HOMEFRONT Konnect, The Design Network by Blok, curates local design collaborations across multiple platforms and disciplines. The latest iteration of this network manifests itself in two exquisitely finished apartments in Blok’s TWO16ONHL development in Sea Point. Proudly collaborating with two Konnect partners, Weylandts Spaces and Dark Horse, each of these two apartments embody the perfect balance between modernity and simplicity. These urban homes at 216 High Level Rd, Sea Point will be open for viewings over the next few weeks from Sunday 8 October between 2-5pm or by appointment. 13 OCTOBER 2016 WWW.BDLIVE.CO.ZA 6 OCTOBER 2017 WWW.BUSINESSLIVE.CO.ZA Contact us on +27 87 820 0050 or sales@blok.co.za for additional information or visit blok.co.za.
MUST READ
Marble’s boutique butchery PAGE 2
Best-performing suburbs in SA PAGE 4
Boost for SA’s retirement sector PAGE 8
Easier lease terms give startups a leg-up Key to the missing middle? PAGE 22
Developers who have adjusted their approach to accommodate the needs of new businesses are creating a buzz PAGE 12
HOMEFRONT DINING
Raising the steaks The Butchery by Marble in Rosebank, Johannesburg, extends this restaurant brand to a dazzling retail space that makes buying meat a boutique experience WORDS: JULIA FREEMANTLE :: PHOTOGRAPHS: ELSA YOUNG
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hile the plan existed all along to open a retail branch that would run parallel to top restaurant Marble in the Keyes Art Mile in Rosebank, Johannesburg, the team took some time to hone its offering and come to know its clientele before opening The Butchery by Marble. Gary and Irene Kyriacou, chefs David Higgs and Andy Robinson took a year to launch phase two, a specialist butchery. Downstairs from the restaurant, it’s a retailmeets-deli-meets-wine bar concept that takes everything you think you know about butcheries and turns it on its head. Butcheries aren’t glamorous? Wrong. You wouldn’t want to eat a meal in one? Wrong. This is a fresh notion
that combines the traditional idea of going to specialist suppliers for your groceries (butchery, baker, cheesemonger) with a contemporary experiential concept.
LUXURIOUS “We researched several butcheries and meat establishments to inspire us, but one stood out and that was Victor Churchill in Sydney. “Once we laid eyes on this space, we knew that Johannesburg needed a butchery as luxurious,” says Irene Kyriacou, who is responsible for creating a design that stands alone but also relates to the design language of Marble. What is most striking is that it is not what you would expect. By taking the spirit and stylistic influences of Marble and giving them a slightly different
spin, Kyriacou has created a related, but unique aesthetic. Inspired by the influence of its location on Keyes Art Mile, the butchery space feels almost gallery-like in its use of materials and abundance of natural light. Glass-partitioned mini-booths with elegant upholstered sofas and marble-topped tables for two line a wall constructed from glass to show off the creeper-covered staircase to Circa Gallery. From here you have the benefit of watching the restaurant team in action in a glass cube lit from below — a theatrical detail that epitomises the layered concept that underpins Marble.
SENSUAL FEAST Presided over by chef and butcher Andy Robinson, working with Higgs since Marble’s launch, and before that with Higgs at The Saxon, it’s a feast for
HOMEFRONT the senses. Robinson began his career as a dishwasher at a restaurant in the UK before being moved to the kitchen. From there his trajectory was swift — from commis chef to working with Gordon Ramsay in just more than a year. Robinson wants not only to provide a beautiful product, but to help the clientele learn how to cook, prepare and choose meat. “It’s an opportunity for the customer to benefit from our expertise — which I think there’s a need for,” says Robinson. He has noticed a big change in how people view the process — one that has informed how the concept for The Butchery by Marble took shape. “There was a time people didn’t want to
know where their meat came from. “Now that people are showing interest there is a gap for the service we offer,” Robinson says.
CUSTOMISATION A cheese and charcuterie platter or a cup of coffee is on offer while your order is prepped, or it makes for a convenient stop on the way home to buy dinner. There is a big focus too on customisation —the exact quantity and preparation can be requested if you cannot find what you’re looking for in the huge range on display. From confit duck legs and wagyu beef, to Argentinian oxtail or baby quail, the beauty is that there is something for everyone —
“We researched several butcheries and meat establishments to inspire us, but one stood out and that was Victor Churchill in Sydney” Irene Kyriacou, designer
from the passionate cook keen to prep his cut of meat himself to the busy entertainer who wants to grab a roast chicken injected with lemon juice and garlic, ready to pop into the oven. “We can do anything,” says Robinson. “We had a client come in and try our chateaubriand injected with truffle oil and dipped in duck fat and green peppercorns. “She came back three times that week for the same thing.”
UP THE ANTE In addition to the huge variety of meat is an artisanal homeware offering — salt and pepper cellars, ceramic platters, branded linens. It’s a smart addition that makes for great gifting or allows you to up the ante at your own table. “Entertaining is part of our lifestyle and it made sense to offer our patrons products that complement the experience,” says Irene Kyriacou.
