SOUTH AFRICAN PROPERTY16 May... · PROPERTYSOUTH AFRICAN REVIEW May 2016 2 From the CEO 4 From the Editor’s desk 6 Industry news 12 Education, training and development Western Cape:

The PhilippinesA mosaic of magnifi cent pleasures

S O U T H A F R I C A N

PROPERTYR E V I E W

May 2016

South African P

roperty Review

Finance

M

ay 2016

SPLUMAAn update on the

implementation of the Act

Emerging marketsA consumer survey

The

WORLD series

● Our monthly country-by-country focus ●

Property investmentManaging risk, avoiding loss

OverviewAfrica’s economic slowdown

50 SOUTH AFRICAN PROPERTY REVIEW

SAPOA events

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PROPERTYR E V I E W

May 2016

2 From the CEO4 From the Editor’s desk6 Industry news12 Education, training and development

Western Cape: Property Development Programme14 Planning and development Refl ections on over a decade16 Legal update Certifi cate of occupancy18 Convention Forging a relationship20 Interview The lifeblood of conveyancing22 Research Managing risk, avoiding loss24 Theme leader32 Eye on the world Philippines36 On show Mall of the South46 People in profi le48 Workshop SPLUMA is law50 Legal Construction companies and liquidation52 Events Value-add breakfast on a roll54 Frankly speaking Norman Raad’s compulsive-obsessive DNA55 What’s on Upcoming events56 Off the wall Wondrous curves

ON THE COVERThe global economy is a major in� uence behind property investment and forms an integral part of the evolution of the built environment.

Photograph by Mark Pettipher

Editor in Chief Neil Gopal Editorial Advisor Jane Padayachee Managing Editor Mark Pettipher Editor Nthabi Nhlapo Copy Editor Ania Rokita Production Manager Dalene van Niekerk

Designers Wade Hunkin, Eugene Jonck Sales Robbie Pansegrauw e: [email protected]; Riëtte Stevens e: [email protected] Finance Susan du Toit Contributors Andre Fiore, Anne Schau� er, Lekgolo Mayatula, Maud Nale, Merisca Scott

Photographers Jabu Nkosi, Mark Pettipher, Val Adamson, Xavier SaerDISCLAIMER: The publisher and editor of this magazine give no warranties, guarantees or assurances and make no representations

regarding any goods or services advertised within this edition. Copyright South African Property Owners’ Association (SAPOA). All rights reserved. No portion of this publication may be reproduced in any form without prior written consent from SAPOA.

The publishers are not responsible for any unsolicited material.

Designed, written and produced for SAPOA by MPDPS (PTY) Ltde: [email protected]

Published by SAPOA, Paddock View, Hunt’s End O� ce Park, 36 Wierda Road West, Wierda Valley, SandtonPO Box 78544, Sandton 2146

t: +27 (0)11 883 0679 f: +27 (0)11 883 0684

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contents

The PhilippinesA mosaic of magnifi cent pleasures


PROPERTYR E V I E W

May 2016

South African P

roperty Review

Finance M

ay 2016

SPLUMAAn update on the

implementation of the Act

Emerging marketsA consumer survey

The

WORLD series ● Our monthly country-by-country focus ●

Property investmentManaging risk, avoiding loss

OverviewAfrica’s economic slowdown


The National Building Regulations and Standards Act (Act No. 103 of 1977; “the

Act”) provides for the promotion of uniformity in the law relating to the erection of buildings in the areas of jurisdiction of local authorities, for the prescribing of business standards, and for matters connected therewith. More details on the applicable sections can be found in the Legal Update on page 16.

Certificate of occupancy was introduced into the National Building Regulations post-1987. Hence it is the responsibility of the property owner to ensure all buildings satisfy the Act, which aims to ensure that all buildings are constructed in a manner that would afford occupants buildings that are structurally sound and safe. It goes without saying that older buildings should meet acceptable safety standards, and in all instances satisfy such requirements. The directors of the property owner are exposed to the risk in terms of damages and a potential prison sentence of 12 months when the property owner is in breach of the Act.

To minimise the risk to the owner, a structural engineer is employed to certify a building as being compliant. To obtain a structural certificate, significant expenditure would be required to verify structural integrity of building’s components. This would include but would not be limited to the exposure of

foundations, slab coring, concrete testing and the measurement of in-situ structural members. In the normal course of ensuring that the building is structurally sound and safe to occupy, the tasks identified above need not be performed by the structural engineer – the engineer is able to gauge the building’s soundness based on close inspection and assessment without intrusive investigation such as exposing the foundation or slab coring.

Serious changes have been implemented in terms of the Act of 1997:

● In terms of fire requirements, all buildings built after 1997 require at least two fire escapes. This might nit be possible in a building constructed before this date because the building has usually already utilised its full use rights. The lettable floor space would have to be reduced in order to provide the space to the fire escape.

● Energy efficient requirements introduced in 2011 would require the building to be orientated north, and that an envelope be established to ensure loss of energy from within the building.

● To comply with the latest ventilation requirements, for example, additional openings in the external façade may be required in the form of opening windows or roof vents.

Serious challenges brought about by legislative changesThe provisions of the Act shall apply in the area of jurisdiction of any local authority. This area of jurisdiction was limited to the municipal area defined as being the town and cities. The land outside the municipal area was described as being peri-urban, and the Act did not apply within these areas.

The Act was equally not enforced within the land described as homelands in terms of apartheid legislation. In total, 10 homelands were created in South Africa: the Transkei, Bophuthatswana, Ciskei, Venda, Gazankulu, KaNgwane, KwaNdebele, KwaZulu, Lebowa, and QwaQwa. The Act is not applied within areas demarcated as Community Land Trusts.

The Municipal Systems Act of 2006 created an inclusive South Africa that is governed by a system of wall-to-wall municipalities. This has the effect that all of the existing buildings within the above-mentioned areas have become unauthorised and are, in fact, in contravention of the National Building Regulations and Building Standards Act.

This, in effect, has turned law-abiding owners of legally constructed buildings into contraveners of the Act by legislated changes. We are sure this was unintentional – but it needs to be resolved.

In as much as SAPOA supports the objectives of the Act, the organisation also takes cognisance of the fact that members have been placed in a difficult position. They have numerous old buildings that date back several decades, and as a result of unforeseen circumstances, they are no longer in possession of the approved building application and similar documentation – including the certificates of occupancy.

SAPOA arranged a meeting with various departments to express its concerns and to forge a way forward. We also consulted with the Department of Trade and Industry and was referred by that department to the National Regulator for Compulsory Specifications (NRCS) as the responsible body.

SAPOA has been invited to be part of the Department of Trade and Industry’s stakeholders’ meeting on the review of National Building Regulation and Building Standards Act, and is to provide the NRCS with the list of changes that have come into effect since the inception of the Act.

The NRCS will meet internally and with SALGA in an effort to move the process forward. The entire process is to be finalised by the end of May. The NRCS will guide the municipalities on the implementation of the Act with all the assistance it can get from SAPOA.

We will keep members informed of the way forward.

Neil Gopal, CEO

Certificate of occupancyThe importance of being in possession of a certificate of occupancy cannot be overemphasised – it is indicative of the fact that the building has been erected in accordance with the provisions of the Act

from the CEO

51SOUTH AFRICAN PROPERTY REVIEW

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The commercial property sector is one that relies heavily on the economy and

the performance of global markets. Rapid urbanisation and the development of liveable cities around the world also dictate the direction South African developers choose to take. This means that when the world economy is in crisis, it becomes increasingly challenging to make long-term building decisions. This is why the sector needs to be saturated with experienced, knowledgeable professionals who are able to make crucial decisions for the country.

In this issue, we meet one such professional: Black Conveyancers Association CEO Zukiswa Ntlangula. A seasoned conveyancer, Ntlangula understands the intricacies of property as well as the challenges of the sector, and shares some of her views with us.

SAPOA recently hosted a Spatial Land Use and Management Act workshop at its headquarters. The workshop, attended by various municipal leaders, aimed to update attendees on how far various municipalities are in terms of implementing the Act. We highlight some of the issues that were discussed. We also look at the Jo’burg Rates Policy review and other SAPOA updates.

This year, more than ever before, South Africans from all walks of life and social classes

are showing concern about our volatile rand and the state of the economy. As a result, in this issue we focus on the commercial aspect of property ownership.

Africa has been a fertile ground for foreign business investment, and has been seen as one of the last frontiers for economic growth and development. But the continent as a whole has seen a downturn in the economy. It is reported that sub-Saharan Africa’s real gross domestic product grew at its lowest rate since 2009 in 2015. We therefore look at the region’s viability as an investible continent.

In the same breath, we zone in closer to home and look at the latest research from JLL South Africa, which shows that the trend in commercial property investment activity in South Africa in the past year has been one of managing risk and avoiding loss, increasing the preference to hold property as opposed to cash reserves.

It is reported that almost R20-billion was invested in various types of commercial real estate in 2015. It seems that investors are applying cautionary measures to avoid high-risk purchasing. We explore these and other issues that affect the commercial side of the industry.

Farewell to a distinguished publicationSAPOA is an organisation that personifies excellence, and serves its members with a praiseworthy sense of passion, commitment and genuine concern for the industry.

It is this and other factors that have been highlights of my personal and career journey as the editor of SAPOA magazines. This issue of the South African Property Review is my last in the role of editor. To an editor, it is inevitable that a publication becomes like a first-born child, taking over your life. You get attached and take full ownership of this adopted child. I have grown attached to the magazine, so it is bittersweet to leave – but the lessons learnt, connections made and deep-seeded commitment I experienced at SAPOA are things that will remain with me throughout my career as a media specialist.

Meeting and interacting with the likes of SAPOA CEO Neil Gopal, President Mike Deighton and President Elect Nomzamo Radebe have been an enormous pleasure.

I’d like to thank the entire SAPOA team, including its Board and management, for the work they do in the industry and the various projects I had the opportunity to work on.

With my exit, the SAPOA publications will, in the interim, be handled by long-time publisher of SAPOA publications Mark Pettipher, who has been both my mentor and a friend throughout my tenure at SAPOA. He comes with years of publishing experience and an unmatched drive for excellence.

I wish SAPOA a happy 50th anniversary, and continued longevity and excellence in the commercial property space. Enkosi Nthabi Nhlapo, Editor

Experts essential to drive commercial property sectorThe commercial property sector can be complex, and at times poses various challenges.

This makes it imperative to find talented professionals to drive the industry forward

from the Editor’s desk

Incoming Managing Editor - Mark Pettipher


SAPOA eventsINVITATION TO STEP INTO THE VOORTREKKER ROAD CORRIDOR

ABOUT US:The Greater Tygerberg Partnership (GTP) is a catalytic champion for the Greater Tygerberg Region, working in partnership with the City of Cape Town towards the redevelopment and revitalising of the Voortrekker Road Corridor (VRC).

CONTACT DETAILS:Tel: (021) 823 6713 Website: www.gtp.org.za Facebook: http://www.facebook.com/thegtp Twitter: @gtp_the

Email: Kirsten Sloth Nielsen – [email protected] / Lyle van der Merwe – [email protected]

SERVICE:We take on the role of a development facilitating agent, with various services on offer to investors, business owners, building owners, developers and the community in the area:

● Identification of development opportunities ● Due diligence studies of properties ● Area specific knowledge of the

built environment ● High level pre-feasibility studies at attractive rates ● Liaising with City departments to address

issues hampering development.

OPPORTUNITIES THE VOORTREKKER ROAD CORRIDOR BOASTS WITH:

● 9 tertiary institutions, 7 hospitals and 100 000 plus students in the area.

● Significant demand for affordable housing ● Urban Development Zone (UDZ)

Tax incentive ● Proximity to Transport services. ● Opportunity to be an inclusive

“Live, Work and Play” corridor in the City of Cape Town. ● Highest concentration of employment

opportunities in Cape Town.

Making progress possible. Together.


industry news

Cashless, ticketless parking app KaChing was first launched as a commercial pilot in 2015, having been granted a provisional

patent, followed by a full patent in November 2015. Melrose Arch and Morningside Shopping Centre were two of the first properties to implement it.

The service uses licence-plate-recognition technology to open the boom when users arrive at and exit a parking lot, automatically deducting the parking fee from their credit card or pre-paid account upon exiting.

Melrose Arch Operations Manager Reiner Henschel explains that, in order to better serve the high-end patrons frequenting the precinct, he started investigating alternative parking systems in 2012. “Our requirements were a system that is technologically advanced, easy to use and future-proof,” he says. “KaChing offered us the solution we were looking for. It’s a simple, easy-to-use app that helps us lead the way in new, smart ways to park.”

Morningside Shopping Centre Manager Sharon Henry was intrigued by KaChing’s proposition when the start-up approached her through Servest Parking. The shopping centre focuses on convenience and attracts a diverse demographic. “The Morningside Shopping Centre patrons are discerning,” she says. “We believe the KaChing app adds to their shopping experience by removing the hassle of parking tickets, and ensuring an effortless yet pleasant experience.”

With patrons’ busy schedules and time constraints, KaChing encourages them to visit the shopping centre more regularly and stay for longer, knowing they don’t have to worry about physically paying for parking.

Innovative parking solution

Owerri Mall, a pioneer shopping experience

in Owerri State in Nigeria, was opened on 17 March 2016 by developer Resilient Africa. Profica, the industry-leading construction solutions and property company, provided tenant coordination services for the mall.

“We celebrate alongside the Resilient Africa team and offer our congratulations to the team and all involved parties on the successful launch of this international-standard retail centre,” says Profica Lead Tenant Coordinator Lauren Marshall.

The Profica Tenant Coordination Team, under the leadership of Marshall, delivered an end-to-end tenant coordination solution. “The tenant mix within the mall includes fashion, accessories, telecoms, and health and beauty retailers, as well as fast- food services, restaurants and entertainment, providing a wide range of options to the Owerri market,” says Marshall. “Owerri Mall has a master plan that accommodates future expansion possibilities in reaction to market needs.”

Marshall explains that tenant coordination service delivery, as a specialisation within the Profica property solutions offering, has been developed to align the needs

and vision of developers with those of retailers. The result is a mutually beneficial relationship from the outset for both tenant and landlord. “We value the importance of our clients’ relationship with their tenants, and we ensure that the process from inception to trade runs smoothly for all parties involved,” she says.

Profica offers strong service capabilities throughout Africa, with teams throughout the continent working across the retail, commercial, recreational and industrial property sectors. The company has permanent offices in Johannesburg, Nigeria, Ghana and Kenya, and continues to successfully deliver on numerous projects within West Africa.

“The Profica philosophy is to offer localised solutions and insight into the region by using and developing local resources,” says Marshall. “Specifically chosen team members are appointed to deliver individual projects based on the unique needs and objectives of a project. Our local knowledge, company culture and investment in the right people, processes and technology continues to get the best results for our clients. We look forward to delivering further projects in Nigeria and throughout the African continent.”

A prime new Sea Point development known

as The Barkly will offer eight meticulously designed units that combine spectacular views with a cosmopolitan urban convenience.

The residences will be located on the corner of Barkly Road and Ocean View Drive, an arterial route linking the Atlantic Seaboard with the city centre.

In addition to the glorious mountain and ocean vistas, residents will have all the convenience of modern shopping centres, coffee shops and restaurants just down the road.

The building is a joint venture between Signatura, the private-label property brand of John Rabie (founder of the highly successful Rabie Property Group) and GAIN

property consultants and developers. GAIN CEO Ari Efstathiou and Rabie have previously collaborated on the Chelsea on Main apartments in Green Point.

Architect Juan Bernicchi, who’s worked with Signatura on a number of projects, has laid out a blueprint in a contemporary architectural idiom, with characteristically clean lines and strong sculptural elements.

Bernicchi and his talented team have ensured that every element of the development complements the exemplary setting. It’s been meticulously designed to ensure the building is pleasing to the eye while functioning optimally.

