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HOMEFRONTBusin ess Day FRIDAY, MAY 20 2016

FLUTES AND FLAIR IN FRANSCHHOEK

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SUBDIVISION MAY MAKE SENSE

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AUSTRALIAN PROPERTY STILL HAS IT

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WALKABOUT IN SANDTON CENTRAL

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Five ways modern malls can draw customers into stores

Whether it’s building design, online technology, customisation or all three, a cleverly considered shopping mall can draw customers into bricks and mortar stores and make them spend more

CONTINUED ON PAGE 6WORDS: GEORGINA GUEDES :: PHOTOS: FINEGRAFIX

When the Franschhoek property now trading as Le Lude winery and Orangerie restaurant was purchased in 2009, it was an overgrown plum orchard.

The property is just more than 6ha and 3.2ha is under vine: half planted to Chardonnay, plus Pinot Noir and Pinot Meunier cultivars.

Some of the MCC special bottlings use cork instead of crown caps for their secondary bottle fermentation — Le Lude were pioneers of this French agrafe method used in SA.

The farm buys in 95% of their grapes. They also planted these cultivars in cooler, high-altitude Sutherland as an experimental project.

Luxurious Lilly Pond House is a two-bedroomed villa with a pool for hire on the riverside end of the farm.

PROPERTY SPECS

LIFESTYLE Friday May 20 2016

Lovely Le Lude

“The idea was to create a conservatory, quite a white and light-filled room, using large crittall-style windows”Olga Barrow, Olga Barrow Interior Design

From its elegant French-infl uenced gardens and interiors to its fl utes of fi zz, a Franschhoek family’s recently completed farm is luring visitors with Gallic charm

Winemaker Paul Gerber produces an excellent leaner, dryer style of MCC Brut and Rosé non-vintage under Le Lude’s label. Initially the plan was to offer only bubbly tastings with canapés for visitors, including those hopping off the Franschhoek wine tram.

But when the Barrow’s chef daughter Nicolene Barrow became involved, they added a small restaurant. The MCC and canapé concept is well worth doing — flutes are paired with a choice of three of Nicolene’s exquisite sweet and savoury canapé plates.

“Le Lude refers to the Loire valley with its beautiful little châteaus and lovely gardens,” says Ferda, an accomplished gardener. The family started the Klein Karoo Nationale Kunstefees in Outdshoorn. They also run a few country houses and hotels there.

Ferda’s other daughter Olga Barrow designed the interiors for Le Lude’s tasting room and restaurant. Orangerie’s lunchtime diners look out past white tables to Ferda’s pergolas and rose gardens enclosed by hedges.

Chef Nicolene credits her time at Michelin-two-star Le Gavroche in London for

“Four years ago we had to do the MCC so we built the cellar. We gave our architect some instructions but it was really about formalising our design ideas”Ferda Barrow, Le Lude co-founder

It has the feel of an established property that has been there forever.

Yet Le Lude’s split-level cellar was built only in 2012 so the Barrow family’s first Franschhoek methode cap classique (MCC) could be made — they’re mad about Champagne and set on producing a worthy local equivalent. The cellar’s

upper section is now linked to the Parisian-green tasting room and white Orangerie restaurant — additions that opened to the public in November 2015.

Ferda Barrow says there was nothing to see when she and attorney husband Nic started building. “Four years ago we had to do the MCC so we built the cellar. We gave our architect some instructions but it was really about formalising our design ideas,” she says. They built their adjacent manor house home two years ago.

WORDS: KIM MAXWELL PHOTOS: SUPPLIED

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 20 2016

Is design your hobby or work? I was a copywriter initially but always knew I wanted to do interior design.

Then I worked for St Leger and Viney for three years. It was a wonderful learning curve. That’s when I knew … I enrolled at Inchbald School of Interior Design in London and did a three-year course in two years. Every day was amazing. I worked in Rwanda at the Kigali Marriott Hotel for just less than a year. But I got engaged so my now-husband begged me to come home.

Where is your offi ce?My business is Olga Barrow Interior Design in Cape Town and I work on my own projects, including this one. I don’t have other hands-on involvement at Le Lude but I’m there almost every weekend.

The tasting room is ornate and unusual. Yes, the idea was to have a bit of French influence

in the interior, but not too dramatic or heavy. So it’s a lighter take. My mother wanted the room to be green — I love green but it’s quite a difficult colour. We tested a lot of samples to get the right shade of green. There was a hotel in Paris that had a green we liked. We brought in some gold foil edging on the architraves that were made by a local joiner.

The details? It took a while. Every time we found the perfect fabric

it was either discontinued or out of stock — we searched for five months. We eventually found a pomegranate and sage green fabric for the tasting room’s bar chairs. I found vintage plates at an antique shop. Some of those side plates decorate the tasting room walls. Vintage tiered plates and milk jugs from the same collection are used for the high tea Nicolene serves. We found antique chandeliers for dramatic effect.

