South African Property Review August 2014

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

PROPERTYR E V I E W

August 2014

South African P

roperty Review

Wom

en in property August 2014

BBDO: an empowered and trendy work space

AUSTRALIATaking a look Down Under

BOMANetworking internationally

MOTHER LOADTaking a stroll through the Mother City’s CBD

SAPOA’s FEMALE PRESIDENTSPast and present

AUSTRALIA

The

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

Including

the SAPOA

women in property

supplement

Cover with spine_AUG_SUBBEDon.indd 1 2014/07/28 9:46 AM

Untitled-2 1 2014/07/28 9:52 AM

from the CEO

1SOUTH AFRICAN PROPERTY REVIEW

The City of Polokwane approved its rates policy for the 2014/15 financial year on

26 June 2014. Municipalities must annually review their rates policy and need to follow a process of community participation before the policy is adopted. SAPOA, together with Rates Watch (Pty) Ltd, held several meetings over four months with the city of Polokwane, after which formal comments were submitted.

Several changes were made to the draft policy as a result of our official comments and meetings with the Mayor and other senior officials. I will highlight the major changes.

1.1 Illegal useThe definition was removed in the original draft but at the meeting with the officials of Polokwane we convinced them to include the definition and category.

The definition reads: “means a use that is inconsistent with or in contravention of the permitted use of the property, including

advertising sign, in which event and without condoning the use thereof the property will be valued in accordance with section 56(2)(b) and (c) of the Act.”

1.2 PropertyThe definition of property was amended to bring it in line with the definition of the MPRA. 1.3 Residential propertyVacant land forming part of the remainder of a township will be categorised as “residential property” and rated at the same tariff as residential property. Prior to the change, unsold erven in a township, known as the remainder of a township, would have been categorised as “vacant land”.

Vacant land is rated at a tariff of 4,5 times that of residential properties. The incidence of property rates at the high tariff would have affected township developers negatively. New townships are a major source in the organic growth of the rates base and must not be prejudiced. We intend taking this up with the municipality.

1.4 Vacant landThe definition was amended to ensure that vacant land forming part of the remainder of a township will not be categorised as vacant land.

2.1 The original ratio of 2,0 on vacant land was increased to 4,5The high ratio was discussed at the meeting and the following reasons were provided to motivate the ratio:

● Force owners to develop land ● Prevent land banking ● Prevent illegal dumping ● Prevent land grabbing

Municipalities fail to understand that supply and demand drive development, and high rates on vacant land may chase developers away. High rates on vacant land are common throughout South Africa.

The city was, however, not willing to reduce the tariff applicable to vacant land and argued that because of the need for housing, the high tariff would force developers to develop.

2.2 The ratio on multiple-purpose properties was changed from 2,0 to 0,0This is in line with the “Connaught” case in Johannesburg. Properties categorised as “properties used for multiple purposes” must be rated as contemplated in section 9(2)(b) of the MPRA. The value must be apportioned between the different uses on the property and rated accordingly.

2.3 The high ratio on “illegal use” properties is a bold stepThis category was not included in the draft policy and has been introduced as part of a request from SAPOA.

In the interest of all owners, SAPOA should assist the municipality in identifying illegal land use.

The following categories of owners or properties received rebates during the 2013/14 financial year but were omitted from the first draft policy for 2014/15:

● Owners of business or industrial properties with a market value in excess of R50 000 000;

● Resorts on agricultural land; ● Development land; ● Private townships; ● Sectional title schemes.

As a result of SAPOA’s comments, these categories of owners and properties will be receiving rebates.

3.1 MunicipalIn terms of clause 8.7, property owned by the municipality and used for service delivery is exempted from rates. There is no separate ratio for properties owned by the municipality that are not used for service delivery. This means that properties that are let by the municipality will also be exempted.

It was surely not the intention to exempt all municipal properties from the payment of rates.

3.2 Bona fide farmersThese farmers may receive a rebate of 75%. Our interpretation is that this rebate is in addition to the reduced tariff as a result of

Public-private sector engagement at its best

After months of negotiations with the city of Polokwane,

SAPOA CEO Neil Gopal is pleased to inform the members of the outcome of the meetings

held, which were based on SAPOA’s concerns regarding

the draft Property Rates Policy issued by the city

1 Definitions

2 Categories of property

3 Exemptions, reductions and rebates

CEO Review_AUG_subbed.indd 1 2014/07/17 9:23 AM

2 SOUTH AFRICAN PROPERTY REVIEW

from the CEO

the ratio regulation. To qualify, the owner must derive his principal income from the farming activity. I do not believe that the municipality realises that.

3.3 Properties with high valuesThe introduction of a rebate of 40% on properties with values above R500 000 000 is positive.

It should be noted that the rebate structure does not result in continuous rates.

Rates payable by properties around the break points are distorted. Properties with values between R45 000 000 and R49 999 999 will pay higher rates than properties valued at R50 000 000.

The structure benefits properties at the lower end of the different value brackets.

The problem will be solved if it is changed to read:

● 10% rebate on rates payable on the market value between R50 000 000 and R99 999 999

● 25% rebate on rates payable on the market value between R100 000 000 and R499 999 999

● 40% rebate on rates payable on the market value in excess of R500 000 000

Although the overall rebate will be less, it will be more equitable and fair. We have taken this up with the municipality.

3.4 Remainders of townshipsThe additional 20% rebate will afford much-needed relief to developers. The municipality is showing the intention to assist developers and to support the basis for growth in the rates base.

The application of dominant use in clause 10 is in conflict with section 9 of the MPRA. If there is a category “properties used for multiple purposes” (refer to clause 5.2(o)), section 9(2) is applicable. This interpretation was confirmed in The City of Johannesburg Metropolitan Municipality v The Chairman of the Valuation Appeal Board for the City of Johannesburg (282/2013)[2014] ZASCA 5.

The values of properties used for multiple purposes must therefore be apportioned in terms of section 9(2) of the MPRA and rates must be levied on the different categories.

I would like to take this opportunity to thank all those involved in the negotiations with the city. We will continue our efforts to work closely with the office of the Municipal Manager and Chief Financial Officer in Polokwane.

4 Multiple purpose properties

Introduction

The Local Government Municipal Property Rates Act (Act No 6 of 2004) requires a municipality

to develop and adopt a rates policy consistent with the Act on the levying of rates on

rateable property in the municipality.

Property rates are the most reliable source of revenue for the municipality. Services financed

from rates include installation and maintenance of streets, roads, sidewalks, lighting, storm-

water drainage facilities, building and operating clinics, parks, recreational facilities and

cemeteries. Property rates revenue is also used to fund municipal administration such as

computer equipment, stationery and costs of governance, such as council and community

meetings, which facilitate community participation on issues of integrated development

plans and municipal budgets.

The council has resolved, in compliance with the provision of the Act, to impose a rate –

and, as a consequence, this rates policy has been developed within the parameters of the

applicable legislation relating to property rates.

Guiding principles

The following principles will ensure that the municipality treats persons liable for rates

equitably in terms of the Act:

(a) Ratepayers with similar properties will pay similar levels of rates

(b) The ability of ratepayers to pay their rates will be taken into account by the council.

(c) The effects of the migration from a site rating system to a system where the market

value, site and improvement are rated will be taken into account.

(d) The determination of the tariffs and the levying of rates must allow the council

to promote local, social and economic development.

Key objectives

(a) Ensure that all owners of rateable property are informed about their liability to pay

assessment rates;

(b) Specify relief measures for ratepayers who may qualify for relief or partial relief

in respect of the payment of rates through exemptions, reductions and rebates

contemplated in paragraph 8 of this policy;

(c) Set out the criteria to be applied by the council if it increases rates and levies

differential rates on different categories of property;

(d) Provide for categories of public benefit organisations, approved in terms of

Section 30(1) of the Income Tax Act, 1962 (Act No 58 of 1962) as amended, which

ratepayers are eligible for exemptions, reductions and rebates, and therefore may

apply to the council for relief from rates;

(e) Recognise the state, organs of state and owners of public service infrastructure as

property owners;

(g) Not discourage the development of property; and

(h) Ensure that all persons liable for rates are treated equitably as required by the Act.

Polokwane Rates Policy background


from the CEO


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from the CEO’s desk

4

7 July 2014

Director: Water Sector Support88 Field StreetSouthern Life BuildingKwaZulu - Natal4000

Re: THE ISSUING OF WATER LICENCES AND RIVER RESERVE DETERMINATIONS ON RIVERS IN

KWAZULU NATAL

a) The South African Property Owners Association (SAPOA) is a non-pro� t organization that represents

almost 90% of commercial property owners in South Africa. Such commercial property owners equate

to 1125 companies in South Africa. Our membership includes also property managers, property

developers, property brokers and varied professionals in the commercial, retail and industrial property

sector. SAPOA is further a member of Business Unity South Africa (BUSA) which has a seat within

NEDLAC.

While our strategic focus is to ensure that we are the voice of commercial property sector, it is our mission

that we achieve that through creating platform of networking for our members. SAPOA is also focused

on strategic lobbying of various stakeholders in the property sector which includes government at

national, provincial and local level. We endeavor at all times to consult with an intention to seek an

amiable solution to issues that infringe on or prejudice the mutual interests of our membership.

b) SAPOA is cognisant of the objectives and intentions of the National Water Act (Act No 36 of 1998)

hereinafter referred to as the Act. We speci� cally recognise that the Act acknowledges National

Government’s overall responsibility for and authority over the nation’s water resources and their

use, including the equitable allocation of water for bene� cial use, the redistribution of water and

international water matters and that the ultimate aim of water resource management is to achieve the

sustainable use of water for the bene� t of all users.

c) In light of the aforementioned objectives we have had concerns from of our members in their

capacity as property owners regarding certain aspects of the implementation of the Act.

We would therefore like to highlight our concerns regarding the prejudicial e� ect or unintended

consequences on the commercial property industry as a result of such implementation which in

essence have social and economic rami� cations.

LOBBIES FOR

YOU

Neil's Letters August.indd 4 2014/07/17 9:38 AM


from the CEO’s desk


d) We note that Part 7 of the Act states the following:

“In considering the application a responsible authority may require additional information from the

applicant, and may also require the applicant to undertake an environmental or other assessment, which

assessments may be subject to independent review.”

Although we are in agreement with the abovementioned section it is our understanding that the

issuing of Water use Licenses (WULAs) which are required for any activity which occurs within 500m

of a watercourse has become problematic. This process has been proven to be complex, lengthy and

uncertain. There seems to be an issue of potential over regulation as despite having an Environmental

Impact Assessment approval and planning approval construction activity is suspended if one does not

have a WULA. Further the timing to get approval is often lengthy and this directly has a major impact

on development and being able to meet timeframes required by tenants and occupants.

e) We would kindly like clari� cation on the issue of the river reserve determination as we have been

advised by the eThekwini municipal o� cials that the municipality is unable to obtain approval for any

new water treatment works or for any expansion of an existing works as the Department have decided

that they want to now do river reserve determinations for all the rivers between the Mvoti and Umkomaas

and that until this is completed the Department will be unable to approve any activity which changes the

� ows in any of the rivers. This will negatively impact property owners, developers and farmers.

We would like to establish how long the process will take and get an understanding of the extent of the

ecological requirement for the aforementioned process.

We shall appreciate being provided with three (3) alternate dates to choose from on which you will

be available to meet with the SAPOA delegation in order to � nd amicable solutions to issues which

essentially contribute towards disincentives towards investment in Ethekwini.

We thank you for your assistance herein and look forward to hearing from you.

Yours faithfully,

________________________Neil GopalChief Executive O� cer

c) In light of the aforementioned objectives we have had concerns from of our members in

their capacity as property owners regarding certain aspects of the implementation of the Act.

We would therefore like to highlight our concerns regarding the prejudicial effect or

unintended consequences on the commercial property industry as a result of such

implementation which in essence have social and economic ramifications.

d) We note that Part 7 of the Act states the following:

“In considering the application a responsible authority may require additional information

from the applicant, and may also require the applicant to undertake an environmental or

other assessment, which assessments may be subject to independent review.”

Although we are in agreement with the abovementioned section it is our understanding that

the issuing of Water use Licenses (WULAs) which are required for any activity which occurs

within 500m of a watercourse has become problematic. This process has been proven to be

complex, lengthy and uncertain. There seems to be an issue of potential over regulation as

despite having an Environmental Impact Assessment approval and planning approval

construction activity is suspended if one does not have a WULA. Further the timing to get

approval is often lengthy and this directly has a major impact on development and being able

to meet timeframes required by tenants and occupants.

e) We would kindly like clarification on the issue of the river reserve determination as we

have been advised by the eThekwini municipal officials that the municipality is unable to

obtain approval for any new water treatment works or for any expansion of an existing works

as the Department have decided that they want to now do river reserve determinations for all

the rivers between the Mvoti and Umkomaas and that until this is completed the Department

will be unable to approve any activity which changes the flows in any of the rivers. This will

negatively impact property owners, developers and farmers.

We would like to establish how long the process will take and get an understanding of the

extent of the ecological requirement for the aforementioned process.

We shall appreciate being provided with three (3) alternate dates to choose from on which

you will be available to meet with the SAPOA delegation in order to find amicable solutions

to issues which essentially contribute towards disincentives towards investment in

Ethekwini. We thank you for your assistance herein and look forward to hearing from you.

Yours faithfully,

______________________ Mr Neil Gopal Chief Executive Officer

We thank you for your assistance herein and look forward to hearing from you.We thank you for your assistance herein and look forward to hearing from you.We thank you for your assistance herein and look forward to hearing from you.We thank you for your assistance herein and look forward to hearing from you.

LOBBIES FOR

YOU

Neil's Letters August.indd 5 2014/07/17 9:40 AM


contents

P R O P E R T Y F U N D

Abland

Abreal

Oilgro


PROPERTYR E V I E W

August 2014

8 From the editor’s desk9 News14 Offi ce Vacancy Survey Report16 Education, training and development19 Legal update Structural defects dictate landlord’s obligations

22 BOMA Conference24 SAPOA’s female Presidents Past and present

28 Africa uncovered Zambia

34 Eye on the world Australia

40 Getting personal with POPI42 Feature Catching up on black economic empowerment

44 Exploring our cities Cape Town CBD crawl

48 A new form of discrimination50 On show A space with a new iconic place

62 Statistics63 KZN golf day64 Off the wall Strike a woman, strike a rock girl


PROPERTYR E V I E W

August 2014

South African P

roperty Review

Wom

en in property August 2014

BBDO: an empowered and trendy work space

AUSTRALIATaking a look Down Under

BOMANetworking internationally

MOTHER LOADTaking a stroll through the Mother City’s CBD

SAPOA’s FEMALE PRESIDENTSPast and present

AUSTRALIA

The

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

Cover with spine_AUG_SUBBED.indd 1 2014/07/18 12:11 PM

ON THE COVERNet#work BBDO Johannesburgo� ces, an excellent fusion of cooperation between the Trend Group and architectural � rm Empowered Spaces.

Editor in chief Neil Gopal Editorial advisor Jane Padayachee Managing editor Mark Pettipher Editor Candace King Copy editor Ania Rokita Production editor Dalene van Niekerk

Designer Dirk Knoesen Sales Riëtte Stevens Finance Susan du Toit Contributors Martin Ferguson, Eugenia Makgabo, David A Steynberg, Glenn Bentley,

Denise Mhlanga Amanda Marsh, Catie Dickson, Melanie Hart, India BairdPhotographers Michael Glenister, Mark Pettipher, Sam Burrows

DISCLAIMER: 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.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 e: [email protected]

FOR EDITORIAL ENQUIRIES email [email protected] or [email protected].

Printed by

e: [email protected]

Contents Review_AUG_without cover.indd 6 2014/07/18 2:42 PM


news

If you need less space, more space or just better space, contact Redefine Properties. We have the place you need to work smarter. To view our portfolio, go to www.redefine.co.za or call 0860DEFINE.

COMMERCIAL | INDUSTRIAL | RETAIL We’re not landlords. We’re people.

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Job 315-14 SA Prop Developer 297x210mm.indd 1 2014/04/03 10:02 AMLDM pg 13.indd 7 2014/07/18 12:51 PM


from the editor’s desk

There is a startling viral “statistic” about women that has been published and

circulated for decades – a fact that is surely a misrepresentation and one that has been deemed “a feminist myth that won’t die”.

The statistic states that, “While women represent half the global population and one-third of the labour force, they receive only one-tenth of the world’s income and own less than one percent of world property. They are also responsible for two-thirds of all working hours.”

This seemingly unrealistic fact was published in US poet, author, political theorist and activist Robin Morgan’s introduction to her 1984 classic, Sisterhood Is Global: The International Women’s Movement Anthology.

Since its inception into the public domain about 30 years ago (the true origin of the statistic when it first appeared is still under debate), does it still ring true in the 21st century? Perhaps modern statistics will help iron this out eventually. While there is still rife inequality between women and men, there are positive facts about the gap being lessened by the day.

According to the website of Khuthaza, a non-profit organisation that supports the development of women in the housing and construction sectors, 60% of women in South Africa live in poverty, compared to 41% of men. Forty percent of South African households are headed by women, and 75% of female-headed households are classified as poor. Furthermore, 60% of rural and 48% of urban African women are unemployed. These figures are sourced from the National Land Committee.

The website goes on to quote the UN Food and Agricultural Organisation, which says that African women across the continent are responsible for 70% of food crop production, 50% of animal husbandry, 60% of marketing, and 100% of food processing (cooking), in addition to childcare and other household responsibilities.

Speaking about Africa, the World Bank recently stated that Nigeria’s business climate

It’s a women’s worldWhile inequality weighs heavily on the scales of Lady Justice, the tipping point is nigh

as women find their rightful place in society

is unfair to women. While the country boasts the highest GDP on the continent (growing at seven percent), Africa’s golden boy seems to be quite a sexist nation.

The World Bank has condemned the low percentage of women in the Nigerian business environment, saying there are only 15% women in business. While women make up half of Nigeria’s population, more than half of the manufacturing firms in the country do not employ a single woman.

Nigeria’s militant Islamist group, the Congregation of the People of Tradition for Proselytism and Jihad (better known as Boko Harām), is causing havoc in the country and is regarded as Nigeria’s biggest threat. With the recent onslaught of bombings, assassinations and the tragic kidnapping of almost 300 schoolgirls in Nigeria, the country is expecting close to a half-percent drop in its GDP for 2014 – 6,75% is the current forecast for growth this year.

While Boko Harām stands against westernised education, this is the only viable solution for many African countries. According to the United Nations Population Fund (UNFPA), formerly the United Nations Fund for Population Activities, of the 163-million illiterate youth

in the world, 63% are female. UNFPA stipulates that crop yields in Kenya could increase to 22% if female farmers had the same education and inputs (such as fertiliser, credit and investment) as their male farming counterparts.

The World Bank found in a study of 100 countries that every one-percent increase in the proportion of women with secondary education boosted a country’s annual per capita income growth rate by about 0,3 percentage points.

But women are moving up in the world and taking up positions that were previously “no women’s land”. According to the National Association of Women in Construction, women-owned firms are on the rise, with 20% growth realised from 1997 to 2002.

According to the recent Fortune 500 roster, a definitive annual list compiled and published by Fortune magazine that ranks the top 500 companies in the US, 24 female CEOs made the coveted catalogue, up from 20 a year ago and more than the list has ever recorded since 1998, when only one woman led a company.

The South African property industry is a glittering beacon of girl power. It has transformed tremendously over the years, evolving from a white-male-dominated sector to an industry filled with female CEOs and ladies wearing the pants in high-profile companies.

The industry is also transforming in terms of previously disadvantaged women who are now sitting on executive boards across the spectrum and starting up their own powerhouse companies.

Despite this, there’s still much to be done in the fight against sexism and gender inequality. While the feminist statistic mentioned in the beginning might still spur on the burning of brassieres across the world, women are definitely taking their rightful place in society.

Candace King, editor

Ed's Letter_AUG_SUBBED.indd 8 2014/07/18 12:04 PM


news

Interest rate increases and escalating municipal costs,

including electricity and water costs, maintenance services and municipal property rates, are resulting in commercial properties becoming very expensive to maintain. This, in turn, is lowering the demand for this type of property in South Africa.

This is according to Gary Palmer, Chief Executive Officer of Paragon Lending Solutions, who says that five years ago municipal bills as a percentage of operating costs were at about 40%. “Today these costs have escalated to about 66% of operating costs,” he says. “The impact is visible in the continued pressure on net

property income, especially where landlords are unable to pass on cost increases to tenants. Increasing costs and the downward pressure on rentals have resulted in a margin squeeze in this sector.”

He says that, consequently, commercial property portfolios are becoming too expensive to manage, and the inability of tenants to absorb these increases is weighing commercial property owners down. “With interest rates and municipal charges increasing steadily, it will prove difficult to obtain the required funding for commercial property from traditional lenders such as banks,” he explains. “The high costs that commercial property owners have to endure leave little margin for them to meet the banks’ strict lending covenants while drawing sufficient income for themselves. We will see the banks reducing their loan values for commercial property deals in the next few months.”

According to the latest house price index by the UK’s Economist magazine, South African residential property is in high demand, with markets outperforming other global markets by attaining 456% growth in house prices over the past 13 years.

“Surprisingly, residential property is proving to be a better investment choice than commercial property,” says Palmer. “This is due to the fact that the cost associated with owning residential property is less than that associated with commercial property.” He adds that he has seen a remarkable increase in the number of clients seeking funding for residential property transactions as opposed to commercial property deals. “Over the past few years, most of the transactions we financed were for commercial properties,” he says. “But there has been a major change over the last few months as clients are now being attracted to the yields achieved in residential property.”

Palmer believes that the sharp increases in municipal rates are unsustainable, not only for commercial property owners but also for the tenants (because commercial property owners have to pass on the increased rates to their tenants). Most of the tenants cannot afford the increases and will, in all probability, not extend their lease when the lease term expires. This will lead to high vacancy rates in the industry in the near future. +27 (0)21 434 0101, Paragonlending.co.za

High municipal rates resulting in unmanageable commercial property costs

Growthpoint Properties was the overall winner for the property

sector in Investment Analysts Society (IAS) Excellence in Financial Reporting and Communications Awards 2013.

“We are thrilled to receive this award,” says Growthpoint Properties’ Executive Director, Estienne de Klerk. “As a JSE ALSI40- listed REIT, Growthpoint places a priority on its responsibility to provide timely, accurate and meaningful information to the market. We are pleased that our governance, communication and reporting have been acknowledged by the analysts of the IAS. Analysts are key stakeholders in our business. We know that providing information swiftly and accurately helps them do their job properly. This is essential because they are responsible for communicating with several of our shareholders with sizable investments.”

Every year, the IAS recognises skills of listed companies with its awards for excellence in providing market intelligence. An IAS award signifies high esteem for those companies that hold them. It gives investors confidence in the quality of information provided to analyse the company.

From Growthpoint Properties’ point of view, the award recognises the high quality of its financial, strategic and stakeholder communication. As a leading SA REIT with a market capitalisation of R55-billion, Growthpoint Properties owns and manages a diverse portfolio of 438 retail, office and industrial properties in South Africa, 49 properties in Australia through its investment in GOZ, a 50% interest in the properties at V&A Waterfront, and an investment in the REITs Acucap Properties (32,5%) and Sycom (23%). Growthpoint Properties’ consolidated property assets are valued at R75-billion. +27 (0)11 944 6001, Growthpoint.co.za

IAS honours Growthpoint’s quality communication and reporting

Gary Palmer, Chief Executive Officer of Paragon Lending Solutions

Estienne de Klerk, Executive Director at Growthpoint Properties

News Review_AUG_subbed.indd 9 2014/07/17 9:57 AM


news

Growthpoint Properties today confirmed it would follow its rights in ASE-listed

Growthpoint Properties Australia’s (GOZ) rights issue, which plans to raise up to AUS$125-million in new equity to fund, in part, GOZ’s acquisition of the New South Wales Police Headquarters for R241,1-million. Growthpoint Properties is the major security holder in GOZ, at 64,03%.

The 1 for 9,37 renounceable rights issue is at an offer price of AUS$2,40 per GOZ stapled security. This represents a 3,9% discount to GOZ’s distribution adjusted closing price on 2 June 2014 and a 1,2% discount to the distribution adjusted five-day volume weighted average price on the same date. Growthpoint Properties will take up its full entitlement under the rights offer, which equates to approximately AUS$80-million, at an attractive F2015 distribution per share yield of 8,2%.

“Our investment in GOZ remains strategic for Growthpoint in the present environment,” says Growthpoint Properties Executive Director

Estienne de Klerk. “Growthpoint’s decision to take up our full entitlement in the rights offer is in line with our objective of supporting the continued growth of GOZ and is an attractive investment opportunity that will deliver a quality return.”

Continuing GOZ’s quality portfolio growth, the New South Wales Police Headquarters in Parramatta, the primary CBD of Western Sydney, covers 31 954,1m² of lettable area across two towers, both with large, flexible and efficient floor plates. The award-winning building is environmentally innovative and fully leased to the AAA-rated New South Wales State Government, with 10 years remaining on the lease and a further five-year option. “This is a prize acquisition for GOZ,” says De Klerk. “It is a modern high-spec building in a prime development precinct with low vacancy levels for quality offices of 0,5%.

The district is earmarked for extensive government infrastructure spend over the next decade, and the building is let to a secure

sovereign tenant on a long lease with fixed rental increases. It also offers a high parking ratio relative to other properties, and is near major public transport and other amenities.

The acquisition strategically increases GOZ’s exposure to New South Wales and furthers its objective to diversify its high-quality portfolio. GOZ’s equity raising of AUS$80- to AUS$125-million will partly fund the transaction. The remaining portion will come from expanded existing debt facilities. Growthpoint Properties is a JSE ALSI Top 40 Index company with a market capitalisation of R54,5-billion. +27 (0)11 944 6001, Growthpoint.co.za

Growthpoint Properties to follow its rights in GOZ’s latest rights offer

Botswana investment property continues to perform well IPD has released the third

Botswana Annual Property Consultative Index. The Index for the year to December 2013 produced a total return of 21,4%, which is an improvement from the 18,1% recorded for 2012, and comprised a 9,9% income return, coupled with 10,5% capital growth for the year. Headline inflation in Botswana for 2013 was 5,7%, down from 7,5% in 2012, translating into an even greater improvement in total returns to investors and owners in real, inflation-adjusted terms.

The top-performing sector for 2013 was industrial property, followed by residential and retail. The industrial sector outperformed as a result of superior income return and a solid capital growth of 13,5%. The residential market had an outstanding year, and delivered a total return of 24,4%, although the income return of 4,1% was relatively low. The office

sector underperformed relative to the other sectors, largely as a result of vacancy rates increasing from 1,9% to 5,9%. Rental growth was low at 4,3% and capital growth also underperformed at 5,6%. That said, the office market still delivered a reasonable total return of 16,5% for 2013.

The Consultative Index is drawn from the complete portfolio records of local property investors. This index release was sponsored by Botswana Insurance Fund Management, who are also the founding sponsors of the report. The results were launched at an event in Gaborone, which was addressed by Outule Bale, CEO of Khumo Property Assets and guest speaker Monnane M Monnane of the Botswana Institute for Development Policy Analysis, an independent trust that monitors the performance of the economy and the management of public policy implementation.

Launched in 2012, the IPD Botswana Annual Property Consultative Index measures ungeared total returns to directly held standing property investment from one open market valuation to the next. The figures represent the combined holdings of six leading local property investment portfolios: Botswana Insurance Fund Management Property Portfolio, Debswana Pension Fund, Letlole La Rona Limited, Motor Vehicle Accident Fund, Primetime Property Holdings Limited, and Turnstar Holdings Limited.

