Real Estate February 2016 ( Issue 29 )

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ISSUE 29 • FEBRUARY 2016

INVESTMENTPROPERTY

AND DEVELOPMENT

SPECIAL SECTION I N T H I S I S S U E

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VISIT THE LATEST APARTMENTS ON SATURDAY AND SUNDAY - 10AM TO 5PM

ADDRESS DETAILS

Apartment 7015 - Overlooking the new 7th island hole on the Jack Nicklaus signature course.(Entrance on Lloys Ellis Avenue, off Osborne Ave, at Houghton on the 7th). Office – 011 034 2201 || Alan Becker – 082 718 8100Email – [email protected]

SECURE ONE SA’S BEST LIFESTYLES

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WE OFFER A VARIETY OF LIFESTYLE OPTIONS

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CHARLEEN CLARKECharleen began her potholed path in motoring journalism in 1984, working on a newspaper in Port Elizabeth. Since then, she’s written about cars for dozens of publications in South Africa. She’s also a television presenter, and has introduced petrolheads to the world of wheels via the Topcar and De Kat shows. Charleen has won a bootload of awards, including South African Motoring Journalist of the Year, and is a past president of the South African Guild of Motoring Journalists. She’s the only person on the African continent to serve on the juries for both the World Truck of the Year and the Women’s World Car of the Year.

ROBYN ALEXANDERRobyn started her media career in 2000 and worked on various glossy magazines, including Marie Claire and House + Leisure, before moving from Cape Town to Johannesburg in 2009 to become part of the launch team of Sunday Times Home Weekly, of which she eventually became editor. This accomplished and experienced lifestyle journalist (she covers everything from architecture and design to good food) is now freelance and lent her skill to our beautiful international story on page 18 – a Majorcan villa with an equally impressive design pedigree.

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04 FEBRUARY 2016 www.realestatemagazine.co.za

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L O V E Y O U R H O M E L I V E T H E L I F E S T Y L E

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EDITOR Michelle [email protected]

ART DIRECTOR Lucia Viglietti

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DISCLAIMER The publisher of this magazine gives no warranties, guarantees or assurances and makes no representation regarding any goods or services advertised within this edition. © The Advertising Joint Venture. All rights reserved. No portion of this publication may be reproduced in any form without prior written consent from the publisher. The publishers are not responsible for any unsolicited material.

elcome to the new-look Real Estate! We start the year on high note, with our art director Lucia Viglietti working her magic yet again with a fresh take on each of the magazine’s design elements, which we love. Especially beautiful is the design for the Majorcan villa – I could spend hours lazing in the stone courtyard above.

But that’s not all that’s new: we know you’re passionate about the cars you drive, so we’ve launched a new car review page on page 16, and will be sharing the hottest releases with you each month.

For those who’re astute and nimble property investors (and those who’d like to be), whether you’re looking to invest globally or locally, we’ve put together our fi rst Property Investment & Development supplement. First up in that section is ‘Far & Away’ on page 69, in which we cover 10 diverse destinations that off er residency or citizenship through investment: St Kitts and Nevis, Grenada, Seychelles, Mauritius, Malta, USA, Portugal, UK, Cyprus and Antigua and Barbuda. We’ll be expanding on the opportunities in many of these countries in future issues.

We’ll also be keeping you up to speed as some of the country’s mixed-use mega-developments take shape in 2016, but for an overview, read our special report on the rise of super-estates on page 80, each one with equally refi ned lifestyle off erings to tempt the luxury investor.

For those who’re doing a very cautious assessment of investment options this year, Patrick Cairns looks at when it’s not necessarily a good idea to invest in property on page 90. And anyone for crowdfunding? Find out more about one of the world’s most exciting investment trends on page 96.

Finally, what would the start of a year be without a celebration? Billed as ‘a rock-star party for an incredible cause’, the legendary AfrAsia Bank Cape Wine Auction (thecapewineauction.com) takes place 12 and 13 February at Klein Constantia Estate in Cape Town. The previous two raised an astounding R17 million for education in the winelands. This year, wine enthusiasts will bid fi ercely while enjoying the culinary genius of top chefs Peter Tempelhoff and PJ Vadas. It’s not to be missed. Then kick back and relax and enjoy a perfectly timed Valentine’s Day Sunday.

Michelle SnaddonEditor, REAL ESTATEwww.realestatemagazine.co.za

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C O N T E N T S


F E B R UA RY2 0 1 611 WORD ON THE STREET

16 CAR REVIEW Mustang’s South African debut and the full Bentley travel experience

18 INTERNATIONAL HOUSE A beautiful Majorcan bolthole that combines traditional vernacular architecture and materials with a simple but stylish way of living

28 SHOW HOUSE Contemporary comforts and laid-back textures have made this minimalist but earthy Durban house perfectly suited to family life and entertaining

37 LIFE THROUGH A LENS The new face of photography sees super-saturated images, fluid identities, self-conscious styling and in-your-face attitude take the stage 47 MARKETPLACE The property news you need to know now

52 DREAM HOME This pastel-pink Bermuda villa is a bona fide real-estate fantasy

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Your most precious resource is time.Let us do what we do best – find your dream luxury property – so that you have more time to do what you do best.If you’re looking for a bespoke property experience, including all the bells and whistles, email us on [email protected] and we’ll get back to you immediately.

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L I M I T E D E D I T I O N L I V I N G

L A U N C H I N G M A R C H 2 0 1 6

Presidential Residences from R40m and Luxury Residences from R12m. Call +27 81 842 0937.

darealty.com/aurum

Bantry Bay, Cape Town - the perfect location tobehold the infinite blueof the majestic AtlanticOcean. To indulge inbreathtaking sunrises andsunsets. To experience arich, flavourful culture. Tobe seduced by magnificentstretches of brilliant white,sandy beaches like nowhereelse in the world. And now,on this perfect nirvana,to witness something quitespectacular on the rise.

Set against the dramatic backdrop of Lion’s Head, Bantry Bay, on the site of the iconic Ambassador Hotel in

Victoria Road – one of Africa’s most exclusive addresses - a true work of art will soon be developed. AURUM – an ultra-luxurious development by internationally renowned Da’Realty, will soon grace this incredible setting with a singular focus: to redefine the concept of Limited Edition Living in Africa.

Da’Realty promises to deliver an unrivalled and revolutionary calibre of opulence to owners of the fifteen Luxury Residences and the eight Presidential Residences of AURUM. These timeless and future forward

residences will confidently compete with the very best New York, Dubai and London have to offer.

Da’Realty is an international real estate developer intent on turning property development into an art form. They are sparing no expense on superb imported designer specifications and ensuring unforgettable ocean and mountain views and decadent living spaces bathed in natural light.

On the oceanside of Victoria Road, the original Ambassador Hotel will be transformed into eight

ultra-luxurious Presidential Residences, available in 2, 3, 4 & 5 bedroom configurations and ranging from 210m2 – 750m2 in size, while from an elevated position on the opposite mountainside, fifteen Luxury Residences will be developed, available in 2, 3 & 4 bedroom configurations and ranging from 117m2 – 530m2 in size.

Pure indulgence is the order of the day in both the Luxury Residences and the Presidential Residences. Both settings will boast ultra-spacious bedrooms and vast open-plan living room areas,

ARMANI/Dada designer kitchens, audio visual systems by sound masters Bang & Olufsen, sanitary ware fittings by Italian craftsmen GESSI, at least two private parking bays each and sensational sunsets and ocean views from elevated settings.

To top it all off, Cape Town has it all: exquisite natural beauty, refined entertainment options, spectacular lifestyle and people and a distinct Capetonian heartbeat that fuels its authenticity. And soon it will have AURUM, a high-end development destined to draw discerning

local and international investors.

AURUM guarantees to take luxury development in South Africa to a new level – namely that of ART, creating opulent residences that promise not only high living, but also high returns.

Experience the perfect symmetry of art and life. Live the AURUM life.

For more information, call +27 21 202 2274 /+27 81 842 0937 or email:[email protected]

A D V E R T I S E M E N T

AURUM - TURNING REAL ESTATE DEVELOPMENT INTO ART

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Our vision is to combine opulence and nature to culminate in lifestyle artistry.““

*ARTIST’S IMPRESSION *ARTIST’S IMPRESSION

*ARTIST’S IMPRESSION

*The AURUM project is currently in planning and development phase and the final product may differ from the artist’s impressions/pictures depicted in this document.

www.realestatemagazine.co.za FEBRUARY 2016 11

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THE EAGLE HAS LANDEDA water safari in Botswana’s Okavango is always high on the avid safari lover’s checklist, so the reopening of the prestigious Belmond Eagle Island Lodge after an extensive rebuild was met with much excitement. The new lodge has 12 fully refurbished, 82m2 tented suites, each with a plunge pool and deck. The look throughout is of understated luxury, and was created and managed by Inge Moore of London-based interior design firm HBA (Hirsch Bedner Associates) and her incredible attention to detail extends down to the subtle grey mosquito netting that allows better game and bird viewing. The new interleading lounge, restaurant and deck areas feature a family-style open kitchen with a wood-burning pizza oven. Belmond Eagle Island Lodge is perched on a private island encircled by some of the deepest stretches of the Okavango Delta, recently declared a UNESCO World Heritage Site and one of the world’s largest inland water systems, and so is one of few properties to offer a water-focused safari experience. The lodge was built to ensure a light footprint and sustainability, in line with the Okavango Management Plan that requires that no permanent structures exist in the Okavango Delta. belmondsafaris.com

P L A C E S T O B E A N D T H I N G S T O S E E I N T H E H I P P E S T ’ H O O D S

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W O R D O N T H E S T R E E T


You say potatoDesigned around the steampunk aesthetic, Jozi’s newest eatery, the Potato Shed at Newtown Junction, was founded by John and Maira Koutsoudakis of the Life Grand Group, and takes culinary inspiration from South America. The Potato Shed is part of an urban renewal project of the historic Newtown precinct and is located in a 104-year-old building. No expense has been spared in the transformation of what was once Jozi’s grandest trading locale and it’s a fitting pitstop for those visiting the SA designer shopping node, Workshop Newtown, a few hundred metres away – we get the inside scoop from some of these designers in our next issue. lifegrandcafe.com

LET IT ALL HANG OUTSummer in Cape Town is all about late-night bar hopping and dining. The newest addition to Bree Street’s bar and bakery scene is Arcade, a restaurant, bar and achingly cool hangout. The menu is made up of wholesome and tasty comfort food, the venue kitted out in an urban-industrial chic aesthetic and the vibe electric. It’s open later than most establishments in the city, making it a great spot to get the party started or to wind it down. arcadecafe.co.za

COCKTAILS FOR CONNOISSEURS Since late last year you couldn’t open Instagram without seeing moody shots of the beautiful cocktails and designer interiors of everyone’s favourite new bar, Outrage of Modesty (also known by its catchy acronym OoM). In line with its mission to ‘redefine the culture of the cocktail’, the experience is intimate (the bar is small), the ingredients top quality and the menu innovative. Look forward to taste sensations you never thought possible (think pink-lady apple, fynbos, wild rice and corn blossom) in equally artful interiors. anoutrage.com


BRIGHT SPARK ‘A serious wine that doesn’t take itself too seriously’, Babylonstoren’s new Méthode Cap Classique, Sprankel (‘sparkle’ in Afrikaans), will quickly become a fi rm favourite. The creative fl air characteristic of the estate is evident in the new offering, from the packaging by Peet Pienaar, to the interesting fl avour combinations: layers of biscuit and brioche balanced by notes of refreshing apple, lime and grapefruit. babylonstoren.com

Start your engineSetting yourself apart on the foodie scene in Cape Town is no easy feat. Dirk Molsen, classic car enthusiast, together with his wife Lauren and son Alex, has done it by rolling a classic car showroom and coffee shop into one. Dapper Coffee Co and adjoining Club 9 (named for their emphasis on Porsche – whose models often start with a nine) is a slick industrial space designed by Rivets & Rockets. Dirk is passionate about keeping these collectors’ pieces in the country, so get to know the cars by stopping by for a meal – the food is easy seasonal bistro style and the coffee excellent. 021 823 2444; 021 422 2994

The spice of lifeWhen Abigail Bisogno, co-owner of The Spice

Route in Paarl, decided to open a boutique at the lifestyle destination, she brought 35

years of retail experience, a passion for South African design and a hands-on approach to the

venture. The result is The Trading Company, designed in collaboration with interior designer Camilla Fraser, a beautifully curated space fi lled

with locally made and sourced pieces. The range is wide, from botanical print fabrics to all-natural beauty products, and artisanal jewellery,

and achieves a balance between exotic and local which appeals to both tourists and South

African visitors alike. spiceroute.co.za

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THE BIG BANGTo celebrate Bang & Olufsen’s 90th anniversary, the company launched the BeoLab 90, a technological masterpiece of a loudspeaker. It’s fitted with Bang & Olufsen’s new Active Room Compensation technology, which allows you to stage the sound so accurately that you can hear precisely where individual band members would be if they were in the room with you. The Beam Width Control enables you to change the width of the sound beam to suit different listening situations, from focused on one spot to a great cinematic experience. Not least, the BeoLab 90 looks more like a contemporary sculpture than a piece of tech. bang-olufsen.com

Exhibit AThe fourth instalment of the Cape Town Art Fair will take place at the Cape Town International Convention Centre from 19 to 21 February. As one of the premier art fairs on the African continent showcasing contemporary art from Africa and around the world, and a flagship Fiero Milano Exhibitions Africa event, it attracted over 7 000 visitors in 2015. This year’s fair will coincide with the much-anticipated Art Week Cape Town, a week-long programme of events. You can also look forward to a Talks Program, one which will unpack relevant issues. capetownartfair.co.za

DOUBLING UPFor the first time Pantone’s colour of the year for 2016 is two shades – Rose Quartz and Serenity. Where Rose Quartz represents humanity’s need for warmth, compassion and a sense of composure, Serenity evokes a feeling of cool calmness and relaxation in turbulent times – proof that when it comes to pairs, opposites do indeed attract. pantone.com

JOINED, THEY REFLECT BALANCE

(!I·-·Aw facebook.com/SACentury21

(!I · @SACentury21

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CD 0114550066 £) info@century2l .co.za E) www.century2l.co.za

Franchise OpportunlHes: [email protected] Careers: [email protected]


TEXT Charleen Clark PHOTOGRAPHS Supplied

THE MUSTANG IS TO CARS WHAT COCO CHANEL IS TO FASHION: THE ICON

HORSE

The most desired vehicle on the planet, it’s made more than 9 000 appearances in music and video games and on screen, including in the cult 1960s movie Bullitt, and Gone in

Sixty Seconds. It’s also the world’s most popular vehicle on Facebook, with more than eight million likes. And it’s finally in South Africa.

There’s no doubt that it’s been worth the wait: the latest Mustang is undeniably one of the greatest. Like the Mustangs of old, it’s big, bold and brash. Want a subtle car? Then don’t buy a Mustang. But if you desire something that turns heads, a car that will attract attention wherever it goes, then the Mustang fits the bill perfectly.

Six model derivatives are available in South Africa, including a coupé (‘fastback’ in Mustang-speak) and a convertible. The convertible’s road manners are especially surprising, with its rigid-coupé feel translating into better handling,

C A R N E W S

especially when the car is pushed to the limit.Two engines are up for grabs: a stomping

5.0-litre V8 or the all-new 2.3-litre four-cylinder EcoBoost. Both engines can be paired with a six-speed manual or automatic transmission.

The bad news is that they’re sold out in South Africa until 2018. But if we could lay our hands on one, we’d go for a convertible with the sensational V8 and the stunning auto transmission – that would give us all the fun of a convertible without any of the handling compromises.

Interestingly, the four-cylinder engine did receive rave reviews at the local launch of the Mustang. And yes, it does a good job – it scampers to 100km/h in just 5,8 seconds and sips fuel at a rate of just 8 litres/100km. But the V8, which is a full second quicker in the 0-to-100km/h dash, sounds so good. Plus, the Mustang and a V8 go hand-in-hand – like fish and chips.

A MATCH MADE IN HEAVEN BENTLEY AND CRYSTAL CRUISESBentley SA has announced a partnership with Cruises International to offer an extraordinarily luxurious six-star cruise experience for two with Crystal Cruises, valued at R220 000, with every purchase of a select new Bentley currently in stock. The offer runs until the end of February 2016.

It’s a perfect match. Bentley designs and builds the world’s most desirable luxury cars, while Cruises International is the largest international cruise-line representative in southern Africa.

Cruises International managing director George Argyropoulous created The Luxury Portfolio which contains the luxury lines Crystal, Oceania, Azamara and the Yachts of Seabourn, to service the rapidly growing market for five- and six-star cruising in South Africa.

