Upper Claremont, Cape Town R7.995 million incl vat.3 Freehold townhouses, all styled the same way, with wonderful mountainviews. Top end finishes throughout, designer kitchens, 4 beds (all en-suite)open plan reception areas which all open to the garden. Optional extras:pool, Iphone alarm connectivity, security cameras, under-floor heating etc.Walking distance to top schools. Elaine Dobson 082 413 7369 Web ref:1593522

Douglasdale, Sandton Asking R4.9 millionThe original farmhouse in the area set in a gated & secure area on ±3325m².5 Beds, study, 3 baths. Farm style kitchen & laundry. Large open plan dining & family room, separate lounge. Covered patio, pool, lush garden,irrigation & borehole. 3 Room staff acc. Double garage & carport. Contact:James Christelis 082 416 5343, Ryan Rodda 076 979 4330 Web ref 1621745

Fourways Gardens, Sandton Asking R4.699 million Designed with comfort and style in mind & offering excellent indoor /outdoorflow. Entrance hall, kitchen with state-of-the-art Smeg gas oven, formallounge, dining room, family room, opening onto covered patio, study, 4 beds, 2½ baths, staff suite, double auto garage & carport. Contact: JanetSapire 083 344 4065, Pamela Diedericks 083 680 6771 Web ref: 1644905

Upper Claremont, Cape Town R16.5 million incl vat.Superbly appointed home to be built, with glorious views. Clean lines andclassic design - comfortable contemporary living in sought after Hen andChicken Estate. Abundant light, large living spaces, excellent indoor / outdoorflow and offering the discerning buyer a wide selection of finishes and eco-friendly options. Contact Barbara Manning 083 407 3656 Web ref: 1484714

Each office is independently owned and operated www.sothebysrealty.co.za

BDlive.co.za | @BDliveSA

HOMEFRONTBusin ess Day FRIDAY, APRIL 8 2016

LANSERIA ON THE MOTORING MAP

PAGE 2

ADVICE: OWN YOUR RETAIL PREMISES

PAGE 4

SHOPPING TRADING DENSITIES UP

PAGE 10

WHY THE NETHERLANDS HAS MERIT

PAGE 8

Urban Development Zones: tax blessing or woe?They were created to stimulate investment in areas suffering from urban decay. While the tax benefits are real, some investors question whether these zones are all they are cracked up to be

CONTINUED ON PAGE 6WORDS: GEORGINA GUEDES :: PHOTOS: ISTOCK

LIFESTYLE Friday April 8 2016

Warehouse of dreams and machines

says Rooke. From there, he worked on posters, cameras and The Vicious Cycle limited-edition bicycles. He called the guild Dutchmann, to subvert derogatory attitudes towards blue collar workers, and instead celebrate their crafts and skills. And then something happened.

NOT ANY OLD CAR“I took a fairly ambitious step about three-and-a-half years ago, where I pulled a Porsche into the guild,” says Rooke. It was a Porsche 912, made in 1968, which he intended to be a parts bin for a 1971 vintage 911T he was restoring.

The result was spectacular: the “Weekend Racer”, a fusion of classic and contemporary characteristics made according to the Dutchmann formula, incorporating five decades of Porsche parts and technology. The aesthetics were beautifully handcrafted, the performance thrilling and modern.

“Then we went and raced it in the desert,” says Rooke. He drove the first Weekend Racer to Kalahari Desert Speedweek, an annual speed festival held on the dried out

In a strip of warehouses on Lanseria’s Airport Road, an intriguing workspace has sprung up — part advertising agency and part bespoke motoring showroom — although most overseas customers will never set foot in it

WORDS: GRAHAM WOOD PHOTOS: SUPPLIED

lake beds of Hakskeenpan. “A British journal picked it up and ran an article, and by the time I got back from the desert I had orders for five cars.”

The Weekend Racer took on a life of its own. Says Rooke: “I ended up in a situation where Dutchmann was no longer putting nice surfboards together and making the odd little portfolio. About 99% of its activity was based on fulfilling global orders for these hybrid Porsches.”

Although orders for Weekend Racers came almost exclusively from overseas, Rooke wanted a physical space. “I realised that it’s quite challenging for somebody sitting in Mexico to buy a $200,000 asset over the phone, not knowing who you are, besides the fact that you have a website.” It was a strange notion: building a showroom that most of its customers would never set foot in. But Rooke also needed a home for his advertising agency.

THE LANSERIA SPACERooke lives in Monaghan Farm, a housing estate north of Lanseria Airport. In a strip of warehouses near the airport, owned by Culinary Equipment Company (their on-site store sells high-end ovens and cooking accessories), MD Stefan Gutstadt was looking to set up a coffee bar, hold coffee-

based events and conduct roasting and barista training. Rooke and Gutstadt struck an agreement to share the space.

Rooke designed the warehouse interior so the agency can operate from an office upstairs. Downstairs he designed a showroom for the Weekend Racer specialist cars, and expanded the roaster into Coffee Lab coffee bar and roastery. Rooke brought in other Dutchmann projects, including surfboards, bicycles and artworks. A friend, who imports Dakota’s Grand Prix Originals range of motor racing apparel, set up a retail section.

Says Rooke: “Having a showroom has fundamentally changed our business.”

It doesn’t matter that the real buyers of Weekend Racers will never set foot in it. “If you show them that you’ve got a showroom, everything changes.” Dutchmann’s team is working on 13 Weekend Racers currently. They have completed five.