Orangerie restaurant is next door. The idea was to create a conservatory, quite a white and light-filled room, using large crittall-style windows. The restaurant has white wicker chairs and a trellis design on white walls. There is brass bespoke lighting. Two paintings are for colour and fun — Thijs Nel is the artist. He’s a second cousin of my dad Nic, and lives in Oudtshoorn. He was in Paris for quite a while so you can see that influence.

Designer Olga Barrow on Le Lude’s interiorsWinemaker Paul Gerber

produces an excellent leaner, dryer style of MCC Brut and Rosé non-vintage under Le Lude’s label. Initially the plan was to offer only bubbly tastings with canapés for visitors, including those hopping off the Franschhoek wine tram.

But when the Barrow’s chef daughter Nicolene Barrow became involved, they added a small restaurant. The MCC and canapé concept is well worth doing — flutes are paired with a choice of three of Nicolene’s exquisite sweet and savoury canapé plates.

“Le Lude refers to the Loire valley with its beautiful little châteaus and lovely gardens,” says Ferda, an accomplished gardener. The family started the Klein Karoo Nationale Kunstefees in Outdshoorn. They also run a few country houses and hotels there.

Ferda’s other daughter Olga Barrow designed the interiors for Le Lude’s tasting room and restaurant. Orangerie’s lunchtime diners look out past white tables to Ferda’s pergolas and rose gardens enclosed by hedges.

Chef Nicolene credits her time at Michelin-two-star Le Gavroche in London for

shaping her classic style. Orangerie lunch menus start with home-baked rolls and beautifully plated steak tartare, and finish with warm cherry clafoutis — there is a Gallic elegance to many of the dishes and sauces.

You may marvel at the creamy duck liver parfait on homemade brioche or get lost

in the bisque-like richness of bouillabaisse, but Orangerie is probably best known for its warm Gruyère soufflé. The à la minute technique was perfected under the strict gaze of Le Gavroche’s French chefs. Says Nicolene: “I’m doing my version and the locals just love it.”

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INVESTIGATION Friday May 20 2016

WORDS: KIRSTEN HILL PHOTOS: ISTOCK

Divide and ruleIs subdividing your property a sound solution to maximise your source of income? It can be if you have carefully investigated the options

Property subdivision is becoming an increasingly viable way for

homeowners on larger plots of land in suburban areas to secure an additional source of income, reduce debt or simply adapt their lifestyles to better suit their changing needs.

In challenging economic times homeowners can also benefit from reduced municipal rates and property maintenance costs. There can often be increased security benefits too as a result of downscaling to a more confined way of living.

With “densification” now the order of the day, the current development climate is seeing local councils actively encouraging subdivision of residential land in earmarked areas, particularly those close to major roads, public transport and places of employment.

POTENTIAL BENEFITS?Suburban subdivision is also viewed as an effective way in which to combat urban

“By remaining on their property and subdividing it, they avoid this upheaval and potentially address security issues, reduce their costs and generate valuable retirement income.”

USE PROFESSIONALSGiven the many factors involved, it’s advisable to seek professional advice at the outset. Ideally residential homeowners looking to subdivide should appoint a town planner or land surveyor as well a conveyancer, to provide a clear understanding of the viability, estimated costs and time frames for completing the process.

Subdivision can be a very tempting prospect, but it can prove costly and time-consuming — the process typically ranges from about five months for a simple subdivision, up to two years for more complex cases that deal with restrictive clauses.

Whether a site is subdivisible is dependent, of course, on the size of the site and the council regulations for your suburb. A local town planner or land surveyor can advise on the possibility of subdividing, the minimum site size requirements in your area, and other factors such as building lines and maximum allowable floor areas.

The planner or surveyor submits your plans after obtaining information relating to zoning and any restrictive clauses. A conveyancing attorney then handles any registrations — and changes —

to the restrictive clauses and transfers.

Assuming that subdivision is permissible in terms of the municipal regulations and title deed, feasibility will depend on the size of the erf, its position, whether there is an existing structure on the plot and the position of that structure.

LOCAL APPROVAL NEEDEDFor subdivision of a bonded property in SA the bondholder’s consent is required. The process has to be approved by the local authority, the Registrar of Deeds and the Surveyor General. 

So the land surveyor will draw the new site diagrams and lodge these with the Surveyor General and municipality at your cost, after which a conveyancer lodges an application with the Registrar of Deeds.

Potential demand for particular types of dwellings in an area is also relevant. “We’re seeing a growing need for cluster or security estate-style accommodation in Cape Town’s Southern Suburbs in particular. And for cluster accommodation, for people to buy into an area they might otherwise not be able to afford,” says Upton.