To learn more about the collaboration, visit your nearest Bentley South Africa showroom in Cape Town or Johannesburg.southafrica.bentleymotors.com; cruises.co.za

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JUSTUS JAGERGRAHAM’S FINE ART GALLERY PRESENTS

PrivateSensation68 on Hobart, Block ACorner William Nicol Drive and Dover Road(entrance o� Hobart Road), Bryanston

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Monday to Friday: 10:00 - 18:00Saturday: 9:00 - 17:00Sundays and evenings by appointment

UNTIL 4 MARCH 2016

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I N T E R N AT I O N A L H O M E

VILLAGE PEOPLEA LIGHT-FILLED HOLIDAY HOME IN THE SECLUDED VILLAGE OF DEIÀ ON THE SPANISH ISLAND OF MAJORCA COMBINES ELEMENTS OF THE AREA’S TRADITIONAL STYLE WITH A VERY CONTEMPORARY SENSIBILITYTEXT Robyn Alexander/bureaux.co.za STYLING Sven Alberding/bureaux.co.za PHOTOGRAPHS Greg Cox/bureaux.co.za

The village of Deià is definitely off the beaten track, even though it’s situated on Majorca, one of Spain’s top holiday destinations. ‘For centuries Deià hid behind a rocky hill in the middle of a valley, protecting itself from pirates, looking towards the mountain,’ say Oro del Negro and Manuel Villanueva of MORE Design, the designers of this serene vacation home.

It’s precisely this secluded and protected atmosphere that has more recently led Deià to becoming a much sought-after vacation spot. Home to English poet Robert Graves from 1926 until his death in 1985, it was also the location of a house owned by entrepreneur Richard Branson (and the Virgin Records owner’s crew of musical guests), and Deià’s wide range of visitors now includes, say Oro and Manuel, ‘writers, artists [and] musicians and, lately, lots of people in the fashion business’.

But anyone with an eye for design is likely to be captivated by the sophisticated mix of simplicity and complexity that characterises the interiors of this house. MORE Design was asked to create the interiors when it was being built – strictly according to the building codes and regulations that govern construction in this historic and picturesque village, of course – and the time schedule was tight. But, given free rein with the design, they quickly created interiors that beautifully blend contemporary and traditional elements.

Custom-made oak front doors complete with rustic hand-forged hinges open directly off the street onto a light-filled living room designed for lounging, with built-in upholstered seating and a projector for TV and movie viewing. Head up the stairs to an open-plan living, kitchen and dining area. On one side a dramatic red-velvet sofa faces a boldly sculpted fireplace. In the centre of this space is the kitchen, which combines practicality with loveliness: it features natural-stone countertops, rough-hewn wooden storage drawers and bold black pendant lamps. The sleek adjacent indoor dining area, perfect for laid-back late breakfasts, completes the public space of this central level of the house.

Oro and Manuel describe their design ethos as ‘a permanent search for balance – the traditional versus the contemporary, simplicity and complexity, landscape and the interior world, Oro and Manuel, the edge and the curve’, and this philosophy is very well expressed in this house. A traditional feel is created by elements such as the sculptural staircase and the use of natural materials and textures, which is then heightened and thrown into relief by contrasting, very contemporary touches such as the brass lighting fixtures and taps, the pops of red, pink and black in the colour scheme, and the use of sleek contemporary

furniture and lighting designs – such as the Etch pendants by Tom Dixon in the kitchen, the Philippe Starck-designed Ghost dining chairs and the sensual wall lamps, several of which were designed by the pair themselves.

‘We treat the structure of our buildings as an interactive physical experience,’ say the designers, ‘much like installation art or sculpture. The design language we use stems mostly from a contemporary interpretation of the Majorcan vernacular.’

Along with this aesthetic, quite naturally, goes the commissioning of many local artisans and craftspeople to create new versions of traditional finishes and furnishings. Their first choice is always to work with local resources and materials, although, as the duo emphasise, they’re ‘not necessarily only recycling material, but innovating its uses’. Among the best examples of this practice in the house are the gorgeous recycled oak doors (by local artisan Boni Fuster) and the recycled brass light fixtures, which MORE Design created in collaboration with FONT Bcn. Oro and Manuel are also quick to acknowledge ‘all the help from our builder friends at Contratas Soller and architect Claudio Hernandez Alcover’. And stonemason Juan Camposol was instrumental in creating the floor designs that combine insets of natural stone with bone-coloured cement – a technique that has been used to especially gorgeous effect on the staircase.

Up those stairs on the top floor is a selection of sleeping and bathing spaces that includes a sumptuous main bedroom, decorated in black and white, with its own private lounge area, and with a subtle sense of softness provided by a myriad layered textures. The simple bathrooms take pared-back minimalism to new levels of luxe with custom-made baths and natural-stone vanity counters. The warming gleam provided by touches of brass continues through all these areas via the use of taps and other bathroom fittings, and the lovely recycled lights.

Of course, every holiday home needs a comfortable outdoor living space, and the design of this area has also been given careful attention by MORE Design. Wander out for a swim in the spectacular pool and it’s likely you’ll find yourself lingering for hours on an inviting built-in upholstered couch. The space is also perfectly fitted out for lunches and dinners alfresco, with a beautiful rustic recycled wooden table taking centre stage.

This home is the ideal space in which to relax and recharge: it’s serene and pared-back, yet also features subtly stimulating shapes, textures and objects. Del Negro and Villanueva suggest that interior design is perhaps the most emotional of all forms of design, the one with the strongest ability to conjure up ‘the ethereal feelings within, the internal sensations and emotions’. In this tranquil house, those feelings seem likely to linger long after its occupants have returned to the hustle and bustle of their everyday lives. MORE Design www.moredesign.es

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In this secluded outdoor nook is a weathered reclaimed wooden table handmade by local artisan Mateo José Ferrer

from Majorca-based furniture makers Galeria Barcelo (galeriabarcelo.es). The planters are recycled and the hand-forged metal hooks on which they hang were made by local

metalworker Toni Calafell BACKGROUND IMAGE A view across the rooftops of Deià towards the surrounding hills



‘WE TREAT THE STRUCTURE OF OUR BUILDINGS AS AN INTERACTIVE PHYSICAL EXPERIENCE, MUCH LIKE INSTALLATION ART OR SCULPTURE’


THIS PAGE, CLOCKWISE FROM TOP LEFT These typical tiled street decorations are a reminder that Majorca is part of Catholic Spain; sunset at Deià Cove, a short walk from the village; the outdoor living area has a layered look, with plenty of textures on show. Built-in seating has been upholstered in fabric from local textile company Tapiceria Riera (www.tapiceriariera.com); Oro del Negro (left) and Manuel Villanueva of MORE Design on the staircase. The stairwell does double duty as a lightwell – and the light flooding in from above beautifully illuminates the curved banister and natural stone used on the stair treads; Deià is almost completely surrounded by protective hills. A romantic ground-floor guest bedroom leads directly out to the pool area OPPOSITE In the outdoor living area, light fittings are recycled Balinese chicken-pen baskets. The wooden dining table was sourced from Michael Roberts of Son Viscos in Valldemossa and the metal chairs were purchased online. The sheepskins are from Ikea (ikea.com)

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VILLANUEVA AND DEL NEGRO DESCRIBE THEIR DESIGN ETHOS AS ‘A PERMANENT SEARCH FOR BALANCE –TRADITIONAL VERSUS CONTEMPORARY, SIMPLICITY AND COMPLEXITY’



CLOCKWISE FROM LEFT French doors and sky-blue shutters are a nod to a traditional vernacular; Oro and Manuel; a tactile stone countertop, natural-pebble floor and unlacquered brass mixer tap and spout by Vola (vola.com) in the guest toilet; this small bathroom window affords a charming view of the nearby rooftops OPPOSITE The hallway and stairwell feature a reclaimed brass light fixture from antique store Sa Costa (antiguedadesacosta.com) in Palma, and brass switch plates are the products of a collaboration between MORE Design and FONT Bcn (fontbarcelona.com). Just visible through the door is an airy children’s bedroom BACKGROUND IMAGE Natural-stone walls line the street in which the house is situated




CLOCKWISE FROM TOP LEFT In the main bedroom, the pink satin quilt and tactile wooden stool and table, all of which were chosen by the homeowner, offset the elegant formality of the pared-down four-poster bed. Pale wooden panelling is a textural feature here; discreetly tucked away behind pale wood-panelled walls and doors is a private study area. The traditional Majorcan chair contrasts with the rough-hewn wooden slab that serves as a desk, with the room’s eclectic look completed by a vintage-style Brinn table lamp from Belgian design store Flamant (flamant.com); woven and wooden textures add interest to the main bedroom: the fabric used for the curtains is ‘llenguas’ by Majorcan textile company Tapiceria Riera (tapiceriariera.com) and the table is from Sleeping Company, a furniture store in Palma; in the kitchen, the joinery is by local artisan Boni Fuster, with handles and other hardware designed by MORE Design; Oro with his dog, Pearl, at the entrance to the house. The oak front doors were custom-made by local artisan Pedro Casanovas and are finished with hand-forged hinges and a brass lock



THE SIMPLE BATHROOMS TAKE PARED-BACK MINIMALISM TO NEW LEVELS OF LUXE

In this bathroom, MORE Design customised a traditional cast-iron bathtub by having it covered with a micro-cement finish. The unlacquered brass bath spout, mixer tap and hand shower are all by special order from Vola (vola.com)



A D V E R T O R I A L


FOR MORE INFORMATION, VISIT MIELE.CO.ZA

MIELE’S AWARDSContinuous development and improvement is core to Miele’s business, as demonstrated by the numerous accolades it has won over the years. These are based on verifiable values or technical innovations. For example, Miele won the coveted Red Dot Design Award and the iF Design Award in 2013, 2014 and 2015. Miele is especially excited about awards nominated by consumers themselves. For example, Miele has repeatedly been voted ‘Most Trusted Brand’ by Reader’s Digest readers, and has been awarded first place for Best Customer Service several times by the German Kundenmonitor (customer monitor) – distinctions that reflect a high level of customer confidence.

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THE BEST OF THE BESTMIELE HAS REMAINED TRUE TO ITS BRAND PROMISE, ‘IMMER BESSER’ (FOREVER BETTER) SINCE ITS ESTABLISHMENT IN 1899

Miele has been an independent, family-owned company since its establishment in 1899 and is equally committed to its owners, employees, customers, suppliers, the environment and society. The company focus is on manufacturing domestic appliances for the kitchen and the laundry room, and for floor care, as well

as machines for use in commercial operations and medical facilities (‘Miele Professional’). Its strategic vision is to become the most favoured brand of the industry in all relevant markets.

Miele offers products to its customers that set the standards for durability, performance, ease of use, energy efficiency, design and service. The company focuses exclusively on the Miele brand and its consistent positioning in the premium segment. Miele stands for long-term thinking and planning, continuity of values and goals, good relationships with customers and suppliers, and an employee-oriented corporate and leadership culture.

If you own a Miele appliance, you can be safe in the knowledge that you own the best that money can buy. Since the company was founded in 1899, Miele has remained true to its ‘Immer Besser’ brand promise. This means that it will do all it can to be ‘forever better’ than its competitors and ‘forever better’ than it already is. For its customers this gives peace of mind, knowing that choosing Miele is a good decision – and probably the decision of a lifetime.

MIELE QUALITYFor more than 100 years it has been proven that you can trust Miele and rely on its appliances. It is the only manufacturer in its branch of industry to design, test and manufacture appliances so that they last up to 20 years.

MIELE TECHNOLOGYMiele stands for excellent results combined with the lowest possible energy consumption. This applies to the hygienic and gentle care of your laundry, your flooring and your crockery, as well as conjuring up exquisite culinary delights.

MIELE CONVENIENCEWhether a conventional rotary switch, discreet sensor controls or a high-resolution touch display like the one on your smartphone, operating a Miele appliance is easy and fun. Add to this a multitude of convenient and reliable automatic programmes and a great love of detail, and success is guaranteed.

MIELE DESIGNMiele believes in clean lines and timeless elegance. Nowhere else will you find a comparable range of built-in kitchen appliances, with consistency in design lines and colour options, to suit the most diverse of interior designs and kitchen furniture fronts. Whatever your style, Miele is the perfect partner.

MIELE SERVICEMiele’s after-sales service is fast and efficient and the company has won multiple awards. And if you need personalised instructions on appliance use, or professional cleaning your machines, Miele will always be there for you.

THE MIELE BRANDMiele customers have high expectations for the performance and the environmental friendliness of its domestic appliances. People who buy Miele are quality-conscious and have style.

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TEXT Candice Botha PRODUCTION Lucia Viglietti PHOTOGRAPHS Lar Rattray

THROUGH A SERIES OF CLEVER RENOVATIONS, GREG AND GIORGINA SLOTAR HAVE TURNED THIS HOUSE INTO THEIR IDEAL HOME

PRESENT PERFECTW

ith its contemporary design and wood and white detailing, it hardly seems possible that this house was originally a modest suburban Durban

home. ‘It used to be a little facebrick house on the hill with a picket fence at the bottom of the garden,’ say current owners Greg and Giorgina Slotar who live there with their daughter, Jordan, 14 months old. ‘When we bought it, it had already been somewhat renovated, with a new facade, bathrooms and open-plan living area.’

The house’s main attraction was the uninterrupted sea view which extends from the Bluff all the way to Umhlanga. And the couple could also see the potential the house had, and soon set about additional renovations. ‘We demolished the outside entertainment and pool area, changing it completely. It was a massive job that required major earthworks and manual labour through some of the worst rain Durban has seen in years,’ Greg recalls.

The new space was certainly worth the hard work, as it has extended their living area dramatically. The covered patio with its exposed beams opens directly from the kitchen and dining area, connecting to a bar area, above-ground swimming pool and raised deck just perfect for lazing in the sun. ‘We have the best time out here with our friends and family. We love entertaining and having the people we care about around us, and this space lends itself so perfectly,’ says Greg.

To enhance the flow between the indoor and outdoor spaces, they replaced the laminate floors with a wood-look vinyl that runs throughout, and furnished the patio in the same style as the rest of the house – a combination of raw-wood pieces and industrial edginess with subtly glamorous details such as a pair of beaded chandeliers, sequinned cushions and reflective white tiling around the swimming pool. ‘We love a contemporary yet rustic feel, and are both very outdoorsy people who enjoy soaking up nature and being on the beach, so creating a calm natural feel, with the odd retro piece, is how we feel most at home,’ says Giorgina. ‘Bringing in the natural textures of wood and wicker was a great way to create warmth, as the white and grey palette could have been rather clinical on its own.’

A standout piece is the oversized sofa upholstered in nguni hide, which was a must-have for Greg, although Giorgina was less enthusiastic. But, she now admits, it fits seamlessly into the home. ‘We originally called

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S H O W H O U S E


‘WE LOVE ENTERTAINING AND HAVING THE PEOPLE WE CARE ABOUT AROUND US, AND

THIS SPACE LENDS ITSELF SO PERFECTLY’GREG SLOTAR

The sleek white countertops in the bar area are juxtaposed with textured wood cladding and stools with a distinctly organic feel OPPOSITE Greg and Giorgina love the outdoors, so bringing in natural elements like wood and wicker was a must. The bold silhouette of a vase of king proteas works particularly well in the contemporary space


it the moo couch but since we got married it’s become the lobola couch,’ she adds.

With the entertainment and living area complete, the couple set their sights on giving the main bedroom and en-suite bathroom an overhaul. ‘The bathroom was very small, with a single vanity, a pokey shower and a bath my husband couldn’t fit into,’ Giorgina recalls.

They knocked out the wall between the bedroom and bathroom with the help of Amend-a-Home to create an open-plan space, and ingeniously raised the bath on a platform so that the sea views can be enjoyed while soaking in the large freestanding tub. The durable vinyl flooring meant that they could keep the floor uniform throughout the space without having to worry about water damage.

The main bedroom is now one of their favourite areas in the house. ‘It’s perfect for when we just want to unwind: either to snuggle in on a rainy day with a movie while looking over a stormy sea, or to enjoy a perfect day, reading a book and look out onto the coastline,’ she says.

Giorgina, a clinical nutritionist, spends a lot of time in the kitchen. ‘Growing up with an Italian mom had me experimenting in the kitchen from a young age, and my work inspires me to nourish and nurture my family through food,’ she says. It’s this focus on family, further evident in the framed photos and personal mementos that abound in the house, that makes this chic space a truly warm and welcoming home.