The Barkly offers five two-bedroom residences – two on the first floor and three on the second floor.

Owerri Mall launched in Nigeria

Banking on Barkly

Owerri Mall opening


industry news

Home to a growing list of green buildings – including some of the largest and most cutting-edge on the continent – Sandton

Central and the broader Sandton node are an epicentre for green building in Africa.

Now Sandton Central’s landmark Sandton Convention Centre has been selected to host the Annual Green Building Convention for the first time, putting the spotlight on Sandton and Gauteng as a hub of green building.

“With the largest number of standing and under-construction green buildings in Africa – many of which are ground-breaking sustainable developments – it is fitting that the Green Building Council of South Africa (GBCSA) has decided to move its Green Building Convention to Sandton,” says Elaine Jack, City Improvement District Manager of the Sandton Central Management District, which manages the public urban spaces of South Africa’s cosmopolitan financial hub. “The Sandton node is home to possibly the largest collection of green-rated buildings of any CBD in Africa, with more than 20 certified projects by the GBCSA. In fact, the first-ever Green Star SA-rated building in the country to be officially certified by the GBCSA back in 2009 was Nedbank Phase II, the landmark head office building of Nedbank on the corner of Rivonia Road and Maude Street in the Sandton CBD.”

After being awarded a 4 Star Green Star SA Office Design V1 rating in 2009, Nedbank Phase II secured the 4 Star Green Star SA Office V1 “As Built” certification in 2010.

There are several ground-breaking new office buildings under construction in Sandton Central that are green developments. They include the multi-billion-rand new Discovery head office; Sasol’s new global headquarters; and Alice Lane Phase III, the final development in Abland and Pivotal Property Fund’s massive Alice Lane development.

Former president Nelson Mandela believed there

can be no keener revelation of a society’s soul than the way in which it treats its children.

Our children are our future – and it is with this vision firmly in mind that the development of the R1-billion Nelson Mandela Children’s Hospital in Parktown, Johannesburg takes another step towards completion. To date, R790-million has been donated towards the state-of-the-art specialist facility, which is set to open in December 2016.

“Construction of this life-saving facility began in April 2014 and we are extremely excited to be nearing completion,” says Nana Magomola, Deputy Chairperson of the Nelson Mandela Children’s Hospital Trust. “We remain encouraged by the support we have received from so many in the private sector. But there’s more to be done in our bid to bring hope to the lives of children across the SADC region, and we encourage the private sector and all individual citizens to open their hearts and support

Sandton is an epicentre for green building in Africa

Nelson Mandela Children’s Hospital Trust to bring state-of-the-art healthcare to the children of Africa

A recent analysis conducted by KPMG to determine the

economic and financial viability of the Cornubia development north of Durban shows that it holds unquestionable benefit to the city, its people and the economy.

The proposed mixed- use development has been earmarked as a strategic project that will have a significant impact on the social, economic and industrial prospects of the region. These prospects have now been quantified following the cost-benefit and macroeconomic-impact analysis conducted by the accounting and auditing firm.

Appointed by the eThekwini Municipality, KPMG was tasked with determining whether the project represents a sound investment, and providing a baseline for comparing projects on the basis of their costs relative to their benefits.

The Cornubia analysis indicates an overwhelmingly

positive outcome from the development for the eThekwini Municipality, local communities, and the regional and provincial economy.

“As important as the economic and financial considerations are, the Cornubia development is regarded as a catalytic intervention undertaken jointly by the eThekwini Municipality and Tongaat Hulett Developments to establish the first fully integrated human settlement in the country,” says Denny Thaver, a project manager at eThekwini Municipality.

The development has a large impact on job creation in eThekwini during both the construction and operational phases. In the long term, nearly 285 000 new jobs will be created as a result of the commercial activities associated with Cornubia, representing a healthy 12% of total employment in the province.

Cornubia analysis shows considerable positive impact

the future progress of the hospital that will change the landscape for children’s specialist medical treatment across Africa.”

The new hospital will be a 200-bed specialised paediatric hospital located on the University of the Witwatersrand campus, on land donated in 2009.

GEHC’s collaboration with the Nelson Mandela Children’s Hospital Trust and Standard Bank highlights the importance of private sector assistance in achieving the establishment of long-term sustainable healthcare on the continent.

Karen Petersen on site at Cornubia Industrial and Business Estate


industry news

A R6,2-billion new Gauteng housing project – the

Leratong City integrated nodal development – is set to get under way in Leratong, Mogale City in a joint development by McCormick Property Development, Calgro M3 and Sasuka Logistics Services.

Situated across the road from the existing Leratong Hospital, the first phase will consist of 15 000 residential units, an intermodal transport hub, a government precinct, and a 30 000m² regional mall. The total development extends over 400 hectares; construction of the bulk infrastructure is expected to commence by June this year.

Located on two major regional movement routes that form part of the primary movement network of Gauteng, the Leratong City project has been selected as an area for

Neighbourhood Development Partnership Grant investment. It forms an integral part of a larger regional node set in the context of a previously disadvantaged township, which has the potential to transform into a high- intensity regional node.

To complement the housing and other facilities, essential social amenities such as crèches, a community centre, educational facilities and healthcare facilities will be developed. Other amenities will include mixed-use business centres, religious sites, green spaces and recreational parks, and public sports facilities.

To make provision for the predicted increase in traffic, the project will provide for the construction and improvements/upgrades of major roads, as well as opening up critical links to connecting suburbs.

Business decision-makers’ main objective is to satisfy

client needs and deliver on company promises. In order to do so effectively, a company needs to operate efficiently at all times. However, with companies increasingly facing a growing number of risks, both anticipated and uncontrollable, decision-makers are taking strain and businesses are being adversely impacted.

This is according to Annelie Smith, Corporate Executive at Risk Benefit Solutions (RBS), who says that the economic landscape is changing rapidly, and as a result business owners are encountering new risks in their operating environment, which they are not adequately prepared for.

“Over the past three years, we have noticed a growing need for reliable cover across Africa and

the world by local companies,” she says. “To meet this demand, we have partnered with WING, a global network that enables RBS to expand its international reach and global expertise in providing coordinated, integrated insurance and risk-management solutions to businesses operating on a global stage.”

She explains that risks vary greatly across Africa, and without hands-on-the-ground expertise,

risks unique to a certain market can easily be miscalculated or misinterpreted, potentially having a detrimental impact on the business.

“With the most recent terrorist attacks in Brussels, the risks associated with terrorism is also rapidly rising,” she says. “Reports also show terrorism in Africa is rising steadily because of militant activity, and can’t be ignored by businesses.”

New mega development: Leratong City in Mogale City

Risks facing businesses on the rise

Richards Bay is one of South Africa’s fastest-developing

cities, with the country’s second-biggest harbour and largest coal export facility in the southern hemisphere stimulating industrial and commercial expansion and driving urban development. Nedbank further entrenches its socioeconomic commitment by providing funding of R34,6-million towards new affordable housing developments in this promising region.

The growth has spurred urban development, leading to an increase in demand for affordable residential housing along the North Coast. In recognising this need, Mahrick Investments CC will develop sectional title apartments to be known as 95th On Manhattan. The construction of the development is being undertaken by Met Builders, with sales and management of rentals undertaken through the BMA Group.

“BMA’s expertise in insurance, estate agency and property development has provided it with unique insights into the specific housing requirements

of the entry-level to middle-income market,” says Manie Annandale, Head of Affordable Housing Development Finance at Nedbank Corporate and Investment Banking.

95th On Manhattan will include 90 sectional title apartments, comprising one unit type measuring 55m² and featuring two bedrooms, one bathroom and an open- plan lounge/kitchen area.

Located on 95 Via Cassiandra Road, Arboretum, adjacent to the Richards Bay CBD, the development is well-positioned and close to schools, hospitals and shopping centres. It is easily accessible to services and a well-defined transport network that connects the area with the rest of the town.

“Affordable home ownership plays a pivotal role in the economy,” says Francois Louw of Mahrick Investments CC. “We recognised a big shortage of residential stock in sought-after areas of the North Coast. We approached Nedbank for financing because of their focus on affordable housing development finance, and we are pleased with the progress of making home ownership a reality.”

Socioeconomic commitment

Artist impressions of Leratong City


SAPOA events


industry news

The High Street Auction Co auctioned a portfolio

of substantial properties for more than R110-million at one of its recent auctions at Summer Place in Hyde Park.

More than eight properties within the portfolio included retail premises, the most attractive of which were retail and office blocks situated in the heart of the bustling Pretoria CBD – one directly opposite the Absa Towers and the other overlooking Church Square. With a combined 16 storeys between the two buildings and a gross lettable area of more than 10 000m², these properties fetched more than R42-million in total.

“We are very pleased with the increased interest in the auction platform and the growing number of clients who are opting to place their high-value properties with us,” says Lance Chalwin-Milton, Joint Managing Director at High Street Auctions. “Not only are clients benefiting from wider buyer interest, the process is also enabling them to sell these considerable properties expeditiously.”

Other properties that saw bidders competing on the day were the industrial developments in Chamdor, Krugersdorp and the sought-after Isando Business Park in Isando. Offering a combined gross lettable area of more than 9 000m² of warehousing and factory space, the properties went for more than R21-million.

Sasolburg, which is home to thousands of Sasol employees, also offered a lucrative retail investment opportunity to bidders. More than 3 000m² of shopping space – located in an area of high foot traffic, Fichardt Square – with prominent tenants such as Edgars, Foschini, Jet and Markham, was knocked down for a bid price of more than R15-million.

“Our auctions are always highly anticipated, attracting hundreds of high-profile investors annually,” says Chalwin- Milton. “We continue to enjoy great appreciation for our seamless, transparent auction process, with buyers and sellers engaging with us enthusiastically.”

Sun City’s four hotels and the entertainment zones

have been or are in the process of being revamped in a five-year, R1-billion upgrade, which will be completed in 2017.

Sun City started life as the iconic complex for South Africans and tourists alike. Nothing quite like it had ever been seen in South Africa before – or since.

“We’ve seen many changes to the complex since 1979 when the resort was built, most notably the construction of the Palace of the Lost City,” says Group GM for Brand and Communications Michael Farr. “But there have been significant upgrades to the complex over the years. Our aim is to keep refreshing our offering at the complex to make sure we stay up to date with the needs and aspirations of our guests.

“Performance at Sun City has been affected by the visa restrictions introduced last year, which choked off a lot of business from regions that were growing; disruption while the resort is being renovated; and a general decline in economic conditions, with corporates in particular cutting back on conferences. The visa problem is easing but it will take some time. We expect that, with new conference facilities opening in 2017, we will win back much of this business.

We are also growing a new line of business in VIP gaming, which will bring international gaming tourists to the resort.

“Recently, we have seen an upturn in our occupancy rates. Sun City saw unprecedented growth in visitors from China and Hong Kong during the 2015/2016 festive season as the weaker rand appeared to help counteract the negative impact of the visa regulations.”

In January this year, the company began a massive upgrade of the Entertainment Centre, focusing on a complete facilities upgrade to attract convention business throughout the week.

The 382 luxury self- catering apartments at the Sun Vacation Club have already been upgraded and are selling well. The 380 bedrooms at the Cabanas have also been refurbished, along with refreshing the public areas and the pool bar, and relocating the children’s play areas.

“Our approach from inception has been to differentiate our hotels, resorts and casinos in architecture, service, experience, location and the mix of entertainment and activities,” says Farr. “Creating lasting memories for guests and customers is a core part of our DNA.”

Sun City’s R1-bn refurb

More than one hundred million rand of property knocked down

Media House in Pretoria

An aerial view of Sun City


industry news

With seven solar farms successfully generating

renewable energy at its buildings across South Africa, Growthpoint Properties is now embarking on its largest rooftop solar installations yet.

Growthpoint, the largest South African primary listed real estate investment trust, is undertaking two large solar installations on the rooftops of its Northgate Mall and Brooklyn Mall in Johannesburg and Pretoria respectively – each with a capacity of nearly 1,2MWp.

“Growthpoint has already passed the halfway mark in achieving its goal to install rooftop solar farms capable of generating an impressive 6MWp,” says Werner van Antwerpen, Head of Sustainability at Growthpoint Properties. “In other words, we’ve generated enough solar energy to power nearly 2 500 average South African homes.”

Harnessing energy from the abundant South African sunshine, Growthpoint has already completed the installation of photovoltaic solar panels with the capacity to generate more than 3,2MWp at seven of its office, retail and industrial properties. These solar farms are at its landmark assets across the country, including Cape Town’s

V&A Waterfront, Constantia Village, Bayside Mall and Airport Industria. Its InfoTech building in Pretoria, Waterfall Mall in Rustenburg and Lincoln on the Lake office building in Umhlanga also benefit from solar power-generating installations.

Growthpoint has a further four projects under way, expected to generate about 2,7MWp of renewable energy. Besides its Northgate and Brooklyn Mall installations, it is also establishing solar

farms at Kolonnade Shopping Centre in Pretoria and its office properties at 33 Bree and De Waterkant in Cape Town.

This is only the beginning for Growthpoint – it has identified more than 70 buildings across its portfolio for possible future solar photovoltaic installations.

“Our solar farms are one way in which Growthpoint is creating a more sustainable built environment for South Africa,” says Rudolf Pienaar, Growthpoint Divisional Director: Office Sector, commenting on Growthpoint’s rooftop solar farms. “It also delivers on our ambitious commitment to sustainability, energy efficiency and green building, made on Buildings Day at COP21 in Paris, France last December.”

Growthpoint undertakes its largest solar-power projects yet

Emira Property Fund has secured yet another prime

property in the Menlyn node in Pretoria. The R403-million 50% share in five buildings in Summit Place, a new P-grade office development that includes other mixed uses, will further bolster Emira’s already flourishing portfolio of quality property assets.

Set to become one of Emira’s flagship office properties, Summit Place offers great convenience, with access to the new Protea Hotel Fire & Ice and Menlyn Park Shopping Centre right across the road.

“We believe this investment will be enhancing to both our portfolio and the value we give our shareholders, and offer significant opportunities in the future,” says Emira Chief Executive Officer Geoff Jennett.

Emira concluded the acquisition deal last year at an average yield of 8,14%. Jennett explains that Emira was able to take up this attractive opportunity because of its excellent partnerships. “Emira was offered the opportunity to purchase a 50% undivided share with Neotrend, the same company that, in 2014, sold Emira a 60% undivided share in the Ben Fleur Boulevard shopping centre in Mpumalanga.”

Summit Place is optimally located on the intersection of Garsfontein and the N1, with great visibility towards the highway. Garsfontein also has several Gautrain bus stops, convenient for commuters travelling between Pretoria, Centurion, Johannesburg and OR Tambo.

The overall development, which comprises a total of 10 premium-grade commercial buildings, will see Emira and Neotrend take ownership of five, with current tenants including Grant Thornton, BDO, Summit Sky Grill & Bar, Land Rover, Assupol and Sizwe Ntsaluba Gobodo.

The first two completed buildings transferred to Emira in December 2015. They offer state-of-the-art security, ample parking, and up-market finishes to create an appealing business environment. The remaining three buildings, which include both office and retail space, will be developed by Emira and its partners for completion in January 2017.

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

Emira expands portfolio with R403-million commercial property in Pretoria

An artist’s impression of buildings planned as part of the Summit Place development in Menlyn, Pretoria

Geoff Jennett, CEO of Emira Property Fund

Rudolf Pienaar, Divisional Director: Office Sector at Growthpoint Properties

Werner van Antwerpen, Head of Sustainability at Growthpoint Properties


education, training and development

Western Cape:University of Cape Town

Course pro� le and objectivesThe extremely popular Property Development Programme is presented jointly by the Graduate School of Business (GSB) of the University of Cape Town and SAPOA. This intensive two-week course, held at the GSB in Cape Town, is South Africa’s premier management programme on property � nance, valuation, property law, negotiation, investment, development, marketing and management. Delegates attending the PDP will � nd their skills and knowledge sharpened not only through practical instruction and case studies but also by the exchange of ideas with their course colleagues, resulting in an extended basic knowledge in the principles and practices of property investment, development, marketing and management.