“But bear in mind that subdivisible property may well yield a handsome profit when a portion is resold, but costs involved depend on the nature, extent and complexity of the proposal, and the municipal approval process can also prove a long one.”

“In many instances subdivision is attractive because the ‘sum of the parts is essentially worth more than the whole’ but also because it makes practical sense” Mark Upton, director, Upton Properties

sprawl and encourage a more efficient use of serviced land.

Carol Reynolds, Pam Golding Properties area principal for Durban Coastal, says subdividing is a good way to extract value in residential property. However she cautions that where minimum size requirements mean that subdivision is not viable, sectional title may prove an easier option because the minimum land size requirements are often less restrictive.

Explains Reynolds: “In an area such as central Durban North, for example, where the minimum land size is 1,400m2, you are only able to subdivide if your property is more than 2,800m2.

“However, if you have a property that is smaller than this, you may be able to acquire permission to erect a second sectional title dwelling. But this would require rezoning the property from full title residential to sectional title residential and thereby incur additional costs.”

SUBDIVISION OPTIONS Where subdivision is viable, homeowners can typically opt to subdivide their land, keep the house and sell off the plot. Or build another house or flatlets on the plot to let out to generate rental income.

They could also either sell off both pieces of land or demolish the house entirely and develop the property into townhouses or flats. Each option offers varying potential and should be considered on an individual basis.

“In many instances subdivision is attractive because the ‘sum of the parts is essentially worth more than the whole’ but also because it makes practical sense,” says Upton Properties director Mark Upton, who has a special interest in subdivision.

“Many people entering retirement, for example, wish to remain in their existing surrounds and avoid relocation to a retirement community along with all the adjustment that may entail,” he says.

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COMMERCIAL TRENDS Friday May 20 2016

CONTINUED FROM PAGE 1

Retailers are often warned about the threat to traditional

business posed by online shopping. But the thinking is changing: what if it’s more about how online technology and other aspects can aid shopping malls to communicate with individual customers and offer a level of personalisation?

At the Sixth Annual South African Council of Shopping Centres (SACSC) Research Conference sponsored by Broll Property Group in Sandton in April, director of Bought Media at iProspect Jonathan Andrews showed the audience a slide with Prince Charles and Ozzy Osbourne positioned side by side. As he explained, both are male, hail from the UK, were born in 1948, have been married twice and are wealthy.

The point? It is not enough to simply categorise customers using data; you have to also understand who they are.

“In this way, you are able

to create more personal messages available to them in the right place at the right time,” says Andrews.

If you want your shopping centre to be relevant, develop a level of contextual personalisation that will enable speaking to individual shopping centre customers and keep them shopping or entertained in your physical spaces for longer.

ONLINE IS CHANGING BRICKS AND MORTAR SHOPPING Michaela Murning, head of M3 Free Think shopper and consumer marketing consultancy, highlights winning international retail models that offer a combination of convenience, loyalty and experience.

Many of the technologies that support shopping centre retail respond to current trends in shopping. According to Murning, the customer’s path to the mall is no longer linear, but now includes online research, social media discussion or advertising

PHOTOS: MICHAEL TREE FOR MALL OF AFRICA

“John Lewis in the UK has virtual fitting rooms. You can try on a dress in yellow, then click a button in the fitting room to see how it would look in blue or red” Michaela Murning, head of M3 Free Think

Five ways modern malls can draw customers into stores

and word of mouth — before they have even set foot in the shopping centre.

“Online technology — the use of cellphones — counts for less than 5% of retail, including travel, books and fashion in SA,” she says. “Online is here, but it’s not the biggest thing in retail. What it is, though, is incredibly important, and increasing daily as part of the path to purchase for shoppers.”

Mobile is used in the “planning, search, select” stage of product buying, but the purchase is still largely carried out in the real world. Murning says it’s the reason retailers now compete to be noticed in multiple channels, while talking to customers with limited attention spans.

“We have goldfish syndrome from the technology and devices that we keep using. They have

COMMERCIAL TRENDS Friday May 20 2016

visitors to stay connected.Murning adds that

millennials look at their phones every 15 seconds, which means retailers should be interacting with shoppers much more via mobile. Virtual reality goggles might begin to play a larger part — Samsung’s product is available in SA – in allowing shoppers to have augmented reality experiences.

HELLO TO ADAPTABILITY AND VIRTUAL FITTING ROOMSSays Murning: “John Lewis in the UK has virtual fitting rooms. You can try on a dress in yellow, then click a button in the fitting room to see how it would look in blue or red.”

There are even apps offering home fitting-room services, where you can type in your measurements, put on a bikini and then “try on” the different styles and sizes you chose. It takes the risk out of online shopping or, importantly, convinces the shopper that they need to walk into a bricks and mortar store to try on a specific item.

