (CSOS), headed by chief ombud Themba Mthethwa. It sounds complicated (and is) but these changes were aimed at bringing all housingrelated legislation under the administration of the Human Settlements Department, and at helping body corporates to manage and regulate community schemes. These include sectional title development schemes, share block companies, home- or property owners associations, retirement schemes and
housing co-operatives or group housing. Says Michael Bauer, property manager of Cape Town property management company IHFM: “The gist of the acts is in regulation of the industry, which is a good thing: homeowners associations weren’t regulated, so there was no uniformity.” SETTING A STANDARD “Now, compliance is key; there are thousands of sectional title disputes in court and the ombudsman is at least fulfilling the main function: dispute resolution, which seeks to free up the courts and results in settling disputes more efficiently, much faster and more cost effectively. For instance, if you have a problem in a sectional title scheme, you’re looking at R200,000 in legal fees at High Court, while the ombudsman could settle it for
“The gist of the acts is in regulation of the industry, which is a good thing: homeowners associations weren’t regulated, so there was no uniformity” Michael Bauer, property manager, IHFM
as little as R10,000.” This is especially good news for tenants who felt that they had little recourse because of excessive litigation costs and now have rights to complain, says Mike Spencer, owner and manager of Bloemfontein property management company Platinum Global. “The new act will force property owners to look carefully at their management, and how effectively property is being managed,” he says. NEW RULES Publication of the Sectional Titles Schemes Management Act finally grants the ombud greater control and regulation of all community housing schemes and, more significantly, powers to advocate rule amendments to sectional title schemes. This effectively means that communal property owners and associations will
immediately have to gear up on requirements. Says Spencer: “They’ll need to be conversant with the act. And if they run buildings properly, they’ll have no worries. But what’s important to remember is that trustees are now responsible — and more likely to be called out as negligent if not careful. In fact, they could be held liable for malefidi (gross negligence or bad faith) if not registered and compliant with CSOS.” On the whole, property management companies welcome these clear guidelines and stringent regulations, noting that a controlling body was long needed to regulate the industry. And with the CSOS already established, it is hoped it will be amenable to relooking at sections of the act that hamper efficiency or negatively affect the managing of communal schemes.
WESTERN CAPE Camps Bay 021 438 3444 / Southern Suburbs 021 673 4200 / Southern Peninsula 021 782 6440
Camps Bay / R26.75 million
Ref# BAY1284933
Bedrooms 3 / Bathrooms 2.5 / Garages 2 / Superbly positioned, glamorous and luxurious. Modern villa with expansive vistas of the beach, sea and mountains. Open-plan dining/lounge areas with flow to entertainment terrace and pool, perfect for sunsets and sundowners. All bedrooms are luxuriously well-appointed and all have stunning sea views. There is a study as well as a gym room. Bonus – separate superb guest apartment, staff accommodation and double garage. Jodie Taylor 082 667 4770
Constantia Upper / R9.995 million
Ref# KW1284427
Noordhoek / R8.45 million
Ref# NH1285320
Bedrooms 4 / Bathrooms 4 / Garages 2 / This beautiful Cape Dutch situated down a quiet lane has a sense of history, set on a 2 372 m2 erf this family home has much to offer. Take in the magnificent mountain views from the Wisteria draped patio, overlooking the pretty garden. The private pool area offers another wonderful entertainment space and interior living areas are warm and welcoming with an eat-in country kitchen being the heart of the home. A loft with separate entrance.
Bedrooms 6 / Bathrooms 5.5 / Garages 2 / Spacious triple-storey Belvedere family home, entertainment patio, rim-flow pool and offering wonderful sea views. This home offer many fine features and high end quality finishes throughout. A home which will appeal to the executive family who enjoy entertaining in style.