BRAND PILLARS These three pillars of the brand — craft, experience and expertise — create a rounded experience of product and service that will appeal to the love of luxury and lifestyle in Johannesburg. The Butchery by Marble aims to take this concept further — butchery classes began at the end of September — with groups learning from the experts. There are plans to extend the deck out front. Watch this space. PRODUCED BY BLACKSTAR PROPERTY PUBLISHING Unit G4, Old Castle Brewery, 6 Beach Road, Woodstock, 7925 021 447 7130
A EDITORIAL TEAM Editor: Kim Maxwell Designer: Samantha Durand
PUBLICATION
Copy Editor/Managing Editor: Michael van Olst Production: Joanne Le Roux Content Business Manager: Catherine Davis
ADVERTISING SALES Michèle Jones Susan Erwee
michele.jones@thecreativegroup.info susan.erwee@thecreativegroup.info
084 246 8105 083 556 9848
HOMEFRONT TREND
SA’s most valuable suburbs A recent SA property report compared property sales and trends from Q2 2016 to Q2 2017 to produce a list of the most valuable and best-performing suburbs WORDS: BRIDGET MCNULTY :: PHOTO: ISTOCK
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rivate Property’s Property Report has revealed some interesting movements in the South African market. Compiled using median asking prices of residential properties added to their website for each quarter, the data provides early insights into price trends. To maintain consistency over time and assist comparison between locales, data is presented only for areas with 100 or more listed properties. It is grouped by the following common attributes of residential properties in SA: Type (houses, townhouses or flats); Number of bedrooms (between two and five bedrooms for houses, between two and four bedrooms for
• •
townhouses, between one and three bedrooms for flats); Price (low: up to R1m, mid: between R1m and R2m, high: more than R2m); Size (small: between 20m2 and 120m2, medium: between 120m2 and 240m2, large: between 240m2 and 800m2); and Some effort is made to exclude outliers from the analysis. Bear in mind these are insights based on trends in asking prices rather than eventual sale prices. The asking price is usually higher but more immediately available. It is important to note price trends for all listings on Private Property’s website reflect aspects of the composition of the market
• •
•
for sale in each quarter. This differs from some analysis of sale prices that track individual properties as they are offered for resale over time. With those parameters in place, the list below is the 10 most valuable suburbs, reflecting the total rand value of all new stock listed on Private Property in Q2 2017. The most valuable suburbs combine high property values with a large number of listings. The only anomaly is Montana, which has a relatively low median price but the overall value of the suburb is high due to its high number of listings. Using data to track price trends is a helpful tool for property investment — especially if it highlights surprise areas where growth is higher than anticipated.
BEST PERFORMING
Suburb
Year on year % Q2 2016 v Q2 2017 price
The Wilds, Pretoria East (South)
65%
Lynnwood, Pretoria Central and Old East
56%
Edenglen, Edenvale
52%
Stellenbosch Central, Stellenbosch
48%
Umdloti, North Coast KZN
41%
Strand Central, Strand
41%
Wonderboom South, Moot
37%
Rustenburg Central, Rustenburg
35%
Mount Edgecombe, Umhlanga
34%
Benoni CBD, Benoni
34%
MOST VALUABLE
Suburb
Value of stock (Rand in billions)
Median price
Midstream Estate, Centurion East
4.3
R3,25m
Bryanston, Sandton
3.1
R3,37m
Morningside, Sandton
2.3
R2,5m
Zimbali, Ballito
2.1
R7,95m
Umhlanga Rocks, Umhlanga
2.1
R4m
Camps Bay, Atlantic Seaboard
2.0
R15,95m
Sea Point, Atlantic Seaboard
1.9
R4m
Montana, Northern Pretoria
1.6
R1,15m
Midstream Ridge Estate, Centurion East
1.6
R4,2m
BEST-PERFORMING SUBURBS While the above list reflects the most valuable suburbs in SA, the bestperforming suburbs are very different: those with the largest Q2 2016 v Q2 2017 increase in the median asking price of a property. Some values may be distorted due to the method used. The comparison was of the median property in a suburb, but the property size (number of bedrooms) may not be the same, so it is not necessarily a likefor-like comparison.
WESTERN CAPE AtlanticSeaboard 021 439 7415 / Southern Suburbs 021 673 4200
Tamboerskloof / R14.75 million
Ref# CB1337055
Bedrooms 3 / Bathrooms 4 / Garages 2 / Seamless fusion of sophistication and modernity, this elegant Edwardian villa inspires and impresses at every turn. Beautiful interiors with an innovative and minimalist design, it makes the perfect backdrop for the large deck and lap pool framing Table Mountain views.
Bev Josten 082 571 6755 / Riaan Ackermann 079 016 6700
Bantry Bay / R12.95 million
Ref# AS1312116
Constantia Rural / R11.25 million
Ref# KW1335431
Bedrooms 2 / Bathrooms 2 / Parking 1 / This innovative home designed by leading decorator John Jacob, is marked by a wealth of luxuries. Exquisite formal reception rooms, lounge, dining room and kitchen are interlinked for perfect entertainment. Courtyard with plunge pool and lush potted topiary garden. Magnificent furnishings and fittings are included in the price.
Bedrooms 5 / Bathrooms 5.5 / Garages 3 / Entertainers’ haven with panoramic mountain views. Welcoming entrance courtyard with a Mediterranean ambiance. Inviting entrance hall which leads to luxurious entertainment spaces including the lounge, dining and family rooms, plus a home theatre room with built-in drinks server.
Jackie Rosenberg 083 414 6600 / Janice Toay 082 770 1510
Mark Bayly 083 270 2446 / Julia Torrente 083 633 7614
CAPE WHALE COAST Arabella: 028 284 9385 • Betty’s Bay: 028 272 9145 • Hermanus: 028 312 1110 Kleinmond: 028 271 3423 • Onrus: 028 316 3390 • Pringle Bay: 028 273 8326
We are Rooi Els
Rooi Els / R3.8 million Bedrooms 4 / Bathrooms 2 / Garages 2 Views you’ll never tire of. Located on the mountain slope, this spacious home is all about the magnificent views over False Bay from Cape Point to Devil’s Peak. Ref# KN1335142 Nicola Lloyd 082 443 8326 / Wendy Cilliers 072 340 8263
Ref# KN1333871
Ref# ON1266481
Ref# ON1339887
Betty’s Bay / R2.7 million
Chanteclair / R1.55 million
Vermont / R2.195 million
Bedrooms 4 / Bathrooms 2.5 / Garage 1 Front row lake property boasting exceptional lake and distant sea views. Tastefully renovated home with open-plan living spaces. Undercover patio with braai. Perfect for bird watching and sundowners.
Build your dream home on this large 2 504 m² stand and enjoy spectacular views and sunsets.
Bedrooms 3 / Bathrooms 2 / Garage 1 This well-maintained home ticks all the boxes. Ideal as a starter or holiday home. North-facing with lovely mountain views.
