August 2014

has it all

cosmo city

HOUSINGSettlements

Infrastructure

the developers’ bank • city scapes • the beaumont

august 2014in Southern Africa

August 2014

August 2014

News Ed’s Column

N2 Expressway

Land Claims Tracked Electronically

House Prices Grow in Settlements

City’s Problem Property Owners

SA’s Downgrade Impacts on Housing Sector

Biometrics for Housing Waiting List

340 Houses for Belhar

68 ha Green Tech Hub

Nedbank Funds Rawson

Eskom’s Recapitalisation

HOUSING City Scapes – 424 Commissioner Street

Cosmo City Has It All – Creating Neighbourhoods

The Developers’ Bank

BRICKS & PAVING Laying It On The Line

BATHROOMS, KITCHENS & PLUMBING PE Project Chose Cobra

Plumbdrain Africa 2014 – Geberit On Tour

Shower Trends

PAINTS, COATINGS & SEALANTS TAL X-Calibur New Decorative Screeding

Future In Colour

ROOFING, CEILINGS, INSULATION & CLADDING Decorative Mouldings

Early Detection of Spalling

INFRASTRUCTURE & MIXED USE Cape Town Encourages Entrepreneurs

Langa Cultural Precinct

INDUSTRY BUZZ, EVENTS & PRODUCTS AfriSam Offers CPM Value Adds

Anti-theft Cable Protection

Builders’ African Footprint

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HOUSINGin Southern Africa

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August 2014

THE TEAM

ED’S NOTES

AVERAGE CIRCULATION(FIRST QUARTER 2014)

3768

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HOUSINGin Southern Africa

EDITORCarol Dalglish housing@crown.co.za

PUBLISHERJenny Warwick

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DESIGNColin Mazibuko

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Carol Dalglish • Editor

Ministerial housing….

Instead R345 million was spent by government on ministerial hous-ing. Admittedly, R250 million has

been attributed to President Jacob Zuma for Nkandla. But, according to Kenneth Mubu, the Democratic Alli-ance Shadow Minister of Public Works, R15 million was spent on a house in Cape Town for Rural Development Minister, Gugile Nkwinti. Almost R10,67 million was spent on upgrad-ing a house earmarked for the use of former deputy Transport Minister, Lydia Chikunga. While a further R5 million was allocated for the refur-bishment of the home for Minister of Agriculture, Forestry and Fisheries, Tina Joemat-Pettersson. While math has never been my strong point, I can, however use a calculator and it’s appalling as to how much has been spent on housing a handful of ministers.

Last year, R65 million was al-located for ministerial housing. An application was made in terms of the Promotion of Access to Information Act to access all related documen-tation says Mubu, but they are still waiting to hear the facts and figures. Sadly, Thulas Nxesi, Minister of Pub-lic Works, has refused to provide a breakdown of how this money was spent on 35 ministerial homes, as it would ‘compromise security’. The Democratic Alliance says that this is nothing more than an excuse to effectively limit proper oversight by Members of Parliament. Mubu con-cludes that it is time the Minister of Public Works learned that he cannot prevent South Africans from knowing the truth about wasteful expenditure in his department.

One wonders if any of Nxesi’s cabi-net colleagues, or former Ministers of Finance, Pravin Gordhan or Trevor Manuel, feel that these figures are distressing considering the state of the nation.

Shifting my thinking away from what I would have done with access to the government’s loot and get-ting back to reality, our August issue highlights great developments and entrepreneurial stories. Our cover

story on Cosmo City reflects how the City of Joburg’s pilot project has successfully integrated mixed income housing and developed a sense of community spirit in the urban project. More on that on page 16.

Gauteng Partnership Fund prop-erty entrepreneurs, Zora and Lazola Madikizela have developed quality in-ner city housing at 424 Commissioner Street. The recipients of the Entrepre-neur Empowerment Property Fund programme shared their story on the highlights and challenges in develop-ing their first residential rental block. Read more on page 12.

We interviewed Manie Annandale from Nedbank on the state of af-fordable housing. Read the popular developers’ banker’s comments on sector challenges, the FLISP subsidy, the shift from bonded stock to rental units and sector growth. More on page 18.

The City of Cape Town’s Problem Building Unit has prosecuted prop-erty owners who failed to rehabilitate their properties. Read page 6.

The Gauteng Department of Hu-man Settlements will introduce biometric technology to eliminate corruption and manipulation of the fully subsidised housing waiting list.

The price of houses in settle-ments has risen dramatically in Gugulethu, Soweto and Khayelit-sha. Read more about Lightstone’s report on page 5.

We welcome your feedback on our stories and hope you enjoy this issue.

How would you spend R345 million from government’s coffers? It costs government R110 000 for a fully subsidised RDP house. This amount could provide 3 136 fully subsidised houses and house 15 681 people on the human settlements housing waiting list.

August 2014

August 2014

News

The City of Cape Town has invest-ed almost R200 million in the N2 Express service for Mitchells

Plain and Khayelitsha. A further R110 million has been

earmarked for the state-of-the art low-floor buses in the 2014/15 fi-nancial year. This forms part of the city’s broader strategy of investing in infrastructure that will help drive economic growth and development, according to City Mayoral Committee Member for Transport, Brett Herron.

Buy-in from stakeholders and key players is crucial before construc-tion commences. The city adopted a similar approach with the roll-out of

N2 Expressway

The Restitution of Land Rights Amendment Act has given claimants five years to lodge

claims before June 30th 2019.According to Rural Development

and Land Reform Minister Gugile Nkwinti his department undertook a lengthy consultative process to the land claims initiative.

He said that communities and indi-viduals could now reclaim land from which they were forcibly removed, due to the 1913 Natives Land Act and other laws. Previously, the land act lodged applications between 1994

Land claims tracked electronically

and 1998. Although land claims were settled, a great number of people complained that they had not been aware of the process and had missed the initial lodgement window.

Nkwinti said that the Restitution of Land Rights programme was neces-sary to redress and reconcile nation building. This was in line with the National Development Plan’s goals of eliminating poverty and reducing inequality by 2030.  “Access to land is one of the fundamental elements to the transformation of the rural economy of our country, where the

Land claimants who missed the original land claim deadline have been granted an opportunity to lodge their claims, until 2019.

the MyCiTi service to Table View and Milnerton. It is important to note that the N2 Express service is a top-up ser-vice, implemented to add capacity to the current public transport services available to residential areas.

Delays in providing the city with buses has meant that International bus manufacturer, Volvo and South African partner, Busmark, will pro-vide the city with additional leased vehicles to ensure the service has the required capacity and ability to meet scheduling times.

“The extension of the MyCiTi service to our residents in Mitchells Plain and Khayelitsha is a milestone

that should be celebrated. It has been made possible through the cooperation of our residents as well as through collaboration between the city and key role players from the transport industry such as Codeta in Khayelitsha, Route 6 Taxi Association in Mitchells Plain and the Golden Arrow Bus Service (Gabs). Following months of complicated transitional negotiations as stipulated by the National Land Transport Act, the industry parties have formed a Joint Venture Vehicle Operating Company (VOC) and signed a three-year op-erating contract for the N2 Express service,” said Herron. ■

burden of land dispossession was mostly felt,” he said.

According to the Minister, there are 8 471 claims that were lodged prior to the 1998 cut-off period that have not been settled or resolved. These have been prioritised for settlement. It is illegal to submit a fraudulent claim, or fail to disclose other potential interested parties, said  Chief Land Claims Commissioner, Nomfundo Gobodo. There is no fee for lodging a land claim; it can be lodged electroni-cally or at government lodgement of-fices in the various provinces. Mobile units will service rural areas. Illegal activity can be reported on the gov-ernment anti-fraud hotline number 0800 701 701. ■

August 2014

News

The ‘formalisation’ of the property market in South Afr ica’s major informal settlements, particularly the legal registration of home ownership, is an on-going process.

House prices have grown at an unprecedented rate in Cape Town suburbs such

as Khayelitsha and Gugulethu. Reports from property analyst group, Lightstone, compare figures from the Deeds Office, in Khayelitsha, the average house price has escalated from R36 000 in 2008 to R134 000 in 2014.  In Gugu-lethu, house prices have climbed steadily from an average of R157 000 in 2008 to R492 000 in 2014.In Johannesburg, Soweto has also seen spectacular price increases, with some upmarket homes selling for between R2 million and R4 million. 

The average house price has risen from R181 000 in 2008 to R310 000 in 2014, representing an increase of 71,3% in six years.

In Gugulethu, the average house-hold income ranges from R9 000 to R15 000 a month; in Khayelit-sha it is from R1 500 to R3 000 a month; and in Soweto from R3 000 to R6 000 a month. Almost 75% to 80% of households retain their properties for

11 years. This means that trade in homes is not nearly as brisk and widespread as it is in the middle class suburbs.

Today, almost 45% of new buyers are between 18 and 35 years old, whereas previously this figure was below 10%. Almost 60% of buyers in middle class suburbs are between 30 to 45 years old.

More and more householders are realising that home ownership proves to be an asset. ■

House price growth in settlements

August 2014

The property owners, in Langa, Belhar and Parow have ignored compliance notices and efforts

by the city to assist with rehabilitat-ing the properties. The Problem Building Unit was established to iden-tify, control and manage dilapidated problem buildings.