CAR MAGNETBut the space took on another life. While it serves as workspace for The New Order agency and Dutchmann, and as a working roastery, from Monday to Friday, on a Saturday it takes on an alternative guise when the showroom and Coffee Lab bar is open to the public. Dutchmann holds special launches for each completed

Dutchmann is a fascinating hybrid space where

collaborations between craft-based practices and contemporary designers have found a home. It is ostensibly a handcrafted motoring showroom, but also houses a coffee roastery, gallery, clothing retail outlet and advertising agency. A unique confluence of events led to its creation, and the surprise reinvention of a strip of warehouses near Lanseria Airport.

The man behind the Dutchmann showroom, Gavin Rooke, always had two parts to his career: one involved in “marketing and everything

that goes with that” and the other to do with “some sort of art-based initiative”. He founded multidisciplinary digital agency Trigger in 1999. He also ran the Rooke Gallery in Newtown. Rooke left Trigger in 2011 to serve as global executive officer of Isobar digital marketing agency in London, commuting back and forth. He sold his gallery space. A couple of years later, Rooke returned to SA and set up The New Order, his design-led marketing and advertising agency. But he didn’t neglect his interest in art.

MASTER CRAFT GUILD“Out of the Rooke Gallery, I formed a master craft guild that would create beautiful objects by integrating high-level craftsmen and designers,” explains Rooke. It began with a series of surfboards called the Delft Portfolio, for which Rooke set up a collaboration between master surfboard shaper Spider Murphy and some South African artists.

“We exhibited those surfboards in an art capacity, travelled around the world, and they did quite well,”

Busin ess DayA PUBLICATIONPUBLISHED BY THE CREATIVE GROUP IN ASSOCIATION WITH TMG Unit G4, Old Castle Brewery, 6 Beach Road, Woodstock, 7925021 447 7130

EDITORIAL TEAMEditor: Catherine DavisCreative Director: Mark Peddle

ADVERTISING SALESMichèle Jones michele.jones@thecreativegroup.info 084 246 8105Susan Erwee susan.erwee@thecreativegroup.info 083 556 9848Yvonne Botha yvonne.botha@thecreativegroup.info 082 563 6685

Designer: Craig D’OliveiraEditorial Consultant: Bridget McNultyManaging Editor: Kim Maxwell

The Creative Group CEO: Shaun Minnie shaun.minnie@thecreativegroup.info Busin ess DayA PUBLICATION

LIFESTYLE Friday April 8 2016

Spatially, from a functional design point of view, it wasn’t the easiest thing to get right because coffee and an automotive showroom don’t really mix that well”Gavin Rooke, Dutchmann founder

based events and conduct roasting and barista training. Rooke and Gutstadt struck an agreement to share the space.

Rooke designed the warehouse interior so the agency can operate from an office upstairs. Downstairs he designed a showroom for the Weekend Racer specialist cars, and expanded the roaster into Coffee Lab coffee bar and roastery. Rooke brought in other Dutchmann projects, including surfboards, bicycles and artworks. A friend, who imports Dakota’s Grand Prix Originals range of motor racing apparel, set up a retail section.

Says Rooke: “Having a showroom has fundamentally changed our business.”

It doesn’t matter that the real buyers of Weekend Racers will never set foot in it. “If you show them that you’ve got a showroom, everything changes.” Dutchmann’s team is working on 13 Weekend Racers currently. They have completed five.

CAR MAGNETBut the space took on another life. While it serves as workspace for The New Order agency and Dutchmann, and as a working roastery, from Monday to Friday, on a Saturday it takes on an alternative guise when the showroom and Coffee Lab bar is open to the public. Dutchmann holds special launches for each completed

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Weekend Racer before it is shipped to its new owner, when up to 100 people cram in to admire the result.

The space has also been adopted as a hub for the Johannesburg motoring community — its position on the edge of the Cradle of Humankind is the gateway to probably the best driving route in Gauteng. “The roads here are wonderful,” explains Rooke. “A lot of people come

on a Saturday morning, have a coffee and then go for a nice long drive.”

Dutchmann has become what one of Rooke’s inspirations, an Australian company called Deus ex Machina (it has a similar sort of product range), calls a “temple of enthusiasm”. It’s amazing what can happen when you combine work with passion. dutchmann.co.za

Rooke conceptualised and designed the interior of what was an empty warehouse next to the Culinary Equipment Company. He left an industrial coffee roaster and a firewall, and gutted the remaining space.

Says Rooke: “Spatially, from a functional design point of view, it wasn’t the easiest thing to get right because coffee and an automotive showroom don’t really mix that well.”

He didn’t want a typical auto showroom. “I had to get that balance between a place that’s comfortable to sit in and a showroom.”

He went with a “ fairly hybrid, relatively modernist, lounge

feel” that retained functionality and industrial roots but made it inviting and comfortable.

He chose furniture in steel, glass and wood, to extend the functional design language, softened with honest raw materials. “The wood was purposefully chosen to go with the black metal,” says Rooke. Couches are from The Mødernist in Parkhurst.

The space is a gallery too so posters from Dutchmann portfolios adorn the walls, as do surfboards, bicycles, cars and components. The roaster and coffee machines continue the “machine aesthetic” while adding a kind of homeliness.

BUILDING DESIGN

Power point

wherever possible.” Dedicated also to enabling

women, Hirsch provides bursaries for many schoolgirls countrywide and personally visits schools on a weekly basis.

True to her humble beginnings, Hirsch is hands on. “We still believe in word of mouth and great customer service. We write two to three thousand invoices a day – almost all have my cell number on it, so I’m the first person customers speak to when they have a query.”

A recipient of 15 awards for business excellence, entrepreneurship and empowerment over the past four years alone, there are simply no power outages for this fine lady.

PROPERTY PROFILE Friday April 8 2016

WORDS: ANDRÉ FIORE :: PHOTOS: SUPPLIED

Margaret Hirsch is one of SA’s most dynamic entrepreneurs. She attributes much of her success to owning the properties from which Hirsch’s trades

“I grew up in financially challenging circumstances,” says

livewire Margaret Hirsch with an enigmatic smile.