“We have moved into the third annual cycle of IPD returns reported for this market and are beginning to see definable trends as the sector grows,” says Stan Garrun, Executive Director and Head of IPD South Africa. “The sample has increased by almost BWP1-billion since the index was first released, with a combined value of BWP3,3-billion spanning

more than 380 000m² recorded as of December 2013. As expected, the office sector lagged the rest of the market with vacancies increasing threefold to 5,9%. Sub-inflation rental growth and capital growth was recorded. Retails were quite flat, but stellar performance in the industrial and residential sector propelled the overall return to 21,4%.”

It will be crucial in the next year for more major players to participate in this process to further improve the index, which – at these levels of performance – will help to open up Botswana’s property investment sector to a range of new buyers, and provide important diagnostic tools for the local industry. “Analysts and investors in Botswana and abroad increasingly expect better data, and more transparency and comparability,” says Garrun. +27 (0)11 656 2115, Ipd.com

News Review_AUG_subbed 2 pages removed.indd 10 2014/07/18 11:57 AM


news

In the past 24 months, South Africa’s property industry has

experienced a steady increase of new investors in the market, despite the banks’ lending criteria being tightened. In particular, properties within the R500 000 to R700 000 price bracket are still very active both for experienced investors adding to their portfolios and first-time investors entering the market. These first-time investors are often purchasing their first property, so banks are willing to look at 100% bond grants because of low exposure levels.

High-demand areas for investment are reported by Just Invest to be metropolitan areas such as Pretoria, Centurion and Midrand. “We’re also very excited about Lephalale (Ellisras) in Limpopo, which is one of the

fastest-growing towns in South Africa and a property investment paradise,” says Johan du Plessis, one of the CEOs at Just Invest. The town’s sudden development and growth can be accredited to the Medupi Power Station, which is the fourth-largest power station in the world.

Another driving factor behind the economic boom in Lephalale is the high percentage (50%) of South Africa’s coal reserves in Ellisras, as well as the success of the R170-million Lephalale Mall, constructed in November 2012.

Another investment hot spot is Potchefstroom. This academic city is often referred to as the “city of expertise” – it is home to five tertiary institutions, 30 schools, and numerous research and training centres. The city has an increasingly active student

letting market, with a rising number of students needing to be housed in privately owned accommodation; this has created attractive buy-to-let opportunities for investors. With all this good news and positive growth it isn’t surprising that, in the 24 months since the inception of Just Invest, it has achieved sales in excess of R289-million and smashed sales targets. “We continue to beat targets and exceed expectations,” says Du Plessis. “We offer investors value-for-money residential investment opportunities in the range of R550 000 to R1 895 000, and have the ability to arrange discounts as a result of our bulk buying power. We focus on the client’s needs, and offer low-risk investment opportunities that

yield a higher-than-average rental return with as minimal a monthly shortfall as possible.”

Just Invest generates leads through its selective network of virtual offices and strategic partners in key locations nationally, which has led to a combined database of more than five-million potential investors.

“Two large property investment marketing companies, which could have been previously described as competition, have joined the Just Property Group stable,” says Wouter van Wyk, Just Invest’s other CEO. “They have seen the value in joining Just Invest as new franchises, showing confidence in our business model.”+27 (0)21 801 5648, Justinvest.co.za

Visual International Holdings handed out more than 240

shareholding certificates in the school hall of the Kuils River Technical High School in June to members of the Highbury community, a neighbouring community of Stellendale in Kuils River, one of Cape Town’s northern suburbs. The Kuils River initiative is Visual International’s way of giving back to the community it has been working in. Each certificate is worth about R5 000, which equates to more than 2,5-million shares valued at more than R1,25-million.

In order for this initiative to have maximum impact, Visual International consulted with the Highbury Association to help select the recipients, who include individuals, local sport clubs, crèches and other associations. “This initiative serves to illustrate our commitment to the communities in which we operate,” says Charles Robertson, Visual International CEO. “It’s a

good-will gesture, a move we believe to be good business practice – nothing more, nothing less. It will also build investor confidence at a grassroots level.”

Furthermore, the event was a celebration of Visual International’s recent listing on the JSE AltX. Visual International shares were issued at 50 cents each on 23 May and, in the first week, traded quite lively with prices ranging from 55c to R1. On one of the trading days, Visual International was in the “top three big movers up” on the JSE.

The issuing of these shares honours the many people involved in the Kuils River community and in Visual International’s Stellendale Village since its inception 10 years ago, as well as Visual International’s business roots in this community, which go back 20 years. Stellendale is a 22- hectare mixed-use residential suburb in Kuils River, Cape Town that will ultimately provide about 1 500 homes to middle-income households when completed.

Visual International has already developed 440 homes here, with a further 63 under construction. It plans to unlock further phases of development, including 1 000 residential opportunities and an integrated retirement estate.

Dr Ruben Richards, CEO of the Cape Chamber of Commerce and Visual International Chairman, was the keynote speaker at the event, and shared his vision of changing the business landscape of the Western Cape. “Richards is well known as a leader who ensures that his organisations conform to high standards of integrity, profitability and compliance; he has the track record to prove it,” says Robertson. Visual International is a property development, holdings and services company that develops complete, self-contained suburbs for the middle-income market. Visual International’s mainly residential property investment is focused on this fast-growing property segment in South Africa.

“The JSE AltX listing was a major milestone for Visual,” says Robertson. “We’re proud to have achieved this goal, and the community initiative is our way of extending our appreciation to some of the many people who have encouraged, advised and supported us on this incredible journey.” At the same time, the initiative gives, free of charge, the benefits of property investment to many individuals and organisations who would not otherwise have had access to the many advantages of property ownership. +27 (0)21 919 8954, Visualinternational.co.za

South Africa’s property hot spots see investment soar

JSE AltX-listed Visual International gives back to the Kuils River community

Charles Robertson, Chief Executive Officer of Visual International

News Review_AUG_subbed.indd 11 2014/07/17 10:01 AM


news

Another two leading businesses have taken up offices in Waterfall Business Estate,

continuing the market’s positive response to this rapidly growing prime business node.

Honda Motor SA, the South African and regional business of the world’s largest engine manufacturer, has selected Waterfall Business Estate as its new address. Global power leader, Cummins, has also chosen Waterfall for its main base of operations for South Africa and several other countries across the continent.

Attacq Waterfall Investment Company, the company that holds the development rights for the prestigious Waterfall Business Estate, is 81% held by Attacq Limited and 19% by Atterbury Property Holdings. “We’re thrilled to welcome both great companies to Waterfall and look forward to supporting their business strategy with tailor-made quality offices in an unrivalled location that benefits from the latest designs and operational efficiencies,” says Atterbury Property Developments Director Coenie Bezuidenhout, who is responsible for coordinating Waterfall Business Estate.

Honda will take up its new office building of almost 3 000m² in Maxwell Office Park in November 2014. The building is currently

being fitted out to specifications. The offices have been developed to be environmentally innovative and create a great environment to work in. All office blocks in the Maxwell Office Park are designed to be 4-Star Green Star rated, with carefully selected landscaped gardens and planters surrounding them.

The new Cummins head office will span a substantial 20 000m². It is being developed in Waterfall’s Commercial District, in a joint venture with Zenprop. Earthworks are under way and the development is scheduled for completion in 2015.

Honda and Cummins join a fast-growing number of leading global and national blue-chip companies to locate their head offices and crucial operations at Waterfall Business Estate. This includes the recently completed 44 200m² Cell C Campus and the 23 000m² new Group Five head office. Atterbury Property Developments has also developed premises for Walmart’s Massbuild, Altech Group, Digistics, MB Technologies, Golder & Associates, Cipla and Premier Foods, and is developing for Dräger, City Lodge, Westcon Group, Novartis and Covidien.

Unprecedented in size and impact, the prime Waterfall Business Estate measures about 311ha, with 1,73-million square metres

of developable bulk approved so far. This “greenfield” development allows for the best urban design principles for infrastructure, services, open public spaces and, of course, the buildings themselves. “A big part of Waterfall Business Estate’s appeal is its ideal positioning in Gauteng’s economic hub, and the vast interest shown in the estate so far only proves this point,” says Bezuidenhout.

Waterfall is closing the gap between northern Sandton and Midrand, creating a large commercial growth node. It spans land on both sides of the N1 highway, from the Woodmead interchange through the bustling Buccleuch interchange to Allandale interchange. It enjoys superb access from Pretoria, Sandton and Johannesburg. +27 (0)11 706 1176, Atterbury.co.za

Waterfall Business Estate welcomes Cummins and Honda

Emira Property Fund has confirmed that it

is set to increase its growth in distribution per share to 7,5% for its full year to 30 June 2014, and outperform its 6,5% half-year distribution growth.

Emira Property Fund CEO James Templeton explains there are several factors driving this outperformance. “Our improved portfolio occupancy levels made a significant contribution,” he says. “Emira is achieving net property income above budget, largely because of better-than-expected levels of gross income. We’ve also gained savings on the fund’s management expenses with attentive and focused management initiatives.

Our successful PI buy-backs in February and March also had a positive impact, and the fund benefited from the better- than-expected performance of its investment in Growthpoint Properties Australia (GOZ) because of, among other things, rand weakness.”

JSE-listed Emira Property Fund owns a diversified portfolio of office, retail and industrial properties. Its assets comprise 141 properties valued at R10- billion and listed investments of more than R600-million. Emira Property Fund’s total portfolio vacancies have improved considerably during the year, from 5,6% in June 2013 to five percent at the end of April 2014.

“Emira is performing well in a tough office sector,” says

Templeton. “Retail remains our best performing sector in the portfolio with respect to like-for-like net income, while industrial is our best sector in terms of its vacancies, which are extremely low at below one percent with continuing good levels of demand.” He adds that its improved position will also have a positive knock-on effect for Emira Property Fund investors in 2015. “We’re upbeat about our prospects for the next financial period and expect another good year of real growth in distributions,” he says. “Improved occupancies will continue to drive our top line and, with even better cost control, will contribute to healthy property net income growth.”+27 (0)11 028 3100, Emira.co.za

Emira on target for 7,5% full year distribution growth

Ged Mackell, Cummins Supply Chain Director for Africa, and Gino Butera, Vice President and Managing Director for Africa

James Templeton, Chief Executive Officer of Emira Property Fund

News Review_AUG_subbed 2 pages removed.indd 12 2014/07/18 11:58 AM


news

LDM pg 13.indd 13 2014/07/18 12:53 PM


vacancy report

SAPOA Office Vacancy Survey Report Q2 2014: offices still under pressure

The SAPOA Office Vacancy Survey Report for Q2 2014 is out and reflecting a subdued national office sector due to

increasing vacancies and slowing rental growth

Stan Garrun, Executive Director at IPD South Africa

Economic drivers of the office sectorSouth African macroeconomic environment continues to face headwinds, and some key catalysts of office sector expansion remain under pressure. Chief among these is the rate of economic growth, specifically that of financial and business services.

For the year ending March, real economic growth slowed to 1,6% year-on-year, largely as a result of the prolonged platinum sector strike. While financial and business services held up slightly better at two percent, it is arguably not enough to trigger an upwards shift in employment growth and business confidence.

Business confidence for the quarter ending June came in at 41 (with 50 being neutral) – meaning overall sentiment in the business community is still bearish, which doesn’t bode well for short-term job creation. Employment growth has been slowing in both the public and private sectors, impacting on the amount of office space needed. Private-sector job growth was flat over the past quarter, while public-sector job growth of below one percent was recorded.

Vacancy and rental growth trendThe office vacancy rate has doubled since mid-2008, when the vacancy cycle bottomed out at 4,9%. While this is a reflection of how the demand/supply balance has shifted since the global financial crisis, it also represents an opportunity for brokers and landlords.

At an average monthly gross rental of R85/m², a return to a sub-five-percent vacancy rate translates into more than R1-billion of potential income per annum, which could significantly improve office sector income yields and returns.

For brokers, there is about R250-million of leasing commission on the table on the way down to a five percent vacancy rate – assuming an average gross rental of R85/month, seven percent annual rental escalation and five-year leases at 100% of SAPOA commission tariff.

The increasing vacancy rate is weighing on asking rental growth. Average asking rental is 1,9% lower than a year ago, which is indicative of the currently tough letting environment, where the focus is on tenant retention.

In square-metres terms, a net area of 72 591m² was vacated during Q2 2014. During the quarter, 119 000m² was let and 192 000m² was added to the market.

Vacancy rate by gradeThe last quarter saw a continued increase in vacancy at the top end of the market, with prime vacancies ending the quarter at 8,5%. There is currently 83 000m² of un-let prime space – significantly higher than the 4 000m² recorded at the end of 2012.

The increase in un-let prime office space has mainly been driven by speculative new developments coming to market. While the Sandton office node has been responsible for much of the increase in prime vacancy over the period Q2 2013 to Q1 2014, the Cape Town CBD drove the 150bps increase recorded during the latest quarter.

A- and B-grade vacancies remain sticky and have been trending sideways since 2011. The A-grade segment ended the quarter at 8,4%, while B-grade vacancies continue to stabilise around the 13% mark. The vacancy rate at the lower end of the market remains high but has started to normalise – albeit off a high base. During the previous cycle, C-grade vacancies were much higher and came down significantly as a result of conversion of inner-city office space to residential.

Regional trend On a regional level, the lowest vacancy rate at the end of the quarter was recorded for Pretoria, where an all-office vacancy rate of 9,5% was recorded. Although the vacancy rate in the Pretoria region is slightly up from Q1, it is down on an annual basis.

On a nodal level, vacancy increases in Menlyn and Hatfield were largely offset by declines in Highveld Technopark and Pretoria East. Higher vacancies were also reported in Brooklyn, Silver Lakes and the Centurion CBD, with lower vacancies in Pretoria East and Sunnyside. On an annual basis, the largest increase was recorded for the Pretoria CBD, with smaller increases in Brooklyn and Menlyn.

Cape Town’s office vacancy rate was recorded at 9,7% at year-end – slightly above Pretoria’s 9,5%. During Q2 there were improvements across most nodes, which resulted in Cape Town’s regional vacancy rate declining by 50bps. Century City recorded the largest decline in vacancy rate (140bp) to bring vacancies to five percent at the end of the quarter.

Johannesburg’s regional vacancy rate continues to be sticky as a whole and has been trending sideways since 2009/2010. At quarter-end, the regional vacancy rate was 11,9%. On a nodal level, there were large

The recently released SAPOA Office Vacancy Survey Report for Q2 2014 illustrates a

national office sector that is seen as still being in a slowdown phase because of increasing vacancies and slowing rental growth.

The results were presented by Stan Garrun, Executive Director at IPD South Africa, at the official SAPOA Office Vacancy Survey Report breakfast, which took place in Sandton in July.

The results reveal that, for the quarter ended June 2014, the national office vacancy rate was recorded at 11,3% – up 30bps from the previous quarter. While office vacancies are currently at a nine-year high, they are still below the peaks of the previous two cycles (1993 and 2003). The average asking rentals are currently 1,9% lower than they were a year ago, and prime vacancies continue to increase at an alarming rate. The vacancy rate of A- and B-grade properties has essentially been trending sideways since mid-2011.

Inner-city vacancy rates remain high at 16,6%, compared with the 9,7% of city decentralised office nodes. Development activity in the office sector is high, given the level of vacant space currently in the market. Development activity remains concentrated, with only 10 nodes accounting for 75% of new development.

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vacancy report

The SAPOA Office Vacancy Survey Report was well attended by industry professionals and property journalists.

increases in available space in the Constantia Kloof, Illovo and Morningside nodes. This was offset by smaller, positive moves in larger nodes such as Sandton.

Durban’s regional vacancy rate remains high but improvements were observed across most nodes. However, Durban still has the highest vacancy rate among the country’s four major metros. The region’s vacancy rate was down on 12 months ago – but still 40bps higher than last quarter. On a nodal level, Berea and Westville recorded higher vacancies since the quarter before, compared to a slight tick up in Hillcrest and Ballito.

Comparing inner city and decentralised resultsAs was the case in the previous cycle, inner-city office vacancies are significantly higher than those in city decentralised office nodes. Still, inner-city vacancies are currently lower than they were in 2003 as a result of structural change brought about by the conversion of CBD offices to residential space.

The current levels of inner-city office vacancies are largely driven by the Durban and Johannesburg CBDs, where vacancy rates of 20,5% and 17,7% were recorded at quarter-end. The vacancy rates of offices in the inner

cities of Cape Town and Pretoria are currently much lower at 13,9% and 10,4% respectively.

As at the end of Q2 2014, the vacancy rate of city decentralised office nodes was back in single digits at 9,7%.

Development activityDevelopment activity remained high, with 700 000m² under development. Expressed as a percentage of existing developments, development activity is currently at four percent. While this level is off the highs of 2006-2008, it is high given the level of available space currently available in the market. Un-let new developments could weigh on asking rental growth in the short to medium term.

Development activity remains fairly concentrated: a third of office development is taking place in Sandton and more than half of development is concentrated in five nodes. In what is perhaps a sign of cautiousness among financiers and developers, the development pre-let rate has been trending up since 2008 and is currently at levels last seen in 2003 (the peak of the previous vacancy cycle). Speculative development peaked in 2008, when only 22% of new developments were pre-let.

Office cycleThe office sector can currently be seen as still being in a slowdown phase because of increasing vacancies and slowing rental growth. However, the different office grades find themselves at different phases of the cycle – especially at the top and bottom ends. The slowdown in the prime office segment of the market is driven by un-let new developments entering the marketplace. A- and B-grade office vacancy rates have been increasing at a slower rate but haven’t yet showed any signs of turning the corner.

Currently, the total vacancy rate (including un-let new developments) is similar to 2005 levels, but development activity is currently significantly higher. This could impact negatively on landlords’ negotiating power, especially seen against a background of lower economic growth when comparing the current macroeconomic environment against that of 2004/2005, when real economic growth was above five percent for 14 straight quarters.

On a nodal level, there is increasing variance in the vacancy rate and level of rental growth of the different nodes, which underlines the importance of nodal selection at this point in the property cycle.

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education, training and development

Undergraduate programmeIn 2010, the Department of Finance and Investment Management at the University of Johannesburg introduced property valuation and management modules as electives in the BCom Finance degree. This provided undergraduate students with an opportunity to acquire knowledge regarding the physical aspects of immovable property as well as the factors that influence the value of investments in immovable property.

Bridging programmeIn 2013, a bridging programme in Finance was introduced to assist individuals without property-related qualifications in gaining the necessary background to articulate into the BCom Honours degree.

Additionally, the Advanced Diploma in Property Valuation and Management was introduced; it is tailor-made for holders of national diplomas in real estate. It also provides an opportunity to articulate into the BCom Honours degree.

BCom HonoursIn 2012, the Department of Finance and Investment Management also introduced a BCom Honours degree in Property Valuation and Management.

The Honours in Property Valuation and Management will attract students who are interested in specialising in property valuation and management. The curriculum will include the following modules:

● Advanced Property Valuation and Management A;

● Advanced Property Valuation and Management B;

● Advanced Property Finance and Investment;

● Applied Property Law A; ● Applied Property Law B; ● Property Portfolio Management;

● Research Methodology; and ● Case study.

The University of Johannesburg is extremely proud to offer an Honours degree in Property Valuation and Management. The BCom Honours in Property Valuation and Management will go a long way in addressing the needs of the property industry and in particular property-portfolio valuation and asset management, where finance, investment and valuations are very important.

Partnership between SAPOA and the University of JohannesburgThe University of Johannesburg is the latest university to partner with SAPOA in the development and presenting of programmes specifically developed for the commercial and industrial property industry. The university also accredits and certifies our existing ICPP, ECPP, PMP and newly developed Property Financial Programmes (PFP) and the SAPOA E-Learning Programme.

SAPOA serves on the University of Johannesburg’s Advisory Committee with regards to property- and valuations-related qualifications and programmes.

Property Financial Programme (PFP)SAPOA and the Department of Finance and Investment Management at the University of Johannesburg have partnered to develop a Property Financial Programme at basic, intermediate and advanced level for the commercial property industry. The programme content of each level is explained below.

Property Financial Programme (Basic)The Property Financial Programme Basic Level is a two-day programme aimed at new entrants and people

who have no formal experience or knowledge of financial concepts in the commercial or industrial property industry.

The following modules are part of the basic programme.

● Introduction to the financial and accounting environment;

● Working capital management; ● Introduction to time value of money; and

● Customer identity.

The outcomes are summarised as follows:

● Explain and appraise the context within which the financial management function takes place in property.

● Apply the working capital management concept by performing simple calculations.

● Explain the time value of money concept and perform simple calculations on single amounts, annuities, perpetuities and mixed streams of cash flows.

● Describe different customers and participants in the property industry.

Property Financial Programme (Intermediate)The Property Financial Programme Intermediate Level is a three-day programme. The Basic programme is a prerequisite for entry into the Intermediate Level.

The following modules are part of the intermediate programme:

● Advanced time value of money;

● Budgeting; ● Capital budgeting and decision-making;

● Lease analysis; and ● Utilities management.

Martin Ferguson, SAPOA’s HR, Education, Training

and Development Manager, collaborates

with thought leaders in South Africa’s property sector

New property degree at the University of Johannesburg

The University of

Johannesburg is the

latest university to

partner with SAPOA

in the development

and presenting

of programmes

specifically developed

for the commercial

and industrial

property industry

HR_AUG_subbed.indd 16 2014/07/18 11:11 AM



● Explain the time value of money concept and perform advanced calculations on single amounts, annuities, perpetuities, mixed streams of cash flows and interest conversions.

● Differentiate between the various types of budgeting and their purpose.

● Understand the cost of capital concept by performing simple calculations, and explain basic capital budgeting techniques to assist in investment decisions.

● Explain different lease and rent types, and conduct a tenant analysis.

● Understand the methods of and need for facilities management.

● Other property related levies and charges will be accurately explained, calculated and applied.

Property Financial Programme (Advanced)The Property Financial Programme Advanced Level, is a three-day programme. The Intermediate Level training programme is a prerequisite for entry into the Advanced level.

The following modules are part of the advanced programme:

● Lease negotiations; ● Discounted cash flow analysis; ● Financial statement analysis; ● Environmental aspects; and ● Risk analysis.


● Explain the aspects important in successful negotiations of leases.

● Explain the basic valuations through discounted cash flow methods by performing simple calculations; and discuss, explain and apply the underlying principles of valuing.

● Explain and appraise the context within which the analysis of financial statements function takes place.

● Explain the different environmental aspects associated with property finance.

● Explain the concepts of risk and uncertainty by calculating, applying and solving issues of simple probability as well as issues of regression and correlation.

For more information, refer to our website and educational brochure.

SAPOA E-Learning ProgrammeSAPOA currently offers the Essential Commercial Property Programme as a public programme at universities around South Africa. It is a full four- day programme. Our first E-Learning programme is based on this programme. The programme contents will remain the same but teaching and assessment methods will change in line with the E-Learning solution. Delegates will be able to access training material on their desktop, tablet and mobile devices.

The University of Johannesburg has partnered with SAPOA on the E-Learning and will accredit, assess, moderate and certificate the SAPOA Essential Commercial Property E-Learning Programme (E-ECPP) in terms its the University of Johannesburg’s assessment criteria.

Registration for the E-Learning Programme will open in September.

education, training and development

The BCom Honours

in Property Valuation

and Management

will go a long way

in addressing

the needs of the

property industry,

in particular

property-portfolio

valuation and asset

management where

finance, investment

and valuations are

very important

SAPOA has developed an e-learning training method for its membersSAPOA has developed an e-learning training method for its membersSAPOA has developed an e-learning training method for its members

On top and on trend:Education made easier for you

HR_AUG_subbed.indd 17 2014/07/18 6:19 PM

2014THE ECONOMIC IMPACT

of the

COMMERCIAL REAL ESTATE SECTOR

on the

SOUTH AFRICAN ECONOMY

THE ECONOMIC IM

PACT of the COMM

ERCIAL REAL ESTATE SECTOR on the SOUTH AFRICAN ECONOMY

2014/06/02 10:43 AM

THE ECONOMIC VALUE of the COMMERCIAL PRIVATE PROPERTY SECTOR

MARCH & APRIL 2014

SAPOA - the voice of commercial property

1

THE ROLE AND IMPACT of the

COMMERCIAL PROPERTY SECTORTHE ECONOMIC VALUE

of the

COMMERCIAL PRIVATE PROPERTY SECTORAPPLICATION PROCESSING REPORT

WESTERN CAPE 2014

WEST COAST

CAPE KAROO

GARDEN ROUTE & LITTLE KAROO

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2014/06/06 10:40 AM

To read these reports visit ou

r web

site

www.sapoa.org.za

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Contact Jane on e-mail, [email protected]

SAPOA awards for excellence 2014

CORPORATE OFFICE DEVELOPMENTS

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SAPOA publications.indd 18 2014/07/18 5:45 PM

legal update


Structural defects dictate landlord’s obligations

By Eugenia Makgabo

1 Introduction1.1 Landlords’ duties in accordance with their obligations to maintain a building have, over time, become more stringent and watertight. There is a duty for landlords to adhere to laws with regards to maintaining a building which a tenant is making use of in accordance with common law, statutory laws and contractual law.

2 Responsibilities of the landlord during the construction process2.1 The most recent of the aforementioned laws is the Construction Regulations (“Regulations”). These Regulations primarily focus on the establishment of a relationship between a client, contractor and principal contractor pertaining to construction work. A client is defined as “any person for whom the construction is formed”. This essentially encompasses all landlords, property owners, property developers and property managers. “Construction work includes the construction, erection, alteration, renovation, repair, demolition or dismantling of or addition to a building or any similar structure, or the construction, erection, maintenance, demolition or dismantling of any bridge, dam, canal, road, railway, runway, sewer or water reticulation, or the moving of earth, clearing land, the making of excavation, piling, system or any similar civil engineering structure or any similar type of work.”

2.2 The Regulations are specific pertaining to the measures that must be taken by the contractor when construction takes place, and a landlord would thus be regarded as a contractor. It is imperative for a fall-out plan to be in place. The parameters for the maintenance of a roof are included in Section 5 of the Regulations and state the following:

“(a) That the roof work has been properly planned; (b) that the roof erectors are competent to carry out the work; (c) that no employee is permitted to work on roofs during inclement weather conditions or if any conditions are hazardous to the health and safety of the employee; (d) that all covers to openings and where fragile material

exists must be sufficient to withstand any imposed loads; (e) that suitable and sufficient platforms, coverings or other similar means of support have been provided to be used in such a way that the weight of any person passing across or working on or from fragile material is supported; and (f) that there are suitable and sufficient guard-rails, barriers and toe-boards or other similar means of protection to prevent, as far as is reasonably practicable, the fall of any person, material or equipment.”

The above-mentioned section clearly sets out a high standard that is essentially expected from a landlord when the roof is being constructed. It states that all these requirements must be included in the fall- out plan. Specific inclusions have been made that are indicative of the fact that the work done be conducted in a way that is of sound standard – but it must safe for those who will be “under” it.

The Regulations further state that an owner of a structure must ensure that the structure is maintained in such a manner that it remains safe for continued use, and records of such maintenance must be kept and made available to an inspector upon request. This section clearly states that there is a continuous duty for landlords to maintain the structure and that records pertaining to this must be kept. An inspector may request such records, and therefore the inference is that if the structure is not maintained by the landlord, the tenant can report such misconduct to the inspector.

2.3 According to the National Building Regulations, there are certain requirements or measures that must be met and adhered to by the owner in terms of the structural safety performance of the buildings and the behaviour of buildings under all actions that may be reasonably expected to occur. These include the measures taken to resist the penetration of rain water and the passage of moisture into the interior of the building. Regulation L specifically deals with the maintenance of roofs and states the following:

The roof of any building shall be so designed and constructed that it –

(a) safely sustains any actions which can reasonably be expected to occur and in such a manner that any local damage (including cracking) or deformation do not compromise its functioning; (b) is adequately anchored against wind uplift;(c) is durable and does not allow the penetration of rain water or surface water to its interior; (d) does not allow the accumulation of any water upon its surface; and(e) as part of a roof and ceiling assembly, provides adequate height in any room immediately below such assembly.

