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HOMEFRONTBusin ess Day FRIDAY, MAY 6 2016

WORKSPACE AND ART MAKING A MARK

PAGE 2

IS BUYING IN A TRUST STILL SMART?

PAGE 4

MALL OF AFRICA OPENS TO HORDES

PAGE 11

WHY CANADA LURES SOUTH AFRICANS

PAGE 10

Electricity solutions for businessesThe cost of electricity increased significantly in April, creating a red flag for businesses, commercial or industrial owners and landlords. Problem-solving ideas?

CONTINUED ON PAGE 4

WORDS: ANNE SCHAUFFER :: PHOTOS: ISTOCK

LIFESTYLE Friday May 6 2016

The art of work Advertising firm M&C Saatchi Abel applied five principles in their architectural and design brief to fuel creative inspiration in their new Johannesburg officesWORDS: GRAHAM WOOD PHOTOS: SUPPLIED

ESCAPING THE GRIDLOCKM&C Saatchi Abel’s move to Houghton in March this year was a deliberate step away from Johannesburg’s corporate centres, the CBD and Sandton. “We want to escape the gridlock,” says founder and CEO Mike Abel. “We looked for a long time for somewhere slightly off the CBD, but with proximity.”

Their new address facing Oxford Road is relatively central with easy access from the freeway, but is definitely not corporate. Abel talks about Johannesburg’s “treetop city”. And from their fourth-floor rooftop balcony, that’s what you look over — the canopy of the world’s largest man-made urban forest.

The building is designed by Ivan Schlapobersky of M/Architects, and the interiors by Tonic Design. Both in a comfortable version of minimalism, relatively free of frills yet bright, warm and inviting. And following the Saatchi brothers’ example, it’s filled with art, although in this case contemporary South African and African works.

INSPIRATIONAL SPACEThe building was conceived to serve a range of functions. Part of it is practical: to bring together all the company’s divisions — M&C Saatchi Abel, Connect and Africa — under a single roof. The company is six years old, launching in Cape

Town in February 2010, and later that same year in Johannesburg. About three years on, once they had sufficient clients to commit to a space and a sense of their requirements, they began searching for a place to serve as their Johannesburg headquarters.

But the more important function of the building is to be “an inspirational space” for employees and clients. “We want to create an art gallery space to inspire us,” says Jerry Mpufane, group MD in Gauteng.

A primary intention is to attract clients out of their own offices and into Saatchi Abel’s, not an easy task according to Mpufane. “The idea is to inspire them with the company’s vision and ideas as much as to incubate them,” he says.

While the design of the building and its interiors resists shoving branding and achievements down the throats of clients — as Mpufane puts it, you don’t see examples of Saatchi Abel work up on the wall — it is meant to embody a narrative of creativity and inspiration, engagement and ambition. “It is the physical manifestation of all our capability in one space. As I pitch to my clients, this helps me tell that story,” says Mpufane.

ART FIRSTCertainly they want it to do all the things you hope good branding and design will do, like attract talent, clients

“We want a space where you can do amazing things”Mike Abel, founder and CEO, M&C Saatchi Abel

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

EDITORIAL TEAMEditor: Catherine DavisCreative Director: Mark Peddle

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

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

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

LIFESTYLE Friday May 6 2016

Architecture, urban design, project management and site

supervision is what we are all about.

M/Architects was established as an independent fi rm in 2003. In

the early years it was known as Moross & Partners. Our work is

predominantly in the commercial and residential fi elds. We have

designed and constructed close to 200 offi ce buildings in the

Johannesburg area and pioneered the concept of the “offi ce park”.

We have completed China Mall, a 3000m² shopping centre along

Main Reef Road. Our recent projects include a three-storey

offi ce building, SBV House, and the construction of Ipanema

Apartments, on the corner of 11th Avenue and Oxford Road

in Houghton. We’ve successfully received projects through

competitions — a recent project is The Innovation Hub, Africa’s

fi rst accredited science and technology park, at the University of

Pretoria.

Ivan Schlapobersky and John Martins are partners in M/Architects,

assisted by Mary Craig and Mike Hurwitz.

We try to achieve the best possible buildings for our clients,

incorporating innovative design, practical detailing and durability

in the maintenance of a building. We are adept at working within

strict fi nancial constraints. We continually strive to be innovative

in our design. Though we believe buildings should be built to

perform and to last, we do not relinquish proper detailing in our

design solutions.

CONTACT USSuite 7, 5 Fricker Road, Illovo 2196

T +27 11 268 6022, F +27 86 588 9440, email architect@m-architects.co.za

and accolades, and enhance productivity. But Abel says they want the logic of the building to run not from a preconceived brand identity to office design, but in the other direction.

“We went with art and inspiration first,” he says. “Of course we need a structure that is practical, but the concept of art and a gallery is central.”

So, while the black-and-white exterior and no-frills minimalism of the architecture certainly adheres to M&C Saatchi’s dictum of “brutal simplicity of thought” it also makes a good gallery.

“Greg Gamble of Tonic Design has an incredible eye,” says Abel. “He caught onto the idea that we were not furnishing an office. We want a space where you can do amazing things.” The colour palette Gamble chose sensitively and cleverly complements key artworks.

COFFEE SHOP WORKSPACEThe openness and versatility of a gallery space suited certain practicalities. It helped to create a versatile, flexible working space — a carefully conceived combination of chill spots and breakaway areas, hot desks and private meeting rooms.

Very few people in the building are tethered to desktop

“Very few people in the building are tethered to desktop PCs, so they’re mobile. The layout encourages what Mpufane calls a ‘coffee shop style of working’ ”

PCs, so they’re mobile. The layout encourages what Mpufane calls a “coffee shop style of working”.

“There are no rules as to who sits where,” he says. The idea is that “staff and clients come together” and move about spontaneously. Even the public areas offer quiet spots where you can focus and concentrate. The fact that the whole space is filled with art means new and different creative stimuli wherever you might go.

SHOWCASING NEW TALENTAbel has been largely responsible for the selection of art. While there are works by a number of high-profile young artists — the likes of Mohau Modisakeng and Mikhael Subotzky — there are plenty of others he picked up on their first exhibitions, and even at graduation shows.