She is chief operations officer of Hirsch’s Homestores, with close on 20 branches and concept stores countrywide, and a multi-billion rand property portfolio.

“When I got married at 21, property ownership in our circles was unheard of,” she explains.

With husband Allan earning only R25 a week, it seemed that property ownership would remain that way.

But with characteristic tenacity, Hirsch insisted they put all they had — R2,000 — into buying their first plot for a home in Durban North’s then-unknown Glen Anil suburb.

Not long after, in 1979, the Hirsch’s opened their first repair business in rented premises, using R900 cash saved (R300 deposit, R300 for lights and water and R300 for signage and stationery).

Thanks to dyslexia, Allan had dropped out of school at 18 with only a Standard 7 certificate to his name. But his training in electrical repairs allowed the couple to start their first business, initially focused on repairing air-conditioners.

COLD CALLING“Our business grew through word of mouth — we prided ourselves on good customer service. And in winter, when things were quiet, I’d cold-call people, suggesting they have their air-cons serviced before summer again,” says Hirsch.

Hard work is something Hirsch has always excelled at. “You only have your brain and two hands,” she explains. As well as running her husband’s air-con repairs and raising two young children (Richard and Luci are now part of

AWARDED FOR SUCCESS

Winner of the Queen Victoria commemorative medal 2016 from the Europe Business Assembly

South African winner of CEO Global’s Most Influential Women in Business & Government Award 2015, wholesale and retail sector

Entrepreneur of 2013 award, Top Women Awards

Lifetime Achievement Award in Entrepreneurship from Sanlam Business Partners, Entrepreneur of the Year 2013 competition

Businesswoman’s Association of SA’s Businesswoman of the Year 2012

Hirsch’s in numbers

37 — years in business

18 — stores countrywide

2,500 — staff employed

R900 — cash to secure Hirsch’s first rented premises

R2bn — estimated Hirsch’s 2015 turnover

R30m — estimated 2015 spare parts turnover

has slowly expanded their portfolio, often using existing properties as collateral. Their top-selling products are LED televisions, fridges, stoves and washing machines.

VISION TO GROW“I always keep an eye on the residential market, and like to open stores where I see bustling growth. I firmly believe in visualisation too,” says Hirsch. “When I set my mind on a property, I get drawings done, put it on my vision board, and wait for things to fall into place. Through owning property, we have always had something to fall back on and have been able to weather the storms.

“Take, for example, one of the first properties I bought, which cost us R129,000 some 30 years ago. We now let it for R75,000 a month. My advice is that you simply have to start owning property. It is the only way to keep up with inflation. There is never a best time to start. And the best time to sell property is never!”

GIVING BACKAnother of Hirsch’s passions is empowerment of others. This started close to home, with empowerment of her staff. “In 1994, with the political instability, I encouraged my staff to start their own businesses wherever possible. We helped our drivers buy their vehicles from us, taught their wives bookkeeping, and helped them on their way. They still had our work, but were free to do other deliveries. This we also did with our technicians and our television and gas installers.

“We helped open about 33 small businesses that year, most of which are still going today. We continue to help our staff become independent

“Through owning property, we have always had something to fall back on and have been able to weather the storms”

the family business) Hirsch started teaching microwave cookery.

Says Hirsch: “That was the tipping point. Microwaves had just come into SA. I invited 11 women to see what they were about, and eight of them bought microwaves! I went to Japan with National Panasonic for a course, and set up five cookery schools in KZN over the next few years. At one stage I was running 25 cooking classes a week.”

Soon enough the Hirsch’s were able to buy a second residential property, letting it out to cover their bond, and take ownership of their first business premises at 27 Umhlanga Rocks Drive.

LESSONS OF CHANGESlowly but surely the Hirsch’s business was able to expand — Hirsch insisting on owning their business premises was her golden rule. “We bought our second store at 89 Broad Street in Durban in 1984, and a third one in Old Main Road in Pinetown soon afterwards.” But just as they felt they were getting ahead — they’d paid off their buildings and had banked R2m — they learnt another harsh lesson: it can all change in one afternoon.

Hirsch tells the story of spending their entire R2m of savings to buy an appliance business in Pietermaritzburg. No sooner had she signed than she realised they were liable for undisclosed debt of R3m. “We went from being R2m up to R3m down in a minute!”

It was sheer determination that saw the couple through paying off their debt. Afterwards they bought premises nearby, before expanding to Springfield Park and Umhlanga, and then to Johannesburg, Pretoria and later the Western Cape. With about 15 commercial properties, plus a number of residential properties, Hirsch

HIRSCH WITH SON RICHARD AND HUSBAND ALLAN

Urban Development Zones: tax blessing or woe?

and investors, with the incentives certainly acting as a drawcard for many. However some developers claim that the incentive is not structured in a way that allows them to claim the benefits when they most need them.

HOW THE REBATE WORKS“Government came up with this concept — it is not unique to SA — to encourage rejuvenation of urban areas and promote investment by the private sector,” says David Sedgwick, development specialist at Horizon Capital Residential, a development

U rban Development Zones (UDZs) were launched in 2003, with

the intention of providing a tax incentive for developers and investors, to stimulate the reinvigoration of areas suffering from urban decay. A number of UDZs were identified around the country and different tax incentives were created, depending on the type of development and the type of investment involved.

A number of areas have been successfully developed and the tax incentives have been claimed by developers

CONTINUED FROM PAGE 1

URBAN REJUVENATION Friday April 8 2016

company that has invested in Cape Town’s UDZ. “In 2003 the finance minister announced the tax incentive in the form of an accelerated depreciation allowance.”