2.4 There are specific standards that a landlord must adhere to pertaining to the construction of a roof, which would be applicable in accordance with the type of roof being constructed. This is in order to enable the roof to be watertight and prevent it from potential leakage. The standards are included in SANS 10400, which establishes requirements for roof coverings and waterproofing systems, and drainage and waterproofing of flat roofs. SANS 92 deals with bituminous roofing felt, which covers two types of bituminous roofing felt suitable for waterproofing and in the construction of built-up roofs. SANS 428 deals with the classification, usage and application for under-roof and side-cladding insulating materials and roof panels. SANS 517 deals with establishing rules and requirements for the design, fabrication

Legal Review_AUG_subbed updated.indd 19 2014/07/18 4:24 PM


legal update

and construction of buildings with roofs. SABS 940 specifies requirements for roof paint based on synthetic polymers dispersed in a water phase. It further makes provision for a self-priming paint for use on roofs, including new and aged galvanised-steel roofs and sidings.

3 The landlords’ legal position in ensuring the roof is watertight and the impact on tenants operations should there be water leakage3.1 There are general principles that will govern lease agreements. Such principles consist of obligations between the landlord and the tenant.

The obligations of a landlord and a tenant are trite in law. Such reciprocal obligations would normally be contained in a lease agreement signed by both parties. The landlord must give the tenant full use and enjoyment of the premises during the period of the lease agreement in exchange for the tenant paying rent to the landlord. This aspect is critical and would need to be explored in order to determine to what extent one would view the tenant’s right to use and enjoyment as being encroached by the landlord, and what the consequences would therefore be.

In the Loch Logan Waterfront (Pty) Ltd v Carwash 4 u (Pty) Ltd and Another (2012) ZAFSHC case, when it rained the property would leak. Such leaks affected the electrical equipment, and this had an adverse impact on the first respondent’s core operations. It was held that “The lessee would be entirely absolved from the obligation to pay rental if he were deprived of or did not receive any usage whatsoever. This would thus be the yard stick for a lessor in terms of the fulfilment of its obligations.

If a tenant is put in a position where he is completely unable to use the premises for the purpose for which it was rented due to structural defects, then this would be material and would essentially prejudice the tenant. The landlord would therefore be liable in this instance because the tenant would be put in a “worse off” position. It was further held that “the disruptive cause complained of was an infrequent event. It was not a perennial event. By its very nature, rain is a seasonal natural occurrence.”

This aspect would also have to be assessed in terms of the landlord being aware of weather conditions in the area, this being a consequence of the structural defect and therefore a consideration when the roof is being constructed.

4 The provision of access to the premises given to the tenant by the landlord and the consequences connected therewith4.1 There is also an obligation on the landlord that, while the tenant has full use and enjoyment of the premises, this should be done in a manner that is safe. The fact that the premises is given to the tenant in order for the tenant to carry on with its business is not enough.

It was held in the Mpange and Others v Sithole (2007) ZAGPHC that “The respondent is under a duty to deliver and maintain the property in a condition reasonably fit for the purpose for which it has been let. The duty includes the obligation that lessees shall not be exposed to any unnecessary risk to life or property and that lessees shall occupy the premises with safety.”

The landlord, in not fulfilling the aforementioned duties, should guard against being regarded as negligent by the tenant. The test for negligence is based on reasonableness, namely the reasonable foreseeability of harm, the reasonable precautions to prevent the occurrence of such foreseeable harm, and the failure to take reasonable steps. Conduct would therefore be questionable if a reasonable person failed to take the necessary steps where he/she would have foreseen the possibility of such harm. The landlord must therefore take reasonable precautions to cure any harm that he foresees with regard to the premises.

4.2 The advent of the Consumer Protection Act has also introduced stringent standards that have to be adhered to by the landlord. The Consumer Protection Act would not apply to a tenant who is a juristic person whose asset value or annual turnover at the time of the transaction exceeds R2-million. Should the tenant be a consumer, then the lease agreement should firstly be worded in plain and simple language, and it should not limit or exempt the landlord from liability for any loss attributable to gross negligence or require the tenant to assume liability for this. Landlords are therefore not permitted to have clauses that absolve them from responsibility.

Should the tenant get injured or killed as a direct result of the landlord’s negligence to maintain the property, the landlord will be responsible for this occurrence. In addition, landlords may not hold tenants responsible for costs incurred if the

problem has arisen due to the landlords’ failure to maintain the property to an acceptable living standard.

5 Circumstances that would prevent a tenant from obtaining insurance cover5.1 A tenant may insure his/her plant and equipment against water leakages. This can be done by means of a Multimarket iii Policy. A Multimarket III Policy is commonly known as the Commercial Lines Policy. This policy covers a commercial entity, and is specially designed to cover a large number of different types of sections needed in the commercial environment. This policy provides short-term insurance cover for any loss of or damage to items specified under each specific section provided. However, should water leakages already exist, the insurance company will have to send out an assessor in order to determine the extent of the damage and the exposure that the equipment and plant has had to the leakage. Generally, cover will not be given in this instance as the problem already existed.

6 Conclusion6.1 The landlord’s duty to maintain the exterior of the building – specifically the roof of a building – is clearly set out in legislation and is an obligation that has consequences attached to it.

According to the aforementioned legislative provisions, should the landlord not adhere to his obligation, he will then have to pay a fine or face imprisonment. However, it seems from case law that the courts have dealt with this issue in this manner; they have placed a standard. Bearing in mind that issues will always be dealt with on a case-by-case basis, such standard gives room for discretion in that, should the roof leak, the presiding officer will look at whether the damage deprives the tenant of the full or partial use and benefit of the premises in terms of the purpose for which it was let.

The landlord should, however, also take heed to the fact that the safety of the premises and those who occupy it is paramount, and therefore should be made a priority.

It is in the best interest of a landlord to ensure that the roof is maintained at all times and attended to in order to avoid a situation where a landlord is found in contravention of the relevant legislation that governs his obligations.

Legal Review_AUG_subbed updated.indd 20 2014/07/18 4:24 PM


news

Development is currently well underway on the Ithala Trade Centre, situated at Durban’s Point Waterfront, with completion expected by the end of 2014.

The property is being developed as a commercial centre offering nine fl oors of offi ce space, as well as a parking and retail area with a total gross space of 9 595 square metres. The objective is to consolidate and harmonise development activities, offering a one-stop shop facility.

The Ithala Trade Centre is regarded as a development hub, a fi rst for KwaZulu-Natal, situated at the gateway to the city and providing easy access and ample secure parking. It boasts an excellent

setting, surrounded by mixed-use buildings and a modern network of canals, and is well located in terms of shopping amenities, conference facilities and other institutions.

Designed and decorated along modern classic lines, the Ithala Trade Centre follows a generally open-plan approach, making best use of the fl oor space and featuring environmentally-friendly fi ttings to reduce operating costs. Secure parking is available on two levels and at street level, while provision has been made for restaurants and coffee shops on the ground fl oor.

Not only is this a game-changer project for Ithala, but it is also a signifi cant boost for economic

development in KwaZulu-Natal, unlocking the potential for entities in the development environment to work together for the benefi t of the Province.

For more information, please contact the offi ce of Ithala Group Properties Executive, Beston Silungwe, on 031 907 8834 or via email: [email protected].

ITHALA TRADE CENTRE UNLOCKING DEVELOPMENT EFFICIENCIES

FOR KWAZULU-NATAL

WWW.ITHALA.CO.ZA

Ithala pg 21.indd 21 2014/07/18 12:59 PM


BOMA Conference

Building on commercial real estate

Held in Orlando from 22 to 24 June 2014, this year’s

Every Building Conference and Expo saw more

than 3 200 attendees make for Florida to be part of this

important commercial real estate event. The expo had

one of the largest international turnouts in years, with

more than 150 international attendees from 30 countries.

Three new affiliates (Greece, Panama and Russia)

recently joined the BOMA family with more on the way.

Focusing on the state of the industry, the key trends

and takeaways were presented by BOMA President Henry

Chamberlain:

l Overall economic outlook: more than 200 000 jobs a

month being added, inflation still tame and stocks

have been doing well.

l CRE market: rates of absorption are on the rise,

construction increasing in some cities, rents are

stabilising, asset values are going up, vacancy rates

down but still higher than we would like at 14,8% ,

Real Estate Roundtable’s sentiment survey stagnant.

l The “53%” factor is the percentage of building level

annual total return due to changing features around

the individual property. This is where BOMA creates

asset value.

l The Better Blocks Project shows that repurposing

of older buildings helps reclaim communities in

underutilised neighbourhoods, showing investors how

to reposition the market.

l The best way to acclimate millennials in the workplace

is to create alternative workplaces and encourage a

more collegial learning/working environment.

l “Moore’s Law” shows us that capacity for minimum

costs continues to double. Building systems and

products need to adapt constantly to keep up.

l The mind-reading office is upon us. Brookfield’s

video wall with motion-tracker interface at the

World Financial Center and CBRE’s Los Angeles

office Liquid Galaxy Theater have become the new

water coolers.

l The future of space is about choice. Open space for

the extroverts; focus space for the introverts. Smart

design includes both.

l The co-working trend continues to grow as

collaborating companies share space. Herman Miller’s

Living Office helps individuals and organisations

customise their methods, tools and places of work to

enable shared character and space.

l Decreased capital expenditures and administrative

costs equal leaner properties. What was once a

17 500m² building may now only be 15 000m²;

l Technology and trends will never replace good old-

fashioned crowd-sourcing.

A SAPOA take on BOMARepresenting SAPOA at the BOMA 2014 Convention,

SAPOA CEO Neil Gopal and SAPOA President Amelia

Beattie attended – and were quite impressed. “The

conference was well organised and attended,” says

Gopal. “Current and future expectations for the

industrial sector, the study tours, networking

opportunities, and learning from other international

initiatives were good takeaway points.”

FROM LEFT SAPOA CEO Neil Gopal, SAPOA President Amelia Beattie, BOMA President and Chief Operating Officer Henry H Chamberlain BOMA International Regional Council

Gopal and Beattie felt that networking and meeting

international delegates, the study tour – where they

visited a building managed by JLL – and the opportunity

to understand and get insight into what is happening in

international markets were the most valuable. “The US

market is much larger and very difficult to compare to

South Africa,” says Gopal; however, he adds that the

following was noted:

l US unemployment is at 6,3%;

l GDP growth is at 2,4% for 2014;

l Vacancy rates are 14,8%;

l There is a 63% increase in office market absorption;

l Demand is increasing (11-million square feet

absorption and 60-million square feet of construction);

l Bigger is not always better. Older smaller buildings

equal more vibrant communities;

l Neighbourhood precincts work much better because

they’re more walkable, younger and more professional;

there are more cultural outlets, more entrepreneurship,

more diversity; people take control;

l The office market recovery is slower because square

meterage per person is decreasing due to technology.

Gopal says that SAPOA – and the South African property

industry – can learn from BOMA in terms of international

best practice, the setting of standards and guidelines,

and how to best run an association.

“I enjoyed my time with Amelia,” he says. “This

was out first trip to BOMA, and we engaged a lot with

the delegates.”

BOMA_reworked_subbed.indd 22 2014/07/17 11:19 AM


BOMA Conference

Value, opportunity and knowledge was on display at BOMA’s 2014 Every Building Conference and Expo. Here are the highlights from the 2014 BOMA ConferenceBy Amanda Marsh, Catie Dickson and Candace King

BOMA Fellow and Vice President at Columbia Property Trust Patrick Freeman swears in BOMA Chair and Chief Elected Officer John Oliver

FROM LEFT BOMA Canada President and CEO, and Vice Chair: BOMA International Regional Council Benjamin L Shinewald; National Head of Customer Service, Property and Asset Management at JLL Australia, and Past Chair: BOMA International Regional Council Peter Merrett; Vice President, Marketing and Communications: BOMA International (Washington) Lisa Prats; SAPOA CEO and Chair: BOMA International Regional Council Neil Gopal; Property Council of New Zealand CEO and Vice Chair: BOMA International Regional Council Connal Townsend

FROM LEFT BOMA Chair Elect Kent C Gibson; BOMA Chair and Chief Elected Officer John Oliver; SAPOA CEO Neil Gopal; SAPOA President Amelia Beattie; BOMA Immediate Former Chair and CEO Richard W Greninger; BOMA President and Chief Operating Officer Henry H Chamberlain

FROM LEFT BOMA Immediate Former Chair and CEO Richard W Greninger; National Head of Customer Service, Property and Asset Management at JLL Australia, and Past Chair: BOMA International Regional Council Peter Merrett; SAPOA CEO and Chair: BOMA International Regional Council Neil Gopal; BOMA Canada President and CEO, and Vice Chair: BOMA International Regional Council Benjamin L Shinewald; Property Council of New Zealand CEO and Vice Chair: BOMA International Regional Council Connal Townsend

The BOMA 2014 Conference was internationally attended by real estate leaders and markets, including SAPOA, which proudly represented South Africa

BOMA_reworked_subbed.indd 23 2014/07/17 11:19 AM


SAPOA’s female presidents

Lipstickand leadership

SAPOA’s female Presidents

Phot

ograp

h by M

ark Pe

ttiph

er


SAPOA's Female Presidents_SUBBED.indd 24 2014/07/18 2:16 PM



As the third female SAPOA President in a decade, STANLIB’s Amelia Beattie believes women have come a long way in the business of propertyBy David A Steynberg

First it was Lynette Finlay, then Marna van der Walt. Now it’s Amelia Beattie. The past

decade has seen exponential progress in the female representation at the very top structures of SAPOA: the Presidency.

At the time of their appointments – two were CEOs while one is a CIO – the sector certainly professionalised, focusing heavily on appointing experienced and highly educated managers to run massive property portfolios, both from a services perspective as well as an asset management and investment point of view.

As the industry saw more and more women climbing the ranks in their own companies, so too did the association’s board and agenda become more integrated and female-centric, with a focus on education being central.

New SAPOA President Amelia Beattie has coined the clever phrase of “putting the ‘REAL’ in real estate” with relationships, education, advocacy and leadership”. And it’s the second letter she is truly passionate about.

“We can only transform the industry if we focus on educating the people in it,” says Beattie the day before leaving for the 46th SAPOA Convention in Cape Town. “One of the ways we’ll do that is through a skills-gap analysis. Today we don’t understand where the gaps are. We want to direct money around educating students but we don’t know where we should be focusing. We’re kind of shooting in the dark. We don’t know if we’re addressing the skills gap.”

Beattie says STANLIB, Immediate Past President Estienne de Klerk’s Growthpoint Properties, and Cape Town Mayor Patricia de Lille have each pledged R50 000 towards the cause, while SAPOA has pledged about R130 000 to the association’s bursary trust. The industry has been called to support the initiative and to add to it, and has managed to raise a total of R725 000 following the call to action. This is just the beginning, however.

“Our target is to have 50 students in the programme by SAPOA’s 50th anniversary,” says Beattie, adding that this is a five-fold increase to be realised in just two years. “We’re putting graduates through university. There are gaps in middle and senior management, and the pool from which we can choose is thin.”

Perhaps it’s her pioneering spirit, born of a desire to build something that did not exist before – the same drive she had when she left Old Mutual Property to take the helm of what she describes as South Africa’s premier asset owner: the Liberty property portfolio.

Maybe it’s her economics brain that wants to change the landscape as we know it, combined with her accounting hat that gives her clarity in her purpose: a road map to better female representation at the highest echelons of the industry.

But she is not attempting to achieve this by driving the female agenda at all costs. Beattie believes women should not sacrifice who they are and what they want on their journey to the top.

“We are mothers and wives, and that’s as important as our career,” she says. “As we develop women, we need to equip them with other skills to prepare them for big careers. And the big careers in the big companies are not only found on a JSE board. Our inability to see past our listed blinkers prevents us from seeing just how far women have come.

“There are a lot of large unlisted companies that are run by women. Many financial directors are female – last I counted, there were seven. Don’t forget the role they play: they are as important as the CEO and can run those organisations on any given day.”

And just because you are a woman does not mean your male peers are going to treat you differently, she says, explaining that women can negotiate just as hard and that their voices really are heard. “Women need to make up their own mind to take the next step. They need to know they have what it takes to do that,” she says.

Instead of women adopting chameleon characteristics to fit into their organisations, Beattie says it’s the industry that needs to transform. “Business is hard, and women need to be able to stand up for what they want and the way they want it, in a manner where they don’t lose who they are as women and end up adopting a subservient role. They need confidence in businesses,” she says, adding that companies need to adopt a more inclusive approach when it comes to their female employees. “General pressures of life, such as taking a sick child to the doctor, fall on women’s shoulders more often than not. Organisations need to understand that, and they need to make provisions. These provisions include flexible working times, no meetings at 7am and no late dinners every night of the week – all those things where women feel they can contribute, and are not seen to be lower and slower because they can’t engage in all the activities.”

Women also don’t need to learn to play golf to get into an organisation, she says, adding that they need business confidence as much as they require personal confidence.

“We need to be able to verbalise what we want,” she says. “If there is a CEO role available, we need to be able to tell whoever makes the decisions that we want to be considered for that position as well. This is where we need to learn from our male counterparts: they know how to lobby and how to manage their stakeholders.”

Beattie’s rise has been pretty phenomenal. After she got her degrees in transport economics and accounting, she spent 10 years raising her young children before falling into property at the Riverside Mall in Nelspruit. And while she has never worked for a woman, it’s her feminine touch that has helped instil a caring environment between her staff at STANLIB.

“I try to create an environment where we care for each other,” she says. “That does not mean I’m softer on their delivery – but if anyone has a personal need, I’ll try to take care of it. If you create that nurturing environment, people will want to do anything for you. That environment creates work of exceptional quality.”

“Women need to make up

their own mind to take

the next step. They need

to know they have what

it takes to do that”

Amelia Beattie, SAPOA President

SAPOA's Female Presidents_SUBBED.indd 25 2014/07/17 11:57 AM



Lynette Finlay

As the first female SAPOA President (2004 to 2005), property management

company Finlay & Associates’ CEO Lynette Finlay had a front seat in the transformation agenda of the association – both during the adoption the Property Charter and in greater representation of women.

In 2004, Finlay & Associates was made up predominantly of women. But there was not a female director in the listed property sector at the time, and very few in top positions in the industry. This led to Finlay being able to employ top women – because they were not recognised by the industry itself.

Finlay was a founding member of the Women’s Property Network (WPN), which was instrumental in encouraging them to play a greater role in the industry. During her Presidency (and following the establishment of the WPN), the SAPOA Convention saw a marked increase in women attendees.

Her tenure was characterised by the restructuring of SAPOA’s National Council, so that it was made up of individuals heading up committees, which drove the changes that needed to be implemented. This became a 13-year-long process, and resulted in the SAPOA Method for Measuring Floor Areas being adopted.

“We also formed a Government Committee that tracked interaction between the property industry and government, and represented the industry in government lobbying,” she says.

“SAPOA needs to serve its members – so it needs to be at the forefront of issues that face the property industry,” she says. “It needs to be the collective voice for all challenges, one that brings about change that will meaningfully and positively impact on the industry. It shares a common purpose to see that the property industry as a whole continues to prosper sustainably, provide jobs, educate people and provide the backbone to the economy.

“The power of the organisation lies in its ability to serve. I’m really excited that Amelia Beattie is taking on this enormous role – and I know she has the guts and determination to make a difference.”


27


SOUTH AFRICAN PROPERTY REVIEW

Marna van der Walt

As the world uttered the “R-word” (recession), then-CEO of JHI Properties

Marna van der Walt was preparing for the start of her Presidency at SAPOA.

“I was asked by a friend of mine, Alex Phakati (then the President of SAPOA), to take up the responsibility,” she says, adding that being a woman did not cause the board or the industry to treat her any differently. Her biggest fear, however, was that she wasn’t fully prepared. “I was still very young and felt I could do with more wisdom. It was at a time when we were working very hard on agreeing on a Property Charter for the property industry.”

Over and above the Property Charter, Van der Walt’s board contributed by

implementing the bursary fund for the industry and driving for aligned

educational courses with services SETA accreditation. Her focus was

much the same as Beattie’s. “I think her focus is spot-

on – she wants the property industry to work towards

consolidation, education and leadership in Africa,”

says Van der Walt, giving Beattie a small piece

of advice: “The term of President is short.

You need to focus on core strategic initiatives.”



eye on AFRICA


The Africa series:

our monthly

country-by-country

focus

Zambia

▼ Population (2013) 14,6-million▼ Major cities Lusaka (3,1-million),

Kitwe (500 000), Ndola (500 000)▼ Currency Zambian kwacha (ZMK)▼ Total area 752 618km²▼ GDP growth (2013) 6,5%▼ Key industries Copper mining and processing,

construction, food, beverages, chemicals, textiles

Zambia at a glance

focus

Africa uncovered

Much like its African neighbours, Zambia has a colonial past, is rich in natural resources and is

eagerly catering for a rising middle class. Despite the commonalities, Zambia is performing exceptionally well in comparison to some of its peers. In 2013, the World Bank classifi ed 27 of Africa’s 54 nations as either mid- or high-income countries, with Zambia accredited to mid-income status in 2011 – it currently sits in the lower-middle-income category, according to the World Bank.

Situated in south-central Africa, Zambia’s economy is growing thanks to its strongest industry sectors – the country is rich in copper and is currently one of the continent’s largest copper producers. The industry accounts for about 75% of the country’s export earnings.

Zambia’s agricultural sector is another economic draw card and has averaged around six percent per annum over the past few years. This is the result of the Zambian government’s support of the agri industry

and the diversifi cation of the sector. But the industry has proved bumpy because of the weak performance of key sectors of agriculture and unsuccessful harvests, which have had a dampening effect on foreign direct investment.

Tourism is also a major sector in Zambia, with Victoria Falls being its most prized natural asset. One of the world’s most magnifi cent waterfalls and a UNESCO World Heritage site, Victoria Falls attracts thousands of tourists annually, with some even daring to swim in its “devil’s pool” – a naturally formed eddy situated close to the edge of the falls when the river fl ow is at a certain level. Zambia is also home to several game parks, which draw in wildlife enthusiasts from around the world.

Visitors to Zambia are attracted to the country’s political stability – Zambia has been relatively pleasant and trouble-free for several years since its peaceful transition to independence from its former colonial rulers in 1964.

In the late 18th century, Portuguese explorers visited the area that falls within Zambia, and it was in 1851 that anti-slavery crusader, Scottish explorer and missionary David Livingstone set foot on Zambian soil. Livingstone was the fi rst European to see the Mosi-oa-Tunya (“the smoke that thunders”) or Victoria Falls.

During the 1800s, the area was colonised and ruled by Britain as Northern Rhodesia, and in the late 1920s copper was discovered, which spurred on an infl ux of Europeans to the area.

With an economically viable copper-mining industry, a thriving tourism

sector and an emerging middle class, Zambia is walking the quintessential

African growth pathBy Candace King

Africa Zambia_SUBBED.indd 28 2014/07/17 4:17 PM

eye on Africa

29SOUTH AFRICAN PROPERTY REVIEW 29SOUTH AFRICAN PROPERTY REVIEW

eye on Africa

MAIN IMAGE With tourism as one of its key sectors, Zambia is home to several wildlife nature reserves and game lodges INSET MAP Population per region (in thousands)

700-706,5

706,5-960

960-1 610

1 610-1 760

1 760-2 200



eye on Africa

In 1960, Dr Kenneth Kaunda, who would become Zambia’s fi rst president, established the United National Independence Party (UNIP) to campaign for independence, which fi nally arrived in 1964.

During the late 1960s and the 1970s, key sectors – including the copper mines – were nationalised by Kaunda, who also introduced central planning into the economy. He imposed single-party socialism during this time, with UNIP being the only legal political party within a “one-party participatory democracy”. This was later constitutionally changed in 1991 as a result of pressure, allowing a multi-party system and a change of leadership.

The policies at this time negatively contributed to Zambia’s economic performance but the country’s economy experienced growth in the late 1990s when the privatisation of the mining sector began to draw in foreign investment and improve output.

Lusaka prime rents and yields

Prime rents Prime yields

O� ces US$20/m2 per month 11%

Retail US$35/m² per month 10%

Industrial US$5/m² per month 13%

Residential US$5 000 per month* 12%

* Four-bedroom executive house – prime location

Perc

ent c

hang

e

2000 2004 2008 2012 20162

4

6

8

10

Sweden 1,47

United Kingdom 1,92

Japan 2

United States 2,22

United Arab Emirates 2,58

India 2,74

China 10,62

Kuwait 6,27

Dem. Republic of Congo 21,95

South Africa 33,39

Share of imports by country in total imports

Source: Merchandise trade matrix, imports and exports of total all products (annual), 1995-2011

Source: Opendataforafrica.org

Real GDP

1,92

United Arab Emirates 2,58 2,58

Zambia is rich in copper, with mining at the forefront. It also boasts a thriving agri industry

Macroeconomic stability and improvements in the investment climate have had a positive impact on Zambia’s economic growth, which has been incremental over the years. Zambia’s GDP annual growth rate averaged 2,9% from 1961 to 2013, reaching an all-time high of 16,7% in 1965, a year after independence. Between 2006 and 2010 the Zambian economy averaged more than 6,1%, and in 2009, it showed resilience to the global economic crisis, growing by 6,4%.

In 2013, Zambia’s real GDP growth decreased from 2012’s levels of 7,3% to 6,5%. However, the economy remains robust, with investments in the mining sector surging and driving several other sectors, including construction, transport and energy. Growth is estimated to increase to 7,1% in 2014 and 7,4% in 2015.

Zambia’s stable environment is the reason the country continues to attract increasing investments despite the relatively high cost of doing business there. Based on the World Bank’s “Doing Business 2014” data, Zambia is 83rd out of 189 economies in the overall “Ease of Doing Business” category. China has shown particular investment interest in Zambia over the past few years, which has created jobs and stimulated new infrastructure development in the country.

Despite its growth and stability, Zambia has many social problems. Social conditions are dire, poverty is

widespread (more than 60% of the population lives


eye on Africa


below the poverty line), and life expectancy is one of the lowest and the death rate is one of the highest in the world, especially because HIV/Aids. Increasing youth employment is another major challenge.

The Zambian government is focusing on areas of policy that will create employment opportunities (it plans to create 200 000 decent jobs per year), improve accountability, and strengthen the fi ght against corruption. There is also a focus on strengthening fi scal management to lessen the fi scal defi cit, which doubled in 2013 because of the expansion of infrastructure spending and an increase in public-sector wages.

The Zambian property industryStill, the Zambian property industry appears

to be exceptionally healthy and robust.

This is according to Inutu Bagus, Managing Director at Pam Golding Properties Zambia, who says that Zambia’s property market is poised for some upward growth and investment.

Since the recent scrapping of two laws (the SI33 and SI55) restricting foreign-exchange trade in Zambia’s property market, which triggered the kwacha’s biggest gain against the US dollar in some time, there has been an improvement as well as a renewed investor interest in the sector. Over the past fi ve years, Zambia’s national pension fund has invested extensively in commercial, residential and retail real estate.

Economic and property market drivers in Zambia include its thriving copper-mining sector, rising consumer demand for modern shopping-centre developments, and a thriving agricultural industry. The property sector has shown stability,


of infrastructure spending and an increase in public-sector wages.

The Zambian property industryStill, the Zambian property industry appears

to be exceptionally healthy and robust.

defi cit, which doubled in 2013 because of the expansion of infrastructure spending and an increase in public-of infrastructure spending and an increase in public-sector wages.

and yields are expected to be maintained between nine percent and 12%.