Problem buildings are properties that contravene national building regulations; are overcrowded or in a deplorable state; are the sub-ject of numerous complaints from the public; are invaded by illegal squatters; or pose a serious health or safety risk in terms of national building regulations.

“Ideally, we would always opt for compliance versus legal action if given a choice, because while the litigation continues, the neighbours are still subjected to the problem. However, we cannot continue to sit idly by either.

We have a responsibility to those affected by the actions of errant property owners and so where we

City’s ‘problem’ property owners

have exhausted all other avenues, we will seek relief from the courts and I hope that this watershed moment is a wake-up call to other property owners to toe the line,” says the city’s Mayoral Committee Member for Safety and Security, JP Smith. 

Currently, the unit has 1 330 active cases under investigation.

One of the biggest challenges has been tracking down property owners who have absconded as the by-laws allow owners to make representa-tions before the City can declare a building to be a problem.

“We have numerous cases where property owners have stepped up and worked with us to get their buildings or land into an acceptable state. But there are others who simply refuse to act in spite of the misery they are causing to others,” says Smith.

Property owners found guilty in terms of the Problem Building By-law could face a fine of up to R300  000 or a three year prison sentence. In the case of continuous offences, an additional fine or imprisonment can be imposed for each day the offence is not rectified.

Owners are also liable for all the costs incurred in remedying any dam-age resulting from their offences. ■

News

A further drop in the gross do-mestic product growth rate or failure to reduce the high

current loan deficit could lead to a further downgrading of South Africa’s economic prospects by the interna-tional rating agencies.

Both Fitch and Standard & Poor have downgraded South Africa’s economic rating, according to Bill Rawson, Chairman of the Rawson Property Group.

The latest downgrade by Standard and Poor has seen them calculate South Africa’s GDP growth this year at 1,7% (0,2% below previous calcu-lations) and 3% for next year.  They have re-rated South Africa from BBB (stable negative) to BBB- (stable negative watch). This rating is below that of both Moody and Fitch.

SA’s downgrade impacts on housing sector

increasing desire for home owner-ship in the emerging middle class fell away due to negative international perception.”

“This will happen if the next rating is not more positive.” ■

“It is clear that an immediate response from the state, in particular the implementation of the National Development Plan, is now absolutely essential,” said Rawson.  “If I read the situation correctly right now there is relatively little chance of South Africa’s bond trade being affected. But, as regards the rest of the econ-omy, remedial action is essential.  A return to South Africa’s previous rating is possible within six months now that the mine strike situation is at last being brought to conclusion. However, the current Numsa strike will have an impact on the ratings.”

“The house price growth this year has been acceptable.  At ± 8% the market has regained a great deal of its confidence. It would be a pity if the current momentum and the

The City of Cape Town’s Problem Building Unit aims to prosecute three property owners for contravening health, safety, land planning and fire regulations.

August 2014

August 2014

Ga u te n g D e pa r t m e n t o f Human Settlements will shortly introduce biometric

technology, which will eliminate corruption and manipulation of the allocation of government fully subsidised houses.

The advanced technology will modernise the delivery of houses in the province and is already in use by other government departments such as Home Affairs, according to Human Settlements MEC, Jacob Mamabolo, adding that it will put an end to illegal rentals. Mamabolo said that the new administration would work with the Deeds Office to change the turnaround time and fast-track the issuing of title deeds to beneficiaries. He has plans to transform hostels into residen-tial family units and the redevel-opment plan will roll out across the province. ■

These comprise of 324 semi-detached units on 120m² stands and 16 units on 200m² stands.

The two bedroom units have been designed to enable residents to extend the houses in future.

Cape Town’s R34 million Belhar-Pentech housing project will commence shortly.

According to Mayoral Committee member for Human Settlements, Si-yabulela Mamkeli, a Project Steering Committee has been appointed to oversee the beneficiary list in consul-tation with representatives from the community. So far, 177 beneficiaries have been approved and more will be screened for approval according to the city’s allocation policy.

“ O n l y t h r o u g h t h i s k i n d o f

cooperation will we be able to make progress possible. We must never forget that we are building an integrated development that will provide quality housing and work opportunities,’ said Mamkeli.

The project has been designed to provide a pedestrian-friendly landscaped environment that incorporates parks, public open space, play areas and pathways. ■

News

Irrespective of the current strikes and challenges, the property market continues to grow, says Bruce Swain, Managing Director of Leapfrog Property Group.

data, almost 54,9% of the population own their own home, apartment or townhouse, this has increased from 52,9% in 2012. “In essence, the data reveals that more South Africans now live in properly built homes than ever before, indicating that the standard

of living has improved and that the property market has grown,” says Swain. The FNB Estate Agent Survey for the 2nd quarter of 2014 reports that, despite the interest rate hike in January, residential demand contin-ues to be driven by first time buyers. ■

340 houses for Belhar

Housing demand increases

“Everyone needs a place to live - regardless of how the economy is performing,” says Swain.

Data from Statistics SA’s General Household Survey 2013 shows a more positive picture at least in terms of housing. According to the

Biometrics for housing waiting list

August 2014

News

A wind tower factory in Atlantis is being built for GRI Wind Steel South Africa, a wholly owned

subsidiary of Spanish-based energy group Gestamp Renewable Industries (GRI), which currently produces 1 200 wind towers each year at its facilities worldwide.The new wind tower factory spans 14 683m² and is due for completion in October 2014, according to the city’s Executive Deputy Mayor, Ian Neilson. “We are calling on our partners in the green technology sector to con-sider investing in Atlantis so that we can work together. The city aims to transform the 68 ha site into a green technology manufacturing cluster. A development facilitation team

has been es-tablished to fast-track investments and to assist poten-tial investors. With almost 50% of the Atlantis population unemployed, we have to step-up our efforts to enable job cre-ation through increased direct investment,” says Neilson. GRI’s plant will generate more than 200 jobs and most employees are from the surrounding area.Interest from local and foreign

investors in the green technol-o g y h u b i s

growing.  In line with its

aim of creating an enabling environment for

investment to drive job creation, the city is hoping

investors will increasingly choose Cape Town and the Western Cape as the top investment destination in South Africa, says Neilson. ■  

68 ha green tech hubThe City of Cape Town’s quick access-to-land programme for green industries and the Atlantis Investment Incentive Scheme are already unlocking opportunities in this impoverished area.

August 2014

News

The most recent, The Beau-mont, is a 179 unit residential development, located on the

southern edge of the Claremont central business district. The R250 million project is due for completion in February 2015.

“The Beaumont development is a continuation of the successful work-ing relationship between Nedbank and the Rawson Group, and demon-strates our passion for enabling the vision of our long-term clients,” says Richard Thomas, Regional Execu-tive at Nedbank Corporate Property Finance, Cape.

The Beaumont’s sister develop-ments: The Rondebosch; Rondebosch Oaks Phases One and Two; and River Song, also located in Rondebosch, have all been funded by Nedbank.

Founded in 1982, Rawson De-velopers, a division of the Rawson Property Group‚ has built and suc-cessfully launched more than 3 000 homes over 20 years across more than 90 different developments and has collaborated with Nedbank Cor-porate Property Finance on a number of them.

“ W h e n T h e B e a u m o n t w a s launched in December 2012, more than 50% of the apartments were sold out within two and a half weeks,” says

Carl Nortje from Rawson Develop-ments and the demand, according to Nortje, has not abated. “We estimate that apartments in The Beaumont have already appreciated by 15%. He suggests that by the end of 2015, they could increase a further 5%.

The Rondebosch Oaks uptake ex-ceeded all expectations when it was launched in February 2007. Phase One of the 150 sectional title unit de-velopment sold out in 72 hours, Phase Two, 106 one-bedroom units, proved equally successful with 71 units sell-ing within six days of the launch. The fourth development funded by Nedbank, River Song, was completed in May 2013, five months ahead of schedule. The development, located within 5 km of Cape Town city centre, is home to a number of educational institutions and has the irresistible vi-brancy of a student village. The influx of new students annually has ensured housing demand and rental yields despite shaky economic conditions.

According to a report by indepen-dent real estate analytical agency, Lightstone, average values of section-

al scheme properties in Rondebosch in 2004 were R435 000, increasing to a value of R928 000 in 2010.

Rental demand now outstrips supply in the area and yields of 7% are easily achieved from the day the first tenant takes occupation. These factors, together with the favourable pricing that the Rawson’s develop-ments offer, have contributed to their significant success over the years.

On completion of The Beaumont, the group has two other develop-ments in the pipeline - a 79 unit apart-ment block on Main Road, and the other Rondebosch Oval, a residential estate with 41 houses rolling out in late 2015 or early 2016.

“Given the substantial returns that these developments have yielded, coupled with the continued demand for such properties in Cape Town’s southern suburbs, Nedbank is proud to have enabled opportunities for Rawson. The developers are invested in the region and have consistently delivered quality residential de-velopments at competitive prices,” concludes Thomas. ■

Nedbank funds Rawson

Nedbank Corporate Property Finance has funded a string of developments for the Rawson Property Group.