Greg Schneider, head of marketing at Quirk, adds that beacons are becoming a crucial part of the retail technology mix. These devices use Bluetooth low-energy proximity sensing to communicate with individual smartphones. “These have the ability to be very accurate about where you are, down

to centimetres,” he says. This makes it possible, for instance, for a customer looking at a particular window display to get a message that similar items are on sale at a competing store.

GET THE MALL BUILDING BASICS RIGHTHenning Rassmuss, director at Paragon Architects, says the appeal of shopping centres starts with the building.

“All buildings in the end are about people, and good design is about making things work for people.”

The benefits offered by new technologies are meaningless if a developer fails to get the shopping centre basics right. Jos Tromp, EMEA operations

reduced our brain to the attention span of a goldfish — that’s an eight-second attention span.”

CLEAR MESSAGES CUT THE RETAIL CLUTTER To goldfish syndrome, add the fact that the customer is in a mall on a Saturday morning, with chaos, children and spouses arguing. Murning says it’s essential to reach them with relevant, personalised, clear messaging.

One way of doing this is by offering Wi-Fi in malls. “Technology is bringing huge change to retail, helping shoppers to navigate,” says Murning. “Malls, with all the best intentions in the world, are providing lots of information maps, but not everyone has time to read them. Instead malls should be providing apps that navigate for you using augmented reality.”

In an African first, open-access Wi-Fi network infrastructure provider VAST Networks and global wireless equipment provider Ruckus Wireless successfully established the continent’s largest Wi-Fi mall installation in the recently opened Mall of Africa in Waterfall precinct. They required a reliable, fast Wi-Fi solution to handle the capacity requirements of 130,000m2 of retail space with more than 300 shops, and allow thousands of daily

director for CBRE, says when European mall visitors were asked to list their shopping preferences, respondents valued cleanliness, convenience, security and accessible parking.

Says Tromp: “Many shopping centres on the [African] continent lack some of these basics.”

Markets in African countries vary widely according to Tromp, with people in Mombasa saying they hate shopping and don’t have time for it, Nigerians wish for longer shopping hours and South Africans say they find shopping entertaining — our shoppers also follow trends.

Says Tromp: “In SA people ask for variety and

convenience, free Wi-Fi ranks very highly and they want kids’ entertainment.” So while it’s important to provide innovative shopping centre solutions, it’s vital to provide for customer needs.

PERSONALISATION MAY MEAN BREAKING RETAIL RULES Rassmuss makes the point that while there are rules for building malls for good reason, it is important to understand that rules can be broken too — especially in the rest of Africa.

“I visited a site outside Nairobi two-and-a-half years ago. I told them that they were mad to build a shopping centre there because there were no people. One-and-a-half years later, we couldn’t believe

the growth, and they told us that South Africans tell them the wrong thing. We don’t always understand that there is a different pace of growth elsewhere.”

In the modern mall personalisation is key. And while the technologies are fascinating, if they are useful to the individual — providing information on where somebody is, relevant to what they are doing — they will be more palatable and less likely to be an unwelcome distraction.

As Andrews concludes, modern mall technologies mean you can have thousands of audiences of single people rather than single audiences of thousands of people.

“All buildings in the end are about people, and good design is about making things work for people” Henning Rassmuss, director, Paragon Architects

Let your feet do the walking in Sandton CentralR115m Bantry Bay luxury apartments on track

Sandton Central is becoming more pedestrian-friendly in

keeping with global urban trends. Traditionally many of the entrances to buildings in SA’s business capital were accessed via parkades. Now Sandton has a new generation of innovative commercial properties with welcoming street-level entrances, expanded pavement widths and pedestrian-friendly urban designs. The increased walkability should boost health, economic and environmental benefits for those with real estate investments, businesses or homes in this financial hub.

Recent improvements include the changes under way around the Gautrain Sandton Station, its outer face connecting a vibrant street-fronted retail area with those on foot — the station pavement has been expanded to a wider pedestrian zone of 5.2m in some areas and a new pavement design includes trees and balustrades. West Street’s pavements were improved for the City of Johannesburg’s EcoMobility World Festival 2015. They are now getting an additional makeover to improve pedestrian access.

City has added a pedestrian-friendly entrance with its Protea Court expansion. In 2018, Discovery moves to a new resource-efficient, sustainable 87,000m2

global head office building. Situated at the gateway to Sandton Central, its striking

Global property investment company Da’Realty is set to

transform the Bantry Bay residential coastline. On the site of the former Ambassador Hotel, new apartments in The Aurum development have price tags of up to R115m apiece.

Plans were approved in April for the landmark property to be developed into eight presidential residences, each occupying its own floor with private lift access. The building on the mountain side of Victoria Road will also be transformed into 15 luxurious apartments, capped by a four-bedroom 530m² penthouse.