“Zambia continues to position itself as an investment destination for various economic sectors,” explains Bagus. “Having recorded growth in its GDP, Zambia has been ranked one of the top 15 growing economies in the world. This growth was mainly driven by expansion in agriculture, construction, manufacturing, transport and fi nancial services. The growth has been supported by infrastructure developments, specifi cally in improved and expanded road networks, as well as increased capacity in the hydro power sector.”

Bagus adds that the property sector is expected to benefi t from these key infrastructural projects as it unlocks urban and agricultural areas for investment. The three key indicators for continued growth in the property market are a growing middle class and




eye on Africaeye on Africa


an increase in the access to mortgage fi nance in the residential market; the limited supply of A-grade offi ce space and structured offi ce parks; and investment incentives offered to property developers investing in the newly launched multi-facility economic zones.

Over the past few years, Zambia’s capital city, Lusaka, has experienced a major development boom. Based on recent research, Jones Lang LaSalle has identifi ed 20 African cities that will make their mark on the commercial real estate sector over the next decade. Lusaka made this coveted list alongside South Africa’s Johannesburg, Ghana’s Accra and Egypt’s Cairo.

However, the capital is not the only popular node in the country. A recently noticeable trend is the migration from the central business district to new property nodes. “Specifi c regions to watch in the country are the Copperbelt and the North Western Province because there is an absence of product in these areas,” says Bagus. “The two regions have had signifi cant investment in the copper-mining industry, which has not been matched with residential, commercial or industrial property offerings.”

An emerging middle class is also generating in the smaller areas and towns, which illustrates opportunity, especially for the development of convenience shopping centres as well as a level of structured housing.

Optimistic about the country, Zambian businessman, property developer and hotel owner Mark O’Donnell says that because of Zambia’s GDP growth over the past 15 years, new wealth and a fast-growing middle class has been created. “There is more disposable income, which is creating energy,” he says in Knight Frank’s 2014 Wealth Report – an annual commentary on global prime property markets, wealth distribution and investment sentiment. “There is increased demand for goods and services and more investment in healthcare and education, and thousands of new homes are being built in Lusaka. Expectations are higher, too. People want to shop in better retail spaces, work in better offi ces and experience the same standards that you get in developed countries.”

He says all the supermarkets are looking for space, and people are building bigger factories to cope with the extra demand for products. Yields of about 10% are available on retail and commercial space. He notes that mobile telephony is increasing and improving, and there is massive investment in infrastructure.

“New power stations are being built that will make us self-suffi cient in the energy department,” he says. “That is vital. Without energy there is no development. A reliable energy supply makes a country much more attractive to investors.”

Retail marketThe retail sector in Zambia is blossoming, with retail property development on the increase. In the past fi ve years, four shopping malls have been built in Lusaka. (Zambia previously didn’t have any shopping malls.)

South African retailers have entered the Zambian retail arena, and there are viable opportunities for new retail developments in suburban areas outside the Lusaka CBD and in other towns in Zambia – for example in the Copperbelt area, where the new Kitwe Copperhill Centre recently opened.

On the leisure front, hotel development has picked up in order to cater for the growing number of local and regional businesspeople working in Zambia. In 2015, Hilton Worldwide will open its fi rst hotel in Lusaka – Hilton Garden Inn Lusaka City Centre will comprise 148 rooms and will feature a business centre, free internet access, an outdoor pool, a fi tness centre and a garden lounge and bar. Hilton Garden Inn Lusaka City Centre will form part of an integrated, mixed-use development alongside corporate and government offi ces in the hub of the CBD.

Protea Hotels Zambia is set to start on the construction of the K60-million hotel project in Ndola following the completion of Protea Hotel Lusaka Tower. O’Donnell, who is responsible for the development of several hotels in Zambia, says that this will create about 200 job opportunities in the construction sector while an additional 100 jobs will be created upon completion. The hotel is set to boast 80 bedrooms (comprising 60 double-bed deluxe rooms and 20 twin-bed deluxe rooms).

In 2014, continued demand for new space from South African and regional retailers is expected for trading opportunities around the country. New malls in suburban areas and regional towns should match tenant demand, with new schemes planned in towns such as Kafue, Kitwe (Zoo site), Chirundu, Chingola, Kabwe, Kalumbila and Solwezi.

Industrial and offi ce marketAs a result of an undersupplied and underserviced industrial sector, there has been an increased interest from developers. Current industrial facilities do not cater for large corporates or international companies, which serves as an opportunity to develop new facilities in key areas and to assist in securing new industry and manufacturing business for Zambia.

There has been a focus on Lusaka for industrial development because it serves as a gateway from South Africa into the centre of the sub-Saharan market. However, in 2013 the development of industrial hubs moved away from the traditional industrial and warehouse areas in the west of Lusaka.

Lusaka has seen steady investment in the offi ce sector in the past fi ve years. Demand remains high for new space in prime locations, and tenants are also seeking offi ces that are surrounded by quality infrastructure, such as good roads, suffi cient electrical power, public transport, fi bre-optic cable availability and plenty of parking.

Residential marketIn light of Zambia’s positive investment climate as well as the introduction of mortgages, there is a lot of opportunity for residential property development. Young and upcoming professionals are becoming accustomed to credit and are now seeking a residential offering.

Furthermore, the residential market is shifting from a landlord’s market to a tenant’s market with increased choice and affordable prices, while high-end quality housing remains elusive. There is a demand for stand-alone housing in comparison to cluster developments, and also for newer, up-market areas further away from the city centre. There is also growth and potential for the medium-cost plot and housing market.


The majestic Victoria Falls is one of Zambia's most-prized natural assets



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Ithala pg 33.indd 33 2014/07/18 1:01 PM


Lucky MatildaWhile it’s a recipient of relentless rugby and sheep

jokes, Australia is an admired and attractive market

on the global stage, despite spikes of negative key industry

activity and recent below-trend rate of economic growth.

Because of a decrease in mining, the country’s long-

standing industry breadwinner, the Australian 2014

budget appears gloomy, expecting the economy to sit at

2,5% in 2014-2015 and three percent in 2015-2016. The

budget also expects unemployment to rise to 6,25% and

remain this until June 2016.

However, the Australian economy has experienced a

revival in the fi rst three months of 2014 and seems to be

back on track among the fastest-growing economies in

the world, largely thanks to heightened resource exports

and building construction. The Economist predicts that

GDP growth will accelerate to 2,9% in 2014 and to an

annual average of three percent in 2015-2018. The IMF

is forecasting growth of 2,8% for Australia – above the

two percent forecast for all advanced economies, which

continue to recover slowly from the global fi nancial crisis.

Australia’s economy is still regarded as one the

biggest in the world, with total wealth value sitting at

about AUS$6,4-trillion. Dubbed the “lucky country”

because of its favourable traits (natural resources,

climate, history, distance from problems elsewhere in

the world, and other factors of prosperity), Australia was

the 12th-largest national economy by nominal GDP, and

the 17th-largest measured by PPP-adjusted GDP in 2012

– totalling 1,7% of the world economy.

According to Knight Frank’s 2014 Wealth Report,

Australia is one of the wealthiest countries in the

world on a per capita basis, ranking second behind

Switzerland. The average Australian is now worth more

than US$250 000.

Everybody wants to live in Australia – a sentiment

that South Africans are quite familiar with. Projections

by the Australian Bureau of Statistics state that Australia’s

population will rise dramatically above 40-million by

2060, and above 50-million by 2100.

As the 19th-largest importer and exporter, Australia

has been a resource-based economy for a long time, with

mining and resources the key drivers of economic growth.

Mining constitutes about 10% of Australia’s economy but

the country has begun to diversify its economy, with the

fi nance and insurance sectors contributing more than

mining to the economic output. Consumer spending has

also helped the economy grow in recent months.

Because of an economic slowdown in the mining

and resource sector, the economic landscape of Australia

is changing rapidly. Softer commodity prices have hit the

sector, which has led to a weakening in domestic demand

and growth. In light of this, Australia will need to rethink

its growth challenge in the coming years, when the

mining boom comes to an end.

Going down under – yet ready for the next waveWhile the mining industry slows down and investment

in the sector wanes, other sectors of the economy are

starting to pick up – the transition from mining to non-

mining growth is gaining momentum. With consumer

spending on the increase, housing investment is set to

liven up this year.

According to a new report from Deloitte, “Positioning

For Prosperity? Catching The Next Wave”, which

explores how best Australia can position itself for future

prosperity, the fi rm has identifi ed 25 key sectors and

growth pockets with the greatest potential for Australia’s

future, known as the Deloitte Growth 25 (DG25)

Five “super-growth” sectors (agribusiness, gas,

tourism, international education and wealth

management) could contribute an additional AUS$250-

billion to Australia’s national economy over the next

20 years. The report adds that if Australia follows several

With prosperity, growth and demand down

under, Australia remains one of the world’s

wealthiest and most opportunistic countries

By Candace King and David A Steynberg

▼ Population 23,3-million (2013)▼ Major cities Sydney, Melbourne,

Brisbane, Perth, Adelaide▼ Currency Australian dollar (AUD)▼ Total area 7 692 024km²▼ GDP growth (2013) 2.5% ▼ Key industries Mining and gas,

agriculture, tourism

Key facts

Figure 1: Percentage of overseas investment into residential developments coming from Asia in 2013

Source: Knight Frank 2014 Wealth Report

The

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

Eye On The World_AUG_SUBBED.indd 34 2014/07/18 11:08 AM


Source: Australian Office Market Report February 2014, Property Council of Australia

eye on the world

Australian CBD vacancy and key indicators

Market Vacancy rate, January 2014 (%)

Vacancy rate, July 2013 (%)

Supply additions, six months to

January 2014 (m²)

Withdrawals, six months to

January 2014 (m²)

Net absorption, six months to

January 2014 (m²)

Hobart CBD* 7,3 9,4 0 2 419 5 297

Melbourne CBD 8,7 9,8 29 344 75 532 4 512

Sydney CBD 9 8,9 49 510 8 748 33 289

Perth CBD 9 6,9 5 904 7 002 -33 938

Darwin CBD* 11,6 8 4 034 0 -3 910

Adelaide CBD 12,4 12,1 30 566 18 468 5 818

Canberra CBD 12,9 12 73 970 5 896 42 484

Brisbane CBD 14,2 12,8 6 512 12 048 -34 698

Total 10,4 10,1 201 840 130 113 18 854

* Figures relate to annual changes

Source: Deloitte, Positioning For Prosperity? Catching The Next Wave

growth resolutions, the nation will achieve even higher

economic growth. These resolutions include shunning

complacency and adopting a sense of urgency about the

need for growth; embedding long-term thinking in the

way business decisions are made; reaching and

maintaining clarity on the right triggers for economic

impact; pre-emptively upskilling its people for the

emerging jobs of the future; embracing diverse

participation in the workforce, especially by women;

achieving policy coherence across all areas of government;

adopting practical mechanisms to make collaboration

happen consistently; and being more confident about its

growth potential and future prospects.

Hey, ChinaIn the interim, foreign direct investment (FDI), especially

from China, is assisting Australia’s economy and growth.

According to Knight Frank’s 2014 Wealth Report, growth

opportunities, knowledge, diversification and brand

building have stimulated a new wave of Asian capital,

targeting mature development markets in the world’s

leading cities.

According to property analyst Real Capital Analytics,

more than 76% of total inbound capital into the

development markets of the UK, the US and Australia in

2013 originated from China, Singapore, Hong Kong,

Malaysia and India.

As the world’s second-biggest economy and Australia’s

largest trading partner, China’s 7,5% growth target for

2014 is a positive sentiment for Australia in terms of

continued FDI from the Asian superpower.

China’s overwhelming investment in Australia has

resulted in a property boom. Property prices in Australia’s

major cities are thriving because of low interest rates

and a strong demand from overseas buyers.

According to a recent Credit Suisse report, Chinese

buyers are injecting more than US$5-billion a year into

Australia’s residential market.

Aussie property While Chinese investment is proving to be a positive

force, Australia’s property industry seems to be teetering.

According to the IPD Global Annual Property Index for

2013, which recorded a total return of 8,3%, Australia

ranked in the top seven countries with the strongest returns.

Australia’s total property return for 2013 was 9,6%.

However, the Property Council/IPD Australia

All Property Index total return results for the year to

31 March 2014 were 9,3%, indicating a 0,3% drop.

Furthermore, the Property Council/ANZ Property Industry

Confidence Index to June 2014 shows property industry

confidence dropped eight points to 132 from a record

high of 140 points.

In spite of these figures, the Australian property

sector is still relatively buoyant. Over the past 12 months,

the property industry has sustained Australia’s economy,

in contrast to falling manufacturing and mining

investment. Industry staffing levels are set to increase

over the next 12 months, and all asset classes nationally

are expected to enjoy capital growth, with residential

continuing to take first place.

“A buoyant property sector continues to lead a

positive outlook for the non-mining economy in the

coming year, as low interest rates and a lower AUD

support the baton change of economic growth from

mining investment to non-mining activity,” says ANZ

Chief Economist Warren Hogan. “While Australian

economic growth remains below trend in the near-term,

improved business conditions and stronger global

economic growth should support improved business

confidence and non-mining business investment.”

The commercial property market is experiencing a

disconnect between improved yields and offshore

investment, and rising vacancy levels. This is according to

David Rees, Head of Research at Jones Lang LaSalle ( JLL)

Australia, who says this may be the result of a shortage

in supply while many buildings are still in good nick.

The DG25: Growth opportunities for Australia

Current waves 1 Mining

Next waves

Fantastic five2 Agribusiness3 Gas4 Tourism5 International education6 Wealth management

Future waves

Slipstream stars7 ICT – gateway to the future8 Financing the future9 Clean coal10 Gas transport11 Food processing

Global slivers12 Disaster management

and preparedness13 Next-gen solar14 Next-gen nuclear15 Medical research16 Ocean resources

Local heroes17 Community and personal care18 Retirement living and leisure19 Re-skilling an ageing

work force20 Financing the future21 Residential aged care22 Preventative health

and wellness23 Digital delivery of health24 Private schooling25 Parcel delivery

Eye On The World_AUG_SUBBED.indd 35 2014/07/17 1:17 PM


eye on the world


Figure 2: Projected annual global industry output growth, 2013-2033

The Property Council of Australia (PCA) reports that

almost 50% of Sydney’s offi ce stock is 30 years old or

older, but sees this as an opportunity to answer another

of that country’s pressing needs: housing. The PCA

foresees a positive impact on the offi ce sector should

old buildings be successfully repurposed as residential

stock, which will reduce the number of vacant and

dysfunctional offi ces while also catering for 45 000 new

dwellings required by 2031, when city residents are set to

have increased by 47%.

According to Rees, even the Chinese, who see Australia

as a conduit to the US, are getting in on the action. “The

profi le of Chinese investment is rising steadily,

particularly in the inner-city/high-rise residential

space,” he says. “Chinese investors are active on both the

development and the purchasing sides of the market.

Residential conversion, which is taking out older offi ce

buildings, is taking some of the pressure off offi ce

market valuations. At JLL, we expect that withdrawals of

older offi ce space will be an important dynamic in CBD

offi ce markets, especially in Sydney, in the future.”

Australia’s CBD offi ce market has come under

some pressure, last year recording a drop of more

than 4 000m² in net absorption – this on top of rising

vacancy levels.

Despite this, Australia does offer quality properties

on the outskirts of its CBDs at yields of more than

seven percent.

It is therefore not surprising that a number of South

African commercial property players have entered the

Australian market in search of good yields and as a way

of hedging. Growthpoint Properties’ Australian business

reportedly holds a 60% interest in the group’s R1-billion

worth of new developments, where its portfolio vacancy

rate is a mere two percent.

Growthpoint Properties Australia owns interest in a

diversifi ed portfolio of 51 offi ce and industrial properties

in Australia, valued at more than AUS$2-billion, and has

an investment mandate to invest in offi ce, industrial and

retail property sectors.

Investec Australia Property Fund (IAPF) recently paid

AUS$20,95-million for an A-grade Brisbane offi ce building.

Despite being located in the CBD, the property – which

is IAPF’s fi rst purchase since listing on the JSE last year

– offers a yield of 8,25%.

Redefi ne Properties, in a joint venture with Cromwell

Property Group, paid AUS$279-million for a 50% share

in a north Sydney building in which income yields are

currently about eight percent. And according to Marc

Wainer, CEO of Redefi ne Properties, the company’s

average cost of fi nancing the deal is about six percent.

But Rawson’s Managing Director Tony Clarke says

that South Africans shouldn’t jump into investing in the

Australian housing market willy-nilly – either through

investments in property companies listed on its stock

exchange or more directly – because the opportunities

at home look much sweeter. He notes that Australia’s

housing boom appears to be cooling – if it’s not already

cold – whereas South Africa’s housing market appears

to be at least a trifl e bullish. The Sydney Morning Herald

has declared the housing boom of recent years as fi nally

over – so if you are an investor, you have missed the

(Australian) boat.



eye on the world

Figure 5: Green Star returns for Australian o� ce markets


Figure 4: Australia’s current, next and future waves of growth, 2013-2033

Source: Green Building Council of Australia, Evolution – A Year In Sustainable Building 2013

Figure 3: Sydney CBD occupancy pro� le by industry

Source: Offi ces 2020 City Report

Source: Green Building Council of Australia, Evolution – A Year In Sustainable Building 2013

Figure 6: NABERS returns for Australian o� ce markets

Australia’s housing boom appears to be cooling – if it’s not already cold – whereas South Africa’s housing market appears to be at least a trifl e bullish. The Sydney Morning Herald has declared the housing boom of recent years as fi nally over – so if you are an investor, you have missed the (Australian) boat.

Eye On The World_AUG_SUBBED.indd 37 2014/07/18 11:09 AM


eye on the world

According to Thebull.com.au, Australia’s housing

boom appears to be cooling, with the website citing new

home-loan fi gures. The number of home loans approved

was fl at in April, shy of the 0,2% rise expected in the

market, as fi gures released by the Australian Bureau of

Statistics showed. Signifi cantly, while the value of

investor home loans rose by 2,3% to a record AUS$11-

billion in April, the share of fi rst-home buyers in the

market fell 12,3% – back to the record low of November,

Thebull.com.au reported.

Another Australian news site, News.com.au, projected

that property price growth was likely to slow by mid-2016

“as markets are hit by oversupply and a rise in interest

rates”. It was expected that property-price growth would

be limited in Hobart, Perth and Melbourne, but that in

Sydney it would be carried by a momentum for a couple

of years before dropping off. The medium price growth of

Sydney property is expected to be 10% in the short term.

On the retail front, South Africa’s Woolworths Group’s

push to buy the Australian David Jones property portfolio

– an AUS$2,2-billion bid – is looking fearsome, with

Woolies already dominating several Australian labels

(including Country Road, Trenery, Witchery and Mimco).

The Sydney Morning Herald reported Woolworths

Chief Executive Ian Moir as saying that the group

intended to review alternatives “to the owned (freehold)

property portfolio of David Jones once further

information on any property-related matters is made

available”. Moir indicated that Woolworths was looking

at building its retail business in Australia, and did not

see the bid for David Jones as being a property transaction.

“This is a retail transaction,” said Cape Town-based

Moir. The portfolio includes two stores in Bourke Street

in Melbourne and two stores in Sydney, Australia’s

commercial capital, in Elizabeth and Market Streets.

One of Australia’s most-prized property-sector traits

is its green building and sustainability movement –

Australia continues to strengthen its position as a global

green leader. The country is home to more than 500

Green Star buildings, with 18% of its CBD offi ce market

Green Star-certifi ed, and 95% of tenants saying they want

to occupy a “green building”.

According to the Property Council/IPD Australia

Quarterly Green Property Index results for June 2013,

Green Star-rated (as designed and as built) offi ce assets

delivered a total return of 10,8%, outperforming the all-

offi ce market by 140bps. Furthermore, for Green Star-

rated assets, the strongest returns were observed in 5 Star-

rated offi ce assets.

Looking aheadWhile 2013 was a record year for Australian property,

recording a 20% spike of AUS$23-billion in transaction

volumes compared with 2012, tenant demand dropped

by 5,75%, according to Rees.

“Despite this we show yield compression and capital

growth across most markets (offi ce, industrial and retail),”

he says. “In 2013, offi ce (CBD) values rose 3,5%, retail

(regional shopping centres) went up by 2,3% and prime

industrial went up by 2,2%. Australia’s 2013 experience

of strong investor demand and weak leasing is consistent

with global trends.”

Looking ahead, Rees expects offshore investment

infl ows to continue. “For the past four years, offshore

investment infl ows have been remarkably stable,” he

says. “Offshore investment has been steady at 25% of

total transactions (offi ce, retail and industrial). The

offi ce market has been higher, with 35% of transactions

in 2013.”

He expects subdued leasing this year, with a

turnaround next year. “We don’t see weak leasing as

a big factor in investment calculations as the supply

pipeline in Australia is very disciplined at about two to

three percent stock increase over next two years. Plus

two-thirds of space is pre-committed, so there is little

threat on the supply side,” he says. “A conundrum for

2014 will be access to institutional-grade product; this

may limit transaction activity. For example, some

signifi cant vendors in 2013, such as the state government

of New South Wales and Queensland, will be less active

in 2014. This illustrates the problem for global investors,

because there are only 34 premium-grade offi ce buildings

in Australia. Some investors are, therefore, being forced

to review their mandates.”

CEO of Rede� ne Properties Marc Wainer

Rawson’s Managing Director Tony Clarke

Figure 7: Projected annual global industry output growth, 2013-2033

Source: The Property Council/IPD Australia All Property Index



news

“The future belongs to those who prepare for it today”

Malcolm X

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Share your ideas and be inspired at the 7th Annual Green Building Convention, brought to you by the Green Building Council South Africa. This gathering of commercial building industry decision-makers takes place from 10-12 September at the Cape Town International Convention Centre.

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GBSCA pg 39.indd 39 2014/07/18 1:06 PM


workshop

Getting personal with POPIChanging the way

personal information is handled in business, the

Protection of Personal Information Act has huge

implications for the property industry. Sit

up and take note!By Candace King

From life insurance text messages to marketing spam emails and frustrating

phone calls that never come at a good time have become part of our daily lives. But this reality is likely to lead a few into hot water with the recently implemented Protection of Personal Information (POPI) Act.

While businesses may think they’re safe because they’ve refrained from hounding people in the way mentioned above, personal information has a way of finding and storing itself in companies without even realising it.

At a recent SAPOA Gauteng educational workshop held in Sandton, the POPI Act was dissected and explained to members of the property industry, in order to shed light on the Act itself and to provide property practitioners with vital information about this piece of legislation.

The workshop provided an overview of POPI with specific reference to the property sector. The presenter, Era Gunning – an associate at ENSafrica in the Banking and Finance Department – provided advice in respect of documents and transactions used in the property sector, and focused on data-protection issues relevant to the property sector as well as the consideration of compliance with the Act.

The Protection of Personal Information Act 4 of 2013 was enacted to give effect to the constitutional right to privacy. On 20 August 2013, the National Assembly passed the Protection of Personal Information Bill (B9D of 2009) and on 19 November 2013 it was signed into law by the president.

On 11 April 2014, the president published a notice in the Government Gazette proclaiming the commencement of certain sections of POPI, including sections dealing with the establishment of a regulator and the making of regulations under POPI.

The POPI Act introduces radical changes in the manner in which personal information of those that businesses trade with must be processed, when such information is exchanged in the normal course of a business or professional transaction.

The Act stipulates that the manner in which information relating to an identifiable living natural person as well as an existing juristic person as far as applicable is collected, stored, used and communicated needs to be in compliance with the Act.

“South Africa is the 115th country in the world to have data protection legislation in

place,” said Gunning. “The US doesn’t even have such legislation.”

She added that our Act is wider than the global trend because it extends further than living natural persons and includes existing juristic persons where applicable. “Every member of SAPOA falls under the ambit of the POPI Act,” she said.

This information has a vast range, covering race, gender, pregnancy, marital status, national or ethnic or social origin, sexual orientation, age, physical or mental health, wellbeing, disability, religion, conscience, belief, culture and birth. It even extends to information pertaining to education, financial history, criminal or employment history, and any identifying number, symbol, email address, physical address, telephone number, and personal views and opinions.

“The information should be protected even if the name of the person appears with other personal information relating to that person, or if the disclosure of the name itself would reveal information about the person,” says Gunning.

Processing and beautiful consentThe Act also includes any activity concerning personal information such as the collection, receipt, recording, storage, updating or modification, dissemination by means of transmission, distribution or making available in any form. Thus any recorded information, regardless of the medium and regardless of when it came into existence, falls under the ambit of POPI.

“At most times, companies have about 90% more information stored than they know about,” said Gunning. “It’s advisable to destroy information before POPI comes into force.”

The processing of personal information by public and private bodies must be entered into a “record”. If recorded by non-automated means, then the information must form part of a filing system. Furthermore, it must be entered into a record by or on behalf of a responsible party that is domiciled in South Africa.

In the case of a party that is not domiciled in South Africa, the use of automated or non-automated means needs to be situated in South Africa, unless it’s only used to forward personal information through the Republic.

Under the Act, companies will need to put in place an operator who will process personal

Data-protection conditions or principles that govern the lawful processing of personal information

Condition 1: AccountabilityCondition 2: Processing limitationCondition 3: Purpose specificationCondition 4: Further processing limitationCondition 5: Information qualityCondition 6: OpennessCondition 7: Security safeguardsCondition 8: Data subject participation

Era Gunning, Associate at ENSafrica in the Banking and Finance Department

POPI_SUBBED revised.indd 40 2014/07/18 5:40 PM

41

workshop

SOUTH AFRICAN PROPERTY REVIEW

information for a responsible party in terms of a contract or mandate without coming under the direct authority of the responsible party. “This is where POPI becomes prescriptive,” said Gunning.

Furthermore, companies will need to appoint an information officer, who is either the CEO or an equivalent officer, or any person duly authorised by that officer.

Every responsible party must appoint an

information officer to ensure compliance by the responsible party with provisions of the Act, and the officer must be registered with the regulator.

Under the POPI Act, a regulator will be established. Any person may lodge a complaint with the regulator, and the regulator may try and secure a settlement. If no settlement is possible, the regulator may initiate an investigation.

If in breach, the regulator may issue an enforcement notice, and the data subject or the regulator may sue the responsible party for damages.

“If in breach, the liability will fall on the directors of companies,” said Gunning. “If not compliant, one can go to jail for up to 10 years or be liable to a fine of R10- million – or both! POPI is not something to be ignored. Make sure that you include the POPI clauses into all company agreements with the operators.”

Personal information may only be processed if consent is obtained.

“Consent must be voluntary, specific and informed,” said Gunning. “Employers and companies need to tell the data subject about what they are doing with their information. There is a loophole, in that if there is no physical consent, companies can play around with legitimate interests. However, the court can narrow this down and catch you out. So going forward, it’s important to get ‘beautiful consent’.”

POPI and the property industryWhether it’s obtaining personal information to enter into a lease with a tenant obtaining personal information to carry out credit checks in respect of directors, members, individuals and sureties; obtaining personal information to carry out marketing of a shopping centre; people entering office blocks, and needing to sign a form and provide personal information in order to enter the building; or the selling of immovable property, sale agreements and the processing of personal information in relation to those agreements, POPI applies.

Gunning said that property practitioners should amend all agreements and include a “beautiful consent” clause within the agreement. Furthermore, they should be up to speed with National Credit Act regulations and the Consumer Protection Act for further protection. Companies also need to update their Promotion of Access to Information Act manuals.

So when will POPI be completely official? “The Act will only come into effect on a date to be determined by the President by proclamation in the Gazette,” said Gunning. “Thereafter, there will be a transitional period of one year.”

Until then, companies should conduct comprehensive data protection audits and make sure that their house in order.