August 2014

News

Michael said that government diagnosed  the problem but failed to identify the right

solution.“Reform has to be directed at

transforming the electricity sec-tor.  With Eskom having squan-dered a government guarantee of R350 billion, a further government

Eskom’s recapitalisation

guarantee or cash injection will amount to more wasteful expendi-ture.”  According to Michael, these include: the state utility has a culture of poor financial management and disregard for South Africans accord-ing to Michael.

These include: The construction of the Medupi power project has been mismanaged and delayed for three years, with costs increasing from the initial R90 million to R150 million. In 2012, Eskom executives were awarded ‘performance bonuses’ of R31 million - despite the utility’s failure to deliver cheap and stable power to South Africans.

Earlier this year, the national en-ergy supplier proposed a R500 million

According to Natasha Michael, DA Shadow Minister of Public Enterprises, the proposed Eskom recapitalisation has been flaunted as a move towards addressing energy problems.

headquarters upgrade, while seeking R50 billion from government to ease its cash flow.  

The DA believes that real gains in South Africa’s energy crisis could be addressed by partial privatisation of the state owned monopoly; the creation of Transmission Service Operators that are entrusted with en-ergy modelling, and procurement of energy from Eskom and independent power producers will foster a com-petitive environment that promotes energy efficiency and cost reduction.

“The DA will continue to resist any attempts byEskom to increase electricity tariffs through the National Energy Regulator,” concluded Michael. ■

August 2014

Housing

Joburg’s ever-changing city

landscape has pockets of well run,

vibey, cultural precincts such

as Newtown, End Street and

Maboneng, which offer

residential, retail and commercial

opportunities.

cityan exciting, smart location with the unmistakable Commissioner Street fire station tower only a block away. It offers 31 two bedroom 62 m² units, four bachelor apartments, three street-level retail stores 80 m² each: a graphic design studio, clothing boutique, a college counselling centre and the Madikizela’s offices.

Lazola has a rich, broad back-ground. He started out as a lawyer working at Anglo American in labour relations; then moved to Murray and Roberts in human resources, training and operations; before joining Mc-Carthy’s management team to handle corporate marketing and empower-ment issues, and then moved on to Bidvest as a board member.

He says that he dabbled in prop-erty and student accommodation at

the University of Johannesburg. “I have a passion for property and to grow the company’s portfolio and property is a decent investment.” He heard about the Gauteng Partnership Fund’s entrepreneur programme through the media, but it was his wife, Zora, who initiated and drove the project. She identified the residential block almost 18 months ago. The project’s success is due to the team of architects, structural and electrical engineers and the quantity surveyor, who says Lazola, was almost glued to his leg as the key is to control costs. “That is,” he says, “how you make sound decisions around a project.”

The building was formerly a ware-house and converting the property into residential units meant demol-ishing the dry walling and redesigning

Within walking dis-tance of the city’s eastern precinct at

Maboneng is a 2 000 m² property at 424 Commis-sioner Street. The newly refurbished residential and retail block, funded by the Gauteng Partnership

Fund (GPF) Entrepre-neur Empowerment Property Fund Pro-gramme (EEPF), show-cases Lazola and Zora Madikizela’s R12,1 million project.

T h e b r i g h t l y painted, ice green and white five sto-rey building stands out from 500 m as

August 2014

August 2014

Housing

city scapesthe interior. Lazola opted for brick and mortar walls, bathrooms in the two-bedroom units, open plan lounge and kitchen facilities, and showers in the smaller bachelor units. Although brick and mortar proved more ex-pensive than dry walling, the lower maintenance costs made them the better option. The refurbishment included prepaid meters, traditional geysers, tiled floors, glazing, built-in cupboards and baths equipped with shower attachments and sturdy wood panelled doors. The collaborative ef-fort between the quantity surveyor, contactor and the Madikizelas’ has paid off.

Rentals start at R3 900 for the larger apartments and R2 500 for bachelor units. This is in line with GPF’s mandate to fund affordable

rental stock in the city. A managing agent has already been appointed to facilitate rentals and occupancy.

Lazola had a team of GPF mentors that he could call on to assist with advice and expertise throughout the project. But, he says, “We worked with the engineering mentors in the initial phase and they suggested the professional teams we partnered with on the project.”

The clever and confident entrepre-neur says that the lessons he learned relate to the building plans. In future, he would do this more timeously as they hold up the process. As the de-veloper, it is important to cultivate relationships with the municipality, get to know the people, and be aware of the municipal compliance process. Sometimes, he believes, if you are a

nuisance you can get things done far quicker.

His advice to budding property entrepreneurs is simple if you don’t have a passion for property then don’t get into that space. It is not sexy, it is not like selling BMWs – you have to get your hands dirty and be a part of the pro-cess as a recipi-ent of the GPF programme.

He explains, “It’s key to take charge of the project since at the end of

August 2014

Lazola Madikizela

Continued on page 14 ▶

August 2014

Housing

of funding - the value of the property was more than the loan. Developers are required to hold the property for five years and then sell but if they do, the NHFC and GPF debt will be settled first. GPF offers a 15 to 20 year loan term. Rentals escalate in line with in-flation and the Consumer Price Index.

The fund’s pioneering work in-cludes offering new e n t r e p r e n e u r s a business plan frame-work on its website, help desk support and induction pro-cess and training programmes with GPF Mentors.

The GPF aims to fund sustainable e n te r p r i s e s a n d , although it offers a great deal of assis-tance, Vinolia says t h a t d e v e l o p e r s must demonstrate through the busi-

ness plan proposal that they can do it on their own. “It’s only once we have selected the applicant that we can capacitate them. They need to do their own research and market analysis. A common mistake that new entrepreneurs make is relying on the professionals to run the project. This is a big mistake, we needs a hands-on approach. Property sellers often take advantage of new entrants and this is something that GPF is trying to address. Before the deal is signed it has to be feasible and affordable.”

The fund’s in-house quantity sur-veyor and monitoring team oversee the project from start to completion. Development updates are required

before progress payments are made and post construction monitoring is undertaken to ensure the project is up and running. “The developers are required to submit financials on a quarterly basis for post investment monitoring purposes,” says Vinolia.

Currently the GPF is planning to bring new senior debt funders on board.

According to GPF Marketing and Communications Executive, Ismail Carr, the recent entrepreneur prop-erty seminar for new entrants into the residential sector held at the Johannesburg Country Club was oversubscribed. The GPF is currently conducting a number of face to face initiatives with potential property en-trepreneurs who are keen to provide rental and student accommodation in the affordable housing space.

The GPF aims to grow affordable housing units for the GAP housing market and provide rental options for those households earning less than R15 000 a month. Carr says that it is a myth that affordable housing is not profitable compared to other rental markets, there is much growth opportunity. In his view owing to the current economic climate, some people are more comfortable renting accommodation rather than buying.

“GPF has been set up to empower previously disadvantaged individuals (PDI) and those interested in starting in the property sector can come and talk to us,” says Carr.

The next property seminar event will be held on September 17 in Preto-ria. Diarise the date and find out more about the GPF and how to access funds to acquire and manage social and rental residential property. ■

‘Property sellers often take advantage of new

entrants and this is something that GPF is

trying to address.’

the day, the architect or engineer work for you and that relationship must never be confused. I have found that it’s necessary to take control and ownership from day one.”

Would he partner with GPF again? “Absolutely! It has been a fantastic ex-perience. There is no truer empower-ment fund in my opinion. It is fulfilling to have funders that trust and assist you to get the project off the ground. It is our responsibility to service our debt to the GPF, it must be our first commitment and this will pave the way for others to access funding.”

With construction completed a month ago, Lazola already has ten-ants and retail occupants. He expects to be fully tenanted by September and plans to grow his residential port-folio, identify another property and, of course, seek funding from GPF.How was the deal structured?

T h e t o t a l project cost was R 1 2 , 1 m i l l i o n , Madikizela con-tributed 2%, the GPF provided an interest free loan of R969 000 and an interest bear-ing loan of R3,4 million, or 28% and the National Housing Finance C o r p o r a t i o n (NHFC) provided 62% senior debt funding of R7,3 m i l l i o n . G P F ’s Acting Chief Investment Officer, Vinolia Mashiane explained that since the entrepreneur programme started three years ago 71 companies have been identified of which 32 compa-nies have secured projects and their projects are in different stages of development.

One of the biggest advantages of the programme is that entrepreneurs have access to interest free loans of up to R2 million. The GPF looks at cash flow and feasibility and projects must cater for householders earning below R15 000. The residential units must be located close to amenities, schools etc, the Madikizela project Loan To Value was 71%, at the time

Ismail Carr

August 2014

August 2014

August 2014

HousingHousingHousing

The project, undertaken by the city, province and stakeholders and managed by Basil Read

Developments (BDR), has become a benchmark for human settlements.

Driving around Cosmo City, it is clear that those residents who invested and built homes there have made huge financial gains and increased the value of their proper-ties exponentially; irrespective of whether the homes are located in the fully subsidised area, FLISP or bonded units.

Building on Basil Read’s flagship project, Savanna City, a R28,4 billion greenfield development 35 km south of Joburg’s CBD, is currently under-way and will roll out 18 000 houses.

The well established brand has re-branded and repositioned itself, and Housing in Southern Africa spoke to Basil Read Developments (BRD) CEO Yusuf Patel on what this means for the company.

