HOMEFRONT 13 OCTOBER 2016 WWW.BDLIVE.CO.ZA 21 JUNE 2019 WWW.BUSINESSLIVE.CO.ZA
MUST-READ
Heritage meets cool in new city hotel PAGE 2
Proximity to parks ups property value PAGE 10
Township malls swim upstream PAGE 12
Rosebank's chic new apartments
Balwin Properties' The Blyde adds seaside flair to country living, winning them five stars in the The African Property Awards for Best Leisure Architecture in SA
Country living, city proximity It’s a no-brainer: estates offering the benefits of the countryside with proximity to major centres PAGE 4
PAGE 15
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HOMEFRONT DÉCOR AND LIFESTYLE
Downtown by design Heritage meets urban at Cape Town’s new inner-city hotel, Gorgeous George. HomeFront checked in to check it out WORDS: KIM MAXWELL :: PHOTOS: SUPPLIED
I
f you’re suffering from creative block after staying in too many hotel rooms that are boring in their nondescript, impersonal uniformity, make your next business or leisure reservation at Gorgeous George. Old window frames in this new hotel open to overlook Cape Town’s St Georges Mall pedestrian walkway and bring in the hum of the city. From the friendly reception on street level, where Lucie de Moyencourt’s hand-painted tiles form a mural map of Cape Town, to the buzzing Gigi Rooftop restaurant/ bar that introduces a tropical jungle feel against a backdrop of urban lowrises, Gorgeous George celebrates everything that is inner city, individualistic and slick. Two heritage buildings were cleverly combined to produce 32 rooms and suites. The property is Cape Town’s first member of Design Hotels, a collection of more than 300 privately owned or operated international boutique hotels rooted in design, architecture and hospitality.
AUTHENTIC Gorgeous George hotel’s German owner, Tobias Alter, is the head (and primary shareholder) of the real estate development company Formhaus, based in Munich. He believes more travellers are now looking for an authentic experience “outside of what the cookie cutter largescale brands” offer. “The common denominators are inner city and innovative local design,” says Alter. “With the consolidation of larger hotel chains, there’s a gap for a personalised experience that only
smaller, independent boutique hotels can fill.” Tristan du Plessis of Tristan Plessis Studio was brought in to add colour, flair and local artisanal design flash in the interior spaces. “We came up with a concept that was a reaction to other Cape Town hotels,” says Du Plessis. “We didn’t want beachside or seaside. We wanted an unashamedly downtown and urban focus.” Charcoal painted walls and multicoloured floral carpeting create visual drama in the passages. The patterns on the carpet were recreated from paintings by the old Dutch masters, using highdefinition technology – an African first on this scale, according to Du Plessis. The
designs repeat in rugs in the bedrooms.
SHOWCASE “From an aesthetic perspective we wanted a showcase for South African design,” says Du Plessis. They’ve achieved it. My bedroom links to a lounge with a Gregor Jenkin Quaker chair propped at one of his narrow black steel desks, near a mural handpainted by David Britz. A drinks trolley by Douglas & Co features an outsized pink wheel against a black metal frame. Alongside a velour couch is a brass pill mirror “inspired by the Cape Dutch arches of a neighbouring building”. An oak and steel storage unit designed by Du Plessis
HOMEFRONT
“That was a core component of what we wanted to create: a social space not just for hotel guests” Tristan du Plessis, interior architect, Tristan Plessis Studio
Q&A with property entrepreneur Tobias Alter Why invest in a boutique hotel in Cape Town? Since starting my career eight years ago, the property market in Germany had increased by 10% and I was looking to diversify, ideally in a different market. Working in real estate you are always dependent on the market. Four years ago when I bought the Cape Town property, the real estate market was relatively low. In Europe, downtown heritage buildings are prime real estate and finding two beautiful buildings in any European city for that price would be nearly impossible. Moreover, due to higher
labour costs, only hotels with 60-plus rooms make financial sense there.
Take us through some of your considerations. Given that this was my first hospitality project, I had a specific vision and wanted to execute it how I wanted to. I wouldn’t have had the same opportunity in Europe – the concept was perfect for SA. Taking into account the problem with traffic into and out of the city, the rich history of the downtown area and the impact Uber recently made on transportation, this location seemed perfect.
Why combine two heritage buildings to create a boutique hotel? When I bought the buildings, the intention wasn’t to create a hotel. But when I saw the opportunity of having an indoor restaurant connected to a windsheltered rooftop area with a pool housed in the old tower, smack in downtown Cape Town, I knew it had potential. The fact that we were able to turn the roof of the smaller building into a rooftop terrace and have an indoor area on the same level was a deciding factor in turning the project into a hotel.
doubles as a refreshment station, with Seventies ribbed glass panels and De Moyencourt’s tiles as splashbacks. I loved Jenkin’s bathroom vanity too: marble topping a black base on narrow legs, creating a luxurious touch against the wet room’s white and black penny tiles and black accessories.