“I try to identify artists who are young, fresh and vital, and to take a chance on them,” says Abel. He believes the company’s art-first approach can help support emerging artists and nurture talent.

This approach not only adds to the sense of energy and engagement of the art collection, but also turns the building into something of a machine for generating the inspiration that feeds it: new art.

TRUSTS Friday May 6 2016

Trusts: tax haven or hindrance? As the government

tightens tax loopholes that effectively benefit

wealthier South Africans in their contributions towards the national fiscus, experts are divided on the effects new proposals will have on the efficacy of purchasing residential properties in trusts.

The Institute of Estate Agents of SA president Lanice Steward says while a trust was “an excellent vehicle” in which to protect minors if both parents die prematurely, or as the means to prevent the next generation from squandering wealth, trusts can no longer be viewed as tax havens.

Says Steward: “They previously played a huge role in avoiding estate duty and transfer duties on passing property between family members, but the government is tightening up on this and one can expect there will be taxes placed on trusts going forward.”

However, Webber Wentzel director and tax practice specialist Dan Foster believes trusts still play a significant role in keeping properties within families with successive generations benefiting from the assets. And, for discretionary trusts, there is currently no transfer duty due on the properties as each generation dies. Note, a discretionary trust is one in which the number of shares each beneficiary holds are not fixed in the trust deed, but deemed at the trustees’ discretion.

CAPITAL GAINS CLAMPDOWNThe latest salvo in the trusts debate arose after Finance Minister Pravin Gordhan significantly raised the capital gains tax (CGT) rates during his budget presentation in February. BDO SA audit partner Sumesh Somaroo says the CGT inclusion rate for companies is now 80% (up from 66,675%), while for individuals it is 40% (up from 33,34%) and for trusts 80% (up from 66,67%). Companies have a 28% tax rate and trusts 41%, effectively making the respective CGT rates payable at 22,4% and 32,8%. If the gain is attributed to the donor or vested in a beneficiary, an individual tax rate applies.

Properties owned by companies or trusts also do not qualify for the R2m exemption on CGT that applies to individuals who sell their primary residences. Foster says historically the attraction of trusts for property acquisition was the vehicle’s ability to protect the asset, as well as the ease of succession it offered future generations. Given that trusts are perpetual, they also do not attract estate

“They previously played a huge role in avoiding estate duty and transfer duties on passing property between family members, but the government is tightening up on this and one can expect there will be taxes placed on trusts going forward”Lanice Steward, president, The Institute of Estate Agents of SA

duty. Somaroo adds that on death, the primary residence is deemed as sold, triggering CGT and estate duty. By having a house in a trust, beneficiaries save on both these taxes.

Another advantage is that for anyone owning a business and signing personal surety, the primary residence held in trust can be safeguarded from creditors if the business collapses.

Says Foster: “The Davis Tax Committee, the government-appointed entity currently reviewing the country’s tax legislation, aims to limit the ability of trusts to pass gains on to individuals. This effectively means that in the future the 32,8% trust tax rate may apply when properties are sold.”

TRUSTED FUTURE?Steward explains that in light of these proposals, coupled with certain assets now being listed in the estate of the trust’s founder, the question arises about whether or not trusts remain a viable option or the appropriate vehicle for looking after an asset.

“The government budgets to receive R1bn of CGT from ordinary taxpayers and another R1bn from corporate taxpayers in the coming year,” she says.

“In addition to the increase in CGT, estate duty cannot be avoided as it is proposed donations or loans to the trust be included in the estate of the founding member, eliminating the ability to avoid paying taxes on assets passed to the trust.”

Foster says the loans issue has not yet been legislated, but Gordhan’s proposal is for assets acquired by a trust using interest-free loans to be included in the lender’s or donor’s estate. Consequently, the trust will no longer be able to block the estate duty if it acquires assets via interest-free loan accounts from an individual. “The interest forgone on the loan will also be treated as a donation and subject to the 20% donations tax while the donor still lives.”

Looking ahead, Foster believes the future of investing in properties via trusts lies with what changes are made to SA’s donations tax and estate duty laws — and he agrees with Steward that financial decisions should be made in conjunction with tax lawyers and financial advisors.

“Trusts will always provide asset protection and ease of succession. While the tax advantages have been eroded, they can still be used for estate duty planning, taking into account that interest-free loans will result in deemed donations and add back to the estate,” he concludes.

Is buying a home in a trust still the best financial choice

for families? Recent tax developments suggest it isn’t

necessarily the most cost-effective solution

WORDS: NICOLA JENVEY :: PHOTOS: ISTOCK

duty. Somaroo adds that on death, the primary residence is deemed as sold, triggering CGT and estate duty. By having a house in a trust, beneficiaries save on both these taxes.

Another advantage is that for anyone owning a business and signing personal surety, the primary residence held in trust can be safeguarded from creditors if the business collapses.

Says Foster: “The Davis Tax Committee, the government-appointed entity currently reviewing the country’s tax legislation, aims to limit the ability of trusts to pass gains on to individuals. This effectively means that in the future the 32,8% trust tax rate may apply when properties are sold.”

TRUSTED FUTURE?Steward explains that in light of these proposals, coupled with certain assets now being listed in the estate of the trust’s founder, the question arises about whether or not trusts remain a viable option or the appropriate vehicle for looking after an asset.

“The government budgets to receive R1bn of CGT from ordinary taxpayers and another R1bn from corporate taxpayers in the coming year,” she says.

“In addition to the increase in CGT, estate duty cannot be avoided as it is proposed donations or loans to the trust be included in the estate of the founding member, eliminating the ability to avoid paying taxes on assets passed to the trust.”

Foster says the loans issue has not yet been legislated, but Gordhan’s proposal is for assets acquired by a trust using interest-free loans to be included in the lender’s or donor’s estate. Consequently, the trust will no longer be able to block the estate duty if it acquires assets via interest-free loan accounts from an individual. “The interest forgone on the loan will also be treated as a donation and subject to the 20% donations tax while the donor still lives.”