‘CREATING A CALM NATURAL FEEL, WITH THE ODD RETRO PIECE, IS HOW WE FEEL MOST AT HOME’GIORGINA SLOTAR



S H O W H O U S E

The exposed beams in the covered patio area give it a spacious feel. The couple set out to create a contemporary yet rustic feel in the decor, reflecting their love of the outdoors. The vinyl flooring is durable and waterproof, making it ideal for the covered patio, kitchen and bathroom, and it runs throughout the house, creating a seamless effect OPPOSITE, CLOCKWISE FROM TOP RIGHT The above-ground swimming pool and raised deck give this area a sophisticated resort look. Low-maintenance palm trees and a neat hedge introduce greenery; vibrant red accessories make a bold statement in the well-appointed kitchen, where Giorgina spends a lot of time. A separate scullery ensures that any mess is easily hidden from view; a pair of beaded chandeliers and chunky glass vases are minimalist without being mundane; Greg, Giogina and Jordan relax on the covered patio, which they added on to give them a spacious entertainment area that can accommodate family and friends. Plenty of comfortable seating and a large dining table encourage relaxing and socialising



S H O W H O U S E

The uninterrupted sea views were the main attraction for Greg and Giorgina. Sliding glass doors and shutters that fold away allow them to enjoy the vista from the bed. A pair of sequinned cushions add a touch of subtle glamour to the pared-back space OPPOSITE, CLOCKWISE FROM TOP LEFT The nguni-hide couch was a must-have for Greg and, despite Giorgina’s initial reservations, it’s the perfect statement piece for the lounge. Although the couple have kept the flooring the same throughout, they’ve used area rugs to demarcate spaces. The chairs and lamp are from Weylandts; Giorgina and Jordan enjoy sitting on the patio looking out at the pool. As the area is behind the house, it’s protected from the elements; Jordan’s nursery is a tranquil space in which Giorgina has added fun elements like a hot-air-balloon mobile and a giant teddy bear; the family’s three dogs are just as at home in this welcoming house; ‘The decision to have an open-plan bedroom-bathroom was a complete winner,’ says Giorgina. ‘It gives such a feeling of space.’ The bath on its raised platform allows them to enjoy the sea views while soaking



S H O W H O U S E


‘IT’S PERFECT FOR WHEN WE JUST WANT TO UNWIND’ GIORGINA SLOTAR

FOR SALE For more information contact owner Giorgina Slotar on [email protected]




RENOVATING YOUR KITCHEN WITH QUALITY FINISHES LIKE CAESARSTONE CAN ADD INSTANT VALUE TO YOUR HOME

With the kitchen often taking centre stage in home life, it makes sense that its design and finishes are the major attractions for people in the market for a new house. Carol Reynolds, Pam Golding Properties area

principal for Durban’s coastal region, says your first port of call is to ensure that your kitchen countertops are beautiful. ‘This is probably the most critical component of your kitchen,’ she says.

Caesarstone’s marketing director Trevor King agrees that upgrading your countertops to Caesarstone can increase the perceived value of your house. ‘Caesarstone is synonymous with excellence and great design. It’s a strong selling point for potential buyers, who are looking for signifiers that will lend them peace of mind about the quality of the property they’re considering.’

Beth Haynes, kitchen designer and Caesarstone Kitchen of the Year competition judge, says, ‘An efficient work surface plays a very important role in creating enough space for all functions, from storage to preparation, catering and even entertainment.’ She says that a good rule of thumb is to spend seven to 14 per cent of the value of your property on your kitchen, focusing on work surfaces, appliances and units.

While updating the kitchen’s surfaces is imperative, Carol adds that replacing and updating handles and replacing or spraying old cabinet doors can make a big difference when it comes to updating your kitchen’s look and feel. ‘A coat of paint works wonders. Similarly, adding clever lighting can turn an ugly duckling into a swan.’

Phil Spencer, presenter of television show Location, Location, Location, agrees that the kitchen is an excellent place to add value, estimating that a new kitchen can add up to 4,6 per cent to the house’s overall value.

He elaborates, ‘If you are only going to improve one room, make it the kitchen. This has now become the showpiece area of the home – we don’t just cook in it, we live and entertain there too.’

Trevor emphasises that buyers are looking for best value for money and a design scheme that won’t require a complete overhaul in the near future. ‘Updating your kitchen design with Caesarstone countertops and splashbacks provides an exquisite, timeless finish that works in virtually any design style – whether traditional or modern – and it comes with a lifetime warranty.’

COUNTER INTELLIGENCE

VISIT CAESARSTONE.CO.ZA FOR MORE DESIGN INSPIRATION

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A LENS

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TEXT Gigi Lafontaine PHOTOGRAPHS Supplied

FRESH APPROACHES PUNCTUATE THE PHOTOGRAPHIC LANDSCAPE WITH FANCIFUL MAXED-OUT VERSIONS OF EVERYDAY LIFELIFE

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THE SOCIOPOLITICAL EDGE CUTS DEEP

IN MODISAKENG’S WORK, BUT

AS A SUBTEXT THAT INFORMS

HIS MINIMALIST, HEWN-DOWN

ICONOGRAPHY

n both the literary and visual arts, South Africa has a strong tradition of social documentary, with gritty realism and political reportage eclipsing aesthetic experimentation or ‘art for art’s sake’ at every turn. Photography is no exception and, in the current heated political climate, documentary photography is a mode of truth-telling that’s both crucial and ascendant. Yet some fresh styles and approaches are starting to slip between the cracks. This is Mzansi less sure of its own social and gender parameters trying on something different to see how it fits.

One artist in particular took last year’s FNB Joburg Art Fair by storm with his intense, striking auto-portraits, and it was no surprise when, a few months later, he was announced a Standard Bank Young Artist for 2016. Mohau Modisakeng is a multidisciplinary artist who has ventured into film, installation, performance and

photography to highlight the position of the black body within the violent context of South Africa’s past and present. He grew up in Soweto during the era of hostel violence on the mines, and uses his body as a kind of ‘historical barometer’ to draw attention to the plight and politics of black migrant labourers. The sociopolitical edge cuts deep in Modisakeng’s work, but as a subtext that informs his minimalist, hewn-down iconography and staged portraiture, which has an intense mythical quality about it.

Similarly striking, although less politically engaged and more lyrical in mood, is Justin Dingwall’s Albus series, which also drew a lot of attention at the most recent FNB Joburg Art Fair. Dingwall began this project with ethereal portraits of Thando Hopa, a legal prosecutor who uses her visibility to address the negative perceptions surrounding albinism, and went on to photograph Sanele Xaba, a young model with



OPENING IMAGE Mohau Modisakeng, Untitled (Metamorphosis 11), 2015, inkjet print on Epson Ultrasmooth, 120x120cm, edition of five plus two artist’s proofs (whatiftheworld) FROM FAR LEFT Mohau Modisakeng, Untitled, 2015, inkjet print on Epson Ultrasmooth, 150x112,46cm, edition of five plus two artist’s proofs (whatiftheworld); Justin Dingwall, Mob II, 2015, photographic Giclée print on 100% cotton fine-art paper, variable dimensions, edition of 10, and The Vulnerables (diptych), 2013, photographic Giclée print on 100% cotton fine-art paper, 66,5x89,5cm, edition of 10 (Lizamore & Associates)

albinism. His stated aim is to get beyond the negativity and taboo associated with albinism, by establishing a sense of intimacy and vulnerability/courage and ‘beauty in difference’ through his images.

Like Dingwall, Paul Samuels works across visual art and fashion, working on his own projects in between shooting commercial campaigns. The images he shot of model Hauwa Dauda for South African designer Marianne Fassler’s RESORT15 Collection are dizzyingly lush in their high-contrast combo of maximalist prints and brightly coloured backdrops. Samuels exports some of the techniques he applies to fashion shoots to his documentary projects, like his portraits of former 31 Battalion soldiers, to introduce a slightly surreal, hyperreal aspect.

Another fresh presence at last year’s FNB Joburg Fair was 19-year-old Tony ‘Zipho’ Gum, who won audiences over with her identity-swapping African studio-style

portraits and her pop-forward Coca-Cola experiments, in which the beverage appears as a ubiquitous prop no matter what persona or headdress Gum chooses to adopt. ‘I’m inspired by [director] Wes Anderson’s choice of colour, specifically in The Grand Budapest Hotel,’ Gum told Vogue magazine, who took a quick interest in her shape-shifting pop-diva self-portraits. ‘My favourite movie moment comes from [Edward Scissorhands in] Tim Burton’s suburbia scene, when Edward Scissorhands and his mother drive through the highly stylised neighbourhood. In both of these films, these incredible directors have made my love for pastel grow fonder. Rockers is [also] brilliant; it’s a 1978 Jamaican film by Theodoros Bafaloukos that I discovered on Instagram.’

Whether they associate with a more fashion-centric, pop-cultural ethos or the weightier conceptual territory occupied by art-school graduates, the younger



THE YOUNGER GENERATION OF PHOTOGRAPHERS SEEM TO EMPLOY THE KEY TACTIC OF CULTURAL IDENTITY SWAPPING



generation of photographers seems to employ the key tactic of cultural identity-swapping and the adoption of staged fictive personae. Take the work of 2014 Standard Bank Young Artists Hasan and Husain Essop, whose work has been exhibited at the Victoria and Albert Museum in London, the Dakar Biennale in Senegal and the Helsinki Art Museum, and which is currently on the exhibition ‘Disguise: Masks and Global African Art’ at the Seattle Art Museum. ‘Inspired by Hollywood’s visual language and tactics, we create our own narratives to highlight a multicultural clash between religion and popular cultures,’ say the twin brothers. Their work is in great demand internationally has been bought by none other than Elton John.

Also in global ascendancy for his signature black-and-white photographs is Musa N Nxumalo, whose new series Siyakubona Penelope (‘We see you, Penelope’) will be launched by SMAC gallery at the 2016 Cape Town Art Fair. Thematically, the upcoming

series references strong and spirited black South African female characters, drawing inspiration from iconic books such as The Cry Of Winnie Mandela (2004) by Njabulo Ndebele, Living Loving and Lying Awake At Night (1994) by Sindiwe Magona and, in his own words, ‘various other characters that are not necessarily in books, but are very familiar and present in current township settings’.

Nxumalo will stage domestic scenes with a touch of 1940s and ’50s glam, focusing on his hometown of Soweto, to create a historical narrative into which he will introduce his protagonist, Penelope – a representation of a woman familiar both in Nxumalo’s family and township society.

‘We’re currently … selecting photographs from [Nxumalo’s projects] Alternative Kidz and In/Glorious for the upcoming exhibition ‘‘New Photography from Africa’’,’ says SMAC gallery’s Marelize van Zyl.

ABOVE FROM LEFT Tony (‘Zipho’) Gum, uTwiggy II, C-type print on Fuji crystal archival print, Dibond mounted, 50x39cm, edition of 10, and Indian Lady, C-type print on Fuji crystal archival print, Diasec mounted, 80x70cm, edition of 10 (Christopher Moller Gallery) OPPOSITE Paul Samuels, Matoka Matteus – 31 Battalion series of portraits (Lamppost Productions)




A SPIRIT OF HOSPITALITYThe shift towards more fictive, hypothetical modes in photographic practice has no doubt been influenced by an opening out of South Africa’s domestic art scene to embrace new curatorial and creative forces from across the continent and farther afield. For a long time, the traffic remained outward bound, but in more recent years a welcome spirit of hospitality has begun to infuse South Africa’s staunch nationalism, with local galleries now representing artists from other cultures and countries.

Internationally acclaimed Zimbabwe-born artist Kudzanai Chiurai brings a dose of florid high-octane social satire to the Goodman Gallery stable, while Whatiftheworld gallery in Cape Town has just staged a solo exhibition of spectacularly serene yet dandyish self-portraits by Nigerian artist Lakin Ogunbanwo. Ogunbanwo, 27, is a self-taught artist who practised as a lawyer before getting into photography in Lagos. He was introduced to the gallery by Roelof van Wyk, who was behind the Johannesburg Pavilion at last year’s Venice Biennale.

Meanwhile, the team at SMAC first met Kenyan artist Cyrus Kabiru in mid-2014 through artist Ed Young, whom they also represent. The two met on set in Nairobi while shooting the Guinness Black advert. ‘At that stage … African contemporary production in all the creative fields was on the rise and there was a lot of crossover between the various fields – art, fashion, music, film, etc – and the industry at large, especially in art, took notice,’ says Marelize van Zyl. ‘Cyrus Kabiru was the one young artist, in our opinion, whose work and approach to “making” – combined with his positive outlook towards the future – exemplified this new movement.’ Kabiru is currently showing as part of ‘Unorthodox’, curated by Jens Hoffman, at the Jewish Museum in New York, on until the end of March 2016.

After many years of entrenched separateness, the doors finally seem to be opening for artists from other African countries – even in Cape Town, which is often fairly critiqued for its racism and insularity. The recent exhibition ‘Fantastic’, curated by Nomusa Makhubu and Nkule Mabaso, is one recent example of a new spirit of transnational artistic exchange bringing fresh artistic modes and approaches to the Mother City. The exhibition was part of an interdisciplinary colloquium hosted by Michaelis Galleries and the Centre for Curating the Archive that sought to reignite critical thought about the fantastic in contemporary art and visual culture. In addition to South African artists, it featured female artists from Nigeria, Zimbabwe, Zambia, Ethiopia and Botswana – all depicting collisions between the ‘real world’ and the ‘spiritual world’ in visually exciting new ways.

Although documentary realism remains the dominant tenor in South African photography, contemporary practice does seem to be opening up to more fictive ways of representing ‘the real’. For viewers who appreciate the power of fantasy, visual shapeshifting and formal experimentation, there’s no doubting the fact that it’s a snap, crackle and pop moment for lens culture in South Africa.

AFTER MANY YEARS OF ENTRENCHED SEPARATENESS, THE DOORS FINALLY SEEM TO BE OPENING FOR ARTISTS FROM OTHER AFRICAN COUNTRIES

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Kudzanai Chiurai, Revelations VIII, ultrachrome ink on Innova photo fibre, 2011 (Goodman Gallery)

L U X U R Y T R E N DL U X U R Y T R E N D



CLOCKWISE FROM TOP Hasan and Husain Essop, Silat Mulut, lightjet C-print on archival paper, 2014 (Goodman Gallery); Musa N Nxumalo, Lindiwe ‘Landypanda’ Sangweni (2) – In/Glorious series, 2015, C-print, 59,5x87cm, edition of five plus two artist’s proofs (SMAC); Cyrus Kabiru, Kubwa Macho Nne Tom and Jerry, 2015, pigment ink on HP premium satin photographic paper, 150x150cm, edition of five plus two artist’s proofs (SMAC)


GALLERY GUIDE Christopher Moller Gallery 021 422 1599; christophermollerart.co.za Goodman Gallery 011 788 1113 (JHB), 021 462 7573 (CT); goodman-

gallery.com Lizamore & Associates 011 880 8802; lizamore.co.za Paul Samuels via Lamppost Productions 011 788 2609; lampost.co.za SMAC 021 422 5100 (CT), 021 887 3607 (Stellenbosch); smacgallery.

com Whatiftheworld 021 447 2376; whatiftheworld.com

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GROWING UPAddressing the issue of how to accommodate a growing population of over-65s in Singapore, Spark Architects’ innovative Home Farm project has been winning accolades since its launch in 2014. The most recent was the Experimental – Future Projects category at the 2015 World Architecture Festival in Singapore. The Home Farm is a residential development focused on assisted living for the elderly. Its vertical aquaponic farming and rooftop soil planting have been applied to high-density, flexible housing designed to cater to the needs and preferences of seniors. Residents may combat the financial stress that’s often faced post-retirement by working part-time at the farm under the direction of a professional implementation team. And the Home Farm addresses another of Singapore’s pressing issues: that of food security, as 90 per cent of the country’s food is imported. sparkarchitects.com


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M A R K E T P L A C E

GO ONLINEFor more on these stories,

visit our website at

www.realestatemagazine.co.za.

AREA SPOTLIGHT> ATHOLLThis is a current snapshot of the Atholl residential property market.

DEMAND INDICATOR METRICSn Sale Listings: Properties listed for sale in Atholl comprise approximately 5% of the total sale listings in the Sandton and Bryanston (North) area. Approximately 4% of the interest (views) in properties for sale in the Sandton and Bryanston (North) area is attributable to properties listed for sale in Atholl.n Rental Listings: Properties listed for rent in Atholl comprise approximately 5% of the total rental listings in the Sandton and Bryanston (North) area.Approximately 4% of the interest (views) in properties for rent in the Sandton and Bryanston (North) area is attributable to properties listed for rent in Atholl.

PROPERTY TYPESn Sale Listings: The types of residential properties available for sale in Atholl can be broken down into 48% houses, 30% apartments and 22% complexes. A typical property for sale in Atholl is a four-bedroom house, currently with a median asking price of R8m.n Rental Listings: The types of residential property available for rent in Atholl can be divided as follows: 60% apartments, 26% complexes and 14% houses. A typical property for rent in Atholl is a two-bedroom apartment, currently with a monthly median asking price of R16 000.