GIGI ROOFTOP Du Plessis used only locally sourced pieces, including leather Chesterfields he designed himself, to furnish the Eurocentric restaurant/bar at Gigi Rooftop. A barman made our cocktails on a leather counter inlaid in stained walnut wood with a brass trim, whereas a large oak table and chairs by David Krynauw PRODUCED BY BLACKSTAR PROPERTY PUBLISHING 1st Floor, Block H, Sable Square, Cnr Bosmansdam and Ratanga roads, Milnerton, Cape Town 021 447 7130
A EDITORIAL TEAM Editor: Debbie Loots Designer: Samantha Durand
lend the space a local farmstyle element. Smaller dining tables with more hand-painted tiles aren’t terribly practical for balancing wine glasses alongside executive chef Guy Bennett’s creative food. Small plates (from oysters to BBQ sticky lamb ribs) suit afternoon poolside drinks or dinner starters. A tasty mushroom risotto is an alternative to fish or steak.
SOCIAL HUB Continuing the casual theme, Du Plessis designed the rooftop itself as an urban garden oasis, with loads of hanging plants in baskets connecting the indoors with the decked pool area. “We turned the old machine room into the indoor section of the rooftop pool,” he says.
In his design brief to Du Plessis, Alter was adamant about introducing European hotel culture as a community social hub – a space not only for sleeping, but also where locals could meet. It’s why Alter refers to Gigi Rooftop’s restaurant as the “living room for the neighbourhood”. It makes the sixthfloor space unusual. On a weekday winter evening patrons of a mix of ages were chatting, ordering glasses of wine and snacks to eat. There were quieter dining areas too. “That was a core component of what we wanted to create: a social space not just for hotel guests,” says Du Plessis. “It adds to the experience for the guest as well. It’s nice to be part of that community and not just check into a room.”
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HOMEFRONT
The exterior of a Trinity Country Homes unit at Sitari, Somerset West
HOT TOPIC
Country living, city proximity It’s a no-brainer: estates offering the benefits of the countryside with proximity to major centres WORDS: KIM MAXWELL :: PHOTOS: SUPPLIED
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outh Africans are still opting to buy homes in secure estates and apartment units. Of SA’s nearly 6.7-million residential properties, Lightstone Property reports that secure estates still hold nearly 20% of market share. Sectional title also has significant appeal, with just less than 15% of the total housing market. It is also indicative of the growing demand for residential estates, more of which are now developed in semi-urban locations. The appeal is about rural living with city proximity: homes in estates that offer the benefits of the countryside relatively close to major urban centres. Many of these secure estates consist of houses, townhouses and apartments, attracting a range of buyer types enticed by properties that suit their life stages and affordability levels.
perform better than residential suburbs as they tend to offer higher security and more lifestyle perks for residents’ enjoyment. “These additional benefits allow owners to enjoy a way of living that is different to that of living in a residential suburb,” he adds. Sitari is a good example of an estate offering a tranquil countryside setting with modern conveniences at nearby Somerset West, and Cape Town only a short drive away. For professional couples and investors, there is a good selection of apartments (one-, twoand three-beds) with two sets of finishes (luxury and premium) set over eight developments within the property. The estate offers plot-andplan homes, turnkey Village homes for young families and turnkey Trinity Country three- or four-bedroom homes for larger families.
PERFORMANCE
“We believe it is a combination of factors,” says Multi Spectrum Property spokesperson Werner Scheffer, summing
Sitari Country Estate executive director Claudius Combrinck says South African estates typically
SECURITY
up the appeal of popular Buh-Rein Estate in Cape Town’s Northern Suburbs. “A big driver is that people would like to stay in a safe environment that gives them great potential on their investment as well as the lifestyle they or their families would like to enjoy.” Multifaceted security measures are what you’d expect of a modern estate. “Security requirements are still the most important differentiator for estates fetching higher prices than homes in suburban areas because you can live carefree,” says Jessica Hofmeyr, sales, rentals, marketing and operations executive at Century Property Developments in Gauteng. Many estates now include multiple property types within their estates to suit buyer flexibility. Rabie Property Group marketing and communications representative Natalie du Plessis says Durbanville’s Clara Anna Fontein Lifestyle Estate offers three distinct development approaches: a plot-and-plan family home within design guidelines,
smaller lock-up-and-go homes by the developer at The Village, or Oasis Life retirement homes. At the latter estate, retirement options start with a onebedroom, one-bathroom home for R2.3m. A Reddam House school, a clubhouse with tennis and squash courts, a 25m pool and a gym are among the amenities. There are also “social hub” facilities, including a separate offering for teenagers, available to all estate residents. Oasis Life residents will also have an exclusive clubhouse and amenities.