Arie KadĂŠ 083 448 0488 / Angie Bloom 083 678 7876 / Lauren Clark 083 306 3830
Lilian Bron 082 377 3725
DEVELOPMENT
Friday October 7 2016
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Midrand boomtown WORDS: HELEN GRANGE :: PHOTOS: SUPPLIED AND FINEGRAFIX
WATERFALL COUNTRY ESTATE AND VILLAGE
M
idrand was once a no-man’s land, a flat, featureless plain dotted with the odd industrial or business premises. Today it is taking shape as the developed link between Johannesburg and Tshwane, with the Mall of Africa as its centrepiece and new developments sprawling out all around it. The buzz is all happening in Waterfall, the latest growth node in Gauteng and, according to developers, it is poised to be the new CBD of the province. Waterfall sprawls from Modderfontein in the east to beyond Kyalami in the west, and is rapidly becoming a lifestyle and blue-chip business destination. The Mall of Africa, co-owned by Atterbury
Property Developers and Attacq, is the hub of the 323ha Waterfall City development, which is estimated to be carrying a cost of R71bn to complete, with 11 years of building still to go. Predictions are that it will be larger than the Sandton and Johannesburg CBDs in 10 to 15 years. BRAND FIRSTS The R4.9bn, 131,038m2 mall is located at the Allandale interchange on the N1, and every conceivable brand is housed in it — from Versace, H&M and Cotton On to Game, Woolworths and MrP, as well as some international firsts, such as Zara Home and Armani Exchange. The 3ha Waterfall Park adjacent to the mall is taking shape. It features 3,868m2 of
planted garden and 5,715m2 of lawns, amphitheatres, a staging area, exhibition and market space, and recreational spaces. The mall has contributed to a mini property boom in the area, partly because of the shopping traffic it has
“Since more corporates have moved into Midrand, the market has been very dynamic for us” Jessica van der Walt, sales agent, Century Property Developments
WATERFALL PARK TAKING SHAPE
DEVELOPMENT
Friday October 7 2016
estate agent at Platinum Residential, specialising in the Midrand residential market, predicts that the peak of the upswing in Midrand is likely to happen in the next two years, when office workers move into PwC and other corporate offices still under construction. “Sellers in Waterfall City have been on the front foot for a while, but I believe there will be another swell of demand as the new corporate developments finish and become ready for occupation.”
“There’s a high demand from the upand-coming middle class in Midrand, which is urbanised but still has the allure of being away from the city” Ludolf Louw, business development manager, Leogem Property Projects
MALL OF AFRICA created. “There’s always been a high demand for property in Midrand because it’s convenient for people working in both Pretoria and Johannesburg, but with the Mall of Africa, property adverts are being seen by a far wider net of people. It’s increased awareness, and that’s partly why we’re seeing a peak in demand,” says Charl van Niekerk, marketing manager at Central Developments Property, a residential property developer in Kyalami, in Midrand. AFFLUENCE Balancing the Mall of Africa with a more sedate shopping offering is Waterfall Corner, which opened in 2014. It is a modern, largely open-air centre with a piazza and is anchored by Checkers, Woolworths and Clicks. It has a selection of hand-picked stores and restaurants, targeting the affluent residents of Waterfall Hills and Waterfall Valley mature lifestyle villages, Waterfall Equestrian Estate and Waterfall Country Estate and Country Village.