Looking ahead, Foster believes the future of investing in properties via trusts lies with what changes are made to SA’s donations tax and estate duty laws — and he agrees with Steward that financial decisions should be made in conjunction with tax lawyers and financial advisors.

“Trusts will always provide asset protection and ease of succession. While the tax advantages have been eroded, they can still be used for estate duty planning, taking into account that interest-free loans will result in deemed donations and add back to the estate,” he concludes.

ELECTRICITY Friday May 6 2016

Electricity solutions for businesses

Realistically, while business owners’ bottom lines cringe at

the imminent price increase, the fact is, SA’s electricity remains among the cheapest in the world. We’ve come off a low price base, and it’s no longer sustainable. It’s forced South African businesses and commercial landlords to revisit the conversation around energy, renewable energy in particular. For many, the return on investment has been questionable, but if costs escalate as predicted we’ll need a longer-term view.

But before looking at what

CONTINUED FROM PAGE 1

“The first step in an energy audit is to streamline the tariff. We log your profile and price it against all the different rates and tariffs. If we find a cheaper tariff, we switch it and reduce the price. One in four customers saves 20%-30% on their bill” Anton Mayne, marking director, BrightSparkOnline

to add on, most agree: focus on what to subtract. First save energy, become energy-efficient and then investigate renewables.

STREAMLINING TARIFFSTo save electricity, it’s imperative to know your business usage profile and ascertain whether you qualify for a cheaper tariff. Says Anton Mayne, marketing director at BrightSparkOnline: “Each municipality has complete autonomy to pass its own unique set of rates, tariffs, rules and regulations. So, not only does the cost of energy differ between municipal

regions, but also within each municipality. Based on a variety of factors, there are different tariffs for which the end user qualifies.”

BrightSparkOnline offers an evaluation service to businesses, body corporates and sectional titles. Says Mayne: “The first step in an energy audit is to streamline the tariff. We log your profile and price it against all the different rates and tariffs. If we find a cheaper tariff, we switch it and reduce the price. One in four customers saves 20%-30% on their bill.

“Once the tariff is streamlined, you can manage your load around it. For example, with the Time of Use (TOU) tariff, electricity is expensive during peak times when the grid is under pressure to discourage users, and vice versa during off-peak times. For users able to shift consumption around those times, there are significant savings to be made.

SMARTLY REDUCING COSTS“The Smart prepaid system, too, is gaining traction,” says Mayne. “It has the ‘intelligence’ to achieve what other prepaid systems can’t: we can do prepaid for complex tariffs where the unit cost changes at different times of the day — TOU tariffs — or where there is a kVA charge. The token system commonly used doesn’t allow this, and landlords often underrecover or tenants overpay as a result.”

BrightSparkOnline retrofitted an 80-apartment block in Cape Town, all users initially metered individually on the domestic tariff, but the same electricity system can be applied to industrial and commercial business premises belonging to one owner, or operating as a collective.

Says Mayne: “We effectively pooled the 80 units to create one large power user, qualifying for a nondomestic

Analyse patterns of use. By knowing what your business is using when, and by changing staff habits, there’s a 10%-20% saving opportunity.

Replace old equipment with new technology — it’s always more energy-efficient — then prioritise lighting. Don’t simply change a fluorescent for an LED lamp, but introduce control through sensors indicating when somebody walks into a space — light comes on — and walks away — light off. In commercial buildings, consider a building management system (BMS). So if there’s enough natural light coming in, the LED dims in response. A cloud comes over; it ramps up again.

The next “quick hit” on a commercial building is hot water. A heat pump is highly effective (particularly for large volumes) and offers a 60% saving.

The biggest load in any commercial building is air-conditioning, a tricky one to control. More efficient systems are available but, ultimately, the ideal in a large building is a BMS that can tweak the temperature of every space. About 21°C is comfortable, and there are devices to hold that temperature, even overriding individual remote controls. A small change — only one degree throughout a large building — can reduce the energy bill by 20%.

ELECTRICITY Friday May 6 2016

panels (PV) to harness energy. Leigh de Decker, co-owner of BrightHouse Solar, works extensively with solar in businesses and homes.

“Although there’s currently no income tax rebate for private owners, commercial businesses can claim a 100% tax rebate during the first year of profit for installing a solar PV system to generate their own electricity. They can also claim back VAT,” says De Decker.

BrightHouse Solar sends engineers to assess whether you’re a candidate for electricity generation using PV panels (for example, panels can’t be installed on

thatched roofs), and conducts photographic surveys to ensure optimum panel positioning — how to minimise shade — and to estimate how long it will take a client to recoup their investment.

SPENDING TO SAVEBut there’s another aspect to solar that will become increasingly important as TOU tariffs become more widespread: selling back to the grid the excess electrical power your business generates. It’s a financial saving any commercial landlord or owner should be exploring.

“In 2014, we were the first

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MAGNET GROUP’S BRIAN HOWARTH: HOW YOUR BUSINESS CAN SAVE

“Although there’s currently no income tax rebate for private owners, commercial businesses can claim a 100% tax rebate during the first year of profit for installing a solar PV system to generate their own electricity. They can also claim back VAT”Leigh de Decker, co-owner, BrightHouse Solar

tariff. The reduced rate was then passed on to each individual user, resulting in a 35% reduction of energy costs for those homeowners.”

CHANGE HABITS FOR RETURNSMost reputable companies working in this energy space — and it’s imperative you research reputability — will offer expert advice on quantifiable energy efficiency initiatives. A calculation needs to be made as to how much power will be saved by investing in alternatives, versus the return on investment (ROI).

Brian Howarth is MD of Magnet Group, who work in the commercial, industrial and residential energy space, including solar. He says: “For most clients, the ROI is typically under two to three years, if they exclude investing in solar photovoltaic panels.”

Howarth says after the energy audit, prioritise analysis of your pattern of use: “By knowing what your business is using when, and just by changing staff habits, there’s a 10%-20% saving opportunity.”