MULTIFACETED “Space and nature form an important part of the lifestyle we offer and therefore we preserved greenery, wildlife and water bodies when planning these multifaceted estates within the larger estate,” says Du Plessis. At Century Property Developments’s The Hills Game Reserve Estate in Pretoria East, residential stands within this five-star development are listed from just more than R1m,
HOMEFRONT and apartments range from R830,000 for a onebedroom unit. As Hofmeyr points out, they offer a lifestyle opportunity to buyers from more than one income group. The Hills fits the country lifestyle/city proximity label nicely too: it includes a game reserve with antelope and zebra for a bushveld experience, yet modern conveniences are close.
R-URBAN
Klipfontein Farm Lifestyle Estate outside Malmesbury
In Port Elizabeth, the first of nine villages are being built at Westbrook security estate. Developer Amdec Group uses the term “r-urban” to describe the trend of multigenerational estates that blend town and country. Here residents benefit from space, security and facilities. And good value, with homes priced from R1.21m to R2m. “We’re providing a lifestyle that we know people want right now and that fully embraces the townto-country blend,” says Westbrook MD Clifford Oosthuizen. “Yet it’s only 14km from PE’s city centre.” Balwin Properties announced on Tuesday
that it broke a world record with the largest Green Edge registration of more than 15,500 units, including developments such as Kikuyu and The Whisken. It also walked away with four African Property Awards, including The Blyde development’s five-star award for Best Leisure Architecture in SA. CEO Steve Balwin says these achievements underscore Balwin’s commitment to building excellence and sustainable development, adding to the appeal of investing not only in convenience but also in innovation.
MULTIGENERATIONAL At Val de Vie Estate in the Winelands, group marketing director Ryk Neethling notes that multigenerational estate living is important to the success of an estate and to the wellness of its residents. Buh-Rein Estate in Cape Town’s Northern Suburbs offers sectional title apartments, townhouses and freestanding homes. Its latest addition is Buh-Rein Retirement Village, where the first residents move in this year.
Steyn City in Midrand
“I recently visited the top 10 estates in Florida and North Carolina. I can honestly say that we are far ahead in lifestyle offerings” Ryk Neethling, group marketing director, Val de Vie Estate Kikuyu, Balwin Properties’ development in Waterfall, Midrand
Val de Vie Estate in the Winelands
Klipfontein Farm Lifestyle Estate is introducing a rural living benchmark for Malmesbury: a modern, farm-like estate environment with views of the Swartland mountains and Table Mountain. It caters for first-time buyers, larger families and retirees alike. Olive Place (freestanding lifestyle homes) and Fonteine Village (full-title retirement scheme) are the first subschemes at the estate. “The biggest challenge has been to provide buyers with a unique proposition,” says Multi Spectrum Property CEO Riaan Roos. “We believe that Klipfontein Farm, with its range of lifestyle and product offerings, makes for a compelling reason to move to the country without having to sacrifice modernday necessities.”
COASTAL Countryside can be semitropical too. Located 3km from Ballito on the KwaZulu-Natal North Coast, Lazuli Lifestyle & Retirement Estate is situated adjacent to Zimbali Coastal Resort. “It really does present a unique
HOMEFRONT
“Living at Serengeti Estates gives you the freedom of countryside living but is still within the hustle and bustle of SA’s economic nucleus” Louise Cilliers, spokesperson, Serengeti Estates
Serengeti Estates, east of Johannesburg
Residential property in SA: sectional title, freehold and estates Volume
Value
11.4% 14.3%
Sectional title
Total of
6.7-million residential properties valued at
82.1%
67.4%
R5.4-trillion
Freehold
way of life for those entering or in their retirement years – a pleasant climate, top golf courses, beautiful beaches, nearby amenities and shopping centres,” says spokesperson Kevin Fisher. He attributes Lazuli’s investor allure to the fact that it is as much a lifestyle estate as a retirement estate. “We are able to offer a variety of different homes aimed at the over-50s buyer, namely Sentinel Hill Villas, Sentinel Hill Apartments and Fig Tree Villa homes.”
COMPETITORS
18.3%
6.5%
Source: Lightstone Property
Estates
Local estates are consistently outdoing their international competitors in terms of value-added estate amenities, security and technology. “I recently visited the top 10 estates in Florida and North Carolina. I can honestly say that we are far ahead in lifestyle offerings,” says Neethling.