Sandra Boshoff 082 873 0166
Sandra Boshoff 082 873 0166
Mary-Louise 082 594 0949 / Peta 083 528 1290
Ref# HF1334646
Ref# HF1329451
Ref# SW1336010
Fernkloof Village / R15.5 million
Fernkloof / R9.6 million
Somerset West / R4.295 million
Bedrooms 4 / Bathrooms 4 / Garages 2 Understated elegance combined with indulgent seaside living. A blend of architectural mastery and excellent taste. Expansive, open-plan reception rooms lead to an inviting covered patio with north-facing pool.
Bedrooms 5 / Bathrooms 5 / Garages 2 Elegant and exclusive living. This exceptional residence has been professionally renovated with fine workmanship, high-end accessories and attention-to-detail. Uninterrupted mountain views and private access to the Mussel River.
Bedrooms 5 / Bathrooms 4.5 / Garages 3 Generous family home, set up for separate entrance dual-living or simply an extended large family space. Close to popular high school.
Heather Kleynhans 083 285 2777
Santa Bedeker 082 772 7052
Gisela Spingies 082 771 3157
CAPE WINELANDS Franschhoek: 021 876 2100 • Paarl: 021 871 1480 • Somerset West: 021 851 2633 Stellenbosch: 021 887 1017 • Wellington: 021 873 4557
We are Franschhoek
Franschhoek / R3.95 million Bedrooms 3 / Bathrooms 2 / Garage 1 This charming cottage is situated in Victoria Village gated estate. The open-plan lounge and dining area has high ceilings and large windows. Seamless flow to the separate kitchen. Single garage and guest parking, views and good finishes complete the picture. Ref# FWI1335371 Jeanine Allen 082 410 6837 / Doug Gurr 0726107208 EXCLUSIVE MANDATE
Ref# FWI1328502
Ref# WEL1337094
Ref# TK1336473
Franschhoek / R5 million
Wellington / R2.399 million
Paarl / R7.995 million
Vacant land with spectacular views. One of the last opportunities to design and build your home on a large plot within a security estate in Franschhoek.
Bedrooms 3 / Bathrooms 2.5 / Garages 2 This warm family home is tucked away and very private. Situated in Dukes Estate opposite a greenbelt area with stunning views of the farmlands, Groenberg and Bainskloof mountains.
Bedrooms 4 / Bathrooms 4 / Garages 3 Professionally landscaped with water wise garden. Ultra-modern Cape Vernacular single-storey. Magnificent wine cellar for passionate wine connoisseur. Various private courtyards.
Lynette Kannemeyer 082 672 1022 / Erika Odendaal 082 412 6964
Jordan 083 298 1481 / Hayley 082 926 8587 / Igna 082 884 8492
Jeanine Allen 082 410 6837 / Doug Gurr 0726107208
Ref# FWI TK1337819
Ref# TK1335765
Ref# SW1337116
Paarl / R13.5 million
Paarl / R14.5 million
Somerset West / R1.9 million
Bedrooms 4 / Bathrooms 3 / Garages 2 Ultra-modern and immaculate. Walking distance from club house, entertainer’s delight. Specially designed cellar and playroom. Staff accommodation.
Bedrooms 4 / Bathrooms 3 / Garages 2 Indoor/outdoor living at its best in sought-after estate. This house is in a fabulous position on the Winelands Estate with uninterrupted views across the valley of the Simonsberg Mountains. A comfortable well laid-out home.
Bedrooms 3 / Bathrooms 2 / Parkings 2 3-Bedroom first floor apartment, facing the golf course. All standard appliances included as well as lifestyle facilities. 2 Parking bays.
Jordan 083 298 1481 / Hayley 082 926 8587 / Igna 082 884 8492
Lynette Schoeman 082 553 3045
Gisela Spingies 082 771 3157
HOMEFRONT INVESTMENT
PSG and Evergreen collaborate With a massive capital injection in Evergreen Lifestyle, PSG Alpha Investments intends to boost SA’s retirement property sector WORDS: MIRIAM MANNAK :: PHOTOS: SUPPLIED
Evergreen at Lake Michelle, Noordhoek
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SG Alpha Investments, known for its substantial interests in SA’s largest private education group Curro Holdings, has ventured into retirement property. The subsidiary of JSE-listed Investment holding company PSG Group made a R675m capital injection last month, its largest capital investment in the company’s 20-year existence. The deal with Evergreen Lifestyle makes sense, says PSG CEO Nico de Waal, despite tough economic conditions.
OPPORTUNITIES “PSG is always on the lookout for opportunities for excellent long-term growth potential,” he says, noting that the abovementioned transaction did not involve the purchase of existing shares but the creation of new ones. “This investment offers the possibility of creating a competitive advantage by building a trusted
Evergreen Broadacres, Johannesburg
leading national retirement property brand.” There are a number of reasons PSG, which with the deal owns a 50% stake in Evergreen, has ventured into SA’s retirement lifestyle sector, says De Waal. One is that constantly changing retirement lifestyle expectations of a growing population of pensioners are not being met. “The number of people above 60 years old is expected to grow from 4.3-million now to 6.8-million over the next 19 years. Every year, 140,000 individuals will join this age group,” he says. The problem is that the market is not delivering what this group wants and needs. “This means there is room for innovation.” Evergreen Retirement Holdings CEO Arthur Case agrees. Existing stock consists largely of hospital-like old-age and nursing homes, he says. This is something today’s generation of retirees are no longer interested in. “Instead, they want to keep
INDEPENDENCE Evergreen is doing just that by offering a retirement lifestyle in secured villages that feature all essential amenities, from leisure to healthcare services, without infringing on people’s dignity and independence, says Case. He says Evergreen’s purchasing structure is based on the so-called life rights model. This option allows retirees to use a unit within a retirement village and all
EVERGREEN LIFESTYLE: PRESENT AND FUTURE 2017 Five villages in Cape Town and Johannesburg / 501 units / new locations in the pipeline in the Cape Winelands, KwaZulu-Natal and Port Elizabeth / Gross asset value: R1.8bn (prePSG transaction)
2020 target
SA’S RETIREE DEMOGRAPHICS Indian/ Total
Black African
Coloured
Asian
White
1996
2,803,433
1,898,156
208,846
66,103
630,328
2011
4,151,759
2,722,572
356,639
144,827
927,721
Caption
2030
6,765,147
4,329,134
684,150
375,871
1,375,992
*CAGR (2011-2030)
2.60%
2.47%
3.49%
5.15%
2.10%
*Compound Annual Growth Rate Source: Statistics SA
their independence and lifestyle while having peace of mind in terms of security, healthcare and maintenance.”