SOLAR TAX REBATESWhat about solar and renewable energies? For some, the feeling is aim for energy efficiency, then — based on a reduced energy requirement — explore investing in solar photovoltaic

South African residents to legally generate excess power in 2014 and sell it back to the Cape Town municipality,” says De Decker. Rooftop panels generate 80%-90% of her property’s electricity, powering her home and reducing costs. Any excess automatically goes back to the municipality.

WHAT THAT COSTS Says De Decker: “A typical small business would need a 15kW system, which would require 100m2 of suitable roof space, and cost in the region of R400,000. It would produce on average 2,000 units of electricity a month, and this would fix a large portion of the electricity cost at R1.10 for the next 20 years.

“Electricity tariffs differ widely across the country — but to give an idea of the potential saving, the average medium to large home residential tariff is R2.14/kW. Most businesses could aim at achieving payback in about four to five years.”

Retrofit and new builds — different cases with different solutions. There’s little doubt that a building equipped with considered energy-saving or -generating features will be enticing. Whether you’re concerned for the planet, your pocket or both, with commitment, there are skills, solutions and technologies at your disposal.

regions, but also within each municipality. Based on a variety of factors, there are different tariffs for which the end user qualifies.”

BrightSparkOnline offers an evaluation service to businesses, body corporates and sectional titles. Says Mayne: “The first step in an energy audit is to streamline the tariff. We log your profile and price it against all the different rates and tariffs. If we find a cheaper tariff, we switch it and reduce the price. One in four customers saves 20%-30% on their bill.

“Once the tariff is streamlined, you can manage your load around it. For example, with the Time of Use (TOU) tariff, electricity is expensive during peak times when the grid is under pressure to discourage users, and vice versa during off-peak times. For users able to shift consumption around those times, there are significant savings to be made.

SMARTLY REDUCING COSTS“The Smart prepaid system, too, is gaining traction,” says Mayne. “It has the ‘intelligence’ to achieve what other prepaid systems can’t: we can do prepaid for complex tariffs where the unit cost changes at different times of the day — TOU tariffs — or where there is a kVA charge. The token system commonly used doesn’t allow this, and landlords often underrecover or tenants overpay as a result.”

BrightSparkOnline retrofitted an 80-apartment block in Cape Town, all users initially metered individually on the domestic tariff, but the same electricity system can be applied to industrial and commercial business premises belonging to one owner, or operating as a collective.

Says Mayne: “We effectively pooled the 80 units to create one large power user, qualifying for a nondomestic

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INTERNATIONAL Friday May 6 2016

WORDS: LEA JACOBS PHOTOS: SUPPLIED It is the world’s second-

largest country, with six different time zones and

some of the most extreme temperatures around. If you think about it, the fact that South Africans are drawn to a place like Canada is somewhat strange. Most of SA has a fairly temperate climate throughout the year. Yes, it gets a little chilly in Gauteng, but nothing can compare to the almost arctic conditions that prevail in Canada for large parts of the year. And yet, South Africans are drawn to this beautiful country with its high standard of education. A large expat community calls Canada home.

Canada was named the “most reputable country” in the world in the 2015 RepTrak annual survey of 55 nations by the Reputation Institute. Destination Canada’s chief marketing officer Jon Mamela says this shows that the “perception of a country translates into economic benefits” when people want to visit a country “as well as live, work or study there”.

It’s one of few places where the property market wasn’t affected by the global economic crisis in 2008, but this doesn’t mean everything is rosy. There are genuine concerns that cities such as Toronto and Vancouver could be at risk of a housing bubble. On that note, Kim Mackrael and Jason Chow’s recent article in The Wall Street Journal notes the average price of a detached Vancouver home more

Oh CanadaLow interest rates and a favourable exchange rate make Canadian property investment an attractive option for South Africans

than doubled to $1,248,600 between 2005 and 2015. Overall house prices in the city increased by 19% year on year in December 2015.

A growing number of economists blame foreign investment, particularly of a speculative nature, for the upsurge in house prices. Concerns have been raised by the Canada Mortgage and Housing Corporation, Canada’s national housing agency, which noted that these types of investment can pose additional risk because they may be more mobile and subject to capital flight, leading to increased volatility.

SOUTH AFRICANS DOMINATEYet this market appeals to South Africans looking to expand their investment base. According to Christo Lourantos of Sotheby’s International Realty in the Greater Toronto Area, a massive 70% of his agency’s business originates from South Africans. Interest rates remain extremely low, regardless of a number of recent hikes. Add the fact that the rand is more favourable to the Canadian dollar than to other major currencies and owning property in Canada becomes attractive.

“A lot of skilled people are emigrating from SA to Canada, while a substantial number of local investors are also using their annual Reserve Bank forex allowance to purchase property in a stable market that is growing

at a rate substantially above inflation,” says Lourantos.

EASIER THAN YOU THINKToronto lawyer Laughlin Campbell of Campbell Bader LLP says there are no restrictions on ownership of Canadian real estate by South African nationals.

“The purchase, title transfer and insurance processes are very straightforward, with a modern, electronic land titles system providing ease of use and security.

“Nonresidents investing in Canada are required to file with the Canada Revenue Agency with respect to capital gains on real estate, but the process is not complicated and easily integrated into the sale of investment property by any competent lawyer,” says Campbell.

He says a clearance certificate takes two to four weeks in most cases, usually within the time allotted for the closing of an agreed purchase and sale. Capital gains are taxed at the top marginal rate, but only half the gain is taxed, resulting in a favourable tax treatment compared to many other jurisdictions.

GREATER TORONTO INVESTMENTLourantos says most of his investor clients are Johannesburg-based. They have entry-level homes in the Greater Toronto Area as a first investment, from

condominiums to town homes or semidetached properties. “The Toronto skyline has been a sea of cranes for some time now to meet demand for condos. You can enter this market for around C$300,000, which is well below the annual limit set by the South African Reserve Bank for taking funds offshore. Town homes just out of the city start at around $400,000.”