The variety at Val de Vie Estate includes a spa, a barber shop, a coffee roaster, wine tasting, three gyms, three pools (indoor and outdoor options), a signature golf course and equestrian and cycling facilities. There is little reason for residents to leave a luxury estate. Mzuri Residential Estate in Somerset West has a semicountry location below the Hottentots Holland Mountains, with sweeping views of False Bay. Buyers can choose between single-storey individual houses, townhouses and apartments starting from R1.195m. Mzuri spokesperson Craig Page-Lee says their research showed five key specs local property investors look for in luxury developments: state-ofthe-art security; location in terms of schools, airports and work; good home design; layout and views; and a mix of residential options ranging from apartments to townhouses, as well as homes with different room specs. They also want lockup-and-go convenience and built-in maintenance, as well as on-site facilities and activities and a community aspect.
VALUE V VOLUME
Lazuli Lifestyle & Retirement Estate near Ballito
Lightstone Property reports that security estates hold a much higher proportion of total value versus volume spend of the residential property market. Its research shows that, on average, estate homes hold a value three times that of similar freestanding freehold homes in a suburban neighbourhood. Buyers are seeing the benefits of paying more for a solid investment.
Take Serengeti Estates, well located east of Johannesburg, just minutes from OR Tambo International Airport. The shopping and business hubs of the East Rand are comfortably within reach. “Living at Serengeti Estates gives you the freedom of countryside living but is still within the hustle and bustle of SA’s economic nucleus,” says spokesperson Louise Cilliers. She believes this development presents a unique value proposition by catering for those upscaling, starting out or slowing down.
COMMUNITY Closer to Johannesburg, the allure of Steyn City lies not only in its properties but in “the Steyn City lifestyle” thanks to a community rooted in neighbourly values, numerous recreational facilities and access for every property to an 800ha parkland, according to marketing and events group head Tammy Menton. She maintains that continually adding to the offerings is key to an estate’s success. “We recently launched an indoor aquatic centre; a dino park, where children spend hours digging for fossils; and a landscaped amphitheatre, the perfect venue for picnics and outdoor concerts,” Menton says. This month Steyn City launched 104 on Creek, its latest apartment living offering of resort-style twobedroom units priced from R2.6m. Features include Siemens appliances, double glazing, air conditioning, piped gas and a back-up generator. The development also has a rim-flow pool and a patisserie.
HOMEFRONT GLOBAL TREND
Park life
Proximity to city parks adds a premium to urban property prices around the world, according to new Knight Frank research WORDS: EXTRACT FROM THE WEALTH REPORT BY KNIGHT FRANK (JUNE 2019) :: PHOTO: SUPPLIED
THE GREEN FACTOR THE AVERAGE UPLIFT FOR PARK-FACING PROPERTIES V THOSE WITHIN 150M
29%
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reen space in a city is a highly sought-after commodity. The idea of escaping the hustle and bustle and enjoying natural scenery is an attractive one, but how much more are buyers prepared to pay to live facing a park compared with being up to 150m away? When it comes to apartment values, the answer, based on an analysis of the average value of homes around two major parks in London and one in New York, is significant. It is important to note that it is not only easy access to green space that can enhance a property’s value. There are many factors at play, including the size and quality of housing
CENTRAL PARK, NEW YORK stock close to parks as opposed to further away and the amenities on offer at a particular residence, as well as external factors such as proximity to quality schools. Yet average prices clearly reflect the fact that, for many, being close to green space is worth a considerable premium. Using its own and third-party data combined with geospatial analytics, Knight Frank compared average sales prices for park-facing properties with neighbouring properties around three of the world’s most famous parks: Hyde Park and Regent’s Park in London and Central Park in New York. Central Park and Regent’s Park came out on top for the highest
premiums, commanding 29% more for parkfacing properties. Hyde Park’s average uplift was somewhat lower but still significant at 18%, perhaps reflecting the availability of garden squares in the immediate vicinity, which can, particularly in Mayfair and Knightsbridge, command some of the highest premiums in central London. In assessing the data for Central Park, the focus was specifically on newly built developments on the Upper East Side and Central Park South. According to Andrew Wachtfogel, senior vicepresident of research and analytics for Douglas Elliman, the premium for Central Park South
is driven not only by proximity but by the views being offered from the newer high-rise buildings. “The Upper East Side, however, holds one of the most historic links as a prime area,” he says. The Regent’s Park and Hyde Park analysis included an assessment of the current value of all apartments, both new and existing, surrounding each park. Declan Selbo from Knight Frank’s St John’s Wood office says: “Living in close proximity to Regent’s Park offers security, privacy, unique architecture and incredible views, not to mention the occasional opportunity of seeing a giraffe”. Something you are unlikely to get in any other area.