MEDIAN ASKING PRICESn Sale Listings: The median asking prices for residential property in Atholl are R6,02m for a house, R4m for a complex and R3,61m for an apartment. n Rental Listings: The median rental prices for residential property in Atholl are R40 360 per month for a house, R18 900 per month for a complex and R16 280 for an apartment.

Total value of residential properties listed on Private Property in Atholl aren Sales: R912 979 000n Rental: R5 804 000

BOND REPAYMENT CALCULATION The monthly bond repayment to purchase a typical property in Atholl, namely a four-bedroom house with the median asking price of R8m, is R75 881 per month over 20 years at prime of 9.75% with no deposit, while the monthly median rental asking price for a four-bedroom house in Atholl is R39 500 per month.

These findings represent a current snapshot of properties available on the Private Property portal. The house type ‘complex’ consists of townhouses, clusters, duplexes and simplexes.

REDEFINING THE FORESHORE The transformation of the former Standard Bank building in Cape Town’s central business district is part of a bigger development plan that will change the face of the Foreshore into a hub of commercial activity by 2020. The former bank building’s R533-million upgrade was undertaken by Redefine Properties after five years of planning. The green build, called The Towers and started in 2013, includes two new glass towers, a landscaped public atrium and a 13-floor parking area. Some of the green features are a system on the external facade that will reduce cooling demand by about 30 per cent, and energy-efficient lighting in public spaces. Tenants at The Towers include Redefine Properties Cape Town, Standard Bank of South Africa, Fairbridges Wertheim Becker Attorneys, three embassies and a flagship Food Lovers’ Eatery. redefine.co.za

SIX-POINTED STAR FOR RWANDA WSP | Parsons Brinckerhoff Africa, a multidisciplinary engineering consultancy, has achieved a six-star green rating for its Nobelia Office Tower in Kigali, Rwanda. The 19-storey building, of which 16 floors will be dedicated to office space, is the first six-star-rated green building not only in Rwanda, but on the entire continent outside of South Africa. The Green Building Council in Rwanda is still young, so WSP’s Green by Design team developed a local context report to establish the fundamentals for the country’s Green Star system and set the appropriate climatic and environmental guidelines unique to Rwanda. This groundwork by the team, which has a reputation as sustainability consultants throughout the continent, will be the standard by which all building projects in the country will be rated. wspgroup.com


private property

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Oev.,��'I , .

A home for everyone www. private property. co. za


FAB PREFABSAt Tokyo Design Week late last year, Japanese retailer Muji launched three prototypes of prefabricated low-cost houses known as Muji Huts. Designed by heavyweights Jasper Morrison, Konstantin Grcic and Naoto Fukasawa, the inspiration for each prototype was kyosho jutaku, the Japanese style of microhome. Each designer used a different base material to bring his interpretation to life: Morrison used cork, Grcic used aluminium and Fukasawa used wood. The Muji Hut project is based on affordable, low-consumption, weekend cabins that come fitted with the basics of modern living. muji.com

AFFORDABLE MICROHOMES FITTED WITH ALL THE BASICS OF MODERN LIVING

HAMPTONS UK/SEEFFThe Seeff property group has announced its partnership with Hamptons International as its exclusive southern African partner. Hamptons International is a member of Countrywide, the largest real-estate group in the UK. ‘It was a natural progression for us to expand our reach,’ says Samuel Seeff, chairman of the Seeff property group. This exclusive partnership enables Seeff to market local properties internationally by leveraging access to foreign markets for local sellers. The partnership also gives South African buyers access to some 150 000 property listings worldwide. hamptons.co.uk



GO ONLINEFor more on these stories,

visit our website at

www.realestatemagazine.co.za.

A TRUE DEPICTIONIt’s refreshing when the marketing campaign of a residential estate reflects the excellence of that estate. This was the case at the Africa and Arabia Property Awards Summit 2015-2016 (part of the International Property Awards) held in Dubai in November last year, when South Africa’s Sitari Country Estate near Somerset West and its marketing specialist agency Adlab each walked away with honours. Adlab Advertising (Pty) Ltd won ‘5-Star Best Developer Website South Africa’ for the website it created for Sitari Country Estate, while the development itself won the ‘Highly Commended Residential Development South Africa’ award. Others worthy of mention were Waterfall Estates, for ‘Best Mixed-Use Development in Africa’; Pangia in Seychelles, for ‘Best Residential Development in Africa’; and the Feenstra Group’s Hatfield Studios development for ‘Best Residential High-Rise Development in Africa’. propertyawards.net

REFINED LIVINGThe much-anticipated launch of Umhlanga’s Ridgeside precinct’s first residential development happens on 19 March. The Refinery consists of 180 units divided into studio, one-, two- and three-bedroom apartments, and four-bedroom penthouses. The block is part of a secure gated estate that overlooks Umhlanga Village, with views to the Indian Ocean and easy access to Gateway Theatre of Shopping. Register online to receive an invitation to the launch. refineryliving.co.za

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D R E A M H O M E

I WA N T T O L I V E I N …

Every window of this gracious six-bedroom waterfront villa, affectionately known as Pink Chimneys, offers a view of Bermuda’s famous Castle Harbour. The galleried hallway leads to a formal living room, dining room and large kitchen with fireplace and breakfast area. In the eastern wing is a spacious master en suite with a vestibule and dressing area, a media room and a library-cum-office. The western wing houses a guest suite as well as a self-contained staff apartment, an extensive wine cellar, a laundry room, a gym with its own bathroom, and a garage. A separate-entrance guest suite occupies the property’s lower level. The house is on the market for US$14,95 million with Sotheby’s International Realty (property ID: 7FD9W3).

BERMUDA USEFUL CONTACTSn British High Commission in Pretoria (also responsible for Bermuda), gov.uk/government/world/organisations/british-high-commission-pretorian Bermuda Real Estate and Investment Solutions bermudarealestateonline.comn Guide to Bermuda (includes buying and cost-of-living guide), bermuda-online.org n Sotheby’s International Realty sothebysrealty.com

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FOR MORE INFO VISIT LUXURYHOMESOFTHEWORLD.COM

A H A N D - P I C K E D C O L L E C T I O N O F M A G N I F I C E N T P R O P E R T I E S

Welcome to Luxury Homes of the World and join us on a journey through some of the most beautiful homes for sale. Selling your home in South Africa or abroad? We invite you to showcase yours along with branding and a personalised message to REAL ESTATE magazine’s property investors at the top of each page. For specs and bookings, contact Michele Jones at The Creative Group on [email protected]

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L H552

ZWAANSWYK, CAPE TOWN, WESTERN CAPE, SOUTH AFRICA • R48-MILLION

A symphony of tranquillity, uninterrupted views and Cape Dutch splendour. �is magni�cent north-facing estate consists of a four-acre subdivisible plot, o�ering unlimited potential for the prospective buyer. It currently comprises a luxurious Wellness Spa – with indoor and outdoor pools, sauna, steam room, tennis court, gym and �ve treatment rooms. A classic Cape Dutch homestead, boasting beautiful reception rooms, breakfast and cocktail patios, 14 well-appointed bedroom suites, as well as a conference facility, caretaker’s cottage and parking aplenty.

Bedrooms 14 Bathrooms 16 Parking bays 18

Sally Gracie +27 (0)83 [email protected] Mark +27(0)83 778 [email protected] web ref: 13243695

Exceptional homes. Powerful network. Finding yourhome is a personal process of discovery. The accomplished global network of LuxuryPortfolio.com is ready to assist in the journey. To explore the world’s finest properties, enter the web reference for details.

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L H553

SANDHURST, SANDTON, GAUTENG, SOUTH AFRICA • R60-MILLION EXCL. VAT

�is sophisticated home epitomises the luxuriously classical yet contemporary style. Situated on 6 300m2 of prime real estate and within easy walking distance of Sandton’s CBD, its many features include a gym, hotel-type spa, cinema, private library, bar, cigar bar, entertainment summerhouse with pizza oven, billiards room and �oodlit tennis court. �e property also boasts an alarm system, intercom and music system, separate guest quarters, airconditioning and under�oor heating.

Bedrooms 5 Bathrooms 5 Garages 6 Living areas 6

Rory O’Hagan +27 (0)83 328 [email protected] web ref: 13286091

Exceptional homes. Powerful network. Finding yourhome is a personal process of discovery. The accomplished global network of LuxuryPortfolio.com is ready to assist in the journey. To explore the world’s finest properties, enter the web reference for details.

BRYANSTON, JOHANNESBURG, GAUTENG, SOUTH AFRICA • R35-MILLION

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L H554

Built on a grand scale for lavish entertaining, this gracious Georgian home o�ers glorious views, luxurious spaces and the �nest �nishes. Reception rooms lead to an enormous enclosed patio, serviced from a stunning dine-in kitchen, which opens to a kitchen garden. Features include double bedroom suites, a �tted study, double domestic accommodation, a cellar, home movie theatre and games room. A generator, borehole and heated swimming pool are among the many extras on o�er.

Bedrooms 5 Bathrooms 5 Garages 4 Living Areas 4

Manuela Coelho +27 (0)82 552 [email protected] Fernandes Kruger +27 (0)82 771 [email protected] web ref: 1443155

Operating in 60 countries with 760 offices and 16 570 sales associates, we are proud to say that Lew Geffen Sotheby’s International Realty is the biggest Sotheby’s International Realty organisation outside the US.

BRYANSTON, JOHANNESBURG, GAUTENG, SOUTH AFRICA • R33-MILLION

Be transported to a colonial way of life in this sumptuous triple-storey residence. Its extensive accommodation includes a charming double-storey garden guest cottage, gracious formal and informal reception rooms, a high quality chef ’s kitchen, games room, cellar, gym, cocktail areas, wraparound verandahs, heated pool, boma, tennis court and enchanting treed garden with borehole. Stately and impressive, this is an exclusive residence for the executive.

Bedrooms 5 Bathrooms 5 Garages 3 Living Areas 4

Manuela Coelho +27 (0)82 552 [email protected] Fernandes Kruger +27 (0)82 771 [email protected] web ref: 1519247

Operating in 60 countries with 760 offices and 16 570 sales associates, we are proud to say that Lew Geffen Sotheby’s International Realty is the biggest Sotheby’s International Realty organisation outside the US.

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L H555

DAINFERN, GAUTENG, SOUTH AFRICA • R16,5-MILLION

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L H556

A modern home for easy open-plan entertaining. Enjoying the best position on the golf course and river on Dainfern estate, it’s been recently rebuilt and renovated to exacting standards. �e reception rooms �ow seamlessly outdoors through stack-back doors to an extensive outdoor living area overlooking a magni�cent rim-�ow pool and large indigenous garden. Full security automation, sta� accommodation and triple garaging complete this spacious family home.


Sue Ralph +27 (0)82 892 [email protected] Gilbert +27 (0)83 251 [email protected] web ref: FW1241089

The Pam Golding Property Group is a luxury home specialist. Using a partnershipwith London-listed Savills plc and drawing on more than 300 specialist officesaround the globe, The Group is both coveted and highly regarded.

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L H557

DUNKELD, JOHANNESBURG, GAUTENG, SOUTH AFRICA • R15-MILLION

Contemporary living de�ned in an exceptional cluster home. A dramatic double-volume entrance reveals open-plan reception areas, which lead to a large covered patio, entertainment deck and pool, all set on 1400m² with mature trees and lush surrounds. Boasting en-suite bedrooms (including a deluxe main suite with private balcony), a wine room, a gourmet social kitchen with Miele integrated appliances and a sta� suite, this is notto be missed.


Helen Tomazos +27 (0)83 616 [email protected] Ennik +27 (0)83 273 [email protected] web ref: EN01-0894

Ennik Estates/Christie’s, the exclusive Christie’s affiliate, combines the prestige of this international luxury brand with outstanding local knowledge. As a boutique agency, Ennik Estates/Christie’s takes pride in offering a bespoke marketing strategy that achieves excellent results.

MORNINGSIDE, SANDTON, GAUTENG, SOUTH AFRICA • POA

This exquisitely finished family home enjoys an incredible position in one of the most sought-after streets in Morningside. The downstairs area includes a bedroom suite plus a lounge, dining room, family room, kitchen, scullery and laundry. The fully enclosed patio can open up completely. Upstairs you’ll find a study and additional bedrooms.


Avrille Grainger +27 (0)84 725 [email protected] web ref: ADHS-2631

For more than 20 years, Adrienne Hersch Properties has been fulfilling the real estate needs of sellers and buyers in Gauteng with dedication, passion and integrity. Our business was built on the foundations of traditional family values which include loyalty, trust, dedication and understanding. Adrienne Hersch Properties… welcome home.

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L H558

SANDHURST, SANDTON, GAUTENG, SOUTH AFRICA • R31,5-MILLION

Position, position, position. �is family home is beautifully situated on ±4 166m2 in a guarded and boomed cul-de-sac, in one of Sandhurst’s �nest roads. Fantastic accommodation includes spacious bedrooms en suite and elegant reception rooms �owing out onto a huge covered patio with pool and court. An open-plan gourmet kitchen and plenty of guest parking ensure that this home meets all your needs for luxurious living and entertaining.


Stephen Brick +27 (0)82 551 [email protected] Obel +27 (0)82 552 [email protected] web ref: 113530

Whether you are looking to buy or are considering selling in the greater northern suburbs, you really should be talking to us — Vered Estates, a specialist agency catering to the best of Johannesburg’s northern suburbs.

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L H538

BANTRY BAY, CAPE TOWN, WESTERN CAPE, SOUTH AFRICA • R16,995-MILLION

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L H559

�is seldom seen spacious apartment with sea views is located in a small, well-maintained complex. Open-plan living spaces lead onto a large terrace. Additional features include a well-appointed kitchen, a guest cloakroom, direct li� access, sta� accommodation, a laundry room, storeroom and generator, as well as a communal pool and gym facility. A wonderful investment opportunity.


Gail Gavrill +27 (0)82 777 [email protected] web ref: ZA120281

Knight Frank, the world’s largest privately owned global property agency, has more than 100 years of experience in selling and renting residential properties. We assist clients in every aspect of buying, investing in and selling property.

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L H480

HYDE PARK, SANDTON, GAUTENG, SOUTH AFRICA • R32-MILLION

A state-of-the-art home on ±2 000m² in a sought-a�er, Broadlands secure estate. Highlights include a large, double-volume entrance, marble staircase, formal lounge/dining room, open-plan family room with bar and wine room, gourmet kitchen with scullery, pantry and cold room, and a separate, two-bedroom self-contained �atlet. A spacious patio with stacking doors leads to the pool and landscaped garden. Among the many conveniences are a li� and auto security shutters throughout.


Dennis Spencer +27 (0)82 498 6321 Wendy Mortimer +27 (0)83 652 8799www.remax-masters.co.za

The RE/MAX Masters team have been prominent in the residential letting and sales field for the past 15 years in your area, including Sandton,Randburg, Roodepoort and Johannesburg. We take pride in exceptional high service delivery

WESTCLIFF, JOHANESSBURG, GAUTENG, SOUTH AFRICA • R25-MILLION

Catering to the discerning luxury market.

BRYANSTON, JOHANNESBURG, GAUTENG, SOUTH AFRICA • R17,5-MILLION

�is magni�cent home, positioned at the crest of the ridge on 7500m², is a treasure trove of eclectic original features and �replaces in the classic English-country style. With reception rooms of grand proportions and plenty of accommodation, this property invites special family celebrations or sophisticated entertaining. Interleading, double-volume spaces spill out to the covered verandahs, wide lawns and terraces. Includes a sta� cottage and secure guest parking.


Dee Scholtz +27 (0)83 458 [email protected] Grant Pitter +27 (0)83 308 [email protected] web ref: 13268457

Set deep within an exclusive estate on Mount Street, and an acre of landscaped gardens, with a tennis court and feature pool, this abode o�ers excellent �nishes and �ow. From the porte-cochere to the volumed entrance, spacious receptions spill to the entertainers’ patio. �e gourmet dine-in kitchen, double-bedroom suites, a cladded study and pyjama lounge welcome home the executive, and the cinema, billiards room and cellar guarantee the good times. Extras include home automation, UPS, borehole and spa.