Ahsan Hassan Darvesh, president of the 107-year-old, family-owned Darvesh organisation, bought the hotel after a lengthy stay when he

realised the potential of the spectacular cliff-face site above the Atlantic Ocean.

Da’Realty chief operating officer Lily Eskandari, an interior architect, said construction is scheduled to start in June. Occupation is set for September 2017.

Da’Realty has appointed Fabian Architects, engineering and construction group Murray & Roberts, and luxury home specialist Metle to maximise the potential of this exclusive address.

The apartments will include Armani Dada kitchens, dressing room fixtures and fittings by Molteni & C, Gessi sanitary ware, sound and visual systems by Bang & Olufsen and appliances by Gaggenau.

“The Aurum will redefine the concept of limited-edition living in SA,” says Basil Moraitis, Atlantic Seaboard area manager for Pam Golding Properties. They have an exclusive agency sales mandate, and 60% of development sales are secured.

Darvesh says The Aurum will be followed by a development in Clifton, with a goal of one niche boutique project to be rolled out annually in SA.

“The Aurum will redefine the concept of limited-edition living in SA” Basil Moraitis, Atlantic Seaboard area manager, Pam Golding Properties

“Today it is increasingly recognised that walkability is an important part of sustainable urban design” Elaine Jack, city improvement district manager, Sandton Central Management District

street entrance will welcome pedestrians.

Improved walkability makes a city more appealing to residents and businesses according to Elaine Jack, city improvement district manager of the Sandton Central Management District. Says Jack: “Much of Sandton’s road infrastructure was developed with only vehicles in mind, typical of the development of its time. Today it is increasingly recognised that walkability is an important part of sustainable urban design.”

Situated above and adjacent to Gautrain station, Kgoro Central is a new mixed-use green development that will create a pedestrian- and bicycle-friendly urban environment using wide, demarcated walkways, cycle paths and facilities. Sandton

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INTERNATIONAL Friday May 20 2016

WORDS: NICOLA JENVEY PHOTOS: ISTOCK

As Australia’s residential property market remains

a sustainable element in a long-term investment strategy, research shows that South Africans continue eyeing the country for global investments. This is despite potential political changes as Australia’s Turnbull government faces an unusual double dissolution election on July 2.

IP Global investment manager Scott Hagerman says the declining Australian exchange rate offers property investors access to the high-yield Australian market. The market withstood changes to international property ownership laws with major metropolitan areas continuing to grow.

IP Global’s director for Africa George Radford says strong property price increases in Sydney and Melbourne over the past few years have periodically ended. However, residential and commercial properties remain sound long-term investments, particularly as Australia sees record levels of Chinese investment.

GOOD QUALITY OF LIFEAustralian quality of life is among the world’s highest when considering purchasing power, pollution, house price-to-income ratio, living costs, safety, healthcare, commuting times and climate. According to numbeo.com Australia’s crime rate positions it 63 /117 countries (comparatively SA ranks third). Both Melbourne and Sydney are safe cities in which to walk even at night.

Australian appealAustralia’s changing political climate is not negatively affecting Sydney or Melbourne’s potential as covetable property investments

The country’s healthcare system operates on first-world terms.

According to Radford, the resilient Australian economy has experienced 22 consecutive years of positive growth averaging 3.7% annually, coupled with low unemployment rates and an interest rate environment at a 50-year low. “There is a structural undersupply of housing and a housing shortage in major cities, providing scope for capital growth, low vacancy levels and thus rental increases,” he says.

CHINESE INVESTMENT The government’s Foreign Investment Review Board annual report released in April shows China to be the largest source of outside investment to Australia’s real estate market in the year to July 2015. Hagerman says China’s investments totalled A$24bn: triple US levels, six times more than Singapore and twice the amount China invested in 2014.

“This comes when the appetite for Australian real estate is soaring internationally. The total value of approved foreign real estate investments grew 75% to A$97bn, and property accounts for half the foreign investment entering Australia,” he says.

MELBOURNEOver the past decade, the city has experienced an average growth in apartment prices of 5% a year and in the third quarter of 2015, prices increased 5.2% year on year. Radford says vacancy rates

in the past two years have dipped to 2.7%. In May 2015 the Victorian government announced a A$11bn rail link project to boost Melbourne’s public transport system.

The Knight Frank Prime International Residential Index (PIRI) 100 report 2015 ranks Melbourne sixth globally, with prices increasing 11.9%. Using prime residential prices from December 2015, a US$1m investment buys 116m2 in Melbourne and only 40m2 in Sydney.

Knight Frank residential research director Michelle Ciesielski throws into this Melbourne domain the mooted One Queensbridge development — touted as high-end luxury with arguably Melbourne’s most expensive apartments yet — and the planned super-skyscraper Australia 108, now under construction. Both developments have vantage points along the Yarra River and CBD views. Ciesielski predicts Melbourne residential prices will increase by 6% during 2016.