Delegates not only got

personal with POPI but

simultaneously got the chance

to network.

POPI_SUBBED revised.indd 41 2014/07/18 5:43 PM


feature

Catching up on black economic empowerment

With the recent revision of the BEE codes, we chat to Property

Sector Charter Council CEO Portia Tau-Sekati about

the changes, the current stance of the council, and

future expectationsBy Candace King

The black economic empowerment (BEE), or broad-based black economic empowerment

(B-BBEE), landscape is constantly changing – a reality that can be confusing, but one that needs to be kept abreast of. In light of South Africa’s difficult economy, the onslaught of various new statutes and the implementation of heavy regulations, the operation of business in today’s cut-throat times is very challenging.

Portia Tau-Sekati, Chief Executive Officer of the Property Sector Charter Council (PSCC)

Recently, things got even more challenging with the announcement that all Sector Charter Councils along with their respective Sector Charters will need to incorporate all relevant amendments that were made to the B-BBEE Codes of Good Practice on 11 October 2013.

“The Department of Trade and Industry (DTI), the custodian of the triple BEE Act, has revised the Codes of Good Practice after reviewing the results and outcome of the transformation of the South African economy,” explains Property Sector Charter Council (PSCC) Chief Executive Officer Portia Tau-Sekati. “Following the process of the DTI, all nine Sector Codes, as per the agreement, are obliged to be aligned with the Codes of Good Practice.”

In the effort to introduce a new phase of B-BBEE measurement and significantly change the face of transformation, the amended codes published last year included a transitional period during which companies could prepare for measurement under the amended codes. The original transitional deadline stated that, from 12 October 2014, all measured entities must use the amended codes as a basis for measurement. However, this date has now been changed.

Recently announced in a Government Gazette, the DTI has stipulated that the transitional period for the implementation of the amended B-BBEE Codes of Good Practice has been extended to 1 May 2015. Furthermore, all Sector Charter Councils need to align their Sector Codes by this date.

The following Sector Codes have been gazetted: general, construction, construction built environment professional, tourism, forestry, transport (with separate score- cards for each of the eight sub-sectors), information and communication technology, agriculture, property, financial services and chartered accountancy.

One of the major changes in the amendment is that a business’s overall B-BBEE status will

BEE Update_SUBBED.indd 42 2014/07/18 1:29 PM


feature

One of the major changes in the amendment is that a business’s overall B-BBEE status will drop when measured against the new codes

drop when measured against the new codes. But how does this affect the property sector?

“Because of the alignment of the new Codes, the PSCC needs to follow suit,” says Tau-Sekati. “By obligation as a Sector Code, we are required to align. When developing a Sector Code, it’s important to comply with principles, methodology and calculation, and definitions of beneficiaries. You can change targets, weighting and any other additions. With such guidelines, the PSCC is able to align with the Codes of Good Practice.

“The PSCC has established a technical committee with specific terms of reference in order to provide technical recommendation about key discussions emanating from constituency needs and requirements to be incorporated into the Property Sector Code. All constituencies are represented in the technical committee, and the process followed is through consultation, negotiation, and so forth. The final outcome of the technical committee then becomes the recommendation to the Council – and only the Council can make a final decision of approval on any matter.”

So how have the score-card elements changed for the Property Sector Code? Tau-Sekati notes that, at present, there are seven score-card elements for all sectors in the Codes of Good Practice. However, the new Codes of Good Practice propose that there should be five elements. For the Property Sector Code there are seven – but they are different from the seven that are currently in place.

These elements include ownership, management control, employment equity, skills development, enterprise and supplier development, socioeconomic development, and economic development. Management

control and economic development are unique elements to the property sector. The elements of preferential procurement and enterprise development have now been merged into a single element: enterprise and supplier development.

When asked about the key areas of amendment, Tau-Sekati said that the PSCC is utilising several key guidelines in order to align the Property Sector Code. These guidelines are based on the following: all companies with the exception of exempted micro enterprises (EMEs) are to comply with all the elements. The new adjusted score-card points and qualification criteria for the awarding of B-BBEE status level are to be applied. The enhanced recognition status of black-owned EMEs and qualifying small enterprises (QSEs) should apply.

There has also been an introduction of minimum requirements for the priority elements: ownership, skills development, and enterprise and supplier development. All measured entities need to comply with these priority elements under several conditions. QSEs need to comply with at least two of the priority element,s of which ownership is compulsory. Large entities need to comply with all of the priority elements. Entities that do not meet the thresholds in the priority elements will have their overall score discounted down by one level.

What is expected going forward? “The PSCC expects to gazette the new aligned Property Sector Code towards the end of the year,” says Tau-Sekati. “This will enable the property sector participants to prepare their entities to be measured against the new revised Property Sector Code, to be effective 1 May 2015, with the rest of the South African economy.”

Element Code series reference What each element measures

Ownership 100 Measures effective ownership of entities by black people

Management control 200 Measures the effective control of entities by black people

Skills development 300Measures the extent to which employers carry out initiatives designed to develop the competencies of black employees

and black people internally and externally

Enterprise and supplier development 400

Measures the extent to which entities buy goods and services from empowering suppliers with strong B-BBEE recognition

levels. This element also measures the extent to which enterprises carry out supplier development initiatives

intended to assist and accelerate the growth and stability of black enterprises

Socioeconomic development 500

Measures the extent to which entities carry out initiatives that contribute towards socioeconomic development

or sector specific initiatives that promote access to the economy for black people

BEE Update_SUBBED.indd 43 2014/07/18 1:31 PM


Cape Town CBD crawl

Exploring-

our-cities series:

experiencing

South Africa’s

CBDs on foot

The city of Cape Town is abuzz. With Table Mountain towering over the buildings

and cranes that dot the skyline like a colossal construction project that’s under way, Cape Town Central City is experiencing a change on all fronts, from property development and social upliftment to sustainability and urban improvement projects.

Over the past 14 years, the Cape Town CBD has transformed from a desolate downtown dump to a clean, upbeat, thriving hub of � nancial, retail, cultural, social and historical signi� cance. This is evident when driving around the inner city – and even more so on foot.

Meandering through the streets, one will see a city that never sleeps – with most of the corporates settled in the CBD, businessmen in suits dart across the demarcated walkways to get to their respective places of work; vendors sell fruit and snacks to passers-by; trendy youth on skateboards mill around; and security and street-cleaning personnel are on every corner in their bright-green attire.

This attractive city setting can be largely attributed to the Cape Town Central City Improvement District (CCID), a business-orientated public-private partnership non-pro� t organisation that provides additional

Carola Koblitz, CCID Communications and Marketing Manager

From derelict places to highly sought-after investment

spaces, Cape Town Central City is safe, clean, caring

and open for businessBy Candace King

Photographs by Sam Burrows

Rental rates for o� ce space in the Cape Town CBD

70

60

50

40

30

20

10JULY 2011

24%

MARCH 2012

OCTOBER 2012

APRIL 2013

NOVEMBER 2013

Business As Usual Decline in BusinessGrowth in Business:

63%

%

13%

35%

40%

25%

37%

42%

21%

43%

33%

24%

52%

26%

22%

Exploring Cape Town_SUBBED.indd 44 2014/07/17 3:00 PM


exploring our cities

complementary urban management services to the Cape Town CBD.

Established in November 2000 as the first City Improvement District of its kind in South Africa, the CCID implements a vast amount of top-up services to those of its partners at the city and the SAPS. These include the support and augmentation of safety and security efforts; ensuring that the environment is clean and well managed, and that social development issues are addressed; and that the Central City is promoted as a leading business destination.

Initiated and funded by local property owners and operating with its own Board of Directors, the CCID’s managing agent is the Cape Town Partnership, a public and private sector collaboration that works to develop, promote and manage Cape Town’s Central City. The CCID stretches from Buitensingel Street to Table Bay Boulevard, and from Canterbury Street to Buitengracht Street.

The CCID’s mandate was to revitalise the CBD from the seedy crime-and-grime rut to which it had succumbed. “During the late 1990s, the downtown area of the CBD badly degraded and the CCID was implemented to assist with improving the area,” says CCID Communications and Marketing Manager Carola Koblitz during an intimate, “hands-on” tour of the CBD.

Currently considered to be the country’s most vibrant and safest CBD, the CCID works closely with its partners to uplift the area into a successful work, live and play downtown.

“In essence, the CCID considers itself a business that offers a variety of excellent top-up services, in addition to those of its city and SAPS partners, to stakeholders – and indeed to all clients of the Central City,” says Koblitz.

According to the CCID’s latest Annual Report, the budget that it received in 2013 in terms of the city’s Special Rating Areas Policy was just shy of R38-million, against which it looked after an area in which the municipal value of the properties currently exceeds R23-billion.

Rob Kane, Cape Town CCID Chairperson

a s can be seen from the map on the inside back cover of this report, the Cape Town Central City is well connected. Two of the country’s national highways ( n 1 and n 2) begin on its boundaries and it is well served by major road and rail networks. Within the CBD itself, pedestrianisation — along with the roll-out of bicycle lanes accommodate the ever-increasing move towards more sustainable modes of both motorised and non-motorised transport.

But perhaps the most exciting development in terms of getting to and around the Central City has been the incorporation of ever-increasing routes of the MyCiTi Bus Rapid Transit system. This system is being embraced not only by traditional motor vehicle users who are starting to leave their cars at home, but is changing the perception of public transportation among all Capetonians.

Transport in the Central City

NUM B ER OF MYCITI P ASSEN G ER T R IP S

30 500The number of passenger trips

per month at the end of

2012 with the MyCiTi service

operating six routes within the Central City area.

113 300The number of MyCiTi

passenger trips per month by the end of

2013 with a total of 19 routes now available within the Central

City area.

Connecting the CB D to the rest of Cape TownThe City has been working on an Integrated Rapid Transit (IRT) sys -tem since 2007, aimed at signi� -cantly improving public transport throughout the metro-region. The �rst leg of this has been MyCiTi, designed to integrate with other modes — especially rail — to be the city’s public transport backbone.

The rollout of MyCi Ti, begun in 2011, is currently nearing completion of Phase1A, which will see the Central City connecting: the Atlantic Seaboard; Hout Bay; Woodstock rail station; Paarden Eiland; Milnerton; Montague Gardens; Century City; Dunoon; Table View; Melkbos; Atlantis and Mamre. It includes the rapidly growing residential areas in Blaauwberg north of the Diep River, and the low-income communities of Atlantis, Mamre, Dunoon and Doornbach. This corridor has traditionally faced some of the worst peak-period congestion levels, especially to the south and east of the bridges over the Diep River.

P H ASE 1 A WI LL:Have a total of

283 stops,

utilise 190 buses, and�nalise a network of

227km of total bus lines on new lanes

and existing road networks.

Over 350 000

commuters enter the Central City every day by road, rail and non-motorised transport

options.

R7.7bn

AMOUN T N ATI ONAL TREASUR Y H AS P ROV I DED TO P U B L IC T RANS P OR T I N CA P E TO W N B E TW EEN 2005 AND 2014

73

47 47

9 9

MYCITISATISFACTION SURVEYBased on a recent user survey conducted by the City of Cape Town1, a growing number of MyCiTi passengers are makingthe system their primary transportation option for getting around the city:

89% of users reported putting MyCiTi at the top of their list, versus 79% at the beginning of 2012.

People using MyCiTi in the City Centre cite severalkey reasons for their use, as re�ected below (withnumbers indicating the % of respondents who cited each response):

For commuting to and from work

For trips and outings on the weekends

To go on shopping trips

For special events such as concerts/sports events

Other

1 MyCiTi Customer Insights Programme Q3 Report, January 2013 , City of CapeTown

will include the greater Helderberg area. It is expected that the full roll out of all phases will take 15 to 20 years to implement.

04. Connecting the Central City to the rest of the world

CENTRAL CITY IMPROVEMENT DISTRICT ANNUAL REPORT 2013 5

tHe CCID reCeIVeD a BuDGet In 2013 oF JuSt unDer

r38 MIllIon aS ItS portIon oF tHe CItY’S MunICIpal

leVY. WHere eXaCtlY DID tHat MoneY Go?

CENTRAL CITY IMPROVEMENT DISTRICT 5CENTRAL CITY IMPROVEMENT DISTRICT CENTRAL CITY IMPROVEMENT DISTRICT CENTRAL CITY IMPROVEMENT DISTRICT CENTRAL CITY IMPROVEMENT DISTRICT CENTRAL CITY IMPROVEMENT DISTRICT CENTRAL CITY IMPROVEMENT DISTRICT CENTRAL CITY IMPROVEMENT DISTRICT ANNUAL REPORT 2013ANNUAL REPORT 2013ANNUAL REPORT 2013ANNUAL REPORT 2013ANNUAL REPORT 2013 CENTRAL CITY IMPROVEMENT DISTRICT CENTRAL CITY IMPROVEMENT DISTRICT CENTRAL CITY IMPROVEMENT DISTRICT CENTRAL CITY IMPROVEMENT DISTRICT ANNUAL REPORT 2013ANNUAL REPORT 2013 CENTRAL CITY IMPROVEMENT DISTRICT CENTRAL CITY IMPROVEMENT DISTRICT CENTRAL CITY IMPROVEMENT DISTRICT ANNUAL REPORT 2013ANNUAL REPORT 2013

How Far does a ccid rand Go?

1 400 PROPERTY PARCELS and 8 500 PROPERTY RECORDS with a total municipal value of R23 BILLION generating ANNUAL RATES OF R216 MILLION within an area of 1.6km²

Over 5 000 RESIDENTS spread across 2 900 RESIDENTIAL UNITS

Over 2 300 BUSINESSES and 140 000 EMPLOYEES

Over 7.7 MILLION COMMUTERS who enter the Central City every month

Over 1 200 RETAILERS & 380 000m2 retail space Approximately 900 INFORMAL TRADERS

Over 120 000m² of public SQUARES AND SPACES

Over 48.5km of SIDEWALKS

15 500 STUDENTS and 1 280 FACULTY & STAFF who attend 49 EDUCATIONAL INSTITUTES during term time

50c

21c

14c

8c7c

50c on Safety & Security

21c on Urban Management

7c on Social Development

8c on communications and marketing of the area

14c on administrative costs to run the CCID service

tHe ccid area at a Glance in 2013

With its budget of just under R38 million, the CCID delivered top-up services to:

For every r1 collected in terms of the special ratings area levy, the ccid spent:

breaKing DoWn THe buDgeT

PLUS: THE TANGIBLE VS THE INTANGIBLE For every R1 spent by the CCID, the public

receives as much as R5 in terms of value-added services provided in consultation, cooperation,

facilitation and administration.

Exploring Cape Town_SUBBED.indd 45 2014/07/18 11:51 AM



“For a number of years, the CCID has conducted its work against two key themes,” explains CCID Chairperson Rob Kane in the organisation’s 2013 Annual Report. “The first of these came about through our original mandate 14 years ago to get the basics right and benchmark the Cape Town CBD as a place that was safe, clean and caring. Once we had established practices for ensuring this theme was in a ‘business as usual’ working order, we turned our sights towards marketing the area as an ideal location for investment from beyond our borders, through our ‘open for business’ theme.”

The CCID operates across four departments. These are Safety and Security, Urban Management, Social Development, and Communications and Marketing. Each department deals with a plethora of daily challenges as well as the implementation of projects and developments that are more long-term in nature.

With a three-man, full-time CCID security team overseeing 230 contracted public-safety personnel, the safety and security team works tirelessly alongside partners in the SAPS, the Community Policing Forum and neighbourhood watches from areas adjacent to the CBD to maintain Cape Town’s safe reputation. Since the CCID was established in 2000, crime within the Central City has reduced by 90%.

Before 2000, when the CCID was brought into operation, many parts of the city were no-go areas. “More than 100 cameras have been installed in and around the CBD by our partners at City Law Enforcement” says Alec van de Rheede, CCID Assistant Manager for Safety and Security. “But it’s not just about catching the criminals or locking up the wrong-doers. A clean city is also a safe city.”

Under urban management, the CBD is kept in good nick with services ranging from cleaning of sidewalks to road maintenance and repairs. This department has also been responsible for the establishment of effective communication lines between property owners, business concerns, city departments and residents in the CCID area, the support of several successful open-air markets and events, and input into the city’s framework governing informal trading.

“We encourage public/private partnerships that, in particular, will help to revitalise public spaces, retain existing investment and encourage new investment,” says Richard Beesley, CCID Manager for Urban Management.

As a result, streets are transforming and becoming increasingly pedestrian-friendly, offering day- and night-time experiences that are good for economic and tourism investment. New retail and entertainment establishments have started to mushroom across the CBD, particularly since the World Cup in 2010.

The caring side of the CCID is most evident in its social development department, which works with government agencies and NGOs that assist the homeless. A survey conducted a few years ago by the CCID, the Cape Town Partnership and the city revealed that approximately 550 people were living on the streets of the CBD and surrounding suburbs.

76 01. Introducing the Cape Town Central City

CREATIVITY & CULTURE

72 000Theatre goers who attended shows andevents at the Fugard Theatre

Artscape’scontributionto the GDP of South Africa

R403m Number of creative industries based in the CBD

487

Number of people who live

in the CBD

Increase inCBD residents

since 2001

RESIDENTIAL

Residential property sales in the CBD

132 163

2012 2013

Average residential sales price in the CBD

R266millionThe amount of rates generated by the CBD in 2013

PROPERTY

5 500The number of jobs

in the CBD generatedby the fi nancialservices sector

The number of people moving through the CBD every day

VALUE OF CENTRAL CITY PROPERTY2011 R21.5 billion

2012 R22 billion

2013 R25 billion

A B C D E F G

67 77 88 109 16

7 202

592A. Information & commu-

nications technologyB. Travel servicesC. Financial servicesD. Architecture & engineeringE. Specialised servicesF. Medical servicesG. Legal services

COMPANIES IN THE CBDBy sector

Percent of the metro-region’s international call centres located inthe CBD

9 646Number of peopleworking in the CBD’s call centres

CALL CENTRES

44%

1 353 405Number of people who attended events in the CBD

CBD EVENTS300%5 286

350 000

EDUCATION

15 176

1 541

The number of students who

study in the CBD

The number of faculty & staff

in the CBD

661Events heldin the CBD

2012: R1.33 million

2013: R1.43 million

CAPE TOWNCENTRAL CITY

Richard Beesley, CCID Senior Manager for Urban Management




Alec van de Rheede, CCID Assistant Manager for Safety and Security

The State of Cape Town Central City Report: 2013 – a year in review 76

Total visitors to theCentral Library in 2013

745 133

Average number ofdaily visitors to the Central Library

LIBRARY

CAPE TOWN INTERNATIONALCONVENTION CENTRE (CTICC)

1.3 millionNumber of visitor days generatedfrom events atthe CTICC

537Number ofevents theCTICC hostedin the last year

7 875Jobs sustained by the CTICC during the last fi nancial year

Length of fi bre optic cablinginstalled in the Central City

GOVERNMENT SERVICES

All 3 spheres of South Africa’s governmentare found in the CBD (local, provincial & national)

Numberof employees

Average number of people served per day

Numberof offi ces

108 21 666 27 111

268 553m2

of retail space inthe CBD, of which of retailers are

happy to be doing business

in the CBD

RETAIL81%

94% is occupied

Reductionin water

usage over the previousfi ve years

PERCENT PERCENT

15

Reductionin energy

use over the previousfi ve years

73 000m2

of new premium offi ce space under construction in the city’s CBD

88.7%of A-grade offi ce space in the CBD is occupied

OFFICESPACE

MYCITI BUSRAPID TRANSPORT

In November 2013, the remaining desti-nations of the MyCiTi Phase 1 expansion came online. The MyCiTi now connects the CBD to even more of the metro-re-gion through improved public transport.

20126 routes in Cape Town Central City

30 500 passenger trips per month

201319 routes in Cape Town Central City

113 300 passenger trips per month

Number of newMyCiTi stations added

283

R3 billion Financial contribution by the CTICC to South Africa’s GDPin its 2012/13 fi nancial year

HOTELS

81410

5-star hotelsin the CBD



Number of bedsin the CBD’s 57 hotels

4 600

110km

It’s to support this community that the CCID began its “Give Responsibly” campaign in 2008, encouraging the public to “give a hand up rather than a hand-out” and donate to the NGOs that work with the homeless.

The CCID’s communications and marketing department aims to educate the public and Central City stakeholders about the work of the CCID, and promote the CBD to potential new investors. Along ongoing media liaison and the many campaigns that it runs, this department also produces several publications – among them an entertainment guide, a bi-monthly newspaper and a comprehensive annual Central City investment report.

With the much-needed revitalisation of the inner city, property has begun to thrive in the area. Currently, the value of property in the Cape Town CBD is just under R24-billion. A major contributor to this is the fact that 24,5% of all premium and A-grade office stock available in the greater Cape Town metro-region is located in the Central City.

Close to 20 major property developments have come on-line in the past year alone. Some have opened their doors during the course of 2013; some are currently under construction or in the planning phase. These include the 5-Star Green Star-rated Portside building, the expansion of the Cape Town

International Convention Centre, Standard Bank’s Towers, and the much-anticipated new Christiaan Barnard Memorial Hospital.

Inner-city living has also picked up, with demand now outstripping supply. “Ten years ago, the majority of the 3 500 sectional title units available in the CBD were either empty or being rented out,” says Koblitz. “Today we’re starting to see increasing numbers of owner-occupiers, and appropriately priced units are being sold on average within 10 days of listing.”

While property prices are now rapidly rising in the Cape Town Central City, the focus is starting to turn towards the development of the more affordable housing sector in areas on the CBD periphery in order to enable a broad economic base of homeowners to both work in and live close to the CBD. “This is important not only to ensure the 24/7 life of the CBD but to enable those who rely on public transportation to live closer to their place of work,” says Koblitz.

The quality and availability of public transportation is also highly important to the city. Operating via a smartcard system, the MyCiTi bus system is developing fast – two years ago there were only six routes servicing the CBD; now there are 19, with further routes planned and being added all the time.

“No doubt we will face challenges in the coming year, among them the growing social issues we have to deal with along with every other CBD in the country,” says Kane. “We also hope to see inroads made into addressing the challenges behind the optimal management of public spaces, as well as into finding a way for formal and informal trading to coexist more cohesively. But in spite of these challenges, it is clear we’re doing something – in fact, quite a lot! – right.”



editorial

A new form of discriminationIn light of the ever-changing legislative and social landscape pertaining to the South

African workplace, international business-law firm Fasken Martineau’s Johannesburg partner Melanie Hart provides legal comment on the Employment Equity Amendment Act

With reference to the United States’ Equal Pay Act of 1963, which prohibits arbitrary

discrimination against women in the payment of wages, Dwight David Eisenhower was quoted as saying that “Legislation to apply the principle of equal pay for equal work without discrimination because of sex is a matter of simple justice.”

The Employment Equity Amendment Act, 2013 (“Act”) introduces a number of significant amendments to the Employment Equity Act No. 55 of 1998, which aimed to achieve equality in the workplace by eliminating unfair discrimination and implementing affirmative action in respect of race, gender and disability.

Most notably, a new clause is introduced that seeks to prohibit abusive practices by ensuring that employees who work for the same employer receive the same pay as other employees doing the same or substantially the same work, or work of equal value. The amendment goes further than ensuring equal pay for equal work based on gender equality such as in the case of the Equal Pay Act, and also seeks to address the wage disparities exacerbated by the legacy of apartheid.

Equal pay for equal workThe new section 6(4) gives effect to the constitutional protection of equality and is necessary to ensure compliance with the International Labour Organisation’s (ILO) conventions that deal with discrimination. The ILO’s Convention No. 100 concerning equal remuneration for men and women workers for work of equal value commits member states to ensure that pay equity is applied to all workers by means of national laws, wage determination machinery, collective bargaining or a combination of these methods.

The amendment to the Employment Equity Act is also consistent with the fact that the failure to apply the principle of equal pay for equal work is classified as an unfair practice in terms of the Promotion of Equality and the Prevention of Unfair Discrimination Act, No. 4 of 2000.

A differentiation based on a ground listed in section 6(1) or any other arbitrary ground will amount to unfair discrimination – unless the employer can show that differences in wages or other conditions of employment are, in fact, based on fair criteria such as experience, skill, responsibility and qualifications.

On 28 February 2014, the Minister of Labour published regulations for comment prescribing criteria and methodology for assessing work of equal value.

The regulations start with a repeat of the obligation that an employer must, in order to eliminate unfair discrimination, take steps to eliminate differences in terms and conditions of employment, including remuneration, of employees who perform work of equal value if those differences are directly or indirectly based on a listed ground.

An employer must ensure that employees are not paid different remuneration for work of equal value based on race, gender or disability. The obligation to equal pay arises where employees do the same work, substantially the same work or where the work is of equal value. The work is of equal value where the work performed by an employee is of the same value as the work of another employee of the same employer in a different job, and if their respective occupations are accorded the same value.

Once it has been established that the work concerned is of equal value, the next question is whether there is a difference in terms and conditions of employment, including remuneration. It must then be established whether any difference constitutes unfair discrimination by applying section 11 of the Act.

In terms of section 11, if unfair discrimination is alleged on a listed ground, the employer against whom the allegation is made must prove that such discrimination did not take place as alleged, or that it is rational and not unfair, or is otherwise justifiable.

If unfair discrimination is alleged on an arbitrary ground, the complainant must prove that the conduct complained of is not rational, the conduct complained of amounts to discrimination, and the discrimination is unfair.

It will not amount to unfair discrimination if the difference in pay is fair and rational and based on a number of grounds, including but not limited to the individuals’ respective seniority or length of service; qualifications, ability, competence; respective performance; and quality or quantity of work, provided that employees are equally subject to the employer’s performance evaluation system.

A differentiation in terms and conditions based on any one or more of the grounds listed above will be fair and rational if it is established (using the burden of proof as set out in section 11) that its application is not biased against an employee or group of employees based on race, gender or disability or any other listed ground; and it is applied in a proportionate manner.

Another possible defence in South Africa is that of the prevailing labour market within certain geographical areas. In Golden Arrow Bus Services (2000) 3 BLLR 311 (LC), the Labour Court stated that market factors were accepted as one of the influences, which in combination with others may legitimately cause variation in remuneration levels, provided that they are uncontaminated.

In terms of the National Union of Metalworkers of South Africa and SAMANCOR Ltd (Meyerton Works) 1998 7 ARB 6.7.12, the applicant filed a grievance in which he complained that his salary was lower than that of other human resources officers in the same job at Meyerton Works. It was not alleged that the differentiation between the various human resources officers was based on any of the listed grounds. The arbitrator had to deal with the issue of the right to equality. According to the group remuneration manager of Meyerton Works, a shortage of candidates for a particular job and the need to attract them by means of higher pay constituted an objectively justified ground for the differentiation.

ConclusionCompliance with Employment Equity Legislation has now, more than ever, become a business imperative. Employers must take measures to progressively reduce the income differentials. Employers who fail to comply with the provisions of the Employment Equity and the Employment Equity Amendment Act not only face large financial penalties in the form of fines and adverse consequences on their B-BBEE score-cards, but they may tarnish their corporate image and lose their competitive advantage when recruiting and retaining high-performing staff as well as tendering for business.

Fasken Martineau’s Melanie Hart

Equality In Workplace_SUBBED.indd 48 2014/07/17 4:12 PM


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on show on show


on show

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A space with a new

iconic place

Gavin Dickinson of project implementation company Trend Group and Jonathan Leibowitz of Empowered Spaces Architects

collaborated in the venture by securing a prime corner site on Jan Smuts Avenue, Dunkeld, recognising the potential of the area and the site. Dickinson and Leibowitz, who have been undertaking projects together for several years, put up a successful joint venture within a very tight deadline in which they secured, packaged and raised � nance for the project within 12 months. Dickinson says that even though the project was done on risk, Nedbank � nanced it and was satis� ed with the joint venture overall.