An experienced GSB faculty, supplemented by national and international instructors, will provide a strong base to the programme in the areas of � nancial management, group dynamics, strategic thinking, negotiation and presentation skills, and economics. The balance of the instruction and seminar leadership will come – sourced by SAPOA – from leading � gures in the industry and from a series of projects that will be undertaken on a competitive inter-team basis. One long-term objective of the course is to promote the pro� tability of sponsoring companies through high-level management development. In addition, delegates build long-lasting business and personal relationships with course colleagues.

Participants are drawn from the many disciplines that comprise the commercial property industry – for example property development, � nancial, legal, architectural, engineering, quantity surveying, building planning and the brokering sectors. The calibre of participants is traditionally very high, and the standard of instruction is therefore pitched at senior and potentially senior management.

Structure of the course and workloadA maximum of 64 delegates are selected to attend each PDP. The organisers will select delegates and reserve the right to accept or reject applications. The PDP course is extremely intensive, with lectures and projects from 8.30am to 9.30pm, from Monday to Friday – thus it is a requirement that delegates live in recommended accommodation.

The learning process is stimulated through a combination of class instruction, discussion, seminars and project work. This is supplemented by periods of private preparation, during which each delegate reviews the course material provided during the past day and prepares for upcoming lectures. Participation in lectures and groups is essential for the learning process.

Projects are assigned during the course for completion by the groups. A � nal group project will be presented to a panel of judges. On the last evening of the course, delegates attend a dinner at a private venue, where they receive certi� cates from the GSB and where awards are handed out for the � nal project. An assessment of each delegate will be forwarded to the sponsor and delegate on completion of the course.

Areas of study ● Economics

The course covers the present state and future prospects of the South African economy. It also o� ers a broad insight into the impact of domestic and international developments on the property market.

● Financial ManagementFocusing on the role of the � nancial manager, this segment is designed to help management develop strategies to deal with change in the business climate. Topics include cash management, return on investments, discounted cash � ow and innovative � nancing.

The balance of the instruction and seminar

leadership will come – sourced by SAPOA –

from leading fi gures in the industry and from a

series of projects that will be undertaken on a competitive inter-team

basis. One long-term objective of the course is

to promote the profi tability of sponsoring companies

through high-level management development

Two-week course 17 July to 29 July 2016





● MarketingInsight into the principles of marketing, sound marketing strategies and the opportunities for marketing property.

● Viability, Feasibility and Valuation Assessment of the viability of projects. The segment on valuations will examine the broad economic principles of property valuations and the di� erence between cost and value.

● Contracts & TendersTopics include Bills of Quantities, di� erent types of building contracts, competitive tenders and negotiated contracts, competitive negotiation, how to reduce the overall planning and building period, and the standard building contract.

● Town PlanningParticipants will be taken through the entire planning process, including procedures. The course gives an introduction to town planning and the establishment of townships, and examines the legislative framework, controls and design standards within which planners must work.

● Property ManagementThis segment deals with the management of income-producing properties: commercial and industrial (factories, o� ces, shopping centres), residential, parking garages.

● Property LawA review of legislation applicable to all property matters, including property legislation.

● Property TaxationThe principles and practicalities of taxation as they a� ect purchases, the sales of property, the design of buildings and complexes, and property management, including VAT. Possible future taxation scenarios as they a� ect property will also be discussed.

● Strategic Thinking: Doing Business in the Chaotic WorldA pragmatic process of strategic thinking

to help participants contextualise the inevitable challenges and opportunities of the future market place.

● ProjectsThe culmination of the course is the application of principles learned during the course to a theoretical property development in or around Cape Town. In addition, case studies and daily projects are set.

Other modulesThe course will also include other subjects, such as:

● Introduction to property development ● Design technology ● Property and the environment ● Financial feasibility ● Valuations ● Property economics ● Risk management ● Asset management ● Property � nancing methods ● Facilities management ● Property research ● Tourism ● Negotiation skills ● Property development, and how to

drive entrepreneurial development.

Background to the educational programmesEvery year, SAPOA – in partnership with various tertiary education institutions – presents a range of short courses and training programmes in commercial property. The PDP course is designed to meet the needs of middle and senior management positions in the commercial property industry. The number of delegates attending each course is limited, and it is recommended that application forms are processed and submitted urgently in each instance. The attached pages provide a synopsis of the Property Development Programme, as well as a registration form. Please make copies of the registration form for your own records.

Group discussions and � eldwork projectsThe composition of the groups is as balanced as possible with regards to the disciplines from which the participants are drawn. Groups will tackle projects such as:

● Valuation of a property ● Financing alternatives for property

development or acquisitions ● Town planning implications

of a given property.

More PDP course informationThe emphasis of the PDP course is on interactive participation, therefore the number of delegates admitted into the programme is limited to 64. Because of the high standard of this course, the organisers reserve the right to select the appropriate delegates to attend the course. The composition of each of the groups is as balanced as possible with regards to the disciplines from which the participants are drawn. Applicants will be advised of their acceptance by the end of June 2016, and will be supplied with all necessary information well in advance of the programme starting date.

● The PDP ends with a formal dinner on Friday evening, 29 July 2016.

● Delegates depart on Saturday morning, 30 July 2016.

● Details regarding arrival and registration will be sent to delegates before the programme begins.

● GSB facilities: delegates will have access to computers in the seminar rooms, as well as free WiFi.

General informationMafonti MorobiTraining Coordinatort: +27 (0) 11 883 0679 f: +27 (0) 86 276 1865 e: [email protected] w: www.sapoa.org.za

Property Development Programme



On 18 March 2016, SAPOA was invited by the South

African Cities Network (SACN) to attend the launch of the results of their latest research, conducted in collaboration with the Department of Public Works (DPW), titled “Our Expanded Public Works Programme – Re� ections on Over a Decade” and “The State of Expanded Public Works Programmes in South African Cities: 2014-2015”. The event was held at the Ekurhuleni Metropolitan Municipality (Kempton Park Civic Centre), and included a tour that a� orded the metro the opportunity to showcase some of its expanded public works programmes.

The key speakers at the launch included Deputy Minister of Public Works Jeremy Cronin, SACN Chairperson and the Executive Mayor of the City of Johannesburg Parks Tau, Mayor of Ekurhuleni Mondli Gungubele (represented by Councillor Connie Mashigo) and the CEO of SACN Sithole Mbanga (represented by Dr Geci Karuri-Sebina).

But why was SAPOA invited to this function, and what is the connection between SACN and the Department of Public Works (DPW)?

It is important to note that SAPOA and SACN have signed a memorandum of understanding (MOU) that encourages both entities to work together on matters a� ecting the development and management of cities. Added to this, the relationship between SAPOA

Reflections on over a decade

and the DPW is quite crucial, especially given that the DPW is mandated to be the custodian and manager of all national governments’ � xed assets, which translates as follows: “Government is the single largest landlord, tenant and client of the property industry in the country.”

In 2008, as stated by the then-Minister of Public Works Thoko Didiza, the DPW owned 240 038 properties across South Africa, of which 163 036 were o� ce and living quarters and 77 000 were land parcels. In 2014, SAPOA and the DPW announced they would be working in partnership to tackle property-related issues; this was then con� rmed through the signing of an MOU between the parties in 2015.

The glue that holds these three organisations together is the word “transformation”, and each entity aims to use its own mandate to facilitate this process. To clarify this aspect, it is important to acknowledge each party’s o� ering.

The SACN is known for its extensive work on South African cities. Its work encourages the exchange of information, experience and best practices on urban development and city management, with particular focus on the following three themes: city development, inclusive cities and sustainable cities. SAPOA, on the other hand, is the biggest organised formation for property owners in the country. It is the “voice” of commercial property and is recognised as the representative body and o� cial voice of the

commercial and industrial property industry in South Africa, with a combined portfolio of more than R500-billion. SAPOA members control about 90% of all commercial and industrial property in South Africa.

The DPW is constitutionally mandated as the custodian and manager of all national governments’ � xed assets. This is done through the determination of accommodation requirements, rendering expert built environment services to client departments, and acquisition, maintenance and disposal of state assets. In simple terms, the DPW is mandated as the “handyman” of the state, the “leader” of the Expanded Public Works Programme (EPWP), the regulator of industries and associated professions falling under its jurisdiction, and the asset manager for (and on behalf of ) the state.

There are numerous initiatives that emphasise the work the three entities are involved in terms of transformation (and their commitment to the processes thereof ) – but the focus in this instance is speci� cally on the EPWP. In simple terms, the EPWP is government’s deliberate intervention to alleviate poverty and unemployment. According to the Centre for Development and Enterprise, the South African government implemented the � rst large-scale public-employment programme in the 1930s in response to the Great Depression. At the time, the target was “poor whites”.

The Expanded Public Works Programme is South Africa’s initiative to address unemployment

Lekgolo Mayatula is SAPOA’s Planning and Development Manager


planning and development

It is important to note that

SAPOA and SACN have signed a

memorandum of understanding

(MOU) that encourages both

entities to work together on

matters affecting the development

and management of cities

The programme reached approximately 230 000 people, who were then incorporated into the employment pool of the mainstream economy.

There were several limitations to this programme, but the learnings that transpired from the process proved that public works initiatives could be paid for from existing government budgets, and that such initiatives could be phased out when they were no longer needed.

Public employment programmes have been a consistent component of government’s intervention, and although they were implemented under di� erent titles, it was evident that these programmes could be successfully implemented through an intergovernmental aligned approach and in partnership with various stakeholders. It was in the 1990s that evidence of the partnership approach was demonstrated; and in 1992, the government, the private sector (construction industry) and labour (trade unions) drafted a framework agreement that involved the use of labour-intensive methods for the construction of infrastructure projects. Although the agreement was never implemented, it highlighted two very important aspects which were:

● That the private sector was invited by the government to participate in the public works initiative and they agreed; and

● That an agreement was made with the unions on work and rates of pay.

The current situation is that although the EPWP projects are being implemented, there has been a breakdown in trust relations between the government and the private sector, and this has led to many

initiatives being implemented by the government (in partnership with community- and state-owned entities). The results of these initiatives have not been far-reaching. The envisioned outcome of having participants incorporated into the mainstream of the economy has not been realised, and this has been a great disappointment for the millions of employment-seekers, especially the youth of the country.

However, this is not a story of doom and gloom – for that is not the narrative to our story,

the South African story. Amid the economic downturn, the increase in in� ation, the increase in food prices, the increase in interest rates and the hard times that are being forecast, there lies a silver lining – the innovative spirit that resides within this continent and this country; the spirit that takes something ordinary and turns around into something extraordinary that commands worldwide recognition.

For example, the responsibility of governments to grow their economies through the development and implementation of initiatives that facilitate employment (especially for the economically active) is not a new phenomenon. But in the case of the EPWP programme, the slight adjustment is that the programme is not solely based on infrastructure delivery (through public employment programmes) but also focuses on the environmental and social sectors. Along with India’s Mahatma Gandhi National Rural Employment Guarantee Scheme, the South African EPWP is held in very high international esteem, and the United Nations International Labour O� ce uses it as a reference point in its regular international learning forums.

Some of the successful EPWP programmes include;

● The innovative museum-based projects piloted in Hout Bay, and the Seedlings Museum (Long Street) conducted by the Western Cape Department of Culture & Sports. The project employs young community members and unemployed graduates to digitise the museum collections, and through outreach activities connects local communities with their history.

● The Zibambele road maintenance household contractor system, initiated by the KwaZulu-Natal Department of Transport, which employs approximately 48 000 (mainly female-headed households). The project allocates each household half a kilometre of nearby secondary road, and they are required to maintain this on a monthly basis (two days a week is the allocated duty time).


planning and development

● The Working on Fire programme, which trained and employed more than 5 500 young � re-� ghters, of whom 50 were recently requested to help � ght runaway wild� res in Canada.

There are many EPWP initiatives that have produced great results – and of course there are those that have not been as successful because of various reasons. But this has not deterred government from entering into its third phase – the � ve-year cycle of this programme. It is from this angle that the narrative of the EPWP should be explored, especially given that there has been great work done by the various entities, which needs a platform to showcase itself.

For example, the DPW acknowledges that it has not adequately managed its assets, and therefore it is committed to developing internal systems (inclusive of education) to address this shortcoming. SAPOA conducted a skills-development research study, which highlights the required skills and identi� es the shortfalls within the industry. The research also identi� es the growth/decline of jobs experienced by the industry over the past 10 years.

The SACN continues to engage with the various municipalities, facilitate engagement platforms and produce research that directly links to the development of cities.

It is clear that there are positive synergies already in place. The next target is for these to combine – and then a powerful transformation chapter can be produced within the property sector.

The big question is whether there is willingness and genuine commitment by all entities to work together on this.

The SACN is renowned for its extensive work on South African cities. Its work encourages the exchange of information, experience and best practices on urban development and city management, with particular focus on the following three themes: city development, inclusive cities and sustainable cities


legal update

Certificate of occupancy

The National Building Regulations and Standards

Act (Act No. 103 of 1977) the “Act”, was assented to on 22 June 1977 and commenced on 1 September 1985. The Act provides for the promotion of uniformity in the law relating to the erection of buildings in the areas of jurisdiction of local authorities; for the prescribing of business standards; and for matters connected therewith.

Section 14 of the Act provides as follows:1. A local authority shall

within 14 days after the owner of a building of which the erection has been completed, or any person having an interest therein, has requested it in writing to issue a certi� cate of occupancy in respect of such building

a) issue such a certi� cate of occupancy if it is of the opinion that such building has been erected in accordance with the provisions of this Act, and the conditions on which approval was granted in terms of Section 7, and if certi� cates issued in terms of the provisions of subsection (2) and, where applicable, subsection (2A), in respect of such building have been submitted to it;

b) in writing notify such owner or person that it refuses to issue such a certi� cate of occupancy if it is not so satis� ed or if a certi� cate has not been so issued and submitted to it.

1a) The local authority may, at the request of the owner of the building or any other

person having an interest therein, grant permission in writing to use the building before the issue of the certi� cate of occupancy referred to in subsection (1), for such period and on such conditions as may be speci� ed in such permission, which period and conditions may be extended or altered, as the case may be, by such local authority.

2. Any person licensed or authorised by a local authority to carry out the installation, alteration or repair of any electrical wiring connected or of which connection is desired with the electrical supply or distribution works of such local authority or any statutory body, shall, at the request of the owner of a building of which the erection has been completed or of any person having an interest therein or of the local authority, issue a certi� cate if they are satis� ed that the electrical wiring and other electrical installations in such building are in accordance with the provisions of all applicable laws; [Subs. (2) substituted by S.4(a) of Act 49 of 1995.]

2a) Upon completion of the erection or installation of

a) the structural system; orb) the � re protection system; orc) the � re installation system of any building, the person

appointed to design such system and to inspect the erection or installation, shall submit a certi� cate to the local authority indicating that such system has been designed and erected or installed in accordance with

the application in respect of which approval was granted in terms of Section 7. [Subs. (2A) inserted by S.7(c) of Act 62 of 1989 and substituted by S.4(b) of Act 49 of 1995.]