Nine villages in Cape Town, Johannesburg, Durban and Port Elizabeth / 3,000 units / Gross asset value: R7bn
2022 and beyond 20-plus villages in major metros including Cape Town, Johannesburg, Durban and Port Elizabeth / 10,000 units / Gross asset value: R20bn-plus
HOMEFRONT its facilities for the rest of their lives in exchange for a capital investment paid to the complex’s owner — which remains the unit’s proprietor and is responsible for maintaining the units, village and facilities. “The village’s owner is invested in its retirees for life. We sign a partnership for life, obliging us to take care of our residents,” Case says. Life rights purchases are between R800,000 for a two-bedroom apartment to R5.9m for a
TOP 10 RETIREMENT ESTATES IN SA Constantia Place Evergreen Bergvliet Evergreen Noordhoek Evergreen Val de Vie Mount Edgecombe Retirement Village The Plettenberg Manor San Sereno The Somerset The Tokai Estate Waterfall Hills Mature Lifestyle Estate Source: AfriAsia Bank New World Wealth, September 2017
home on a 200m2 plot. On moving out, a unit is ceded back to the owner. The occupier is refunded the capital investment. “Should an occupier pass away, the surviving spouse continues to live in the unit,” Case says. “Upon their death, the sum becomes part of the deceased’s estate. With life rights, you enjoy the privileges of owning a property without owning the property. You are getting the capital investment back.” Evergreen Lifestyle has five such retirement villages across SA, including Broadacres near Fourways. This development comprises 130 homes and various amenities including a dining room, bar, bistro, swimming pool, healthcare centre, gym and library.
NEW DEVELOPMENT Case says 110 luxury apartments and a lifestyle and care centre are in the pipeline. “The new apartments will be completed within the next 12 to 14 months and cost R3m,” he says. PSG’s investment will allow Evergreen Lifestyle to grow bigger and faster, Case says, meeting the growing demand for independent
“The number of people above 60 years old is expected to grow from 4.3-million now to 6.8-million over the next 19 years” Nico de Waal, CEO, PSG Alpha Investments Evergreen Val de Vie, near Paarl retirement living quicker. “Previously we had to roll out our villages in phases, but now we can build right through. “In five years we envisage 20 to 30 villages comprising 10,000 units.” De Waal is as confident about the future of the partnership between PSG and Evergreen Lifestyle as he is about SA’s retirement property sector. “The market is a large opportunity in the PSG scale of things,” he says. “Maybe in time we can deploy even more capital towards it as opportunities unfold. It is quite exciting for us.”
Evergreen Muizenberg, Cape Town
Konnect, The Design Network by Blok, curates local design collaborations across multiple platforms and disciplines. The latest iteration of this network manifests itself in two exquisitely finished apartments in Blok’s TWO16ONHL development in Sea Point. Proudly collaborating with two Konnect partners, Weylandts Spaces and Dark Horse, each of these two apartments embody the perfect balance between modernity and simplicity. These urban homes at 216 High Level Rd, Sea Point will be open for viewings over the next few weeks from Sunday 8 October between 2-5pm or by appointment. Contact us on +27 87 820 0050 or sales@blok.co.za for additional information or visit blok.co.za.
HOMEFRONT INVESTIGATION
Easier lease terms give startups a leg-up Developers who have adjusted their approach to accommodate the needs of new businesses are creating a buzz WORDS: GEORGINA GUEDES :: PHOTOS: ISTOCK AND SUPPLIED
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significant barrier to success for a commercial startup business is the high cost of rentals and unforgiving lease terms. This is especially true in the retail space. New businesses — as opposed to large players with a national footprint — are charged higher per-square-metre rates yet are handed the same lease terms, usually two years, as their established counterparts. Mark Connett, the Port Elizabeth commercial franchisee of Just Property, says typical commercial or retail rentals span a term of three to five years. The rental price range is difficult to aggregate because it depends on many variables. In Port Elizabeth, Connett says the range for malls is between R85 and R150/m2
This new model is particularly beneficial for entrepreneurs. “Many entrepreneurs have a big dream; they sign a three- to five-year lease and then can’t pay their rent, so they get blacklisted which prevents them from being able to try again with a new venture,” says Urban Ocean CEO Herman Schoeman.
TAKE THE RISK A number of developers have for this reason specifically targeted the startup market, charging affordable rentals with forgiving lease terms so entrepreneurs can afford to take the risk. If they fail, they are not financially disabled as a result. Urban Ocean has three such platforms.
INACCESSIBLE In Cape Town, commercial rentals vary from R180/m2 all the way to R500/m2. While these rentals and terms are essential to the business models of shopping centres, they aren’t accessible to small businesses. “The old business model is broken,” says John Sanei, consultant and trend specialist. “We have to look at how we fit the new business concept of the sharing economy. We have to change the model.” It doesn’t work if landlords want the same quarterly profits they once achieved, Sanei says. He believes areas supporting small businesses are helping to change the model. Says Sanei: “I think that Woodstock, Maboneng and Urban Ocean will be able to run with these smaller businesses and shared offices spaces — a concept booming all around the world — so that much less space is needed.”
The Century Property Developments-funded Riversands Incubation Hub, near Fourways, Johannesburg
HOMEFRONT
Urban Ocean rental offices, Johannesburg CBD
Urban Ocean’s City Central Food Hall, Johannesburg CBD
SANDTON OPENS FOR ENTREPRENEURS
Hlamvu Afrocentric Contemporary fashion store, Urban Ocean’s Pop Up Arcade, Johannesburg CBD First is the Pop Up Arcade, which contains a series of small, fully fitted shop spaces for startups in lifestyle retail including fashion, accessories and art. Monthly rentals are between R4,000 and R7,000.