Sedgwick says this allows investors to take the cost of their investment — the cost of purchase plus the cost of building repairs, extensions or improvements — and write those off against their income over a certain period. This gives investors reduced or negative earnings in the years immediately after their investments, enabling them to file a tax return on their

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UDZ NEED TO KNOW

Individuals (natural or juristic persons) may purchase properties in the UDZ and apply for the incentive. Sedgwick lists certain requirements for this to be successful:

The person should own the property, which then either needs to be extended, added to or improved. Or the person should purchase the property, which has been extended, added to or improved by a developer.

The building, apartment or unit must be within the UDZ demarcated area.

The building or unit has to be used for the purposes of trade — any activity in which a person takes on risks with the objective of making a profit. This could be an individual letting a property, or an architect using a property as their place of business, for example.

Trade within the property has to commence before March 31 2020, otherwise the owner will not qualify for the subsidy.

Deductions can be realised over different time frames, depending on the nature of the investor and the investment.

decreased income. For example, Sedgwick

explains that if an individual investor buys an apartment in a new building, the deduction would be 55% of the cost of the apartment. If the unit costs R2m the purchaser will be able to write off 55% of that cost — R1.1m — over 11 years. In the first year they can write off 20% of their rebate — or R220,000 — and in the subsequent 10 years they can write off 8% of their rebate at a value of R88,000 per year.

MINIMISING TAXSays Sedgwick: “What this means is that if you have bought a unit and want to rent it out at R10,000 per month, that would mean R120,000 in income during a tax year. Without any deductions, the investor would pay tax on the full R120,000. However if the rebate is R220,000, this means that there will be no need to pay tax during that first year, and the remaining R100,000 will be rolled over to the next year.”

This makes it very appealing for individual investors to purchase and trade out of units. It is this appeal that Horizon has capitalised on with The Eden development in Cape Town’s Observatory suburb, which is launching this month.

“What makes the property attractive is that Observatory is over the road from the UCT Medical School, and on the Jammie shuttle route to the rest of the UCT Campus. It is accessible to the airport and the Cape Town CBD and, of course, it falls within the UDZ,” says Sedgwick. He adds that young professionals are the primary target, but that by virtue of its location it will attract students as well.

In this way, Horizon

Capital is leveraging the UDZ rebate to create appeal for purchasers. They are not realising the deduction themselves, but it adds value for any individuals purchasing the units.

NO CASH FLOW BENEFIT Renney Plit, chief operating officer of Afhco, a developer and investor in affordable housing and commercial property in Johannesburg’s inner city, is less enthusiastic about the UDZ rebate. He explains that property developments are typically not profitable in the early stages when the rebate provides the most benefit, and therefore a developer’s cash flow is not supported at all by the rebate when they most need it.

“There are many ‘success stories’ but I believe the UDZ rebate has not provided the incentive for these developments. If you speak to developers in these areas about why they are there, it’s not because of the UDZ,” says Plit. “I don’t believe that the overall concept has stimulated much investment — which is its stated purpose.”

He explains that developers most need assistance in the first one to five years of initiating a development when their cashflow is impacted by their capital expenditure. To this end, the Johannesburg Property Owners and Managers Association (JPOMA) — of which Plit is the chairperson — has applied to Treasury and SARS for an adjustment to be made to the UDZ stimulus offerings.

TWEAKING REQUIRED“We have asked them to possibly look at stimulation for degraded areas that gives us benefit in the shorter term. Perhaps they could trim down

“Government came up with this concept — it is not unique to SA — to encourage rejuvenation of urban areas and promote investment by the private sector”David Sedgwick, development specialist, Horizon Capital Residential

the UDZ rebate by 50% and provide some sort of interest subsidisation in the early years when developers don’t have enough cash to service the capital.”

At the same time, JPOMA has suggested VAT relief for the construction phase of the development, which would also help to improve cash flow.

It remains to be seen whether this application will be successful, but certain developers such as Horizon Capital have been able to use the rebate to their selling-on advantage, even if they are not realising the benefits of the rebate themselves. While UDZs may not be the only reason that developers are targeting these city areas, they certainly add an appealing element to the investment mix.

THE EDEN DEVELOPMENT

“There are many ‘success stories’ but I believe the UDZ rebate has not provided the incentive for these developments. If you speak to developers in these areas about why they are there, it’s not because of the UDZ”Renney Plit, chief operating officer, Afhco

Property gaining traction in the NetherlandsThings are looking up for both the Dutch economy and the country’s property market WORDS: LEA JACOBS :: PHOTOS: ISTOCK

“The Netherlands is the fifth-largest economy in the eurozone and while it may not be booming — the economy grew by 1.6% year on year from 2014 — unemployment is low”

bottom in 2013, did have positives, mainly through providing first-time buyers with opportunities to invest.

The situation has since improved dramatically with the Nederlandse Vereniging van Makelaars en Vastgoeddeskundigen (NVM), the Dutch real estate association, reporting that in February 2015 residential sales were up 23% from January of the same year, and had increased by 16.6% for the same period in 2014.

Economic stabilityThe Netherlands is the fifth-largest economy in the eurozone and while it may not be booming — the economy grew by 1.6% year on year from 2014 — unemployment is low. The Dutch GDP advanced by 1.9% in 2015 compared with 1.6% in 2014.

Property prices across the board experienced growth during 2015. Dutch overall house prices increased by 4.2% by the end of Q3 2015. The average price paid for a home was €224,000.

INTERNATIONAL Friday April 8 2016

Detached homes recorded the largest price increase of all home categories at 5.2%. The Netherlands average paid for a detached home was about €352,000.