According to Lew Geffen,

“Canada is still one of few places where South Africans can make a meaningful property investment and get a decent return on their money”Lew Geffen, chairman, Lew Geffen Sotheby’s International Realty in SA

“The Toronto skyline has been a sea of cranes for some time now to meet demand for condos. You can enter this market for around C$300,000, which is well below the annual limit set by the South African Reserve Bank for taking funds offshore”Christo Lourantos, Sotheby’s International Realty, Greater Toronto area

chairman of Lew Geffen Sotheby’s International Realty in SA, numerous expats are now resident in Canada, and also looking in the South African market for holiday homes because the exchange rate is so favourable. “Owning property in SA allows them a base to be close to extended family. The property relationship between Canada and SA is a two-way street that is presently fairly heavily trafficked and we expect that to continue for the foreseeable future.”

According to Numbeo, the average disposable after-tax salary is C$2,967. A three-course meal in a mid-range restaurant costs C$60 while a McDonald’s meal costs C$9. A litre of milk sells for C$2.11 and a loaf of white bread costs C$2.75. Basic utilities including heating and water should total about C$144 a month.

The medical field is advanced and for the most part treatment is free, however dental care and medication is not always free. Crime is extremely low (Numbeo rates Canada 72 of 117 countries). Serious crime has steadily dropped — in 2014 it was at its lowest level since 1969. Statistics Canada attributes the drop to fewer break-ins and robberies.

Says Geffen: “Canada is still one of few places where South Africans can make a meaningful property investment and get a decent return on their money.”

“

PROPERTY NEWS Friday May 6 2016

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The Mall of Africa opened on April 28 in Waterfall, Midrand. The largest

single-phase shopping centre development in southern Africa, it caused the biggest stir for creating traffic chaos on the N1 and N3 highways after attracting 124,000 visitors on its opening day.

Mall of Africa was designed to be at the hub of major transport routes. “Easy access from Gauteng’s transport network is an inherent advantage of Mall of Africa,” says Atterbury Property Development’s James Ehlers. “Excellent accessibility is crucial for the success of any shopping centre. For a super-regional shopping centre the size of Mall of Africa, this means creating the best access for shoppers from across the province and even further afield.”

Top international brands that opened their first

Largest single-phase shopping centre now open

stores in SA include Armani Exchange, Helly Hansen, Asics, Zara Home, The Kooples, Under Armour, Women’secret and Soap Stories. These new retailers join a full pack of flagship stores from favourite brands including H&M, Forever 21, Forever New, River Island, Mango, Cotton On, Starbucks, Versace and Zara. There are numerous restaurants and food outlets, and a state-of-the-art nine-screen cinema complex.

Says Atterbury co-founder Louis van der Watt: “Developing a super-regional mall in the heart of the fastest-growing urban node on the continent presented the opportunity to create an exciting modern landmark. Its exceptional scale, design, location, retail mix and access creates an exciting asset and places it at the forefront of retail developments.”

“Developing a super-regional mall in the heart of the fastest-growing urban node on the continent presented the opportunity to create an exciting modern landmark”Louis van der Watt, co-founder of Atterbury

Rosebank’s Keyes Avenue transforming into arts precinct

Phase one of a project to convert Rosebank’s Keyes Avenue area into

a dedicated art precinct has begun. This upgrade in the heart of Rosebank aims to attract visitors and tourists to a more pedestrian- and cyclist-friendly space.

The area is already home to the Everard Read Gallery, the Circa Gallery and the Goodman Gallery. The project’s objective is to create attractive streets so people will be encouraged to walk or cycle through the area.

StudioMAS Architects and Urban Designers created the development plan for the area upgrade. It addresses the state of disrepair of streets, its many blank and windowless walls, and also parking garages that face the road. These create an unpleasant, even unsafe,

environment for pedestrians, which is particularly troubling given that St Teresa’s Convent School is located on Keyes Avenue.

“The current condition of Keyes Avenue appears to be a haphazard overlap of cars, scholars, church congregants, gallery visitors and daily commuters,” states the plan.

Its architects highlight a street in disrepair, dominated by vehicle movements to the detriment of pedestrians. They note that despite the “degradations and state of the streets, pavement and buildings” the area is an emerging precinct with “great development potential”.

According to the architectural plan, Keyes Avenue presents “many opportunities” because it is a gateway to the “Rosebank Box”. Also noted is that the area is walkable — served by public transport, a high-speed train, buses and taxis, and it has access to a good mix of facilities and uses. The school, church and galleries draw a local and international audience and provide commercial opportunities.

Says Emma Reid, project architect at StudioMAS: “The project is all about working with existing guidelines and structures, and using the school, church and galleries as a catalyst for change.”

Phase one of the Keyes Avenue art precinct, involving the upgrade of the pavements, is currently under way. The second phase is imminent.

“South Africans are increasingly opting for areas that offer the lifestyle they desire, leading to strong demand for property in those areas”Simon Bray, CEO, Private Property

Lifestyle buy or investment?

WORDS: BRIDGET MCNULTY :: PHOTOS: SUPPLIED

You can have both if you research and choose carefully

Location, location, location!” It’s the primary advice

prospective property buyers are always given. But while buying in the right location is still important, you also need to ensure you’re buying at the right time and right price if you want to see good returns.

Similarly, buying the worst house on the best street used to be tried-and-true property investment advice, but dig a little deeper and this advice could have potential pitfalls. How long will it take to transform this dreadful house into something liveable? Where will you stay in the meantime? Most importantly, can you make changes in a cost-effective way so you don’t overcapitalise on your investment?

Increasingly, even the worst house comes with a hefty price tag if it’s in the

right area, so you might be better off looking elsewhere.

BEST BENEFITS?Then, when it comes to buying property: do you choose a lifestyle investment or a property investment? Buying in an area you love means that you’ll enjoy a lifestyle that improves the quality of your life while still benefiting from investing in the property market, which is always a long-term investment.

“It is possible to achieve both lifestyle and a solid investment if you identify the right area to buy in,” says Simon Bray, CEO of Private Property. “South Africans are increasingly opting for areas that offer the lifestyle they desire, leading to strong demand for property in those areas. Whether it’s a ‘work, live, play’ lifestyle in Sandton or a golf estate in the Winelands, continued high demand will lead to good capital growth.”