3. Any person who for the purposes of subsection 1

a) submits a certi� cate contemplated in subsection (2) or (2A) that’s substantially false or incorrect, knowing the same to be false or incorrect; or

b) in a fraudulent manner issues or obtains a certi� cate contemplated in subsection (2) or (2A), shall be guilty of an o� ence.

c) The owner of any building (or any person having an interest therein) erected or being erected with the approval of a local authority, who occupies or uses such building or permits the occupation or use of such building

(i) unless a certi� cate of occupancy has been issued in terms of subsection (1)(a) in respect of such building; (ii) except insofar as it is essential for the erection of such building;(iii) during any period not being the period in respect of which such local authority has granted permission in writing for the occupation or use of such building or in contravention of any condition on which such permission has been granted; or,(iv) otherwise than in such circumstances and on such conditions as may be prescribed by national building regulation, shall be guilty of an o� ence.4. The Minister may, on such

conditions and for such period as he may think � t, by notice

This legal opinion is only a guide

and should not be copied with the

expectation that it will serve each party’s individual

circumstances. Most of these

recommendations have not been tested in our courts. SAPOA

cannot guarantee any success in any

court if any of these recommendations

are put to use.

The importance of being in possession of an certifi cate of occupancy cannot be overemphasised – it is indicative of the fact that a building has been erected in accordance with the provisions of the Act


legal update

The Act provides for the promotion

of uniformity in the law relating to the erection

of buildings in the areas of jurisdiction of local authorities; for the prescribing

of business standards; and for matters connected

therewith


legal update

in the Gazette suspend the application of this section in the area of jurisdiction of any local authority.

Certi� cate of Occupancy was only introduced into the National Building Regulations after 1987. The Act provides for a situation where a Certi� cate of Occupancy is provided by the Local Authorities Building Control O� cer at the time of completion of construction. The Act is silent as to the situation where a Certi� cate of Occupancy is applied for post-construction, such as the case of a lost certi� cate. A Certi� cate of Occupancy can be obtained for a long-completed building, after resubmitting such building plan application, but the existing building would need to comply with current building regulations and not the building regulations at the time the building was built. The buildings, in most cases, were not designed and built using the current regulations, making compliance to new legislation impractical and in most cases impossible due to the exuberant building costs. The fact is that the building exists, was constructed in terms of the legislation applicable at the time of construction, but due to unforeseen circumstances has unwittingly become foul of the current legislation, due to no fault of the owner of such property.

It is the responsibility of the property owner to ensure that all its buildings satisfy the Act, which has as its aim to ensure that all buildings are constructed in a manner that would ensure the occupants are a� orded buildings that are structurally sound and safe. It goes without saying that older buildings should meet acceptable safety standards, and in all instances satisfy such requirements. In recent years, the Regulations have been

expanded to establish minimum requirements relating to an aspect of environmental sustainability.

Notwithstanding, keeping the building to the highest standards of safety the directors of the property owner are exposed to the risk in terms of damages as well as a potential prison sentence of 12 months when the property owner is in breach of the Act.

In an e� ort to minimise the risk to the owner, a structural engineer is employed to certify such building as being compliant. To obtain a structural certi� cate, signi� cant expenditure would be required to verify the structural integrity of the components of the building. This would include but not be limited to the exposure of foundations, slab coring, concrete testing and the measurement of in-situ structural members. In the normal course of ensuring that the building is structurally sound and safe to occupy, these tasks identi� ed above are not needed by the structural engineer since the structural engineer is able to gain comfort on the buildings’ soundness based on close inspection and assessment of the building without intrusive investigation like exposing the foundation or slab coring.

Members in their capacity as property owners have been placed in a di� cult position.

They have numerous old buildings that date back several decades, and due to unforeseen circumstances are no longer in possession of the approved building application and similar documentation, which includes the certi� cates of occupancy.

Some serious changes have been implemented in terms of the Act of 1997:

● Fire requirements: all buildings built after 1997 require at least two � re escapes. This impact on a building constructed before this date is not possible due to the fact that the building usually has already utilised its full use rights. It would mean the lettable � oor space would have to be reduced in order to provide the space to the � re escape. Please take note that this removal of lettable space would be required on each and every � oor of the existing building.

● Energy-e� cient requirements introduced in 2011 would require the building to be orientated north and that an envelope be established that would ensure the loss of energy from within the building. In most cases the current commercial buildings are not orientated north as they follow the outlay of the township and the property boundary.

● To comply with the latest ventilation requirements, for example, additional openings in the external façade may be required in the form of opening windows or roof vents. Where the introduction of fresh air is required to deep spaces with no access to the external façade, then mechanical systems would need to be installed. Neither the structure nor the ventilation poses any safety concern so the expenditure on these will be additional to what is required.

Serious challenges brought about by legislative changesThe provisions of the National Building Regulations and Building Standards Act shall apply in the area of jurisdiction of any local authority. This area of jurisdiction was limited to the municipal area de� ned as being the town and cities. The land outside the municipal area was described as being peri-urban and the Act did not apply within these areas.

The National Building Regulations and Building Standards Act was equally not enforced within the land described as homelands in terms of apartheid legislation. In total, 10 homelands were created in South Africa. These were the Transkei, Bophuthatswana, Ciskei, Venda, Gazankulu, KaNgwane, KwaNdebele, KwaZulu, Lebowa, and QwaQwa. Today the Act is not applied within the areas demarcated as being Community Land Trusts.

The Municipal Systems Act of 2006 created an inclusive South Africa that is governed by a system of wall-to-wall municipalities. This has the e� ect that all of the existing buildings within the above-mentioned areas have become unauthorised and are in contravention of the National Building Regulations and Building Standards Act. The owners of the properties within these areas cannot obtain “approved building plans”, nor can they obtain the required “occupancy certi� cates” required by the banking institutions for land transactions. The owners are not able to leverage the property to be able to access funds, to be able to trade with the property.

This turning of law-abiding owners of legally constructed buildings into contraveners of the Act by legislated changes we are sure were unintentional needs to be resolved.


legal update

In recent years, the Regulations have been expanded to establish minimum requirements relating to an aspect of environmental sustainability


convention

Forging a relationshipSAPOA partners with Joburg Property Company for the 50th Anniversary Convention

As a custodian of

municipal property,

we have a very

exciting story to tell

– a journey where

we invite a dynamic

partnership with the

private sector and the

community at large

The Joburg Property Company (JPC) was announced as the platinum sponsor

for the SAPOA 50th Annual Convention and Property Exhibition.

Chief Executive O� cer of the JPC Helen Botes said they have been partners with SAPOA over a number of years, and thought this year to be a very special collaboration. “We are pleased to be partnering with SAPOA on this, their 50th anniversary,” she said. “As a custodian of municipal property, we have a very exciting story to tell – a journey where we invite a dynamic partnership with the private sector and the community at large.

Botes highlighted the vision of the JPC, and what they hope to achieve through this partnership. “The City of Jo’burg owns approximately 30 000 parcels of land covering more than 77 000 hectares, with a municipal value of R8,7-billion,” she said.

“Land remains one of the catalysts that enhances economic growth for all. Therefore, we would like to have this engagement with the private sector on how we, as a municipality, can use council land to achieve these economic, social, � nancial and transformation goals and objectives.”

SAPOA Chief Executive O� cer Neil Gopal said that such partnerships are vital to the success of the property industry. “Not only is this a milestone for SAPOA in that we are celebrating our 50th anniversary as an industry body, but it is a � rst for us to have a public sector body partnering at this level,” he said. “Much of this would not be possible without the support of sponsors such as JPC, and we know that our relationship does not end after the Convention. Rather, it is the start of an ongoing exchange.”

CEO of Joburg Property Company (JPC), Helen Botes, with SAPOA CEO Neil Gopal

By Maud Nale

convention


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The 50th Annual Convention and Property Exhibition will take place from 21 to 23 June 2016 at the Sandton Convention Centre in Johannesburg. This three-day event provides the opportunity to meet and network with industry leaders and discuss the latest trends in commercial property, and is a unique forum to learn about development within the South African government and the private sector.

Registration is still open – please visit Sapoaconvention.co.za.

Zanele Mamba, Head of Marketing at JPC speaking at the event

Stakeholders at the event


interview

The lifeblood of conveyancingSAPOA speaks to an accomplished property professional who is well-versed in the conveyancing fraternity

Zukiswa Ntlangula holds BJuris and LLB degrees as well as master’s diploma in

human resources and a diploma in project management. Her wealth of experience is what has earned her the daunting role of being the Chairman of the Black Conveyancers Association (BCA).

She wears many hats in her professional life. She is the founder and Director of Ntlangula Inc, a property and corporate-commercial law firm based in Sandton, and has served in various strategic roles including at Ntsebeza Inc Attorneys, Bowman Gilfillan Inc Attorneys, Deloitte Consulting SA (as a change management specialist), and Thebe Investment Corporation as the group’s company secretary.

She answers five pivotal questions in her capacity at the BCA.

What is the main role of the BCA?It is an organised formation of black conveyancers whose aim is to engage industry stakeholders, including government on the achievement of transformation goals and to open opportunities to black conveyancers. In addition, BCA provides a platform for its members to discuss pertinent industry issues. We provide training and development of professionals and secretaries through the BCA Training Academy. Our participation as one of the founding members of the Black Business Council (BBC) plays a pivotal role in influencing policy changes relating to economic transformation in South Africa. We also partner with the Department of Rural Development and Land Reform, where we participate in policy discussions on land reform.

By Nthabi Nhlapo

● Served as a member of the Gauteng Gambling Board, as well as a member of its Audit and Risk Committee. In this role, she was appointed as the South African representative on the Steering Committee of the International Association of Gambling Regulators.

● Is a non-executive trustee of the National Empowerment Fund (NEF). She is currently the Chairman of the Risk and Portfolio Management Committee and a member of the Audit Committee of the NEF.

● In September 2012, she was appointed as a Non-Executive Director of the Board of Alexkor SOC Ltd, where she is a member of the Audit Committee and the Social Ethics and HR Committee.

● She is also a Director at Glencore Operations South Africa and a trustee of Katlego Trust ESOP.

Zukiswa Ntlangula’s involvement in the property industry

Zukiswa Ntlangula with SAPOA CEO Neil Gopal and SAPOA President Mike Deighton during the recent MOU signing


interview

In terms of the work that the organisation is doing, do you believe your goals are being met?It has been a long journey. In 2014, we celebrated our 10th year in existence – we hosted a gala dinner that was attended by the Minister of Human Settlements Lindiwe Sisulu. At our event, and at the National Human Settlements Indaba, she announced the BCA as a partner to the National Department of Human Settlements in delivering title deeds to the people of South Africa for both pre-1994 and post-1994 stock. Some of our members have been appointed by provincial departments to attend to these registrations. There is room, however, to increase the number of black conveyancers attending to these registrations because of the magnitude of the backlog and the critical nature of this work. Remember, a title deed serves to restore and promote the dignity of our people by granting them security of tenure. Importantly, it stimulates the economy as people can get commercial bank loans to start small businesses and use the title deed as security.

In terms of transformation in property ownership, what do you think your member firms can do to address the issue?Our members are currently attending to registration of transfers in respect of RDP houses. These instructions come with many challenges, from township establishment processes not being done timeously to the beneficiaries of some RDP houses having passed away before registration so the deceased estate issues need to be addressed to enable the conveyancer to transfer to the estate and later to the rightful beneficiaries. Considering the challenges highlighted and the minimal fees paid by departments and developers, any conveyancer would shy away from these instructions. However, as the BCA we accept these instructions, recognising the critical role this work plays in social and economic transformation. Also, for some of our conveyancers, this work provides an avenue to grow a legal practice.

The BCA recently signed an MOU with SAPOA. What are your expectations from this partnership?We are very excited about the MOU that we have signed with SAPOA. We are confident

that this partnership will yield measurable results. Already we are in discussions with one of the key members of SAPOA about how our members can be included in the supply chain processes so that they can benefit from legal work instructions should they meet the agreed criteria. We are hopeful that other SAPOA members will act likewise. The MOU is rich in many ways: it gives our members the opportunity to attend SAPOA training events and partner in annual road-shows; it provides access to the extensive SAPOA data research to inform our planning and further development; and it provides our members with networking opportunities. In turn, the BCA members avail themselves to join SAPOA, as well as to provide quality professional legal services to SAPOA members.

What other organisations is the BCA affiliated with or has an agreement with?About five years ago, the BCA signed an MOU with Absa bank, in terms of which 30% of home-loan approvals are allocated to BCA member panel attorneys. For us this was a huge milestone – it meant that Absa was taking economic transformation seriously. We also have MOUs with Jawitz Properties, Pam Golding, Standard Bank, the Estate Agency Affairs Board (EAAB), Korbitec and Juta. (The latter two are our partners in the BCA training academy.) Our relationship with the EAAB has yielded great results for the BCA – the BCA partners with EAAB in their annual road-shows, where the BCA presents the latest developments in conveyancing law and practice. In addition, the EAAB is mandated as an agency of the NDHS to coordinate the title deed registration backlog project, and as signatories to the Social Contract we signed with the Minister of Human Settlements in 2005 and in 2014 (renewing our commitment to the Social Contract), we are confident of positive results for our members.

BCA also partners with Property Sector Charter Council in Property and Construction Career Week, where our members present on conveyancing, thereby enabling students to make informed career choices.

Our focus is to ensure that all these partnerships yield positive measurable results for the mutual benefit of our members and our stakeholders.

Already we are in discussions with one of the key members of SAPOA about how our members can be included in the supply chain processes so they can benefit from legal work instructions, should they meet the agreed criteria.

The Black Conveyancers Association (BCA) was formed in May 2005 in response to the historical inequalities in the conveyancing industry. As the only identifiable, credible black conveyancing organisation, it is instrumental in advancing and representing the interests of black conveyancers nationally.

Objectives ● To advance and represent the

interests of black conveyancers practising for their own accounts, as well as conveyancers employed by wholly owned bona fide black legal practices;

● To advance, promote and represent the interests of all black conveyancers, private companies, developers, private individuals and the general public, and to do such other things as are incidental and conductive to the attainment of the other objectives;

● To ensure compliance by all institutions with black economic empowerment legislation, regulations, charters and codes; and

● To advance the reservation of conveyancing work in all spheres of government, local councils, financial institutions, corporate, private companies and developers for specific firms accredited by the Black Conveyancers Association.

About the BCA


research

Managing risk, avoiding lossProperty investment in South Africa is still preferred over holding cash reserves by investors, according to research

In 2016, it is expected

that even buyers will

begin to show a

resistance to investing.

It is likely investment

transactions will decline

as a result of weaker

investor confi dence.

Businesses are

expected to delay

decision-making in the

market because of

economic uncertainty,

leading to a decline in

commercial property

transactions

The latest research from JLL South Africa shows that the

trend in commercial property investment activity in South Africa in the past year has been one of managing risk and avoiding loss in the South African economy, increasing the preference to hold property as opposed to cash reserves.

“While R18,5-billion was invested in various types of commercial real estate in 2015, it is likely that more could have

been invested had more properties been available,” says Zandile Makhoba, Head of Research: South Africa at JLL. “As in 2014, asset holders have continued to retain valuable accommodation, starving the market of prime-quality investments. However, with the rising in� ationary environment eroding the value of cash reserves, businesses showed a willingness to invest in lower-quality accommodation,

accepting what was available in the market at the bene� t of slightly higher yields. Strategically, this is also seen as an investment in potential rather than immediate bene� ts.”

Key out-takes from the report include the fact that 2015 saw a greater geographical spread in investment than previous years. With investors preferring to hold on to assets in major cities like Johannesburg, Cape Town and Durban, Zandile Makhoba, Head of Research:

South Africa at JLL

Total number of transactions by sector

154Total number of

transactions

O� ce Retail Industrial

28

56

85

39

70 44

41

22

12

21

40

32

42

44

48

112Total number of

transactions

148Total number of

transactions

122Total number of

transactions

88Total number of

transactions

2013

2012

2011

2014

2015

research


C

M

Y

CM

MY

CY

CMY

K

277X86 GOLF DAY AD - PROP REVIEW.pdf 1 2/12/16 10:47 AM

buyers showed a willingness to take on the higher risk associated with accommodation in smaller cities, at the advantage of higher yields and geographical diversi� cation.