Certain areas perform better than others and the Global Property Guide quotes figures from Statistics Netherlands showing that the average price for an Amsterdam home increased by 8.1% year on year in Q2 2015. Rotterdam homes showed an increase of 3.3% during the same time frame. The Hague’s homes experienced a price growth of 4.4%, which is the biggest recorded increase in this city in more than seven years.

Small homes, broad mindsAll in all the quality of life

I t is most widely known for its cheese and tulips. The Netherlands — which

translated means lower countries, due to its flat geography — is the most populous country in Europe. It is the world’s second-largest exporter of food and agricultural products, responsible for 75% of the world’s flower production and 70% of its bacon.

The Dutch have an interesting relationship with water. The country has what many consider to be the safest levee and dyke systems in the world, which is understandable, given that 25% of the Netherlands is situated below sea level and 50% of its land is only a metre above sea level.

Like so many European countries, the Netherlands was hit hard by the global financial crisis during 2008-09. According to experts, property prices dropped by more than 20% over a five-year period, putting many owners in negative equity. The fallout, which hit rock

is good in Holland because although it’s such a highly populated country, houses tend to be on the small side. In general the Dutch are extremely liberal, and as such they welcome people from different cultures. Despite low unemployment levels, employers wishing to employ anybody not in possession of an EU passport must prove that there isn’t a Dutch citizen or someone from another eurozone country suitably qualified for the position before they may hire a foreigner.

Afrikaans speakers may find the Dutch language to be less of a barrier but it should be remembered that while similar in many aspects, these languages

Average Netherlands home price estimates Q3 2015:

€352,000 — detached house, increased by 5.2% from Q3 2014

€175,000 — apartment, increased by 4.4% from Q3 2014

€197,000 — terraced house, increased by 4.1% from Q3 2014

€264,000 — semi-detached house, increased by 3.8% from Q3 2014

Source: NVM

have distinct differences and it takes time to become au fait with the vernacular and marked variations in regional accents.

Weighing up the costsCollaborative online database Numbeo estimates the cost of living in the Netherlands as being slightly higher than that of France but generally cheaper than the UK. An inexpensive restaurant meal costs €15 on average while a draught beer is priced at about €4 for 500ml. A small car such as a Volkswagen Golf 1.4 costs about €22,900.

Basic services such as water, electricity, heating and gas total about €157 a month for a small apartment. The average rent paid for a one-bedroom apartment in a city centre is about €916. Rental properties further away from city centres are considerably cheaper, with an average one-bedroom monthly rental at €666. On average a city centre home sells for €3,225/m2, while those settling in outlying suburbs will pay about €2,214/m2.

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INTERNATIONAL Friday April 8 2016

have distinct differences and it takes time to become au fait with the vernacular and marked variations in regional accents.

Weighing up the costsCollaborative online database Numbeo estimates the cost of living in the Netherlands as being slightly higher than that of France but generally cheaper than the UK. An inexpensive restaurant meal costs €15 on average while a draught beer is priced at about €4 for 500ml. A small car such as a Volkswagen Golf 1.4 costs about €22,900.

Basic services such as water, electricity, heating and gas total about €157 a month for a small apartment. The average rent paid for a one-bedroom apartment in a city centre is about €916. Rental properties further away from city centres are considerably cheaper, with an average one-bedroom monthly rental at €666. On average a city centre home sells for €3,225/m2, while those settling in outlying suburbs will pay about €2,214/m2.

Savills Executive Unit mainstream capital values

City Capital values Growth Dec 2011-June 2015

Mainstream as proportion of prime capital values

Hong Kong $910,478 53% 10%

New York $707,738 40% 27%

London $699,485 49% 15%

Singapore $642,499 5% 20%

Sydney $671,165 70% 33%

San Francisco $565,620 74% 34%

Tokyo $555,771 16% 24%

Average $537,537 33% 19%

Los Angeles $493,339 56% 39%

Shanghai $397,689 9% 14%

Paris $349,249 -5% 14%

Dubai $299,464 81% 14%

Mumbai $257,948 16% 19%

Source: Savills World Research, 12 Cities

PROPERTY NEWS Friday April 8 2016

Growth in shopping centre trading densities

Global study of prime v mainstream property values

Emira expands with R403m Pretoria commercial property

Emira Property Fund has secured another prime property asset in

Pretoria’s Menlyn node with a R403m investment and 50% share in five buildings in Summit Place. This new P-grade office development includes other mixed uses. Summit Place is optimally located on the intersection of Garsfontein and the N1. Garsfontein also has several Gautrain bus stops.

Designed to be one of Emira’s flagship office

The Chairman of the South African Real Estate Investment

Trust (Reit) Association has accepted a challenge to consider what role this sector can play in ushering new leadership.

Addressing the South African Reit Conference in Sandton in March, chairman of Aka Capital Dr Reuel Khoza said South African business has to consider its role in driving change in SA.

“We are as much cursed with a spell of leadership famine or blessed with the feast of leadership. The choice is essentially ours.

“We can either develop, nourish and unleash the talent that is all around, or allow it to wither on the vine and continue lamenting the paucity of leadership in SA,” says Khoza.

Global investment in major cities is often blamed for pushing

up house prices for ordinary residents, but research by Savills suggests this is not the case. International investment seems to be pushing up prime property values instead of raising ordinary mainstream values.

The 12 cities surveyed are Hong Kong, New York, London, Singapore, Sydney, San Francisco, Tokyo, Los Angeles, Shanghai, Paris, Dubai and Mumbai.

The most expensive for mainstream residential properties are Hong Kong, New York and London. Both New York and Sydney have seen big price increases in recent years, despite restrictions on foreign ownership.

Mainstream properties have shown an average growth of 58% across the 12 cities since December 2008. Most growth is associated with economic recovery in the second half of that period, with 33% occurring between December 2011 and June 2015. Growth in prime markets is lower across

Khoza challenged SA’s business leadership to do what they could to challenge the current regime and to support a generation of new leaders.