Bray has seen an increased demand from home buyers looking for lifestyle information before making a property decision, leading Private Property to create an entire Neighbourhoods section on their website that allows browsers to find out more about the lifestyle of an area and also research price trend data for that area. This could help potential buyers locate that sweet spot where location, lifestyle and investment meet.

“

SHOW DEVELOPMENT SITARI COUNTRY ESTATE Friday May 6 2016

Offering 3,150 residential opportunities, Sitari Country Estate is a

development like no other. Between the homes at Sitari are green open spaces, herb gardens, orchards, ponds and streams, offering tranquillity and immersion in nature for residents. Children can run wild and parents can enjoy evening walks on the 14km bike path that stretches through the estate. The reinstatement of the second largest vlei in the Helderberg basin after Paardevlei — Sitari’s Zeekoevlei Wetland — will bring serenity and nature to residents’ doorsteps.

The wetland is about 21ha and set in the lower central section of Sitari. It will be a haven for indigenous wetland plants, birds and small amphibians, as well as forming a key focal point. It will be planted with

indigenous reeds and sedge species to form an attractive space all year round.

A central formal park spine also runs all the way from the R102 down to the country clubhouse. In contrast to the numerous agricultural landscapes, this central park features smaller, more intimate spaces such as orchards, ponds, parterres, seasonal vegetable gardens, rose gardens, pergolas and tall hedges. This is a feature reminiscent of the prettier “fijntuin” of Cape homesteads of old.

The area is surrounded by the rolling hills of the Helderberg and Hottentots Holland mountain range, and is also home to a beautiful array of flora and fauna; sightings of animals such as genets and black eagles won’t be unusual for Sitari residents.

Discover a life of luxury

WORDS AND IMAGES: SUPPLIED

The Cape’s award-winning estate, Sitari Country Estate in Somerset West, combines luxurious country living with modern-day conveniences

“Each of Sitari’s homes is curated with incredible attention to detail, from the ceilings, light fixtures and windows, to the bathroom taps, kitchen appliances and flooring”

SHOW DEVELOPMENT SITARI COUNTRY ESTATE Friday May 6 2016

HIGH SECURITYSitari’s security system is of the highest standard and features a main gatehouse complex at the entrance to the estate that is 1,849m². It houses the security control room, as well as sales, letting and homeowner management offices and office space, which will also be available for purchase. On-site security will be manned predominantly through the main gatehouse, as all visitors will be required to enter through either the main or secondary gatehouse, both of which will have biometric readers, number plate recognition and 24/7-staffed access control. Boundary walls on the outside of the estate will feature underdig protection, serrated strips, anti-cutting and anti-climbing protection, with electrics on top, as well as Future Fibre Technology with heat-sensitive triggers. These, when triggered, will

activate cameras and this will link back to the main control room. Security roaming vehicles will then be dispatched to the place of disturbance for inspection and action where necessary. Each junction inside the estate will also have four-way cameras for the control room to be able to always keep an eye on the inside of the estate.

AN INDEPENDENT SCHOOLSA’s fastest growing independent school brand, Curro, opened its doors to more than 2,000 children at Sitari in 2016. As a leader of outstanding education facilities, Curro strives to create the sustainability needed to ensure an ongoing level of excellence in the education of SA’s children of the future.

CHOOSING YOUR PROPERTY Five types of property developments, all with

exquisite features, are available: Luxury and Premium Apartments, Village Homes, Country Homes and Country Plots. The features are chosen by the select suppliers that Sitari has opted to work with. Each of Sitari’s homes is curated with incredible attention to detail, from the ceilings, light fixtures and windows, to the bathroom taps, kitchen appliances and flooring. The inclusion of brands that embody luxury and a passion for detail means Sitari offers residents an exceptional home in every aspect.

DEVELOPMENT PROGRESS Currently, the foundations of three Grand Olive buildings have been laid and the civil works, including the building of roads and parking, have been completed. Ground floor slabs are being thrown and the foundations for

GET IN TOUCHCall the on-site sales centre on 087 890 0033.

the stairs have begun. At the Main Gatehouse, both the concrete work and the parking bays are completed, and more than half of the roof is up. Plasterwork and electrical work is under way, and the security beams are in full working order. The landscaping at the main gatehouse will be done once everything else is completed.

Roofs are completed on 90% of Sitari’s Village Homes and three are already 99% complete. Three Village Homes are also transferred and occupied. Landscaping around the homes that are 99% complete is currently under way, and the rest are receiving their final coats of paint. Both Phase 1 and 2 of the Country Plots are sold out, which is testament to the award-winning Sitari’s desirable lifestyle of convenience and luxury. Phase 3 will be launching soon.

SHOW DEVELOPMENT SOMERSET LAKES Friday May 6 2016

The Somerset Lakes adventure lifestyle estate is 10 minutes from the

Strand False Bay beachfront and adjacent to the new Reddam House Somerset, one of SA’s most successful private school groups.

The estate will consist of about 800 homes, many of which are situated on or close to a 6ha private lake. A forest and running and walking trails complement the outdoor lifestyle that makes the Western Cape so desirable.

FAMILY LIVINGThe estate has been designed to meet the growing demand of families wishing to establish themselves in Cape Town while being close to excellent schools. Buyers at Somerset Lakes have preferential access to Reddam House.

Says Jan Minnie, estate sales director: “Some R135m in housing construction is under way and the first residents can expect occupation from the end of 2016. The development company has started constructing additional landscaping elements during the Cape winter wet season, so that by the end of the year, the estate, with the new school and hundreds of residents, will be firmly established.

“The focus for Somerset Lakes is family living and we will be rolling out adventure-orientated activities soon.

The developer is intent on creating an environment where kids can play and cycle or walk to high quality schools in complete safety, and where you can get a good family home.”

The 42ha estate consists of unique residential nodes: Heron’s Rest, Waterford Green and Brookdale were sold out in a few months.

Of the two new phases, The Lakes phase was 50% sold pre-launch. House prices start from about R3m including VAT and range between 202m2 and 305m2.