29%
REGENT’S PARK, LONDON
18%
HYDE PARK, LONDON Sources: Knight Frank Research, Douglas Elliman, HM Land Registry
FOCUS ON: THE ASTER ADVERTORIAL
Buying it forward Invest in an exclusive and fully managed apartment where the best of Cape Town’s city life is just around the corner WORDS AND PHOTOS: SUPPLIED
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he Aster, the latest development by Horizon Capital Residential, offers an ideal Cape Town City Bowl investment opportunity for buyers wanting to profit on short-term lets. Designed to incorporate all the elements tourists look for when booking holiday accommodation, it is located within walking distance of Kloof Street’s restaurants and cafés and is a short Uber drive or MyCiti bus trip to the beaches of Camps Bay and Clifton. A fully managed shortterm letting service is also available for investors who are out of town or prefer to be hands-off. The Aster is an exclusive block that offers 21 unique apartments including a studio, one-bedroom units, two-bedroom units and two penthouses. Views of Table Mountain and Lion’s Head have been maximised through the design of floor-to-ceiling glass and aluminium sliding doors, which also let in as much natural light as possible.
Horizon Capital Residential has placed emphasis on communal space, which allows residents to soak in the city, mountain views and sunsets from the communal pool deck and braai area. Situated in one of Cape Town’s most sought-after City Bowl suburbs, The Aster is perched on Firdale Avenue in Oranjezicht. All the amenities of urban living are just down the road: boutique shops, restaurants and bars; the excellent public transport of the City Bowl; the famous Atlantic Seaboard beaches; the foothills of Table Mountain; and the charming parks and rich heritage of leafy Oranjezicht. This peaceful, family-oriented neighbourhood looks out over some of the Mother City’s most iconic sights: the CBD, Lion’s Head and Table Mountain. Apartment interiors feature a sophisticated design that incorporates a darker colour palette with modern-industrial elements. These include darker aluminium borders accenting the shower, mirrors and sliding doors.
GET IN TOUCH Horizon Capital Residential Tel: 021 425 8586 E-mail: sales@horizoncapital.co.za Website: www.TheAster.capetown
Purchasers are able to customise their units, with a variety of options to choose from, such as joinery colour, countertops, flooring as well as a number of optional integrated appliances. The penthouses offer buyers modern, luxury two-bedroom units on the edge of the city, catering for a high-quality urban lifestyle. These apartments each have a private roof terrace with a plunge pool and were designed to capture the all-day panoramic mountain views to maximum effect. Horizon Capital Residential MD David Sedgwick says: “The Aster maintains our responsible approach to development and echoes our shared belief in conscious living. Residents can enjoy the benefits of sustainable features like solar water heating, water-efficient fittings and low-energy LED lighting. The fourstorey building offers lockup-and-go convenience as well as secure basement parking, CCTV, electric fencing and access control.” Apartments at The Aster are priced from R1.95m (including VAT) and, because it’s a new development, no transfer duty will be payable. The Aster is set to break ground in the third quarter of 2019 with completion set for the end of 2020.
HOMEFRONT COMMERCIAL PROPERTY
Out of the starting blocks
Fairvest Property Holdings’s Middestad Mall, Bloemfontein CBD
Township and regional shopping malls are bucking SA’s lagging retail trend with innovation and growth in 2019
KEY RETAIL TRENDS Right-sizing of tenants. This opens opportunities for new entrants and results in a diversification of tenant mix, providing shoppers with enhanced experience and choice.
WORDS: KIM MAXWELL :: PHOTOS: SUPPLIED
Find growth areas. Athleisure, bottle stores, electronics, health and beauty and food are showing growth. Apparel, department stores and accessories are under pressure. Community-centric. Centres must exist as part of the community, not as an island. Entertainment. In malls this is a key differentiator, particularly in decentralised areas. Source: Vukile Property Fund
A Vukile Property Fund shopping centre, Daveyton
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t is generally accepted that SA’s major commercial segments – industrial, retail and office – are likely to perform sluggishly this year, as happened during 2018. Singling out retail specifically, Broll Property Intel’s report The Evolution of Retail of April 2019 says retail market competition is intense, with more than 25-million square metres of retail space, 2,000-plus shopping centres and nearly 3-million square metres of retail space in the pipeline. The report notes that innovation is key to survival in a retail market evolving at a rapid pace. “Shopping centre owners, developers, managers and retailers need to be alert to and agile in responding to trends, consumer behaviour and technology in a fast-paced, ever evolving industry,” says Broll Property Intel director Elaine Wilson.
How township malls can beat the odds However, one segment of South African retail – township and regional shopping malls – seems to be swimming upstream. “With one of the highest mall/GDP per capita ratio in the world, I don’t think anyone should be advocating for the need to develop more retail centres in SA,” says Vukile Property Fund asset management director Itumeleng Mothibeli. “I would advocate for a higher percentage of brownfield site redevelopment or retail improvements on current centres to be targeted at township and rural areas.”