“Nobody is predetermined to be our leader in spite of everything. This requires an understanding that in the final analysis, the citizen is responsible for its own future. The crossroads SA faces is multidimensional and demands urgent resolutions,” he says.

Laurence Rapp, chairman of the SA Reit Association, says the Reit sector should take these words to heart. “We heard a senior business leader speak so frankly about the need for dramatic change and the role that business has to play in driving that change. We in the Reit sector need to consider our role.”

Sponsored research by the South African Council of Shopping Centres

(SACSC) shows that trading at shopping centres countrywide increased in 2015. The latest Investment Property Database (IPD) Retail Trading Density Index for the quarter to December 31 2015, compiled in collaboration with the SACSC, tracks shopping centre performance using information from retail property owners and managers.

Released quarterly, the index takes into account super regional, regional, small regional, community and neighbourhood shopping centres. The index tracked 94 shopping centres with a combined gross lettable area of just more than 4-million square metres.

SACSC CEO Amanda Stops reports that for the year 2015 community centres outgrew other retail centre types by boosting trading density by 8.7% year on year. This was followed by small regional centres and regional shopping centres, with trading density

the 12 cities, with an average growth of 37% over the past seven years.

On average mainstream property values are 19% of prime property values in the 12 cities. Values are most heavily discounted in internationally invested cities including Hong Kong, Dubai, Paris and London. US cities have the smallest gap between prime and mainstream values,

Political change is the responsibility of business

alongside locally invested cities such as Sydney and Tokyo.

It would appear that international investment is concentrated in prime markets, pushing up prices in the most expensive echelons. High levels of commercial real estate investment in US cities result in international investment in multifamily housing, but this appears to

growth of 6.2% and 5.6% respectively. SA’s mega-malls, or super regional shopping centres, notched up trading density growth of 4.9% year on year.

“Community centres achieved the highest average rand spend per square metre of retail space a month in the fourth quarter of 2015 for food and department stores,” says Stops. The food index includes grocers, liquor stores, sweets and speciality food stores. The department stores category includes mini and junior department stores.

“We can see that community centres performed a close second place for food services, after super regional malls,” says Stops. Food services include restaurants, coffee shops and fast food outlets.

“The IPD Retail Trading Density Index allows us to track and monitor the performance of shopping centres and their retailers in SA. It is valued as an important tool, considering the impact of varying social and economic factors affecting the retail sector.”

properties, Summit Place offers convenient access to the new Protea Hotel Fire & Ice and Menlyn Park Shopping Centre. The development of 10 premium-grade commercial buildings sees Emira and Neotrend taking ownership of five. Current tenants include Grant Thornton, BDO, Summit Sky Grill & Bar, Land Rover, Assupol and Sizwe Ntsaluba Gobodo.

Says Emira CEO Geoff Jennett: “We believe this

investment will be enhancing to both our portfolio and the value we give our shareholders.”

Emira is a diversified JSE-listed Reit invested in a portfolio of office, retail and industrial properties. The company concluded the acquisition deal in 2015 at an average yield of 8.14%.

The first two completed buildings transferred to Emira in December 2015. They offer state-of-the-art security, ample parking

have had a moderating effect on rental growth instead of contributing to price growth in mainstream markets.

Savills is a strategic partner of Pam Golding Properties. Pam Golding reports that South African residential sales to international buyers remain low as a percentage of total sales — about 1% for SA and 3% for Pam Golding Properties nationally in 2015.

and upmarket finishes for an appealing business environment. The remaining three buildings, which include office and retail space, will be developed for completion in January 2017.

“In addition to the excellent visibility and access to Summit Place, the quality tenants on long-term leases are extremely appealing to an income fund such as Emira, providing us with a solid income stream for years to come,” says Jennett.

Khoza challenged SA’s business leadership to do what they could to challenge the current regime and to support a generation of new leaders.

“Nobody is predetermined to be our leader in spite of everything. This requires an understanding that in the final analysis, the citizen is responsible for its own future. The crossroads SA faces is multidimensional and demands urgent resolutions,” he says.

Laurence Rapp, chairman of the SA Reit Association, says the Reit sector should take these words to heart. “We heard a senior business leader speak so frankly about the need for dramatic change and the role that business has to play in driving that change. We in the Reit sector need to consider our role.”

growth of 6.2% and 5.6% respectively. SA’s mega-malls, or super regional shopping centres, notched up trading density growth of 4.9% year on year.

“Community centres achieved the highest average rand spend per square metre of retail space a month in the fourth quarter of 2015 for food and department stores,” says Stops. The food index includes grocers, liquor stores, sweets and speciality food stores. The department stores category includes mini and junior department stores.

“We can see that community centres performed a close second place for food services, after super regional malls,” says Stops. Food services include restaurants, coffee shops and fast food outlets.

“The IPD Retail Trading Density Index allows us to track and monitor the performance of shopping centres and their retailers in SA. It is valued as an important tool, considering the impact of varying social and economic factors affecting the retail sector.”

HORIZON CAPITAL SHOW DEVELOPMENT Friday April 8 2016

On the corner of Trill and Eden roads, The Eden is around the corner

from Groote Schuur Hospital and UCT’s Medical Campus. It boasts great accessibility to Cape Town city centre, V&A Waterfront, the airport, Southern Suburbs and the University of Cape Town.

The development reflects the importance of conscious living, featuring considered materials, energy-efficient features and communal leisure spaces that enable a more sustainable, more community-minded sense of living. Says John Witter, CEO of Horizon Capital: “The Eden was meticulously designed to draw in the light. Excellent design was of utmost importance to us. We wanted to create a building that would be engaging and beautiful, while respecting the local context. Some of the features we incorporated to achieve this were generous terraces for each apartment — first, to provide shading into the apartments and allow owners a natural outlet from their internal apartment space, and second, to give the building depth and character.”