Ultimately, the expertise these two colleagues (and friends) have built up over the last 15 years proved without doubt that

they can successfully collaborate to deliver a full turnkey project such as this for the property market.

With an area supporting a high tra� c � ow in the ‘A’ income group, the site o� ered the opportunity to create a modern building that would stand out from the crowd in terms of design and structure, according to Leibowitz. “The building’s contemporary and cutting-edge design invigorates the surrounding urban areas through its distinctive and inspirational architecture,” he says.

The project has clearly been a catalyst for the revival of the surrounding area, much of which has undergone a transformation since the completion of this building.

Born out of a shared vision, the new Net#work BBDO building in Dunkeld, Johannesburg has been recognised by many as an iconic structure

By Glenn Bentley



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This stylish and contemporary o� ce complex in the heart of Dunkeld was snapped up by Net#work BBDO advertising agency, which wanted a building that resonated with its brand values and image. Net#work BBDO felt this building jelled with its brand. The company approached the development team about renting it while it was being constructed, and became increasingly excited about the building as it progressed, realising more and more that this was the perfect new home for the agency.

According to Leibowitz, part of what made the project successful was taking a visionary approach rather than a conventional commercial one. “This is a building that we feel is certainly iconic in its surroundings,” he says. “It has gained recognition and bene� ted the Net#work BBDO brand, which – in commercial terms – is one of the most successful things you can do for a building. We helped to create a ‘persona’ for the company, which is a renowned and equally iconic advertising agency.”

Meyer Erlank, a Director at Trend Group, was the Project Manager who spearheaded the implementation and delivery of the entire project. Having a meticulous and professional approach to any project he undertakes, he gave the same attention to detail to this fast-track development.

The site offered the opportunity to create a modern building that would stand out from the crowd in terms of design and structure




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Erlank had spent time working for a large building-services company before joining Dickinson to form Trend Group, where he operates in the construction project management field. Erlank says there were no challenges that were out of the ordinary on this project. Having a strong team around him and good weather conditions, the joint

venture successfully completed all stages of the project to the required deadlines.

Bulk earthworks commenced in November 2012 and handover for occupation was in September 2013, with the building being fully operational in October 2013.

This was a holistic effort, according to Leibowitz – they didn’t just design a building.

In addition to being aesthetically pleasing, the architectural design included energy-efficient features such as the double glazing on the north façade, which makes for a good north-south aspect.

Adding even more value to the building, the team transformed the blank rooftop into an attractive and unique outdoor space,




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which offers panoramic north-west views across most of Johannesburg. From Net#work BBDO’s point of view, employee wellness and motivation at the office are important, and the company views this space as valuable in enhancing people’s everyday experience of their workplace. “The only challenge in this was in preserving the two stately Jacaranda trees in the neighbours’ garden,” says Leibowitz. “With much creative thought and with concern for the trees, the branches were shaved back to enhance the overall ambience of the rooftop garden.

In addition to being aesthetically pleasing, the architectural design included energy-efficient features such as the double glazing on the north façade, which makes for a good north-south aspect



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“The blank east and west façades, with simple slot windows cut into them, enhance the contemporary linear aesthetic and create a monolithic sculptured e� ect. As one moves past the building, it has a sculptural, monumental feel. It doesn’t look like a commercial building – you could mistake it for a museum or an art gallery,

especially when you see people standing on the roof enjoying the fresh air and magni� cent views in this extremely unorthodox o� ce space. It generates a non-stereotypical o� ce feel, which ultimately has an inspiring impact on the pedestrian tra� c below.”

Leibowitz says they didn’t just develop a building – it was a holistic design that

included the lighting and landscaping, which were felt to be integral to the overall success of the space as an iconic building. A good example of this is the integrated lighting design. Also, instead of using plain planters or trying to save on the small things, they chose to clad them in rock-work, creating small works of art to � ll the open spaces.

The blank east and west façades, with simple slot windows cut into them, enhance the contemporary linear aesthetic and create a monolithic, sculptured effect. As one moves past the building, it has a sculptural, monumental feel



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www.montblancconstruction.co.za

MONT BLANCC O N S T R U C T I O N

placing responsible construction first

[email protected]

EMPOWERED SPACES



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External lighting was used to its full effect to enhance the architecture and landscaping– the trees and planters are lit up, not just left to lurk in the shadows. To these two young developers, the attention to detail was of prime importance and could not be compromised because of additional costs. Like a fine suit, the quality is in the stitching.

Dickinson and Leibowitz are confident that as co-developers in an extremely successful joint venture they will be busy with numerous requests to fulfil the same requirements for other clients by offering a full turnkey service, whether it be for a new build or a refurbishment of existing office space, from blue-chip listed companies to all others in need of such innovative commercial projects.

TREND GROUP – GAVIN DICKINSON Commercial office design and project management

Trend Group is a comprehensive project implementation company that offers a streamlined approach to corporate commercial interior spaces and project development refurbishments, covering all aspects of the turnkey process.

Trend Group specialises in the refurbishing of commercial buildings and fit-outs of interior spaces. Its most recent successes in completed office fit-outs include a very lengthy list of blue-chip clients, including Bloomberg, Deutsche Bank and Prudential (among others).

EMPOWERED SPACES ARCHITECTS – JONATHAN LEIBOWITZ

Empowered Spaces began to make its mark in the architectural world in 1996. Founded and established by directors Jonathan Leibowitz and Terence Shacklady, it has grown into a sizeable company with a current a total of 31 full-time employees (six of them architects). Achievements so far include a total of three SAPOA awards in 2014: one for Best Industrial Building for Grundfos, a 5-star Green Star SA rated building situated on the R24 in Elandsfontein; one for the Best Refurbishment for Noswal Hall in Braamfontein; and the Overall Ingenuity award for 2014. These are highly regarded industry awards, which are respected by Leibowitz and all who work at Empowered Spaces.

For Leibowitz, the practice’s biggest achievement has been growing into a company that services the majority of the commercial property sector.

Meet the teamArchitect Empowered Spaces www.espaces.co.za Quantity surveyors IBP Central www.ibp-central.co.zaDevelopment manager Trend Group www.trendgroup.co.zaContractor Mont Blanc Construction www.montblancconstruction.co.za



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statistics

The developing womenSource: UN Women, Millennium Development Goals Gender Chart 2014;

UN Women Watch, Rural Women and the Millennium Development Goals Fact Sheet

Playing a major role in supporting their households and communities, rural women are responsible

for obtaining food and nutrition security, generating income, and improving rural livelihoods and overall wellbeing. They are the caregivers of the villages and the sole providers of their poverty-stricken families.

Apart from this they contribute to agriculture and rural enterprises, and stimulate the local and global economy. Thus they are active players in the world. Sadly, rural women and girls are presented with constant structural constraints that stop them from enjoying and practising their human rights. Their lives are persistently hampered, and they face threat and abuse on a daily basis.

Rural women extensively form a key part of the Millennium Development Goals (MDGs), a range of eight goals aimed at various global challenges, including extreme poverty, rampant diseases such as HIV/Aids, and a lack of education.

Set to be achieved by 2015, the MDGs form a blueprint agreed to by all of the world’s countries and leading development institutions that have amalgamated unprecedented efforts to meet the needs of the world’s poorest.

On 25 September 2013, an event was hosted by the president of the UN General Assembly to follow up on the efforts made thus far in achieving the MDGs by next year. World leaders renewed their commitment to meet the MDG targets, and agreed to hold a high-level summit in September 2015 to adopt a new set of goals that will build on the achievements of the MDGs.

According to an MDG progress fact sheet, there have been some advancements made – but gaps still exist. Highlighting the progress of rural women against key MDG indicators, the fact sheet suggests that globally, and with only a few exceptions, rural women fare worse than rural men, urban women and urban men for every MDG indicator for which data are available

It also noted that, while data collection in this regard has improved in recent years, the availability of data is still infantile – there still remains a general lack of data not only disaggregated by gender, but also by rural and urban areas.

● Goal 1: Eradicate extreme poverty and hunger. Rural women’s poor access to infrastructure limits

their opportunities to reduce poverty and hunger.

● Goal 2: Achieve universal primary education. Poverty and inequality are barriers to education.

● Goal 3: Promote gender equality and empower women. Rural girls are doubly disadvantaged

in global secondary school attendance.

● Goal 4: Reduce child mortality. Child mortality

rates in rural areas remain higher than in urban areas.

● Goal 5: Improve maternal health. More rural

women receive assistance during delivery, but

inequalities remain.

● Goal 6: Combat HIV/Aids, malaria and other diseases. Rural women have a more limited

understanding than urban women of how

HIV spreads (the fi rst step to avoiding infection).

● Goal 7: Ensure environmental sustainability. Rural women and natural resources.

● Goal 8: A global partnership for development.

The eight MDGs

Employed population as a share of total adult population, by gender and sector

Source: FAO, 20113

Aid in support of gender equality and women’s empowerment, 2002-2011 (%), and annual average commitments (constant 2011 US$ billions)

Source: OECD, 2014 (Investing in women and girls to achieve the MDGs and accelerate development beyond 2015: aid in support of gender equality and women’s rights)

According to an MDG progress fact sheet,

there have been some advancements

made – but gaps still exist

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KZN golf day

KZN golf day

FROM LEFT First place: Edwin van Niekerk, Oscar Chalupsky, Luke Chalupsky and Herman Chalupsky

Edwin van Niekerk with Dean Narainsamy Edwin van Niekerk with Luke Chalupsky

FROM LEFT Third place: Edwin van Niekerk, Evan Sim, Darrol McKeowen, Andrew Tweedie and Dean Narainsamy

FROM LEFT Second place: Edwin van Niekerk, Kevin Smith, Rob Thomson and Gordon Dawson

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The date was 9 August 1956. A brewing sea of 20 000 women from all race groups

marched to Pretoria’s Union Buildings to present a petition against the dreaded “dompas” – pass books that the South African black population was legally forced to carry as part of an internal passport system designed to segregate the population. Initially aimed at only black men, the system was applied to women during the 1950s.

Filled with elated pride and a strong resistance, the march was one of South Africa’s largest demonstrations in history. Organised by the Federation of South African Women, which challenged the sexist notion that “a woman’s place is in the kitchen”, the women of the march began to chant a freedom song: “Wathint’ abafazi, Strijdom!”

Ever since then, the iconic phrase “wathint’ abafazi, wathint’ imbokodo” (you strike a woman, you strike a rock) has come to represent the courage and strength of South African women – and resulted in our National Women’s Day, which we celebrate on 9 August every year.

While sexism, gender inequality, violence against women, and female stereotypes still exist today, many continue to � ght for women’s rights. Striking these injustices in a physical format is Rock Girl, a grassroots organisation that partners with artists and designers to create safe spaces not only for girls but for everyone.

Rock Girl was inspired in 2011 by a group of grade-� ve girls from Manenberg in Cape Town who did not feel safe at their school. Since then, Rock Girl has installed more than 40 Safe Space benches around Cape Town and one in Johannesburg, and has worked with more than 400 girls and boys in Manenberg and around the city of Cape Town to create a safer community for all.

Rock Girl is currently installing several new benches around the city, including one on Tafelberg Road to honour all strong women of Cape Town, two sponsored by Nampak made entirely of recycled materials, one in Bredasdorp to honour Anene Booysens, and one in Manenberg at the Druiwevlei community centre.

While many of the Rock Girl benches are symbolic, sister benches located at clinics, schools, community centres and shelters are linked to projects that ensure real safety for girls, women and everyone. Rock Girl is collaborating with other organisations on four World Design Capital 2014 projects, including Rock Girl Book Hoeks (mini free libraries and benches with the Shine Centre), the Safe Space Creative Hub in Gugulethu in partnership with Inhouse Brand Architects, and the If You Knew Me project in partnership with the Children’s Radio Foundation and Iliso Labuntu.

� e fourth World Design Capital 2014 project is the Women of Steel or Wonder

Women project, in partnership with Architect and Designer Mokena Makeka of Makeka Design Lab. Rock Girl will install six to eight life-sized steel sculptures of women around Cape Town to honour and celebrate South Africa’s iconic women such as Miriam Makeba and Ruth First, to inspire others to continue their e� orts to make South Africa a safer country for all, and to inspire women and girls, boys and men, to stand a little taller and achieve their dreams. � e statues are modelled on illustrations of some of the women that the girls from Manenberg were inspired by in 2011. � e sculptures will be linked to an educational website with more information about the women featured in the statues. � e biographies will be printed and distributed to schools around the Western Cape and also linked to Rock Girl’s online educational site.

Rock Girl thinks it’s time to celebrate and champion the South African women who have shaped our past, and to inspire the next generation to help shape our future. While the statues will be symbolic, Rock Girl hopes that they will be aspirational – like the Mandela statue on Nelson Mandela Square in Sandton.

Statues won’t stop the violence that so many women and girls face each day – but they will send a message that women and girls should be respected. Like Rock Girl’s Safe Space benches, they will ignite much-needed conversation about how to make Cape Town and South Africa safer for all.


off the wall

Strike a woman,strike a rock girlIn celebration of South Africa’s past, present and future

women, grassroots organisation Rock Girl is packing a punch with several striking projects in South Africa

By Candace King and India Baird

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PASSIONATE ABOUT

SUSTAINABLE DESIGN

WSP is a world leading engineering and design company with 17,000 staff in more than 300 offices in 35 countries. We work across property, transport, infrastructure, industry, environment, energy and mining – demonstrating technical depth and excellence in each and every project.

Our experts are passionate about innovation and sustainable development, ensuring sustainable design principles are applied on all our projects, from major property developments, to industrial warehouses and distribution centres, to transport networks and ports facilities.

Our people are united by their pride in their work and their passion for solving clients’ problems. Our unique combination of specialist skills backed by global reach will enable us to offer the latest thinking and best client service, whatever and wherever the challenge.

www.wspgroup.com

17,000 300 35

Untitled-3 1 2014/07/28 9:57 AM

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.

Untitled-3 1 2014/07/28 9:56 AM

WOMENin propertySupplement 08’14

STANLIB womenpassionate about property

Meet the property industry’s mostinfl uential women

Inspiring black women in the

property sector

SA

PO

A

WIPCover-to-go_subbed.indd 1 2014/07/21 5:42 PM

www.LegacyCorner.co.zaLegacy Corner Shopping MallOff Nelson Mandela Square, cnr Fifth and Maude Street, Sandton | (011) 292 7000

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SAPOA women in property

contents

WOMEN

in propertySupplement 08’14

STANLIB womenpassionate about property

Meet the property industry’s mostinfl uential women

Inspiring black women in the

property sector

SA

PO

A

WIPCover-to-go_subbed.indd 1 2014/07/21 5:42 PM

Editor in chief Neil Gopal Editorial advisor Jane Padayachee Managing editor Mark Pettipher Editor Candace King Copy editor Ania Rokita Production editor Dalene van Niekerk

Designer Dirk Knoesen Sales Riëtte Stevens Finance Susan du Toit Contributor Denise Mhlanga Photographers Mark Pettipher, Justin Lee

DISCLAIMER: 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 e: [email protected]

Printed by

e: [email protected]

WOMEN

in propertySupplement 08’14

2 STANLIB: Passionately Invested6 Inspiring black women in the property sector10 Motseng Property Services (MPS)14 Airports Company South Africa Properties (ACSA)15 Associated Alterations16 Atterbury Asset Managers (AAM), Auction Exchange (Pty)

Ltd/Commercial Exchange17 Eketsa 18 D12 Interiors, Dipula Income Fund Limited,

Excellerate Property Services19 Grosskopff Lombart Huyberechts and Associates Architects (GLH)20 Fluxmans Inc., GoIndustry DoveBid South Africa (Pty) Ltd21 Grant Thornton22 Interpark (South Africa) (Pty) Ltd, Excellerate Valuations and

Advisory Service, Neo Trend Property Developers23 Old Mutual Property, Vukile Property Fund24 Pivotal Property Fund

P R O P E R T Y F U N D

Abland

Abreal

Oilgro

August 2014

Contents.indd 1 2014/07/22 2:48 PM

2 SAPOA women in property

STANLIB

When one thinks of STANLIB, notions of power and prestige come to mind. Having been

established in 2002, the relatively young company is now regarded as one of the best in South Africa, and boasts a footprint in seven African countries.

However, the top investment asset manager is much more than that. Apart from aiming high, STANLIB thrives on passionate people, real staff with real piqued interests in clients, investment and, of course, the property industry.

STANLIB acknowledges that in today’s unpredictable times and with the economy in disarray, protecting and growing your money is more difficult than ever. In light of this, STANLIB’s

Passionately investedDriven by intellectual curiosity and focused investing, STANLIB’s

highly qualified and dedicated team of

ladies is passionate about property – and

adamant about achieving investment excellence.

This is their story

investment specialists share a common trait – intellectual curiosity – which is applied to create opportunities to preserve and grow your money.

With a personal touch, STANLIB mixes the new and fresh with the classical. The team believes that its invested qualities of wisdom and curiosity are what set it apart.

So what is applied intellectual curiosity? Like the schools of yesteryear steeped in tradition, STANLIB’s motto is rich and all-encompassing. STANLIB strives to understand and find the best solution for every opportunity. It understands its clients corporately and personally, and seeks new methods and practices that constantly improve delivery.

STANLIB

STANLIB advertorial_subbed.indd 2 2014/07/21 4:59 PM


STANLIB

3

STANLIB believes in never losing focus, and strives to instil confidence and trust through its investment principles. STANLIB believes in never settling for mediocrity; in doing what you love and loving what you do.

STANLIB wants to be known for investment excellence. Passion plays a big role at STANLIB – passion lies at the source of all great achievements and successes, and is reassuring and even inspiring.

Passion leads to real people experiencing a profound breakthrough in real moments and situations. What’s even more humbling about STANLIB is that the company is passionate about empowering women.

Meet the passionate team

Amelia BeattieSTANLIB’s Chief Investment Officer: Direct Property Investments and SAPOA’s President Amelia

Beattie is equally passionate about women and the many

opportunities for them in an industry that several years ago was dominated by white men. A mother, hard worker, caregiver and respectable leader in the property industry, Beattie is bold when it comes to her passions and goals.

FROM LEFT Fadheelat Noor Mohamed, Kgaogelo Mamabolo, Lee-Ann Pillay, Amelia Beattie, Nikiwe Mkhabela, Adele Maluleke and Chloe Ma

“I am a highly motivated individual with a principle-centred approach to work and life based on a strong values-centric philosophy,” she explains. “Having a genuine care and concern for others, I constantly seek to achieve through the development and growth of others.”

Boasting a CV that is rich in experience, Beattie has a BCom from the University of Stellenbosch as well as a Certificate in Shopping Centre Management (cum laude). She has held several highly esteemed positions, including that of Chief Operating Officer at Old Mutual Property. She has served on many boards and committees, including as a SAPOA Past National and Regional Councillor, as well as a Women’s Property Network Past National Chair.

“A career needs to offer a challenging environment where there are opportunities to apply analytical, strategic thinking, and business and investment skills across a broad range of responsibilities, and where I can share my deep passion for property – not only because of its investment returns and bricks and mortar, but for the difference that it makes to people and the communities it serves,” she says.

Chloe MaChloe Ma joined the listed property team as a Listed Property Analyst in 2014. She focuses mainly on

research and analysis of offshore listed property markets

but also covers South African listed property stocks. The offshore markets she currently covers include Hong Kong, China, Taiwan, Morocco and Mozambique.

Ma previously worked at Rand Merchant Bank as a Credit Analyst within the Real Estate Investment Banking division. During her time there, she gained experience in assessing credit-related risks for both development and acquisition financing for retail,



STANLIB

Fadheelat Noor MohamedImmediately upon graduating as a BCom (Hons) with a Strategic

Management major, and completing the Liberty

Properties Graduate Programme in 2010, Fadheelat Noor Mohamed was offered a position as Executive Assistant to the Chief Investment Officer at the time. She was subsequently promoted to Property Investment Specialist, covering asset management for a selection of retail and office properties and overseeing the portfolio’s listed property and cash instrument allocation, with focus on business development and investor relations for Liberty Properties.

Noor Mohamed joined the SDPI franchise as a property analyst in early 2012. She is now part of the Africa division, managing in-country pension fund property asset allocations in sub-Saharan Africa. This includes establishing appropriate vehicles for funds to invest in as well as identifying project pipelines.

“I decided to join the industry for completely superficial reasons,” she jokes. “I’m an avid shopper – and I was told I can also be involved in decision- making of tenant mix and retail expansions.”

Kgaogelo MamaboloDuring her final year of BSc Town and Regional Planning at the University of the Witwatersrand,

Mamabolo was referred to Viruly Consulting by one of her lecturers when they were looking for a graduate to join their firm. As she always enjoyed any property-related course she studied, it was only natural to go in this direction and not take up the planning route – an opportunity she says was one of the best to take on in her life, to shape a career and industry she is so passionate about.

From Viruly Consulting and after years as a Property Economist, she moved to Investment Property Databank as the Head of Research.

industrial, commercial and residential real estate in South Africa, Namibia and Angola.

Her qualifications include a Bachelor of Architectural Studies, BSc Property Studies (cum laude), BSc (Hons) Property Studies (cum laude), as well as a postgraduate diploma in Enterprise Management.

“I have been fascinated by architecture and property from a young age,” she says. “I enjoyed understanding why buildings are built in a certain way, and how culture and human psychology shapes the context in which buildings are designed. At the same time, I also enjoyed the finance and investment side of property and how it generates wealth for investors. Working at STANLIB enables me to fulfil both these passions. I am particularly enjoying the international property exposure I’m getting as it enables me to assess different property markets within a wider context.”

Amelia Beattie, STANLIB’s Chief Investment Officer: Direct Property Investments and SAPOA President, with Kgaogelo Mamabolo, Asset Manager for STANLIB Direct Property Investments



STANLIB

5

She then joined the asset management sphere in 2007 as Head of Unlisted Property at Liberty Properties and moved with the team when the Asset Management discipline was moved to STANLIB in 2012.

“I have been fortunate to work on industry bodies outside of my company to impact positively on issues challenging the industry, with support from the companies I worked for, occasionally representing them as members,” she says.

Mamabolo possesses an astounding roster of achievements. She was once Past President of the South African Institute of Black Property Practitioners, previous board and council member of the Property Charter Council as well as a Past National Councillor for the South African Council of Shopping Centres. She is currently a National Councillor for SAPOA, having previously chaired SAPOA’s Research Committee and Office Vacancy Survey Committee.

Significantly, she also took up national calling in late 2013 to assist the Minister of Public Works and his team in the drive towards improving the department’s property-related services’ business, together with other seconded private sector individuals. This was the result of a conscious decision not just to complain but to get involved and do something to help. She did this in addition to her responsibilities at STANLIB.

Lee-Ann PillayDriven by finding innovative solutions to real-life challenges, and passionate about

the property and financial industry, Lee-Ann Pillay is an

Analyst at STANLIB Direct Property Investments. She is involved in analysing, monitoring and reporting on various key portfolio measures, including monthly and quarterly financials, vacancies, credit and other statistics, new trends and developments, and benchmarking.

She also provides support to the asset managers through feasibility analysis and proposals to improve asset values, as well as in acquisitions and disposals.

She is a product of the Liberty Group’s select Graduate Development Programme, and joined Liberty Properties’ asset management division in 2009 as an assistant asset manager. She took on her current assignment early in 2012.

Pillay holds a BCom degree in economics and finance from the University of KwaZulu- Natal, and most recently attained a BCom (Hons) Investment Management from the University of Johannesburg. “What drives and makes me passionate is the sense of satisfaction of a job well done,” she says.

Nikiwe MkhabelaMkhabela joined STANLIB in January 2012 from Liberty Properties, where she served three years as

an Assistant Asset Manager. Her job responsibilities include

monitoring the performance of the Liberty Property portfolio, analysing trading patterns against budgets and industry benchmarks, and other statistical reporting. Prior to joining Liberty Properties she worked for First National Bank as a Property Asset Administrator and for Haacke Associates as a Candidate Valuer. She holds a Bachelor of Technology in Construction Management, a national diploma in Real Estate, and a postgraduate diploma in Investment Analysis and Portfolio Management obtained from the University of Johannesburg. She’s pursuing a master’s in Property Development and Management at Wits.

“I’m passionate about property as it is a basic need and one of the safest investment asset classes,” she says. “The property sector is heterogeneous; it allows you to work closely with a number of industry professionals with a wide range of skills and from various backgrounds, construction to management. Although the industry is still male-dominated, transformation is driven and women are making strides to the top. Women need to play their part in developing themselves, and need to be courageous, balanced and brave to rise to any challenge.”

She notes that STANLIB encourages and nurtures talent, offering room for development and career progression. Hard work is recognised and rewarded.

Focused investing, focused futureWhen STANLIB looked at its positioning in the market, one of the things that was realised was that its pay-off line needed a new lease on life. Thus Focused Investing was born, helping people to instantly understand what category or type of company STANLIB is. It is strategically aligned to STANLIB’s brand essence, positioning and reassuring passion expression. It is also strategically supportive of its multi-specialist approach, strength of diversity and power of focus.

“At STANLIB, property is a very important part of what we offer our clients,” says Beattie. “It is an attractive asset class, so I get a lot of support from the bigger Liberty Group which makes the role a little easier to undertake.

“We have an ability to change the lives of so many people through bricks and mortar. Property is an amazing industry, not only for investors. We create jobs, create trading environments and change people’s lives.” Focused Investing makes a brand promise to STANLIB’s clients and leaves room for expression. It doesn’t limit what can be said about STANLIB. Focused Investing is an affirming statement that can work with almost any required communication. This is STANLIB’s story.

STANLIBPO Box 203Melrose ArchGauteng, 2076

t: +27 (0)11 448 5000f: +27 (0)86 010 5395

“We have an ability to change the lives of so many people through bricks and mortar. Property is an amazing industry, not only for investors. We create jobs, create trading environments and change people’s lives”Amelia Beattie, STANLIB’s Chief Investment Officer: Direct Property Investments, and SAPOA President



inspiration

I not only write about property, I’m also passionate about it – the people, and the ever-changing and

dynamic nature of the sector. Above all, I’m inspired by the women, particularly black women, who have made their mark in this still male-dominated industry.

I’ve followed the career of Nomzamo Radebe, JHI Properties’ Managing Director, with keen interest. When she took over in January this year from Johann Boshoff (who retired from the company after 44 years of service), she said, “I believe we need transformation in the property industry so that we can increase the skills pool and expertise in property.”

With August being women’s month, the South African Property Review caught up with Radebe and two other inspiring women, talking about their career in property, transformation and inspiring others.

A career in property Radebe is a qualified chartered accountant who knew already in Grade 11 what she wanted to be when she grew up. Today, she’s living proof that dreams do come true. She studied for a BCom degree and an honours degree in accounting at the University of Cape Town, completing her articles with KPMG Inc in 2000. She then joined Sasol in the group’s treasury unit as Treasury Operations Manager for four years, before moving on to the National Treasury’s Asset and Liability Unit (in the asset management division), where her responsibilities included “monitoring of the financial performance of state-owned enterprises, facilitation of government’s restructuring initiatives for SOEs, and promulgation of the Auditing Profession Act”.

It was post-2006 that Radebe joined Pareto Limited for a period of four-and-a-half years as Chief Financial Officer (Executive Director) then Chief Investment Officer (Executive Director), before joining JHI Properties in January this year.

A quantity surveyor with a focus on commercial, retail, hotel, leisure and healthcare properties in the private and the public sector, Sandi Mbutuma has been in property for 13 years. She’s a Business Development Director at Pentad, a position she has held for three years. “My job entails marketing to clients and sectors that Pentad was not previously exposed to,” she says. “It requires a thorough understanding of the acquisition vehicles used by different clients and sectors, especially in different geographic landscapes.”