SERVICED SPACES Next, Urban Ocean has the City Central Food Hall, which provides all the infrastructure for entrepreneurs in the food space in small, fully serviced food stalls that cater for the banking and finance employees in that part of town. Rentals are between R3,500 and R4,500 a month. Finally, there is Urban Collective, a co-working space in Urban Ocean’s flagship Corner House building. Again, it provides users with all the infrastructure they need to run an office, including desks, furniture, 50mbps WiFi connectivity, built-in sound projectors and a state-of-the-art boardroom. The space is subject to contracts depending on the levels of usage, all beginning with
a one-month commitment. Options range from R500 to R3,500 a month. “The reason we do this is that it’s a way to incubate new tenants. People who come through can grow into bigger office or retail space with us, and we think it’s important from a socioeconomic perspective to cultivate entrepreneurs,” Schoeman says.
BUZZ FACTOR He says they will continue to support entrepreneurs not only because it is a positive contribution to society and grooms potential tenants for larger spaces, but because it creates a “buzz” visitors seek out. The spaces become an attraction in their own right. Dean Peters, the commercial leasing manager at Propertuity developer Maboneng, says its rentals lend themselves to small businesses. “We structure deals on a case-by-case basis, looking at business proposals, current finances, as well as the company’s growth and sustainability strategy,” he says. “We offer rent breaks,
“The reason we do this is that it’s a way to incubate new tenants” Herman Schoeman, CEO, Urban Ocean
OPEN has launched a new work space in Sandton for startups and corporates. The first in a partnership with Growthpoint, OPEN Sandton will form part of a network of eight new spaces in prime locations, upcoming areas and townships to be introduced in the next 18 months. From a business perspective Sandton is the financial and business centre in SA, home to the Johannesburg Securities
Exchange, top investment banks, corporate head offices and one of the biggest shopping malls on the continent. But in “Africa’s richest square mile” the entrepreneur and startup community have until now viewed Sandton as largely inaccessible, with expensive inflexible office rentals and long leases — real obstacles to entrepreneurs and startups. The Deloitte Millennial Survey 2017, based on the
views of almost 8,000 millennials across 30 countries, shows 67% feel that flexible working arrangements have a positive impact on productivity, while more corporates are starting to share the need for more flexible work space. OPEN Sandton joins two existing co-working spaces — OPEN Maboneng in Johannesburg and Workshop 17 at the V&A Waterfront, Cape Town.
HOMEFRONT
The Mojo Market, Sea Point deposit structures as well as planned growth strategies. “Our leasing agents have been trained to ask the right questions and get a full understanding of the business before offering a space to a potential client. We ensure that the space fits their needs, but most importantly, their operating expenditure and budget.” He says the business
Urban Ocean Cornerhouse, Johannesburg CBD model works. “So far, businesses that put in the effort to make their companies work and who engage with us on the issues they are facing tend to succeed.”
RETAIL SPACE The Mojo Market, a recently opened retail space in Sea Point, Cape Town, operates under a similar model. “We provide startups with affordable rental
Black Star Coffee Bar at Riversands Incubation Hub
agreements in prime retail space,” says Pam Warrington, marketing manager for the Mojo Hotel and Mojo Market. “As a result, there is not a huge outlay of capital for startups wanting to open a business.” Warrington says once the Mojo Market and the retailer are more confident in the relationship, the lease can be extended and the tenant can invest significantly in
“Long leases limit our agility to adapt and improve” Pam Warrington, marketing manager, Mojo Market
the infrastructure of their store. “We are very fortunate as there is no shortage of retailers wanting to trade at Mojo and as a result, those that do offer the right mix of personality and product create a mutually beneficial relationship.”
FLUIDITY Lease flexibility gives everyone flexibility, Warrington says. “Having fluidity with our
tenants allows us to serve our consumers better. We let the consumer tell us what direction to take and move accordingly. Long leases limit our agility to adapt and improve.” Another development that offers favourable leases to startups is the Riversands Incubation Hub near Fourways, Johannesburg. Although this model is more of a traditional incubator — a nonprofit company providing small businesses with the support they need to grow — it bases this largely on the leases offered. “At Riversands Incubation Hub, there is a standard lease favourable to small business owners,” says chief operating officer Tafadzwa Madavo. “For example, it’s a three-year lease renewable annually, but entrepreneurs can change it according to their business needs — that is, they can scale up or down. They can also cancel it at very short notice.” Not every new retail development or business model can accommodate the risk and uncertainty of providing forgiving terms to startups and small businesses, but these developers are showing that where there’s a will there’s a way to contribute to the development of SA, and still turn a profit — or at least cover their costs.
RDP_170601_4079
At 20 storeys, Park Central is set to become the tallest residential building in Rosebank, featuring 150 luxurious apartments in the development that are available in 41 configurations, from R2 010 000.