Yusuf says that Basil Read Devel-opments was set up by Basil Read Pty Limited to oversee Cosmo City. Since then, the division has gained a huge amount of expertise and knowledge in delivering integrated settlements and towns, and getting it right. The division was initially headed up by Des Hughes, ably assisted by Brian Mulherron, and consultants. Earlier this year, Des moved on to become in-terim group CEO, and Yusuf took over Basil Read Developments and aims to build on the brand’s rich heritage. Developing multi-functional housing and creating neighbourhoods that

The R16 billion Cosmo City development was envisaged as a blueprint for human settlements nationally. The pilot project, on Joburg’s north western border on M a l i b o n gwe D r i ve , h a s successfully rolled out over 12 000 houses with fully subsidised, Gap market and upmarket residences in the same development.

August 2014

Cosmo city has it all

August 2014

Housing

nurture communities is the goal. “We have experience with large scale integrated developments and we will continue the trend at Savanna City. We also want to start looking at smaller scale projects, more densi-fied developments and sites located closer to the city.”

With the roll out of Savanna City, one wonders if BRD has the capacity to take on other projects but Yusuf explains, “We have the vision and the capability to drive towards certain solutions. Internally, we have struc-tured ourselves and have teams on each project. It took a long time to get Savannah City off the ground and currently the project team is located at the site office and will manage the development. Today, it is all about partnerships and this is what we try to do. The main thing we aim to achieve is to continue working with well es-tablished stakeholders and partners, and develop new partnerships and relationships with investors.”

With the backing of the Basil Read construction group, Yusuf says that BRD aims to attract pension funds, equity or institutional investors as there are huge opportunities for them in the affordable housing space.

“BRD could scale up small projects for institutional investors, who would have the certainty that we will man-age the development and deliver a good product that has the ability to generate a viable return and create a rental portfolio for the investor.”

A number of other types of projects are about to roll out, such as the Rolling Hills Estate near Dullstroom - which will offer over 1 200 lifestyle homes including freehold stands, sectional title units and a retirement village in the 800 ha estate - as well as Malibongwe Ridge and other devel-opments around Cosmo City.

BRD’s project at Klipriver Business Park, south of Johannesburg may seem a departure from the company’s traditional business, however accord-ing to Yusuf, the land was more suited for a business park than residential. The well located land is close to the N1 and N3 national highways and

16 sites in the business park have already been sold. A number of in-ternational companies are keen to move from Midrand and Boksburg to less congested areas.

Based on the success of Cosmo City, BDR has established a market north of the border and has designed a 15 ha mixed use development. The Munis Square development in Lon-gacres, is approximately 4km from the city centre of Lusaka.

The company has also recently completed a design and feasibility study for Akuminigo Housing Estate for Shelter Afrique, a 60 ha site 7 km from Kigail’s CBD. In Lusaka, BDR completed a feasibility and design study for a mixed affordable income neighbourhood at Marian Shrine, owned by the Archdiocese of Lusaka.

Although BRD’s main focus re-mains Gauteng, Yusuf will consider opportunities across the country on a project by project basis.

With the aim of being the ‘Devel-opment Manager of Choice’, Yusuf says, “that part of the rebranding is packaging our services better and looking more carefully at the value we add for clients and investors through our services and offerings. Urban management services include: con-ceptualising, investigating, detailed urban plans on how to run a town, nature and scale, expenses, services, emergency measures, managing by-laws, operations maintenance, rates and tax collection plan. We undertake all the institutional arrangements and are capable of handling the full range of services effectively, offering a one

stop solution.” He concludes, “There is a special type of expertise involved in making mixed integrated projects work. We create neighbourhoods and can assist with integrating cities. Smaller projects will benefit from our experience in the large scale market. Housing cannot be built in isolation. It is about creating neighbourhoods - places that are safe, secure and close to services you come home too.” ■

Cosmo city has it allcreating neighbourhoods

Yusuf Patel

August 2014

August 2014

HousingHousing

The developers’ bankNedbank’s Affordable Housing Development Finance unit led by Manie Annandale has a reputation as the preferred funder for affordable housing developers, tailor making each deal to suit the feasibility of each new development.

As market leader in this niche sector, their hands-on-ap-proach has seen the business

unit expand to build on the momen-tum in new business growth, which coincides with the renewed focus of Government and Private sector to ac-celerate the delivery of suitable new Affordable Housing.

The affable banker makes things happen and he is proud of Nedbank’s position as market leader in this sec-tor and Property Finance in general.

He has plans to further grow this business unit to make it more sustainable and the unit is well on track to achieve this by the end of 2014.

Housing in Southern Africa had a recent face-to-face chat with Manie Annandale.

Q: W h a t m a ke s N e d ba n k different from the other big commercial banks?

A: Our Affordable Housing Develop-ment funding unit has a specialised approach focusing only on this sector. This allows us to shape strategy and resources around a specific niche industry without the distraction of various other products.

We are proud of the fact that we specialise in affordable housing de-velopment finance and this approach is strengthened by support and net-work of the broader Property Finance Division within Nedbank Corporate Property Finance. We have a great re-lationship with our credit authorities who have a distinct understanding of affordable housing and what type of variables to consider when consider-

August 2014

HousingHousing

ing new loans. All of this counts in our favour in order to achieve the busi-ness growth that we are after.

Q: What projects are you currently involved in?

A: There is currently a strong ten-dency towards rental developments. There is a growing market of consum-ers who either cannot afford suitable home loans or qualify for them. An example of this is the recent funding to global equity investor, Interna-tional Housing Solutions, to acquire residential developments in thriving urban economic nodes across South Africa worth over R500 million.

Our strategy is to stick with devel-opers who also specialise and have a track record in this industry. We see a growing trend with our developer clients for structuring their business to also take advantage of the rental growth in addition to their traditional sell out models. This gives them the option to hold stock and again ap-proach the market for selling when market conditions are more favorable for this approach.

Q: What is the size of the affordable housing book and how many proj-ects will be rolled out in 2014/15?

A: Our economy is on a precipice and any business that can improve on last year’s results, in my opinion, is doing very well. We have grown significantly since last year so on that basis we are doing very well and expect to again this year disburse more than R1 billion in funding for new develop-ments.

Our Affordable Housing develop-ment book size varies according to the constant movement of sales repaying sell out loans, but we still expect our book size to exceed R2 billion by year end.

Q: What are your plans for 2014/15?

A: The pipeline for new disburse-ments (pay out on new loans) will in all likelihood exceed R1 billion by end 2014. With consumers feeling financial pressure from all sorts of

angles, it is important that projects effectively add to the balance sheet and also ensure that the project pipeline continues to ‘have legs’ and future growth. We need to ensure that we meet our internal targets and grow our book in line with the increased activity of our key developer clients.

Taking this into regard, growth fig-ures exceeding 20% is quite possible in 2014/15. We are still a relatively small business, but have recently expanded with more hands on deck, which will ensure that we maintain the good reputation we have and continue to grow. It is important for us to remain the preferred funder of our key clients, but this will only remain so if our service levels can be maintained despite the increased business activity.

Q: In terms of geographic regions, where have you invested and can you expand on this?

A: Gauteng is the powerhouse and if you are not doing well in Gauteng, then you have to ask yourself some serious questions. In Midrand from the N1 north from Allandale, Waterfall Estate through to Centurion, there are pockets of land for affordable rental and selling stock. Some projects have already achieved strong sales such as in Clayville, Steyn City and Northern Farms.

Our unit already has a good foot-print in the Western Cape. We are also adding new developments in the Eastern Cape - Port Elizabeth and East London as well as looking at ways to fund social housing institutions that are keen to add private rental stock to their portfolios. These track record social housing developers al-ready have strong in-house capacity to manage rentals and can therefore optimise their existing infrastructure. Growth in KwaZulu-Natal is a bit more restricted, as large landholdings are tightly held with only a few owners of suitable tracts of land close to urban development. Our focus will remain on urban areas where there is the greatest need for affordable housing. We believe we can make an impact on satisfying this demand with our

developer clients who see the same opportunity of growth. Q: Where will Nedbank’s growth in the affordable housing sector come from?

A: As mentioned earlier, we believe that affordable rental demand will continue to be the strongest source of new business by 2015, which means that our own book will start to reflect this rental (longer term loan) compo-nent as well.

Q: How important will Innovative Building Technologies become in funding developments?

A: The SANS 10400 building code is already making a big impact on devel-opers who have to comply with new developments. We want to make sure that together with our developers we introduce energy efficient systems. We are currently looking at some pilot projects in the Western Cape to formulate our future approach.

Nedbank plans to bring together our developers with specialised green funders such as the IDC, where we can capitalise on their expertise and appetite to provide focused funding for the cost that green interventions might add to new projects. This will include sharing ideas spanning the whole prism, from the way the de-velopment site has been orientated towards the sun, solar geysers, sourc-ing of bricks etc. We want to play an active role and bring green funding to the developers.

Q: What is the biggest challenge in funding housing projects?

A: Funding big projects that roll out over a period of three years or lon-ger. The constraints of the current economic outlook makes it difficult to forecast what the market will look like by the time new projects are out of the ground and if there will be demand supported by consumer affordability. This means that the project will have to be robust enough in terms of price, location and quality to withstand such variables.