David Sedgwick, managing director at Horizon Capital Residential, says: “The Eden contains the best elements of residential architecture, and will set a new benchmark in Observatory.”

GOOD FOR INVESTORSThe development is situated

within a UDZ tax incentive area, making it the perfect financial investment for buy-to-let investors. The purchaser is allowed to write off 55% of the cost (that is, VAT-inclusive purchase price) of their investment over an 11-year period, with 20% of the deductible amount written off in year one, and the balance spread evenly over the following 10-year period.

The major benefit to investors is that the large capital deduction is not automatically ring-fenced and generally creates a substantial tax loss situation for the investor. This tax loss is allowed to be offset against other taxable income including a salary or other trade income. This can result in an attractive situation where the investor initially receives PAYE/tax back when filing their tax return. This is very useful to fund any negative cash flow requirement during the first few years of a buy-to-let property.

THE DEVELOPMENTThe eight-storey building, of 73 apartments, consists of two-bedroom, one-bedroom and studio apartments starting from R1.46m. Each apartment is assigned secure parking, and there are also additional motorbike bays and a bicycle storage facility.

Generous terraces provide a seamless indoor-to-outdoor lifestyle, complemented by communal facilities like the

Find your EdenThe Eden, Horizon Capital’s new residential development, is superbly located in Observatory, Cape Town, and offers everything you need for a connected, active lifestyle

ABOUT HORIZON CAPITAL

Horizon Capital, a boutique property firm, specialises in local and offshore property investment, management and development. Established 11 years ago, Horizon Capital has become a leading expert in commercial property. Their recently constructed flagship commercial property, Ibis House, was the smallest four-star Green Star design-rated building in Africa, which pioneered the way for environmentally sustainable development, proving that green building can be financially feasible on a smaller scale.

Horizon Capital Residential focuses on designing and developing high-quality residential buildings that meet the practical needs of future owners. The buildings represent a commitment to conscious living, where design is crafted with mindful intent to create spaces that suit the modern lifestyle.

HORIZON CAPITAL SHOW DEVELOPMENT Friday April 8 2016

fitness centre, laundry room and sky deck with pool and braai area. There is also fibre optic connectivity throughout, CCTV monitoring along with 24-hour security and concierge service, to ensure the safety and convenience that the modern lifestyle demands.

The Eden is set to break ground in August 2016 with completion in November 2017.

GET IN TOUCHCall 021 425 8586, visit www.TheEden.capetown, or e-mailsales@horizoncapital.co.za

“The Eden contains the best elements of residential architecture, and will set a new benchmark in Observatory”David Sedgwick, managing director, Horizon Capital Residential

The Eden in numbers

8 — storeys high

73 — apartments

28 — two-bed apartments

27 — one-bed apartments

18 — studio apartments

2 — lifts

2km — from UCT Upper Campus

450m — from UCT Medical School and Jammie Shuttle

VERTICAL Logo LoCk upTyson ProPerTies

Set in Umhlanga and hidden amidst the majestic Hawaan Forest, which dates back some 18000 years, lies a treasure trove of property that is yet to be discovered by many – Hawaan Forest Estate. Now in its fi nal phase of release this Estate, inspired by the architecture of Stefan Antoni, not only offers the most extraordinary backdrop within an upmarket lifestyle estate, but can also lay claim to being 100% crime-free.

The fi nal phase includes stands ranging from 1140m² to 3100m², and represents the last and ultimate opportunity to build your dream home within one of KwaZulu-Natal’s most premier gated estates.

Your last opportunity to own apiece of unique forest beauty.

HAWAANFOREST ESTATE

Contact Tyson Properties on 074 786 4564

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BANTRY HILLS SHOW DEVELOPMENT Friday April 8 2016

The Atlantic Seaboard’s biggest residential developmentCape Town looks set to welcome an innovative estate, Bantry Hills

BANTRY HILLS SHOW DEVELOPMENT Friday April 8 2016

A prime piece of land in Bantry Bay, now under development,

is set to become the biggest residential development on the Atlantic Seaboard to date.

Spear Properties CEO Mike Flax, the former CEO of JSE-listed Spearhead Property Holdings, is managing the development. He says: “We have been planning this 14,000m2

development for some time, and are excited that it is finally under way. It will be one of the most iconic residential developments on the Atlantic Seaboard.”

Situated between Ilford Street and Tramway Road on the Bantry Bay/Fresnaye

border, Bantry Hills has already attracted extensive interest with more than half of the 60 uniquely designed apartments, with an average value of R12m, being sold to international buyers. “The recent announcement by Finance Minister Pravin Gordhan that transfer duty rates have increased sharply for properties more than R10m, has created much demand for such developments, as buyers need not pay the heavy transfer fees. We have already sold more than half of the apartments to buyers from New York, Mumbai, London and Copenhagen. There has also been a lot of interest from South African families

who are relocating to the Western Cape.’’

Conceptualised by architect Dennis Fabian, Bantry Hills is a curved, 13-level building facing Lion’s Head and the Atlantic Ocean. It is designed in four towers each with its own set of elevators and private lobby. The building includes a 20m indoor heated swimming pool, an outdoor swimming pool and a further 12 private pools with their own private gardens and terraces. It will also feature an in-house concierge (where guests and residents can meet in a double-volume glass lobby lounge), a spa, a coffee hub, gym, a business lounge with digital broadband facilities, air conditioning

GET IN TOUCHBantry HillsE-mail joy@bantryhills.com,bantryhills.com

“Conceptualised by architect Dennis Fabian, Bantry Hills is a curved 13-level building facing Lion’s Head and the Atlantic Ocean”

throughout, full power generation throughout, and a medical emergency room.