Provinces with smaller cities saw the highest investment value in � ve years at R3,1-billion, with R1,5-billion invested in o� ce accommodation.

Portfolio transactions contributed substantially to overall real estate investment activity in 2015, dominated by Investec, Delta, Dipula and Equities Property Fund.

With the shortage in supply, investors showed a willingness to pay a premium for retail accommodation in 2015 as the sub-sector has shown strong performance in the past few years, despite the challenging

economic climate. In 2016, it is anticipated that even buyers will begin to show a resistance to investing. It is likely that investment transactions will decline as a result of weaker investor con� dence. Businesses are expected to delay decision-making in the market because of economic uncertainty, leading to a decline in the number of commercial property transactions.

There has also been a rise in investor con� dence for green� eld projects, particularly in the larger cities, which is partly attributable to the decline in prime properties available for investment in the secondary market. This may caution investors away from older stock. Location is likely to become more important than quality for buyers in the prevailing market conditions.

With limited availability of existing properties to invest in, the economic slowdown presents the advantage of time for investors interested in brown� eld developments in preparation for an upturn in the economy.

“Although overall yields saw an increase in 2015, the change was not as signi� cant as the market may have expected following several interest rate hikes since 2014,” says Makhoba. “High levels of liquidity and the ongoing demand in the real estate market are likely to see these values remain unchanged, especially in higher quality asset classes.”

Transaction summary: 2015

O� ceR7 573 019 699

Transaction value

733 058m2

Total GLA (m2)

70Volume

(number of transactions)

R10 331ZAR/m2

10,5%Yield

IndustrialR5 242 594 281

Transaction value

424 883m²Total GLA (m2)

44Volume


R9 686ZAR/m2

10%Yield

RetailR5 734 118 882

Transaction value

451 750m²Total GLA (m2)

40Volume


R12 693ZAR/m2

9,4%Yield

With limited availability

of existing properties to

invest in, the economic

slowdown presents the

advantage of time for

investors interested

in brownfi eld

developments in

preparation for an

upturn in the economy


theme leader


Emerging Markets Consumer Survey Consumer sentiment was negatively affected by 2015’s challenging economic and market backdrop. However, contrasts exist, with India, China and Saudi Arabia remaining robust

The Credit Suisse Research Institute published its sixth annual Emerging

Consumer Survey – a detailed study pro� ling consumer sentiment and its drivers across the emerging world. With investor sentiment showing signs of improvement in emerging markets and currencies stabilising, the study provides a timely focus on the opportunities that exist within one of the most powerful investment themes in the emerging world – a fast-growing consumer culture driven by a rapidly expanding young middle class with access to technology. To undertake this project, Credit Suisse has again partnered with global market research � rm Nielsen to conduct nearly 16 000 face-to-face interviews across nine emerging economies – Brazil, China, India, Indonesia, Mexico, Russia, Saudi Arabia, South Africa and Turkey. The research is unique in benchmarking consumer behaviour across these countries, posing nearly 100 questions to provide a granular analysis of the pro� le, mood and behaviour of di� erent emerging consumers, and the potential of speci� c products and end-markets.

“Our study continues to provide a timely insight into the drivers of consumer sentiment across the emerging world,” said Stefano Natella, Head of Global Market Research at Credit Suisse. “Our analysis suggests that over

the last two years, nearly 100-million new households across our survey countries have found their way into the middle class. Aided by innovations in technology, e-commerce and an optimism broadly driven by the younger consumer, the analysis delivered in this report continues to suggest that even in a challenging economic cycle, structural investment opportunities will continue to bene� t investors.”

“Weak currencies, political risk and commodity exposures all contributed to the wide range of consumer sentiment expressed in this year’s report,” said Giles Keating, Deputy Global Chief Investment O� cer at Credit Suisse. “The negativity in Russia, South Africa and Brazil contrasted sharply with the relative optimism apparent in India, China and Saudi Arabia. A granular understanding of the factors in play is key for investors looking to judge the range of risks and opportunities across these markets.”

COUNTRY HIGHLIGHTSBrazil: Another tough year aheadThe impact of the severe economic slowdown we are witnessing in Brazil – projected to be the worst this century – is clear in the survey. In the past, Brazilians always ranked among the more optimistic consumers, even at the beginning of 2015. This time, they have fallen

Credit Suisse expects

down-trading in Russia to

continue throughout 2016 in

contrast to other emerging-

market countries, although

the second half of the year

should benefi t from the

already weak base. We

might observe some

accelerated purchases

of consumer electronics

and other durable items,

in the event that the rouble

devalues sharply again


theme leader

25SOUTH AFRICAN PROPERTY REVIEW 25SOUTH AFRICAN PROPERTY REVIEW

below the average in nearly every benchmark of consumer con� dence. As a result, Brazil has fallen to eighth in the scorecard, and last when consumers were asked whether now is a good time to make a major purchase.

The hostile economic environment is clear in spending patterns.

In products with higher penetration, there was also a signi� cant decrease in the spending on cosmetics, beer and even internet access, which had been relatively inelastic in prior surveys. A notable change has been an increase in spending on further education, which could be explained by consumers looking to improve their skills as a way to better their position in a more competitive and tougher marketplace.

China: The young emerging middle class Despite the prevailing concerns over the health of the country’s economy, Chinese consumers demonstrate higher con� dence levels in income growth and personal wealth, and expect less in� ation pressure. Consumption penetration in most categories recorded growth in 2015 compared to the previous year.

The Chinese e-commerce market is the largest in the world, and China has been one of the clear success stories as far as e-commerce is concerned. Online shopping continues its strong development, and we see multiple reasons why China’s online consumer spending looks set to continue. Internet-access penetration among our respondents surpassed 80%, and smartphone penetration reached 90%. We estimate that online sales will grow by 20% to 26% y-o-y in 2016-2018, accounting for 16% of China’s total retail sales in 2017 (up from 10% in 2014).

India: Top of the scorecard While there has been a degree of moderation in expectations after the initial post-election

euphoria, Indian consumers stand out among their emerging-market peers with higher con� dence about their current and future � nances, and relatively lower in� ation expectations.

The sharp divergence between rural (positive) and urban (negative) India has been a feature of recent surveys. The results con� rm a reversal, showing slower growth rates or higher declines in spending categories in rural areas. However, it is believed that a normal monsoon season, after two consecutive years of poor rainfall, will help revive rural fortunes.

Indonesia: losing some of its shine The survey’s consumer con� dence indicators in Indonesia have dropped this year, with in� ation expectations being a signi� cant negative. While expectations of consumers’ personal � nances and income momentum have declined, they still remain favourable

0 499 500 999 1000 1499 1500 1999 2000 2499 2500 2999

Mexico Turkey South Africa Saudi Russia Indonesia IndiaChina Brazil

Average household income per month (2015, USD PPP)

Figure 2

Household income distribution

Source: World Bank, Credit Suisse Emerging Consumer Survey 2016

80

60

20

0−499 500−999 1000−1499 1500−1999 2000−2499 2500−2999

100 % of households by market within each income brecket

0

40


Mexico Turkey South Africa Saudi Russia Indonesia IndiaChina Brazil


Figure 3

Aggregated household income distribution (2015 vs. 2013)


0

0−499 500−999 1000−1499 1500−1999 2000−2499


2015 2013

250

200

100

50

350 Number of households (m)

300

150

premiumization at work in India, which we focus on in our chapter on brands later in the report, essen-tially reflects the brand beneficiaries of the changing preferences of consumers clustered to the left in areas of staple products. Premiumization higher up the income scale means something very different, of course, in terms of the products and activities concerned (e.g. luxury goods and holidays).

If this is the snapshot, what is clear from this analysis is that the emerging consumer is on the move. In Figure 3, we compare the distribution now with two years ago. The chart is continuing the move to the right which we signaled in 2014, and in turn creating an ever-greater middle class. If we look at households in the USD 1000 – USD 2000 per month bracket, they have increased by 90 mil-lion in our surveyed countries in the last two years. Of course our survey does not replicate the emerg-ing world as a whole, with additional countries in Latin America and Africa notably absent. This would scale this story further.

15Emerging Consumer Survey 2016

Household income distribution

100% of households by market within each income bracket


80

60

40

20

00-499 500-999 1 000-1 499 1 500-1 999 2 000-2 499 2 500-2 999

MexicoChina

TurkeyBrazil

South Africa Saudi Arabia

Russia Indonesia India


BELOW An aerial view of Istanbul, Turkey (Photograph by Eusebius@Commons/Flickr.com)


theme leader

features for Indonesia compared with other survey countries. Notably, more Indonesians are looking forward to making a major purchase.

Income momentum has been positive since the survey was first conducted, and this remains the case. There are, however, some emerging areas of concern, including rising unemployment (6,2% in August 2015, up from 5,8% in February 2015).

Consistent with the previous years, Indonesians allocated the bulk of their income to food, followed by savings, housing and public utilities. Multinational brands continue to dominate most consumer products, similar to our findings in previous years’ surveys.

Mexico: A growing consumer culture The situation for Mexico has been improving in macro terms, and our survey has also seen rising trends. Notably, the percentage of consumers who think now is a good or an excellent time to make a major purchase increased from 32% of respondents last year to 49% this year, potentially supporting a stronger performance by discretionary categories.

The consumer story in Mexico remains promising over the long term, since (a) social mobility has not yet taken place, unlike in countries such as Brazil; (b) about 60% of the labour force remains informal; and (c) consumer credit penetration remains abnormally low, at about four percent of GDP, versus 10% to 19% for other countries in the region. In the longer term, perhaps the largest risk to Mexican consumers remains the need for further fiscal adjustments in light of lower oil prices, with about 18% of total government revenues coming from oil versus about 35% in the previous five years.

Russia: Macro pressures intensify The deteriorating economic environment has put significant pressure on the Russian consumer, and the survey findings suggest an exceptionally weak outlook from 2015 into 2016. Perception of future personal finance stays at the bottom (ninth), with expectations of personal finance in the next six months having fallen from eight percent to -6%.

The income inequality in Russia remains high. Even though all households have expressed depressed levels of optimism on income prospects, the lowest-income earners have seen the biggest deterioration since last year’s survey.

Credit Suisse expects down-trading to continue throughout 2016 in contrast to other emerging-market countries, although the second half of the year should benefit from the already weak base. We might observe some accelerated purchases of consumer electronics and other durable items, in the event that the rouble devalues sharply again. The potential turnaround point may depend on oil prices, budget constraints and the government’s willingness to increase pensions and public-sector employee salaries as elections approach. For now, weak real and nominal incomes paint a bleak picture.

Saudi Arabia: Consumer sentiment resilient to lower oil prices Perhaps surprisingly, the Saudi Arabian consumer moved up to share the number- two spot on our consumer confidence scorecard, from fifth spot last year. Despite the free-fall in oil prices in 2015, consumer appetite for spending remains strong, with most Saudis envisaging an increase in their spending on general discretionary products. The consumer has been insulated from the pressures which the oil price weakness may have had on other aspects of the economy, given a strong buffer of foreign exchange reserves, low levels of debt and a currency that remains robust.

Saudi Arabia again ranked best among the nine countries when asked, “In your opinion, is now a good time to make a major purchase?” Fifty-three percent of respondents said it was at least a good time for a major purchase, and 23% of those thought it was an excellent time.

South Africa: Multiple challenges South Africa once again ranks at the low end of a range of the survey’s indicators with continued disparities between income groups. The 2015 survey shows a marked


BELOW Cape Town, South Africa

South African consumers face

multiple challenges in 2016,

with higher inflation as a

result of severe drought

conditions and a weak

currency, as well as likely

interest rate increases

demanding a higher share

of already constrained

disposable income. The

prospect of job cuts in

the mining industry looms

large, and will likely place

further pressure on low-

income households

theme leader


decline in overall consumer confidence, and not only has the gap between high- and low-income groups increased, but much reduced optimism in the middle-income groups was also evident. A net four percent of respondents expected their personal finances to improve over the next six months – considerably lower than 11% last year.

Inflation expectations are elevated and a net 65% of respondents expected higher inflation, compared with the survey average of 46%. This contrasts with only a net 1,5% of consumers anticipating increased income over the next 12 months. The majority of consumers still did not believe that now was a good time to make a major purchase, although sentiment was less negative than last year. Perhaps surprisingly, those who stated that they had no extra money for saving declined from 38% to 30%, putting South Africa below the survey average of 32%.

There remain large disparities between low- and high-income earners, which further increased in 2015. Of note was a marked deterioration in the optimism of the low-income group (with monthly income below R3 000), with a net 16% anticipating that the state of their personal finances would deteriorate, compared with six percent the year before.

South African consumers face multiple challenges in 2016, with higher inflation as a result of severe drought conditions and a weak currency, as well as likely interest rate increases demanding higher shares of already constrained disposable income. The prospect of job cuts in the mining industry looms large, and will likely place further pressure on low-income households. Mid- and higher-income households will likely face further interest rate hikes this year and, combined with currency weakness, constrain purchases of higher-end, often imported products.

Turkey: Moving up the scorecard Turkey stands fifth, and thus in the middle of the scorecard, having risen from sixth last year and seventh in 2014. This progress is notable, given a track record of ingrained pessimism among Turkish consumers. Turkey has been the only country in the survey where personal finances are expected to improve, from a very low base of previous-year results. Inflation worries are also lowest. There is an implicit concern about the immediate outlook, with a net negative balance of 20% recorded for those seeing now as a good time to make a major purchase. Geopolitics may of course be an issue here.

In terms of policy, we are expecting a more benign environment for 2016 versus 2015.

Turkish respondents are considering the highest spending increase in “semi-discretionary items”, and consumer confidence indicators suggest that Turkish consumers are not yet convinced about making bulk purchases. There is already a good penetration of staples, and thus we think that any incremental disposable income is likely to be spent on “affordable-but-non-necessity” items such as alcoholic drinks, cosmetics and technology.

Source: Credit Suisse Emerging Consumer Survey 2016

Emerging consumer survey scorecard 2016

Rankings (6-12m horizon) Personal finances

Inflation expectations

Household income

expectation

Time for a major

purchase

Income history

Rank based on 5 factors

India 3 4 2 1 1 1 Æ

China 1 3 4 3 4 2 Ç

Saudi Arabia 4 2 5 1 3 2 Ç

Indonesia 2 7 1 4 2 4 È

Turkey 6 1 7 8 5 5 Ç

Mexico 5 6 8 5 8 6 Ç

Brazil 6 8 3 9 9 7 È

South Africa 8 9 6 6 6 7 Ç

Russia 9 5 9 7 7 9 È

LEFT The Shanghai skyline, China

theme leader

Turkish respondents are

considering the highest

spending increase in

“semi-discretionary

items”, and consumer

confidence indicators

suggest that Turkish

consumers are not

yet convinced about

making bulk purchases


theme leader

Africa’s slight economic slowdown will not discourage investment

Africa has been an attractive continent for foreign investment, but with the downward economic trend in some of its major countries, it faces uncharted territory

Over the past few years, Africa has been top of mind for foreign business

investment, and often referred to as one of the last frontiers for economic growth and development. But given the recent economic downturn and headwinds that the continent is experiencing, is the region still o� ering opportunity to investors?

The World Bank’s January 2016 “Global Economic Prospects” reported that sub-Saharan Africa’s real gross domestic product (GDP) grew at its lowest rate since 2009 in 2015, with a growth of a 3,4%. This was down from the 4,6% and 4,9% growth that was reported in 2014 and 2013 respectively.

Hennie Heymans, Managing Director of DHL Express Sub-Saharan Africa, says the company � rmly believes the African continent is still one of the last frontiers for growth, and that the region will continue to grow as it has over the past decade because of the vast number of unexploited opportunities available for local and foreign investors.