August 2014Continued on page 20 ▶

The developers’ bank

August 2014

Housing

The developers’ bank - affordable housingQ: Do you need a political champion if you are a developer?

A: In my opinion, I would say that you need local and provincial authorities to have a focused champion to fast track land release programmes. This focus will consolidate land holding structures within government where the link between local and provincial government can unlock or speed up such programmes. It follows that the term ‘political champion’ can be better described along the lines of a ‘Strategic Property Asset Manager’.

This consolidated approach can be an advantage in assisting developers with local municipalities or facilitat-ing a town planning process that is seamless.

Q: In terms of the banking sector codes – what will Nedbank be ex-pected to roll out in the next few years?

A: For our planning purposes, Af-fordable Housing Development Fi-nance aims at disbursing more than R1 billion towards new projects this year and to exceed a book size of R3 billion within the next two years.

I think we will achieve this growth quicker if the current pipeline is any indication, but we have to take into regard the lag in town planning for greenfield developments.

The Financial Sector Code has various components to the overall contribution of the banking sector, but we are optimistic that we can meet our development funding por-tion of such measurement.

The number of units will depend on the unit selling or rental amount, as this could vary between R400 000 to R600 000 or R1 500 to R5 500 per month rentals. Based on current pipeline, we will be able to finance

new developments that will yield more than 4 000 opportunities in 2014 and hope to exceed that in 2015.

Q: Has the FLISP subsidy made an impact in the affordable sector?

A: Yes, I think to some extent, but it has been limited. The subsidy only applies to homes of R250 000 or less and very few developments can roll out houses selling at less than R400  000 if the land component comes in at market related prices.

The FLISP in principle is a good idea, but can only start to make a difference if cheaper land becomes available, otherwise the subsidy becomes irrelevant. It now becomes even more important that govern-ment owned land be released for af-fordable and GAP housing rather than being so focused on fully subsidised housing.

So my sense is that the subsidy be adjusted to a more realistic amount and with land release programmes can unlock new housing stock in the lower price ranges.

Q: What is the key in putting a great deal together?

A: You need to know your business, you need relationship managers that understand what you are doing and can talk the same language as your developer. A good deal is one that works from the start in pure practi-cal terms.

You need to understand the as-sumptions that are made by the developer when a new deal comes across your desk. For instance, a lot is always said about demand in an area, but if that demand is not matched with consumer affordability, it can be a wrong assumption in assessing the viability of a new development.

Q: What advice would you offer to a new developer?

A: Join forces with a developer who has a track record and capital. De-velopers must have their own capital to make a development work. In that way the new developer can build up a track record. Building less than 20 houses or units in an upmarket suburb does not mean that you can roll out volume affordable housing in areas such as Soshanguve, Mitchells Plain, Soweto or Tembisa.

Q: What do you think the interest rates will be at the end of 2014?

A: Nedbank’s view is that interest rates will remain flat for the remain-der of the year with high potential of upward incremental increases. We have just seen an adjustment of 25 base points and there could be another upward increase before year end.

Q: Conclusion?

A: We remain positive about the momentum in the affordable hous-ing sector. It is very encouraging to see that key industry stakeholders and developers like Valumax, Cos-mopolitan, IHS, Power Construction, Asla and others are also rolling out sizeable developments where hous-ing opportunities are exceeding 200 to 300 units per development/phase.

It is easy to be positive if you link your strategy to the pipeline and growth of top developers.

We are making it less daunting for ourselves as lenders by supporting top developers who have survived previous cycles of economic down-turns.

They have been through it and know how to deal with it. ■

August 2014

August 2014July 2014July 2014

Brick Easy, a unique patented bricklaying device developed for the South Africa construc-

tion sector, increases productivity and enhances the performance of semi skilled and skilled brick laying on site.

The professional brick laying steel frame and mortar box system pro-duces perfectly precisely laid bricks. The sliding steel frame system can be lengthened and heightened and erected to suit project requirements.

The patented steel frame acts as an anchor and leveler for the bricks being placed against it, guaranteeing the wall is straight.

The patented mortar box profile fits and slides parallel to the steel frame. The mortar box profile effi-ciently distributes the mortar evenly on the surface as the box slides along the profile. This prepares the mortar base for the brick layer to place the bricks on top. When each section of bricks has been placed in position,

Lay it on the line

the mortar box profile is then continu-ally refilled with mortar. This offers a quick, easy and efficient surface preparation system. As each level of brick has been completed, the steel frame is then raised easily and effi-ciently by rotating the level on either side of the frame for the next level of bricks to be laid.

The innovative system was devel-oped by Giuseppe Dalla Torre of Brick Easy. He says that a team of three unskilled workers can lay an aver-age of 500 bricks per hour using this system. It can be used on sites any-where in the country and will ensure

a professional finish. This product can be utilised by semi or skilled workers to fast track production and ensure performance. A demonstration of the product shows the delivery of bricks to a team of four semi skilled workers and the erection of a 3m high x 450 mm x 450 mm wall completed in one hour using the product.

To view a video demonstration of the product visit www.crown.co.za and click on Housing in Southern Africa to see the Brick Easy video.

For further information contact Brick Easy on 083 305 5191 or email: info@brickeasy.co.za ■

Bricks & Paving

August 2014

Bathrooms, Kitchens & Plumbing

PE projects chose Cobra

The upgrades to St George’s Hospital included the addition of a R25 million neo-natal and

paediatric intensive care facility. Co-bra’s mixers proved an ideal choice for the sterile environment because of the antimicrobial copper fittings.

According to the US Environmen-tal Protection Agency, antimicrobial copper fittings are ‘the world’s most effective antimicrobial touch surface material’, as tested in global clinical trials in a variety of ward types, in-cluding intensive care.

In addition to the new ICU unit, staff ablutions and kitchen facilities at the hospital were also renovated. Cobra’s Taryn skin mixers, Metsi bib tap, Carina stop tap and Strata raised basin mixers were used. The taps are all from Cobra’s Classic collection, while the Strata pillar mixers come from the chic Style range. The mixers are robust and feature temperature and flow control cartridges that re-strict water flow to 6l/min.

The Life Mercantile Hospital re-cently opened its renovated surgical ward, which can now accommodate more patients undergoing surgical procedures.

Cobra supplied products worth R74 782 to Life St George’s Hospital and a further R42 6673 of products to Life Mercantile Hospital.

The leading bathroom brand also provided fixtures and fittings at Port Elizabeth’s new Waterfront Business Park at Humerail. The upmarket office complex has already attracted a num-ber of premium grade office tenants. Several Cobra products were installed in the complex during phase one of building, including Eclipse basins; close couple toilets; shower arms, shower heads and traps; and Cobra Dura bath/shower mixers, which

Cobra’s medical range of elbow action taps and mixers once again proved to be just what the doctor ordered as Life Healthcare discovered when it overhauled units at Life St George’s Hospital and Life Mercantile Hospital in the Eastern Cape.

boast strong angular lines, clean styl-ing and a contemporary minimalistic look inspired by global design trends. Cobra supplied R60 841 worth of products. With construction of Phase Two underway Cobra products have been specified.

Johannesburg-based investment bank, Investec specified electronic taps and architect Michael Jack of Richter Architects chose Cobra’s Co-bratron range of no-touch electronic mixers. “These taps offer both energy and water saving benefits, and pro-vide a hygienic solution for corporate restroom facilities,” explains Jack. He consistently specifies Cobra for its reliability and quality.

Cobra’s electronic taps and mixers rely on highly accurate sensors to

deliver water only when activated. This reduces water wastage, ensures hygienic operations and offers clients increased flexibility, as the sensors can be preset to intuitively deliver just enough water for a required function.

In addition to Cobratron pillar basin mixers, Dura bath/shower mixers, Arco basins, Modena close couple toilets, Le mans urinals and Marseille wall-hung toilets were installed in the Investec restrooms, worth R177 000. ■

August 2014

Bathrooms, Kitchens & Plumbing

The globally renowned sanitary and HVAC industries brand will be hosting delegates at Plumbd-

rain Africa 2014 exhibition at the Expo Centre, at Nasrec on August 20 to 23 in Johannesburg.

Visitors can experience the latest innovations, cutting-edge products and solutions from Geberit. The in-novative Geberit DuoFresh cistern purifies the air, the recently launched Omega concealed cistern offers the latest piping technology and the sleek shower element will be on display. Visitors can view Geberit’s com-prehensive range of products and

Plumbdrain Africa 2014M e et i n n o va t i o n s a n i ta r y and piping system company, Geberit Southern Africa, and explore the revamped ‘Geberit On Tour’ vehicle.

solutions. The exhibition offers speci-fiers, plumbers and installers the opportunity to improve their knowl-edge and expertise by engaging and sharing know-how with technical consultants.

Plumbdrain Africa encompasses all aspects of water conveyance and water conservation, with exhibits showcasing commercial, industrial and domestic plumbing, drainage, sewerage and pipe works, includ-ing water supply, grey and black water management and rainwater

harvesting. The exhibition showcases new products and services in addition to a strong focus on the technol-ogy, engineering and educational aspects of plumbing and drainage. ■

August 2014

Bathrooms, Kitchen & Plumbing

Current shower design trends are functional and beautiful. Individuality is key, with more

and more consumers taking great care to customise details from the shower rose and shower faucets to drain, mosaics, tiles, splash-backs and shower doors, to create their own unique sense of style.