It also requires someone to introduce, develop and maintain strong business relationships with key decision-makers within these sectors and areas.

Another chartered accountant-turned-businesswoman, Zola Ntwasa is a Director and Co-founder of Jade Capital Partners, a property investment company that specialises in commercial property, specialised residential property and strategic BEE investment. “I chose a career in the property sector and subsequently started my own property business because I’m passionate about the asset class,” she says. “It’s a diverse industry that is entrepreneurial in nature, offering a wide range of opportunities throughout the value chain.”

Ntwasa explains that her vision is to build a property company that is black-controlled and spearheaded by women. Prior to this, she was a Director at Standard Bank’s Real Estate Division, where she headed up the New Business team.

Challenges and entry barriers for women in the sectorAccording to Ntwasa, the sector is dominated by men (especially in relation to real-estate ownership), which women can find intimidating – and opportunities are generally limited to the “inner circle”. “There aren’t enough female role models to act as sounding boards, collaborate on deals and create normalcy for women in leadership and business in the sector,” she says.

Mbutuma points out that for those employed, opportunities for women in high positions relative to the number of “well-seasoned” professionals are few and far between. She also feels the sector is not easily accessible, probably because a lot of young people do not consider property as a career. Many end up in the sector by default – though they end up liking it.

“Although not a challenge limited to the sector, access to finance – especially for those starting their own companies – is a concern, which further causes a barrier to entry into the sector,” she says.

Ntwasa concurs with Mbutuma’s sentiments, saying that women are their own worst enemy. “Women sometimes miss out on opportunities because we’re always trying to find the perfect ‘work-life balance’,” she says. “There can never a perfect balance – you have to define what success means to you and achieve the balance you want.”

Inspiring black women in the property sector

While the property sector is still being transformed with a

number of black women in top positions in the companies they work for, others have taken a leap of faith to form their own companies and empower others

By Denise Mhlanga

“There aren’t enough female role models to

act as sounding boards, collaborate on deals

and create normalcy for women in leadership

and business in the sector.”

Zola Ntwasa, Director and Co-founder of Jade Capital Partners

Inspiring Women_subbed.indd 6 2014/07/21 5:11 PM


inspiration

7

A good support structure and an ability to delegate effectively, both at home and work, will make it easier to move up the corporate/business ladder, she explains.

Property sector transformationAll three women note that transformation remains a challenge in the sector. They acknowledge the work that’s been done so far but feel there’s still room for improvement, especially when it comes to empowering women.

Radebe notes that, at the moment, there is a relatively small participation in the market. If one considers the demographics of South Africa and of the individuals currently employed within the property industry, the stats are not commensurate with each other. “We need to have people from all sectors of society in the country being able to contribute their expertise in this sector,” she says.

“I appreciate the efforts made by our industry because we have to act under volatile economic circumstances,” says Mbutuma. “But we could do even better with the cooperation of all the stakeholders in the industry, especially if we all pursue the same vision of transformation.”

The property sector was, in the past, not known as an industry in which individuals from disadvantaged communities could have thriving careers, says Radebe. What’s more, the sector significantly contributes towards GDP and job creation, which is a critical objective in South Africa. “Through the various transformation initiatives by JHI, other companies and industry bodies, more people from all walks of life are able to enter the market and contribute meaningfully,” she says.

JHI Properties, a member of the Excellerate Property Services group, is a Level 3 B-BBEE contributor, scoring in excess of 65% against the five-year targets of the Property Charter. Currently, the JHI Properties workforce comprises approximately 60% women.

Radebe says the HR department plays a key role in staff development, including women and gender empowerment, through a variety of training initiatives at all levels. The organisation focuses on skills transfer; learner, mentorship and employment equity; as well as helping foster entrepreneurs who seek to enter the industry. Graduates are also recruited to participate in JHI Properties’

Nomzamo Radebe, JHI Properties’ Managing Director

internship programmes and are exposed to the property industry in the business’s various facets.

Meanwhile, Ntwasa notes that commercial property ownership is dominated by institutions, listed companies, government and private white owners. There is limited participation by black people, particularly women, in the ownership and control of these entities, and a lack of appreciation of their wealth-creating benefits. For example, she says senior-management roles do not reflect the demographics of the country because JSE-listed companies still have100% white male representation at nonexecutive and/or executive levels. “If diversity is not embraced at the leadership level, transformation in the broader organisation will remain a challenge,” she says.

On women owned property companiesEntrepreneur development has been identified as a key driver and stimulant for job creation in South Africa, and women empowerment is one of the key objectives of the Property Charter, says Ntwasa.

The property sector was, in the past, not known as an industry in which individuals from disadvantaged communities could have thriving careers.”Nomzamo Radebe, JHI Properties’ Managing Director

Inspiring Women_subbed.indd 7 2014/07/21 5:12 PM


inspiration

Sandi Mbutuma, Quantity Surveyor and Business Development Director at Pentad

“Be careful about seeking advice from someone you intend to do business with

once you implement your idea”

Sandi Mbutuma, Quantity Surveyor and Business Development Director

at Pentad

as has the inability of the education and training system to meet the demand-driven needs of the economy. In general, the nature of the skills shortage in South Africa remains poorly defined. “The only way to address skills shortages is with an increase in public investment in education and training,” she says. “This has possibly been an inadequate response in alleviating skills shortages.”

Radebe says that JHI Properties has intensified its focus on helping young talent to gain entry into the commercial property industry, and on providing them with invaluable experience and skills. At any given moment, the company has 30 to 40 learners and interns, mainly from a previously disadvantaged background, who receive practical experience and mentoring within the organisation. “Most become employees of JHI Properties after a year of practical training, while others find employment in the industry.”

In 2013, JHI Properties took on a group of interns from SAPOA to spend several weeks at JHI Properties, benefiting from mentoring and hands-on experience. “With our vast experience and extensive employee network, which includes some of the best-qualified people in the industry and experts in their field, we welcome enthusiastic new talent into our organisation to share this knowledge,” says Radebe.

From an overall industry perspective, Kgodisa Training Academy also forms part of Excellerate Property Services group and provides National Qualifications Framework Level 4 courses, which are registered with the Services Sector Education and Training Authority (SETA). It was the first institution to provide SETA-accredited training for the recently introduced Facilities and Property Management diploma, which is an NQF Level 4 qualification.

“We will continue to play a role in helping those from previously disadvantaged backgrounds enter the property industry and further their career, and also to contribute to a changed perception in the industry towards women in the workplace,” says Radebe.

Education is key and forms the basis for success going forward. For Ntwasa, who qualified as a chartered accountant in 2002 and completed her articles with Deloitte in Durban, it included a postgraduate diploma in accounting at the University of Natal, followed by a BCom degree at the University of Cape Town.

She also completed various property-related courses through SAPOA as well as corporate-governance training through the Institute of Directors.

This presents an opportunity for women, she says, pointing out that there are very few women-owned property companies, yet the opportunities are plenty. To get more women entrepreneurs, the private sector and government need to proactively afford women the opportunities through such things as preferential procurement, enterprise development initiatives, disposal of property to women-controlled companies and co-investment opportunities. “Commercial banks’ credit models are not tailored for start-ups or businesses with a limited balance sheet,” says Ntwasa. “Government thus has to facilitate the accessibility of finance for property ownership.”

Mbutuma notes that with a global status of one percent of property companies being owned by women (no different from South Africa), there is 99% of “room” for women in this country and sector to grow and run their businesses.

Property education and skills development According to Mbutuma, the reliability of the labour market data has been a worrying factor for some time,

Cover spreads.indd 1

Paddock View, Hunt’s End Office Park, 36 Wierda Road West, Wierda Valley, SandtonPO Box 78544, Sandton 2146

t: +27 (0)11 883 0679 f: +27 (0)11 883 0684www.sapoa.org.za

Cover_final.indd 1

SAPOA publications.indd 18Inspiring Women_subbed.indd 8 2014/07/21 5:12 PM


inspiration

9

Zola Ntwasa, Director and Co-founder of Jade Capital Partners

“Empower yourself with knowledge and multiply your efforts through networking”Zola Ntwasa, Director and Co-founder of Jade Capital Partners

“The industry as a whole needs to invest more in skills development and create an appreciation of property as a career,” Ntwasa says. “Property is still inadequately supported as a profession at a tertiary-education level, so resources need to be channelled into the provision of bursaries, skills development and ongoing staff development into senior leadership roles.”

Encouraging and inspiring others Getting to directorship or business-ownership level not only requires relevant qualifications and experience, but also certain characteristics and personality traits to help you along the way. You also need the ability to help and inspire others to achieve their goals and reach for their dreams – and these women embody all the above.

Radebe, for example, has an independent mind and strong drive to succeed. Knowing at an early age that she wanted to be a chartered accountant made her focused, which is why she is where she is today. “I enjoy the complexities of property and the dynamic people within the industry,” she says. “Many have had a positive impact on my career. Through my role at JHI, I will, in turn, continue to inspire and help other women to succeed.”

Mbutuma is passionate about giving back and believes that women should learn to encourage others and that giving is good for the soul. And where better to start than within our own community? She currently mentors four young women graduates and learners, mostly from underdeveloped areas, helping them access services and life skills, and exposing them to their chosen career paths.

She has also been involved with an NGO called Vital Choices – an engine for mentoring youth (both males and females). The NGO hosts workshops that seek to inspire and guide tertiary and junior professionals from all fraternities.

Mbutuma is a public speaker who seeks to empower women at all levels of society. She says that, regardless of who you seek advice from, you must be able to differentiate between substantive criticism and baseless attacks. “The most successful executives are malleable enough to know when to acknowledge their blind spots – and when to defend their position,” she says, adding that the best people to give advice are those who have traversed a terrain similar to the one lying in front of you and who are slightly removed from the situation.

Like Mbutuma, Ntwasa mentors students and young accountant graduates because she believes they can add immense value with their finance and audit backgrounds. She is also the Gauteng Chair of the Women’s Property Network, which acts as a platform for women to exchange information, develop business networks and enhance professional success.

She says a career in property is challenging and rewarding because the sector affords diverse exposure by allowing you to work closely with a number of industry professionals.

There is plenty of scope for development and career progression and a wide range of career options – from property development, project management, property management and asset management to finance and professions such as architecture and quantity surveying, says Ntwasa. “You should strive for excellence in your chosen field and deliver beyond expectations in order to grow both professionally and personally,” she says. “This attitude typically separates the achievers from the rest!”

Inspiring Women_subbed.indd 9 2014/07/23 9:51 AM


in profile

Motseng Property ServicesOur Journey

Founded in 2000 as a boutique property services provider, Motseng Property Services (Pty) (“MPS”) was welcomed by the market. Our first major property deals were with Marriot Corporate Services in 2002 to form Motseng Marriott Property. When Motseng Investment Holdings acquired full ownership of Marriott Property in 2005, including Marriott Corporate Property Services, the entire Motseng Marriott Property subsequently became Motseng Property Services.

A dedicated professional property services company, and a subsidiary of Motseng Property Group (Pty) Ltd, MPS has established a successful 14 – year track record. Our exciting growth story responds to an increasing need for our unique, results- driven brand of professional property services.

Company ProfileMotseng Property Services has grown into a

professional Property Management company, proudly Black Owned and Women Managed benefiting from a dedicated professional management team. We understand that our business has an important impact on the future of this country. How we manage your property today influences its future prospects for tomorrow. People are at the centre of our growth, and for this reason MPS ensures we have the best people by specialising in property management training to grow knowledge, skills and prowess, and drive our culture of innovation.

Because we are involved in all facets of the property industry, we believe we are in an excellent position to assist our clients in administering property in a highly effective, efficient and profitable manner. An investor or property owner can therefore maximise their efforts on strategic management of their assets without the interference of day-to-day property management.

We believe information technology is an essential component of successful property asset management. MPS aspires to be the largest independent property management group in Southern Africa providing an integrated service across the residential, commercial, industrial and retail property markets.

We strive to add value to our clients, through our experience and aggressive pursuit of service excellence. t: +27 (0)11 267 8000 / +27 (86) 166 8736

[email protected] www.mps.co.za

Business Philosophy“How we deliver our professional property services is

what makes us different”

“MPS challenges convention and we position

ourselves to provide optimal returns. We drive

innovation to enhance your value proposition and

manage your asset value proposition for profitability”

Carmen Collison – Managing DirectorCarmen has a strong finance and property background. She holds both a BCom Accounting degree from the

University of the Western Cape and a BCompt honours from RAU.Carmen has experience across sectors ranging from fund management to private equity with blue chip companies

including BOE Investment Administrators, Nedcor Investment Bank and Coronation Fund Managers. She made a career shift from finance to property in 2003. Her passion for this sector was ignited with JHI whilst

managing the PIC portfolio and thereafter, co-founded a property management business as COO for five years with assets under management of R1.5-billion. Most recently she established and further sat at the helm of Billion Property Services, which managed the listed assets of Rebosis Property Fund.

Carmen is driven by passion and the pursuit of excellence to service in an industry which requires focussed transformation.


in profile

9

Zinhle NtanziAssistant Manager: Property

Regional Airports

Zinhle Ntanzi was born and raised in KwaZulu-Natal. She completed her BSc Property Development degree at the University of KwaZulu-Natal in 2009, whereafter she joined ACSA in the property department at the then Durban International Airport. She was involved in the relocation of the Durban International Airport to King Shaka International Airport, playing the role of Workstream Leader for Airport Relocation and Transfer, which involved the logistics and risk planning for staff stakeholders, furniture, fittings and equipment relocation. She was also involved on the property side in ensuring that tenant areas were ready for occupation prior to the commencement of operations on 1 May 2010.

She was appointed Assistant Manager: Property for regional airports in 2013, and is responsible now for property asset management and property development. She has since been involved in the successful completion of milestone development projects, one being the completion of a 20ha solar PV panel development at Upington International Airport. The most recent was the conclusion of a development deal for the development of a private hospital facility at Bram Fischer International Airport. The facility is envisaged to be operational in the first quarter of 2016.

“Growing a property asset portfolio in the smaller regions of the company has proven to be a difficult but not impossible task,” she says. “The airport environment is particularly challenging, especially with the economic cycles we experience, as we are trying to play in the space of our non-core business. My responsibility is to ensure that we play in that space effectively. The reward is to see a completed and fully operational development!”

She currently resides in Port Elizabeth.

Alinee PadayacheeManager: Property Asset Management

King Shaka International Airport

Alinee Padayachee graduated with a BProc and LLB degree from the University of KwaZulu-Natal. She is also a Qualified Attorney of the High Court of South Africa as well as a qualified solicitor of England and Wales. She practised commercial law in South Africa, and has worked in the UK for a number of years in insolvency law.

On her return to South Africa, she joined ACSA and worked in the legal and procurement department before moving to the commercial property division, which she considers a “very dynamic, energetic and exciting environment to work in.”

“The property sector is still male-dominated but it is good to see more women, albeit at a slow pace, joining the sector,” she says. “I’m proud to say that ACSA has a strong focus on woman empowerment. Within our organisation there are females in key positions throughout the country, who are responsible for property asset management and property development. ACSA is a forward-thinking organisation that recognises the value and diverse skills that women bring to a business environment.

“Airports are major generators of direct and indirect employment and business opportunities, providing the core of development nodes. It is appropriate at this stage to say that ACSA has identified more than 1 000ha of remote land around its nine airports, which is not required for aviation related activities and which is now ear marked for development. The land is highly suitable for commercial development as it is well- located, well connected, flat and secure, and it is partially serviced or has bulk services available in close proximity. To this end, we are really looking forward to developing the land. This opportunity poses much excitement.”

Felicia SaoManager: Property Development

OR Tambo International Airport

Felicia Sao is a professional architect registered with the South African Council of Architectural Professions. She is a member of the Royal Institute of Chartered Surveyors, qualifying in commercial property practice.Sao graduated from the School of Architecture at NMMU with BBldg Arts and MArch (Prof) degrees. She furthered her studies and acquired an MSc in Building (Property Development and Management) from Wits. She attributes her career success to her days as an architect, when she gained immeasurable experience in architectural services, urban planning and project management.

Her work experience in 2002 as an architect for the then MMA Architects is where she gained insights into the world of construction and property development. She decided then that the property development space would be more lucrative than the architectural space. She gained the position of Manager: Property Development at OR Tambo International Airport, where she is responsible for the optimisation of the non-aeronautical new investment property portfolio to drive sustainable value creation and annuity income for ACSA’s stakeholders by value creation from state-owned development land, value enhancement for ACSA’s balance sheet and enhancing income generation recognising regulatory constraints.

Sao is responsible for the management of a team of consultants appointed to validate a vision hypothesis for a mixed-use commercial precinct in extend of 150 000m² (minimum) to be constructed in front of the terminal buildings in the Western Precinct at OR Tambo International Airport. She acknowledges that, as a woman in the construction industry, her challenges are diverse – but views them as building stones to greater heights.

t: +27 (0)41 507 7448 / +27 (0)82 450 [email protected]

www.airports.co.za


www.airports.co.za

2014THE ECONOMIC IMPACT

of the

COMMERCIAL REAL ESTATE SECTOR

on the

SOUTH AFRICAN ECONOMY

THE ECONOMIC IM

PACT of the COMM

ERCIAL REAL ESTATE SECTOR on the SOUTH AFRICAN ECONOMY

2014/06/02 10:43 AM

THE ECONOMIC VALUE of the COMMERCIAL PRIVATE PROPERTY SECTOR

MARCH & APRIL 2014

SAPOA - the voice of commercial property

1

THE ROLE AND IMPACT of the

COMMERCIAL PROPERTY SECTORTHE ECONOMIC VALUE

of the

COMMERCIAL PRIVATE PROPERTY SECTORAPPLICATION PROCESSING REPORT

WESTERN CAPE 2014

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2014/06/06 10:40 AM

To read these reports visit ou

r web

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2014/04/25 2:13 PM

Contact Jane on e-mail, [email protected]



12

OVERALL WINNER OVERALL

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p. 12-19.indd 12

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SAPOA publications.indd 18 2014/07/18 5:45 PMIn Profile p.14.indd 9 2014/07/22 11:23 AM

3087_SAPOA_Courses_AD_18_11_2013_print.indd 1Untitled-1 2 2014/07/21 5:16 PM

2013/11/19 1:43 PMUntitled-1 3 2014/07/21 5:16 PM


in profile

Zinhle NtanziAssistant Manager: Property

Regional Airports

Zinhle Ntanzi was born and raised in KwaZulu-Natal. She completed her BSc Property Development degree at the University of KwaZulu-Natal in 2009, whereafter she joined ACSA in the property department at the then Durban International Airport. She was involved in the relocation of the Durban International Airport to King Shaka International Airport, playing the role of Workstream Leader for Airport Relocation and Transfer, which involved the logistics and risk planning for staff stakeholders, furniture, fittings and equipment relocation. She was also involved on the property side in ensuring that tenant areas were ready for occupation prior to the commencement of operations on 1 May 2010.

She was appointed Assistant Manager: Property for regional airports in 2013, and is responsible now for property asset management and property development. She has since been involved in the successful completion of milestone development projects, one being the completion of a 20ha solar PV panel development at Upington International Airport. The most recent was the conclusion of a development deal for the development of a private hospital facility at Bram Fischer International Airport. The facility is envisaged to be operational in the first quarter of 2016.

“Growing a property asset portfolio in the smaller regions of the company has proven to be a difficult but not impossible task,” she says. “The airport environment is particularly challenging, especially with the economic cycles we experience, as we are trying to play in the space of our non-core business. My responsibility is to ensure that we play in that space effectively. The reward is to see a completed and fully operational development!”

She currently resides in Port Elizabeth.

Alinee PadayacheeManager: Property Asset Management

King Shaka International Airport

Alinee Padayachee graduated with a BProc and LLB degree from the University of KwaZulu-Natal. She is also a Qualified Attorney of the High Court of South Africa as well as a qualified solicitor of England and Wales. She practised commercial law in South Africa, and has worked in the UK for a number of years in insolvency law.

On her return to South Africa, she joined ACSA and worked in the legal and procurement department before moving to the commercial property division, which she considers a “very dynamic, energetic and exciting environment to work in.”

“The property sector is still male-dominated but it is good to see more women, albeit at a slow pace, joining the sector,” she says. “I’m proud to say that ACSA has a strong focus on woman empowerment. Within our organisation there are females in key positions throughout the country, who are responsible for property asset management and property development. ACSA is a forward-thinking organisation that recognises the value and diverse skills that women bring to a business environment.

“Airports are major generators of direct and indirect employment and business opportunities, providing the core of development nodes. It is appropriate at this stage to say that ACSA has identified more than 1 000ha of remote land around its nine airports, which is not required for aviation related activities and which is now ear marked for development. The land is highly suitable for commercial development as it is well- located, well connected, flat and secure, and it is partially serviced or has bulk services available in close proximity. To this end, we are really looking forward to developing the land. This opportunity poses much excitement.”

Felicia SaoManager: Property Development

OR Tambo International Airport

Felicia Sao is a professional architect registered with the South African Council of Architectural Professions. She is a member of the Royal Institute of Chartered Surveyors, qualifying in commercial property practice.Sao graduated from the School of Architecture at NMMU with BBldg Arts and MArch (Prof) degrees. She furthered her studies and acquired an MSc in Building (Property Development and Management) from Wits. She attributes her career success to her days as an architect, when she gained immeasurable experience in architectural services, urban planning and project management.

Her work experience in 2002 as an architect for the then MMA Architects is where she gained insights into the world of construction and property development. She decided then that the property development space would be more lucrative than the architectural space. She gained the position of Manager: Property Development at OR Tambo International Airport, where she is responsible for the optimisation of the non-aeronautical new investment property portfolio to drive sustainable value creation and annuity income for ACSA’s stakeholders by value creation from state-owned development land, value enhancement for ACSA’s balance sheet and enhancing income generation recognising regulatory constraints.

Sao is responsible for the management of a team of consultants appointed to validate a vision hypothesis for a mixed-use commercial precinct in extend of 150 000m² (minimum) to be constructed in front of the terminal buildings in the Western Precinct at OR Tambo International Airport. She acknowledges that, as a woman in the construction industry, her challenges are diverse – but views them as building stones to greater heights.


www.airports.co.za


www.airports.co.za


In Profile p.14.indd 14 2014/07/21 5:17 PM


in profi le

15

Laurel Young qualifi ed as an interior designer in 1980 and went on to complete her degree to become a QS. She left Natal in 1984 to work in Johannesburg for Vadek Paints, supplying paint to the Fourways Hotel. She then met with a company that carried out revamps and alterations, and stayed with it for more than 10 years, getting training and eventually becoming a partner. In 1995 she left the company on good terms and struck out on her own to successfully start one of the top alteration and renovation companies in South Africa.

Rachel Arends has a business degree and completed a BCom in 1981. She worked for a glass- manufacturing company for more than six years, eventually buy it and becoming one of the few successful BWO manufacturers of glass and aluminium shopfronts and stack doors. She’s been carrying out successful new installations for the corporate market for more than 25 years.

t: +27 (0)11 943 2900 f: +27 (0)11 943 2912

[email protected]

Young and Arends met at a workshop in 1995 and decided to join forces to become one of the largest BWO manufacturers in South Africa. It took a lot of hard work and dedication from both ladies. It was not always easy to win tenders or get accredited by the corporate companies – but they held their own, and today have a very successful client base.

Today both women are equally successful and own a company called ASSOCIATED ALTERATIONS. They carry out extensive alteration work and new fi t-outs for Absa, Standard Bank, FNB, Eskom, T Systems and several other entities in the corporate fi eld. Arends runs the manufacturing factory, the infrastructure and the new Cape Town and Durban offi ces, while Young takes care of the marketing, the BOQ department and the design department.

1 T Systems: the innovation hub, completed May 20142 FNB Cape Town, completed 20133 T Systems: the innovation hub4 Standard Bank Alice Lane, completed 2013

Laurel Young, Director and Rachel Arends, Director 1

2

3

4

Associated Alterations_subbed.indd 15 2014/07/22 11:28 AM


in profile

Lucile LouwManaging Director

Atterbury Asset Managers (AAM)

In 2014, Atterbury is celebrating 20 years in the property development, investment and asset management sector.

Lucille Louw never planned on being in the property industry. She joined the then small team of Atterbury in 2000. She started as a sales broker and went on to become the Managing Director of Atterbury Asset Management.

Lucille heads up Atterbury’s local and international asset management divisions. The South African assets of R17 billion include those of Atterbury, Abacus and Wingspan. Highlights in Lucille’s career include the Ditsela Place that she handled from start to finish. Other memorable projects include, Woodland Boulevard, Phase 1 and 2, the first regional mall developed by Atterbury as well as Bagatelle: Mall of Mauritius. It has been an amazing journey since 2000 to grow with the company.

Atterbury invests in its people and creates an environment for success, regardless of gender, age or education. Lucille believes the company’s share scheme for employees is one of the reasons why the people take pride in their company. Lucille ascribes her success to her mentor of 14 years, Group CEO Louis van der Watt – “I have been very fortunate to have joined the company when we were still in our infance shoes and I learned the ropes by watching and working very closely with Louis.”

“Being a female in the industry has never affected me and I believe this is due to the fact that I work for a company that believes in its people, women in particular.”

t: +27 (0) 11 706 1176 / +27 (0)12 471 [email protected]

www.atterbury.co.za

Lisa Crossley Director

Auction Exchange (Pty) Ltd/Commercial Exchange

Lisa Crossley has a BSc (Operations Research). She has extensive experience in marketing and product development, and worked in product research and development as well marketing management for Europe Assistance before moving into the long-term financial services industry in 2003 as a broker, where she obtained a grounding in financial markets through her training with investment products.

In 2006, she was appointed to the Product Forum of Nedbank Financial Planning (a team responsible for undertaking a due diligence investigation, selection and approval of all investment products for the business), where she gained an orientation for compliance and technical detail. She left financial services and shifted into property in early 2009. In 2012, after being approached by a leading property entrepreneur, she became a founding shareholder and Director at Auction Exchange/Commercial Exchange.

Crossley is pedantic about the financial and compliance aspects of the business, is diligent, and her networking has created many opportunities for the company. Her approach to every sale or purchase is precise and well researched. She is very fair in her approach to any situation and has a natural ability to deal with a multitude of situations.

She has managed to balance all aspects of her life successfully, and her discipline is admired.

She is a sporty person and is busy training for her first marathon, which reflects her persistence to succeed and accomplish new heights.

Her energy is evident in all her dealings with buyers and sellers, and her passion for integrity is always respected.


www.commercialexchange.co.za

Michele Antelme Director

Auction Exchange (Pty) Ltd/Commercial Exchange

After spending 17 years in advertising and marketing (including in London and Paris) and an additional five years running her own insurance business for McDonald’s South Africa, Michele Antelme joined Pam Golding in 2005, which ignited her love for the property business.

It was during her experience in the fast-paced auction business that her passion for commercial property grew, and in 2012 she became a founding shareholder and Director at Auction Exchange/Commercial Exchange. Her primary focus was to introduce a new entity into an established but ever-changing environment.

She is an absolute perfectionist when it comes to every aspect of business. Her dedication to innovation and service delivery has been acknowledged by many client testimonials. Being multicultural and multilingual, she can interact with a variety of people. Her global experience has given her a different perspective and enabled her to shift boundaries and challenge industry norms.

She is currently renovating her own recently purchased home, a job that she is undertaking with the same passion and enthusiasm she gives to the business every day.

Her strong approach is all about doing what’s best for the clients and the business. Her and Lisa Crossley’s dedication, passion and real property pedigree makes them a formidable team. With a small, multi-skilled team of people passionate about doing what is best for the clients, the company is destined for success. Commercial Exchange is proud to be a part of the highly reputable multi-billion rand Bothongo Group of Companies.

t: +27 (0)83 253 [email protected]

www.commercialexchange.co.za



in profile

17

How does Eketsa achieve this amazing promise? “Synergy!” says Bronwyn Di Terlizzi, Director of Design at Eketsa, which was formed as a turnkey interior-architecture firm in Randburg in 2012. “We have taken a diverse set of skilled people and are complementing each other’s work, creating a unique synergy that gives our clients better results.”