SYDNEYThe PIRI report ranks Sydney second after Vancouver, having achieved 14.8% growth in 2015. Ciesielski says over the past decade there has been limited new supply of prime residential properties in Sydney, specifically within close proximity to the CBD and with uninterrupted harbour views. There is continued demand from high net worth individual foreign buyers not meeting investment migrants’ criteria for Significant Investment and Premium Investment visas, who need to acquire new properties in line with foreign investment regulations.

Ciesielski says over the next 10 years three prime residential towers are proposed in the revamped Circular Quay precinct close to the renovated Circular Quay wharves and the new Sydney Light Rail terminal. Another four towers are proposed in Barangaroo suburb including a part of the new Crown Casino. Ciesielski maintains Sydney will remain a global best performer for prime residential price growth, with a 10% prediction for 2016.

DOWNSIDE TO THE BOOMHowever earlier this month Australian television programme Four Corners highlighted the knock-on effect of the housing boom on ordinary citizens. Reporter Ben Knight pointed out that a A$1m house used to be confined to super wealthy suburbs in the biggest cities. “Today this asking price is commonplace, even in the urban fringes with little infrastructure and lengthy commute times. In Melbourne, the median house price is A$700,000 or 10 times the average wage. In Sydney some suburbs are more expensive than Manhattan.”

Melbourne and Sydney:

Cost of living

A$80 — three-course restaurant meal for two

A$8 — 500ml beer in a restaurant

A$175 — monthly utilities (electricity, heating, water and refuse) for 85m² flat

A$68 — 10mbps internet monthly

Average monthly rental and purchase prices

A$3,125 — rent central Melbourne three-bedroom apartment

A$4,741 — rent central Sydney three-bedroom apartment

A$7,873 — central Melbourne per m²

A$13,501 — central Sydney per m²

Source: numbeo.com

“The total value of approved foreign real estate investments grew 75% to A$97bn, and property accounts for half the foreign investment entering Australia”Scott Hagerman, IP Global investment manager

On the corner of Trill and Eden roads, The Eden is around the corner

from Groote Schuur Hospital and UCT’s Medical Campus. It boasts great accessibility to Cape Town city centre, V&A Waterfront, the airport, Southern Suburbs and the University of Cape Town.

The development reflects the importance of conscious living, featuring considered materials, energy-efficient features and communal leisure spaces that enable a more sustainable, more community-minded sense of living. Says John Witter, CEO of Horizon Capital: “The Eden was meticulously designed to draw in the light. Excellent design was of utmost importance to us. We wanted to create a building that would be engaging and beautiful, while respecting the local context. Some of the features we incorporated to achieve this were generous terraces for each apartment — first, to provide shading into the apartments and allow owners a natural outlet from their internal apartment space, and second, to give the building depth and character.”

David Sedgwick, MD at Horizon Capital Residential, says: “The Eden contains the

A considered development

best elements of residential architecture, and will set a new benchmark in Observatory.”

GOOD FOR INVESTORSWith millennials opting to live closer to work, demand for residential offerings in urban hubs such as Observatory has increased. The residential markets where millennials are most concentrated reflect their decision to live in more socially conscious, creative environments. This shift has also led to a move to renting homes, instead of buying, paving the way for a booming buy-to-let market in Observatory. The development is situated within a UDZ tax incentive area, making it the perfect financial investment for buy-to-let investors. The purchaser is allowed to write off 55% of the cost (that is, VAT-inclusive purchase price) of their investment over an 11-year period, with 20% of the deductible amount written off in year one, and the balance spread evenly over the following 10-year period.

The major benefit to investors is that the large capital deduction is not automatically ring-fenced and generally creates a

substantial tax loss situation for the investor. This tax loss is allowed to be offset against other taxable income including a salary or other trade income. This can result in an attractive situation where the investor initially receives PAYE/tax back when filing their tax return. This is useful to fund any negative cash flow requirement during the first few years of a buy-to-let property.

THE DEVELOPMENTThe eight-storey building, of 73 apartments, consists of two-bedroom, one-bedroom and studio apartments starting from R1.46m. Each apartment is assigned secure parking, and there are also additional motorbike bays and a bicycle storage facility.

Generous terraces provide a seamless indoor-to-outdoor lifestyle, complemented by communal facilities like the fitness centre, laundry room and sky deck with pool and braai area. There is also fibre optic connectivity throughout, CCTV monitoring along with 24-hour security and concierge service, to ensure safety and convenience.

The Eden is set to break ground in August with completion in November 2017.