As homeowners’ looks for ways to escape into a personal space, con-sumers opt for double showers, wider openings and seamless glass shower partitions. Glass allows 100% of all natural light to flood the space mak-ing bathrooms look and feel larger. Free-standing shower columns are also gaining traction. Sophisticated frameless or semi-frameless shower enclosures or doors are very popular, says Jasmin.

“They are perfect if you want to make the space more elegant and if you want longevity, versatility and class.

Many shower rooms are equipped with a built-in bench running along one of the shower walls, which makes the space more functional and easier to use. Being able to sit down in the shower is a functional luxury and worth investing in, according to Jas-min.Rimless showers have no lip di-viding the shower space with the floor running to the rest of the bathroom. Instead, the shower floor slopes downwards toward the drain to

ensure the water from the shower ends up in the drain and not flooding the entire bathroom space. “Drainage systems have been revolutionised. Expand-A-Drain, for example, is an excellent, effective drainage solution. It comprises an expanded solid grid-type cover that runs along one side of the shower to ensure maximum drainage without blocking or clog-ging. The drain is available in a variety of designs and sizes.”  Heads up: showerhead design contin-ues to play a large part in influencing the overall shower look and feel.

There is a wide variety of show-erheads from soft sprays to power-ful massage jets available. Body sprays, eco-friendly low flow, hand-held, multiple showerheads, hydro-therapy and therapeutic lights are trending. Digitally controlled rain showerheads spray configurations and chromatherapy are a few of the latest and most coveted mechanical

advancements in showerhead tech-nology. Shower floors and walls are a combination of ceramic or porce-lain wall tiles while mosaics on the shower floor remain a popular and practical choice. The most common and economical material for bath-room showers and floors remain tiles.Current favourites include natural or manufactured stone, glass block, glass tile, porcelain and acrylic.

Changing the scale of the tiles will add interest to the walls and floors, notes Jasmin. “Oversized porcelain tiles with minimum grouting are popular. Lustrolite subway tiles that are used on the walls and floors offer a high gloss acrylic sheet for indoor residential decorative paneling. “Lustrolite is available in a variety of contemporary colours that are hardy, chip, scratch and crack proof and fade-proof.”

For further information go to www.bathroom.co.za ■

Showers are f inally in the spotlight and an important aspect in any modern bathroom design. Jasmin Kranevelt from Bathroom Bizarre offers an overview on some of the current hottest shower design trends.

Shower trends

August 2014

Paints, Coatings & Sealants

TAL X-Calibur X-Tech SuperFlow was developed in collaboration with TAL and Rock Solid Floor-

ing and manufactured locally, under license from  X-Calibur Construction Chemistry Incorporated.

The cement based, self-smooth-ing, decorative screed is available in a wide range of colours. The system has been designed to produce a hard wearing and seamless decorative floor surface suitable for interior applications.

The product is rapid-setting and shrinkage compensated. It allows for fast track installation and therefore reduces labour cost; it is also casein and protein free, provides a seamless finish and is easy to clean.

Tests conducted by the South Af-rican Bureau of Standards show that TAL X-Calibur X-Tech SuperFlow has a compressive strength in excess of 25 MPa at 28d.

SABS is conducting a wide range of performance tests to give customers confidence in this state–of-the-art product. It can be applied to concrete substrates and the surface can be subjected to light foot traffic after four hours and normal traffic after 30 hours.

Once the product is cured, it must be lightly scoured using a black scour-ing pad on a polishing machine. This will ensure that the floor is smooth and free from curing residue.

A high-quality penetrating wax sealer is then applied in two stages. The sealer is applied directly to the spreader and rubbed into the floor.

TAL X-Calibur has developed a decorative screed suitable as a flooring solution for the residential, commercial and retail markets.

After the first application, a white polishing pad is used on the polishing machine to buff up the sealer.

Once complete, a second applica-tion of the sealer is then applied and left to dry. No further polishing is required at this point. The wax sealer penetrates the concrete and therefore does not create a synthetic look but instead a natural finish.

TAL provides quality construction solutions from concept to completion and its screed and cement range pro-duce smooth, high strength and hard wearing floor surfaces.

TAL’s products are manufactured

locally and are compatible with South Africa’s climate conditions.

X-Calibur Construction Chemis-try forms part of the TAL building solutions range and consists of construction product solutions with an emphasis on flooring and surface treatments, concrete repair and pro-tection as well as screeds, anchor grouting and fixings, sealers and coat-ings, floor hardening compounds and waterproofing systems.

For further information con-tact TAL Technical Advisory Ser-vice on 0860 000 (TAL) 825 or visit www.x-calibur.co.za ■

TAL X-Calibur new decorative screeding

August 2014

Paints, Coatings & Sealants

Great strides have been made in technological re-search and development

that will continue Plascon’s 120-year history as a market leader of quality performance paint formulations.

Plascon trade customers and consumers can look forward to ex-tensions on previous 7-year qual-ity guarantees. Plascon’s Premium Plus Range now offers landmark 15 and 12-year guarantees on Interior and Exterior coatings, respectively.

To make choosing colours easi-er, Plascon has developed the new Plascon Inspired Colour II stand with the new Essential Collection of Colours, as well as colour cards and handy guides.

True Colour Roof has been added to the True Colour stable of superior, pure acrylic paints, which is available in seven colours. The product protects against the weather, UV, fade, chalking and fungi resistant and offers an 8-year guarantee. The new Woodcare Core range comprises an Exterior Varnish, Preservative and Deck sealer and an interior range, con-sisting of a superior interior Ultra varnish and Sanding Sealer.

In the Professional category,

Plascon’s trade customers are set to benefit from the relaunch of the Plas-con Professional Marocca Range, with an even broader variety of textures and colours. A new and improved formula for Plascon Elastoshield - Fibre Guard technology - means that Elastoshield eliminates all hairline cracks with its interlocking microfibre strength and flexibility. Suitable for all weather conditions, it has a 15-year life expectancy.

In addition to these products, Plascon will continue its longstand-ing history of being first to market with advanced coatings, by adding new technological advances to sev-eral of its existing premium products. Plascon’s team of chemists continu-ally research and test new ideas and develop trends.

The Plascon Premium Plus range boasts several advances, such as the inclusion of Silver Protect in Plascon Double Velvet and Plascon Cashmere. Silver Protect enhances the stain resistance and washability of these coatings. Plascon Velvaglo’s satin sheen coating has always been self-undercoating, but now it can truly be classified as direct-to-substrate as it is also self-priming - another innova-tion that saves the end-user time, effort and money.

Plascon Wall & All renowned as a weather- and dirt-resistant paint comes formulated with a unique blend of hard and soft 100% acrylic polymers and a fungicide to ensure enhanced performance in dirt resis-tance, water vapour permeability and film elasticity and performance, plus a 12-year guarantee for an exterior coating.

Plascon Micatex has truly stood the test of time. This coating just got tougher, with the introduction of a new technology to prevent fungal growth, staining and damage associ-ated with fungal attack.

Since the company’s inception in 1889, Plascon has established itself as market leader, a position and reputation that has been cemented by an impressive track-record of ongoing firsts. This year’s roadshow offers further evidence of the com-pany’s commitment to improvement and advancement for the sake of its customers.

Plascon’s dedicated research and development has resulted in a bouquet of outstanding new prod-ucts and improvements that deliver rewarding, groundbreaking results. This major technological progress means that Plascon has raised the bar, yet again! ■

Plascon brings an exciting

array of new and advanced

coatings products to

market.

August 2014

August 2014

Roofing, Ceilings, Insulation & Cladding

The Col Timbers range of mould-ings from Swartland can be used to create a sense of style

or simply add a subtle decorative touch to any interior.

“The impact that well chosen and professionally installed mouldings can have on a space is often under-estimated – if well executed, they can really transform a space from mundane and boring into a truly upmarket finished space,” says Miller.

Today, decorative mouldings are made from a variety of materials, including medium density fibreboard (MDF) and polystyrene, but the best quality ones are made from genuine solid wood.

Miller says that solid timber qual-ity decorative mouldings may be a bit more expensive but prove cost effective in the long term. Hardwood mouldings can be stained or var-nished and offer a great warm timber finish with the natural grain showing through.

He recommends a less expensive solid pine timber moulding if it is going to be painted as the opaque colour will hide the knots in the wood.

• There are a number of different types of mouldings:

• The cornice - most commonly re-ferred to as crown moulding is used to fill the gap between the wall and the ceiling. The width of a cornice can vary, depending on the size of the room, ceiling height and décor.

• The picture rail - runs horizontally along the wall, parallel to the cor-nice. It should be installed at the same height as the top of the door. The narrow moulding was tradi-tionally used for pictures. Today, picture rails tend to be valued more for their aesthetic appeal than their traditional function.

• The dado rail - is a moulding that is fixed horizontally along a wall about 75 cm from the floor. Aesthetically, it divides the wall

The installation of decorative mouldings can enhance architectural detail, according to Dylan Miller from Swartland, a leading manufacture of wooden windows and doors.

into two parts, the top and the bottom. The rail was used to prevent damage to walls from chairs or furniture being pushed against them, and is still a popular window style in French bistros.