Corporates are the economic engine of modern Midrand. Adjoining the Mall of Africa is the new 26-storey PwC tower, comprising 40,000m2 of modern offices designed to house 3,500 employees, due for completion in 2018. Other new corporate developments include the South African headquarters for Hilti, with its 2,000m2 of offices and about 1,800m2 of warehouse space; healthcare products company Covidien, consisting of a 2,000m2 office component and a 10,500m2 warehouse section; Torre Lifting Solutions; Dimension Data (facility division) and Amrod, all constructed by Atterbury. They join well-known Midrand corporate headquarters such as Norvartis SA, Group Five, Vodacom and Northam Platinum. ESTATE APPEAL Waterfall Country Estate, a 640ha security estate between Woodmead and Kyalami, is attracting top-end rentals from these businesses. Says sales agent for Century Property
“Sellers in Waterfall City have been on the front foot for a while, but I believe there will be another swell of demand as the new corporate developments finish and become ready for occupation” Andrew Pearse, real estate agent, Platinum Residential
Developments Jessica van der Walt: “Since more corporates have moved into Midrand, the market has been very dynamic for us. Rentals average about R38,000 a month, and homes in the estate cost up to R52m.” Estate living is what it is all about in Midrand. Renusha Sookdaw, marketing manager at developer Galencia Property, says investors are focused on Midrand “as the rental capacity is very high”. Prices for units, which Galencia sells itself, start at R850,000 for a two bedroom, one bathroom flat, scaling up to R2.7m for a freestanding three bedroom, 2.5 bathroom duplex. Galencia Property developments have a central park theme: each block has a central garden where children can play and adults can take walks. Says Sookdaw: “We recently launched our new development, Rosa Royale, in Carlswald, Midrand and the response was phenomenal. We sold out 80% of the first two phases on the day of the launch.” Andrew Pearse, real
CASH BUYERS Sectional title units in newly built complexes are being sold by Leogem Property Projects for upwards of R1m. It has Franklin on 8th and Blue Crane Estates, with other developments in the pipeline. Says Ludolf Louw, business development manager at Leogem: “They are selling well, and we’re getting cash buyers — Nigerians and Zimbabweans. “There’s a high demand from the up-and-coming middle class in Midrand, which is urbanised but still has the allure of being away from the city. It has private schools like Curro Castle in Waterfall, shops and amenities on your doorstep.” The Gauteng government is ensuring affordable housing is not being excluded. “We engaged with the developers of the new town in Waterfall Estate and Modderfontein to ensure there will be affordable housing included in these new mega developments,” former Johannesburg mayor Parks Tau said earlier this year. TRAFFIC JAM Transport is presenting a predictable challenge as Midrand booms. Traffic is becoming increasingly heavy on the Allandale and New roads exits from the N1. To alleviate it, developers hope people will use more public transport, such as taxis and the Gautrain buses to and from Midrand Gautrain station. There are also dedicated Uber pickup and dropoff points at the Mall of Africa, a first at a South African retail development. In addition, Atterbury Property Development has built a four-lane bridge over the N1, which creates a new east-west transport route linking Midrand and Waterfall City. It has a walkway and a cycle lane. For Gautengers who have routinely whizzed passed Midrand on the way between Tshwane and Johannesburg over many years, it is all quite mindboggling. It is the inevitable consolidation of two cities in what will ultimately become a 50km expanse of urban development.
Contact John Witter for more information: T: +27 21 425 8586 www.horizoncapital.co.za
INFESTATION_HC_HF_317
Visit our office: Suite 302, Soho-on-Strand, 128 Strand Street, Cape Town.