Regan Harris +27 (0)82 320 [email protected] web ref: 13275328

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L H560

L H561

Coming soon to a home near you

Building the foundation for Future Generations

C O M P L E T E W I T H P R I VAT E R O O F TO P P O O L A N D E N T E R TA I N M E N T D E C K F O R T H E U LT I M AT E C A P E TOW N L I F E S T Y L E

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F R O M T H E Private Collection

Bianca: 072 224 2777 | Rilee: 072 350 8832 | E: [email protected]

69 FAR & AWAYThe definitive guide to investing

abroad for residency or citizenship

90 NO GUARANTEES When a property is a good

investment – and when it isn’t

94 REAL ESTATEINVESTMENT TRUSTS

All you need to know about REITs

SOUTH AFRICA’S SUPER-STARS

PROPERTY

AND DEVELOPMENTEDITION ONE 2016

INVESTMENTLooking forward: how

developers are redefining mixed-use self-contained estates to meet investors’

definitions of luxury

96 CROWDFUNDINGThe next-gen property-development

tool and investment platform

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PROPERTY INVESTMENT PROGRAMMESPROPERTY INVESTMENT PROGRAMMES

PROPERTY INVESTMENT | FEBRUARY 2016 69

PROPERTY INVESTMENT PROGRAMMES

FAR & AWAY

Looking to diversify your investment portfolio? We look at ten countries where international property acquisition may qualify you for the pick of residency permits

W ith a growing number of countries vying to attract international property investors, the time has never been better to do a spot of ‘passport shopping’.

But, warns James Bowling, international CEO and founder of Monarch & Co, maintaining an investment in

a foreign country isn’t the only requirement for residency or citizenship. ‘Investors can lose their residence or citizenship status if they don’t meet other requirements, such as a minimum stay,’ he says, noting, for example, that the United Kingdom requires investors to make the UK their primary residence by spending at least 50 per cent of their time there, while Malta residence holders can’t spend more than 183 days a year in another jurisdiction. And ‘Portugal requires you to visit for seven days in your fi rst year and 14 days every two years [thereafter] in your path to gaining citizenship.’

When it comes to the ‘perks’, such as free education and healthcare, the rules are different for citizens and residents. Residency holders are entitled to receive free state education only in the country of residency, and should always be covered by comprehensive international health insurance, as they don’t receive free medical treatment.

Citizens, on the other hand, ‘have full access to free state education and healthcare facilities in their country of citizenship, should it be available in that country,’ says Bowling. ‘A citizen from an EU country and registered in the national healthcare system can attend any educational or healthcare facility in any other EU country.’

In Portugal, however, you need to be a citizen contributing to social security as a taxpayer living and working in Portugal to qualify for free healthcare and education, says Chris Immelman, MD of Pam Golding Properties International and Projects division, and adds that residency doesn’t provide holders with free healthcare or education, though they have access to it.

A useful caveat to keep in mind is that some countries, such as China, don’t acknowledge dual citizenship. Investors, therefore, would have to sacrifi ce their current citizenship in return for the new one. ‘South Africa recognises dual citizenship, so our investors don’t have to worry,’ says Bowling.

AWAY

R E S I D E N C Y

&C I T I Z E N S H I P

Text David A Steynberg Photographs iStock

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70 PROPERTY INVESTMENT | FEBRUARY 2016

WHAT’S THE MINIMUM AMOUNT I NEED TO INVEST?Purchase a designated property for a minimum value of $400 000. However, there’s a range of significant additional fees payable for background checks and application processing. There’s no requirement to reside in this Caribbean twin-island paradise and business haven. Citizenship via investment takes three months.

ARE THERE GOOD SCHOOLS?Education in Saint Kitts and Nevis is compulsory between the ages of five and 16. In St Kitts there’s a range of primary and secondary schools, including Estridge Primary School, Saint Anne Sandy Point Primary School and Beach Allen Primary School, as well as Cayon High School, Washington Archibald High School and Verchilds High School.

In Nevis, the primary schools available are Nevis Academy, Charlestown Primary School and Ivor Walters Primary School, while Charlestown Secondary School, Gingerland Secondary School and the private Nevis International Secondary School make up the

high-school complement. Higher education is available at Clarence Fitzroy Bryant College, International University of the Health Sciences, Ross University School of Veterinary Medicine and the International University for Graduate Studies.

HOW DO I GET FINANCING?Residency and citizenship by investment programmes don’t offer financing options and the investment amount must be paid up front and in full.

HOW DOES INCOME TAX WORK?

Zero per cent personal and corporate tax rates if not doing business in Saint Kitts and Nevis. If trading there, then 35 per cent

corporate tax and normal country personal tax rates.

There’s no worldwide taxation if not a tax resident.

DO I LOSE MY CITIZENSHIP WHEN I SELL?No, as long the property investment is held for a minimum of five years.

USEFUL CONTACTS sable-group.commonarchandco.comstkittstourism.knbest-citizenships.com

01 ST KITTS & NEVIS

SELLING POINTIf you’re not doing

business in Saint Kitts and Nevis, you pay no personal or corporate

taxes

(CITIZENSHIP)

WHAT’S THE MINIMUM AMOUNT I NEED TO INVEST?Invest a minimum of $350 000 in a qualifying property development or business.

ARE THERE GOOD SCHOOLS?Education in Grenada is free and compulsory between the ages of six and 14. There are numerous independent schools in Grenada, most located in or around the capital of St George’s. Primary and preprimary schools include Grenada Montessori and Preparatory School, L’Anse Aux Epines and First Choice Junior School, Sunny Side Private School, Limes Mennonites, Kay-Dees School, Grenada Junior Academy, Alpha Primary School, and 3 Rs Junior School.

St George’s University boasts 6 000 students from over 140 countries and offers faculties of medicine and veterinary science that are considered to be of the highest standard in the Americas. As a whole, the country has a very high

literacy rate and a well-educated population.

The University of the West Indies School of Continuing

Studies is also available.

HOW DO I GET FINANCING?Residency and citizenship by investment programmes don’t offer financing options; the investment amount must be paid in full up front.

HOW DOES INCOME TAX WORK?Only taxed on income generated in Grenada and/or untaxed income remitted into Grenada. Citizens pay no tax on worldwide income.

DO I LOSE MY CITIZENSHIP WHEN I SELL?No. You may sell your investment and keep your citizenship status and passport, provided you hold the investment for the required four years.

USEFUL CONTACTS monarchandco.compuregrenada.comgov.gd

02 GRENADA(CITIZENSHIP)

SELLING POINTThis ‘Spice Island’ has

a high standard of living and a low crime rate.

Education is free up to 14 years of age

Many single family homes cost significantly more than the minimum $400 000 investment, and larger homes can easily cost in the millions of dollars. However, this does lend an exclusive cachet to your overseas investment.

TIP




03 SEYCHELLES(RESIDENCY)

WHAT’S THE MINIMUM AMOUNT I NEED TO INVEST?Residency is limited to the purchase of property in Pangia Beach or the Eden Island marina development, where prices start at $450 000. Other costs include a professional fee of $1 000, a processing fee of SCR1 000 (converted into US dollars) and a permit application fee of SCR150 000.

ARE THERE GOOD SCHOOLS?Education is compulsory up to the age of 16, and free through secondary school up to age 18. Children are first taught to read and write in Creole; in Grade 3, English is used as a teaching language in certain subjects, while French is introduced in Grade 6.

There are two excellent schools in Victoria, Mahé, a five-minute drive from Eden Island. The fully fledged International School Seychelles follows the UK curriculum, while Ecole Française des Seychelles, a French school, is available for French-speaking investors.

The University of Seychelles is situated a little farther away in Anse Royale, Mahé.

HOW DO I GET FINANCING?Mortgage finance is available through Barclays Bank, Nouvobanq and Mauritius Commercial Bank (MCB).

HOW DOES INCOME TAX WORK?You’ll only be taxed on income or remuneration generated within the Seychelles (for example, income tax and companies tax). There will be no further taxes levied.

DO I LOSE MY RESIDENCY WHEN I SELL?Yes. Residency is tied to ownership of the property, so residency would terminate on the sale of the property.

USEFUL CONTACTS seychelles.travel (see local-services)mfa.gov.scgailgavrill.compangiabeach.com

edenisland.scfrancis-changsam.com

‘As a South African investor, I would look for a new PDS (Property Development Scheme) project, because your tax rates (5% transfer tax and 5% govenment tax) will potentially be lower. The same investment criteria apply.’

Rob Hudson, MD, Hayes, Matkovich Developments

SELLING POINTMortgage finance is

available through various banks. You’re only taxed

on income generated within Seychelles

04 MAURITIUS(RESIDENCY & CITIZENSHIP)

WHAT’S THE MINIMUM AMOUNT I NEED TO INVEST?Permanent residency permits for purchasers (including spouse and dependants) are automantically linked to ownership of freehold property within an approved Integrated Resort Scheme (IRS) or a new Property Development Scheme (PDS)with a minimum investment value of $500 000. A residency permit also entitles the resident to apply for an occupation certificate, which allows the resident to start a business or to become an employee of a company in Mauritius. After living in Mauritius for five years, the purchaser may apply for a Mauritian passport (discretionary) in addition to their residency permit.

ARE THERE GOOD SCHOOLS?The education system in Mauritius is based largely on the British system, since Mauritius was a former British colony. The north of the island has a number of good private schools, including Northfields, the International Preparatory School and Lighthouse. West Coast Private School is also excellent. Universities include Middlesex University London – Mauritius Campus, the University of Technology and the Open University of Mauritius. Monash

has just secured a site for a new 5 000-student

campus.

HOW DO I GET FINANCING?Access to finance is by application

to the relevant banks. Typically, a loan of up to 50 per cent of the value of the property can be offered to foreign residents.

HOW DOES INCOME TAX WORK?Mauritius offers a favourable taxation environment, with key tax benefits including a 15 per cent corporate and individual income-tax rate, double taxation agreements with 36 countries, and no capital-gains and inheritance tax on properties purchased.

DO I LOSE MY RESIDENCY WHEN I SELL?Yes, unless you can prove that you are purchasing in another development. Residency status in Mauritius is linked to the purchase of a property for more than $500 000 within an existing IRS or RES (Real Estate Scheme) or new PDS.

USEFUL CONTACTSpamgolding.co.zamonarchandco.comvillasvalriche.commaurinet.comgovmu.org

SELLING POINTA residency permit

entitles holders to apply for an occupation

certificate, allowing them to start a

business

TIP




‘In the past 10 years, Florida has become a top investment destination, largely due to it being a key tourist and retirement region, both locally and globally.’ James Bowling, Founder, Monarch & Co International

CITIZENSHIP WHAT’S THE MINIMUM AMOUNT I NEED TO INVEST? A non-refundable contribution to the National Economic & Social Development Fund (¤650 000 for primary applicant, ¤25 000 for spouse and dependants under 18, ¤50 000 for dependants over 18), and purchase immovable property at a minimum value of ¤350 000, or rent for a minimum of ¤16 000 annually and invest ¤150 000 or more in stocks, bonds or debentures.

ARE THERE GOOD SCHOOLS? Standards are high at Maltese state schools, modelled on UK schools. After students pass their A-levels, they are free to start at the University of Malta (the oldest university in Europe; it offers undergraduate and postgraduate degrees and it’s entirely financed by the government) or the Malta College of Arts, Science and Technology.

HOW DO I GET FINANCING?Finance through the Bank of Malta can be arranged.

HOW DOES INCOME TAX WORK? A flat tax rate of 15 per cent on income declared in Malta from overseas, subject to a minimum tax of ¤15 000. Normal country tax, if a tax resident, on a sliding scale. No worldwide taxation if not a tax resident.

DO I LOSE MY CITIZENSHIP WHEN I SELL? No, provided you hold the invest-ment for the required five years.

RESIDENCY WHAT’S THE MINIMUM AMOUNT I NEED TO INVEST?Purchase immovable property for ¤270 000 (south of Malta or Gozo) or ¤320 000 (north of Malta); or rent a property annually for ¤12 000 (north Malta) or ¤10 000 (south of Malta). In addition, investors must contribute ¤30 000 and make a qualifying investment of ¤250 000 in a form

determined by Identity Malta.

ARE THERE GOOD SCHOOLS?Yes (see at left).

HOW DO I GET FINANCING?Finance through the Bank

of Malta can be arranged.

HOW DOES INCOME TAX WORK?Flat tax rate of 15 per cent on income declared in Malta from overseas, subject to a minimum tax of ¤15 000. Normal country tax, if a tax resident, on a sliding scale. No worldwide taxation if not a tax resident.

DO I LOSE MY RESIDENCY WHEN I SELL? Yes. The investment needs to be held indefinitely.

USEFUL CONTACTS monarchandco.com visitmalta.comgov.mt

05 MALTA(CITIZENSHIP & RESIDENCY)

RESIDENCY WHAT’S THE MINIMUM AMOUNT I NEED TO INVEST?$1,2 million in a new commercial enterprise or $800 000 in a ‘targeted commercial area’. In return, the US Citizenship and Immigration Services may grant conditional permanent residence (a Green Card) for two years to meet certain requirements. If achieved, conditions will be removed and the investor granted full permanent residence.

ARE THERE GOOD SCHOOLS?The United States offers high standards of state and private educational institutions from preprimary to secondary level. Among the top tertiary institutions are Harvard, MIT, Stanford, Princeton and Yale.

HOW DO I GET FINANCING?Residency by investment programmes don’t offer financing options, and the investment amount must be made in full up front.

HOW DOES INCOME TAX WORK?Once the Green Card has been issued and the investor decides to stay in the US, they’re required to register as a tax resident. There’s a dual tax treaty between South Africa and the US.

DO I LOSE MY RESIDENCY

WHEN I SELL?No but Green Card holders

must hold an investment in a regional centre for at least five years.

CITIZENSHIP You have to first get a Green Card (see at left).


HOW DO I GET FINANCING?Citizenship by investment programmes don’t offer financing options, and the investment amount must be made in full up front.

HOW DOES INCOME TAX WORK?There’s a dual tax treaty between South Africa and the US.

DO I LOSE MY CITIZENSHIP WHEN I SELL?Not if the investment is in a regional centre for a minimum of five years, which forms part of the EB-5 Immigrant Investor Programme.

USEFUL CONTACTSmonarchandco.comusa.govuscis.govdhs.govipglobal-ltd.comwatsonimmigrationlaw.com

06 USA

SELLING POINTThe USA has a mixed

economy that’s fuelled by abundant natural resources and high

productivity

(RESIDENCY & CITIZENSHIP)

SELLING POINTYou won’t lose your

citizenship if you sell; for residency, however, you need to hold on to

your investment

TIP




‘Our exclusive partnership with Seeff gives South African buyers access to some 150 000 property listings worldwide including prime areas such as the UK, Portugal, Cyprus, Malta and even the USA. There are about 400 000

South Africans living in London and a further 100 000-odd across the UK countryside. In 2014, in London alone, there were as many South African buyers as Americans purchasing UK properties and this is set to grow.’ Alasdair Hedley, Head of International for Hamptons

WHAT’S THE MINIMUM AMOUNT I NEED TO INVEST?¤1 million in a Portuguese company or into a Portuguese bank fixed deposit, or the acquisition of real estate with a minimum value of ¤500 000.

ARE THERE GOOD SCHOOLS?Portugal boasts the public research University of Lisbon as well as the University of Porto. It offers good international schools, including the English and American International schools in Estoril, and all Portuguese educational facilities supply students with a daily lunch.

HOW DO I GET FINANCING?Banks will lend up to 50 per cent to foreigners (naturally, applicants have to qualify). The Golden Visa Programme requires that the first ¤500 000 be paid in cash.

HOW DOES INCOME TAX WORK?Normal country tax if a tax resident,

on a sliding scale between 0 and

35 per cent. No worldwide taxation if

not a tax resident.If the holder of the Golden Visa

does not stay in Portugal for more than 183 consecutive days, he/she won’t be required to pay taxes for income generated outside Portugal.

Rental income and income arising from capital (such as interest and dividends) taxed at a rate of 28 per cent.

DO I LOSE MY CITIZENSHIP WHEN I SELL?No. You may sell your investment and keep your citizenship status and passport, provided you hold the investment for the required five years.

USEFUL CONTACTS goldenvisa-portugal.compamgolding.co.zasable-group.comvisitportugal.commonarchandco.com

07 PORTUGAL

SELLING POINT‘There’s a renaissance taking place in Lisbon,

which is being compared to Barcelona 20 years

ago,’ says Chris Immelman, PGP

WHAT’S THE MINIMUM AMOUNT I NEED TO INVEST?Invest £2 million or more in UK government bonds, share capital or loan capital in active and trading UK-registered companies (excluding real estate companies).

ARE THERE GOOD SCHOOLS?In the UK, schools are either provided by the local government authority (state schools) and are free for all pupils, or are independent schools and charge fees. Independent schools have an excellent reputation for high standards of teaching and learning, and almost all pupils go on to prestigious universities such as Cambridge and Oxford when they leave. Scholarships to state schools can only be offered to students from countries in the European Economic Area (EEA). Other universities include Imperial College of London and University College London.

HOW DO I GET FINANCING?Residency and citizenship by investment programmes don’t offer financing options, and the

investment amount must be made up front and in full.