Di Terlizzi has more than 12 years of experience in interior design, and an honours degree in interior design from Greenside Design Centre (validated by Nottingham Trent University in the UK). Her ability to combine some really creative thinking with a very professional and business-like approach is a bit like having a head in the clouds but still screwed on tightly!


www.eketsa.co.za

On spec, on budget, on time – every time!Di Terlizzi (pictured above right) is “complemented”

by Director of Procurement Helene Muller. “Helene is our magician – she sources the impossible and the wonderful,” she says. Muller has more than eight years of experience in various design fields on top of a higher diploma in interior design from Design Time School of Interior Design in Cape Town.

Neither of the two women are fazed by the challenges that women face in the industry. “We believe it is far better to work with men than try to compete against them,” says Muller. “We each have unique skills that should be harnessed together, which always produces a better result than butting heads.” Such is their conviction that their third partner, Vusi Mahlaba – Director of Project

Implementation – provides the male counterpoint for a triumvirate that is powerful in its diversity. More than eight years of experience in the construction and interior design fields (including project management) has developed an energetic, can-do attitude that allows Mahlaba to surmount any installation challenges.

Using the triple skills set in unison from the start of every project, Eketsa is able to ensure that all bases are covered for each step of the interior development process. Meaning snags are identified early and solved before they become problems. The trio’s skills are clear in a recent project completed for Agis Investments, an international investment firm that moved into new office space in Sandton this year. The estimated seven-week interior outfitting job was completed within just four weeks, with Eketsa working all hours to get the job done and sorting out snags early to avoid costly delays. Fellow private equity firm, One Thousand and One Voices, got the special Eketsa treatment when it opened up its new offices in the very same building. Eketsa worked effectively with the premises leasing company and concurrently with ongoing construction to deliver an engaging interior result, in record time, that the clients are extremely proud of. “We know that by working effectively together, we can realise our promise to clients: on spec, on budget, on time – every time!” says Di Terlizzi.

Eketsa_subbed.indd 17 2014/07/21 5:22 PM


in profile

Ilse du PlessisSenior Interior Designer

D12 Interiors

Born and raised in Pretoria, Ilse du Plessis has been in the industry for seven years. She finished her studies in interior design at Tshwane University of Technology, and went straight to work at Wilson Associates, focusing on hospitality design.

“After working for different companies I found my home at D12,” she says, adding that D12 Interiors has made its mark in commercial, residential and leisure design, and has an exciting and bright future ahead, delivering world-class results. “The best is yet to come!”

D12 was founded in 1999 and has, since then, grown tremendously in knowledge and creativity. “We have a young and vibrant team that is committed to creating incisive solutions,” she says. The team uses the latest 3D design technology to bring best-practice creative solutions to clients’ complex requirements. “We also coordinate all services using our 3D technology in order to achieve the most practical results.” With strong skills in commercial, hospitality and residential design, this team looks forward to a dynamic future in contemporary project design.

She says she always has one quote in the back of her mind: “We are what we repeatedly do. Excellence then is not an act, but a habit.” D12 Interiors is passionate about each and every client, and strives to create cutting-edge designs. “Client satisfaction is our greatest reward,” says Du Plessis.

D12 has had the privilege of being involved in many fantastic projects, and Du Plessis believes no project should be singled out as being the most exciting.“Every project and client is different and has its challenges,” she says. “I embrace these challenges; this is how excellent designs are born.”

t: +27 (0)11 807 7505 / f: +27 (0)11 807 [email protected]

www.amagroup.co.za

Brigitte de BruynFinancial Director

Dipula Income Fund Limited

Brigitte de Bruyn is a chartered accountant who completed her articles at Deloitte, one of the largest global accountancy firms. Thereafter, she joined Deloitte SSG, where she was seconded to various companies in roles ranging from Financial Manager to Acting CFO. This resulted in her working in Zurich, Switzerland, which allowed her to combine her passion for travel with a stimulating and fulfilling job.

After returning to South Africa, she joined Grapnel Property Group as Financial Director. She never initially intended to join the property sector but became interested in it because her sister was Financial Director of ApexHi Properties Limited at the time, and the opportunity arose to join a young asset management and property company. In 2006, she was involved with the listing of Hospitality Property Fund, the first ever specialised property fund, which not only gave her a solid grounding in the property sector, but also in the regulatory framework and corporate governance surrounding listed companies.

The valuable experience gained at Grapnel Property Group helped when De Bruyn joined the soon-to-be-listed Dipula Income Fund in 2011. Dipula listed on 17 August 2011; at that stage, it was the second BEE property fund to list on the JSE. She cites playing an integral role in the oversubscribed capital raising, which led to the successful listing, as one of highlights of her corporate career.

Brigitte is a strong believer in work-life balance, and enjoys spending most of her downtime with her partner and their two-year-old son. She loves travelling, keeps fit and is an amateur oenophile. She maintains that she’s never been held back in business by being a woman, but believes that, as Roseanne Barr said, “The thing women have yet to learn is nobody gives you power. You just take it.”

t: +27 (0)11 325 2112 / +27 (0)82 900 3936 [email protected]

www.dipula.co.za

Fundi MazibukoDirector: Customer Relationship Management and

Business Development, Excellerate Property Services

Young, dynamic and part of the changing face of the property industry, Fundi Mazibuko brings a combination of operational and strategic experience to her role as Director of Customer Relationship Management and Business Development at Excellerate Property Services.

“We pride ourselves on our ability to strengthen client relationships,” she says. “What sets us apart is the fact that we offer not only property management, but also a broad variety of cost-effective services for landlords.”

Her work experience includes holding former positions as Executive Strategic Support of the Chief Operating Officer at the City of Joburg Property Company, Portfolio Manager for Mdantsane City in the Eastern Cape, Westgate Shopping Centre in Johannesburg and Ikeja Mall in Lagos, Nigeria, as well as a successful career as an HR practitioner with her own recruitment company, specialising in the property sector.

A former Women’s Property Network Gauteng Chair, Mazibuko was recently appointed a trustee for the Seed Trust, which is a 25% shareholder of Excellerate Property Services.

“I have been privileged to have run a business, and worked in both the public and private sector, gaining experience that has taught me invaluable lessons that cannot be learnt in any classroom,” she says. “The property industry has always been male-dominated, and as a result women have struggled to break through the ranks. It is our responsibility as women in senior positions to advocate for woman empowerment in our respective companies.”

In her spare time, Mazibuko admits to being a “typical girlie girl”. “I like to pamper myself – nothing beats a day in the spa,” she says.

t: +27 (0) 11 911 8000 f: +27 (0)86 683 [email protected]

www.epsgroup.co.za



in profile

19

Throughout our proud 70-year history, Grosskopff Lombart Huyberechts and Associates Architects (GLH) has been commissioned to design a wide range of projects varying in scale and function, giving our practice extensive experience. Our love of architecture has driven our aim to maintain excellence in design innovation through the creation of exciting, timeless buildings. GLH’s commitment to – and belief in – environmental sustainability has resulted in our being recognised as leaders in corporate and sustainable architecture.

With the support of our clients, we have been able to develop innovative solutions to the environmental challenges in South African architecture, and have successfully achieved Green Star ratings on several of our projects. There is a strong component of female leadership within our company. Briget Grosskopff, Louise O’Raw and Naina Jivan are three members who form an important part of the energetic team that heads up GLH. Supported by associates and staff, of which 45% are women, our hands-on approach to projects and experience in our field has become an important part of the service the company provides.

Grosskopff is a Wits University graduate with degrees in fine arts and architecture, and has been a member of the practice for 25 years. “We have been fortunate to be part of a generation of women empowered by our education and our experience, and able to contribute to a traditionally masculine industry,” she says. “The challenges we face are in expanding our own horizons.” Some of Grosskopff’s most memorable projects are linked to her love of the arts. Upgrades to the Market Theatre in Newtown, the construction of the African Ballet Theatre, the Standard Bank Global Leadership Centre and Absa Towers West in the Johannesburg CBD are among the projects she has completed. “The upgrade of the Market Theatre provided me with the chance to work on a project that was originally completed by GLH in 1975,” she says. “We needed to be sensitive to the


www.glh.co.za

way in which work in a heritage building needs to take place. It was a privilege to work in a building that played an important role in local arts and culture.”

Louise O’Raw completed her studies in architecture at the Technikon Witwatersrand in 1991, where she achieved the Best Student award. GLH provided outstanding opportunities to build her career. She has been with the practice ever since and became a member in 2004. “As a woman in the construction sector, I have fought hard to cement my own path, and strive to put professionalism and excellence in service delivery above the day-to-day obstacles,” she says. “I believe my practical outlook has been a key success factor, together with the support and encouragement offered by GLH.”

In 1998, O’Raw was appointed as project architect for the Vodacom Campus in Midrand, which expanded to 130 000m² over 12 years. This was the first of several head office projects she headed up for various corporate clients, including Tiger Brands, Microsoft and Hollard.

“In the past 10 years my motivation has been to make a difference in the built environment through sustainable design and lasting architecture,” she says. “My proudest accomplishment and most recently completed project is 30 Baker Street, Rosebank, for Standard Bank of South Africa – a world-class innovative building, setting new standards in office design. The building was awarded a 5-Star Green Star rating in 2013.”

Naina Jivan joined GLH in 2007 after graduating from Wits with a master’s degree in architecture, and became a member in 2011. “I have been privileged to have the guidance and mentorship in my early career and to work on prestigious projects within GLH,” she says. “I’ve been the project architect on many different and exciting buildings, including offices, residential, hotels, data centres, shopping centres and innovation centres, giving me valuable experience to draw from.

My favourite projects include the refurbishment of The Firs in Rosebank, which was part of the rejuvenation taking place in the suburb; Global House, a bespoke office building in Rosebank; and Vodafone’s Site Solutions Innovation Centre in Midrand, the first 6-Star Green Star design rated building in the southern hemisphere.”

By being exposed to all aspects of the construction process, the women at GLH continue to grow by developing our individual strengths and creating our own opportunities.

The leading ladies at GLH Briget Grosskopff, Member Louise O’Raw, Member

Naina Jivan, Member

GLH_subbed.indd 19 2014/07/22 11:30 AM


in profi le

Lisa ToniniDirector and Head of Conveyancing Department

Fluxmans Inc.

Lisa graduated from the University of the Witwatersrand in 1984 having completed a BA (Legal) and an LLB. She commenced articles with Kallmeyer and Strime, where she became a Partner of the fi rm and in 1993 took over the running of their conveyancing department. In 2003 the fi rm merged with Fluxmans Inc.

Accordingly she have been involved in property related work for the last 21 years, and have developed a passion for this type of work. “I especially enjoy challenge of more complicated conveyancing and property related issues. I have also been fortunate to be involved from inception with exciting projects like the Melrose Arch development ( from the town planning phase right through to the sectionalisation the fi rst residential units); inner city rejuvenation projects, The Innovation

Hub ( South Africa’s fi rst Science Park), numerous township, cluster and sectional title unit developments as well as high value commercial transactions.”

Her work entails the provision of services to clients in the acquisition and disposal of property as well as the procurement of land use rights associated therewith. In addition she attend to the registration of mortgage and notarial bonds for and on behalf of a number of prominent institutions and fi nance houses.

“My department consists of 6 staff members who are all committed to providing a service specially suited to each clients needs and requirements.”

t: +27 (0) 11 328 1828ltonini@fl uxmans.com

www.� uxmans.com

Fatima RodriguesDirector

Fluxmans Inc.

Fatima is a property lawyer specialising in commercial property law, her day-to-day work touches on all aspects of the development of commercial and industrial property.

Now in her tenth year with Fluxmans: “It’s a lot of fun…there isn’t a week that I come into the offi ce, when I haven’t learnt something new. What I do is very solutions-based….my task is to lawfully create a solution that will bring in the cash faster.”

Rodrigues started off as a candidate attorney (previously articled clerks) for a local law fi rm and for the fi rst decade of her career was involved in commercial stock exchange work. Later came the opportunity to become involved in the property arena.

“For me it was very exciting, as a commercial lawyer dealing with businesses where it all happens on paper –such as dealing with equities, shares and shares transactions – you never actually see things go up on the ground. So getting involved in property was very rewarding, not only in drafting the contracts and sorting out the legal issues and coming up with solutions, but to actually walk into a shopping centre and see a building whose development I had been involved in.”

She has also been involved in the recruitment of young lawyers for almost 25 years. “In our 2011 intake, seven out of the seven slots were fi lled by women. We did not set out with that in mind - it just so happened that the people we interviewed, whom we considered to be the best, were women. It refl ects the amazing calibre of the women students being produced today.”

t: +27 (0) 11 328 1818frodrigues@fl uxmans.comwww.� uxmans.com

Kim FaclierManaging Director: Property (Africa)

GoIndustry DoveBid South Africa (Pty) Ltd

Kim Faclier brings more than 20 years of experience in real estate across the commercial, residential, industrial and auction sector. A multiple award-winner and recognised internationally, in 2011 she received the prestigious 5 Star Women in Property Network Award recognising ethics, integrity and empowerment as well as specialist knowledge and innovative thinking across the broad spectrum of the South African property market. In 2012, she won the Property Category Award for South Africa’s Most Infl uential Women in Business and Government (MiW), orchestrated by CEO magazine. The annual awards recognise inspirational women achievers who are working for the benefi t of South Africa and its future generations. In 2013, her experience and reputation in the property industry also saw her invited to judge the World Auction Championships held in the US.

She is the Managing Director: Property for GoIndustry DoveBid South Africa (Pty) Ltd and the African representative of GoIndustry DoveBid Plc, part of global giant Liquidity Services Inc, listed on NASDAQ. With more than 40 offi ces in 26 countries, Go-Dove specialises in selling properties online, live auctions, private treaty sales and valuations. Under her dynamic leadership, Go-Dove recently concluded a series of record-breaking live and online auctions for parastatal Telkom, selling more than R130-million in total, with 100% success for all the live auctions held around South Africa.

She lives in Cape Town. She’s passionate about her family, especially her three nephews Eden, Leo and Adam, and niece Lily – the loves of her life. People and travel are her other passions, and experiencing different countries and cultures through the eye of her camera lens is unquestionably a highlight.


www.go-dove.com www.liquidityservicesinc.com



in profile

21

Grant Thornton employs 963 people across its offices and prides itself on having 31% women in top decision-making positions – significantly higher than the South African country average of 26%. The firm’s specialist property team comprises five senior ladies, in addition to others moving up through the ranks. Together, these women represent a diverse range of skills across the firm’s audit and advisory services, and represent a formidable force in a traditionally male-dominated sector. They are all passionate about the work they do and feel that being part of a team of brilliant women has helped them succeed in their career ambitions.

According to the firm’s International Business Report (IBR) survey on Women in Business, the proportion of South African businesses with women in senior roles has remained generally static over the past two years, hovering between 26% and 28%. In contrast, 21% of local businesses have no women at all in senior management positions.

Globally, IBR reports varying and diverse attitudes towards women in senior business roles, with the average proportion of women holding senior business roles in 2014 remaining steady at 24%, identical to the results in 2013, 2009 and 2007.

BRIC countries boasted a four percent increase in the number of women in senior positions, from 28% in 2013 to 32% this year. And despite much talk in Europe about getting more women into the boardroom, the EU has only 23% of senior positions filled by women, marginally more than the US with 22%,

In South Africa, 15% of boards include women, and IBR reveals that 11% of those South African businesses with at least one woman in senior management have a female CEO, slightly up from 10% in 2013. A total of 34% have female human-resources directors, and the same percentage have female chief


www.gt.co.za

financial officers, up from 32% and 27% respectively in 2013. Twenty-nine percent of South African businesses have specific plans to hire or promote more women into senior management over the next 12 months.

Throughout the organisation, Grant Thornton has a strong ethic towards the promotion of women, and has developed the Women’s International Leadership Link, a programme to support and mentor its women. Globally, just one in 10 businesses has a similar programme; in South Africa, only two out of 10. Perhaps this is something business leaders should consider if they want to benefit from the improved decision-making that gender diversity can bring.

54

321

1 Lee-Anne Bac, Director and National Head of Property and Construction Sectors 2 Vanessa de Villiers, Partner 3 Phillipa Symington, Partner 4 Christel Pretorius, Partner 5 Anabel Viera, Partner

Grant Thornton_subbed.indd 21 2014/07/21 5:34 PM


in profi le

Kate Wolfaardt Managing Director

Interpark (South Africa) (Pty) Ltd

Joining Interpark in 1999 from a career in civil engineering, Kate Wolfaardt was drawn by the opportunity to work in a commercial, dynamic and people-focused environment while still using her professional technical skills.

“Operating for more than 40 years, we provide parking services to more than 20-million vehicles a month throughout South Africa, providing employment to more than 2 500 people,” she says. “Since 1999, we have also operated outside the country, and a further notable milestone was reached with the recent development of centralised control capability – a technology fi rst for the South African parking market.”

She believes the company’s competitive advantage lies in the strength of its technology and its people, which affords it an exceptional ability to be agile, innovative and creative, ensuring ongoing growth and expansion of the business. “We have a passion for service delivery at the car parks we manage, while maximising the return on investment of the parking assets on behalf of the owners,” she says.

Asked whether she had faced any challenges as a result of being female in the industry, Wolfaardt says she came into the industry with a tough skin for gender issues from her early career years in civil engineering. “Throughout my parking career, I’ve been fortunate to work with mentors, colleagues and bosses that have been truly ‘gender-blind’ and focussed on merit,” she says, adding that one of the company’s many achievements is the launch of Interpark’s 12D training academy, which facilitates the career development of employees.

Sanett UysManaging Director

Excellerate Valuations and Advisory Services

Sanett Uys’s property career started in 1997 when she applied for a survey administrator position at Rode and Associates. She worked her way up to the position of survey manager and the editor of Rode’s Retail report. Since 2002, she has joined various national property management companies and gained considerable experience in research, operations and marketing, broadening her horizons before joining JHI Properties and Excellerate Property Services group in 2013.

“While Excellerate Valuations and Advisory Services is still a young company, we have traded well since inception and expanded our client base and service offering, including the use of the latest technology,” she says. “We go the extra mile for all our clients, who know we will do everything in our power to provide them with the information they need in order to make an informed decision.”

On a personal note, she says being chair of the Women’s Property Network is one of her most rewarding achievements, and she’s enjoyed helping to build a network for women in the commercial and retail property industry. “Our work for the Education Trust and money raised in recent years has enabled us to award more than 25 bursaries,” she says.

Managing to fi nd the time to run six half-marathons this year, and still enjoy quality family time with her husband and children, Uys attributes her success in business to being true to herself and prepared for any meeting. “I have found that being honest with clients is the key,” she says. “Ask questions if you don’t understand – and work hard.”

Ronel SwanepoelDirector: Financial & Operations

Neo Trend Property Developers

Ronel Swanepoel’s experience in the fi nancial banking sector provided an invaluable background when she decided to make a career move to the property consulting and development fi eld 16 years ago by joining the Neo Trend group. In 2009, she was appointed as Financial Director. In addition, she also manages the real estate portfolio and holds the position of Offi ce Manager, specialising in corporate fi nance, statutory governance and property management with a focus on sectional title.

Neo Trend Property Developers was established in 1997. In 2002, a new company was formed, paving the way for new growth. The company expanded into real estate, with particular focus on sectional title, retail and commercial management.

To comply with new legislation, Swanepoel completed the NQF 5 qualifi cation and is a registered Master Practitioner Real Estate. Her main challenge was defi ning her own place within the company in order to make a valuable contribution. “As a young company, Neo Trend focused on new business, deal structuring and execution of developments,” she says. “It became apparent that an entrepreneurial business entity requires dedicated, effi cient systems, corporate management and statutory administration, which presented an exciting challenge for me. This fi t my natural management and administrative skills, and previous fi nancial experience.”

Defi ning a business system for Neo Trend and creating a self-supporting real estate entity are her proudest achievements. “Ultimate fulfi lment comes from being able to empower people, mobilising a team towards common goals, and creating a working environment of trust, care and respect,” she says.

t: +27 (0)11 879 0200 f: +27 (0)11 879 [email protected]

www.interpark.co.za

t: +27 (0)11 911 8000 f: +27 (0)86 639 [email protected]

www.excellerateadvisoryservices.co.za

t: +27 (0) 87 803 0577 / +27 (0)83 326 [email protected]

www.neotrend.co.za



in profile

23

Sakina Nosarka Asset Manager Triangle Core Fund

Old Mutual Property

Sakina Nosarka is an asset manager on the Triangle Real Estate Core Fund, a Director on the Old Mutual Namibia board and Alternate Director on the Triangle Real Estate India Fund. She holds a BSc (Hons) in Property Studies and is registered with the South African Council for the Property Valuers Profession as a Professional Valuer. She began her property career at Old Mutual Property as a Valuer, then joined Investec Private Bank in the Property Investment Banking division, before rejoining Old Mutual Property.

“I knew choosing to start my career in a predominantly male industry would be tough, but I’ve been lucky enough to have worked with some inspirational female leaders who showed me you can participate at the highest level and have a good work-life balance,” she says. “As a working mom, you experience more demands on your time, energy and resources – but motherhood has grown my compassion and empathy, tools which are invaluable in leading successful teams. My family keeps me grounded and is a constant reminder of things to be grateful for. There’s nothing more personally rewarding to come home to after a challenging day than a bear hug from an energised toddler!”

Old Mutual Property’s ethos of People, Planet and Performance supports balancing the drive to outperform benchmarks with individual wellbeing. The company acknowledges that the contributions of individuals will lead to the success of the numerous projects it has on the go, including the expansion of Menlyn Shopping Centre, Stella Road Office development in Sandton and Portside.

Olive Ndebele Centre Manager: Menlyn Park Shopping Centre

Old Mutual Property

Shopping malls are not just platforms to transact but also opportunities for people to express their uniqueness, desires and aspirations. Shopping malls appreciate the philosophies of economics and psychology!

Now managing one of Africa’s finest shopping centres, Olive Ndebele started her career in property in 1993. Her exposure ranges from managing township shopping centres to involvement with urban centres, and now Menlyn Park Shopping Centre. Her career profile includes banking, hospitality, marketing and retail property management.

She completed a Management Advancement Programme at Wits Business School and a Management Development Programme at the Manchester Business School, and also holds an IMM and various certificates from the South African Council of Shopping Centres.

International exposure with several stints in both the UK and the US has equipped her with extensive knowledge and appreciation of what brands mean to consumers, managing malls, strategic formulation and execution, and the value of innovation (necessary for staying relevant and sustaining growth.

She is passionate about consumer and buyer behaviour, and is a firm believer that retail therapy is one of the most important reasons for nationwide and international GDP growth. She loves working in the “real economy!”

Ina LopionExecutive Director: Asset Management

Vukile Property Fund

Property is as much about people as it is about buildings for Ina Lopion, Executive Director: Asset Management at Vukile Property Fund. Her insight comes from experience gained over more than 20 years in property and six years in life insurance.

With ambitions to become a dietician, she began her BSc studies at Stellenbosch University. Instead, after studying maths and chemistry, she put her knowledge to good use at Sanlam Actuarial after graduation. She returned to business after having children, and was invited by a former Sanlam colleague to join its new division, Sanlam Properties.

Her introduction to the sector was via property valuations. Today, her career in property has come full circle to impact the value of properties with asset management. She believes property is still a man’s world, but that women have made huge progress and are playing an important role in change.

A significant career milestone was when she headed JHI’s human resources for four years. “Early in my career, a boss told me I was great with analytics but should never work with people,” she says. “Had I taken this to heart, I could have inhibited my entire world. Instead, the discovery that I am good with people changed the way I look at my career.”

Seeing people grow is something that inspires her every day. “Vukile has a smaller, tight-knit team with an entrepreneurial culture that empowers its people to push the boundaries and be creative. In this environment, you see your direct impact. Relationships are everything – especially the partnerships with our property managers who ensure our strategies are implemented.”


www.oldmutualproperty.com

t: +27 (0)12 471 0600 [email protected]

www.menlynpark.co.za

t: +27 (0)11 288 1050 / f: +27 (0)86 668 [email protected]



in profile

Jackie van Niekerk has been at the helm of Pivotal Property Fund for just over a year, having been appointed Managing Director in June 2013. She leads the group at an exciting time, with plans for it to list on the JSE main board in the near future as a capital growth fund.

Van Niekerk joined Pivotal Property Fund in 2009 as an asset manager, gaining experience in property management, investment and development in all property sectors.

After completing her BCom Accounting degree at the University of Pretoria, she entered the property industry and today has almost a decade of experience in all aspects of this dynamic sector.

Thirty-something Van Niekerk is one of the youngest (and among only a few) female managing directors in the property industry. At Pivotal Property Fund, she leads a team of 10 – but the fund is linked to a much bigger property group that has a three-decade-long legacy.

Pivotal was born out of the Jo’burg-based Abland group and strategic partner Standard Bank, and has been actively trading as an unlisted fund for the past six years. The fund has a portfolio of 33 properties, located largely in Gauteng, worth almost R5-billion. Included in its prime property assets are stakes in Sandton’s landmark 70 000m² Alice Lane office development and the 76 000m² super-regional Cradlestone Mall in Ruimsig.

Van Niekerk is looking forward to taking Pivotal to another level and to growing the fund through its planned JSE listing. “It’s an incredible honour to be leading Pivotal at this exciting time and to be able to play a part in its development into a listed fund with a growing A-grade portfolio of properties,” she says.

In a heady period with Pivotal’s looming listing, Van Niekerk has also recently become a first-time mother. She believes she is up to the challenge of balancing her corporate responsibilities with those of motherhood and her family.

“The past few months have been a roller- coaster ride with the birth of my baby boy, Wian, and finalising plans for Pivotal’s listing,” she says. “Exciting times indeed for me, on both the home and work front!”

She says her approach to balancing her managing director and family responsibilities was simply to be organised through the discipline of good planning. “With good planning, I have time for both work and family. There are times when either work or family needs to be prioritised – but with good planning balance can be achieved.”

She says that, while the property industry is male-dominated, her peers within Pivotal Property Fund have embraced and always treated her with respect. “We have a great team and work ethic at


www.pivotalfund.co.za

Pivotal and the greater Abcon Group, where we are empowered and have a vibrant work environment,” she says. “It is a pity that there are not more women in the property sector. Women have a lot to offer – we are good listeners, and we work hard.”She says she was destined to be in the property industry, and has always appreciated architecture and great developments.

“It’s an incredible honour to be leading Pivotal at this exciting time, and to be able to play a part in its development into a listed fund with a growing A-grade portfolio of properties”

Jackie van Niekerk, Managing Director at Pivotal Property Fund

Pivotal_subbed.indd 24 2014/07/22 8:56 AM

Michelangelo Towers Mall Maude Street, opposite Sandton Convention Centre (011) 245 4000 www.TowersMall.co.za

Pronovias Wedding Mich mall - advert A4 v4.indd 1 2014/07/22 7:40 AMUntitled-1 1 2014/07/22 9:00 AM

Telephone : (011) 328-1700 | Telefax: (011) 880-2261Web: www.fluxmans.com

ALWAYS AT YOUR SERVICE

What they DON’T teach at law school

Client service is not something they teach at law school, it’s something you develop over time.

As one of South Africa’s leading law firms, Fluxmans has built a reputation for expertise, passion for law and, importantly, service. Whatever your legal requirements, you can be assured that we will support you from the moment you

walk through our doors.

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South African Property Review August 2014

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Transcript of South African Property Review August 2014