• The architrave - is essentially a moulded frame used to sur-round a doorway, window, arch or fireplace. Achitraves can create dramatic horizontal or vertical features.

• The plinth block - is a decora-tive rectangular block of wood that supports an architrave or provides additional stability.

• The skirting - or baseboard is installed at the base of the wall and prevents the wall from b e i n g d a m a ge d b y f l o o r cleaning equipment.

Swartland kiln-dries the wood used for its Col Timbers range of wooden mouldings. The range comprises classic profiles that suit contemporary and traditional homes. Increasing the height of the moulding from 44 mm to 140 mm or 220 mm will give a more glamorous look and feel.

Mouldings can vary dramati-cally with regards to aesthetics and quality, so it imperative to examine them closely.

Miller suggests two useful moulding tools – Miter clamps that will hold the mouldings in place until the glue dries and Micro pinners, a nail gun that has super thin pins.

Mouldings are usually sold in standard 3 m and 3,6 m lengths and should be treated before installation.

For a polished finish, use filler in between mouldings and the wall. Use a wood filler compound to fill any indentations made in the surface of the mouldings by nails. Sand down until smooth and use a sealant. ■

Decorative mouldings

August 2014

August 2014

Roofing, Ceilings, Insulation & Cladding

Spalling is the result of the high moisture and salt content in the atmosphere, which cor-

rodes steel and reduces the integrity of concrete buildings, according to Geoffrey Jäck, Managing Director of Indawa, a paint, waterproofing and construction company.

He says that cracks in building structures can often also be attrib-uted to corrosion of the internal steel reinforcing bars.

“Un-reinforced concrete’s tensile strength is relatively low compared to its compressed strength. Steel reinforcing is placed inside concrete columns that are susceptible to high tensile forces, especially high rise buildings.”

Spalling is a result of water that reaches into the structures of build-ings and causes surface peeling or flaking due to moisture in the con-crete. A high salt content and chlo-rides in the concrete will weaken the integrity of the reinforced steel and the building’s exterior structure.

Jäck continues, “As cracks expose more of the steel reinforcement, cor-rosion is exacerbated and the steel

will deteriorate at an increasingly rapid pace. Left untreated, the steel reinforcement will lose its bond with the concrete and the structure may collapse under its own weight.”

Spalling is a common mainte-nance problem and is more prevalent in older buildings. Body corporates, building owners and property manag-ers need to be aware of the dangers of spalling and how to prevent it.

To treat spalling:• Seal cracks and holes as soon as

possible to prevent prolonged exposure of any reinforced steel

• Ensure that exposed steel is profes-sionally assessed for corrosion and treated

• Ensure adequate waterproofing on surfaces exposed to high rainfall, wind or sea spray

• Implement a maintenance pro-gramme that includes a painting plan tailored for specific weather conditions

Early detectionProperties along South Africa’s coastal region are exposed to high moisture levels, relentless rainfall, sea spray and high winds, which poses a threat to the structural integrity of buildings.

• Ensure adequate sealing when adding substructures such as tanks and satellite dishes to walls or roofs

Spalling repairs are often difficult. Identifying the source and the extent of the damage requires extensive testing.

This includes chipping the con-crete to expose the corroded steel reinforcing to determine the depth of the problem. The corroded steel needs to be scraped to remove all rust. Anti-rust paint should to be ap-plied to this followed by a bonding agent to ensure proper adhesion to the concrete. Mortar should then be reapplied over the steel before paint-ing the surface.

“Regular maintenance checks will identify the problem areas and maintain the structural integrity of the building.”

F o r f u r t h e r i n f o r m a t i o n co n ta c t I n d a w o Pa i n t i n g a n d Waterproofing on 021 941 5000 or email: info@indawo.biz ■

August 2014

The city’s Supply Chain Man-agement report for the year ending June 2014, shows that

more than 86% of its purchase orders were placed with BBBEE-compliant vendors. This represents more than R10,77 billion of total purchase orders issued in this period.

“We are making great strides as an opportunity city, dedicated to bring-ing redress through empowerment,” says van der Merwe. He explains that through city training sessions for micro-enterprises and entrepreneurs, participants have been trained on the city’s vendor qualification processes - how to complete tender submission forms and comply with the regula-tions pertaining to the establishment of Broad-Based Black Economic Empowerment (BBBEE) enterprises. 

“We have also been working hard to increase our partnerships with informal traders in Khayelitsha and elsewhere. Currently, we are

The City of Cape Town urges small and medium enterprises and entrepreneurs in Khayelitsha to ta ke pa r t i n t h e c i t y ’s business and employment support programmes, says the city’s Committee Member for Economic, Environmental and Spatial Planning, Johan van der Merwe.

Cape Town’s Arts and Culture Department has kick-started a six-month campaign that

encourages Capetonians to have their say about the future of the Langa Cultural Precinct, one of the city’s foremost cultural precincts.

Langa residents are invited to put forward suggestions on to how to improve the precinct so that it works for all. The precinct aims to preserve the township’s rich cultural history and support local creative talent. 

The cultural precinct forms part of the Arts and Culture Department’s key World Design Capital (WDC) 2014

North West MEC for Human Settlements and Local Gov-ernment, Collen Maine, has

announced that an administrator and intervention team have been appointed to assist the Ngaka Modiri Molema District Municipality.

The municipality has been experi-encing governance and administra-tive challenges since the beginning of the current term of local government and this has adversely affected the delivery of services through its con-stituent local municipalities.

The MEC explained that the

Langa’s cultural precinct

Cape Town encourages entrepreneurs

project. “We would like to encourage Capetonians to collaborate with our communities on ways to increase the use of the cultural hub.

The Arts and Culture Department will use design ideas to transform the centre into a vibrant cultural hub,” said the city’s Mayoral Committee Member, Garreth Bloor.  

The Langa Cultural Precinct com-prises the Guga S’thebe cultural centre, the Old Pass Office Museum, and the old Post Office building, which currently attracts almost 1 000 tourists each month. The information office within the precinct services

Under administrationmunicipality had failed to provide quality services to the residents and to implement programmes and projects relating to infrastructure programmes for water and sanitation services. “The council also failed to act on alleged maladministration, fraud and corruption and general compliance with applicable legisla-tion and regulations governing the local sphere of government,” said Maine. The district comprises Ma-hikeng, Ramotshere Moiloa, Tswa-ing, Ditsobotla and Ratlou local municipalities. ■

developing and implementing infor-mal trading plans, which will include infrastructure development.

Activa, a city entrepreneur and job seeker initiative, has facilitated ac-cess to information and engagement with small businesses in Khayelitsha over the past few years. One highlight has been the launch of the Business Place branch, which offers small businesses support services. The job readiness programmes have also linked entrepreneurs with this net-work of services. By partnering with the African Entrepreneurial Develop-ment Company, employment support programmes have been offered at 22 City libraries, including Harare (Khayelitsha), Hanover Park, Philippi East, Moses Mabhida, Bellville South and Gugulethu. ■

Infrastructure & Mixed Use

tourists on township tours, while the outdoor and indoor auditoria and ‘dome’ cater for community perfor-mances, visual arts and crafts. 

There are 15 local crafters who sell paintings, beads and pottery to tourists.

“The centre hopes to attract local communities to better utilise the space and, of course, establish Cape Town as a global arts and culture hub,” says Bloor.

A new multi-purpose indoor cul-tural facility, sponsored by two Ger-man architectural schools, will roll out on the Guga S’thebe site. ■

August 2014

Industry Buzz, Events & Products

CableGuard, an anti-theft cable protection system distributed by Aberdare Cables virtually

immobilises theft of direct buried cable by providing cost effective, zero maintenance and corrosion-resistant protection. The CableGuard unit is injection moulded from reinforced engineered polymers. The system is simple and easy to install on a wide variety of cable sizes using a clamp and interlocking shield mechanism. The CableGuard system is typically fitted every 5 m or 10 m in standard installations.

Using the latest scientific tech-niques in computer-aided design (CAD) and finite element analysis (FEA), CableGuard units are de-signed to provide optimum product performance for ‘in service’ load conditions. The product was tested under laboratory conditions and field testing proved it offered highly effective protection, and over time any moisture absorption adds to the

Anti-theft cable protection

clamps tightening further and add-ing additional tensile resistance. Any ‘creep’ or stretching of the cable’s outer layer results in a permanent set of the sheathing material, by enhanc-ing the unit’s ability to safeguard the cable installation. The system has been proven to stop cable theft at source and could be a valuable device in assisting an end to cable theft. ■

AfriSam offers concrete precast manufacturers (CPMs) several

value-adds de-s i g n e d t o

improve the performance of their products and contain costs.

Underpinning the primary prod-ucts supplied to this market are Rapid Hard Cement in the 52.5R strength class; High Strength Cement in the

42.5R strength class; and a 52.5N product. AfriSam value-adds

include on-site techni-cal services to determine the ideal mix designs for customers’ specifications and to propose aggregates that meet these require-ments.

AfriSam SANS-accred-ited laboratory services are also available to verify and test the efficiency of mixes, and product deliveries specifically scheduled for customers.