There is a children’s play area set in an estate-styled garden, a yoga garden, expansive storage facilities, three levels of parking for residents and guests (with one space for each bedroom acquired), ample parking outside for guests and other storage areas. The development is pet-friendly and has state-of-the-art security.

The development offers a luxurious and convenient estate-styled lifestyle that is secure with lock-up-and-go facilities.

Bantry Hills is set to be completed in November 2017.

BERMAN BROTHERS SHOW DEVELOPMENT Friday April 8 2016

Invest in a view that is yours to keepA new luxury penthouse, The Odyssey 801, has been launched in Cape Town

BERMAN BROTHERS SHOW DEVELOPMENT Friday April 8 2016

Berman Brothers Properties is proud to unveil the latest

addition to their prestigious Private Collection, The Odyssey 801 Penthouse, a true slice of paradise on the Atlantic Seaboard in Cape Town.

With the most breath-taking scenic views, picturesque opportunities for ultimate urban living, and a bustling mini-metropolis, the Atlantic Seaboard is often

Seaboard, they guarantee superior service, dedication and 25 years of property experience.

Newly developed by Berman Brothers Group, The Odyssey 801 Penthouse overlooks the beautiful expanse of the Mouille Point coastline. This stunning vantage point provides a 360° panoramic view of Cape Town, including Signal Hill, Green Point Stadium, Green Point Park, and magnificent ocean view with Robben Island in the distance.

The penthouse is the epitome of luxury. The furnishings and décor create stylishly curated interior spaces that exemplify sophistication. The master bedroom, with en-suite bathroom and walk-in wardrobe, is magnificent. A seamlessly integrated and modern open-plan kitchen, living and dining area and impressive wine cellar, cater to all entertainment requirements.

The magnum opus of this coastal haven is its rooftop entertainment area. The raised deck leads up to a lap pool, and is fitted with built-in timber seating and loungers.

This duplex penthouse (POA) spans more than 600m2, with a floor to ceiling height of 3.5m in the main living area. Equipped to five-star standards, amenities include underfloor heating, LED lighting, 24/7 concierge services, secure parking for four vehicles and two storerooms.

“This stunning vantage point provides a 360° panoramic view of Cape Town, including Signal Hill, Green Point Stadium, Green Point Park, and magnificent ocean views with Robben Island in the distance”

GET IN TOUCHCall Bianca Arnsmeyer on 072 224 2777, e-mail sales@bermanbros.co.za or visit bermanbrothers.co.za/pc/

referred to as Cape Town’s Riviera.

It was this potential that brothers Paul and Saul Berman saw in the area back in 1994 when they founded the Berman Brothers Group.

Berman Brothers Properties is the latest offering, specialising in the sales and rental of developments as well as third party stock. With a dedicated team of sales agents that live, sleep and breathe the Atlantic

RESIDENTIAL SALES & MARKETING • RENTALS • DEVELOPMENTS • HOME LOANS

WESTERN CAPEEMBASSY BELT POSITION, ON A 2 ACRE GARDEN WITHPANORAMIC “MOUNTAIN VIEWS”.

Outstanding value and potential. Enter this imposingresidence via a sweeping elegant driveway, to begreeted by a “Grand Lady”, well-constructed butneeding some updating to be brought into the current lifestyle. Reception areas and 4 bedrooms alloverlook the lush garden, large pool and mountainviews. The perfect home for the entertainer, offeringa large integrated fully fitted bar, superb cellar, saunaand spa bath. Level garden space for a tennis court,cottage or Equestrian option. Staff accommodation,double garage, massive visitor’s parking, space forboats. Borehole water and sprinkler system. A rareopportunity in this elite area

BEDROOMS: 4 BATHROOMS: 3

Ingrid Hoaten 082 490 6246Charne Shipper 083 274 6336

Web Ref: 102296

GAUTENGREMARKABLE, QUINTESSENTIALCOUNTRY-LIVING!

A well-appointed family home on a grand scale!Four spacious bedrooms face the large grassy garden and sparkling pool, all en-suite. The doublevolume living areas are big and roomy, opening upvia stacker doors to the covered patio. A bar,alongside the Jacuzzi nook, promises great enter-taining! The kitchen is big and features a Smegcooker, Caesar stone counters and a walk-in pantry.A self-contained suite serves as SQs or a guestsuite. Perfect for a large family.

BEDROOMS: 5 BATHROOMS: 5

John Conradie 082 859 0940

Web Ref: 101890

WESTERN CAPEIDEALLY LOCATED

This architect designed home is ideally located inthe heart of this small exclusive estate wheresecurity is viewed as top priority. Open plan livingand kitchen areas flow out onto spacious coveredveranda and pool. 4 bedrooms, 3 bathrooms,study nook, double lock-up garage and domesticaccommodation. Rated as one of Ballito's bestaddresses.

BEDROOMS: 4 BATHROOMS: 3

Leonie Landman 083 229 3842 | 032 946 3046

Web Ref: 94060

GAUTENGIMAGINE

The splendours of nature, the warmth of community,the total privacy…. Some of the advantages of lifein this popular boomed enclosure. As you enterthis glorious creation with a welcoming courtyardand breath-taking double volume entrance hallwith stacking doors leading to a lovely patio, gor-geous pool, elongated garden, stunning bedroomsand 5 living rooms. Standing tall among the best.True wonder awaits you.

Norma Robinson 082 554 7260

Web Ref: 101901

WATERFALL COUNTRY ESTATE

R9.95 million

CONSTANTIA UPPERR12.45 million

BENMORE GARDENSR8.9 million