TImINg YOUR INvESTmENT DIvERSIFICATION IN UNCERTAIN TImES With the current uncertainty in South Africa and the recent collapse of the Rand, investors are justifiably confused as to whether it is too late to diversify their investments offshore. Horizon Capital International believes that given the obstacles that South Africa still has to face over the short to medium term, offshore exposure is essential to an investor’s portfolio, investors just need to time the investment well. Over the period from 1983 to 2016 the Rand dropped from R2 to around R23 to the British Pound. This translates to approximately 1200% over 33 years or halving roughly every 9 years. This is as a result of South Africa having a higher inflation rate than the United Kingdom, running a balance of payments deficit and at various stages of its history experiencing periods of political uncertainty. Were it to depreciate by half over the next 9 years we would have a rate of 40 to the Pound which would make any offshore endeavours very expensive if funded by Rands. One cannot forecast currency movements, particularly in SA, as a lot depends on politics and SA’s possible downgrading by the rating agencies. As predicted by us an article published in Personal Finance in June the Rand is currently experiencing some strength as a result of the interest rate differential between SA and the rest of the world and particularly due to the purchase of SA Breweries by Anhauser-Bush which is expected to go through around the 10th of October. There will be a huge inflow of foreign currency into SA which may already have started via the forward markets for what is the biggest payout in South Africa’s history. This external purchase of Rands from offshore
is resulting in some temporary Rand strength, giving us a chance to diversify at more attractive rates. Secondly as a result of Brexit the British Pound has weakened, even against the Rand, presenting a great opportunity to take advantage of these two short term currency movements to buy Pounds for offshore investment. As we have the possible rating downgrade of South Africa by the rating agencies in December this opportunity may be short lived. In 2015, growth slowed to 1.3%. This was the lowest growth seen since the global financial crisis and below most emerging-market economies and commodity producers. With growth for 2016 expected at 0.2%, and only a muted recovery for 2017, the looming downgrade seems to be a likely prospect. If South Africa is downgraded‚ investors will lose confidence in the country‚ the prices of our assets will drop because of the lack of demand for our debt and our shares listed on the JSE‚ the Rand will weaken further‚ inflation will shoot up and the average South African will have to endure higher costs for goods as well as higher interest rates. Horizon Capital International has focused on investing in residential property in Bath, United Kingdom for its clients since early 2015. Bath was chosen in view of its Roman history and architecture, excellent schools, two universities, its low crime rates, low property price volatility and steadily increasing growth, which is robustly ahead of the surrounding areas.
In addition, the British government is currently building a new electrified high-speed train line from Bristol via Bath to London Paddington which is already resulting in Londoners taking profits and buying in Bath. The new line will be completed in 2017 cutting travel time to under an hour, creating an opportunity for more Londoners to move out to what will be a far more affordable and pleasant living environment, now within an easy, convenient commute. As far as Brexit is concerned, many countries operate outside of the European Union and are able to survive quite comfortable. While the UK business cycle will take a short-term knock as a result of the immediate impact of Brexit, the impact is likely to be short and temporary. Furthermore, for foreigners that are wanting exposure to the UK, certain bubble conditions in the London property aside, the recent depreciation of the Pound offers investors a fresh opportunity to expose themselves to the UK as significant discount to what was the case 6 months ago. The apartment buyer profile in Bath last year moved from 10% to 50% Londoners with a resulting commencement of price outperformance. The two universities have also recently announced that they intend increasing their combined student intake by 10,000 students which will result in more lecturers, professors and associated staff renting in Bath. Horizon Capital International has established an office in Bath and sources, purchases, arranges finance and manages residential apartments in Bath for its High Net Worth clients.
Putting passion back into property
Hazeldean Office Park, Pretoria East
The reality of property management: “It’s all about people.” It’s this ethos, at the core of Sabreal Property Management, which has given them the edge in property management for over 20 years. The Gauteng-based property management and property rental company is known for its exceptional service, established systems and procedures, which they apply to their comprehensive portfolio of properties in the province. Yet when it comes to managing properties, no matter if it’s a small estate in Fourways or a 950ha residential node in Hazeldean, Sabreal has always put their focus on people to elevate their service levels. “As a company, we’ve learnt that property management needs as much attention and energy to go into the physical asset as to the needs of the residents using the property” says Elizah Knipe, Director at the Johannesburgbased company. She explains that by working closely with Bodies Corporate, Home Owners Associations and residents themselves, her team can quickly get to the root of the issues faced by the particular estate. This in return results in finding solutions for the bigger issues sooner but also picking up the smaller details that make living in an estate or node such a pleasure. Sabreal offers a comprehensive range of sectional title management and administration services to Sectional Title Schemes, Full Title property owners and Home Owners Associations. Services include property, financial and administration management. Going beyond their management functions, Sabreal also offers leasing administration services and has an immaculate track record in renting out investor’s properties to screened and qualified tenants.