“In the CPM market we focus on assisting our customers to op-erate as efficiently as possible,” says Mike McDonald, Manager of AfriSam’s Centre of Product Excellence.

H e say s, “ Fo r exam ple, some customers have successfully switched to our SlagCem 42.5N, a cost effective alternative to High Strength Cement and available from our plant.”

“There is no a one-size-fits-all ap-proach in the CPM market, so we draw from the alternatives available to provide the most cost effective solu-tion for each customer. We value our CPMs and are committed to building relationships that will give them a competitive edge.”

“Our success to date reflects the quality, consistency and high perfor-mance of our products.”

The ‘R’ early strength factor in AfriSam’s 52.5R CEM I Rapid Hard Ce-ment and 42.5R CEM II High Strength Cement is proving to be a real differ-entiator in the CPM market.

Top of the range 52.5R Rapid Hard Cement was developed for specialist concrete product manufacturers, and achieved 30 MPa in excess of SANS 50197 minimum at the two-day mark.

This will enable CPMs to develop a variety of new high specification products for highway barriers, roof tiles, retaining wall systems, cul-verts and concrete pipes. Currently, AfriSam is the only company to manu-facture 52.5R Rapid Hard Cement as a standard product.

AfriSam 42.5R High Strength Ce-ment has been specially formulated and activated to allow for further extension with additional mineral components in the production of structural concrete.

The ‘R’ rating achieved 20 MPa in excess of SANS 50197 minimum at the two-day mark. High Strength Cement is commonly used to achieve concrete strengths between 10 and 50 MPa.

“We are proud to be able to offer an ‘R’ rating with the two products supplied to the CPMs, while retain-ing an extremely low carbon foot-print. In effect, we have introduced technological advances that have boosted performance in terms of the strength, performance, durability and workability, without sacrificing sustainability, says McDonald.”

According to McDonald CPM cus-tomers are experiencing tangible benefits and this has led to measur-able growth in the market for AfriSam.

“Our innovative approach allows us to make a genuine contribution to optimising their operations.” ■

AfriSam offers CPM value adds

August 2014

Industry Buzz, Events & Products

The 4th Affordable Housing Sum-mit will be held at the Crowne Plaza in Rosebank, Johannes-

burg on August 26-28. The innovative summit has attracted a number of key industry stakeholders who will present strategies for building and delivering quality affordable homes.

Delegates will have an opportu-nity to benchmark their projects; create better partnerships between the public and private sector; and gain an insight into alternative loan structures and innovative financial approaches.

Discover how to unlock the afford-able market, identify and acquire available land for housing. Learn how to tailor your affordable housing proj-ect and target consumers. Industry players will share their knowledge and offer case studies on develop-ments. The event has a formidable line-up of guest speakers including: Gauteng Partnership Fund CEO Boni Muvevi; the National Housing Finance

Corporation Policy and Research Division General Manager, Dr Sim-phiwe Madikizela; Calgro M3 CEO, Ben Pierre Malherbe; National Home Builders Registration Council CEO, Mongezi Mnyani; Basil Read Develop-ments Managing Director, Yusuf Patel; National Credit Regulator Manager, Louisa Hetisani; Chair of Investment Committee Social Housing Regula-tory Authority, Sharon Trail and a prestigious line up of developers: Cosmopolitan Managing Director, Anton Crouse; RBA Housing CEO Aidan-John Rothman; Nu-Way Hous-ing Development Executive Director, Jordan Mann, TUHF National Mort-gage Manager, Roselyn Valloo and a host of other housing special-ists including First National Bank Affordable Housing CEO Lee Mhlon-go. It promises to be an exciting, informative summit. For further information call 011 593 2267 or email enquiry@iqpc.co.za or visit www.affordablehousingsa.com ■

The SAPI conference theme: ‘Making Great Places’ will build on the previous conferences

relating to the role of planners and the value of planning in the develop-ment and growth of South Africa and the African continent.

‘Great Places’ are not confined to a narrow public-space definition, as much as this element is key to making great places, within the framework of Planning Africa 2014. The event includes various scales and forms such as streets, neighbourhoods, precincts, nodes, economic corridors, special development zones, informal settlements, rural areas, villages, towns, city-centres, cities and metros. In line with this responsibility, there

is the desire that every community should live in a great place.

There are various international initiatives to celebrate ‘Great Places’ that promote the value of planning.

The South African Planning Insti-tute launched the ‘Know Your Block’ campaign, with the objective of show-casing and celebrating great places - and on practically focusing on how to create them.

These places should respond to the needs and aspirations of the communities and enrich human and social interaction as well as attract investment, which in turn generates employment opportunities.Every place, however large or small, rich or poor, should be a Great Place. ■

Interbuild Africa 2014 will show-case more than 400 exhibitors and organisers are confident that

they will exceed their 2012 visitor attendance record. The event will take place on August 20 to 23 at the Johannesburg Expo Centre, Nasrec.

Gary Corn, Managing Director of Specialised Exhibition Montgomery says, “Last year, we welcomed more than 9 000 visitors. With the support of some of the leading industry asso-ciations and the introduction of some innovative new features for 2014, we aim to improve on these figures.”

Interbuild Africa, together with its co-located events - Glass Expo Af-rica, Plumbdrain Africa, EcoAfribuild, Woodpro Africa and Hardex Africa – constitutes the biggest building and construction expo in Africa.

Interbuild Africa 2014 has been endorsed by some the leading in-dustry bodies and associations in the building and construction sector today, all of which will play a key role in facilitating some of this year’s top features. The event organisers are pleased to welcome the support of the National Home Builders Regis-tration Council, the South African Bureau of Standards, the Concrete Institute, the Institute of Plumbing South Africa, the South African Insti-tute of Architects and the Association of South African Quantity Surveyors.

The conferences will offer del-egates the opportunity to gain insight from top industry professionals while earning Continuous Professional Development (CPD) Points. These associations include: The South African Light Steel Frame Building Association, the Association of Quan-tity Surveyors South Africa, South African Glass Institute, South African Glass and Glazing Association, as well as the Association of Architectural Aluminium Manufacturers of South Africa.

Builder’s Warehouse has also come on board as a key sponsor to support visitor attendance through the sponsorship of R30 000 in prizes.  For visitors, the show provides an extensive showcase of the latest in-novations, products and services, while hosting a number of highly in-formative seminars, conferences and networking opportunities. ■

Interbuild Africa 2014

August 2014

Industry Buzz, Events & Products

Located on EN4, Avenida de Na-maacha, Matola, Mozambique, the national building supplies

chain created 108 direct new jobs from the local community. This ex-cludes the indirect job opportunities for auxiliary services such as cleaning, security and transport.

The Matola store has a trading area of 5 290m² and a 7 000m² facility that caters for DIY enthusiasts, small and large contractors.

The store offers the largest selec-tion of quality mainstream, innova-tive and complimentary products and ranges including: bathroom, building materials, cement, décor, electrical, flooring tiles, laminates and fitted carpets, garden plants and accesso-ries, hand tools, hardware, kitchens and accessories, lighting, outdoor, paint and accessories, plumbing,

civil, pool, power tools, sanitary ware and accessories, security and trusses.

Services include: remote control programming, made-to-measure curtains and blinds, gas refilling and exchanges, glass cutting, key cutting, kitchen design, pool water testing and advice, paint mixing and colour consulting, precision timber and board cutting and edging.

As part of their Corporate Social Investment, Builders encourages con-tinuous engagement and participa-tion with local communities in which the stores operate. This includes

Builders’African footprintBuilders has expanded its footprint into the continent with the opening of its latest store in Gaborone in September. Currently, the renowned South African brand has stores in Francistown, and three more in Mozambique in Xai-Xai, Tete and Matola, the latter opened in July.

supporting and promoting initia-tives that focus on early childhood development, specifically building and renovation projects.

The national retail building sup-plies group has set their sights on becoming Africa’s leading retailer of building materials, fixtures, equip-ment, home improvement acces-sories, patio and garden products. Products will be sourced optimally from local and international suppli-ers with the emphasis on quality and competitive pricing in the markets in which they operate. ■

Built environment profession-als are being urged to harness the amazing characteristics

of modern-day readymix concrete to build better structures and speed-up the delivery of critical infrastructure in Southern Africa.

New techniques, as well as ad-vances in cement technology and admixtures, have allowed readymix producers to tailor their offerings. This means that the types of con-crete produced today are suitable for a greater variety of uses and can be specified to suit project re-quirements.Johan van Wyk, Gen-eral Manager of the Southern Africa

Readymix Association (SARMA), says that designers, builders and speci-fiers need to be more aware of the types of readymix that can be ordered and encourages them to work closely with readymix producers.

He adds that SARMA’s Readymix Conference will offer industry the opportunity to find out more about the characteristics of modern-day readymix. The event will be held at Misty Hills Conference Centre on Johannesburg’s West Rand on Au-gust 13 and 14. To find out more ca l l S A R M A o n 0 1 1 7 9 1 3 3 2 7 , email: office@sarma.co.za or visit www.sarma.co.za ■

Readymix expands offerings

Features: Cement & Concrete, Bricks & Paving, Doors, Windows,

Floors & Walls, Construction Equipment & Transport.

To advertise contact Brenda Grossmann on 011 622 4770 or

email brendag@crown.co.za

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August 2014

August 2014