LAKE VIEWSSays Minnie: “Waterfront properties anywhere in the world are a big draw card, and because of this position, The Lakes is an outstanding opportunity. With sea and mountain views, and close proximity to the shores of their own lake, these properties are really special.”

Another residential option, Kingfisher Terrace, is a collection of modern two- or three-bedroom, sectional title garden cottages, close to the lake’s banks. These 51 luxury properties range from 143m2

Somerset Lakes in Somerset West, Cape Town, offers a secure adventure lifestyle, with family homes from R3m

Luxurious lakeside livingWORDS AND IMAGES: SUPPLIED

The prestigious Reddam House private school opened its doors at Somerset Lakes in January 2016. As the school borders on Somerset Lakes, resident children can walk or cycle to school in safety.

With an international reputation for educational excellence, the Reddam Group prides itself on providing one of the most optimal learning environments currently available in SA.

Reddam House Somerset is specifically designed to inspire students to achieve their maximum potential in a progressive academic setting. Each child’s individuality and talents are carefully nurtured. There is also a shared focus on academic, cultural and sporting achievements. This means students are encouraged to excel in their chosen school subjects and sports while embracing the creative and performing arts.

All schools provide internationally recognised qualifications.

The on-site Reddam House at Somerset Lakes incorporates:

An early-learning school (1-6yrs)

A preparatory school (6-13yrs)

A college (13-18yrs)

REDDAM HOUSE SOMERSET

to 175m2. Thirty percent of the houses in this phase have been sold pre-launch.

Each garden cottage offers a contemporary, spacious feel with well-lit interiors, unspoiled views of the mountains, private garden areas, security and secure parking.

All homes have access to the estate’s fibre optic cable that provides high-speed internet and VOIP communications.

“With a starting price of only R1.62m, Kingfisher Terrace offers buyers the

chance to own a piece of pristine property at competitive prices compared to other estate properties in the area,” says Minnie. “There is a high demand for rental properties too. Investors can expect gross rentals of between R11,500 and R15,000 a month for these properties.”

All homes at Somerset Lakes can be secured with a R25,000 deposit and no transfer duty is payable. New properties in Somerset Lakes will be ready for occupation in 2017.

SHOW DEVELOPMENT SOMERSET LAKES Friday May 6 2016

GET IN TOUCHInterested buyers can register and secure properties in Kingfisher Terrace and The Lakes online at somersetlakes.co.za, or contact the Somerset Lakes sales team on 021 202 2200.Follow Somerset Lakes on Facebook and Twitter @SomersetLakesCT

FEATURES OF SOMERSET LAKES

Education Curro Castle Nursery

School & Private School

Reddam House Private School

Fitness Concentric meditation

labyrinth

Walking, running and cycle trails

Swimming pools

Nature Boardwalks and pathways

Mountain views

Private beach on the lake

Stone pine forest

Award-winning indigenous landscaping

Recreation Clubhouse

6ha lake stocked with bass and grass carp

Play areas

Security Guardhouse is linked to a

rapid response team

More than 70 high-definition surveillance cameras, monitored around the clock from the hi-tech guardhouse

Electrified and alarmed perimeter fencing with anti-dig foundations

Biometric fingerprint access control

24-hour guarding and patrols

SHOW DEVELOPMENT ST. ANTOINE PRIVATE RESIDENCE Friday May 6 2016

Situated in the Indian Ocean, only a four-hour flight from

Johannesburg, Mauritius offers historic sites, cultural diversity and an abundance of land and water-based activities for the whole family. Boasting the most flourishing economy on the African continent, Mauritius is not only a tourism hotspot but also a desirable destination for foreign investors.

In light of this, the island’s largest development entities, ENL Property and Red4, have joined forces to develop St. Antoine Private Residence, a Mauritian private residential development suited to the

South African market’s demand for location, permanent residency, facilities and ocean access.

Says Norbert Koenig, developer of St. Antoine Private Residence: “St. Antoine will launch its first 50 apartments on June 18, and will present an opportunity for South Africans to not only invest in the premium facilities that the development offers, but also enjoy the lifestyle, economic and taxation benefits that come with investing in property in Mauritius.

“With two-, three- and four- bedroom options

“To maximise the beauty of the surroundings, the estate incorporates unique resort-style activities”

available, the apartments depict modern living.

“Offering both comfort and style, 100 luxury apartments and penthouses have been designed to offer the perfect family or holiday home, and an ideal lock-up-and-go solution.”

To maximise the beauty of the surroundings, the estate incorporates unique resort-style activities. They include an expansive clubhouse, resort-style swimming pools and an exciting kid’s club. The deli and bar, lounge area, beauty salon and spa will allow residents to relax in the exclusivity and luxury that the estate offers.

WELCOME TO ST. ANTOINE Located in the north of Mauritius, St. Antoine is a charming area rich in Mauritian tradition. It is 10 minutes from the hub of Grand Baie, and there is easy access to everyday conveniences and comforts such as private schools, shopping, restaurants and bars, the Grand Baie nightlife, and all nautical activities you could wish for.

With the Indian Ocean on two sides, St. Antoine boasts access to two idyllic islands: Ile d’Ambre and Ile aux Bernaches, as well as a jetty for ocean access. Exploration of these secluded islands,

Introducing St. Antoine Private Residence

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Invest in the luxurious, tropical lifestyle on offer in Mauritius

SHOW DEVELOPMENT ST. ANTOINE PRIVATE RESIDENCE Friday May 6 2016

snorkelling, canoeing through the mangroves or picnicking with the family under the Casuarina trees, are just some of the activities that these islands offer.

INVEST IN MAURITIUSMauritius has recently introduced the Property Development Scheme (PDS), and St. Antoine will be one of the first to be realised. This means that foreigners can acquire Mauritian permanent residency through investing in the development, and presents an offshore property investment opportunity that will enjoy excellent growth

in value. The favourable taxation benefits offered in Mauritius, its emergence as a global business hub, and its appeal as one of the world’s finest leisure destinations make it a highly desirable investment opportunity.

Says Koenig: “Whether wanting a second home in which to holiday with the family, to benefit from the dollar-based capital appreciation and rental income projected, or to achieve residency in Mauritius, St. Antoine Private Residence really does offer an exceptional investment opportunity.”