Service offering at a glance • • • • • • • • • •
Financial & administration management Lease administration Procedures and financial controls Reducing vacancies Annual budget preparation Full income, expense and capital budget reporting Monthly operational budget management Monthly completion of VAT returns Managing of dedicated trust (bank) account Rental determination, collections, legal management and other controls • Income/expense budgeting and controlling, as well as cash flow management • Manage debtors and creditors (including Municipal Council and Eskom accounts) • Estate Management
Forming part of an already established group of property developers in both residential and commercial sectors, Sabreal has the support and guidance of many experienced property mentors, which have helped them to establish their leading reputation over the years. The company also values the importance of staff, their property know-how and enthusiasm, as pointed out by Sabreal Manager, Chris Harris: “The people working at Sabreal know that a person’s property, no matter how big or small, will usually be one of their biggest investments, and that’s why we manage it as if it were our own”. Sabreal’s portfolio of properties includes estates and complexes in Bryanston, Broadacres, Waterfall, Fourways, Heron Banks Golf Estate as well as several estates and office parks within Hazeldean, Pretoria ranging from luxury retirement villages to quaint bachelor apartments.
For more information contact Elizah Knipe or Chris Harris at 011 510 9999, info@sabreal.co.za or www.sabreal.co.za
Waterfall Valley Retirement Estate
URBAN DESIGN
Friday October 7 2016
Creating cities of the future Excellent transport systems and superior connectivity are a necessity in smart cities across the world, and profoundly affect property investment WORDS: MEG WILSON :: PHOTOS: SUPPLIED
R
apid urbanisation will arguably be a major factor influencing property values in SA for the foreseeable future. It is for this reason that competent local government and adequate systems are vital. Home prices are essentially driven by demand and generally there are few who would choose to buy in a town or city where the population growth has exceeded planning and management capacities. People may be forced to live in such a place to find work, but they are not going to put down roots and buy a home there. This leads to all sorts of problems, not least of which is the expansion of informal settlements that tend to make the city even less attractive to investors.
It also tends to result in the rapid erosion of the rates base, which means local authorities are even less able to provide basic services or respond appropriately to fires, floods or droughtinduced water and food shortages. DESIGN SOLUTIONS Fortunately, there is now a much greater awareness of the risks, says former Tshwane executive mayor Kgosientso Ramokgopa. Last year, the city hosted the initial African Capital Cities Sustainability Forum as well as the signing of the Tshwane Declaration, which commits local city authorities across Africa to design and implement sustainable urban development solutions. These aim to overcome the
challenges presented by rapid urbanisation and maximise the opportunities it presents. Speaking at the opening of the Sustainability Week 2016 convention earlier this year, Ramokgopa, still in his seat as mayor, noted that many of these cities – and several of the provincial capitals of SA – had already embarked on projects to address some of the major goals contained in the declaration, including: Prioritising the reduction of informal settlements and improved access to basic services such as clean water, electricity, health services and urban food production programmes. Adopting innovative waste management systems that will encourage recycling, as well as the development of energy from waste sites and
processes required for gas extraction. Developing the social and technical infrastructure of cities to facilitate both connectivity and ease of conducting business. Supporting green initiatives that promote job creation as well as stimulate industrial activity, while preserving natural resources. These can all make local cities more attractive places in which to live and invest. TRANSPORT PLANS From a real estate point of view, those cities that are likely to have the biggest impact in the near future are those designed to improve access to public transport and to the internet, as well as those that are steadily creating employment in
“It is also vital for cities committed to reducing their carbon emissions, a large percentage of which are produced by vehicles powered by fossil fuel”
Clean water
Electricity
Health services
Urban food production
Technical infrastructure
Green initiatives
Innovative waste management
Carbon emission reduction
URBAN DESIGN
project, which includes route extensions from Sandton to Randburg and Honeydew, and then on to Cosmo City, Fourways, Bluehills and Samrand. Ultimately it will also connect Soweto and Mamelodi (see map). Similarly, they are likely to find new investment opportunities or experience strong property value growth along new routes as the bus rapid transit networks expand in other cities. TECH EFFECT Reducing the need for people to commute at all is another major trend likely to have a profound influence on lifestyles and thus on real estate markets. One way to do this is to improve connectivity and access to the internet. This enables more consumers to work from home, more micro-businesses to make use of online ordering, banking and payment methods, and more
Friday October 7 2016
underresourced schools to access the latest teaching content to provide pupils with a better education and improved employment prospects. A passionate advocate of this approach is James Devine, chief innovation and information officer of Project Isizwe (projectisizwe. org). The global NGO is currently working with the City of Tshwane to roll out the biggest free Wi-Fi network in the country. Speaking during the Sustainable Infrastructure Seminar, Devine explained that the plan was to provide every resident of the metro with free access to the internet via a Wi-Fi hot spot within walking distance of their homes. This is already improving the lives of millions of people and creating localised economic growth that will inevitably lead to higher housing demand and property value growth in specific areas.