HOW DOES INCOME TAX WORK?Normal country tax if a tax resident, but can be non-domicile if they keep assets separated prior to settling in the UK and thereby only pay tax on income generated from new assets/capital generated from that point on.

DO I LOSE MY CITIZENSHIP WHEN I SELL?

No. You may sell your investment and keep your citizenship status and passport, provided you hold the investment for the required five years.

Investors will have to make the UK their

primary home (spending more than 50 per cent of their

time there). The initial Investor Visa lasts 40 months and can be extended thereafter if conditions have been met.

USEFUL CONTACTS monarchandco.comgov.ukhamptons.co.uk

08 UNITED KINGDOM

SELLING POINTThe initial Investor Visa lasts 40 months. It can be extended thereafter,

provided certain conditions are

met

TIP

(CITIZENSHIP & RESIDENCY) (CITIZENSHIP & RESIDENCY)

‘I can’t give better advice than to seek the best possible local help. I’ve made it my business over the years to engage with sound local partners.’ Chris Immelman, MD, Pam Golding Properties International

TIP


CITIZENSHIPWHAT IS THE MINIMUM AMOUNT I NEED TO INVEST?Investment in a qualifying property development or citizenship-by-investment-approved business to a minimum of $400 000.

ARE THERE GOOD SCHOOLS?Yes. There are a number of high-standard private and public schools. Education is compulsory from age 5 to 16. The University of Health Sciences Antigua is well regarded.

HOW DO I GET FINANCING?This programme doesn’t offer financing options and the investment amount must be paid in full up front.

HOW DOES INCOME TAX WORK?Normal country tax, if tax resident, on a sliding scale from 0 to 25 per cent.

DO I LOSE MY CITIZENSHIP WHEN I SELL?You may sell your investment and keep your citizenship status, provided you hold the investment for the required five-year period.

USEFUL CONTACTSmonarchandco.comcip.gov.ag

CITIZENSHIPWHAT’S THE MINIMUM AMOUNT I NEED TO INVEST?A single property investment of minimum ¤2,5 million or a multi-property investment of minimum ¤3 million. Dependant children up to age 28 qualify for citizenship, and citizenship is passed on by descent, offering a legacy to future generations.

ARE THERE GOOD SCHOOLS?Yes. Education is compulsory for all children aged five to 15. Public schooling, including higher education, is paid for by taxes. Accredited independent schooling is also available. Top universities include the European University Cyprus, Frederick University, Neapolis University and the University of Nicosia.

HOW DO I GET FINANCING?The citizenship by investment programme doesn’t offer financing options, and the investment amount must be paid up front and in full.

HOW DOES INCOME TAX WORK?Normal country tax if a tax resident, on a sliding scale between 0 and 35 per cent. There’s no worldwide taxation if not a tax resident.

DO I LOSE MY CITIZENSHIP WHEN I SELL?You may sell your investment and keep your citizenship status and passport, provided you hold the investment for the required three years and you retain a property of minimum ¤500 000.

RESIDENCY WHAT’S THE MINIMUM AMOUNT I NEED TO INVEST?

A single, secure real-estate investment of

¤300 000 or two adjacent apartments or townhouse units

for a total minimum value of ¤300 000. Dependant children up to age 25 qualify for residency. The residency permit automatically renews, and is for life.


HOW DO I GET FINANCING?You can get financing for the residency programme. Only two-thirds of the purchase price needs to be paid before the fast-track residency application process can be started. All resales need to be cash.

HOW DOES INCOME TAX WORK?Normal country tax, if a tax resident, on a sliding scale between 0 and 35 per cent. No worldwide taxation if not a tax resident.

DO I LOSE MY RESIDENCY WHEN I SELL?After three years you may sell your investment and keep your residency status, provided you hold an investment of minimum ¤300 000 indefinitely.

USEFUL CONTACTS cyprusvisa.eucypriotrealty.commonarchandco.comvasslaw.com

09 CYPRUS(CITIZENSHIP & RESIDENCY)

SELLING POINT‘Passports are issued

in three months, making it one of the quickest

citizenship programmes,’ says Jenny Ellinas,

Cypriot Realty

R E S I D E N C Y

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Take the time to go on a property inspection trip to look at the properties yourself, and only deal with organisations with a solid reputation here in South Africa and in Cyprus. Do your research, get as many referrals and

recommendations as you can, and meet them in their place of business – that way you can be assured they are reputable. Jenny Ellinas, Cypriot Realty

TIP

RESIDENCY is the legal right to live, work, travel and study in a country, subject to certain conditions. Typically you wouldn’t give up citizenship in your own country.

CITIZENSHIP, on the other hand, means the person is a legal citizen of another country with, for example, the right to vote. Residency can be revoked, whereas citizenship typically wouldn’t be. Some countries allow for dual citizenship, but others do not.


10 ANTIGUA & BARBUDA(CITIZENSHIP)

‘Work with a company that not only has a proven track record but one

that can offer you a wide variety of investment options to best suit your requirements’ James Bowling, founder, Monarch & Co International

TIP

Invest in a life of luxury

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PI_ADS.indd 54 2016/01/21 9:48 AM

SA’S SUPER- STARS?

From one end of the country to the other, 2015 ended on a number of property highs. The buzzwords were ‘super-brands’ or ‘super-estates’, with developers increasingly refining mixed-use self-contained estates to meet investors’ revised definitions of luxury

SUPER-ESTATES

Text Anne SchaufferPhotographs Supplied


Every few years, to much fanfare, Umhlanga – one of the biggest growth nodes in the country – alters its skyline in dramatic fashion, and 2015 was that year. A R3,1-billion collaboration between Vivian Reddy of Edison Power Company and Rob

Alexander of Ducatus Property Group, Oceans Umhlanga (oceans-umhlanga.com) is to date the single largest private-sector development in KwaZulu-Natal.

The mixed-used development covers 90 000m2 of prime Umhlanga Village land, spans 250 metres from end to end, and has two residential towers of 460 apartments, and a retail tower named Ocean Mall for which Reddy has confirmed ‘big-hitter’ super-brands such as Burberry, Versace, Armani, Boss Orange and Paul Smith.

The key phrases from Reddy to the four architectural practices on board – Elphick Proome, Lyt, Ruben Reddy and Ravi Jhupsee Architects – were ‘Dubai’, ‘world class’ and ‘best ever’. The apartments have entry-level price tags of around R1,6 million, soaring 28 storeys up to R60 million for a double penthouse.

Marketing and sales fall under the auspices of DevMark Global, headed up by managing director Piaras Alvarez. DevMark Global’s local high-profile success stories include the record sell-out of The Pearls and Zimbali Suites.

PI_FEB16_SUPERESTATES_V2.indd 80 2016/01/19 5:06 PM

SUPER-ESTATES


Alvarez has around 25 years of global property experience, particularly in Dubai, the Middle East and Asia, and brings an entirely different operating model to his projects. ‘We learned how to market and sell in a way that’s more cost effective than has typically been done in South Africa. We cover a far wider gamut of functions than an estate agent, and we share our mandates with all other estate agencies.’

For Oceans Umhlanga, DevMark will hold their sales event for committed buyers on 26 March. Alvarez likens prices to not far off those in Cape Town: ‘Starting prices will be around R40 000 per square metre – a 40m2 studio with 10m2 terrace – up to R55 000 at the top end.’

In the Western Cape’s Paarl Valley, Val de Vie’s collaboration with the Mantis Collection to acquire Pearl Valley Golf & Country Estate (pearlvalley.co.za) is, says marketing director Ryk Neethling, the culmination of six years of endeavour. ‘We had this dream, and when we first spoke about it, it was so far off, so impossible. It’s been a very long process – a good lesson in perseverance – and it’s very satisfying to have been able to secure it.’

Neethling believes Val de Vie were the natural buyers: ‘We have a great relationship with the Drakenstein municipality, and a major plus is that we have the extra bulk capacity on water, sewage and electricity. We easily had capacity to develop Pearl Valley’s phase two, and once we had the undeveloped land, we thought, let’s combine it, include the golf, and offer these unbelievable amenities and facilities not found elsewhere. The Jack

Niklaus golf course – one of the best in South Africa – is profitable, so no additional financial drain on anybody.’

For Val de Vie, the inclusion of Pearl Valley in the brand adds yet another lifestyle product to their list of 14. ‘We see incredible value here,’ says Neethling. ‘It’ll be a niche product with its own identity, but within the Val de Vie stable – it’ll be Pearl Valley at Val de Vie.’

Currently, Val de Vie and Pearl Valley are a 35-minute drive from Cape Town and the international airport, but with Val

de Vie’s plans to construct a bridge spanning the Berg River to connect with the R45 – completion date 2017 – Stellenbosch will be

only a 15-minute ride away. Neethling sees this narrowing of the distance as a great opportunity for the estate: ‘The prices in Stellenbosch are still about 30 per cent higher than at Val de Vie,’ he says, ‘[but] our prices have shown incredible growth on land of about 50 per cent over the last 18 months. In 2013, we were selling land at about R1 200 a square metre. We recently sold a piece of land, not even north facing, for R3 200 [per square metre]. In some cases, the value has tripled.’

With infrastructure as the catalyst for development, in Umhlanga the first residential block is being launched in one of the four nodes within the R50-billion Ridgeside precinct (cornucobia.co.za), the last piece of land available in Umhlanga. Landscaped parks, tree-lined boulevards, piazzas and a network of cycling and walking trails will weave among the natural vegetation.

Planning of Ridgeside is closely aligned to an environmental management programme, which includes a buffer zone to protect the remaining coastal

SELLING POINTThe concept of ‘luxury’ today is a lifestyle where priorities are time

spent with family, proximity to work, retail and leisure facilities, living closer to and more in touch

with the land and nature, and healthy outdoor pursuits

on tap

TODAY’S LUXURY LIFESTYLE INCLUDES EASY ACCESS TO HEALTHY OUTDOOR ACTIVITIES

Val de Vie’s acquisition of neighbouring Pearl Valley Golf & Country Estate heralds powerful additions to the luxury brand, which is no stranger to international property awards, with, among others, the Polo House recently having won the Best Single Unit Development in Africa and Arabia OPPOSITE Oceans Umhlanga consists of two towers of 460 apartments, and a retail tower, Ocean Mall


forest. The southern and western aspects already include a number of corporate offices, including the FNB and other high-end office blocks.

Ten minutes farther north – and five minutes from King Shaka International airport – developer Charles Thompson’s OceanDune (oceandune.co.za) is the first residential development off the drawing board in the Tongaat Hulett mixed-use Sibaya precinct, which will ultimately comprise five development nodes across 750 hectares. Weeks before the official launch, Keller Williams Realty described in excess of 1 200 interested parties viewing the site, and over 3 000 registrations from interested buyers. Thompson’s portfolio includes Zimbali Suites, Ocean Club Zimbali and The Square Boutique Hotel.

Pretoria has Menlyn Maine (menlynmaine.co.za), a R32-billion, 32-hectare mixed-used development with apartments, medical facilities, entertainment and parklands. All buildings are set to achieve a Four Star Green Rating through the Green Building Council South Africa (GBCSA). In addition, Menlyn Maine is one of only 16 cities participating in the Clinton Foundation’s Climate Positive Development Programme, which works together with governments and businesses across the globe to improve urban energy efficiency.

All residents will be able to access Pretoria’s new bus rapid transit (BRT) system, the Gautrain bus system and a new taxi station. A new bridge link is reportedly due to be built, which will feed off Atterbury Road to provide direct access to Menlyn Maine from the north which, with the completion of various other road changes, should alleviate potential traffic issues.

On a 2 200-hectare tract of land between Woodmead, Kyalami and Midrand is the Waterfall development (waterfall-estate.co.za), also destined to become a new green city. This estate has shown unprecented return on investment, and Geoffrey Crow of Century Property Development believes values will be driven up further when the retail nodes are completed, such as the Mall of Africa, being built at R40 000 per square metre and due to open in April 2016.

Crow says that over the past four years some values have doubled, even tripled, in value, and that they envisage an increase of as much as 50 per cent once they sell out the final properties, where demand will exceed availability. ‘Waterfall Equestrian Estate stands are up from R3 million land price to over R14 million on a recent sale,’ he says. ‘At Waterfall Valley and Waterfall Hills Mature Lifestyle Estate house prices have risen from an initial R2,2 million to over R4,5 million resales in three years. Waterfall Country Estate and Village have seen unprecedented returns, with stand values more than tripling from R650 000 to R2 million in resales four years later.’

And when it comes to rentals, the demand is huge, with clients achieving monthy rentals of between R27 000 and R150 000 on the Equestrian Estate.

Hong-Kong company Shanghai Zendai is behind the vR84-billion ‘smart city’ in Modderfontein (heartland.co.za), eastern Johannesburg. Development of the 1 600-hectare property began early in 2015. It’s envisaged as a 15- to 20-year project which includes, says chief operating officer Du Wenhui, 30 000 to 50 000 housing units of different types and sizes, an education centre, a medical centre and a sports stadium, and the 275-hectare Modderfontein Reserve. This private park, the second largest in Gauteng, includes portions of the Modderfontein Spruit, several dams, grassland and hills.

The Modderfontein site is strategically located between the Sandton CBD and OR Tambo International Airport; the Gautrain connects Modderfontein to the Johannesburg CBD, Sandton, Pretoria and the airport, while development plans for the site include a Gautrain station in Modderfontein.

Zendai Development SA is focused on growing a portfolio in Modderfontein. The landholding includes a number of commercial and industrial buildings to let, and Zendai intends to develop a Heritage Village which will include various cultural and recreational offerings around protected and restored buildings.

The land will be released in three ways: independent development, joint ventures or land sales. The first development phase will take place in the LongLake and Founders Hill areas – the first phase of LongLake will cater for office, commercial, residential and light-industrial developments, while the Founders Hill precinct will cater for the development of educational and training facilities

Plans are under way to allow for the release and development of these areas, and Zendai Development SA are currently seeking strategic

SUPER-ESTATES ARE CHANGING THE WAY WE LIVE AND WORK


SUPER-ESTATES

The R3,5-billion shopping centre, Mall of Africa, is located at the heart of Waterfall City. BELOW Amsterdam House will be the first building in the V&A Waterfront’s new Canal District


SUPER ESTATES

partnerships, investors and joint-venture partners. It’s estimated that on completion the development will create 200 000 jobs, cater for 100 000 residents and allow for the development of about 13 million square metres.

The 2 000 acres of land that comprise the lifestyle resort of Steyn City (steyncity.co.za) in the Fourways area has seen an investment of nearly US$82 million. At conception, it was considered the largest development of its kind ever undertaken in Africa, destined to consist of some 10 000 homes, which have been selling rapidly since phase one went to market in March 2015. Most of the residential properties in that phase have been sold, with investors coming from as far afield as Nigeria, Ghana, Switzerland, Sweden and Denmark. The accent on community living has been a drawcard for multinational corporates seeking new homes for their expat employees.

Mark Williams, a realtor at Steyn City Properties, reveals that the highest price mid-year for a rental property was for one valued at R120 million and rented out for R130 000 per month; another has been leased at R120 000 per month.

Comments Dr Andrew Golding, CEO of the Pam Golding Property group, ‘With R800-million worth of sales, or the equivalent of 150 units, clearly demonstrating a huge vote of confidence in this type of product, Steyn City has, in this short time, outperformed other luxury estates brought to market over the past decade.’ Investors are paying R3,5 million for a 1 000m2 stand, and homes are priced from an entry-level R4,2 million up to R19 million built and ready for occupation. Golding anticipates that those building now will more than triple the record price for the area in years to come.

And in the Western Cape, mixed-use development and redevelopment in and around the V&A Waterfront is going full steam ahead. Development managers Amdec Property Development has committed R1,2 billion to its mixed-use The Yacht Club (amdec.co.za), due for completion in mid 2017.

Located within the Roggebaai Canal Tourism Precinct, connecting Cape Town’s financial hub, the Cape Town International Conference Centre (CTICC) and the V&A Waterfront, The Yacht Club will be the biggest development of its kind in the precinct, joining the existing Harbour Bridge Hotel & Suites and Canal Quays apartments. The location and transport systems make The Yacht Club superbly accessible by car, bus, shuttle, taxi and water-taxi.

The Yacht Club will feature one-bedroom, two-bedroom and luxury corner apartments ranging from 54m2 to 95m2, with a starting price of R2,4 million. Nicholas Stopforth, joint managing director of Amdec Property Development, confirmed the development has the potential to include a hotel and associated serviced apartments.

The V&A’s final phase of the Silo district (waterfront.co.za)is on track for early 2017 sign-off, at an investment of R1,5 billion. Together with No 1 and No 2 Silo developments, this will bring the total investment by V&A Waterfront shareholders, Growthpoint and the Government Employee Pension Fund, managed by the Public Investment Corporation (PIC), to over R2,5 billion.