1. Better performance Vukile is not the only company backing this segment of local retail. Fairvest Property Holdings owns a R3.14bn portfolio of 45 retail centres that cater
mostly for lower-income shoppers in townships and rural areas close to commuter networks. Fairvest reported a dividend that increased 8.3% in the six months to December 2018. Vukile Property Fund holds 52% of its retail in rural and township assets. Mothibeli says this segment has shown stronger growth in the past year than the portion of their retail centres located in urban locations. Trading densities for Vukile’s township portfolio are nearly R10,000/m2 higher per annum on an aggregated basis than those of its urban portfolio. Township and rural areas are definitely showing more growth. “There are many reasons driving this, but primarily at the supply level the urban context has a greater number of shopping centres per catchment. Catchments in the township context are also more densified, which,
when combined with an asset on a commuter route, gives the assets much more critical mass,” he says. Fairvest CEO Darren Wilder says the company’s focus on a differentiated sector of the market and its “unrelenting drive to excel at property fundamentals” has allowed its investors to reap the rewards of consistency. Although consumers remain under pressure during 2019, Wilder says data from the South African Property Owners Association shows that trading density growth has been positive for eight consecutive months. “Smaller formats such as community and neighbourhood centres have recorded growth of 2.5% after a sharp decline in 2017. The vacancy rate of these centres has been lower than that of other types of centres since mid-2018.” Fairvest’s vacancy rate was 3.5% of
the total lettable area as at December 2018.
2. Tenant mix “Retail is facing tough times in a hypercompetitive environment. The sameness of many South African malls is a big contributor,” says Mothibeli. “While there is no quick fix for this, shopping centres and retailers should navigate the current challenges with differentiation and customer-centricity.” In the current environment of muted GDP and sales growth, with disposable income under pressure resulting in decreased discretionary spend, category performance is not a given, according to Mothibeli. In Vukile’s urban centres, groceries and food tenants tend to make up 27% – a lower percentage of gross lettable area than the 34% typical in township centres for this category.
HOMEFRONT “Township malls should operate as part of their communities and understand locality nuances” Itumeleng Mothibeli, asset management director, Vukile Property Fund
Gugulethu Square in Cape Town, also by Vukile Mothibeli says the groceries category in township centres is Vukile’s largest and best performing in terms of trading densities by a significant margin. In urban centres, trading densities across its major categories are generally uniform. “Malls built in townships are also usually right-sized and are seldom oversized for the market, primarily due to scarcity of land,” he says.
3. Communitycentric Regional malls are in the community and from the community,” says Wilder. So customer engagement occurs more regularly. “Landlords and tenants at these shopping centres therefore have the advantage of much greater awareness and sensitivity to consumer
and community needs and preferences.” They also have more flexibility and willingness to cater for the needs of alternative traders around their centres through innovation, he says. “These might include providing trading space and upgraded facilities to informal traders in proximity to the shopping mall, and/or providing the opportunity to sell vendor produce through established retailing channels such as food anchor tenants, both of which Fairvest has initiated in its shopping malls.” Operational times of malls also play a role. Mothibeli suggests taking a leaf from spazas. “There are about 100,000 competitive spaza shops in SA. Some close at 10pm,” he says. Malls, for the most part, are only open during
Fairvest’s Nyanga Junction, Cape Town
general business hours. “Shoppers from townships and rural areas mainly use public transport and get to their neighbourhoods long after malls close. Is this customer-centric? Township malls should operate as part of their communities and understand locality nuances just as the informal sector does,” Mothibeli says.
4. Low or high LSM? Fairvest’s 45 retail centres cater mostly for lower-income shoppers in townships and rural areas. “I don’t think the key advantages of convenience and proximity are unique to lower-LSM retail centres – they are universal to all regional retail centres,” says Wilder. “I do, however, believe that lower-LSM regional
retail centres, and Fairvest specifically, are perhaps more attuned to the needs and changing behaviours of our customer base.” Fairvest’s mall customers spend an average of R80 on a daily shop. “We provide for their daily food needs by placing the right food anchors in our centres and regularly refresh the surrounding shops to provide the right variety and value to our customers,” says Wilder. According to Mothibeli, continuous research is key to providing a superior township tenant mix. “You need to provide what the shopper wants. Not all townships are lower LSM.” Shopper and household surveys assist malls in understanding retail dynamics. Vukile does periodic customer research in order to ensure diverse mall tenants and to cater for a mix of different spending capacities. “The upper-LSM household income in Soweto is different to the household income in lower-LSM Daveyton, for instance. In the area around Dobsonville Mall, which is typically higher LSM, three-bedroom houses are selling at close to R1m,” Mothibeli says. “The best way to analyse this is to have context around disposable income in its broad definition. We do not follow a cookie cutter approach to tenant mix; we pride ourselves on a data-driven informed asset management philosophy that will provide what the shopper wants.” Mothibeli says retail success comes from being nimble and comfortable to explore exceptions, provided that data proves there is a category that performs well in its context.