R OSE BANK, THE FUTURE MANHATTAN OF JOHANNESBURG. On show Monday to Friday from 10h00 to 17h00 and Sundays from 12h00 to 17h00 P H Y S I C AL A DDRESS – 6 Keyes Ave, Rosebank, Johannesburg S A L E S A ND PRESENTA T ION CEN TR E – 7 Sturdee Ave, Rosebank, Johannesburg
ENQUIRE NOW | www.parkcentral.co.za sales@parkcentral.co.za | Tel: 011 268 1637
It's that feeling that no matter where you go from here, you know, deep down; it doesn't get better. One on Whiteley is THE ONE when it comes to living, shopping, dining, playing and working in the lifestyle capital of Johannesburg, Melrose Arch. With new 1-bedroom units available from R2.2 million, One on Whiteley is the perfect match for the first-time buyer or avid investor. On show: Weekdays 8am-5pm, Saturdays 10am-2pm and Sundays 2pm-5pm. Pam Golding Properties - Melrose Arch, 16 The High Street. For more information: Victoria Russell: C: 074 683 1222 | E: victoria.russell@pamgolding.co.za Peet Strauss: C: 083 675 1211 | E: peet.strauss@pamgolding.co.za Tersia Taljaard: C: 063 695 7571 | E: tersiat@amdec.co.za
FOCUS ON: THE EXCHANGE LOFTS ADVERTORIAL
Stylish urban living Urban loft apartments in Braamfontein offer excellent investment potential WORDS AND PHOTOS: SUPPLIED
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nvestors buying apartments in The Exchange Lofts can benefit from owning a property in a soughtafter development that attracts a wide range of prospective tenants and offers compelling tax benefits as part of the deal. The Exchange is a new development in Braamfontein offering 126 studios, one-bedroom and two-bedroom apartments with lavish open spaces, abundant natural light and modern finishes that are true to their materials — red brick, raw wood and soaring rafter beams all contribute to vibrant living spaces. Prices range from R695,000 for studio apartments to R985,000 for a onebedroom and R1,360,000 for a two-bedroom. The development is located within the old Johannesburg telephone exchange building — hence the name. Now gutted and renovated, it is positioned near the vibey 44 Stanley
Avenue development, which means it is also close to the Empire Road link of the Corridors of Freedom rapid bus transit system – an artery that connects the area efficiently to other business.
CONVENIENCE The Gautrain station is nearby, ferrying residents to Rosebank, Sandton or the airport in comfort and convenience. The building is positioned near main travel routes, including the M1 highway. It overlooks the lush greenery of the Enoch Sontonga Memorial Park. In fact, the grounds of The Exchange will expand into the park, offering walkways and open spaces for residents to enjoy in a secure setting.
LIFESTYLE The Exchange’s appeal lies primarily in the lifestyle and locational benefits it will offer residents. The generous modern spaces would be appealing in any location, but
FOCUS ON: THE EXCHANGE LOFTS
in Braamfontein they grant residents access to a part of Johannesburg swept up in a wave of urban renewal. Braamfontein and its surrounding areas are home to many leading businesses including academic institutions, banks, mining houses, government offices, hospitals and medical centres, but it has recently seen a surge of street-side culture with the development of trendy retailers, coffee shops, restaurants and new businesses, making the area a desirable urban landscape.
VIBRANT HEART “There’s no denying that Braamfontein is on the up,” says David Nijland, co-developer of The Exchange. “It has never lost its foothold as a commercial suburb, but in recent years it’s become the vibrant heart of Johannesburg. The Exchange offers its residents a fantastic experience of urban living in one of the city’s most exciting suburbs, but also gives them a stylish and secure destination to retreat to — with a greenbelt right outside their front door for leisure and exercise pursuits.
ON OFFER The development offers adequate on-site parking for residents and guests, infrastructure for fibre and DStv, an advanced security system with 24-hour access control and an on-site caretakers’ office. The Exchange forms part of the Braamfontein Lifestyle Living Precinct, which includes two further
planned developments, Network Lofts Braamfontein and Braamfontein Lofts. The area is set to become a vibrant residential destination for young executives and students. The Exchange is the first project, due for completion in the first quarter of 2018. The Exchange is an ontrend development at just the right time. It delivers on its promise with a set of features to make its residents feel right at home in the city. “Braamfontein has the unique selling point of offering all the lifestyle benefits of inner-city revival, along with its central position that makes it convenient to just about any destination in Johannesburg’s desirable and commercial suburbs,” says Nijland. “We believe The Exchange is poised to become the premier lifestyle address in the inner city.”
“We believe The Exchange is poised to become the premier lifestyle address in the inner city” David Nijland, co-developer, The Exchange Lofts
INVESTMENT CASE
The Exchange loft apartments and studios anticipated returns
The Exchange anticipates that its rentals will be sought by young executives who work in surrounding businesses, and students in nearby universities.
Unit
Purchase price
Estimated rental
Studio
R695,000
R6,000
One-bedroom apartment
R985,000
R7,500
R1,360,000
R9,500
Two-bedroom apartment Not only do estimated rentals make a compelling argument for investment, price against taxable income but the development over a five-year period. forms part of an Urban Renewal Zone, which means “The exceptional lifestyle buyers qualify for an urban benefits of The Exchange renewal tax incentive. also give it ideal investment This means they can write potential. In addition to off 30% of the purchase our anticipated executive
and student residents, we believe we will sell a number of units to property investment portfolio managers who acknowledge that this is a secure and lucrative investment opportunity,” says Nijland.
GET IN TOUCH The Exchange Lofts Tel: 079 312 6618 e-mail: sales@ exchangelofts.co.za exchangelofts.co.za
OWN IT from an affordable R2.4 million to luxurious R13 million penthouses. When it comes to property in Johannesburg, ONE97 Hyde Park truly stands above the rest. A modernist approach with a timeless sense of luxury gives ONE97 Hyde Park that edge in high-life exclusivity. With 100 living spaces ranging from 1 bedroom city pads, impressive 2 bedrooms, and 3 bedroom designer penthouses, ONE97 is the one to own. The sales office is on site at Hyde Close, Hyde Park. Visit us this Sunday from 2pm to 5pm to view the selection of units. Follow pointers from Jan Smuts Ave into 6th Road, into Hyde Close. Theo Joannides 081 313 4907, Jak Redelinghuys 082 445 2130
FROM
3 BED 2 BATH
FROM
2 BED 2 BATH
R 699 900 R 1 199 900
FROM
1 BED 1 BATH
R 1 299 900
HOMEFRONT
LIVING
Housing the missing middle
The needs of commuting urban workers can provide an outstanding opportunity for developers, says Western Cape Property Development Forum chairperson Deon van Zyl PHOTOS: ISTOCK
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change in attitude by developers and estate agents can provide appropriate affordable accommodation in CBDs to commuting workers, making for a resilient urban economy. The “affordable housing” label should change to “affordable accommodation” so the industry can provide the correct type of housing to match different phases in tenants’ lives. This will provide developers with real business opportunities
“Providing a vibrant, quality after-hours lifestyle at ground level will supplement lower housing income with commercial rentals”
and boost their bottom line Adapting mind-sets will help meet local government challenges in a changing economic and political scenario and deliver a necessary housing service to commuting urban workers, who can shift their spending from transport to urban rentals.