GET IN TOUCHFor more information call 087 195 1047 or visit stantoine.co.za

BENEFITS OF INVESTING IN MAURITIUS

Permanent residency

Highly attractive tax regime of 15%

Economically thriving business hub

Dollar-based capital appreciation and rental income

International schooling and tertiary institutions

No capital gains or inheritance tax

Safe and secure lifestyle

Situated in one of the fastest-growing investment areas of Johannesburg, near Greenstone and Stoneridge Shopping Malls, and close to Sandton, Midrand, the new Gautrain Station

(proposed for 2019) and O.R Tambo International Airport, Heritage Estate offers a superior community lifestyle for over 50s looking to retire in the stately elegance of a Heritage

property set in park-like surrounds. Covering an area of four hectares, the focus of the Estate is the stately Heritage House, built in 1910 and surrounded by an enchanting Oval

and a Pavilion, plus indigenous landscaped gardens with heritage trees. The homes are elegantly designed with superior-quality interiors, space and excellent security. The estate

guarantees peace of mind for making the lifestyle of health and wellbeing a priority in a village of Sectional Title simplex, duplex and penthouse units. Home-based assisted care

services will enable residents to age gracefully with minimal concerns. A state-of-the-art Clubhouse will offer a restaurant, library and business centre, and top-quality security will be

provided, ensuring residents' safety. Other convenient features include a shuttle shopping service and fibre optic backbone to units.

The ultimate lifestyle investment exclusively for the over 50s.

ON SHOW TUESDAY - SATURDAY 10AM-4PM. SUNDAY 10AM-5PM. Follow pointers from Modderfontein Road into Peace Street.

Sally Wright 082 806 3069

Only 10 units left in Phase 2. Priced from R1.45 million - R4 million.Price includes Transfer Duty and VAT. Rentals available.

G A U T E N G D E V E L O P M E N T SOffice: 011 923 4400

pamgolding.co.za/property-developments

ADDRESS DETAILS

Apartment 7015

(Entrance on Lloys Ellis Avenue, off Osborne Ave, at Houghton on the 7th).

Office – 011 034 2201 || Alan Becker – 082 718 8100

Email – alan@thehoughton.com

APARTMENTS AVAILABLE TO VIEW THIS WEEKEND – 10AM TO 5PM

Soak up the views from the rooftop of apartment 12720 – Request a tour at your convenience

INVEST IN THE LUXURY APARTMENT

LIFESTYLE.You’ll be in good company:

last month we sold R156 million worth of luxury apartments.

THE HOUGHTON

VARIOUS OPTIONS AVAILABLE: THREE, FOUR AND FIVE BED EN-SUITE APARTMENTS

ADDRESS DETAILS

Apartment 7015

(Entrance on Lloys Ellis Avenue, off Osborne Ave, at Houghton on the 7th).

Office – 011 034 2201 || Alan Becker – 082 718 8100

Email – alan@thehoughton.com

APARTMENTS AVAILABLE TO VIEW THIS WEEKEND – 10AM TO 5PM

Soak up the views from the rooftop of apartment 12720 – Request a tour at your convenience

INVEST IN THE LUXURY APARTMENT

LIFESTYLE.You’ll be in good company:

last month we sold R156 million worth of luxury apartments.

THE HOUGHTON

VARIOUS OPTIONS AVAILABLE: THREE, FOUR AND FIVE BED EN-SUITE APARTMENTS

RESIDENTIAL SALES & MARKETING • RENTALS • DEVELOPMENTS • HOME LOANS

GAUTENGTHERE’S NO OTHER LIKE THIS

Mind-bogglingly different, top-quality sensationthat welcomes the eagle eye for deep-downvalue! If this is for you, NOTHING else will do! +/-900sqm set on a glorious, tranquil, nigh 1067sqmstand. Magnificent garden. Outstanding 24-hrsecurity Complex. Privacy. Quiet. An ‘out-of-this-world’ Entrance filled with white roses all yearround sets the tone. Even multi-car garaging!33KVA Generator is one of the loads of excep-tional Features. 4 Bedrooms en-suite. Sunbatheon Main-en-suite terrace. Flowing Receptions togorgeous Covered Patio. Staff.

BEDROOMS: 4 BATHROOMS: 4

Irene de Bliquy 083 727 9073 Office 011 656 0888

Web Ref: 103140

GAUTENGTASTEFUL ELEGANCE IN THISSINGLE STOREY GEM

Light and vast open spaces will be your lastingimpression of this stunning home. The living areafeatures extra high ceilings, a TV lounge, built-inbar, dining room and sun room all opening to thewooden pool deck and landscaped garden. Thespacious master suite which boasts a walk-indressing room and sumptuous bathroom, plus twobedrooms all open on to the garden. A separateen-suite cottage is perfect for visitors. The spaciousgourmet kitchen leads to a private sound /enter-tainment room. 5 Garages and staff are an addedbonus.

BEDROOMS: 4 BATHROOMS: 3

Brian Hickson 083 405 0000Tracy Stuart 082 921 3980

Web Ref: 103278

WOODMEADR11.5 million

UPPER CONSTANTIAR16.9 million

KYALAMI ESTATER6.3 million

WESTERN CAPEEXCEPTIONAL DUAL/MULTIPLELIVING, OR B & B OPPORTUNITYAn area steeped in history, this wonderful Colonial,north facing family home offers numerous receptionand entertainment rooms with fountains and fire-places. A sun filled 2500 sqm property boasting asparkling pool and separate gym which overlooksthe peaceful and tranquil greenbelt. This primeresidence family home is ideally designed for alarge family or multiple living options utilising the 9bedrooms, and 8 bathrooms, which include 3 self-contained flats. These are served by a 6 car garage,2 carports, and 2 off street parkings. Level lawnsand garden are maintained to perfection from theexceptionally crystal clear copious private watersupply / spring, with 16 zone irrigation.

BEDROOMS: 9 BATHROOMS: 8

Ingrid Hoaten 082 490 6246Charne Shipper 083 274 6336

Web Ref: 94489