Itumeleng Mothibeli, asset management director, Vukile Property Fund
Darren Wilder, CEO, Fairvest Property Holdings
HOMEFRONT PROPERTY NEWS
Exxaro’s new Centurion corporate headquarters completed
G
rowthpoint Properties has completed Exxaro’s new head office, a R600m green building opposite the Centurion Gautrain Station. Exxaro, a leading South African producer of coal, commenced its long lease in the new development’s 18,500m 2 of gross lettable area in May after six weeks of early occupation. It will relocate all its operations to the new headquarters, consolidating its current offices in Pretoria and Johannesburg. The building has five storeys of office space above four levels of basement parking.
A major challenge in the building’s construction was the site’s dolomitic bedrock. More than 100 boreholes were drilled to create a three-dimensional model of the bedrock. High-lying dolomite pinnacles were blasted and drilled down, upper layers of soil were compacted and a steelreinforced concrete raft foundation with sensor monitoring was laid. Organic dolomite also inspired some of the design elements. “The building is in tune with top commercial buildings in the world’s most prominent urban centres,” says Growthpoint
head of asset management Paul Kollenberg. The development team garnered five-star Green Star SA Design certification from the Green Building Council of SA. Energyefficient measures include a performance-glazed façade, zoned lighting, waterefficient fixtures, rainwater harvesting, water-wise landscaping and a hydro panel that generates water from air. The building has dedicated parking for hybrids, electric cars and scooters, and secure bicycle racks. Innovative bathrooms include waterless urinals for women.
Balwin Properties breaks world record
A
t a special event on Tuesday, JSE-listed Balwin Properties announced that it broke a world record with its largest Green Edge registration of more than 16,000 units. This achievement, confirmed by the International Finance Corporation (IFC), is a milestone in Balwin Properties’ ongoing commitment to sustainable development and delivering quality green buildings. Edge, an innovation of the IFC, helps developers design and construct green
Balwin Properties CEO Steve Brookes
Dorah Modise, CEO of Green Building Council SA
buildings in a fast, easy and affordable way. The IFC, a member of the World Bank Group, created Edge to respond to the need for a measurable solution to prove the financial case for building green and to help jumpstart the proliferation of green developments. The Edge standard is set at a minimum of 20% reduction across energy consumption, water usage and embodied energy in materials. Balwin Properties founder and CEO Steve Brookes says: “Balwin Properties has always been differentiated
by its innovative approach to environmental management while creating quality lifestyle developments. We were the first to offer energyefficient appliances as part of the purchase price of an apartment and today we are exceptionally proud to announce the world’s largest Green Edge registration in partnership with the IFC. “The Edge software offers us a cost-effective planning tool that helps us to build green based on occupant behaviour, building type
and the local climate. Edge registration provides our environmentally conscious buyers and tenants with the assurance that they are minimising their own environmental footprint while saving on utility costs in the long term.” As an initial phase, Balwin Properties pledged to have more than 16,000 units across seven of its built-tosell and three of its rental developments rated by the Green Building Council SA (GBCSA) as Edge-certified. This is more green homes than those offered by any property developer in the world to date. “As a large and active residential developer, it is encouraging to see Balwin Properties realise the short- and long-term gains of designing, building and operating green buildings,” says GBCSA CEO Dorah Modise. “To do so during an economic downturn when many developers are holding back on upfront costs, shows they have realised the benefits of making better design work harder to increase operational savings and market appeal and accelerate property values.” The registration is expected to be completed over a period of six months. The developments to be Edge-certified are: Kikuyu, The Whisken, The Reid, The Blyde, De Zicht, The Huntsman and Ballito Hills (built to sell); and Greenpark, Greenlee and Greencreek (rental developments), bringing the total to 16 094 units.
HOMEFRONT PROPERTY NEWS
North Coast: the new property capital?