SHOW DEVELOPMENT HORIZON CAPITAL Friday May 20 2016

The Eden, Horizon Capital’s new residential development, is superbly located in Observatory, Cape Town, where everything you need is just around the corner

SHOW DEVELOPMENT HORIZON CAPITAL Friday May 20 2016

GET IN TOUCHCall 021 425 8586, visit www.TheEden.capetown, or e-mailsales@horizoncapital.co.za

The Eden in numbers

8 — storeys high

73 — apartments

28 — two-bed apartments

27 — one-bed apartments

18 — studio apartments

2 — lifts

2km — from UCT Upper Campus

450m — from UCT Medical School and Jammie Shuttle

ABOUT HORIZON CAPITAL

Horizon Capital, a boutique property fi rm, specialises in local and off shore property investment, management and development. Established 11 years ago, Horizon Capital has become a leading expert in commercial property. Their recently constructed fl agship commercial property, Ibis House, was the smallest four-star Green Star design-rated building in Africa, which pioneered the way for environmentally sustainable development, proving that green building can be fi nancially feasible on a smaller scale.

Horizon Capital Residential focuses on designing and developing high-quality residential buildings that meet the practical needs of future owners. The buildings represent a commitment to conscious living, where design is crafted with mindful intent to create spaces that suit the modern lifestyle.

“The Eden was meticulously designed to draw in the light. Excellent design was of utmost importance to us”John Witter, CEO, Horizon Capital

ATLANTIC SEABOARD TYSON PROPERTIES

BANTRY BAY, ATLANTIC SEABOARD CAPE TOWN SOLE MANDATE - R31 995 000THE TERRACES - PENTHOUSEDesigned for sophisticated living and entertainment on a Grand Scale. This stunning Penthouse perfectly positioned in the heart of Bantry Bay presents innovative use of over 643m2 of living space and the best of refined architecture. Exquisite living/dining area which opens on to an expansive terrace and lap pool. State-of-the-art kitchen with walk-in fridge. 4 generous size en-suite bedrooms, a library/ office, private garden and garaging for 4 cars. Lift access to all floors and excellent security. Excellent Value.

Gail Gavrill 082 777 6000gail.gavrill@tysonprop.co.za WEB REF: RL23389

FOCUS ON MSP Friday May 20, 2016

TYPICAL CASE STUDY IN BUH-REIN ESTATE: A 51m2, 2-bedroom, 1-bathroom sectional title property

In 2011 Launch price: R424,900Initial monthly rent: R3,200 per month

In 2016Current price: R699,900 (65% capital growth over fi ve years or 13% per annum)Current monthly rent: R6,500 per month (103% capital growth over fi ve years or 20.6% per annum)

Western Cape o� ers top options for living and investingRiaan Roos, CEO of MSP, has a sunny attitude to life, and especially to property investment in the Western Cape. He explains why — and how infl ation can be your friend

MSP has developed and delivered close to 6,000

properties since 2002, so people often ask my opinion on where they should invest in property. I may sound biased, but I put my investment focus on the Western Cape.

This province has a lot going for it. It is well managed and administered, and there is a clear trend of people moving from the northern parts of the country. As a result there is sustained demand which supports above-average capital appreciation.

From an investment viewpoint the statistics back this up. The Western Cape House Price Index rose by 12% year on year during the first quarter of 2016, beating other provinces in the country.

Added to this, the Tenant Profile Network (SA’s biggest rental tenant data bureau) tells us that the Western Cape has the highest percentage of residential rental tenants in good standing — at 88.7%. Quite frankly, that is where the buck stops for an investor.

STARTING IN PROPERTY INVESTMENTI am often asked how to get started in property, and my advice is don’t be intimidated. You might be surprised how simple it is. Choose a property that is affordable enough to use as a starting point for your portfolio. Compare various options, and identify which meet your objectives and budget. The right property is one with relatively low risk and a reasonable yield.

If I had to choose a specific development to live or invest in, it would be Buh-Rein Estate in Cape Town’s Northern Suburbs. It was recognised by the South African Planning Institute (SAPI) for its innovative layout and won the SAPI award in 2010. It continues to go from strength to strength, with sustained demand. We sell 25-30 homes a month in the various developments of the estate, and demand is not slowing, even after the interest rate increases.

MAKE INFLATION YOUR FRIENDOver the past 50 years other investments have

WORDS: RIAAN ROOS PHOTOS: SUPPLIED RIAAN ROOS

FOCUS ON MSP Friday May 20, 2016

fluctuated, but property values have shown consistent appreciation. This is partly due to inflation, which increases the replacement cost of a house — and thus pushes up its value.

So while everything gets more expensive, the value of your property and your property investments do too. Inflation is currently at 6.3%, but building inflation is even higher, at about 7.2%. In this way inflation benefits those who have committed to the residential market, but is a disadvantage for those who keep delaying getting in.