The four new Silo developments (3, 4, 5 and 6) will introduce over 35 000m2 of mixed-use sustainable developments, including new corporate offices, a residential development, a Virgin Active Classic Health Club and a 220-key 8 000m2 mid-range internationally branded hotel, plus over 1 050 additional parking bays. Due for completion in late 2016, No 3 Silo will offer about 75 luxury one- to four-bedroom apartments.

Investment in South African infrastructure has played a decisive role in altering our property landscape. It’s been the catalyst for unprecedented mixed-use super-estate developments offering a range of elements, from security and traffic to easy access to nature. These super-estates are responding to the new lifestyle we want, as much as changing the way we live.




ADVERTORIAL

‘IT’S OUR MISSION TO OFFER BUYERS A SAFE AND TRANQUIL ENVIRONMENT COUPLED WITH CONVENIENCE’ RIAAN ROOS, CEO, MSP DEVELOPMENTS

FOR MORE INFOVisit

www.acorncreek.co.za email

[email protected] or call

021 801 5400

PI_FEB16_MSP_ADV_V4.indd 84 2016/01/20 1:14 PM

Optimal indoor-outdoor fusion achieved by modern architecture

Acorn Creek is situated in the spectacular Helderberg region of the Western Cape. It is a place where you can be at your ease and do those things that you really please. The surroundings offer beautiful mountain trails, prestigious golf courses, innumerable wineries and stunning beaches.

This contemporary village by MSP Developments places emphasis on spatial planning with urban design inspired by the creek running through the village. As such it will be a key design element of the open garden areas. The north-facing orientation of the village homes blurs the barriers between indoor and nature, as lounge and dining areas seamlessly open up to pergola-covered patios and landscaped gardens – ideal for the entertainer.

Design options include Grohe mixer taps, Miele ovens with electric hobs and extractor fans as well as uninterrupted power solutions. For added winter warmth and intimacy there is a choice between a gas or a wood-burning fireplace. All homes will enjoy high-speed fibre optic connectivity and have solar geysers fitted.

Superior security will add to the allure of the development. Acorn Creek offers a 24/7 guarded main entrance that incorporates biometric access-control technology and number-plate recognition software to monitor and manage access. A biometric-enabled turnstile will provide controlled access to pedestrians and domestic staff. The development’s perimeter is secured with galvanised mesh fencing that protects against digging, climbing and cutting. Acorn Creek will also have a network of monitored thermal-imaging cameras that will further enhance the overall security of residents.

Accessibility is another key consideration. The N2 freeway gives quick access to the nearby international airport and the Cape Town city centre. The development is adjacent to Sitari Country Estate and will offer residents convenient, direct access to the commercial and educational facilities that are available there, including Checkers and the new Curro private school.

Construction will be undertaken in eight phases with phase one due to commence in the first quarter of 2016 and village homes priced at around R2 million.

MSP Developments, currently one of the largest private developers in the Western Cape, was established in 2002 and has built in excess of 5 000 homes.

GO WITH THE FLOW

ADVERTORIAL


PI_FEB16_MSP_ADV_V4.indd 85 2016/01/20 1:14 PM

A revived natural site is a scenic backdrop for a city homeNATURE’S CALL


ADVERTORIAL

PI_FEB16_SUMMERCON_ADV.indd 86 2016/01/20 12:53 PM

Cedar Lofts in Fourways, Johannesburg, is a unique residential development: most of the sprawling site has been restored to its original state as a flora- and fauna-filled wetland.

Sectional-title developer Summercon has populated only four hectares of the nine-hectare site with its 425 studio

and one- and two-bedroom executive apartments and penthouses. The remaining five hectares – which prior to the development were unprotected and unmanaged – were sensitively restored to their natural state.

This gives Cedar Lofts residents the best of all worlds, with access to beautiful natural surroundings with abundant fauna and flora, plus the convenience of a contemporary home packed with mod-cons, including fibre-to-home internet, as well as 24-hour access-controlled security, and an on-site laundromat, clubhouse and swimming pool.

Summercon embraces opportunities to develop in synergy with nature, looking at the long-term value they can add. Wetlands are important for many reasons: they help with flood control, improve water quality, recharge groundwater supplies, and provide a natural habitat for indigenous plants and wildlife. This is why Summercon engaged and worked with the relevant water authorities and the city of Johannesburg when it undertook the lengthy project to improve the quality of the wetland on the Cedar Lofts site. This included the removal of exotic species, structural work, landscaping and irrigation.

Prices of apartments range from R709 000 for a studio executive apartment to R959 000 for a one-bed, one-bath executive penthouse.

ADVERTORIAL


CEDAR LOFTS RESIDENTS HAVE THE BEST OF ALL WORLDS: BEAUTIFUL NATURAL SURROUNDINGS ON THE DOORSTEP OF A MODERN HOME

CONTACT DETAILSwww.summercon.co.za

or call 011 996 0000

PI_FEB16_SUMMERCON_ADV.indd 87 2016/01/20 12:53 PM

IF YOU FIND A

3 BEDROOM FREESTANDING HOMEON A

PREMIER GOLF COURSE FAIRWAYFOR

UNDER R2 MILLIONDON’T TELL ANYONE AND BUY IT AS FAST AS YOU CAN.

E-MAIL [email protected]

MOBILE 082 060 5777

SALES OFFICE 011 251 6602

Sales Office open daily from 10am to 5pm

Offer is limited. Jackal Creek reserves the right to change the offer without prior notice.

Proudly marketed by

www.jackalcreek.co.zaMODERN GOLF ESTATE LIVING.

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16006 Monarch Half Page Ad FP.pdf 1 2016/01/19 1:55 PM

PI_ADS2.indd 54 2016/01/20 8:08 AM

Wayne: 072 431 0289Elizah: 083 704 6122

R 1 295 000

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In partnership with

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INVESTMENTText Patrick Cairns

Photographs Supplied/Bomax/Rawson Developers

FOOD FOR THOUGHTWhen investing in property, you have to understand it as an asset class. Citadel advisory partner Abraham van der Westhuizen says there are five key characteristics that you have to bear in mind.

PROPERTY VALUES DON’T ONLY GO UP ‘We as South Africans saw an unparalleled bull market in the property sector for quite a long time leading up to 2008, so we grew up with the idea that property is something that just keeps increasing in value and can’t diminish in value. But globally we’ve seen that property prices can decrease. If interest rates aren’t in your favour, your asset can end up being worth less than what you owe on the bond.’

CONSIDER LIQUIDITY ‘Property isn’t something that you just buy and sell easily. If you have markets where property demand comes under pressure and you might want to exit your investment, it’s the hardest time to sell and is when you get the lowest value.’

THE TAXMAN COMETH ‘The rentals you earn from property are added to your income, taxed at the marginal rate, whereas if you hold a basket of shares, your dividends are only taxed at 15%.’

PI_FEB16_INVESTMENT_V4.indd 90 2016/01/19 3:26 PM

RESIDENTIAL INVESTMENT


Between 1987 and 2008 South African house prices enjoyed a spectacular surge. For three decades, property values went higher year after year, with increases often hitting double digits.

This growth peaked in 2004, a year in which statistics from Absa showed a 32,24 per cent jump in the average house price. This was

followed by a further 22,71 per cent increase in 2005.These kinds of gains encouraged many South Africans to view property as

an unmatched investment opportunity. The chance to earn such returns on capital, sometimes on top of rental income, seemed too good to pass up.

However, not everyone who bought property ended up boosting their wealth. For a start, the growth in house prices has slowed since 2008, and in some areas property values have even fallen. Secondly, many people entered the market without fully understanding that not every property you buy is automatically a good investment.

When price growth appears unchecked, it’s easy to make the mistake of thinking that you can’t go wrong with property. However, while buying real estate does sometimes make good financial sense, at other times it really doesn’t.

YOUR PRIMARY RESIDENCEFor most people, the first property they buy is the one they’re going to live in. And while it’s true that there are benefits to renting, there are solid financial reasons for owning your own home. Most important is the stability it affords.

‘Property as a primary home, I think, is arguably one of the best investments you can make,’ says Samuel Seeff, chairman of Seeff Properties (seeff.co.za). ‘You need to own your primary home. It’s the foundation of your whole life.’

‘Your primary residence isn’t just a financial investment,’ adds Hardi Swart, marketing director at Autus Private Clients (autus.co.za). ‘It’s an emotional investment as well.’

Over and above this, though, there’s a good reason why many advisers encourage their clients to buy rather than rent – for most people, it forces them to put money towards something that ultimately becomes an asset.

‘Many people wouldn’t save the same amount of money each month as they would be willing to pay off on their bond,’ says Swart, ‘so from that perspective alone, it forces people to save.’

When is property a good investment - and when isn’t it?

NO GUARANTEES

DON'T NEGLECT THE EXPENSES ‘Many people forget about the costs involved with property. You have to think of maintenance, property rates and taxes, and legal fees if you have problems with tenants, and the opportunity cost when you’re unable to find new tenants.’

YOU MIGHT BE MISSINGOUT ON COMPOUNDING ‘People don’t necessarily take their rental income and invest it back into property. But if you’re earning a dividend and you keep reinvesting it, you acquire more shares, and so you get more dividends the next year. Over the long term, this compounding is one of the biggest drivers of wealth creation.’

citadel.co.za


BUYING A SECOND HOME IS APPEALING BUT IT’S RARELY A GREAT INVESTMENT


SELLING POINTMany people wouldn’t be able to save the same amount of money

each month as they would be willing to put into paying off a bond, so from that perspective, owning

your own home forces you to save

A SECOND HOMEThe idea of a holiday home at the beach or in the mountains is a very appealing one for many people. There’s no question that there’s something special about having a place of your own that you, your family and friends can use rent-free. It could also be a place to retire to one day.

But does this count as making an investment?Over the years the value of the property may well

increase, but the reality is that buying a second home is rarely a sound financial choice.

‘People don’t consider the cost involved,’ says Abraham van der Westhuizen, advisory partner at Citadel. ‘It’s not as simple as saying, “I bought the house for so much and it’s now worth so much more,” because there are financing costs, maintenance costs, rates and taxes paid over the years, and the opportunity cost of the money lying there. The reality is that you have to weigh up the capital gain against what you might have earned if you’d put that money into another asset.’

Buying a second home is, therefore, rarely a great investment, and in some cases it’s a demonstrably poor one.

‘There’s a big development on the KwaZulu-Natal South Coast where a lot of people bought property back in 2008 for between R2 million and R3 million,’ Swart says by way of example. ‘Seven years later those properties are now worth the same or in some cases less than what they were purchased for. So, taking inflation into account, the owners have actually seen capital depreciation and they have still had to pay all the expenses. So that’s been a terrible investment.’

A holiday home should therefore be seen as a luxury and measured by what it adds to your quality of life, not what it adds to your personal balance sheet. Because, ultimately, there are much better ways to deploy your capital.

INVESTMENT PROPERTYWhere property really comes into its own as an investment is when it’s bought to be rented out, because then you’re buying it not only for the capital growth, but also for the income it can generate. The big positive that property has in this regard is that you’re able to use credit to buy it.

‘What’s significant about property as an asset class is that you can obtain mortgage finance,’ says Seeff. ‘You don’t have to purchase the whole asset up front, but you can immediately start earning income off it and see capital growth on the total value, not just on your initial investment.’

RESIDENTIAL INVESTMENT

While this may make it sound like an easy win, this is far from the case. ‘I don't think people realise how much work and effort

it takes to really manage a property properly,’ Seeff says. ‘Everyone thinks you buy the property, tenant it and walk away, but it’s not that easy.

‘You have to spend the requisite time and effort to understand the market. If you do it properly and professionally, it’s a question of choosing carefully in areas that you think are going to give you continued demand from tenants and also price appreciation, so that you get

the return on both a monthly basis and the capital growth down the line.’Generally, it’s more lucrative to invest in smaller properties.

This is because demand is more certain at the lower end of the market, and returns are higher.

‘The lower the price, the higher the relative return on the investment,’ says the CEO of Vineyard Estates (vineyardestates.co.za), Anton du Plessis. ‘I wouldn’t buy a R10-million house in the hope of getting a reasonable rental return on it, because if you’re looking for someone paying R50 000 a month, you could wait for months between tenants.’

However, he points out that while the return on ten R1-million properties would be higher than on one R10-million property, the administrative burden would be much higher.

‘In addition, simply due to the number of tenants you’re exposed to, you may be more likely to have a delinquent if you had 10 properties than if you had one,’ he adds. ‘Then again, if you have only one tenant paying R50 000 a month and that one tenant becomes a problem, the result is fairly disastrous.’

While anyone doing the necessary homework may be able to make a successful investment, real estate is still not an easy way to get rich.

‘The only way to get rich is by having a successful business and applying your time and energy in a specialised field,’ Van der Westhuizen argues. ‘And the only way that you’ll get rich through property is if it’s your business. There’s no way you’ll get rich through buying a passive investment.’

The successful property investors are those who’re willing to put in this effort. Many also concentrate on a specific area, such as student accommodation.

The key is that anyone who wants to do it, must take the time and effort to understand how to maximise their returns. Anything else is simply buying and hoping for the best.

‘And hope isn’t a strategy,’ says Seeff, ‘because there are no guarantees.’



‘The key factors making student accommodation attractive are the high demand and the stable income generation it gives, due to low operating costs,’ says Lesiba Mooka, CEO of Cobalt Blue Properties (cobaltblueproperties.co.za).

‘Institutions aren’t able to provide sufficient accommodation for all their students and this has opened doors for investors to enter the market.’ Mooka points out that the University of Johannesburg can only accommodate 6 500 students, Wits 5 000 and the University of Pretoria just short of 6 000 – but each of these institutions has an estimated 30 000 students or more on their main campuses.

He says that the most important considerations when looking at potential opportunities in student accommodation are the proximity to the university, the condition of the building and, of course, the price.

‘The area where the property is located will affect the travelling times to and from the campus and the accessibility of public transport, as well as things like security,’ he says. ‘The property mustn’t be so big that students have to pay too much, but also it shouldn’t be too small. Most students tend to avoid university residences because they consider them to be small and cramped.’

Although some investors have realised an opportunity in buying old office buildings and turning them into apartment blocks for students, Mooka suggests that anyone wanting to enter this market should rather think of starting smaller.

‘As a start, I’d advise investors to look at small apartments or old houses that they can turn into student communes,’ he says. ‘The monthly operating expenses on these types of properties will be lower, as will the start-up capital. Only when they’ve acquired enough experience in operating these properties efficiently and are aware of all the difficulties that come with owning one, should they look into something bigger, such as an old office building to convert.’

He says that for one- or two-bedroom apartments, investors should be able to find properties in the price range of between R350 000 and R450 000. These could realise rentals of between R4 000 and R8 000 per month, depending on the number of beds per room. The alternative is to pay between R700 000 and R900 000 for a standalone house that can be made student-friendly. This could see rentals of between R15 000 and R20 000 per month, depending on the number of rooms and tenants.

Following the success of The Premier and other developments in Kenilworth and Rondebosch (opposite and this page), Rawson Developers (rawson-developers.co.za) are now selling Madison Place in Observatory from R1,4 million.

STUDENT ACCOMMODATIONIn recent years student accommodation has come to present a real opportunity for investors. As it’s predominantly a segment that covers smaller properties with good returns, it has some ideal characteristics

30K THE APPROXIMATE NUMBER OF STUDENTS ON SOME GAUTENG CAMPUSES5-6k: the number of students who can be accommodated by those universities



YOU DON’T HAVE TO BUY BRICKS-AND-MORTAR

Real Estate Investment Trusts are a good option for investors who want to achieve above-average returns but also want to limit their exposure to stock-market volatility

Even those who are convinced that property is a great investment can find the thought of selecting, financing and managing rental units – or dealing with tenants – so daunting that they never follow through on their inclination. But they don’t have

to give up on property altogether, as there are several alternatives to direct ‘bricks-and-mortar’ investments in this sector, the most accessible of which are Real Estate Investment Trusts (REITs).

These are the listed property-investment vehicles that in 2013 replaced the old and often arcane property unit trusts or property loan-stock companies. By November last year, there were 33 South African REITs and three non-South African REITs listed on the Johannesburg Stock Exchange (JSE), with a combined market capitalisation of R455 billion.

The business of these REITs is to enable individuals and institutional investors to collectively own and operate a portfolio of income-producing properties such as shopping centres, office buildings, factories, warehouses, hotels and hospitals in cities and towns across the country. Most REITs are diversified and own several types of property but there are also niche or specialist REITs that focus only on a certain type of property, or invest only in properties outside South Africa.