PRODUCTION FOCUS The Western Cape Property Development Forum is a voluntary organisation of developers and property consultants that operates in the Cape
Town metropolitan area and the Western Cape. The forum focuses on the production line of property development, for example the statutory processes that lead to developers breaking ground, and procedures that affect giving occupation and transfer to end users. Understanding trends and identifying new development opportunities is critical to the developer looking for return. Predicting market forces and trends is essential, bearing in mind
HOMEFRONT CAPE TOWN SHAKE-UP In May, Cape Town Mayor Patricia de Lille told the Western Cape Property Development Forum: The city has begun the largest restructuring process since the creation of the single municipality of Cape Town; Eight planning districts will be collapsed into four; The planning and transport departments have been combined; City-initiated projects are required to make affordable accommodation available; and Town planning and building plan application periods are being reduced — halved in certain instances.
it can take years to move through the quagmire of statutory processes. The danger is: will the market need exist or remain the same in a fastchanging environment? And if that environment is a successful CBD created by attracting investment and development, how do we ensure its resilience?
ONGOING CHANGE The past year has been interesting for the property development industry — perhaps more of a Chinese curse than a blessing. Not only must it deal with the effect of the changing international context, it must try to understand the impact of political developments and the downgrade to junk credit rating status. At the same time, developers need to deal with ongoing changes to planning legislation, zoning regulations and new policies, not least the implications in Cape Town of transit oriented development and an anticipated policy on inclusionary housing. So everything is in flux — what do we do? The people who work in the Cape Town city centre find it difficult to live there. They feel excluded from the economy. Francois Viruly, associate professor at UCT’s Urban Real Estate Research Unit, coined the phrase 40 x 40 x 40 — 40% of income spent on 40km of travel to live in a 40m2 house.
AVERAGE PRICES Figures collated by Cape Town’s Central City Improvement District (CCID) show the average residential sale price per
square metre across the first six months of 2017 is R35,700, not the R60,000 or R70,000/m2 sometimes quoted in the media. The bulk of rentals are less than R20,000 a month. If anything, sales prices are stabilising and there is not much movement in rentals. Lifestyle choices make the CBD attractive, but salaries are not supporting growth in rental prices. Are we chasing a sustainable market or are we heading for a bubble? Developers aiming to bring new residential property into the CBD market need to be aware of where that market lies, what it can afford and what it is prepared to pay. There is a need to define “affordable”. Tough decisions are being made because it cannot be business as usual.
POLITICAL MOOD If you think it can be business as usual, even if you believe the local residential boom will continue, take note: the political context has changed. Grassroots murmurs inform us there is a change in the political mood. But there is also opportunity. The golden goose of the past few years has been the residential sector, specifically refurbishments of commercial buildings into residential, and new construction supported by a change of view on densification. However, there are hard questions: What happens when only a few can afford commercial space in the CBD? If you refurbish all commercial buildings for residential, where will office users go when market demand increases? If you sectionalise buildings for residential, what are the chances such buildings will ever be redeveloped? What happens when the cost of maintaining sectionalised buildings becomes excessive, leaving multiple owners unable to agree, for example, on a lift refurbishment?
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AFFORDABLE ACCOMMODATION: WHO COULD BE THE TARGET MARKET?
Teacher
accommodation close to work, you could charge a larger chunk of a resident’s available money for accommodation. Nothing prevents you from adding hospitality services in the form of laundry and catering. You could in fact increase the pot of money by delving into nonaccommodation and nontravel-related expenditures.
MIDDLE INCOME Future Cape Town’s urbanist and consultant Rashiq Fatar, investigating how one accommodates the missing middle-income earners, is working on an 80:20 split of open market and affordable accommodation.
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OPPORTUNITY I think there is an incredible opportunity staring us in the face — affordable accommodation. Joe Cortright, writing for citylab.com, says the sum of accommodation and travel expenses tends to be constant — the less you spend on accommodation the more you tend to spend on travel, and vice versa. But here is an opportunity — if you provide affordable
Central city office worker
“The difference between affordable housing and affordable accommodation is permanence v opportunity”
He is collaborating with developer Blok on the Bo-Kaap development Forty on L. The difference between affordable housing and affordable accommodation is permanence v opportunity. The rental product I advocate indicates access to economic opportunity, while housing signifies permanence. We need to start with opportunity and allow it to develop into permanence. Cape Town city councillor Brett Herron has reiterated the city’s commitment to affordable housing. It is seeking to enter into partnership agreements with companies accredited with the Social Housing Regulatory Authority. Land is scarce and expensive in the City Bowl. Herron has promised the process of releasing city land for social housing will be improved as an incentive to the private sector. Either way, an opportunity awaits — affordable and well-managed rental accommodation.
Bank clerk
Shop manager
Young professional
Junior government official
ATTRACTIVE A look at the CCID statistics and the South African Property Owners Association data shows the refurbishment of Class C office buildings remains attractive, specifically for the rental market. Providing a vibrant, quality afterhours lifestyle at ground level will supplement lower housing income with commercial rentals. This is an untapped market which, if only people could live closer to work, will have the money saved from high transport costs available to spend on affordable accommodation and a vibrant urban lifestyle.
Call centre staff — the CCID CBD footprint includes 37 call centres
Down-sizer who chooses a social and urban lifestyle over suburban life
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HOMEFRONT PROPERTY NEWS
New partnership for Umhlanga Arch developers
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he Mulitply Goup, developers of Umhlanga Arch, the exclusive R1.3bn residential and commercial project in Umhlanga, have announced a strategic partnership with the Rembrothers
Group, responsible for the Old Town Italy restaurant/ market/deli concept. “Umhlanga Arch was created around the core values of creating a unique live, work and play environment, which
are perfectly aligned with our vision and the goal for the Rembrothers Group,” says Umhlanga Arch developer representative Chris du Toit. “As a result, we know that we could forge a
formidable partnership and are delighted to have them on board.” The Rembrothers Group is responsible for introducing the “Italian market setting” of Old Town Italy to KwaZulu-
Natal and at a national level. “We are delighted to confirm the partnership with Umhlanga Arch and look forward to working with the development team to realise this unique vision,”
says Rembrothers Group founder Renzo Scribante. The developers say this marks the first stage of the coming together of Durban residential, hospitality, retail and commercial developers.