BUH-REIN ESTATEBuh-Rein Estate is a solid option for those wanting to live there or start a residential investment portfolio. There are about 3,000 people living here now — with 1,758 of the total of 3,299 properties still to be completed. This estate has it all — great pricing and central location. Residents don’t need to leave: there is a restaurant, tapas bar, conference centre, rugby field, outside gym, Bootcamp training, Tag Rugby, excellent security

and broadband internet. By the end of 2017 there will be a Checkers shopping centre situated within Buh-Rein Estate. Public transport services to and from the estate include Golden Arrow bus service as well as a private shuttle service.

The capital appreciation that we are seeing for Buh-Rein properties is excellent (see the case study above left).

The estate also offers a variety of property options, from apartments to double-storey townhouses, with pricing from R649,900 up to R2m. This ensures that there is an option for everyone.

MSP Developments work across varied socioeconomic communities, from historically disenfranchised areas to more traditional suburban developments, and even retirement housing.

For me, knowing that we have helped our clients create wealth through property ownership is the crowning success. I remain optimistic about the future.

MSP will be announcing some exciting new developments soon — both brick and mortar ones, and within the company itself.

GET IN TOUCH Call MSP on 082 511 1115, e-mail sales@msp.property and visit www.msp.property and www.buhrein.co.za

Office: 011 684 2995/6 • pamgolding.co.za/melrose-arch

To be part of the ultimate in luxury cosmopolitan living, please contact: Peet Strauss 083 675 1212 • Nino Boehm 082 320 2101

pstrauss@pamgolding.co.za • ninob@amdec.co.za

One-on-Whiteley, the new residential phase of Melrose Arch, is the ultimate in luxury cosmopolitan living. When

you invest in an apartment at One-on-Whiteley, you are investing in a secure, convenient and vibrant lifestyle.

One-on-Whiteley provides an amazing opportunity to be part of the success and attraction that this unique

new urban quarter offers. By owning an apartment in One-on-Whiteley, you open the door to 21st century living.

On Show at the Pam Golding Office - High Street, Melrose Arch.

Priced from R1.85 million. No Transfer Duty.

A SUBURBAN YET CENTRALLY LOCATED ADDRESS

View our 7015 show apartment (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

Soak up views at our show apartment 7015 and rooftop penthouse 12720

Luxury | Security | Landscapes | Golf | Serenity

Hotel (LHW) | Concierge | Amenities

THE HOUGHTONCIRCLE OF LUXURY

RESIDENTIAL SALES & MARKETING • RENTALS • DEVELOPMENTS • HOME LOANS

WESTERN CAPEIT’S A KINDA MAGIC

You will fall in love with this amazing apartmentsituated in prestigious Bantry Bay. Savour sunsetswith spectacular views from your own private baror from the comfort of your splash pool. Withgenerous accommodation, privacy and security.Between Sea Point and Clifton on the slopes ofLion’s Head and perched on the rocks overlookingthe Atlantic Ocean, lies one of Cape Town’s mostdesirable suburbs: wind-free Bantry Bay. Propertyin this secluded and protected suburb is highlysought after, lining the sea front bringing you as closeto the ocean as you can get. The famous beachesof Camps Bay and Clifton are mere minutes away,as are many of Cape Town's highlights. AskingR13.8 Million

BEDROOMS: 3 BATHROOMS: 3Kate Alexander 082 877 7425Shelley Bernstein 082 448 1117Lolly Unterslak 082 452 0905Web Ref: 102637

KWA ZULU NATALLOOKING FOR AN OUTSTANDINGBUSINESS INVESTMENT? JUSTTAKE OVER THIS PROFITABLEECO-FRIENDLY B&B IN BALLITO

This 4 star magnificent Eco guesthouse in theheart of Ballito has 8 en-suite, air-conditionedbedrooms all with beautiful sea views of the IndianOcean, plus pool. All bookings made via bookingsites allowing for ease of payment and full recordkeeping. This guesthouse is being sold as a fullturnkey investment plus a branded company vehicle.Contact us for detailed information.

BEDROOMS: 8 BATHROOMS: 8

Lucy Brown 084 602 5461Karen Turner 084 525 8686

Web Ref: 104073

GAUTENGMASTER CLASS

Pin sharp architecture is offset with organic textures. Entrance hall, lounge dining study, eat-inorganic kitchen. 3 bedrooms delux M-en-suite,outdoor shower, 2nd full bathroom. A delightfulwine tasting room leads from reception areas tocovered patio, swimming pool. indigenous garden+ Architectural organic textures Work fromhome office or guest suite. Separate cottage-Lounge, dining kitchen, bed + bathroom. Doublegarage, carport, staff accommodation. R4.2 MillionExcluding VAT.

BEDROOMS: 3 BATHROOMS: 2

Colleen Tappin 082 659 8013Johannesburg North 011 880 3550

Web Ref: 101660

BALLITOR11.749 million

BANTRY BAYInviting buyers from R12 499 000

LINDENR4.2 million Ex Vat