“Reducing the need for people to commute at all is another major trend likely to have a profound influence on lifestyles and thus on real estate markets”
the green food, energy and waste management sectors. Speakers at the Transport and Mobility Seminar at the conference noted that access to safe, efficient and affordable mass transport was an especially important — and sensitive — issue in local cities because of apartheid spatial planning, which forced millions of people to spend long hours and 30%-70% of their daily wages on travelling from townships to their places of employment. It is also vital for cities to be committed to reducing their carbon emissions, a large percentage of which are produced by vehicles powered by fossil fuel. Even as cities are being replanned to provide more equitable access to resources and
economic opportunities, it is important that mass transport systems are expanded and promoted instead of focusing on the roads, which are expensive to maintain. ECONOMIC BOOST What is more, rapid mass transport systems such as the Gautrain and the MyCiti, Rea Vaya and A Re Yeng bus transport networks are already generating major economic spinoffs. The Gautrain is a case in point: a recent report by international auditing company KPMG showed that in the five years between 2009 and 2014, more than R10bn had been invested in new and upgraded retail developments within 10km of the Gautrain stations.
This boosted the gross domestic product (GDP) of Gauteng by some R28bn and helped to create almost 150,000 jobs. A combined R12.9bn increase in the value of residential properties close to the stations had added a further R18bn to the region’s GDP and another 98,000 jobs. The good news for property owners, investors and developers is that the Gautrain Management Agency is conducting feasibility studies on the next phases of the overall
GAUTRAIN NETWORK AND PROPOSED NEW RAIL LINKS
Mamelodi Hatfield
In order of priority 1. Sandton – Honeydew
7
Pretoria
2. Ruimsig – Samrand 3. Samrand – Tshwane East
Tshwane East
Centurion
4. Rhodesfield – Boksburg
Irene
5. Westgate – Park
3
6. Naledi – Ruimsig
2
7. Tshwane East – Mamelodi
Samrand Blue Hills
Sunninghill
Midrand
Fourways Cosmo Malboro Ruimsig
Roodepoort
6
Honeydew
Lakeside
Randburg Sandton
1
Rhodesfield Rosebank Park
Westgate Naledi
OR Tambo
5
4
East Rand Mall
Boksburg
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PROPERTY NEWS Friday October 7 2016
Construction confidence back above 50
T
he FNB/BER Civil Confidence Index gained 11 points to register a level of 52 in Q3 2016. This means that confidence has gained 24 points in total since Q1 2016. Confidence was lifted by a notable improvement in overall profitability due to less keen tendering price competition and continued (albeit subdued) growth in construction activity. Confidence was higher despite soft growth in construction activity. According to Statistics SA, growth in the real value of construction works slowed to 0.2% year on year in Q2 2016, from 4.6% in Q1 2016. On a
quarterly basis, construction work was up 8%. While growth in construction activity remained under pressure, survey respondents noted that the lack of demand for new work was becoming less of a business constraint. Says FNB senior industry analyst Jason Muscat: “This possibly reflects some work coming through, likely from the renewable energy sector. However, this may not be enough to support the entire industry.” Looking ahead, construction activity is set to remain under pressure during 2016, although order books have improved.