“The drop in GDP growth for the region over the past year shouldn’t deter investors,” he says. “Africa will continue to thrive, albeit at a slightly slower pace than previously. Similar to the global environment – which reported growth of 2,4% in 2015 (down 0,2% year on year) – it was a tough year economically for Africa. A drop in the demand for the continent’s commodities resulted in

falling prices, while declining currencies, political instability and El Nino causing widespread drought have also contributed to the region’s challenges. Despite this, the continent remains full of untapped prospects, o� ering growth opportunities in 2016 for those willing to seek them out.”

This is supported by the latest World Bank Africa’s Pulse. “The good news is that domestic demand generated by consumption, investment and government spending will nudge economic growth upwards to 4,4% in 2016 and to 4,8% in 2017,” said author and Acting Chief Economist: World Bank Africa Region Punam Chuhan-Pole about the report’s � ndings.

The report highlights that speci� c regions have higher growth prospects than others. Cote d’Ivoire, Ethiopia, Mozambique, Rwanda and Tanzania were listed as countries expected to sustain a growth of approximately seven percent per year in 2015-2017. This was attributed to large-scale investment in energy and transport projects, consumer spending and investment in the resource sector.

Heymans says that, based on DHL’s experience, each country o� ers unique growth opportunities. “In Ethiopia, for example, the telecommunications sector is a large contributor to GDP,” he says. “It was reported that the country had 40-million mobile subscribers and 10-million internet

connections in 2015. But with a population of more than 90-million, the sector has capacity to double its contribution to GDP.

“In Mozambique, the retail sector is o� ering huge opportunities. With a growing middle class and shopping culture as well as a limited availability of common products, this sector o� ers opportunities for both small and large businesses.

“With Rwanda’s ambition to become a regional information and communications technology (ICT) hub, there has also been a stronger demand for communication devices and ICT-related equipment. Similarly, we’ve seen an in� ux of medical supplies in the country with a booming healthcare sector.”

Heymans adds that more countries in the region could be thriving if not for the underdeveloped infrastructure and bureaucracy. He points to the mining sector in Madagascar as one example. “This could be a potentially lucrative opportunity for investors because of the country’s coal, nickel and ilmenite resources but several legislative reforms are still needed,” he says. “The opportunities are clearly there. It’s all about having a long-term, sustainable focus on the region. As we move into the second quarter of 2016, DHL Express will continue to invest in sub-Saharan Africa, in our people and in our network, with the ultimate goal of seeing Africa thrive.”

Electricity supply in South Africa

160 Real GDPElectricity available for distribution150

140

130

120

110

100

90

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

Index 2001Q1=100

Capital � ow

50

40

30

20

US$ billions

10

02013 2014 2015

Equity issueBond issueBank issue

Source: Dealogic, Bloomberg


SAPOA events

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infrastructure that

improves our world.

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DOING BUSINESS”

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Contact www.bigenafrica.com, or the office most convenient to you: Pretoria (012) 842 8700; Johannesburg (011) 802 0560; Bloemfontein (051) 430 1423; Cape Town (021) 919 6976;

Durban (031) 717 2571; East London (043) 748 6230; Gabarone [email protected]; Kuruman (053) 712 2882; Mafikeng (018) 386 2111; Mthatha (047) 532 5234;

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Growth necessitySouth African listed property must maintain its growth

momentum despite challenging times

On the subject of

whether delisting is

a viable option for

struggling listed

property entities,

Reynolds says this

course of action may

have some merit.

“For listed entities

that are already

highly geared and

are struggling to

raise capital,

delisting may be

a viable approach”

At face value, South Africa’s listed property sector appears to have lost some of its

lustre in recent months. However, when one digs deeper into the performance of most of the assets underlying the companies and funds in the sector, they have been doing relatively well and continue to deliver on their promises to investors.

That’s according to Ken Reynolds, Gauteng Regional Executive for Property Finance at Nedbank Corporate and Investment Banking. He contends that, while one cannot ignore the immensely challenging macroeconomic backdrop against which companies in the listed property sector are currently operating, there are still opportunities to maintain some momentum and growth.

“Rising interest rates are pushing up the cost of borrowing and making it increasingly di� cult for listed property participants to do more business, while concerns about the possibility of a downgrade of the South African economy to junk status by global rating agencies is certainly compounding the challenges facing the sector,” he explains.

The knock-on e� ect of these economic challenges has materialised primarily as share price deterioration, making it di� cult for undervalued companies to raise capital and exerting downward pressure on their overall growth opportunities.

However, Reynolds says it’s not all doom and gloom for listed property. “Locally, the opportunity still exists for smart players to either acquire or develop quality assets at reasonable prices, or to embark on corporate activity in order to strengthen their positions.”

He also suggests prospects, particularly for those companies that are willing and able, to diversify internationally.

“For a number of sector participants, expansion into Africa is presenting a real opportunity to maintain the all-important growth momentum,” Reynolds says. “However, for those property companies that are unable to deal e� ectively with the vastly di� erent economics and political risks of African countries, setting their sights on opportunities to diversify further a� eld could also be a good strategy.”

He does o� er a word of caution for listed property companies seeking prospects internationally. “Successful global property

diversi� cation requires a wider view than just the property being targeted,” he says. “Companies or funds considering o� shore markets need to fully understand the economic fundamentals and drivers of the countries in which they are considering investing.”

He also emphasises that those looking to grow their portfolios internationally must cast their nets wider than just the obvious markets. “Areas such as central London and New York, while obviously attractive for property investment, are so sought-after that the prices have now become unattainable,” he says. “Listed property players would therefore do well to shift their focus outside of these obvious areas of high attraction – and even higher prices – to regions where the opportunities for sustainable yields are now far more appealing.”

He cites the midlands of England as a prime example of such an area, given that it has experienced a fairly depressed market for some time. This has now bottomed out and is likely to start o� ering some good investment growth prospects in the near future. Another appealing region highlighted by Reynolds is Eastern Europe, where an educated middle class is driving demand for commercial properties, which are currently in very short supply.

On the subject of whether delisting is a viable option for struggling listed property entities, Reynolds says this course of action may have some merit. “For listed entities that are already highly geared and are struggling to raise capital, delisting may be a viable approach,” he says. “However, this will only be the case if such delisting presents a real opportunity for the business to attract a strong backer and achieve better gearing.”

Irrespective of the approach taken, Reynolds emphasises that participants in South Africa’s listed property sector cannot a� ord to simply tread water. “Stagnation is not an option, and it is vital that participants in the sector quickly develop strategies that allow them to achieve some growth going forward,” he says. “That’s the only way the sector will successfully weather the current economic storm and still enjoy its historical position of market strength when the South African economy gets back on a solid footing.”

Ken Reynolds, Gauteng Regional Executive for Property Finance at Nedbank Corporate and Investment Banking


eye on the world

The hospitality of Filipinos is incomparable, and their sunset beaches and islands make the Philippines a destination that is hard to resist

Compiled by Merisca Scott

The mosaic beach paradise

The

WORLD series ● Our monthly country-by-country focus ●


▼ Population 98,39-million (2013, World Bank)▼ Capital Manila▼ Religions Roman Catholicism,

Protestantism, Islam, Buddhism▼ Area 300 000km²▼ Currency Philippine peso

▼ Languages Filipino (based on Tagalog) and English, as well as eight major dialects

▼ Life expectancy 70▼ GDP per capita US$4 600▼ Literacy percentage 96

Key facts


eye on the world

The national � ag of the Philippines (Filipino: Pambansang Watawat ng Pilipinas), also called the Three Stars and a Sun (Tatlong Bituin at Isang Araw), is a horizontal � ag bi-colour with equal bands of royal blue and scarlet, and with a white equilateral triangle at the hoist. In the centre of the triangle is a golden-yellow sun with eight primary rays, each representing a Philippine province. At each vertex of the triangle is a � ve-pointed, golden-yellow star representing one of the country's three main island groups – Luzon, Visayas and Mindanao. One of the stars originally referred to Panay (where Iloilo is located, the � rst province outside Luzon to have raised this � ag), which recent interpretations call as “representative of the entire Visayas region”. A unique feature of this � ag is its ability to indicate a state of war if it is displayed with the red side on top.

eye on the world


A sunset in the Philippines (Photograph by Kai Lehmann/Flickr.com)


eye on the world

The Philippines is a conglomerate of more than seven thousand islands, and home

to more than one hundred million people who live on only eleven of these islands.

The Republic of the Philippines, as it was formerly known, is located in Southeast Asia in the western Pacific Ocean.

It shares no land boundaries – but Taiwan, Vietnam, Borneo and Indonesia are all located across seas from the Philippines, which has a total land area of 300 000km². The land is divided into three main geographic groups of islands: Luzon, Visayas and Mindano.

The peopleThe official languages in the Philippines are Filipino (colloquially referred to as Tagalog) and English; however, an overwhelming majority (about 90%) of the population speaks English.

Minority languages include Bikol, Cebuano, Hiligaynon, Ilokano, Pampango, Pangasinense, Tagalog, Waray, Arabic and Spanish.

Almost 90% of the population is Christian, and 84% identifies as Catholic). Because of the largely Christian population, Filipinos observe the world’s longest Christmas season. It begins with the playing of carols in September and officially ends in January with the Feast of the Three Kings. As part of the festivities, Simbang Gabi (or Night Mass) is celebrated, during which Catholics attend nine services in a row leading up to Christmas Eve. If a person attends all nine masses, it is said their wishes will be granted.

The people of the Philippines display strong family ties, and the country has one of the highest birth rates in Asia. Forecasters say the population could double within the next three decades. Governments have generally avoided taking strong measures to curb the birth rate for fear of antagonising the Catholic church, but the current administration has managed to get a law passed in parliament that makes contraception more widely available.

The economyThe Philippines has recovered steadily from the 2008 world financial crisis, and now shows lower dependence on exports. In the same breath, efforts to improve tax administration and management of expenditure have helped to ease the Philippines’ tight fiscal situation and reduce overall debt levels. Nevertheless, government taxation and spending remain weak. The country has received investment-grade credit ratings on its sovereign debt under the Aquino administration, and has had little difficulty financing its deficits. Economic growth has accelerated, averaging six percent per year from 2011 to 2014; competitiveness has improved; and foreign direct investment hit a historic high in 2014, although it continues to lag compared with the rest of the region.

Unemployment has remained high, staying at about seven percent of the population, and underemployment is at nearly 20%. At least 40% of the employed work in the informal sector, so poverty affects about a quarter of the population. Infrastructure remains underfunded and the government is relying on the private sector to help with major projects under its Public-Private Partnership programme. Other long-term challenges include reforming governance, the judicial system and the regulatory environment, and improving the ease of doing business. The Philippine Constitution and other laws restrict foreign ownership in important activities/sectors, such as land ownership and public utilities.

The population enjoys shopping so the retail sector is booming, with giant shopping malls in cities such as in Manila. SM City North EDSA, located in Quezon City, is the biggest mall in Southeast Asia; and SM Mall of Asia in Pasay is the second-largest mall in the Philippines and the fourth-largest in the world.

▼ Current president Benigno Aquino III is the first president of the Philippines to be a bachelor. He is the son of ex-president Corazon Aquino, making him the second president to be a child of a former president. (His predecessor Gloria Arroyo was the other.)

▼ Of the top 10 largest shopping malls in the world, three are found in the Philippines: SM Megamall, SM North Edsa, and SM Mall of Asia.

▼ The Philippines is the world’s largest exporter of coconuts and tropical fruit such as papaya and mangosteen.

▼ The Philippines is the only majority Christian nation in Asia. Eighty percent of its population identifies as Roman Catholic.

▼ The Philippines is the world’s largest “supplier” of nurses: 25% of all nurses worldwide come from the Philippines.

▼ The Philippines is considered the text capital of the world. Every day, 35-million Filipinos send about 450-million SMS messages. This is more than the total number of daily text messages sent in the US and Europe combined.

Did you know?

eye on the world

ABOVE Fish drying in the sun (Photograph by Brian Evans/Flickr.com)BELOW The rainy season can wreak havoc in city streets (Photograph by Brian Evans/Flickr.com)


eye on the world

NatureThe Philippines is home of a diverse range of birds, plants, animals and sea creatures. There are nearly 200 species of mammals on the islands. The Philippine Tarsier is one of the smallest species of monkeys in the world. There are also more than 600 species of birds, more than 300 species of reptiles and amphibians, and at least 400 varieties of coral. You’ll also find everything from the giant whale shark to the world’s smallest fish (Pandaka pygmaea) in its waters. The Philippines also has the highest rate of discovery of new animal species, with 16 new species of mammals discovered in the last 10 years.

The islands are of volcanic origin, with the larger ones crossed by mountain ranges. Regardless of its natural beauty, the Philippines is prone to earthquakes and has more than 20 active volcanoes. You can expect to discover caves, lakes and waterfalls; and because the weather does not reach a point of extreme hot or extreme cold temperatures, it is perfect for tourism.

Philippines population growth from 2004 to 2014

Source: World Bank, © Statista 2015; additional information: Philippines

2008

2014

2007

2013

2006

2012

2005

2011

2004

2010

2009

0 10,50,25 1,25 1,5 1,75 2 2,250,75

1,81

1,94

1,67

1,55

1,49

1,48

1,51

1,56

1,61

1,59

1,59

Population growth compared to the previous year

eye on the world


ABOVE Mount Mayon is an active volcano on the island of Luzon (Photograph by Denvie Balidoy/Flickr.com)BELOW The skyline of the capital, Manila (Photograph by Ree Dexter/Flickr.com)

The Ifuago Rice Terraces in the municipality of Banaue (Photograph by Jojo Nicdao/Flickr.com)


on show

Mall of the South Zenprop Property Holdings’ Mall of the South is not only exceeding

retail-trading expectations from tenants and shoppers alike, but acting as a catalyst for residential and commercial

development in southern Johannesburg

By Anne Schauffer


on show

on show


It was in 2009 that Zenprop Property Holdings identified

numerous sites in the south of Johannesburg as potential locations for a retail scheme development, one of them being the intersection of Swartkoppies Road and Klipriver Drive in Aspen Hills. Research confirmed the huge retail appetite in this rapidly expanding area, and of all sites considered, this one ticked all the boxes for accessibility, flexibility and expansion opportunities needed to serve this burgeoning market well into the future. Strategically, the mall was not simply considered

in isolation as a response to retail demand, but as a catalyst for future residential and commercial development in the area.

“Visibility was critical, and infrastructure development and expansion were also important considerations,” said Zenprop’s Waldo Marcus about the guiding factors behind the mall’s design. “Market potential, site location, and the need for an up-market, well-appointed mall were the main drivers.”

Zenprop chose the strong name Mall of the South for the R1,8-billion investment as a reflection of the area and the community in which it operates.

The date set for the opening of the mall was 24 September 2015, and notwithstanding tight deadlines, a strike in the steel industry, and the complexities of accommodating about 175 tenants’ individual requirements, the doors opened right on time with 65 000m² of retail space and more than 4 200 parking bays. Both the latter elements were designed and built with the capacity to expand organically (possible expansion to 90 000m²).

Aveng Grinaker-LTE was the main construction contractor, and Aurecon South Africa (Pty) Ltd were the civil engineers

responsible for bulk earthworks and bulk services over a total site area of approximately 17 hectares (170 000m²).

Zenprop’s initial brief to the architects was clear: the company wanted a striking, contemporary world-class design, aspirational for the target market, incorporating plenty of natural light with excellent sight lines – vertically and horizontally – and highly efficient parking.

Imraan Ho-Yee, partner at Vivid Architects (principal designers), believes the Mall of the South stands shoulder to shoulder with the finest retail centres in the world:

on show



on show

“The design is contemporary, not themed, and executed with a timeless aesthetic so it’ll stand the test of time and not require a major refurbishment for decades,” he says. “The end product is iconic and a step forward for retail design in South Africa.”