Private Property takeover bid by P24 will not proceed
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rivate Property has announced the conclusion of a deal that sees a change in its ownership from existing shareholder American private equitycontrolled company OAM, to a consortium of committed South African buyers that includes listed media giant Caxton. Others involved include industry participants “with a deep understanding of the property market”. The deal is subject to Competition Commission approval and is expected
be finalised by the end of October. The proposed takeover bid by Property24 parent company Naspers will not proceed. The new deal was concluded with the assistance of industry body the Real Estate Business Owners of SA. “Private Property has grown strongly in the past three years, achieving excellent results as a digital platform,” says Private Property CEO Simon Bray. “It now holds a significant position in the South African market. We are really pleased
that we could conclude a deal that maintains our independence and affords us the opportunity to enhance the role that technology can play in the real estate industry. “This is good news for everybody. For Private Property, we get to keep doing what we are passionate about: building a great service for property shoppers. For the industry, it ensures a vibrant, competitive environment with at least two big platforms offering advertising services.”
occupants’ needs in mind. “Flexibility within a work environment has become critical to tenants who require flexible office space and high-speed internet connectivity.”
The building will have a modern look characterised by glazed facades, which extend over the office and parking levels with generous floorto-ceiling heights.
Sectional title townhouses for coastal estate Work begins on Cape Town office tower T he Eastern Cape’s Olivewood Private Estate and Golf Club in Chintsa, 40km from East London, has announced its first sectional title development The Terraces. The north-facing terraced townhouses in the south-eastern Summerfields region of the estate offer views of indigenous forest, the ocean and lush
surroundings. Says Kelly Rens, Olivewood Estate client liaison manager: “These units offer residents the best of both worlds: a nature-oriented environment and sophisticated homes which suit a modern way of life.” The Terraces will suit young professionals, families or retirees. There is a choice of two- or four-bedroom units.
Security measures include electrified fencing and manned entry to CCTV surveillance and an emergency response team. The 1,000ha development encompasses natural landscapes and includes forests, plains, river banks and dams. Sixty percent of the area will remain undeveloped. Blesbok, waterbuck, impala and warthog roam the estate. Pricing is from R4m.
R44bn development boost for Pretoria’s Far East
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roperty experts have pinpointed the Far East of Pretoria as a solid real estate investment opportunity. Seeff Pretoria East estate agent Gina Olivier says a R44bn development dubbed “The East Capital” will have its own Gautrain station and a hospital, shopping mall, office parks, tourism offices and hospitality offerings in the next few years. Olivier says the new Hazeldeane Road will link the N4 to the R21; another new road will offer faster access to OR Tambo airport and Johannesburg. The Far East includes the
Silver Lakes and Hazeldean areas. Olivier says there are 12 upmarket estates that offer good schools close by and a range of property, from bachelor units to exclusive mansions. Lombardy Estate, at the foot of the mountain, is among the most popular estates, says Olivier. Residences include lockup-and-go clusters and apartment-style homes. New second-phase Fountains units start at R1.25m and new second-phase Lakes houses are priced from R3.4m. Tygerberg Country Estate is a new development that
offers big stands of about 1,000m2. Olivier says homes built on the stands are priced from R5m. Silver Lakes Golf Estate is the oldest development. Property is priced from R2.5m and can reach upwards of R15m. The Ridge Estate has big stands. It has interleading gates to Curro schools. Phase two has recently been launched. Prices range between R3.5m and R10.5m. Oukraal Apartments offers smaller stack units ideal for investment purposes and first-time buyers. Prices are between R450,000 and R650,000.
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onstruction has begun on 35 Lower Long, Cape Town’s latest office tower. Previously the Ernst & Young offices, the development will be a 24-storey, four-star green building set for completion in Q1 2020. Property developer Abland is a joint venture partner with The Ellerine Brothers. Internal stripping of the building and external demolition began last month. The building area will comprise 13,446m² of premium-grade office space, with 323m² of retail space on the ground floor, nine above-ground parking levels and a penthouse on the top floor.Abland Cape regional director James Cresswell says the location is ideal: close to a MyCiti bus station and near the main train station. Motorists will have easy access to the N1, N2 and the western seaboard. “In addition, the building is located in the popular foreshore precinct close to the Cape Town International Convention Centre,” says Cresswell. The building is being developed with the
PRETORIA EAST
. . . D R N U A ! O T Y E S M D A L O I H U B BUY M A AND DRE Stand: R589 000 up to R650 000 Building: R1 225 000
Stand: R589 000 up to R650 000 Building: From R1 150 000
FAR = 120% of stand size Stand: R589 000 up to R650 000 Building: From R1 100 000 WERNER EKSTEEN
RE/MAX Jowic - Team Werner Eksteen
082 411 3089
082 577 4531 (Office) werner@wernereksteen.com
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• LUXURY APARTMENTS FROM 3 BEDROOM EN SUITE STARTING AT R7,9M • HOTEL INVESTMENT OPPORTUNITY SUITES STARTING AT R4,4M
“After a busy day in the kitchen, there’s nothing better than coming home to a glass of wine on my patio… And the best view in Joburg.”
“My head office is in Joburg so I have to commute at least three times a month… I wanted a lock-up-and-go second home with security, reliable electricity and a concierge. The Houghton ticked all the boxes.”
“I always thought I’d want to retire to the coast, but living at The Houghton feels like being on holiday all the time.”
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Come and have a look at our luxury apartment 12029, available daily for viewings WARREN BECKER 082 302 3004 | warren@thehoughton.com ALAN BECKER 082 718 8100 | alan@thehoughton.com Houghton on 12th, 53 Second Ave, Houghton | Show apartment 12029
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