100
FNB/BER CIVIL CONFIDENCE INDEX
PERCENTAGE SATISFIED 75 100
50 75
Sitari releases The Boulevard
S “The interior finishing of the apartments in Sitari Country Estate is at a standard not yet seen in the Helderberg area” John Coetzee, Uvest Property Group director
itari Country Estate outside Somerset West has launched The Boulevard complex, with 68 flats consisting of one-, two- and threebedroom units priced from R825,000 to R1.995m. There has been no stock to sell for the past 10 weeks, leading to a waiting list for new releases. Says director of Sitari developers Uvest Property Group John Coetzee: “Sitari sold out its first four apartment blocks with an average of 15 sales a month. Our record was selling out the entire Little Blossom complex of 55 apartments in only two weeks.” It was followed by
25 50
Woodbury Lane, 50% sold out before release. Bridgewater was released soon afterwards. The waiting list had grown to “close on 300 registered buyers” according to Coetzee. The Boulevard buyers can choose from two interior themes that specifically revolve around their kitchens. The Soho Chic theme includes a freestanding five-burner gas/electric oven by Italian manufacturer Smeg. The Greenwich Village theme includes a built-in oven, hob and extractor by German appliance brand Miele. There are also engineered stone kitchen counters and Grohe taps throughout, as well as large walk-in showers. The flats include covered
parking bays and there is a limited number of optional storage units. Says Coetzee: “The interior finishing of the apartments in Sitari Country Estate is at a standard not yet seen in the Helderberg area. This, combined with Sitari’s carefully considered landscaped park spaces and wide range of amenities — that include a Curro private school, shopping centre, clubhouse with deli restaurant and heated outdoor pool — puts the estate in a class of its own in the Western Cape.” The next complex that will be released will be Waterford Place.
0 25 2000 2001 2003 2004 2006 2007 2009 2010 2012
0
2000 2001 2003 2004 2006 2007 2009 2010 2012
C
onstruction has started at The Yacht Club, Amdec Group’s R1.3bn mixed-use development in Cape Town. The Yacht Club is within the Roggebaai Canal Tourism Precinct, at the gateway to the city’s waterfront and a stone’s throw from the Cape Town International Convention Centre. It will comprise a hotel operated by a leading international brand (to be announced soon) and apartments in two towers, set on a podium of premiumgrade office space. The development manager is the Amdec Property Group, part of the Amdec Group, which also developed Johannesburg’s Melrose Arch. Amdec Property
Development MD Nicholas Stopforth says work this year will focus on the basement levels. Construction will be seen above ground from January 2017, and will be complete in May 2018. About 80% of the 170 flats have been sold. They range from 54m2 to 99m2. Stopforth says the flats have been particularly popular with investors. Amdec is turning its attention now to the office component space of about 6,550m2. The Yacht Club is a live, work, play environment within a safe, secure and prestigious precinct. Says Stopforth: “It also connects seamlessly with the city’s major business districts, SA’s commercial hubs and beyond.”
2015
2016
2013
2015
2016
CIVIL CONSTRUCTION
GROWTH IN CONSTRUCTION ACTIVITY 75
Expected Q4 2016
50 75 25
Expected Q4 2016
50 0 25 -25 -50 0 -25 -75 -50 -100
2002 2003 2004 2005 2007 2008 2009 2010 2012 2013 2014 2015
Source: BER Stellenbosch University -75
-100
Work starts on The Yacht Club
2013
2002 2003 2004 2005 2007 2008 2009 2010 2012 2013 2014 2015
Priced from R1.85 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 - No. 5 The High Street, Melrose Arch.
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