He describes the backdrop to the mall’s journey. “It’s the very nature of most large commercial developments that change happens as part of that process,” he says. “We redesigned the scheme numerous times from the initial concept stage and,

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Owners and developersArchitectsMain contractorProject managersStructural engineersQuantity surveyorCivil engineersMechanical engineersTra� cFireElectrical engineersTenant coordinatorFire tanksHygiene/pest managementParking ManagementLifts and escalator consultantsHDPE rainwater and plumbing drainage

Meet the team

on show



on show

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indeed, throughout the process, from repositioning the proposed development on a very tight site, to going from a single- level retail centre of 30 000m² to a double-level one of 65 000m². These changes were driven purely by market demand – a potentially larger scheme was possible based on the interest indicated by potential tenants.”

Zenprop also took the decision to increase budget for the main façade – a dynamically shaped and formed triple-volume façade of glass and aluminium that, says Ho-Yee, “served as a unique selling point of the retail development. It led to a better design solution for the final product.”

Zenprop has been widely acknowledged as a leading shopping centre developer, and Project Manager and Principal Agent Bill McClatchy believes that here the company has

on show


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achieved that vital shopper feel-good factor. McClatchy has more than 60 shopping centres under his belt, and says, “The acid test is shoppers feeling comfortable getting to the mall, parking, and moving about in the space – and with the Mall of the South’s spacious, light-� lled space and � ow, it’s been achieved.”

The success of a retail centre is also dependant on consumer shopping habits, so aside from the easy � ow and supremely simple functionality of the mall, the design is elegant and uncluttered, with wide walkways and detailed � nishes. As prescribed by Zenprop, the architects achieved excellent

view lines and natural light in their design.

“From any level, you can see the shop fronts of the level above and below, which is key to the exposure and � ow of consumers,” Ho-Yee says. “We also have numerous double-volume cut-outs to aid these view lines. Natural light was

achieved with a virtually continuous central skylight that provides plenty of natural light throughout both levels of the centre, and which assisted greatly in reducing the need for arti� cial lighting.”

Viaan Kamfer of Quad Africa Consulting, electrical consulting engineers, believes that, given


on show

the size of Mall of the South – and the complexities of the tenant requirements – it was one of the smoothest projects they’ve designed, managed and costed. “Although the budget originally did not allow for LED lighting throughout the mall (excluding the carpark and the escape passages), when the tenders went out, LED had become a viable option,” he says.

“The Mall’s electrical metering system shows the resultant energy savings clearly.”

One of the biggest challenges with a project of this nature is the installation of bulk infrastructure in time for the project opening. “Developers continuously need to construct more bulk infrastructure themselves to facilitate the local council requirements,”

021 100 3615 | 082 567 8345 | [email protected]

“We would like to wish our client Zenprop well with their new Mall and thank them for their trust in us as Project Managers.”

on show


says Johan de Bruin of MLC Quantity Surveyors. “Historically, timelines for infrastructure projects have not been as tight as commercial projects. Managing the infrastructure improvements has almost become more important than the project itself – because the whole project can be at risk if the infrastructure is not in place.”

Parking and traffic flow is a critical element to make access and egress for the customer a pleasant experience – and here, access to the easily navigable parking levels is simple, efficient and logical. In line with Zenprop’s future plans, Mall of the South’s parking structure has built-in flexibility for future growth: the high floor levels enable

additional parking levels to be slotted in at a future date.

According to Marcus, the mall design differs from the conventional by activating the main external façade with shops and restaurants that look out onto the parking levels. Innovative features include extensive landscaping and tree-lined green spaces on the upper-level parking deck, with water features and restaurant seating areas.

Zenprop Property Holdings’ Mall of the South is a world- class shopping centre, delivered within time, quality and cost parameters. Equally important, the mall’s tenants are reporting ongoing successful trading above expectations.


SAPOA events


SAPOA events

REAP

Cliffe Dekker Hofmeyr’s (CDH) real estate and tax and exchange control practices have been on the forefront of the development of REITS; assisting clients in reaping these tax benefits through the conversion of a number of property companies and portfolios of collective investment scheme in properties into REITS. Our practices have also been involved with various renewable energy projects and complex development matters - indicating how diverse the market has become – and how in-depth our expertise lies. At CDH we believe that tax incentives can be a wonderful enabler to economic growth and are encouraged by the attempts to incentivise more property companies.

Cliffe Dekker Hofmeyr. The tax and exchange control legal partner for your business in Africa.

cliffedekkerhofmeyr.com

TLG

6644

FROM POWERFUL PARTNERSHIPS COME POWERFUL SOLUTIONS.

TAX AND EXCHANGE CONTROL


people in profile

Bright future for REITs as unlisted companies receive tax certainty,

equal treatment

Exciting times lie ahead for the real estate investment trust (REIT) industry

as current incentives help to drive growth and profitability.

There are a number of benefits of being classified as a REIT, including the fact that it can deduct for income tax purposes all distributions that it makes to its shareholders. As a REIT by its nature distributes most of its net income to shareholders, the REIT itself usually pays little or no income tax. Instead, the shareholder pays income tax on the distributions received from the REIT.

Distributions that are paid to non-resident shareholders are subject to dividends tax.

The main benefit associated with being a REIT, however, is that it is not subject to capital gains tax. This exemption enables a REIT to reinvest its capital to the extent that any of its properties may be disposed of. A general misconception exists that profits pursuant to the disposal of properties that are on revenue account are also exempt. This is not true. This is why a REIT should not engage in profit-making schemes as these profits would still be subject to income tax.

Unlisted property companies, for example, have not enjoyed the same tax certainty available to listed REITs. Various submissions have been made over the years to regulate this category of company, and steps have been under way since February 2015 to the effect that they will qualify for the same tax treatment as listed REITs, provided they become regulated. This has proved to be quite difficult as a champion for these type of companies first had to be identified. This champion seems to be the Financial Services Board. The current financing model used by unlisted property companies by making use of linked units comprising of a share and a variable rate debenture has been given reprieve until the end of 2016. On this basis interest payable by this type of property company, even though it comprises most of the profits of such a company, may still be deducted and is thus taxable in the hands of the shareholders, similar to listed REITs. Unfortunately there is no capital gains tax exemption available to unlisted property companies.

Cliffe Dekker Hofmeyr’s (CDH) real estate practice has been at the forefront of the development of REITs and has assisted clients in reaping these tax benefits through the conversion of a number of property companies and portfolios of collective investment schemes in properties into REITs. In this process, various rulings have been obtained from SARS and the position in this respect has been largely clarified. Among others clarity was also given on a scenario where a property is disposed of on day one in circumstances where it can only be transferred in the deeds office after expiry of a number of months given the delays in obtaining rates clearance certificates. From a tax perspective the disposal takes place when the agreement becomes unconditional irrespective of when the actual transfer takes place in the deeds office. We’re excited by these developments and believe they will be welcomed by the property sector. Emil Brincker, National Practice Head: Tax and Exchange Control at Cliffe Dekker Hofmeyr


people in profile

t: +27 (0)11 562 1063 [email protected]

www.cliffedekkerhofmeyr.com

This change needs to be seen in context. Section 25BB of the Income Tax Act was adopted in South Africa with effect from 1 April 2013 to govern the taxation of REITs. A REIT is a company that owns and operates income-producing immovable property. The definition of a REIT in the Income Tax Act refers to a company that is a South African tax resident whose shares are listed on the JSE as shares in a REIT, as defined in the JSE Limited Listing Requirements.

Consequently, the provisions of section 25BB of the Income Tax Act (and other related provisions) only apply to listed REITs, which requires that, inter alia, the REIT

● owns property with a value in excess of R300-million;

● maintains its debt below 60% of its gross asset value;

● earns 75% of its income from rentals; and ● must distribute 75% of its taxable earnings

available for distribution each year.

But unlisted developments need to be patient as regulations are still needed to govern the treatment in the unlisted property space. No doubt the unlisted property company sector will be eager for these regulations to be finalised and circulated for public comment.

We certainly hope the changes can happen fairly quickly as the benefits of expanding this industry remain very important. Despite some of the challenges in the local and African economies this year and despite the fact that China has slowed and pulled commodity prices down, there is still a lot happening in the real estate sector.

The capital muscle a REIT can bring will give many sectors a significant jump-start in the years ahead because Africa still needs infrastructure and related property development as the economies begin to diversify.

The Waterfall Estate development in South Africa is a good example of how robust the real estate sector remains. This development was referred to as “the biggest property development in South African history” by the Financial Mail in 2006. A recent report regarding the economic impact analysis of this development says the total economic impact of the development is approximately R106-billion. All properties in this development are not owned in freehold, but are held by a long-term lease (registered for an initial period of 99 years). Our role includes coordination, execution, and registration of residential and commercial leases in this development, and further legal advice when requested.

Our practice has been involved with various renewable energy projects and complex development matters as well, indicating how diverse the market has become. Our work on these technically challenging mandates, many of them demanding major market innovations, reflects our commitment to providing the sectoral expertise needed to ensure optimal outcomes are achieved for developments in South Africa and across the continent.

Can we expect further incentives going forward? In February, the Finance Minister did not specifically indicate whether the regulations will be available for property loan stock companies only or whether they will be available for property unit trusts as well. He did however only refer to unlisted property companies. It is anticipated that not all unlisted property companies will want to conform to the regulations. If these regulations are similar to the JSE Limited Listing Requirements, we can expect substantial report requirements, specific debt gearing ratios and a requirement to make minimum distributions within the year, which will not be suitable for all unlisted property companies.

It is our view that tax incentives can be a wonderful enabler to economic growth and we are encouraged by the attempts to incentivise more property companies.

The Regulations are keenly awaited as there will be several technical considerations to iron out because of the different models adopted by listed and unlisted companies when it comes to, for example, distributions.

Can we expect further

incentives going forward?

In February, the Finance

Minister did not specifically

indicate whether the

regulations will be

available for property

loan stock companies

only or whether they will

be available for property

unit trusts as well

Cliffe Dekker Hofmeyr’s (CDH) real estate practice has been at the forefront of the development of REITs and has assisted clients in reaping these tax benefits through the conversion of a number of property companies and portfolios of collective investment schemes in properties into REITs


workshop

SPLUMA is lawThe implementation of the new Act is under way and at different stages in the various municipalities. SAPOA found out more from various representatives who are tasked with ensuring adherence to the Act

SAPOA recently held a Spatial Planning and Land Use Management Act (SPLUMA)

workshop at its headquarters in Sandton to outline the necessary steps and processes in land use and land development applications as required to comply with SPLUMA, by-laws, regulations and applicable provincial legislation, as well as to give a basic understanding of SPLUMA in relation to land use and land development applications.

Representing the department of Rural Development and Land Reform, Ignatius Visser and Musa Hlungwani tackled several issues relating to the Act.

Some of these issues included: ● Municipal authority regarding

application process ● Categorisation of applications ● Who can submit an application? ● Application process phases ● Developing application

a� ecting national interest ● Applications leading to the

amendment of municipal land use schemes

● Advertisement notices

They also noted that the main purpose of SPLUMA is not only to bring change to the manner in which municipalities develop and implement SDFs, land use schemes and MPTs, but also to improve the application process.

From the Department of Rural Development and Land Reform Directorate: SPLUMA, Gauteng Province, Ashley Nkoe and Mamonyane Mokoena addressed transitional measures for the implementation of the Act and introduced the concept of “intervener status” in the land development process.

“SPLUMA will have various implications on the future operations of municipalities and provinces in terms of their current responsibilities and functions as per existing town planning and related development legislation,” explained Nkoe and Mokoena. “Of importance to the provinces and municipalities is the � nalisation of all the appeals, land use and development applications that have been submitted in terms of the land use legislation preceding the SPLUMA. In addition, there are implications on the Provincial Statutory Boards and their functions in terms of the existing

SPLUMA will have various

implications on the

future operations of both

Municipalities and Provinces

in terms of their current

responsibilities and functions

Compiled by Nthabi Nhlapo

Appeal procedures (recap)

Decision taken by authorised o� cial/MPT

Rights a� ected by decision

Appeal to municipal manager (21 days)

Municipal manager conduct a pre-hearing

process (not longer than 150 days)

Municipal manager submits appeal to

Executive Authority (14 days after pre-hearing)

Appeal

● Written submission

● Oral

Appeal authority

● Con� rm ● Vary ● Revoke

Inform of decision with reasons

Æ Æ Æ

ÆÆÆÆ

workshop


pieces of legislation, after the implementation date of SPLUMA.”

They added that it is within this background that transitional arrangements are required to deal with land use applications and the functions of the Statutory Boards for the applications submitted before and after the implementation date of SPLUMA.

To update the attendees, they stated that the Gauteng Planning Division has embarked on an engagement process with municipalities within the province of Gauteng in order to formulate transitional arrangements for the implementation of the Act. Another issue that was addressed was that of appeals as done by the Department of Rural Development and Land Reform’s Caroline Makhetha, who explained when appeals can be lodged, on what basis, by whom and the procedure that needs to be followed.

She notes that a lodged appeal is an application, and is subject to municipal application procedures and processes.

She says that appeals can be lodged 21 days after notice of the decision undertaken when the administrative action was not taken procedurally according to the Promotion of Administrative Justice Act, 2000, based on merits, undue delay or where rights have been a� ected by decision of MPT.

The City of Jo’burg, City of Tshwane and Ekurhuleni also updated attendees on progress in the implementation of the Act.

SAPOA Planning Manager Lekgolo Mayatula expressed that engagements such as these are paramount to keeping SAPOA members updated on the planning fraternity but also to ensuring the continued success in the development of the country as a whole.

02-201602-2016

JOINT OWNERSHIPSectional titles under the spotlight

NAMIBIA’S WLOTZKASBAKENA peculiar case of ownership

COMMUNITY SCHEMES OMBUD SERVICESDispute resolution simplifi ed

THE SAPOA PROPERTY ADVOCATE MAGAZINE

PENSIONS, PROVIDENT FUNDS AND ANNUITIESNew Tax Laws explained

ENSafrica’s ANDREW BEMBRIDGEDecoding theintricate world of Property Law

Cover feb SUBBED.indd 1

2016/02/08 9:51 AM

T h e S A P O A P r o p e r t y A d v o c a t e M a g a z i n e

Reaching leading legal professionals within the property industry

By examining various aspects of property law, PROvocate will focus on:

● Regular town planning, legislation and advocacy updates; ● Doing business in Africa: the legal requirements of

setting up business in various African countries, in particular when setting up commercial property development partnerships;

● Emerging markets and global growth, � nancial and economic trends, emerging markets within and beyond South Africa, and the impact of legislation on property development at home and abroad. (As the magazine grows, opinions from leading law-makers and � nancial gurus will be sought and featured);

● Ownership, mergers and acquisitions, leasing, management agencies, REITs, tax, property ownership laws, and development of the property ownership sector in South Africa;

● Development plans approval, subdivisions, town planning, re-zoning, high-density developments, mixed developments (business/residential, IDZs), and sectional title developments;

● Engineering: storm water, roads and bridges within the concept of connecting cities and supporting the commercial property sector. Leading experts in the engineering world will be interviewed and featured;

● Environment: innovative building technology, environmental impact assessments, carbon tax policies, and safety and health regulations at building sites;

● Private and public sectors: useful contact numbers and speci� c topics on municipal planning and the Department of Public Works projects;

● Education: the institutions that o� er property as a profession, the innovative methods that are being developed and their application in practice;

● Attorney and industry pro� les, movers and shakers: the people behind the industry; and

● Leading advocate pro� les.

For advertising, contact Robbie Pansegrauw: +27 (0)21 856 0321 / [email protected] or Mark Pettipher: +27 (0)21 856 1276 / [email protected]

workshop

It is within this

background that

transitional arrangements

are required to deal with

land use applications

and the functions of the

Statutory Boards for the

applications submitted

before and after the

implementation date

of SPLUMA


legal

Construction companies and liquidation

Companies are warned to be careful who they contract with as they could be forced to pay back if their counter-party is liquidated

As bankruptcies of contractors in the construction industry rise at a rate of

� ve liquidations a month, contractors and subcontractors are being warned that payments can be clawed back from them if their contracting counter-party winds up in liquidation.