For example, Sirius Real Estate, which was only recently listed on the JSE, is focused entirely on mixed-use business parks in major German cities; and the Rebosis Property Fund is currently being reorganised to focus exclusively on retail centres, while the less-exciting government-tenanted office blocks it owns are shifted into subsidiary Ascension Properties.

On the other hand, Vukile Property Fund, which is currently focused primarily on retail investments, is aiming to diversify its portfolio quite substantially. It recently announced that it would convert a Randburg office building that it owns into residential apartments, for example, and that it would be adding more assets in developed markets to complement its interest in Atlantic Leaf, which owns industrial properties in the United Kingdom.

REITs such as these make money for their investors from the rentals paid by tenants in the properties they own, as well as the increasing value of these properties, and this is paid out or distributed in the form of dividends, usually every six months. And they’ve done very well for their investors over the past 10 years, during which they’ve outstripped both the All Share Index and the All Bond Index.

Indeed, according to Laurence Rapp, chairman of the SA REIT Association (www.sareit.com), the listed property sector has not only increased in size and economic impact in recent years, but continues to be the best-performing asset class in South Africa, despite the weakness of the economy, and deserves the attention of any serious investor.

In the most recent Sunday Times Top 100 Companies survey, he notes, there were 11 South African REITs among the listed

companies that had earned the most for their shareholders over the past five years, and the top award went to one

of them – the Fortress Income Fund, which delivered an annual compound return of 72,7 per cent.

The other 10 were Capital Property Fund, Emira Property Fund, Growthpoint Properties, Hyprop Investments, Octodec Investments, Redefine Properties, Resilient Property Income Fund, SA Corporate Real Estate

Fund, Sycom Property Fund and Vukile Property Fund. So it’s no surprise, really, that REITs have been attracting

increasing numbers of individual investors and boutique investment-fund managers who want to achieve above-average

dividend income but also want to limit the extent to which they will be directly affected by stock-market volatility.And, says Keillen Ndlovu, head of listed property funds at investment

manager Stanlib, the South African listed property sector has become even more attractive recently, thanks to the fact that it offers local investors exposure to foreign markets that are not facing South Africa’s current currency or credit-rating problems.

The recently listed Atlantic Leaf Properties, Capital & Regional, Delta Africa, International Hotel Group, New Freedom Properties, Schroder European Real Estate Investment Trust and Stenprop all offer investors rand-hedge opportunities, and it’s estimated that offshore property assets now make up some 30 to 35 per cent of the South African listed property index.

What’s more, as the SA REIT Association points out, anyone can invest in a REIT and doing so may be easier than most people think. ‘The JSE says that the minimum investment in a South African REIT is just one share. Investments in a South African REIT can be made directly via a securities account (online or using a stockbroker), or through a collective investment scheme such as a unit trust or retirement annuity. The SA REIT Index can also be your investment to obtain exposure to the whole sector.’

SELLING POINTREITs enable individual and

institutional investors to collectively own a portfolio of income-

generating properties. Most REITs own several types of property but some specialise in certain

types or places

SOME REITS FOCUS ON CERTAIN TYPES OF PROPERTY OR NICHE MARKETS

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PROPERTY

Text Meg WilsonPhotograph iStock

Charts Ian Anderson

n Low-risk exposure to the best investment-grade propertiesn Your investment is underpinned by solid lease agreementsn Properties are professionally managedn REITs are subject to strict governance requirementsn The cost of entry to the sector is lown It’s quick and easy to buy or sell shares in REITs at any timen REIT shareholders pay no tax on buying or selling shares, and also receive their gross distributions without dividends tax being levied – but they do have to include these distributions in their taxable income and pay tax on them at their applicable income-tax rate.

REITSGOOD TO KNOW

COMMERCIAL INVESTMENT

TOTAL RETURNS INDEXES

5-YEAR ANNUALISED PERFORMANCE TO 30 NOVEMBER 2015

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CASHING IN ON PROPERTY INVESTOR AND DEVELOPER RETURNSIt hasn’t made great strides into Africa yet, but some companies are taking tentative steps. Property crowdfunding, in which developers attempt to cash in on the potential of ‘the crowd’ to raise money for developments, is starting to attract global attention

CROWDFUNDING

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Property crowdfunding is one way for smaller developers and investors to access the tough property-development market and investment properties that previously were available only to the ultra-wealthy, funds and REITs. The individual investments are modest but the total sum is large, and investors then enjoy a split of

the revenue generated through rental or sale.For developers, it presents a great opportunity to market a property on a

new type of platform, and to obtain sufficient capital for the development to proceed. It also allows them to test the market, and allows the market to participate, decreasing the risk and costs of marketing for developers.

The potential investor ‘crowd’ differs widely. Some crowdfunding platforms in the UK target young people who can’t raise the funds for a deposit on their own home, but who still want to invest in fractional ownership of buy-to-let properties. At the other end of the scale is the more typical developer model, where investors put money into a development and then enjoy the returns.

SPREADING THE WORDRealty Africa (realtyafrica.com) is the second type of crowdfunding platform, providing investors with investment opportunities in property developments in southern Africa, and providing developers with a platform to showcase their plans and attract new investment. Wealth Migrate (wealthmigrate.com), however, helps investors invest in commercial opportunities in first-world countries.

Property crowdfunding can be ‘a tool for business owners to develop their project, as well as a tool for them to market themselves globally and build a track record’, says Erik van Eeten, cofounder and CFO of Realty Africa. ‘At the same time, it can be a tool for people globally to see that southern Africa holds many opportunities to invest, and that investing in this beautiful continent doesn’t have to be as scary as some might think.’

Most people have heard of crowdfunding as applied to creative endeavours such as music artists who fund their albums through platforms like Kickstarter. Property crowdfunding differs slightly. ‘There are different types of crowd-funding: donation-based, rewards-based, lending-based and equity-based,’

CROWDFUNDING

Text Georgina Guedes Photographs iStock, Supplied

INDIVIDUAL INVESTMENTS IN PROPERTY CROWDFUNDING ARE MODEST BUT THE TOTAL SUM IS LARGE, AND INVESTORS THEN ENJOY A SPLIT OF THE REVENUE GENERATED THROUGH RENTAL OR SALE

The leading global property crowdfunding platforms,according to Massolution (massolution.com), are

n LendInvest (lendinvest.com)n Prodigy Network (prodigynetwork.com)n We Are Crowdfunding (wearecrowdfunding.com)n GroundBreaker (groundbreaker.co)n RealCrowd (realcrowd.com)n RealtyMogul (realtymogul.com)n SoFi (sofi.com)n Money360 (money360.com)n CrowdMason (crowdmason.com)n Wealth Migrate (wealthmigrate.com)

TOPPLATFORMS

FORWARD THINKING



SELLING POINT‘IThe bottom line is that

crowdfunding makes real-estate investment opportunities available

to everyone in a transparent, trustworthy and cost-effective

way using technology’ Scott Picken,

Wealth Migrate

says Van Eeten. ‘Property crowdfunding, on the other hand, is all about investors investing directly into projects for developing property or other types of infrastructure developments, and getting a monetary return.’

Realty Africa ran a campaign on crowdfunding website Indiegogo to build global awareness and to attract some funding for its start-up company. It didn’t reach its target, but Van Eeten believes that, from a marketing perspective, they were successful. ‘We knew in advance that we wouldn’t reach our funding target because Indiegogo wouldn’t allow us to offer shares in the company as a perk. We chose Indiegogo because of its global reach – not many platforms out there have that yet. In parallel, we used alternative ways to attract funding for our company.’

CROWDFUNDING CHECKLISTWith its crowdfunding projects now up and running, Realty Africa facilitates the investment process in numerous ways. A thorough checklist means investors have the opportunity to invest in projects that have passed a rigorous due-diligence process. ‘Investors on our platform aren’t investing in Realty Africa as a company, or in an investment fund. Instead they’re investing directly into a project. They can choose from any of the projects available on the website at any time,’ says Van Eeten.

The time frames of Realty Africa investment projects vary, spanning one year for a build-and-sell project to 10 years for a hotel or eco-lodge development, and will then operate for a number of years. Realty Africa is also attempting to source projects for investors looking for impact investments such as social housing.

Patrick Chella, cofounder and CEO of Realty Africa, says many people hope to participate in an investment class that helps local communities to advance. These could include social housing projects, where they get a

THERE’S NO STANDARD RULE OF THUMB, AND RETURNS VARY DEPENDING ON THE LOCATION, DURATION AND COMPLEXITY OF THE PROJECTS. INVESTMENTS START AT $1 000

return but also help a local community to develop. ‘We’re looking at not only properties in the strictest sense of how you define a property, but also at renewable energy plants, eco-lodges and other sustainable developments.’

The big question for many is the kinds of returns offered. There’s no standard rule of thumb, and returns vary depending on the location, duration and complexity of the projects. Investments start at $1 000.

Realty Africa is currently looking for projects with potential in three countries: Zimbabwe, Botswana and South Africa. They intend to take

the concept into other southern African countries too. Breaking into this new market with a new investment proposition is challenging

because, as Van Eeten puts it, ‘the road is unpaved’.

OPPORTUNITIES FOR LOCALSWhile external investors are turning to Africa for its great growth potential as an emerging market, many local investors are equally keen to access real-estate investment opportunities in leading stable markets around the world.

Wealth Migrate, founded in 2009, now has local offices, and offers crowdfunded real-estate transactions with proven local

operators in foreign countries. The offering is thorough: members can access details of every investment, review the due-diligence

reports prior to investing, and manage their own real-estate portfolio online. The platform will also assist with the conversion of South African

currencies to and from the foreign currency in question.While crowdfunded property development is still in its early stages globally,

and especially in southern Africa, it looks set to take off both as a property-development tool and as an investment platform. Once the foundations have been laid, the sky could well be the limit for crowdfunding participants.

But as Scott Picken advises: ‘It’s not about the technology, it’s about understanding the fundamentals of property investment. Technology enhances the process, but the fundamentals of investment remain the same.’

FORWARD THINKING

Create an account with a property crowdfunding platform

Browse the available investment opportunities and select one you like, based on projected time frames and potential returns

Verify your identity and make your investment – if the target isn’t met within the time frame, your funds will be returned to you

Manage your portfolio of investments online

When each investment matures, receive your returns

PROPERTY CROWDFUNDING 101 DOES YOUR CROWDFUNDER DO THIS?n Check investors by using a full KYC (know your customer) process to make sure no terrorist financing or money laundering is involved

n Check projects for validity with the help of Deloitte

n Secure the project for the investor with a mortgage bond and secure the money on escrow accounts

n Use a fiduciary agent (or similar) to represent the investor in the local market, as many investors are offshore


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FORWARD THINKING

‘We see crowdfunding as the democratisation of financing for entrepreneurs,’ says Patrick Schofield, CEO and cofounder of Thundafund (thundafund.com) who has partnered with Scott Picken of Wealth Migrate (wealthmigrate.com) to cofound ACfA, launched on 25 November 2015. ACfA will be the industry association for crowdfunding professionals and companies in Africa. Their goal is to work with the Financial Services Board and regulators to create a more cohesive industry structure that protects investors and opens up access to capital for all Africans.

Collaboration is the name of the game here, and a global team of experts have supported Wealth Migrate (an international crowdfunding platform that offers global investors direct access to exclusive real-estate investment opportunities around the world, including in the US, UK and Australia) and Thundafund, South Africa’s leading online ‘crowdfunding cafe’ and marketplace for creatives and innovators. On the board is Xiaochen Zhang, who set up the Crowdfund China Society and works on crowdfunding for the World Bank, as well as Dan Marom, who advised on the crowdfunding regulations created by the European Union. In addition, the association is endorsed by Carl Esposti, founder of Crowdsourcing (crowdsourcing.org) and Massolution (massolution.com); and Ronald Kleverlaan, advisor to the European Commission and cofounder of the European Crowdfunding Network (eurocrowd.org), is also an advisor to the ACfA board. Together, their and other professionals’ invaluable input will provide a blueprint and framework that has previously been successful around the world.

What excites Picken is that ‘there’s a huge wealth gap in the emerging world, and crowdfunding is a solution to close this gap. It can provide equal opportunity and equal access to capital that’s essential for wealth creation within underserved populations’.

At the time of the launch, Schofield was upbeat about the outpouring of African and global support. ‘Crowdfunding is the next-gen solution to Africa’s development agenda,’ he said.

There’s no doubt that crowdfunding is a global phenomenon: in 2014, KPMG, Deloitte, Accenture and Ernst & Young named crowdfunding in the Top 10 Trends for 2015 as ‘key transformational and disruptive new technologies and business models’. The potential economic impact for Africa is highly significant. And according to Massolution, the global leader on research in crowdfunding, ‘No financial institution can be misinformed about crowdfunding, as it now provides both competitive and promising new opportunities to banks, investment houses and financial intermediaries.’

‘I truly believe this is no different from what happened to Henry Ford who consistently believed in bringing cars to the common man and achieved it,’ says Picken. ‘He changed the face of American history and revolutionised transportation. Why can we not do the same for property investment, investment at large and wealth?’

Compiled by Michelle Snaddon

THE NEXT-GEN SOLUTION With the recent launch of the African Crowdfunding Association (ACfA), it’s likely that we’ll see increased lobbying for crowdfunding legislation creation and reforms, along with a rising awareness from a new generation of forward-thinking investors

‘THERE’S A HUGE WEALTH GAP IN THE EMERGING WORLD AND

CROWDFUNDING IS A SOLUTION TO CLOSE THIS GAP’Scott Picken, CEO of Wealth Migrate and founding member of the African Crowdfunding Association

‘WE’RE CURRENTLY LOOKING FOR PROJECTS IN THREE COUNTRIES

– ZIMBABWE, BOTSWANA AND SOUTH AFRICA – AND WE INTEND TAKING THE CONCEPT INTO OTHER SOUTHERN AFRICAN COUNTRIES’Patrick Chella, cofounder and CEO of Realty Africa


UNEXPECTED CULPRIT DELAYING PROPERTY TRANSFERS

One of the most important consequences of deregistration is that the entity ceases to exist as a legal persona and therefore cannot enter into transactions, such as selling or buying property or registering a mortgage bond.

REINSTATEMENT The Companies Act does make provision for the reinstatement of entities in certain circumstances, including instances where the deregistration followed on non-submission of annual returns. This relief is, however, not without a sting in its tail as these applications are lengthy; in the case of entities owning immovable property, it takes some months. Any transaction that the entity seeks to register in the deeds offi ce is necessarily delayed as a result.

It is therefore strongly recommended that if you plan to sell a property that you own in an entity, you verify its status with CIPC as soon as possible. In the event that it is deregistered, appoint your conveyancers upfront to commence the re-registration process. You will thereby avoid some of the unpleasant hold-ups that are occasioned by the restoration of the selling entity.

Contact us at www.stbb.co.za or [email protected] for assistance in all aspects of your property transaction.

Cape Town 021 406 9100 | Claremont 021 673 4700 | Fish Hoek 021 784 1580Somerset Mall 021 850 6400 | Stellenbosch 021 001 1170 | Blouberg 021 521 4000

Tyger Valley 021 943 3800 | Menlyn 012 348 1682 | Illovo 011 219 6200Fourways 010 001 2632 | Centurion 012 001 1546 | Bedfordview 011 453 0577

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www.stbb.co.za

MORE THAN JUST THE PAPER WORK

MASTERING THE INTRICACIES OF HOME OWNERSHIP

Deregistration of close corporations and companies resulting from the failure to render annual returns, occurs frequently. Over the past 3 - 4 years, CIPC reported that it undertook the bulk deregistration of some 345 000 non-compliant entities.

Investec Specialist Bank, a division of Investec Bank Limited registration number 1969/004763/06. Investec Specialist Bank is committed to the Code of Banking Practice as regulated by the Ombudsman for Banking Services. Copies of the Code and the Ombudsman’s details are available on request or visit www.investec.co.za. A registered credit provider registration number NCRCP9. Investec Wealth & Investment, a division of Investec Securities Proprietary Limited. 1972/008905/07. Member of the JSE Equity, Equity Derivatives, Currency Derivatives, Bond Derivatives and Interest Rate Derivatives Markets. An authorised fi nancial services provider No.15886. A registered credit provider registration number NCRCP262. 24/7/365 Global Client Support Centre 0800 1Place (75223) Cape Town 021 416 1000 Durban 031 575 4000 Johannesburg 011 286 7000 Port Elizabeth 041 396 6700 Pretoria 012 427 8300 Stellenbosch and Winelands 021 809 0700.

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Banking and Investments, both locally and internationally.

As the best Private Bank and Wealth Manager in South Africa and the third largest Investment Manager in the UK, we are able to bring international Banking and Investments together around you. We give you access to our UK Private bank account and offshore investment portfolios, through the expertise of our specialist Investment Managers and Private Bankers.

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Real Estate February 2016 ( Issue 29 )