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ith King Shaka International Airport (and nine international flight routes including the recent addition of three weekly BA flights from Heathrow Airport) on its doorstep, KwaZuluNatal’s North Coast is well placed to attract residential investors from around SA and globally. “Semigration to this coastal belt between Durban North and Ballito remains a recurring trend, particularly in Sibaya, Umdloti and Umhlanga,” says Pam Golding Properties Durban Coastal area principal Carol Reynolds. “This includes Gauteng commuters seeking
an unbeatable lifestyle while the main breadwinner travels to work Monday to Friday or as needed.” Durban was named Mercer Index’s best lifestyle city in SA for the past few years. There is ongoing commercial property investment in hubs such as Umhlanga Ridge and La Lucia Ridge. The region is also benefiting from a growing retirement market. Ballito itself has grown exponentially. Seeff North Coast principal Tim Johnson says it is a sought-after area, with many investing in property to let as short- or long-term rentals, or to use as a base while commuting.
Ballito’s permanent population has grown to 30,000 residents. “With R2.7bn in residential sales per annum achieved in recent years, an additional R3bn has occurred within new estates between Umhlanga and Ballito in the past 18 months,” says Johnson. Developments selling well in Umhlanga, an area with about 70% sectional title units, include Coral Point and Le Boulevard, says Reynolds. In Durban North, all 26 units in Stonehurst, a new development, sold out within a few weeks, priced at less than R1.5m each.
House prices shift sideways but apartments surge
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he latest FNB Market Strength Index assessed SA’s house market as moderately oversupplied, particularly in the middle- to upperincome areas. FNB economist Siphamandla Mkhwanazi says it
shows that the pace at which properties are entering the market has adjusted to lower demand in recent months. The FNB House Price Index moved sideways in May, recording 3.3% year on year from 3.4% in April.
“In real terms, average house prices continued declining, which we read as a continuation of a downward adjustment in line with subdued economic activity and lower disposable income levels,” says Mkhwanazi.
The supply of new apartments is surging, however. The proportion of new apartments and townhouses – as a percentage of total new housing units – is trending significantly above its long-term average of
about 30%. In the year to date, these units accounted for about 60% of new stock, compared with 13% in 2000. FNB attributes possible reasons for the trend to an urbanising population, rising densification in
metros and consumers’ increasingly securityconscious preferences. The house index shows sectional title properties are oversupplied, while demand and supply of freestanding properties seem “more or less evenly balanced”.
Luxury rental apartments launch in Rosebank
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Independent-living offer at Winelands estate
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ulti Spectrum Property (MSP) is offering a special levy offer to current purchasers of independentliving apartments at Zevenwacht Lifestyle Estate. The apartments are complete and ready for occupation in this security estate targeting over-50s. Zevenwacht Lifestyle Estate is adjacent to Zevenwacht Wine Estate on the Stellenbosch Wine Route.
“Purchasers who buy now will not have to pay any levies for 12 months,” say MSP CEO Riaan Roos. “These one-bedroom and studio independent-living apartments are priced from R1,159,900 with no transfer duties payable. It makes retirement in the Winelands affordable and achievable.” The 54 independentliving apartments are located around the 1,100m²
Zevenwacht Care Centre. Apartments are designed with practicality and convenience in mind, and security is top notch. Each unit has a solar geyser and allocated parking. The pet-friendly estate has various facilities including tennis courts, a sauna and a spa. Weekly housekeeping, linen and laundry services are included in the standard monthly levy.
nvestors looking for luxury lock-up-andgo rental apartments close to business hubs and major roads are considering Park Central in Rosebank, Johannesburg. Park Central’s design and architecture set it apart, with features including spectacular sky gardens on selected levels and a rooftop swimming pool and sun deck. It has a concierge service, a gym, basement parking, a gourmet kitchen, meeting rooms, air conditioning, fibre, storage units and state-of-the-art
security. Furnished and unfurnished units all come standard with integrated Smeg appliances. “The building comprises 160 units over 20 floors and a limited number of units are available for rentals. Rentals start from R10,000 a month for a onebedroom apartment. We’re expecting to reach a high of more than R80,000 for three-bedroom penthouse apartments with sky gardens,” says Pam Golding Properties Johannesburg’s development manager, Peet Strauss.
Rental apartments suit young professionals working within the node, commuters needing a home base, and international corporates looking for secure, convenient urban living. Park Central is metres from the Rosebank Gautrain Station and within walking distance of malls, a hospital and restaurants, as well as the Keyes Art Mile’s curated galleries. Prices start from R1.99m for a 30m 2 one-bedroom apartment and from R12.3m for one of the designer penthouse units.
AUTHENTIC RESORT LIVING with unequalled amenities...
Experience true luxury living with access to world-class facilities, including a pedestrian boulevard with kilometres of running and cycling tracks, an 18 hole Nicklaus Design golf course with an award-winning clubhouse, tennis courts, resort pools, an equestrian centre, fine dining restaurants and casual eateries, convenience retail, children’s play nodes, outdoor gyms, a skate park, basement parking, a school, an office park (for those who never wish to leave home) and 100 more reasons to make this destination your home.
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