In addition, upfront or advance payments to a contractor before the commencement of a project may be viewed by a liquidator as payments made when the employer was in fact insolvent (de facto insolvent), which would allow the liquidator to unwind that upfront payment and seek to recover the payment through the court process.

Taryn van Deventer is a senior associate at MDA Consulting, a specialist commercial advisory practice in the construction environment. ”One of the most critical components of success in the construction industry is cash � ow,” she says. “There have been a number of high-pro� le liquidations, but we are also seeing a number of smaller entities adversely impacted because of cash-� ow constraints. This has created an environment where contractors and subcontractors have been prudent in ensuring upfront or advance payments – but if the debtor is insolvent, the contractor or subcontractor may get caught up in the creditors’ scramble for payment. This situation is not uncommon and extends to work completed, invoiced and paid for at a time when the debtor is insolvent on account of liabilities exceeding assets after making the payment.

“The bottom line is that you need to be very careful with whom you choose to contract. Ensure that the entity or individual is � nancially stable enough to fund the project, or has backing from a � nancial institution.”

Section 29 of the Insolvency Act deals with situations when payments are made prior to insolvency in preference of one creditor over another. Section 30 allows liquidators to reverse the transaction via the courts. “It is a reality that funds can be

demanded from you by a liquidator where your contracting counter-party winds up in liquidation after having made payment,” says Van Deventer. “If your contracting counter-party winds up in liquidation, the funds can be demanded from you if the requirements of Section 29 of the Act are met. All that needs to be proven by the liquidator is that, at the time of making the payment, the debtor was in fact insolvent and the intention was to prefer the party receiving the funds over other creditors.”

Van Deventer says that one way to mitigate against this risk is to arrange a counter-guarantee for payment. “Although standard form contracts don’t speci� cally cover such guarantees, it is important to understand that even if you have a right to payment, it is not the same as having cash in hand,” she says. “Where possible, or where the � nancial status of your contracting counter-party is unknown, you should insist on a payment guarantee – subject, of course, to the commercial realities of making a deal and being appointed on a speci� c contract.”

Along a similar vein and coming to the aid of the contractors and subcontractors out there in terms of vital cash � ow are the The CIDB Prompt Payment Regulations and

Adjudication Standard, which appeared in the Government Gazette on 29 May 2015 (Notice 482 of 2015) and closed for comment at the end of July 2015. The regulations are expected to be signed into law within a couple of months, and will have far-reaching implications for cash � ow in the construction industry.

These regulations introduce adjudication as a mandatory � rst step for resolution of disputes in both the public and private sector as well as a 30-day prompt payment provision. Given that the construction and civil engineering industries experience major problems related to non-payment of contractors and subcontractors, the regulations are expected to have a positive e� ect on the industry as a whole by ensuring better cash � ow and quicker dispute resolution.

Van Deventer says that the new regulations will have profound consequences for the South African construction industry. “These regulations mean that payments cannot be withheld without going through a de� ned procedure,” she says. “They give contractors a statutory right to suspend work and to charge interest on late payments. The regulations also introduce a form of statutory adjudication to resolve disputes.

“Issues such as withholding payment linked to performance or until completion of a project and delayed dispute resolution have resulted in contractors unwittingly � nancing projects themselves or “bank-rolling” projects in instances where they cannot a� ord to do so. The new regulations will compel parties to resolve disputes through adjudication far more expeditiously than any arbitration or court process, and the award will be immediately enforceable unless or until overturned in a subsequent court or arbitration process.

“These proposed interventions will have profound consequences for the South African construction industry and we look forward to the positive changes they will bring to the industry.”

“The bottom line is that

you need to be very careful

with whom you choose

to contract. Ensure that

the entity or individual is

financially stable enough

to fund the project,

or has backing from

a financial institution”


SAPOA events

(AD-2) 210X297 PROP REVIEW.pdf 1 2/11/16 12:22 PM


events

Value-add breakfast on a rollThere was inspiration aplenty at the recent beachfront breakfast, hosted by SAPOA KZN Regional Council and sponsored by Broll Property Group, and featuring urban precinct specialist Brian Wright

By Andre Fiore Photographs by Val Adamson

The cold truth is

that public sentiment

ultimately determines

the value of a location.

In 2008, Umhlanga was

in a state of rampant

urban decay and

economic crisis.

Now, boasting more

than R5-billion in

investments, values

in Umhlanga vastly

outshine their city

and beachfront

counterparts, with

recreational options

and positive experience

of place to match

Never let a crisis go to waste,” Edwin van Niekerk, SAPOA KZN Regional Chairman

and Executive Director at Maxprop, reminded the gathering of property professionals and key players from the municipality as they polished o� the fabulous meal at a spirited networking breakfast in Durban’s Edward Hotel. “It creates fertile ground!”

And fertile indeed were the thoughts provoked by Brian Wright of Urban MGT as he tucked into his topic, “Regeneration of the Durban and secondary CBDs in eThekwini – precinct management a critical component to adding value.”

With a masters degree in sustainability and having worked in brown and green� eld development nodes since 2007, Wright and his team have been involved in the regeneration of, among others, Umhlanga Rocks, Florida Road, Ballito and the Riverhorse Valley UIP zones. These well-managed, thriving precincts are key in underpinning investor con� dence and property returns.

Value is what it’s all about, Wright explained. “Which location has the better beachfront and promenade: Durban or Umhlanga Rocks?” The undisputed answer – Durban – lead to his next question:

“So then does location, location, location determine desirability, economic vibrancy and property returns? Or is it location, location, location management – or to use another term, precinct management?”

The cold truth is that public sentiment ultimately determines the value of a location. In 2008, Umhlanga was in a state of rampant urban decay and economic crisis. Now, boasting more than R5-billion in investments, values in Umhlanga vastly outshine their city and beachfront counterparts, with recreational options and positive experience of place to match.

The di� erence? Umhlanga has enjoyed � ve years of careful urban improvement precinct (UIP) management. The beachfront, despite its glorious topography and 2010 revamp, has not.

“UIP management, together with City Improvement Development represents a new public and private sector commitment to turning negative trends around in commercial nodes,” said Wright. “The devil is in the detail – the small interventions that, stitched together, make a very, very big di� erence.”

Brian Wright

SAPOA KZN Regional Chairman Edwin van Niekerk

events


And it’s because of this difference that the National Treasury has pledged support and, explained Adrian Peters of the municipality, the city has too. “When property values increase, every single person in this room, every single one of us benefits,” added Van Niekerk.

And so was launched the regeneration of the Durban beachfront and city centre, with public and private sector uniting to take Durban forward and with SAPOA committing to take the lead. The success of this project will impact on the whole of eThekwini, and the province. It was a truly watershed moment.

“There has never been a better time than now to invest in the city,” said Van Niekerk. “The clever money has already invested in the Durban Beachfront 2016 to 2022 project.”

“I believe the most important outcome of urban regeneration is the triumph of human spirit, and nowhere is this more obvious than here,” said Frank Reardon of Broll Property Group.

And triumph there was – and a delight in the clear way forward – as guests grabbed another cup of coffee and the room buzzed with possibility.

Adrian Peters

Geoff Ball and Pregan Naicker

Jarrod Evans, Vanessa Blevins and Bruce Macauley

Andrew Setzkorn, Miles Taylor and Rainer Stenzhorn

Gary Gould, Lindy Hawarth and Hilton Maclarty

Carla Elliot, Hein Hattingh, Gerald Franken and Bernadine Galliver


frankly speaking

Norman Raad’s compulsive-obsessive DNAHe has a burning desire to succeed, and this may be what keeps the stoves in his chain restaurants alight. We fi nd out more about the CEO of Broll Auctions and Sales

By Nthabi Nhlapo

Q You have been in the property auction business for a while. Was this your � rst-choice career? No. I was one of the last unfortunate people who had to do army service, but there were obviously many good things I learnt. I then studied at Wits and opened the � rst Fratelli restaurant with my brothers and partner.

Q What inspires you most about working at Broll Auctions? It’s a 40-year-old business that’s represented in almost every city in South Africa and known in 15 African countries. The name brings credibility to an industry that has su� ered so much over the past few years.

Q You work on large-scale projects – have your achievements met your childhood dreams? Not quite. I don’t think I will ever be done with anything I’m doing. I’m always searching for the next big deal, the next development or the next innovation in business and property.

Q You have a law degree. Did 18-year-old Norman have dreams of becoming an attorney or a legal professional?I studied BCom law, but never quite � nished my LLB because of my business commitments and ambitions. I deeply regret not � nishing and completing my degree – I really would enjoy being a commercial lawyer.

Q What inspires you in life?My kids and family are my true north and they are what me what makes me truly happy and what makes me enjoy life.

About Broll Auctions and SalesBroll Auctions and Sales, a joint venture between Broll Property Group (Pty) Ltd and Greenday Property, is a division within Broll that specialises in property auctions, deal-making, tenders and private treaty sales.

Broll Auctions represents buyers and sellers across the offi ce, industrial, retail and residential sectors with a diversifi ed clientele in agriculture, high-density residential developments, leisure and hotel sectors.

It’s led by a team of property experts, and the combined knowledge and comprehensive database of select buyers, sellers, landlords, tenants and investors contribute to the company’s ability to create successful property transaction platforms.

Broll Auctions and Sales, prides itself on its professionalism, discretion and complete confi dentiality in the provision of specialist, premier services to companies and individual buyers, sellers and investors.

My competitive determination helps me in my journey to perfection and success – to be the best at whatever I do, to learn and improve, to travel and grow, and to be the best example as a father, person, partner and friend as I can possibly be.

Q Name another use of an auctioneer’s hammer other than at auction and hammering.Throwing it at my brokers if they’re not cold-calling or canvassing!

Q If you could move the Egyptian pyramids to any other part of the world, where would you take them?Maybe Cape Town – then it would have another wonder of the world.

Q If we gave you a vintage Rolls Royce without an engine, what would you do with it?Convert it into a bar.

Q If we came to your home and looked inside the refrigerator, what would we � nd? Lots of fresh fruit and vegetables, biltong and Coke.

Q Does your family have pets? Do you speak to them? Two beautiful dogs, a sta� e and a collie. We don’t speak to them – they wouldn’t listen anyway.

Q What is the best advice you’ve ever got from a child? To go to gym and keep � t so I can lose weight… Oh, and not to text and drive.

MayRegion Date Event

Gauteng 6 May Lease Agreement Workshop

Gauteng 19 May Research Breakfast: Topic TBC

KwaZulu-Natal 20 May KZN Golf Day

Gauteng 23-27 May Property Management Programme (UJ)

Port Elizabeth 25 May Lease agreement workshop

Gauteng 27 May SANS 10 400

JulyRegion Date Event

Gauteng 7 July Method For Measuring Floor Areas In Buildings

Gauteng 14 July Legal Breakfast

Gauteng 17 - 29 July Property Development Programme (PDP)

Gauteng 18 - 19 July Property Financial Programme (PFP) Basic

East London 19 July East London Breakfast Seminar

Port Elizabeth 20 July Port Elizabeth Networking Event

Mpumalanga 21 July Mpumalanga Networking Event

Gauteng 28 July Power Hour Breakfast: Topic TBC

KwaZulu-Natal 28 July KZN Breakfast Presentation

JuneRegion Date Event

Kwa Zulu Natal 7 June Method For Measuring Floor Areas In Buildings

Gauteng 9-10 June Negotiation Skills Masterclass Programme (NSMP)

Cape Town 9 June Method For Measuring Floor Areas In Buildings

East London 9 June East London Networking Event

Gauteng 21 June SAPOA Golf Day

Gauteng 21 to 23 June SAPOA Annual Convention and Property Exhibition

UPCOMINGEVENTS2016

Dates are subject to change. Please see Sapoa.org.za for regular updates.


off the wall


Wondrous curves

A museum by its very nature is meant to intrigue, inspire and evoke an imaginative

conversation in the minds of the visitors who come to it. So Frank Gehry’s Guggenheim Museum Bilbao is a wonder even for passers-by who are not necessarily going to enter this imaginative building.

Plans for a new museum in Bilbao, Spain date back to the late 1980s, but it was not until 1991 that the Basque authorities proposed the idea for a Guggenheim Museum Bilbao to the Solomon R Guggenheim Foundation.

In moving forward with the project, a site was selected and three architects were invited to participate in a competition to produce a conceptual design.

There were no requirements in terms of drawings or models to be produced; the architects were only asked to present what they thought would convey their concept for the new museum. California-based Canadian-American architect Frank Gehry created the unique concept – and won the competition.

The building was viewed as the most important structure of its time. Since it opened in 1997, the Guggenheim has changed the way

people think about museums,

and continues to challenge assumptions about connections between art, architecture and collecting.

The museum has distinctive titanium curves and a soaring glass atrium, and is seamlessly integrated into the urban context, unfolding its interconnecting shapes of stone, glass and titanium on a 32 500m² site along the Nervión River in the old industrial heart of the city. Eleven thousand square metres of exhibition space are distributed over nineteen galleries.

The museum has welcomed more than 10-million visitors thus far and continues to attract ever more eyes and minds to what is inside – and outside.

Inspiring, innovative and just what the doctor ordered: this museum does not wait for visitors to enter it before it stimulates their imaginations

Compiled by Nthabi Nhlapo

off the wall

Wondrous curves


off the wall


SAPOA events

WSP | Parsons Brinckerhoff is proud to have been involved in several award winning buildings over the years. We offer world-class expertise in building services, from energy efficient Electrical Engineering solutions to niche speciality in Electronic Solutions; Heating, Ventilation and Air Conditioning (HVAC); Fire Engineering and Sustainability Consulting.

We are passionate about Africa’s sustainable development, and iconic projects like the SAPOA Award-winning Newtown Junction show how our multi-disciplinary approach helps our clients make a difference to the way we build.

BROUGHT TO YOU BY WSP | PARSONS BRINCKERHOFF

34 500 500 40EMPLOYEES OFFICES COUNTRIES

Learn more about this and other projects on www.wsp-pb.co.za

AWARD WINNING BUILDINGS

Newtown Junction, winner of best Mixed-use Development, Overall Transformation Award and overall Award, SAPOA 2015.


SAPOA events

www.delqs.com | JHB +27 (11) 642 8751 | PTA +27 (12) 460 3304 Associated offices: GHANA | KENYA | MAURITIUS | NAMIBIA | NIGERIA | TANZANIA | UGANDA

QUANTITY SURVEYING DISPUTE RESOLUTION PROPERTY VALUATION

Dr Corné de LeeuwAkopo Africa Nico RoosGerhard de Leeuw www.delqs.com

QUANTITY SURVEYING

Dr Corné de LeeuwAkopo Africa Nico RoosGerhard de Leeuw

1 Head office for Ecobank in Accra, Ghana. Architects: Arc Architects

2 West Hills Mall in Accra, Ghana for a subsidiary of Atterbury Properties. Architects: Arc Architects

3 Student accommodation in Pretoria for the Feenstra Group. Architects: Boogertman + Partners

4 Vdara Office Park in Johannesburg for Bakos Brothers. Architects: Integrale Architectural Design

1 2

43

Proactive Quantity Surveying

Our track record speaks for itself. DelQS was established in 2000 and has since built up a remarkable track

record. We have provided quantity surveying services for almost all building

types ranging in construction cost from relatively small to multi-billion Rand

developments. Building and property economics is a specialty.

Documents

SOUTH AFRICAN PROPERTY16 May... · PROPERTYSOUTH AFRICAN REVIEW May 2016 2 From the CEO 4 From the Editor’s desk 6 Industry news 12 Education, training and development Western Cape: