south african property review relaunch issue may 2013

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

PROPERTYR E V I E W

May/June 2013

Welcome to the 45th SAPOAInternational Convention

and Property Exhibition

EAST AFRICALand of promise?

REITs FOR THE UNLISTED SECTORWe speak to SAPOA’s incoming president

URBAN REGENERATION

Capital in, profits out

South African P

roperty Review

45th SA

PO

A International C

onvention and Property Exhibition M

ay/June 2013

PROUD SUBSIDIARY OF EPS

www.jhi.co.za

011 911 8000

2720_JHI_SAPOA Prop Review Add_May_FRONT INSIDE COVER_PRINT.indd 1 2013/04/29 10:32 AM

1SOUTH AFRICAN PROPERTY REVIEW

from the CEO

May is SAPOA Convention month

SAPOA CEO Neil Gopal welcomes delegates to this year’s convention in Sun City

The SAPOA International Convention and Property Exhibition is the centrepiece of our industry’s social

calendar. It plays an important role in looking back at the past year and setting the objectives for the year ahead; it brings together industry players and thought leaders to discuss all things property-related; and it provides delegates with an opportunity to make meaningful networking connections that translate into new and continued business.

The things that attract delegates to the convention include golf, networking opportunities and the Innovative Excellence Awards, which recognise excellence in property development and design. The roster of national and international keynote speakers also continues to draw the crowds – and this year will be no different. The speakers include Judge Dikgang Moseneke, deputy chief justice of the Constitutional Court of South Africa; Patricia de Lille, mayor of Cape Town; Dr Sedise Moseneke, SAPOA immediate past president; Estienne de Klerk, executive director of Growthpoint Properties and SAPOA’s incoming president; Jeremy Kelly, director of global research programmes at Jones LangLaSalle; David Cooke, director at Actis; Fergus Mackintosh, head of real estate for Africa at Standard Bank; Patrick Sumner, head of global indirect property at Henderson Global Investors; Elias Masilela, CEO of Public Investment Corporation; and Richard W Greninger, vice chairperson of BOMA (USA).

We look forward to listening to, engaging with, learning from and considering this year’s impressive line-up of speakers.

My thanks go to the SAPOA Convention Committee, my team and our sponsors for organising and making this year’s Convention possible. We trust you will enjoy the three-day event.

Neil Gopal

2 SOUTH AFRICAN PROPERTY REVIEW

contents

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

Abland

Abreal

Oilgro

Editor in chief Neil Gopal Editorial advisor Jane Padayachee Managing editor Mark Pettipher Consulting editor David A Steynberg Deputy editor Candace King Copy editor Ania Rokita

Sales Riëtte Stevens Finance Susan du Toit Contributors Adv. Portia Matsane and Martin FergusonPhotographer Michael Glenister

DISCLAIMER: The publisher and editor of this magazine give no warranties, guarantees or assurances and make no representations

regarding any goods or services advertised within this edition. Copyright South African Property Owners’ Association (SAPOA).

All rights reserved. No portion of this publication may be reproduced in any form without prior written consent from SAPOA.

The publishers are not responsible for any unsolicited material.

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


PROPERTYR E V I E W

May/June 2013

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

t: +27 (0)11 883 0679 f: +27 (0)11 883 0684 e: [email protected]

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

4 News13 Education, training and development16 Legal update20 Eye on Africa Africa’s new golden child32 Development Cape Town’s Foreshore flyovers: part 234 Interview Estienne de Klerk36 Interview Sedise Moseneke38 Urban renewal Reinventing the urban sprawl48 Feature Beauty and the priest56 45th International Convention61 Interview James Ehlers62 Interview Johan van der Merwe64 Off the wall A touch of Tolkien


PROPERTYR E V I E W

May/June 2013

Welcome to the 45th SAPOAInternational Convention

and Property Exhibition

EAST AFRICALand of promise?

REITs FOR THE UNLISTED SECTORWe speak to SAPOA’s incoming president

URBAN REGENERATION

Capital in, profits out

ON THE COVERAirtel Tanzania Ltd’s head office, this 12,582m2 building was funded by the National Bank of Commerce Ltd, a subsidiary of Absa Bank Ltd


news

In line with its tradition of supporting property development that aids local government’s infrastructure initiatives, Nedbank

Corporate Property Finance KwaZulu-Natal recently provided a R273-million loan to fund the construction of KwaMnyandu Shopping Centre, an exciting new retail development in Umlazi’s booming KwaMnyandu growth node. Developed by Carlos Correia and his team (who have developed several ground-breaking retail developments in and around South Africa), KwaMnyandu Shopping Centre will feature more than 23 000m² of GLA with anchor tenants Shoprite and Pick n Pay. Other tenants will include Truworths, Identity, Markham, Totalsports, Exact, Jet, Edgars Active, Sterns, Foschini, Ackermans, Pep, Mr Price Apparel and other KZN-based fashion companies.

The grand loan will assist the developers in completing construction of the 34 000 bulk square metre development. The centre is situated on land leased from the Passenger Rail Agency of South Africa (PRASA) and adjoins the KwaMnyandu railway station – a feature that will surely increase the centre’s foot traffic. KwaMnyandu Shopping Centre will not only provide top-notch retail to an under-serviced area, it will also assist in establishing sustainable community upliftment through local job creation and infrastructure support. “Nedbank has long recognised the immense value that can be unlocked through forward-looking commercial partnerships that have the inherent potential to deliver lasting social sustainability. KwaMnyandu Shopping Centre’s position in the heart of a vital growth node identified by the eThekwini administration makes this a development with significant long-term community upliftment opportunities,” notes Anand Joseph, regional executive for Nedbank Corporate Property Finance in KZN. “The local government has extensive development plans for the area, which include a proposed mix of commercial and residential developments that should see significant economic growth in the area in the coming decade, with more than 200 000 bulk square meters approved by the eThekwini Municipality for the KwaMnyandu node.”

Launched on 1 March 2013 by the Ethekwini Municipality, the KwaMnyandu node is not only a hot spot for property development but also a focal education and sporting-development node within the urban-regeneration plans due to its close proximity to the Mangosuthu University of Technology and the King Zwelithini Stadium. KwaMnyandu Shopping Centre is expected to open just before Easter 2014. +27 (0)31 364 2082, Nedbank.co.za

Uplifting retail therapy

Residential bright spots

Despite the slowdown in the residential-property

development market, there have been “bright spots in the market and indications are that the development market is in the process of a gradual recovery”, says Pam Golding Properties’ (PGP) Hyde Park region development manager, Peet Strauss. “Recently we have seen a marked increase in activity from developers who are achieving good value from rentals. In the past, many of these developers would have focused exclusively on selling their properties. Now they have shifted focus and are taking a longer-term view in this regard.

The buoyant rental market has encouraged a number of creative, smaller developers (who were unable to weather the challenging times) to look for new opportunities to re- enter the market.” PGP expects to see residential development property enter into another demand cycle over the next two years, which augurs well for developers. “Some developers are already seeking suitable land in anticipation of this, with a view to completing their developments by 2015,” says Jonathan Davies, PGP’s joint- area manager, Hyde Park office. +27 (0)11 684 2996, Pamgolding.co.za

Home is where the school is

Amid the country’s education-system woes,

choosing an exceptional school for one’s children is becoming a major trend. This in turn is influencing where families are purchasing their homes. With the Western Cape’s sustained academic results as one of the top two performing provinces in South Africa over a number of years, families and home-buyers are flocking to the province, especially in the areas where the top schools are situated. “The sector of the market that has school-going children or undergraduate university students is definitely driven to seek a home that gives them entrance and easy access to preferred schools,” says PGP’s MD for the Western Cape Metro region, Laurie Wener. “It’s a major factor in their final purchasing decision, and in areas such as

Rondebosch, Newlands and the City Bowl, the residential market is strongly influenced by the area schools, which have built up sterling reputations over many decades.” Wener notes that the provincial government’s three-year infrastructure plan for education will further boost the educational offering in the Western Cape, as well as the number of areas able to attract family buyers. “Education MEC Donald Grant announced in October last year that the province would be building 72 schools over the next three years – 46 of these being replacements for existing schools, and 26 being brand-new institutions. Areas that will benefit from the new schools include Kuils River, Hout Bay, Mitchells Plain, Durbanville, Brackenfell and Strand.” +27 (0)21 673 4200, Pamgolding.co.za


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news

PGP enters Namibian property market

First apartments for new Midrand urban-growth node

In recent years, Namibia has received increasing attention and interest from South African home-buyers seeking homes in Windhoek and

leisure and residential properties in Swakopmund. At a recent event in Windhoek, Dr Andrew Golding, chief executive of the Pam Golding Property group said, “With similar banking and property laws, Namibia is a ‘familiar’ environment for South African investors. Residential property can be purchased and sold without restrictions, and offers sound returns. The appeal of the Namibian property market is further aided by the fact that Namibia is part of the Southern African Customs Union (SACU) and the Southern African Development Community, which

plays a significant role in facilitating trade between the countries. All indications are that this trend is likely to continue for the foreseeable future. Further positive news is that the Namibian economy is showing resilience in the face of the global economic challenges, and we see the potential not only for growth but increased cross-border trade with regards to the Namibian and South African housing markets.” The event officially marked the successful launch of the new PGP operation in Namibia, and the opening of a second PGP office in February 2013 in Swakopmund. A third PGP office is also planned for Walvisbay.+264 (61) 302817, Pamgolding.co.za

Midrand’s new growth node, Grand Central, welcomes

the first phase of Birchfield, a 204-apartment development that consists of 60 prime one- and two-bedroomed units that are affordably priced and inclusive of all costs. Birchfield is a first for the area and follows extensive research done to ensure the location, product and price fit with the demand for affordable and convenient housing in the area. Situated within walking distance of the Gautrain station, bus and taxi services, Birchfield offers a new urban lifestyle that gives

residents the opportunity to commute without using a car. Seeff Sandton/Midrand projects director Glen Fisher says the development features top security and offers undercover parking for residents as well as additional visitor parking.

The apartments are sized at 41,8m2 (one-bedroom units) and 64,6m2 (two-bedroom units). Prices start at R460 000 for one bedroom and R630 000 for two bedrooms.+27 (0)11 784 1222, Developmentsseeff.co.za

Stand-alone PnPs meet developing retail trends

In an effort to meet growing consumer demands for quick,

easy access to retail centres in both metropolitan and outlying areas, Pick n Pay has recently developed two stand-alone retail centres in Chatsworth, KwaZulu-Natal and Roodepoort, Johannesburg.

These upmarket “green” stores feature exceptional fresh food, more imported lines than any other Pick n Pay, and specialist ranges unique to these flagship stores, with additional features such as

a wine boutique and cheese room within the Pick n Pay.

According to Marc Edwards, the managing director of Spire Property Management, there is a growing trend for such stand- alone centres in South Africa. “Our view is that similar shopping centres, where the main food retailer occupies the majority of the space with eight to 10 complimentary line shops, will grow throughout the country,” he says. “Shopping centres such as these allow consumers easy access to convenience stores as

well as ample parking for a quick visit or a longer monthly shop.” Edwards says there are evident benefits for the tenants in these Pick n Pay developed centres. “The biggest benefit is the proximity of the Pick n Pay and the access to the foot traffic generated by the Pick n Pay. Another benefit is tenant exposure, due to the layout of these centres. There are no ‘tucked away’ spaces of ‘dead’ retail areas that you may find in larger shopping centres.” Picknpay.co.za

Village living

Nestled in the Boland’s scenic Wellington valley

within the acclaimed 180- hectare Diemersfontein Wine & Country Estate, The Village estate is beginning to come into its own, with the first 15 owners taking occupation of their homes.

Furthermore, PGP has reported that 23 more properties have been sold and are either under construction or due for construction soon. Phase One’s 19 properties have already sold out, while only 12 remain available for purchase in Phase Two.

According to PGP’s project manager for the development, Louise Varga, several factors have ensured such demand, including the development’s scenic central location, relative proximity to Cape Town city centre and airport, security and the presence of an on-site private school.

PGP has the exclusive mandate to market the homes, which are sold on a plot-and-plan basis, and priced between R1,095-million and R1,55-million.

The Village features guest accommodation, a restaurant, beauty spa, swimming pool and walking trails.+27 (0)21 873 4557, Pamgolding.co.za


news

Greening the industrial sector

Nedbank recently provided a R192-million loan to the Improvon Group for the development of Gosforth Business Park, an

upmarket, sustainable industrial park situated in Gauteng. The loan covers the acquisition and reticulation of land, and the development of Phase One – a 20 817m² warehouse with ancillary offices. “This park, from an exposure point of view, will be the first such business park one comes across when entering Johannesburg from the south, off the N3 highway. It aims to raise the high standards of all the other business parks and estates along the N3 from Johannesburg to Pretoria,” says Ken Reynolds, regional executive of Nedbank Corporate Property Finance in Gauteng. “The client has earmarked the property for the development of five warehouses, offering a total GLA of 76 810m², to be developed over the next four years in four phases. The development offers opportunities for bulk distribution centres combined with a strong office and commercial component, and will accommodate five specification-built warehouses. Reticulation has commenced on site and tenants are still to be secured.” Most importantly, Gosforth Business Park highlights the initiation of a “Green Precinct” that is being developed with cutting-edge technology and building practices that are destined to become an industry standard. “We are proud to say that Gosforth Business Park’s green features take sustainability to a new level,” says Stefano Contardo, developments executive at Improvon. “This is a particular bonus for tenants, who are able to fulfil their moral obligations to reduce their environmental footprint at a minimal cost. The Green Precinct at Gosforth Business Park is set to be a flagship development for the Improvon Group.”+27 (0)86 133 2222, Improvon.co.za

Regarded as one of Gauteng’s fastest growing nodes,

Centurion is set to welcome a new shopping centre, thanks to a hefty loan from Nedbank Corporate Property Finance. The bank has concluded a R1,36- billion finance agreement with Billion Property Developments for the development of the new 73 588m² regional Forest Hill Shopping Centre in Monavoni.

Situated on the N14 highway on the western periphery of Tshwane, Forest Hill Shopping Centre will offer an abundance of retail and leisure options with 175 retail outlets, an eight- cinema complex and an ice rink. What’s even more exciting is that future phases will include a 20 000m² value centre, offices, vehicle showrooms, residential homes and two hotels. This will

all form part of Forest Hill City, a new multifunctional mega precinct. “Forest Hill’s tenant mix and development plans demonstrate an understanding by the developers of the growing trend among South Africans whose mall visits transcend mere shopping outings and have become family entertainment outings,” says Ken Reynolds, the regional executive of Nedbank Corporate Property Finance in Gauteng. By capitalising on this trend through accessibility, an appealing tenant mix and contemporary design, the centre will almost certainly secure sustainable success and ensure its continued growth and profitability into the future.” +27 (0)11 511 5335, Billiongroup.co.za

Billion-rand loan for Billion

Umhlanga’s office-space demand

More and more office users, especially corporates,

are seeking office space in the growth node of Umhlanga because of the area’s appealing, modern and secure premises situated in a bustling business hub. “Ideally positioned within easy reach of key routes and set in scenic surrounds, this prime, sought-after location continues to demonstrate resilience despite ongoing economic challenges that impact the business sector,” says Rob Moran, regional director for JHI Properties.

“The Umhlanga area remains in demand but budget-conscious, good-quality space in stand-alone buildings with sea views is hard to find,” says Chantal Williams, commercial and retail property broker for JHI Properties in KwaZulu-Natal. She notes that leases in this area commonly range from 60m2 to 200m2, with a few 300m2 enquiries coming through. Asking rental rates vary from about R95 to R145 per square metre.

One major deal was that of a concluded lease for 881m2 for South African business and technology solutions company EOH, which has relocated from La Lucia Ridge Office Estate to Cranbrook Crescent.

Looking ahead, Williams believes that the outlook for 2013 remains challenging, with price-conscious tenants watching their pockets. “Good- quality properties with ample on-site parking, good security and exposure remain in high demand,” she says. “From a retail perspective, the demand definitely exists – but landlords are seeking blue-chip tenants.

“There is healthy demand for commercial property, primarily with regard to rentals, while from an investment or end-user perspective, well- priced properties continue to change hands because property is seen by many as a stable long-term investment.” +27 (0)31 534 2522, Jhi.co.za

Strategic software solution

MDA Property Systems and ARGUS Software have

teamed up in an effort to provide African property companies, funds and service providers with an end-to-end solution. “We are very excited about this partnership, as the two companies complement each other well and do not compete,” explains Willem Potgieter, the managing director of MDA. “We have similar target clients but while MDA specialises in property management, accounting and facilities management, ARGUS’s solutions are focused on

forecasting. ARGUS develops solutions exclusively for the commercial-real-estate industry and we constantly make sure that our leadership supports our clients’ ability to stay ahead of the game. ARGUS solutions are about forecasting – all their solutions are based on today going forward. The solutions take a situation today and forecast for X number of years, with the solutions providing sophisticated algorithms to forecast future values.” +27 (0)86 100 2231, Mdapropsys.com

36266_sapoa_210x297_fin.indd 1


news

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news

eMalahleni’s booming property market

Known as the place of coal, eMalahleni is experiencing

strong growth in its property market, and a more diversified economy than before. “Having proven effectively recession-proof, the town of eMalahleni is poised to experience further rapid growth, providing good buying opportunities for those who acknowledge the medium-to-long-term value of residential property as a sound asset class,” says Dr Andrew Golding, chief executive of PGP.

“Having doubled its population over the past decade as a result of business and job opportunities and economic stability, eMalahleni has grown into a world-class international business destination as home to large organisations such as BHP Billiton, Anglo American, Exxaro, Eskom, Renova Group, SABMiller, Komatsu and Xstrata,” says Elisme Swart, PGP area principal in Middelburg, Lydenburg and Dullstroom. Several factors have contributed to the area’s property- market boom, including former property-growth catalysts Eskom

and the mines, which have now divested themselves of their property holdings, transferring ownership to private individuals. A future growth surge for eMalahleni will come from factors such as a fifth power station, stepped-up coal mining and new coal-mining investments, and the continuously increasing volume of goods being transported to and from South Africa via the Maputo Corridor.

With a constant influx of travellers making their way through the city to popular holiday destinations, eMalahleni is also experiencing a surge in retail development. Furthermore, there has been an increase in commercial and industrial

property developments. To cater for the rapid growth of eMalahleni, new residential developments are springing up, with some 500 to 600 units set to be constructed within the next 12 months, mainly in the R560 000 to R1,6-million price range.

The latest trend to emerge in the residential property market is that of residential estates such as the upmarket Bankenveld golf estate on the banks of the Witbank dam, where stands have been selling at an average of R550 000, and which has been so successful that a second estate is now being planned in the area. +27 (0)13 656 1602, Pamgolding.co.za

PE’s growth potential

Already existing as an economic hub, Port

Elizabeth’s strategic position is strengthening due to increased activity in and around Coega, which has led to the securing of future residential property growth. “With its own general cargo port, nearby Coega IDZ (Industrial Development Zone), airport, established transport infrastructure and appealing residential areas, Port Elizabeth offers home-buyers buying opportunities with the potential for sound return on investment in solid bricks and mortar,” says Dr Andrew Golding, chief executive of PGP. Ian Olivier, well-known local real-estate specialist who is now PGP’s area principal for Port Elizabeth, adds, “The housing market in Port Elizabeth is definitely more active than last year. Enquiries from buyers have increased and we are seeing good show-house attendance for correctly priced homes in all price brackets – some of which are selling within hours of listing. Buyer interest remains mainly for primary residences among those upgrading to better homes or areas, those scaling down in size, and rising interest from first-time buyers. As the economy improves, we anticipate that the market will experience further activity.” Port Elizabeth is also expecting infrastructural developments as well as the development of a new urban node, thanks to the retail and lifestyle Baywest development located 10km from the CBD.+27 (0)41 373 9955, Pamgolding.co.za

Industrial users seek space and exposure

The latest trend among large industrial users is to seek out

and secure spacious premises as well as accessible locations with high traffic exposure, in order to accommodate growth in the warehousing, distribution and production sectors. Industrial users ranging in size from around 5 000m2 to 10 000m2 are looking for desirable locales that are not only clean and modern but which

also offer large yards and turning circles for trucks. According to Jonathan Klimek, leasing consultant for JHI Properties in the Johannesburg area, these large industrial tenants look for properties where they can occupy an entire building or buildings for security and convenience reasons. “In the current market, certain businesses may find it difficult

to find modern industrial space that’s suitable to their requirements,” he says. “They may be expanding their business or find themselves currently situated in an older building that does not offer them the space or flexibility they require.

“Generally, the current trend is to occupy less office space, a surplus of which represents wasted space and therefore unnecessary cost.” One prime example is a block consisting of 6 825m2 of A-grade warehousing that has become available in Mirabel Industrial Park in Pomona. With good security, the space is available to let at a rental of R52 per square metre. +27 (0)11 911 8000, Jhi.co.za


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education, training and development

Property-related programmes

Martin Ferguson answers the often-asked question: “What is the role of an education department at a membership-based property association such as SAPOA?”

SAPOA members and the property industry

as a whole provide us with operational training and development needs and requirements to have competent and knowledgeable employees to support their business and operational strategies. The Education, Training and Development Department, in conjunction with various universities and other

professional bodies, design and develop educational programmes to address those industry needs.

All of SAPOA’s educational programmes are quality-assured by the universities through the Higher Education Quality Committee of the Council for Higher Education. Our programmes are also presented in partnership with the various universities. The Education, Training and Development

Department reviews and updates these programmes every three to five years to ensure they incorporate the changes in the property industry and remain relevant at all times.

The SAPOA educational programmes are designed to create a career path for various employees in the commercial and industrial industry, from entry-level through to executives.

The Education, Training and Development Department designs and provides property-related training, workshops and seminars to SAPOA members and non-members

Breakfast workshops and seminars SAPOA runs various breakfast workshops and seminars for members nationally, and provides the ideal forum for everybody in the property industry to keep up to date with current industry trends.

Several of the SAPOA educational programmes

carry CPD credits for those delegates who are currently members of a professional body that falls under the auspices of the Council for the Built Environment (CBE).

SAPOA has applied to the EAAB to have all its educational programmes evaluated for CPD points on the EAAB CPD Matrix. The EAAB is becoming the professional body for real estate.

The South African Institute of Architects has allocated CPD

credits on the SAPOA PDP Educational Programme in several of its CPD categories. We have a pending application with the Association of South African Quantity Surveyors for CPD Hour Credits on the PDP Educational Programme.

SAPOA educational programmes

SAPOA Bursary FundIn late 2009, SAPOA established and launched a bursary fund known as the SAPOA/PARETO Bursary Fund, and started off with 12 students on full bursaries.

The Trust is managed by trustees who include Pareto Limited, SAPOA, Growthpoint Properties and JHI Properties. All of the administration is handled by the SAPOA Education, Training and Development Department. We currently have six students left on the bursary scheme.

Student On-boarding ProgrammeThe purpose of the On-boarding Programme is to assist final-year students, SAPOA/PARETO Bursary Fund students and interns who will be starting their employment careers in the property industry in understanding:l The basics of the commercial property Industry;l Workplace conduct and business etiquette;l Basic practical and theoretical tools to equip and familiarise the students when they join the working world.

This programme is presented by members of the Education, Training and Development Department.

Graduate Listing ProgrammeThe Graduate Listing Programme is a service to the industry where SAPOA introduces students and SAPOA members to each other for the purposes of full-time employment, graduate programmes and internship programmes.

The Graduate Listing Programme is currently active on the SAPOA website under the tab HRD. Graduates can register and list their CVs on the website.SAPOA members can access the Graduate Listing through the website.

SAPOA Property Student ForumThe SAPOA Property Student Forum is represented by students from various universities, especially in the built environment, to promote property education and careers in property.

The forum creates an interface between property students and the property industry.

This generation of students represents an exciting one, tipped to add more value to global development across the board than any generation before it.

It is this potential, fresh ideas and new perspectives that we tap into.

The Education, Training and Development Department provides services to promote and create commercial property awareness and careers in property. These services are:

Continuous professional development (CPD)



SAPOA participates in career daysSAPOA actively participates in industry career promotions at high school and university level on a national scale.l The objective of the exhibitions and promotions is to promote different careers in the property industry. l The SAPOA regions must identify five schools every year. These schools will be visited during the year, and presentations will be made to learners from Grade 10 up to Grade 12 to introduce them to the commercial property industry (including the various possible careers). SAPOA has developed a “Careers in property” booklet that is handed out at these career days.

For all the support you’ll ever need

iSeleSele Property Academy was the first service provider to be accredited for the Further Education and Training Certificate (FETC) Commercial Property and Facilities Management NQF Level 4 in 2012. iSeleSele is also accredited for the Real Estate NQF Level 4 and Level 5 qualifications for agents and principals.

This made a partnership between SAPOA and iSeleSele a logical step.

Currently iSeleSele is in the final stages of completing the Commercial qualification for companies such as Broll,

JHI and Old Mutual Properties. The Eris Property Group will also be starting the qualification shortly.

Learners have the option of completing one of three specialised electives in the qualification: property brokering, property management and facilities management.

The Commercial qualification is rolled out nationally at iSeleSele offices in Durban, Cape Town, Port Elizabeth and Johannesburg; or at any agreed client venue outside of these centres.

Thirteen JHI Properties leasing and sales consultants were the first in the Western Cape to train for the SETA-accredited commercial NQF Level 4 qualification (ID79626). The EAAB and Services SETA-accredited training was presented at JHI offices at Tyger Waterfront, Cape Town by Salma le Roux of iSeleSele Property Academy. ABOVE Back row, from left: Cliff Toerien; Liezel Conradie; Phillip Briedenhann; Selwyn Schaon; Kim Fraser; Nicol van Wyk; Martin BothaFront row, from left: Salma le Roux (iSeleSele); Amanda de Lange; Erica Jonkers

First accreditation of FETC in 2012



If you have not signed up for your required qualification or received exemption yet, the Estate Agents Affairs

Board (EAAB) will not issue you with a 2014 Fidelity Fund Certificate.That also means that you will not be able to practise your profession next year.

The deadline for the qualification or proof of exemption is 31 December 2013. This date has already been extended from 2011, and there is no likelihood that we will receive another extension.

All property practitioners from all disciplines (referred to as “estate agents”) who have any involvement in marketing of property need to hold a Fidelity Fund Certificate. The Estate Agents Affairs Act 112 of 1976 defines an estate agent as follows:

For purposes of this Act the definition of “Estate Agent” in Sec 1(a) means any person who for the acquisition of gain on his own account or in partnership, in any manner holds himself out as a person who, or directly or indirectly advertises that he, on the instructions of or on behalf of any other person

i) sells or purchases or publicly exhibits for sale immovable property or any business undertaking, or negotiates in connection therewith, or canvasses or undertakes or offers to canvass a seller or purchaser therefor; or ii) lets or hires or publicly exhibits for hire immovable property or any business undertaking, or negotiates in connection therewith, or canvasses or undertakes or offers to canvass a lessee or lessor therefor; or iii) collects or receives any moneys payable on account of a lease of immovable property or any business undertaking; or

iv) renders any such other service as the Minister on the recommendation of the board may specify from time to time by notice in the Gazette;For the purposes of this Act a principal means the definition

as above, and 1(b) includes any director of a company or a member who is competent and entitled to take part in the running of the business and the management, or a manager who is an officer, of a close corporation which is an estate agent as defined in paragraph 1(a).

From the above it is clear that this includes brokers, managing agents, rent collectors, canvassers, developers and asset managers who are involved in their own marketing, and even property company directors as well as senior management.

For more detailed information please refer to the EAAB website (www.eaab.org.za). Additionally, SAPOA has arranged for a dedicated EAAB staff member to answer all of your education questions. You may contact Audrey Mohajane on 011 731 5601 or email her at [email protected]. Audrey will also be able to advise you whether you qualify for exemption.

Please note that, in order to apply for your 2014 Fidelity Fund Certificate, you will need to have completed the relevant qualifications – by 31 December 2013! So don’t delay; your career could be in jeopardy. Get to work on your qualifications immediately.

In fact, TODAY is a good day to start – or you can do so by visiting the EAAB stand at the SAPOA convention in the Exhibition Hall at Sun City. EAAB staff will be there to answer all of your questions.

The deadline for your 2014 Fidelity Fund Certificate is almost here. No qualification, no FFC

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legal update

All things legalThe legal update highlights judgments, Bills and key decisions

that have been passed, published and made in as far as they

may affect the property sector or members of SAPOA in their

various capacities. Citations have been provided to ensure

members can fully apprise themselves of the full facts of

relevant reported matters

By Portia Matsane

JUDGMENTS1. Competition Relevant Market and Impact on CompetitionRedefine Retail (Pty) Ltd v Sanlam Life Insurance Ltd (111/LM/Dec12) [2013] ZACT 10 (5 March 2013)The Competition Tribunal had to consider the relevant market and impact on the competition. It was the Commission’s conclusion that there was a horizontal overlap between the activities of the merging parties, since both parties were involved in the provision of rentable retail space in regional shopping centres. The Commission defined the relevant geographic market as a 10-to-15-kilometre radius from the target property. It was, however, the Tribunal’s decision not to take a definitive view on the exact parameters of the relevant geographic market and duly concluded that if a 10-to-15-kilometre radius from the target

property was considered, then there was no overlap between the activities of the merging parties relating to rentable retail space in regional shopping centres. However, if a broader geographic market was considered, there was a geographic overlap – but the merged entity’s market share remained small. The transaction was approved unconditionally

2. property ratesExemption from rates in terms of the Rates ActeThekwini Municipality v Ingonyama Trust: Case CCT 80/12 (as per the court’s published media summary)eThekwini Municipality (the Municipality) brought an application in the KwaZulu-Natal High Court, Durban (High Court), seeking a declaration that the Ingonyama Trust (the Trust) property falling within the jurisdiction of the Municipality is ratable for the period between May 1996 and June 2005. The Trust opposed the application and contended that the land was state property, which was exempt from being rated in terms of the Rating of State Property Act (the Rating Act). The High Court found that the property in question was not state property and held that it is therefore ratable. The Trust appealed to the Supreme Court of Appeal. The Court held that the property in question constituted state property that was exempt from rates and overturned the High Court order.

In Constitutional Court the Municipality sought leave to appeal against the judgment of the Supreme Court of Appeal. The Municipality’s application was two months late. Therefore it had to apply for condonation of the delay. The Municipality then had to satisfy two requirements: it was required to provide a satisfactory explanation for the delay and also to show that the interests of justice favour the grant of condonation of the delay.

TWP Head Office,Melrose Arch,

Johannesburg

legal update


legal update

In a unanimous judgment by Jafta J, the Court rejected the explanation given by the Municipality for the delay because it was unsatisfactory, and held that it was not in the interests of justice to grant condonation and leave to appeal. The Court further held that there were no prospects of success because the land in question constituted state property and was therefore exempt from rates in terms of the Rating Act.

3. Development anD planning lawsSub-division and Zoning ApplicationLagoonbay Lifestyle Estate (Pty) Ltd v The Minister for Local Government, Environmental Affairs and Development Planning of the Western Cape & others (320/12) [2013] ZASCA 13 (15 March 2013) (as per the court’s published media summary)Lagoonbay Lifestyle Estate (Pty) Ltd (Lagoonbay) is the proposed developer of a rather ambitious development project in George. It envisages a gated community spanning about 655 hectares, which will consist, inter alia, of two golf courses, single residential houses, fractional-title lodges, a wellness centre, spa and clubhouse precinct, a commercial centre, a conference centre and a private nature reserve. The projected cost of the development is in the region of R5-billion. Given its vast scale, Lagoonbay required approval for the project in four different phases. Two of these – an amendment to the George and Environs Structure Plan, and a rezoning and subdivision application – were relevant for the purposes of the appeal. When Lagoonbay’s application for the amendment of the structure plan came before the then Minister for Local Government, Environmental Affairs and Development Planning of the Western Cape (the Minister), she provisionally approved the application. However, when doing so, she made it a condition of her approval that Lagoonbay’s future zoning application shall be subject to approval by the provincial government.

Thereafter Lagoonbay’s rezoning and subdivision application was approved by the George Municipality. But acting in accordance with the condition imposed by the Minister, the Municipality then forwarded the application to the present Minister, who refused to approve it. Aggrieved by the refusal, Lagoonbay applied to the Western Cape High Court for various declaratory orders. It cited the Minister as the first respondent, the George Municipality as the second and the

1. agricultural produce marketing agencies Draft BillThe Minister of Agriculture, Forestry and Fisheries published the draft Agricultural Produce Marketing Agencies Bill 2013 for public comment. The purpose of the Bill is to:lProvide for the continued existence and name change of Agricultural Produce Agents Council to Agricultural Produce Marketing Agency;lProvide for the continued existence and name change of the Fresh Produce Agents Fidelity Fund to Agricultural Produce Marketing Agency Fidelity Fund;lProvide for the constitution of the Board of the Agricultural Produce Marketing Agency;lProvide for broad objects and functions of the Agricultural Produce Marketing Agency;lMake certain provisions applicable to all or certain categories of agricultural produce agents, auctioneers, wholesalers and brokers;lProvide for the regulation of fresh-produce markets;lProvide for compulsory training, registration and accreditation of all agricultural produce agents, auctioneers, brokers, wholesalers, salespersons and booking clerks; and

lRepeal the Agricultural Produce Agents Act, 1992.Formal submission date: 27 May 2013

2. national Credit amendment Bill (private member’s Bill)The Bill seeks to:lTo clarify the definition of consumer to avoid unintended applications of the Act so that the Act applies only in respect of consumers at the retail level or as end users, which will make the Act consistent with international and comparative practices; andlTo provide economic relief to deserving consumers under debt rearrangement by giving the discretion to a Magistrate (which would be acting on the recommendation of the relevant debt counsellor) to suspend the accrual of interest on the debt(s) in question for a period of up to five years, if granted under the circumstances of the case, so as to avoid that the cost of serving such debt becomes in itself beyond the debtor’s financial capabilities, especially in the case of increased interest rates or diminished earning capacity on the debtor’s side on account of the current economic downturn.Formal submission date: 1 May 2013 (all day)

BILLSthe following Bills were published and require public comments before the stated formal submission dates. members of sapoa are hereby provided with a summary of the Bills. sapoa will formally provide comments thereto before the relevant timelines.

Cape Windlass Environmental Action Group – an environmental organisation committed to the protection of the environmental integrity of the Garden Route – (or Cape Windlass, as it is known), as the third. The George Municipality took no part in the proceedings. The High Court dismissed Lagoonbay’s application with costs, but granted leave for it to file an appeal with the SCA.

In upholding the appeal, the SCA held that the rezoning application was a matter for the George Municipality, and not for the provincial government. Thus according to the SCA, the Minister had usurped for herself and her departmental officials a power that had been reserved for the Municipality when she made her approval of Lagoonbay’s application for the amendment of the structure plan conditional

upon the provincial government’s approval of the zoning application. As such, the decision by the Minister to refuse the amendment of the rezoning and subdivision application could not stand, and it accordingly fell to be set aside.

The SCA confirmed that the George Municipality was the competent authority to consider and determine Lagoonbay’s application for rezoning and subdivision in respect of the proposed development, and its decision to approve that application was accordingly confirmed. The SCA further held that, because Lagoonbay’s application for the amendment of the structure plan of the development had not been approved by the Minister, it had to be remitted to him for reconsideration. The SCA upheld the appeal


legal update

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legal update

accordingly and ordered the Minister and the Cape Windlass Environmental Action Group to pay Lagoonbay’s costs.

4. Law of contractStipulations in sale agreement relating to municipal services De Klerk and Another v Steven-Lee Properties (Pty) Ltd and Another (297/12) [2013] ZASCA 54 (4 April 2013) (as per the court’s published media summary)At the heart of this particular dispute is the interpretation to be placed on clause 15.1 of two identical sale agreements entered into by the appellants and the first respondent in respect of two different properties situated within a development (the Development) in the municipal jurisdiction of Vanderbijlpark, which in turn forms part of the Emfuleni Local Municipality (the Municipality).

the relevant clause 15.1 reads as follows:clause 15 – Special conditions15.1 The developer shall be the one to make the arrangements to the satisfaction of the appropriate local authority for the provision of essential services to the street border of the property.15.5 The construction of the dwelling and outbuildings is to be completed prior to occupation and within 24 months from the date of registration.

Prior to the actual sale of the immovable properties, there was an application for approval of the proposed township from both the municipality and Rand Water Board (Rand Water). Both the municipality and Rand Water would have to be satisfied with the proposed sanitation system of the proposed township. Rand Water, which is responsible for ensuring that proper sanitation systems are in place prior to any new developments in order to protect the ecosystem of the Vaal River, approved the plans for the proposed sanitation system, subject to the proposed upgrading of the existing pump stations and the service lines by the Municipality. On 16 February 2006, the Municipality granted such consent and the township was proclaimed on 22 March 2006.

The appellants sought an order declaring that clause 15.1 of the sale agreements created a true suspensive condition, and that the non-fulfilment thereof had rendered the sale agreements unenforceable. In the alternative they claimed that the appellants were entitled to do so as a result of the non-performance, and had, in fact, lawfully cancelled the two sale agreements. The relief sought was the re-transfer of the properties to the first respondent against

payment or refund of the purchase prices as well as the interest accrued thereon to the appellants.

Rand Water adopted the stance that the dwellings could be constructed only if proper sewage-treatment works and a pump station were constructed that would service those properties. It is as a result of this particular dispute between Rand Water and the local authority that the appellants who have taken transfer of the properties now bear the risk, and must now deal with Rand Water.

the court decided that:l The requirement by Rand Water, which is a statutory body, that the Municipality upgrade its infrastructure, and any failure to do so by the Municipality, cannot vest a claim for cancellation of the agreement against the first respondent. l There was nothing more that the first respondent could have done in terms of its obligations as per clause 15.1 of the sale agreements. l The first respondent had no authority over the municipality nor over Rand Water.l There was no contractual obligation on the first respondent to ensure that consent be granted by Rand Water for the approval of building plans. l The first respondent was not in breach of any of its contractual obligations, and therefore no valid cancellations of the sale agreements could follow.l The appeal was dismissed with costs.

4. SaPoa commentSSAPOA submitted formal comments on the following Bills that were published for public comment:l Gauteng Planning and Development Bill;l Western Cape Planning and Development Bill;l Broad Based Black Economic Empowerment Amendment Bill;l Expropriation Bill;l The efficacy of South Africa’s Environmental Impact Assessment RegimeThe formal comment submissions on the Bills are available at www.sapoa.org.za.

5. concLUSIonSAPOA continues to engage with various municipalities, companies and organs of state to ensure the streamlining of property-related processes and systems. It is our intention that strategic collaborative engagements that have been initiated and cemented will result in a more effective and efficient regulation of the property sector.

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eye on africa

Where is getting electricity easy and where is it difficult? Procedures (number)

Burundi 4

Kenya 4

Rwanda 4

Tanzania 4

Uganda 5

Time (in days)

Rwanda 30

Uganda 91

Tanzania 109

Kenya 163

Burundi 188

Cost (as % of income per capita)

Tanzania 1,040.5

Kenya 1,419.2

Rwanda 4,696.8

Uganda 5,130.1

Burundi 34,477.0

Source: Doing Business database

Where do East African community economies rank on the ease of

dealing with construction permits? HONG KONG: EASIEST (ranked 1)

20

40

60

80

100

120

140

160

180

Source: Doing Business database

Kenya

Rwanda

Uganda

Burundi

Tanzania


eye on africa

Africa’s new golden childEast Africa, the land of oil and money, is fast proving to be a property-development and investment havenBy Candace King

West Africa’s breadwinner status will soon be shared with East Africa as the region mobilises

into the fast lane of development, opportunities and success. East Africa’s growth performance is relative to that of sub-Saharan Africa, and with the recent discoveries of offshore gas in Tanzania and oil in Kenya, East Africa is becoming a mineral hot spot that is attracting millions of US dollars in investment. It’s believed that these natural-resource discoveries could hold as much potential value as 30 to 40 times the gross domestic product of Mozambique.

With open access and very attractive leasing terms, Africa’s oil reserves and natural-gas resources continue to attract a broad spectrum of investors. This is according to a new report released by Ernst & Young, entitled ‘Natural gas in Africa: the frontiers of the Golden Age’. Elias Pungong, Ernst & Young’s oil and gas leader for Africa, says that natural-gas development holds tremendous opportunity for Africa. “It can be a primary driver of economic growth and broader social development, as well as a major spur for local employment growth and the development of infrastructure.”

On the political front, East Africa is beginning to stabilise. “Political risk in East Africa remains moderate to stable,” explains Johan van der Merwe, the chief executive officer of Sanlam Investments. ‘Tanzania, in particular, has experienced a sustained period of low political risk. Uganda is similarly stable, despite sporadic conflict in the north of the country and some political infighting. Rwanda has also been improving steadily, although the country’s likely military involvement in the Democratic Republic of Congo to the east is somewhat of a concern. Kenya remains on our watch list, with presidential and parliamentary elections just held in March. After the violence that followed the 2007 elections, there were concerns that political and tribal divisions could

again result in political turmoil. The lead-up to the elections was, however, calm, with political coalitions forming without any reference to tribal lines. Overall, there has been sustained improvement over the past five years in the East African region, which has been supportive of the property sector.”

There’s also a focus on education in East Africa, believes Leonard Michau, the head of Broll Property Group’s sub-Saharan African operations. “In the next five to 10 years, the number of students is likely to increase by more than 50%, particularly in Nairobi,” he says. He also notes that there’s a big emphasis on the development of schools, universities and hostels across East Africa.

Deemed the “new promised land”, East Africa has the potential to be one of the world’s fastest growing regions. But this can only be achieved if governments and policy-makers can drive through reforms within key industry sectors, such as energy, manufacturing, technology, tourism, services, mining and construction. “Developing infrastructure, encouraging regional integration, promoting ICT development and combating corruption should be at the forefront of the EAC (East African community) economies,” said Tanzania’s Prime Minister Mizengo Pinda during a panel discussion held at The Economist Conferences East Africa Summit in December last year at the Serena Hotel in Kigali, Rwanda.

On the political front,

East Africa is beginning to stabilise.

“Political risk in East Africa remains

moderate to stable”

“Overall, there has

been sustained

improvement over

the past five years

in the East African

region, which has

been supportive of

the property sector”

Johan van der Merwe,

CEO Sanlam Investments

Where is it easiest to register property and where is it hardest? Procedures (number)

Burundi 5

Rwanda 5

Kenya 8

Tanzania 9

Uganda 13

Time (in days)

Rwanda 25

Uganda 48

Kenya 64

Tanzania 73

Burundi 94

Cost (as % of income per capita)

Uganda 2,9

Kenya 4,3

Tanzania 4,4

Burundi 5,6

Rwanda 6,3

Where is paying taxes easy and where is it difficult? Where is the total tax rate highest? Payments (number per year)

Rwanda 18

Burundi 24

Uganda 32

Kenya 41

Tanzania 48

Time (in hours per year)

Rwanda 148

Tanzania 172

Uganda 213

Burundi 274

Kenya 393

Total tax rate (as % of profit)

Rwanda 31,3

Uganda 35,7

Tanzania 45,5

Burundi 46,2

Kenya 49,6

Note: the indicator on payments is adjusted for the possibility of electronic or joint filing and payment when used by the majority of firms in an economy.Source: Doing Business database


eye on africa

And infrastructure development is taking off in East Africa. “Infrastructure development in East Africa has been extremely slow historically but has begun to improve substantially over the past couple of years,” says Van der Merwe. “The efficiency gains across the continent from mobile telephony and mobile banking are well documented, as is the improvement in the banking network to previously unbanked lower-income segments. East Africa has, in particular, benefited from the East African Marine System (TEAMS), a submarine fibreoptic cable giving the region true broadband capability.”

There are several noteworthy projects taking place, particularly in Tanzania and Kenya. These include the construction of the Mwatate-Taveta-Arusha Road, a highway development that will link Kenya with Tanzania; the upgrading of the Kigali International Airport in Rwanda; the construction of a second container terminal at Mombasa port in Kenya; the expansion of Tanzania’s Mugumu Airport; and the

development of the Entebbe-Kampala express highway. Apart from infrastructure, there’s a growing need and demand for real-estate development in East Africa.

East Africa’s property boom“There is an ongoing shortage of prime retail and office space in East Africa but a lot of development is taking place in the various sectors,” says Van der Merwe. The shortage of quality office and retail space in East Africa is arguably less acute than in other parts of sub-Saharan Africa, but the demand for A-grade properties is strong as many companies are looking to move out of their existing B-grade offices.

“There’s currently a lot on the drawing board in East Africa and the development pipeline remains extremely positive,” says Michau. With an impressive existing African footprint, Broll aims to roll out into East African territory. “We believe in the African growth story and, as a company, are committed to expanding

our footprint into other African countries, specifically East Africa, where we wish to increase our presence. Currently we are in the process of opening offices in Kenya, Rwanda, Zimbabwe and Mauritius,” he says.

According to Van der Merwe, East African property offers extremely attractive returns, particularly if the assets are managed by professional property-asset managers who know the landscape. Prime assets in the retail and commercial sectors that are actively managed are generating double-digit US dollar returns with acceptable levels of risk. Having an on-the-ground presence is an advantage as properties are difficult to manage from far-flung locations.

“New business nodes in Nairobi, Kampala and Dar es Salaam in particular have been thriving as the old central business districts are experiencing an exodus due to ageing buildings and acute congestion,” Van der Merwe says. “We expect strong growth in the prime office and retail sectors for years to come in East Africa.”

Sanlam has a presence in 11 countries outside of South Africa across the African continent, including Botswana, Namibia, Swaziland, Zambia, Malawi, Mozambique, Tanzania, Uganda, Kenya, Ghana and

Nigeria. The company runs a mix of life-assurance businesses, short-term insurance companies, asset-management businesses and funds across these jurisdictions. Sanlam also owns a large number of properties, primarily office blocks and shopping malls, in many of the countries in which the group operates.

David Kinyua, a regional-infrastructure financial advisor and director of Acorn Group Africa, believes that East Africa has been wrongly perceived and that there is no property bubble in the region. He notes that Juba, Nairobi and Kampala have had the highest returns in property in the past three years. Historically, the commercial sector has been the strongest performer but, going forward, the retail space is likely to see the best prospects for growth. The industrial sector is still extremely fragmented and demand will rise as more and more retail centres begin to open.

Van der Merwe also points out that Kenya is experiencing strong development of office space and retail, particularly in Nairobi (although Mombasa is also seeing some activity in the retail space). He adds that Tanzanian projects remain limited largely to Dar es Salaam, where vacancies in older office space are very low and new A-grade office space is starting to come on stream.

“A number of developments are due to be completed in the course of 2013 but demand is expected to remain strong in the foreseeable future,” says Van der Merwe. “Mlimani Mall is still Dar es Salaam’s only large retail development and there is certainly scope for further development in that space. Uganda has seen a large number of office blocks being developed in the last couple of years and rents are beginning to come under pressure. The retail sector has also experienced growth in a number of local shopping centres. Both office and retail space in East Africa is reasonably priced at around US$18 and US$16 per square metre respectively.”

“Historically,

the commercial

sector has been

the strongest

performer but

going forward,

the retail space

is likely to see

the best prospects”

David Kinyua, director

Acorn Group Africa

Nairobi Business Park is an out-of-town business park in Kenya

The proposed Kigali International Airport will increase global connectivity as Rwanda moves from a subsistence agrarian economy to a human-resource global economy, and will support the goal of becoming a technological, financial, communication and transportation hub for the entire African continent


eye on africa

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Places and projects to watchSo which countries and cities in East Africa should one focus on in terms of investment and development? “Nairobi has always been the East African hub for most companies, NGOs and agencies, which makes it the first port of call for new entrants into the East African region,” says Van der Merwe. He adds that the city is also currently completing a network of bypass roads and widening existing routes to alleviate congestion in the city and create a large number of new office, residential and retail nodes. He says that we should expect to see Nairobi to be at the centre of East African development for the next couple of years. One project to watch is Konza City, a development that will provide housing and leisure activities for the 200 000 people who are expected to be employed via this initiative.

There are a number of other large developments underway in East Africa. Garden City in northwestern Nairobi is a mixed-use retail, leisure and residential development on a 32-acre plot, which is set to open in 2014. The Radisson hotel group is constructing a 244-room five-star hotel in Upper Hill, Nairobi, which is expected to be completed in May 2014. Uganda is expected to see the opening of two large malls between December 2013 and October 2014, namely Acacia Mall (16 000m²) in Kampala and Victoria Mall (19 000m²) in Entebbe. Despite major efforts, no developer has yet been able to put a site together in Dar es Salaam in the prime retail triangle between Bagamoyo Road and Ali Hassan Mwinyi Road in Namanga.

East Africa’s futureGoing forward, Kinyua draws attention to several tips and memos for developing in East Africa: enable infrastructure; government can’t be everywhere; stick to hubs, urbanisation will continue; don’t ignore regional/frontier markets; and understand the laws (if none, help to create them). “We expect to see continued growth in East Africa’s property industry over the next decade, particularly in the retail space,” Van der Merwe says. “Nairobi is witnessing an ongoing development of the decentralised business nodes in Upper Hill, Westlands and Riverside as well as to the south of the city near Athi River. Kampala is developing strongly between the capital and Entebbe, and is beginning to create spaces for retailers who wish to expand in the country. Despite lagging behind Kenya and Uganda, Tanzania will also undoubtedly see additional retail and office developments in the next year or two. Rentals are at sustainable levels in the region and will likely continue to grow steadily as long as the political stability continues and the various currencies do not experience massive depreciation.”

Michau says that there are several property players – both big and small – who are seeking investment opportunities in East Africa. There are a lot of enquiries from foreign investors and developers, mainly from South Africa and the UK, who are keen to invest in new developments across all sectors. While opportunities remain considerable, developers are often faced with complicated land-rights issues, insufficient infrastructure and very high building costs. Michau warns that there still exist pockets of great risk and instability in the region, thus it’s imperative that developers and investors do their homework.

While the fundamental risks are widespread throughout the continent, each African country also has its own unique set of challenges and risks that need to be assessed accordingly. “But for those investors who are prepared to do their homework and who are patient, the long-term investment returns look extremely promising,” says Michau.

“For those

investors who

are prepared to

do their homework

and are patient, the

long-term returns

look extremely

promising”

Leonard Michau,

CEO Broll Africa

Garden City in northwestern Nairobi is a mixed-use retail, leisure and residential development that will open in 2014

eye on africa


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A creative celebrationCelebrating in style, Creative Axis Architects

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With sumptuous cocktails, delicious snacks and a host of fine guests, Creative Axis Architects had every

reason to celebrate at the launch of a new Bloemfontein office, held at the Windmill Casino & Entertainment Centre. Apart from welcoming the new office, Creative Axis Architects simultaneously celebrated the recognition of Zenzeleni Ndlovu in his achievement in becoming the director of the Bloemfontein branch.

Ndlovu, together with Anil Parshotam and Bhavik Ranchod presented the professional expertise offered by Creative Axis Architects to their guests, and a short video was played giving the history of the transformation of Naren Mistry Architects into Creative Axis Architects. As of the end of 2012 and the beginning of the new financial year, the company has been branded as Creative Axis Architects

The Bloemfontein office is now one of six established regional offices – these are located in Gauteng, Limpopo, Mpumalanga, North West, Eastern Cape, KwaZulu Natal and Free State. The company also has international branches operating in Africa, India and the UK.

Creative Axis Architects’ core comprehensive expertise includes offices, healthcare, aviation, rail, retail, shopping centres, department stores, education, interior design,

space planning, hospitality, residential and government facilities. Their dedication and service have earned them long-lasting relationships with many of their clients. In addition, Creative Axis Architects is also involved in social-upliftment initiatives.

Iphahamiseng Trust is a registered non-profit-making organisation based in Batho Township, which is located a few kilometres from the centre of Bloemfontein. The objectives of the organisation include providing social services, child welfare, child services, day care, services to children, adoption services, child-development centres, foster care, as well as infant-care centres and nurseries to the surrounding areas. Headed by Aubrey Williams, the Trust cares for 52 needy children, ranging in age from infancy to teenagers of up to 18 years old, and from various backgrounds. Most of the children sheltered at the home are living with HIV and were orphaned at birth.

Creative Axis Architects has adopted the shelter as part of its social-responsibility commitment, concentrating its efforts on giving back to the community. Recently, Ndlovu donated food parcels to the shelter as part of his commitment, and has pledged to be a partner in any future plans.

Iphahamiseng Trust is a registered non-profit-making organisation based in Batho Township. Headed by Aubrey Williams, the Trust cares for 52 needy children. Creative Axis Architects has adopted the shelter as part of its social-responsibility programme.


advertorial

Office No 6, Oxford Building

154 Zastron Street, Bloemfontein 9301

tel: +27 (0)51 430 6323

email: [email protected]

web: www.creativeaxis.co.za

After 24 years of expertise and innovation, Creative Axis Architects opens new offices in Bloemfontein with a function at Windmill Casino1 Rolf du Plessis, Zenzeleni Ndlovu, Wally Smit 2 Bongi Duma, Zenzeleni Ndlovu, Jane Seate 3 Jeff Letsie 4 Zenzeleni Ndlovu, Anil Parshotam, Gail Batchelor, Bhavik Ranchod, Manisha Kalan 5 A van Vuuren, Maurits Nabom, D van Staden, Benita Zulch 6 Frans Steinberg, Barry Bartlett 7 Olehile Leeuw 8 Henk Jacobs, Mr Henry, Clint Koopman 9 Harald Ronne, Anil Parshotam, R RavenPhotographs: Michael Glenister

1 2

3 4

5 6

7 8 9


advertorial

Here today, here tomorrowAbsa Commercial Property Finance head of lending Michael Mortimer reveals Absa’s lending success story and its pursuit of Africa, the opportunity continentBy Candace King

Apart from providing banking solutions to a broad cross section of the population, Absa is

also resiliently responsible for providing financial aid to the property industry’s players for the development of our country’s iconic shopping centres, smart office spaces, expansive industrial nodes and residential developments. Michael Mortimer, who has been with Absa for 10 years, is the head of lending in the Commercial Property Finance Division.

Born and bred in KwaZulu-Natal, Mortimer studied law at the University of Natal. After qualifying, he practised as an attorney for seven years before joining the financial-services industry in property. “Absa has a strong regional footprint, with six offices across the country in Johannesburg, Pretoria, Cape Town, Durban, Port Elizabeth and Bloemfontein,” he says.

Absa’s lending criteria range from entry-level loans right through to the larger corporate private and listed property funds. “We cover the full spectrum. We have the ability to partner with our clients as they progress and transition through personal development and portfolio growth as property players in the industry,” explains Mortimer.

Absa Commercial Property Finance funds properties of all kinds, from retail to commercial, office and industrial, as well as selective residential developments. “The residential market is still fairly benign but affordable housing is an area that we see significant growth in,” says Mortimer.

Dissecting the industry, Mortimer notes that each sector is performing differently. In terms of retail, he believes that the smaller convenience retail centres are vulnerable.

“Currently in the retail sector, there is quite a lot of pain experienced in these smaller shopping centres, which are neither fish nor fowl, and don’t have their own identity or a strong destination appeal. We are, however, seeing very strong performances out of the regional and super regional shopping centres. Rural shopping centres are also performing well.

“With consumer confidence levels at their lowest since 2004, and household debt and disposable income constantly increasing, we have to be very careful in terms of where we finance in the retail sector. With regards to the office and industrial sectors, office still remains under the most pressure with the highest vacancy rates out of all the markets (although this differs significantly between various nodes), while industrial is performing reasonably well because of pent up demand for quality space.”

Mortimer points out that Absa is vigorously pursuing Africa. “Absa has big expansion plans into Africa as part of the Barclays African footprint. Absa is definitely active in penetrating this market.”

Currently, Absa has a presence in 14 African countries. “We have been servicing this market for a number of years now, though not as proactively as we intend to do now,” says Mortimer. “Going forward, I think we are going to see a slow upward trajectory. But there is still big global pressure. In terms of Africa, it’s important not to paint the whole continent with the same brush. Each country should be treated differently. There are opportunities but you need to know each country’s market and tread carefully.”

Mortimer notes that Absa’s goal going forward is to align itself as the preferred property-finance partner to its key clients. “For us it’s not about being the biggest or doing the most business, it’s about the sustainability of our business,” he says. “We want to be recognised as not only being here today but also here for the long term. Property is a long-term game so our business needs to be equally long-term and sustainable.”

“We have the ability to

partner with our clients

as they progress and

transition through personal

development and portfolio

growth as property players

in the industry

Michael Mortimer, who has been with Absa for 10 years, working in the Commercial Property Finance Division

National Secretariat, P O Box 653141, Benmore Gardens, 2010, South Africa, Tel: +27 11 884 9164/9165 Fax: +27 11 884 9167, E-mail: [email protected], Web: www.acpm.co.za

appropriate fee scale relative to an appropriate scope of services.

In addition to preparing a Code of Ethics & Membership Criteria, the Exco has developed a model form of client consulting agreements containing the generic scope of services to be expected with other associations.

“VALUE OF CORPORATE MEMBERS”

“DO YOU WANT TO JOIN THE ACPM?”PLEASE CONTACT US BELOW

ACPM HAS 22 CORPORATE MEMBERS CORPORATE MEMBERS PROJECTS VALUE AT DESIGN STAGE AT R25B

238 NON CORPORATE MEMBERS AT ACPMCORPORATE MEMBERS PROJECTS VALUE

UNDER CONSTRUCTION AT R52B

CORPORATE MEMBERS WORKING ON 2,760,000 SQM OF PROJECTS

CORPORATE MEMBERS WORKING IN RSA, GHANA, ZAMBIA, MOZAMBIQUE, ANGOLA,

NIGERIA, KENYA, TANZANIA, TO NAME A FEW

AREAS OF WORK INCLUDE RETAIL, COMMERCIAL, INSTITUTIONS, EDUCATION, HEALTH, RESIDENTIAL, INDUSTRIAL ETC

SKILLS SET IN PROJECT MANAGEMENT CONSTRUCTION PROJECT MANAGEMENT,

PROPERTY DEVELOPMENT MANAGEMENT, TENANT COORDINATION AND TURNKEYS

CORPORATE MEMBERS HAVE 67 FULL MEMBERS REGISTERED AT THE ACPM

HAVE COLLECTIVELY SPENT R1.5m ON CSI INITIATIVES FOR 2012/2013 F/Y

THE ACPM IS A VOLUNTARY ASSOCIATION OF SPECIALIST PROJECT MANAGEMENT PROFESSIONALS WORKING IN THE BUILT ENVIRONMENT

www.acpm.co.za

SAPOA-Advert.indd 1 4/26/2013 9:46:43 AM


development

Cape Town’s Foreshore flyovers: part 2

Cape Town’s Foreshore flyovers will soon serve a very different purpose from the one they were originally designed for. This purpose is currently contained in the creativity of a UCT studentBy David A Steynberg. Photos courtesy of Bruce Sutherland

They’re the stuff of Cape Town legend: the infamous, incomplete Foreshore flyovers that have been used

for advertising purposes (and as a topic by stand-up comedians) for years. One of the popular yarns claims that two teams of builders were constructing them from opposite ends, intending to meet halfway. But – whether through poor calculation or builder error – the flyovers ended up a few degrees out, which meant they’d never meet. The Capetonians involved (being Capetonians) lost interest and, rather than seeking a solution, decided to build a waterfront instead.

Councillor Brett Herron, the Mayoral Committee Member: Transport, Roads and Stormwater, provides a more reasonable explanation. “There are various urban legends about [the Foreshore flyovers],” he tells us. “As far as I know they were not completed in the 1970s because of budget constraints and because they were not needed in terms of traffic volumes at the time.”

The intention, according to Herron, was to finish them in later years when traffic volumes increased and would require extra road capacity.

But as times have changed and the city’s priorities shifted, the flyovers have remained in their current state. Until now.

“Transport and urban-planning thinking has changed,” Herron says. “As we are moving towards a greater emphasis on public transport and prioritising public transport over private vehicles, the timing is now right for us to make a decision about the future of the unfinished freeways. They occupy an important space in the city. The entire Foreshore precinct has enormous potential when it comes to contributing to a future Cape Town that is economically, socially and environmentally sustainable. We are working hard to ensure a liveable city for all. We believe that this precinct contains extensive latent opportunity.”

It is that potential the city is hoping to unlock in the collective creativity of the students at the University of Cape Town’s Engineering and Built Environment faculty. They have been tasked with conceptualising and designing the future of the Foreshore precinct, using the unfinished flyovers within their design.

“We are very excited about this collaboration and filled with anticipation about the kinds of proposals we will receive,” Herron said at the official launch of the project in April. “We have placed no limitations and have expressed very few expectations – and we look forward to receiving implementable and feasible solutions.

“The Foreshore is, without a doubt, the most significant precinct in the Cape Town city centre. If treated correctly, it has the potential to unlock enormous opportunity for the entire city and all who live here.”

Herron tells us that the city could quite easily have put out a tender for this project, but that it was decided to give this “once-in-a-lifetime opportunity” to the students at UCT to be “excited by bold thinking, creative energy and unfettered concepts that are aligned with the economic, mobility and social realities that we grapple with every day”.

“[They will] contribute to what the future of our inner city will look like and how it will function,” Herron says, adding that the brief was simple. “The applicants must consider economic, mobility and land-use matters, among other things, to produce a conceptual framework for the future of the Foreshore precinct and the incomplete flyovers.”

The project forms part of the students’ curriculum and Herron hopes that the proposals received will make it difficult for the project’s judging team to pick a winning concept.

Follow this story (and the progress of the project) on Facebook at FutureForeshore.

development


SAPOA calendar 2013

PDNA IS A LEADING, DYNAMIC, MULTI-DISCIPLINARY CONSULTING ENGINEERING FIRM IN SOUTHERN AFRICA. WITH A NETWORK OF 13 OFFICES AND MORE THAN 600 EMPLOYEES THE GROUP HAS ASPIRATIONS TO EXPAND IT’S FOOTPRINT GLOBALLY UNLOCKING OPPORTUNITIES AND PROVIDING IT’S WORLD CLASS SERVICES TO OUR CLIENTS IN THE COMMERCIAL, PROPERTY AND BUILDING SECTOR, LOCALLY AND ACROSS THE GLOBE. .

“PDNA IS PROUD TO BE A MEMBER OF THE SOUTH AFRICAN PROPERTY OWNERS ASSOCIATION (SAPOA) AND CONGRATULATES THEM ON THEIR 45TH ANNIVERSARY”

UKZN Biology BlockWits Student ResidenceQuadrant

Fairways Hotel & Conference CentreKanye Education CentreVaal MallLiberty Midlands Mall

Hemingways Mall

Courses & education Breakfasts & seminars

ICPP: Introduction to Commercial Property ProgrammeICPP Wits KZN4 – 6 JuneICPP NMMU George12 – 14 JuneICPP NMMU Port Elizabeth25 – 27 JuneICPP NMMU East London18 – 20 SeptemberICPP UFS5 – 7 August6 – 8 November

ECPP: Essential Commercial Property ProgrammeECPP KZNTBCECPP Wits11 – 14 JuneECPP NMMU East London18 – 21 JuneECPP UFS12 – 15 August

PMP: Property Management ProgrammeFebruary – November

CCPP: Certificate for Commercial Property Practitioner for the built environmentFebruary – November

FMP: Facilities Management ProgrammeFMP UFS19 – 23 AugustFMP UFS18 – 22 November

IPMP: Intensive Property Management Programme22 – 26 July

PDP: Property Development Programme21 July – 2 August

BCTP: Building Construction Technology Programme11 – 15 November

Career day UP14 May

Career day UJ25 July

Career day Wits19 September

Method of Measuring Floor Areas Breakfast7 May: Cape Town9 May: KZN9 May: East London29 May: Port Elizabeth6 June: Gauteng

Research Breakfast30 April

Business Rescue Breakfast IPD Research14 May

Property Finance Breakfast20 June

Legal: FICA Workshop29 August

Property Investment Workshop18 September

Research Breakfast3 October

Brokers’ Econ Update23 October

Legal SPLUMB7 November

Brokers’ Legal Update21 November

Gala dinners

Gala Dinner Western Cape19 September

Gala Dinner East London16 October

Gala Dinner Limpopo31 October

Gala Dinner KZN14 November

45th SAPOA Annual Convention and Property Exhibition15 – 17 MayIPD European Conference (INT)23 – 24 MayFIABCI 64th World Congress24 – 30 MaySAIV & IPTI Seminar13 – 14 JuneBOMA Conference (INT)24 – 26 JuneSA Council of Shopping Centres Convention (NAT)11 – 13 SeptemberGreen Building Council of SA (NAT)16 – 18 OctoberAFRES Conference (INT)23 – 25 OctoberMAPIC (INT)14 – 16 November

Conferences


interview


interview

Estienne de Klerk on what’s best for property – and the country

SAPOA’s new president, Estienne de Klerk, wonders whether the Department of Trade and Industry would not better promote the interests of property

than the Department of Public WorksBy David A Steynberg

SAPOA president Estienne de Klerk says that he’s looking forward to building on

what immediate past president Dr Sedise Moseneke achieved during his term. He is aware that the task ahead is daunting – but because of the effectiveness of the executive team, many of SAPOA’s functions will continue successfully.

“What we do has to remain relevant and add value to the industry,” De Klerk says. “We will continue to build on our networking functions and improve capacity in the sector through training, and we will ensure that our annual conference is topical, relevant and enjoyable.”

According to De Klerk, SAPOA’s role in developing touch points as a lobby group will continue and strengthen in the next year – which, he says, will continue to be important in addressing various challenges that are impacting members.

“It’s important to make the environment as fair, affordable and flexible as possible for our members, to ensure positive entrepreneurial behaviour and that their interests are set as paramount to what we do,” he says. “SAPOA’s board has the responsibility to take a view of what’s best for the industry and South Africa, whether it’s lobbying activities or training. This could be complicated by varying interests within the SAPOA membership.”

De Klerk questions the Department of Public Works’ leasing strategy over the past few years, which potentially has cost the fiscus billions of rands and deprived the country of precious job opportunities in the construction sector. “Those benefiting from it may be in favour, but has it been the best thing for our country?”

He also wonders whether the Department of Trade and Industry (DTI) would not be better placed to promote the growth of the sector in the country. “We’re a commercial industry looking to grow and searching for foreign investment, and Public Works is never

going to be able to assist us in this regard,” he says, adding that because the department is involved in the sector, it is conflicted and will not necessarily promote the interests of the commercial property sector over its own. “We have to work closer with government to grow our sector and develop it.”

De Klerk remains quite critical of local government, saying that while rates and taxes have increased, services have continued to deteriorate. “It’s a triple whammy: higher costs, lower service quality and we end up doing the work ourselves, at our expense,” he says. “In the new revaluation roll we have seen significant increases in revalued properties, which will translate into further compounded increases in rates. Administered costs remain a challenge and property owners will pass these on to the tenants who are operating in a challenging environment. We need to develop platforms for open communication with local councils as well as provincial and national government to work on solutions. It is going to be a challenge for us and an area in which we will definitely need to improve our performance.”

One significant achievement is the passing of REIT legislation for the listed sector in May this year. The challenge now is to get the unlisted sector on board. “Many of our members could benefit should this dispensation be rolled out to them,” says De Klerk. “We are dealing with various interested parties, from private investors and developers to pension funds and banks.”

SAPOA has already set up the SAPOA REIT committee to represent the interests of all of

SAPOA’s unlisted members. This is an area that De Klerk is very passionate about. “What we’re trying to do is to have SAPOA promote the dispensation with the National Treasury, SARS and the FSB as a representative voice for the industry,” he says, adding that SAPOA continues to provide a voice for commercial property.

“SAPOA is further dealing with more than 50 different pieces of legislation over and above the REIT legislation. These are the benefits of being a member, and no single company carries as much weight as SAPOA does.”

He says the organisation is dealing with the DTI regarding the Competition Commission Thresholds, where he says there is scope for amendments. “If it cannot be amended, then property should get some sort of special dispensation,” he says. “It has been seven years since the last revision – it might be appropriate to review it again.”

The board will continue to promote the participation of members in order to ensure that their needs are met. Despite challenges, De Klerk says that South African commercial property has performed particularly well, outperforming all other assets over the past 10 years globally.

“SAPOA members and its board have to try to navigate the way forward for the industry in the best interest of South Africa, over and above independent interests,” he says. “This will not be a simple task.”

SAPOA members can look forward to an exciting period ahead, one full of challenges but also plenty of opportunities, with the rest of the African continent being a new frontier and enjoying the benefits of a more accessible world investment market for South African property companies.

“SAPOA will continue to position our industry as material in the South African economic context, and seek to encourage local job creation, which is key to the success of South Africa,” De Klerk says.

It’s a triple whammy: higher costs, lower

service quality and we end up doing the work

ourselves, at our expense


interview


interview

Sedise Moseneke on court cases and cementing relationships

Dr Sedise Moseneke’s term of presidency saw SAPOA victorious over the City of Johannesburg, something the immediate past president says helped both the city and

SAPOA sing a more harmonious tuneBy David A Steynberg

SAPOA’s immediate past president Dr Sedise Moseneke says his year as president

has been successful from an organisational as well as a personal point of view.

“We achieved the majority of what we set out to do,” he says, adding that he enjoyed the opportunity to grow and network with parties from around the world. “The Property Charter was a big part of my presidency; we signed a memorandum of understanding with the Royal Institute of Chartered Surveyors to bring better standardisation to the industry and we managed to assess and cement our relationship with government so that they know who we are and what we do.”

Even the Department of Public Works (which has seen two new ministers in as many years, inefficiency and corruption) recognised SAPOA’s role in improving cities and driving development on both the local and national level.

“We had a few structured meetings and signed off working relationships with the Cape Town municipality, and the municipality of Tshwane and Johannesburg, and we built on our existing relationship with the SA Cities Network,” Moseneke says. “The network is made up of about 28 different municipalities and this strengthened relationship resulted in us meeting with different municipalities and legislatures.”

Moseneke says that one of the key features of these meetings was not to be soft on government but rather to ensure that both

SAPOA and the government were on the same page. This would allow both objectives to be met and would lead to a less litigious future relationship.

Over the past year one of the key features under Moseneke’s term was the High Court case between the City of Johannesburg and SAPOA over rates set in 2010. Instead of eroding the relationship, the process allowed both SAPOA and the City of Johannesburg the opportunity to understand the role each played in GDP growth and development. It also created a platform to work together in a common environment.

“The city will get the benefit of rates without impeding the role of commercial property,” says Moseneke. “Now we get advanced notice when issues come up, and we’re given the opportunity to provide input and comments before the city publishes anything relating to the industry.”

Last December’s court victory was not only precedent-setting – it also demonstrated to government that SAPOA would not remain idle while the interests of its members were

being compromised (even though they would not compromise the operations of the city).

“Other cities view it in a positive light,” says Moseneke. “They see that the only way to work with commercial property is to engage and involve them in the decision-making process of running the city. We don’t want to influence policy but we do want to give our input. We’re seen as elitist and unwilling to work with government but actually the opposite is true. All that we do requires government approval and infrastructure, so we need a positive working relationship.”

Moseneke will hand over a stable ship to incoming president Estienne de Klerk. “Financially, SAPOA is strong and I’m confident it has the reserves to implement its objectives effectively,” he says. “Membership value has grown and attendance at our convention is up from last year. We increased the number of graduates coming through our education courses and our new board has a strong representation of industry leaders. We remain a Level 1 BEE-rated company in support of transformation in the sector. We also increased the number of legislative frameworks that we are monitoring, and the research through our relationship with the IPD has been industry-leading. I look forward to a good succession with Estienne, and wish him well in his term.”

The diversity and transparency of the sector is reflected in the leadership role and succession plan at SAPOA, both at board level and the secretariat.

SAPOA and the City of Johannesburg got the

opportunity to understand the role each played in GDP

growth and development


urban renewal

Reinventing the urban sprawl

There’s still much to be done for the urbanisation

movement in inner-city Jo’burg as the Maboneng

Precinct continues on its regeneration path; while

further up the M1 the old fabric warehouses have

begun to weave a new reality for the previously

ugly, semi-industrial Kramerville

By Candace King and David A Steynberg

During its Gold Rush heyday, Johannesburg adopted its “place of gold” moniker – but today its gold is in the form of regeneration, and it’s safe to rename it the “place of change” as the inner city and surrounds move

into another phase of redevelopment. The changes spurred on by the modern pioneers with faith in the city’s future are helping to dispel the old images of a crime-ridden, seedy central Jo’burg that will chew you up and swallow you like a dodgy ATM.

Looking past the prejudices and stereotypes, you will find the inner beauty and prosperity of Johannesburg’s inner city, a place of sprawling vibrancy and opportunity. At this stage it’s no Sandton, but you cannot compare the two. Still, it boasts a specific charm: it’s a place with its own artistic urban niche that is attracting contemporary creative urbanites as well as lawyers, doctors and serious suit-wearing professionals and entrepreneurs.


urban renewal

The making of MabonengThe star of the rejuvenation show is the Maboneng Precinct, an integrated urban village on the east side of Johannesburg’s city centre. It’s built on the pillars of culture, entrepreneurship, urbanism, collaboration and design, and is home to several independent retailers, restaurants and entertainment venues as well as loft apartments, offices, film and sound studios, a hotel, a museum and creative factory spaces. Meaning “place of light” in Sotho, Maboneng speaks to the vision and creation of an enlightened community and has expanded tremendously in a very short time.

The development of the Maboneng Precinct began in 2009 with Arts On Main, a mixed-use hub of creative, office, gallery and retail spaces. In 2008, Jonathan Liebmann, an “urban entrepreneur”, purchased the old DF Corlett construction offices and warehouses and, in collaboration with architect Enrico Daffonchio of

Daffonchio and Associates Architects, converted the industrial space into a cutting-edge destination. Gracing the February 2013 cover of Entrepreneur Magazine, Liebmann has been branded a rebel with a cause.

Liebmann is the founder and CEO of Propertuity, the development company behind Maboneng. Propertuity believes strongly in sustainable environmental design and has retained as many of the existing features of the inner city as possible, across all its developments. Propertuity is committed to recycling during the building process and is thinking of using off-grid power for Maboneng. It is as serious about security in the precinct as it is about the environment and has introduced standard security features, such as CCTV surveillance, precinct patrol vehicles, security guards and biometric access control for residents.

In addition to bricks-and-mortar redevelopment, Propertuity is also engaged in social development and upliftment, running several community projects from

MAIN PICTURE Once an old warehouse, Arts On Main is a haven for the modern creativeTOP Artisan Lofts reinvents high-rise urban livingABOVE The Maboneng Precinct is quickly becoming a vibrant “city within a city”


urban renewal

Maboneng, including education programmes for local children. The Made in Maboneng initiative encourages people to buy local in support of retailers and service providers who operate within a five-kilometre radius of the precinct.

Maboneng dissectedBy 2012 the Maboneng Precinct had grown into a community of almost 1 000 people, 700 of them residents, and Propertuity’s portfolio is now 30 properties strong.

Arts On MainCreated out of an old bonded warehouse and the old DF Corlett construction offices, Arts On Main was completed in July 2009 and is made up of commercial, office, gallery and retail space. It unites some of Johannesburg’s best art, artists, eateries, urban office spaces and high-profile events, and hosts the popular Market on Main every Sunday. Artists with studios at Arts On Main include William Kentridge, Mikhael Subotzky and Kim Lieberman. Other gallery and retail spaces include Goethe On Main, Nirox Projects, David Krut Publishing, LoveJozi, Black Coffee and Work Design.

ABOVE The 12 Decades Hotel is a boutique development that chronicles Jo’burg historyBELOW “Maboneng 2.0 Shifting Urbanism Exhibition” – an example of how the precinct takes pride in both art and urban regeneration



urban renewal

Revolution House Completed in March 2012, Revolution House is Maboneng’s second residential development. It has three floors of residential apartments (double studios and penthouses) as well as exclusive rooftop units. The mixed-use development also houses a full floor of film and sound studios and, on the ground floor, Revolution Barber, NewBrow Art & Fashion, and the Black Box eventing space. Originally a juice factory, Revolution House was developed out of an early 1920s Art Deco building.

Fox Street Studios This exclusive development has four open-plan units that all sold off plan. The retail section on the ground floor includes restaurants, clothing stores, interior-design stores and Maboneng’s own community centre, A Curious Cave.

The Main ChangeA redeveloped 1970s industrial warehouse, The Main Change is a contemporary office building that offers entrepreneurs and innovators a


urban renewal

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Commercial Property Finance | Specialised Finance

Sometimes building a bigger business means finding help.Marula Supermarket is one of the most successful privately owned retailers in Limpopo. They had been operating for more than 20 years, and they wanted to grow. They approached their bank, and began expanding their premises to include more retail and storage space. It was all going superbly, then at the most crucial of moments, their bank let them down. They were lef t in the cold, with a half-f inished project on their hands. Then Marula Supermarket turned to FNB for help. Luckily for them, help is just what we do.

We assessed their situation and offered them what their previous bank could not; a tailored, one-of-a-kind financial solution that allowed them to complete their expansion. They have achieved their vision of a new, state-of-the-art shopping centre and creating opportunity for other businesses to trade. Marula Supermarket has plans in the pipeline to enrich and expand their business even further. It just goes to show that if your business is going far, we can help you get there.

If your business is going far, we can help you get there. Speak to our Acquisition Team. Contact Zak Sivalingum on 011 649 0502, 082 333 0468 or email [email protected] Contact us on 087 312 8912 or email [email protected] for more information.


urban renewal

space in which they can concentrate and collaborate. The offices are available for rental or for purchase. The building also houses a spa, a meditation zone, a holistic-healing centre, a rooftop health-food café, fashion and furniture stores, and Blackanese Sushi and Wine Bar on the ground floor. The building is also home to Open, a space where start-ups and freelancers can work together. Completed in early 2012, The Main Change was given the Halala award for Working and Buying Johannesburg.

Main Street Life Completed in July 2010, this converted 1970s industrial warehouse was the precinct’s first mixed-use development and includes residential space as well as commercial, workshop, exhibition and eventing venues. Main Street Life includes 194 single, double and penthouse units, a rooftop gym, a rooftop bar and the 12 Decades Hotel. It is also home to Bioscope Independent Cinema, the PopArt theatre and performing-arts centre, and a number of restaurants and galleries.

12 Decades HotelThis swanky boutique hotel’s rooms were conceptualised by some of South Africa’s top artists and designers, including LoveJozi, Black Coffee and Dokter & Misses. It chronicles the history of Johannesburg from 1886 to 2006 – hence the name 12 Decades.

MOADThe Museum of African Design, or MOAD, is a multidisciplinary exhibition and performance space, which sits opposite an artisanal factory that is both the studio of the Trinity Session and a facility for art and artisanal manufacture.

The urban futureDevelopments in Maboneng still continue today. Under construction is Artisan Lofts, a seven-storey apartment block on the corner of Market and Albrecht streets. Forming part of phase four of Maboneng, Artisan Lofts includes well-designed, open-plan lofts with views of the city. The units range in size from 33m² to 200m² and feature bespoke artisanal fittings. The ground floor will cater for artisans looking to combine their manufacturing and retail space. Another interesting development in the precinct is Off The Grid. Situated at 253 Main Street, the five-storey parking lot and transport hub will offer the residents of Maboneng more than 200 parking bays, a shuttle service (Mabo’Go), and alternative modes of transport, including electric bicycles.

Other forthcoming developments include the mixed-use Urban Fox building, where an athletics club will be housed as well; the Maverick Corner commercial and retail development with a late-night bar; Main Street Bazaar; and the greening of the precinct’s pedestrian area.

A number of other businesses in the precinct are following Propertuity’s lead and upgrading their buildings. The Jozi revolution has begun.

FROM TOP Maboneng is full of kerb-side restaurants that add to its pavement-culture charm; Maverick Corner is set to become a retail hot spot in the precinct; a chic, modern apartment in the Maboneng Precinct; Main Street Bizarre is an exciting new development that will elevate the area even further


urban renewal

Kramerville: from fabric to fantastic

Kramerville’s old warehouses have been transformed into chic, cutting-edge design- and-decor hubs for the well-to-do consumer

K ramerville began its life as a semi-industrial hub for construction companies, fabric houses and just about anyone who required no-frills warehousing and

low-grade office space at cheap rentals. Located adjacent to the M1 North in the east, Marlboro in the south, Katherine

in the west and South in the north, Kramerville has undergone a metamorphosis in the past six years. Roads have been improved, parking maximised (though a lot still needs to be done), and security and clean-up crews keep the litter, weeds and criminal element at bay.

It is, however, the look and feel of the three parallel roads (Kramer, Appel and Archimedes) as well as Desmond, which runs adjacent, that tell the story of a district that has cottoned on to the idea of transforming its business premises into beautiful shop fronts. This has not only done well for the area, but also for the businesses and property owners’ bottom lines.

“This area is becoming a one-stop shop for home and hotel developers,” says property owner Mike Valentine, who owns the Weylandts building on Kramer Road and owns/runs Katy’s Palace Bar on Desmond Street. “What we’ve done here is divide the district so that a guy can come and buy 70% of what he needs for his project. There’s plumbing, indoor and outdoor furniture, lighting and fabric shops.”

High-end furnisher Weylandts occupies what was once a double-storey derelict warehouse. Today, its large panel windows and beautifully manicured garden invite not only traders into the shop, but also walk-in consumers.

“We cater mostly to the trade market here,” says Valentine, sipping coffee from a paper cup. “This is where the big business is and that’s why companies are here. It’s also becoming a retail hub because it has three restaurants. Five years ago it wouldn’t even have been a vague thought to anyone here that there would even be one!”

Valentine doesn’t bat an eyelid when he says that not only is it near-impossible to lease or buy here any more, but that property prices have skyrocketed. “Two years ago you would have struggled to get R45 per square metre for ground-floor space,” he tells us. “Today it’s more than R100. Weylandts have a lease for five years but have expressed that they would like a 10-year lease.”

Talk about a property owner’s dream come true… High rentals, committed tenants and a prime location. Kramerville, according to Valentine, was an act waiting to happen.

What was the catalyst?According to Tina White, who manages Kramerville Management District (KMD) on behalf of Urban Genesis Management, Valentine got the ball rolling when he redeveloped his building facades and convinced a number of other property owners to follow suit.

“Kramerville was legislated as a city improvement district (CID) in October 2005 with 51% of the property owners agreeing to the idea,” says White. “We rolled out cleaning and security services in January 2006 and today we have 100% buy-in from property owners in the area.”

A CID is a legislated area with defined geographical boundaries. Property owners pay levies (over and above their rates and taxes) to the managing CID company to supplement the services already performed by the local council and to enhance and manage the public space.

The KMD, run by White, has seen some great improvements in the public space since is was formed. “A year ago we got City Power to install street lights in the area and we paved a derelict pavement on Archimedes Street. We’re also in talks with the Johannesburg Roads Agency to have a traffic light erected on Desmond and South for which KMD has offered to pay.”

While aesthetic and increased foot traffic are important to achieve urban regeneration, what is vital is the safety and security of the businesses and the public. The KMD employs four public-safety ambassadors who patrol the area 24/7 on their bicycles, while two vehicles with KMD branding also patrol 24/7. Each public-safety ambassador is trained in all security provisions, including proactive and reactive prevention.

Between 2010/11 and 2011/12, crime for KMD dropped by a massive 51% (see “Crime statistics for KMD 2010/11 – 2011/12” above). This has also opened the door to creating a market-type community in the KMD.

“There is a market that takes place on the first Sunday of every month,” says White. “It gets very busy. Originally some businesses said they didn’t want to open on a Sunday, but with so much foot traffic they have realised they would be missing out on excellent potential business.”

Business has been so good in the KMD that White says there is no more space to let. “As a result, Eastgate extension, which neighbours Kramerville, is looking at setting up its own City Improvement District,” she says. “Wynberg is already busy. It’s amazing to see how cities develop thanks to property prices and value in a lot of areas.”

Crime statistics for KMD 2010/11 – 2011/12

Description2011/12

Private Property2011/12

Public SpaceTotal

2011/12Total

2010/11

Fighting in public 2 2 2

Attempted robbery 1

Theft 3 3 9

Theft of motor vehicle 2

Attempted theft of motor vehicle 2

Damage to property 2 2 4 2

Armed robbery 2 1 3 3

Break-in business 6 6 15

Assault 2

Hijacking/Attempted 2

Arson/Fire

Robbery/Mugging

Theft out of motor vehicle 3 3 1

Fraud 1 1 2

ABOVE The view from Katy’s Palace Bar in KramervilleBOTTOM Weylandts occupies a once-derelict double-storey warehouse

We are Proudof our new NameWe are excited to announce that on the 22nd March 2013, The FAAC group introduced the name for its new parking Business Unit,

We are excited to announce that on the 22nd March 2013, The FAAC group introduced the name for its new parking Business Unit,

The benefit of the combined companies enhances the strengths and values, setting a solid platform for the new Business Unit and for the future of our offered Parking Systems in Southern Africa.

We are excited to announce that on the 22nd March 2013,

The FAAC group introduced the name for its new parking

Business Unit,

ZEAG South Africa introduces FAAC's new Business Unit

HUB Parking Technology

We are Proud of our new

Name

The benefit of the combined companiesenhances the strengths and values, setting a solid platform for the new Business Unit and for the future of our offered Parking Systems in Southern Africa.

We are excited to announce that on the 22nd March 2013, The FAAC group introduced the name for its new parking Business Unit,

The benefit of the combined companies enhances the strengths and values, setting a solid platform for the new Business Unit and for the future of our offered Parking Systems in Southern Africa.

We are excited to announce that on the 22nd March 2013,

The FAAC group introduced the name for its new parking

Business Unit,

ZEAG South Africa introduces FAAC's new Business Unit

HUB Parking Technology

We are Proud of our new

Name

Hub Parking Introduction 2013 April.indd 1 4/5/2013 7:54:07 AM

ZEAG SA (Pty) Ltd 166 Seilskip Street, Laser Park, Honeydew, 2170, South Africa Tel: +27 11 794 4525

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CM

MY

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CMY

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PENTAGON CORPORATE AD FAP.pdf 1 2012/10/29 3:56 PM


advertorial

Applying the new SAPOA method for measuring floor areas

Since the introduction of the new edition of the method for measuring floor areas, which was

approved for use on 1 August 2005, Excellerate Facilities Management (EFM) has been updating existing building SAPOA records on behalf of several clients.

“SAPOA recommends the use of this document for both existing and new buildings,” explains Sean Liebenberg, new business executive at EFM. “And, as members of SAPOA and as intended, both EFM and our clients are embracing this new method in order to achieve national uniformity with regards to the measurement of rentable area.

“Some of the changes have sparked debate, discussions and confirmations with SAPOA to iron out any ambiguities and interpretations. In general, we have applied the following principles relative to the various clauses within the document. Bear in mind that what is noted in this article is also up to interpretation and debate. Our rule of thumb in terms of application has been guided by SAPOA, so that the landlord has the ultimate say in the interpretation and application of the final rules.

“Without rewriting the new SAPOA method for measuring we hope this may be of use in interpreting and applying the document in a practical manner,” he says.

Rounding off of measurementsIn the past, EFM has had to produce measurements with four decimal places in order to balance with property-management systems rounding off at three or less decimals. Now clients have adopted the SAPOA recommendation of rounding off to the nearest full square metre, and EFM finds that this eliminates numerous debates with various consultants over minor decimal differences.

“Our exposure to date has been limited to the commercial sector of offices, retail and industrial property,” says Liebenberg. “Feedback has led us to apply the following rules when measuring area for these building types.”

Officesl The Rentable Area consists of the Usable Area plus the Common Area. l The Common Area is broken down further into two categories: a Primary Common Area on any given floor, and a Remote Common Area, such as entrance foyers, and plant and service rooms located elsewhere in the building or on site and not on the given floor.l The Rentable Area excludes the Supplementary Area that may produce additional revenue (for example, storerooms, balconies, terraces, service passages, parking, etc).

According to Liebenberg this has been the major change that EFM has encountered because the above have resulted in substantial changes in comparisons of old to new measurement methods. Remote Common Areas have increased the Rentable Area, while the Supplementary Common Areas have, in turn, reduced the Rentable Area.

“This varies from building to building,” says Liebenberg. “In some cases, they either even each other out, or increase or decrease the total Rentable Area – it depends on respective sizes and areas. Overall we have noted an increase of between 2,5% and 5% in Rentable Area across the office buildings we have re-measured. The challenge for landlords and property

managers is how to apply these Rentable Areas per tenant into current leases and property-management system records. EFM recommends that SAPOA also looks into how Remote Common Areas located in the common site in an office park with varying building sizes are applied.”

Retail l The Rentable Area consists of the Usable Area plus the Secondary Common Area serving only one tenant. Some of the changes EFM has dealt with include:

l The Use able Area, as per SAPOA, is the area capable of exclusive occupation by the tenant, which is the total area enclosed by the lease line, the demising walls and external walls, whether or not a shop front is erected behind the lease line.

l The Common Area consists of the Primary and Secondary Common Area.

l The Primary Common Area, as per SAPOA, includes all building areas that are not part of the Rentable Area. The Primary Common Area is not charged to tenants, and includes parking areas.

l The Secondary Common Area is an area such as an access passage, plant room, toilet, loading dock, etc. Any Secondary Common Area dedicated to serve one tenant becomes Rentable.

“Our challenge now and in the past has been the interpretation of the lease line,” comments Liebenberg:

Sean Liebenberg, new business executive at Excellerate Facilities Management


advertorial

SAPOA indicates this is ‘the notional line determined by the landlord as the maximum extent of the shop-front position separating the shop unit from the Primary Common Area. The actual position of the shop front behind the notational lease line is not taken into account in the measurement of the Usable Area.

“Often the lease line, especially with old buildings, is not indicated on hard-copy drawings or historical records. Determining the maximum extent is open to interpretation, so EFM has relied on landlord interpretation and opinion. Applications vary from inner surface of the glass or shop-front detail to the furthest extent of structural columns protruding into the Primary Common Area and between consecutive shops.”l Isolated columns and enclosed penetrations are excluded from the Usable Area, irrespective of size. l Projections in demising or external walls exceeding 0,25m² in the sectional area are excluded.

According to Liebenberg, columns have created a bit of an issue as the document refers to isolated columns and projections in demising walls. However, the text and diagrams in use in the current SAPOA document leave room for differing interpretations.

Isolated columns are easy to identify and remove, while demising projections could be interpreted differently – in or out, depending on sectional area calculations.

“We suggest having these interpretations and decisions or rules documented and approved by the landlord as the mandated and applied rule that can be retrieved and justified should another party challenge the measurement,” he says. “We have seen an increase in Retail Rentable Areas even with the exclusion of columns and projections in demising walls. A large component of the increase relates to the inclusion of Secondary Common Areas dedicated to one tenant. Quite often the larger retail stores will include service passages, dedicated plant rooms, toilets and loading docks. Again, this varies from store to store, but across the board EFM has encountered increases in Rentable Area of between 2,5% and 7%”.

IndustrialThe major change with industrial buildings is their classification into two categories: single-tenant industrial buildings and multi-tenant industrial buildings. With regards to single-tenant industrial buildings, the Rentable Area refers to the entire construction area

measured at each covered floor level over the external walls to the external finished surface – without any deductions. In multi-tenant industrial buildings the Rentable Area consists of the Usable Area and the Common Area.

“While we have made adjustments to records for single-tenant industrial buildings, in our experience little has changed regarding multi-tenant industrial buildings. But the adjustment in Rentable Area is quite noticeable for single-tenant industrial buildings,” says Liebenberg.

“We believe this project is extremely worthwhile and we welcome the new measurement method. In the end, the areas will not change immediately for a tenant lease, but in the long term – on renewal or negotiation of new leases – a definite increase in Rentable Area and property value will be experienced. As landlords apply this new measurement method on their portfolios, interpretations will be resolved. In time the SAPOA document can and will be enhanced to reflect these experiences and adjustments.

“We welcome any queries from owners, landlords and consultants who are involved in creating Rentable Area records. They’re also encouraged to share any experiences they may have had.”

Call Sean Liebenberg at EFM on +27 (0)11 911 8000 or email [email protected].

MAIN PICTURE The interior of the East Rand Mall, which is managed by JHI PropertiesINSET This property in Highveld Technoparkin Centurion is owned by Capital Property Fund(Listed on JSE) and managed by JHI Properties


feature

Beauty and the priest

South Africa’s places of faith and spirituality raise the architectural standards one brick and prayer at a timeBy Candace King

feature

Apart from its unparalleled landscapes, temperate climate and

accommodating people, South Africa is also home to some of the most

beautiful temples and places of spirituality, which are not only aesthetically

appealing but also hold significance for the followers of the country’s diverse

religions. From humble sanctuaries to grandiose structures, South Africa’s

places of worship are praiseworthy.


featurefeature

The Gardens ShulAlso known as the Great Synagogue, the Gardens Shul is a historic landmark and much-loved temple among the Jewish community and avid tourists alike. Situated at the base of Table Mountain in Cape Town, the Shul is a mainstream Orthodox congregation point that offers shul services, spiritual enrichment, and educational and social opportunities. The history of the synagogue dates back to the first services that were held in Helmsley Place in Hof Street and the formation of the Cape Town Hebrew Congregation in 1841. Several venues had come and gone until the Great Synagogue was built in 1905 to accommodate the influx of Jewish people who immigrated to the Mother City from Eastern Europe. The synagogue forms part of a greater complex that serves a vibrant Jewish community and includes the Holocaust Centre, the South African Jewish Museum and the Nelson Mandela Auditorium.

KoyamaAlthough not technically a temple, Koyama is an architectural masterpiece of Japanese tradition and Zen spirituality. Situated in Northcliff and perched on Johannesburg’s second-highest point, Koyama is

a Bujinkan Ninjutsu dojo that boasts exquisite features and breathtaking views of the city. Set against the backdrop of Japanese themes that dictate the architectural and interior styles, Koyama unifies the juxtaposing aspects of contemporary aesthetics and ancient traditions. The building utilises a selection of textured and raw materials – such as stone, timber and concrete – which are offset by sheet-glass panes and brushed steel. Natural elements were also considered in the spatial composition of Koyama. While the building’s interior is minimalistic, the exterior features the creative use of plants, a koi pond and an enchanting Zen garden.

Koyama is built on quartzite rock, which is believed to resonate with many properties, including the ability to increase awareness between the conscious and the subconscious, cleanse a person’s energy and increase focus.


feature

Sri Ramakrishna TempleSituated in Glen Anil in Durban, the Sri Ramakrishna Temple and Ashram Complex is devoted to Hindu traditions and teachings, and is the headquarters of the Ramakrishna Centre of South Africa, a religious organisation that thrives on carrying out spiritual and humanitarian activities. With a seating capacity of 350, the temple was dedicated to Sri Ramakrishna and the ashram was officially opened in 1995. In addition to housing the Sri Ramakrishna Temple, the complex boast several other facilities, including a reference library and book shop, the Ramakrishna Clinic of South Africa, a lecture room, living quarters and a kitchen.

Great Park SynagogueWith a history that can be traced back to the very beginnings of Johannesburg, the Great Park Synagogue serves as the epicentre of Jewish religious, communal and cultural life in the “place of gold”. One year after the founding of Johannesburg City in July 1887, the decision was made to form the Witwatersrand Goldfields Jewish Association, which eventually led to the establishment of the Great Park Synagogue in 1914. The architecture of the synagogue is based on its predecessor, the Great Synagogue on Walmarans Street, which in turn was based on the Hagia Sophia

Other temple marvelsl De Goede hoop temple, Cape town, Western CapelDutch reformed Church, Graaff-reinet,

eastern CapelJohannesburg mormon temple,

Johannesburg, Gautenglsandton mosque, Johannesburg, Gauteng

in Istanbul. This shul’s trademark features include a large dome and beautiful arches.

Nizamiye Turkish MosqueWith its great minarets forming part of Midrand’s skyline, the Nizamiye Turkish Mosque is a prized temple that has attracted thousands of visitors to its gates since its opening in October 2012. Regarded as the southern hemisphere’s largest and most elaborate mosque, the Nizamiye Turkish Mosque is situated in the centre of a 10,3-hectare complex that includes a school, a student boarding facility, sports facilities, a clinic, a conference facility for 800 people, a dining hall and a grand bazaar. The mosque is based on the 400-year-old Ottoman Selimiye Mosque in Turkey and features Turkish Ottoman architecture.

Temple of UnderstandingThe Sri Radhanath or Hare Krishna Temple of Understanding in Chatsworth is regarded as one of the most auspicious temples in Durban and is visited by many Hindus and tourists every year. Built in 1969, the Temple of Understanding was created in the shape of a lotus and features several beautiful design elements, including gold-tinted windows, marble tiles, traditional ornaments, crystal chandeliers and

expansive ceiling murals of Lord Krishna, one of Hinduism’s most revered deities. The temple is also home to a vegetarian restaurant, which is part of the non-profit Hare Krishna organisation that aids the community.

Nan Hua Buddhist TempleSituated in Bronkhorstspruit, the Nan Hua Buddhist Temple is an ethereal sanctuary dedicated to the sacred ways and teachings of Buddhism. Nan Hua is the name of the South African branch of Fo Guang Shan, the humanistic Buddhist order that has its roots in other parts of the world, such as Malawi, Tanzania and the Congo. The temple hosts several functions and events throughout the year, including the Chinese New Year celebrations. The idea to build a temple originated in around 1992 when the Bronkhorstspruit City Council donated six hectares of land to the Fo Guang Shan Buddhist Order and earmarked it for the development of a Chinese Buddhist cultural and educational complex.

Soofie MosqueNext time you’re in Ladysmith be sure to pay a visit to the Soofie Mosque, a compelling masjid that features intricate stonework, towering minarets, and picturesque archways and turrets. The mosque’s history goes back to 1895, when the great Islamic iconic leader Hazrath Soofie Saheb arrived in South Africa and bought a piece of land on which to develop a grand temple. After Saheb’s death, builder and architect Jamaloodeen renovated the masjid in 1969; it has since become a historical landmark.

ABOVE The Sri Ramakrishna Temple and Ashram ComplexBOTTOM Nizamiye Turkish Mosque BOTTOM RIGHT The Dutch Reformed Church in Graaff-Reinet

“Are issues related to UTILITIES taking up the most of your time and energy or are you lucky enough to focus 100% on your core business?”

RMS is currently taking their clients to the next level of Utility Management –

UTILITY MANAGEMENT 2.0

Let us show you how our partnership with ECHELON (the LEADING GLOBAL SMART METERING SYSTEM)

and the systems and applications that RMS have built on top of this technology can: mitigate your UTILITY RISKS; empower your tenants with RELEVANT CONSUMPTION INFORMATION; provide you with a FUTURE PROOF SOLUTION (and one you will probably implement in the next couple of years?)

Pretoria | Sandton | Durban | Cape town 012 001 3600 • [email protected] • www.remotemetering.net

The world needs fewer engineering companies.

Rebranded as Royal HaskoningDHV, SSI Engineers & Environmental Consultants believes in being more than an engineering company.

Our rebranding to Royal HaskoningDHV ushers in a new class of engineers and consultants, o�ering solutions for the sustainable interaction between people and their environment, ultimately enhancing society together.

www.rhdhv.co.za www.royalhaskoningdhv.com


BAM architects

The snowball effect

n tough times, development project proposals can be pipe dreams,” says Chris Bam, who is currently celebrating his Cape Town architectural practice’s 20th

year and Level 1 B-BBEE rating. ‘It’s getting them off the ground and delivering them that’s the real deal.”

And that’s what he’s good at, with Bam Architects currently notching up more than R600-million’s worth of new building projects in almost every commercial and large-scale residential category all over Cape Town in a recession that refuses to go away. Other projects on the drawing board could bring the count up to R1-billion.

Part of the Bam success is maintaining impetus. “If you manage to buck the recession, each new project creates a powerful snowball effect that keeps you going,”

he says. It also means that when finance is made available for a development project right now, it has to work harder to bring an acceptable investment return. The combination of an experienced developer and professional team is a good start.”

Bam’s projects are in prominent places in greater Cape Town, from the striking ocean-side apartments in Blaauwberg to innovative commercial and industrial buildings in the northern areas of Epping and Philippi.

Currently, at the Tyger Valley Waterfront, two Bam Architects-designed buildings – one already completed and the other still under construction – account for R400- million. The recent Virgin Active Health Club redesign in the area is another successful project.

BAM architects

I“


BAM architectsBAM architects

MAIN PICTURE AND INSET A newly completed AAA-grade office Block for Ingenuity Property Investments Ltd, anchored by Glacier and designed by Bam Architects. Photograph: Wieland Gleich – Archigraphy.com


BAM architects


BAM architects

The completed building at the Tyger Valley Waterfront is an office building for Ingenuity Property Investments, as headquarters for Glacier by Sanlam. The second building is a 10 000m² AAA-grade building for The Integrity Property Fund developed by Omnicron, to be completed in August next year for anchor tenancy by WorleyParsons.

This is what Chris calls “the last piece in the puzzle” at the Tyger Valley Waterfront. Its design, with a dramatic single column-supported wing, allows visual contact with the waterfront for passers-by. “It feeds into the vision by the City Planners for a CBD

node where pedestrians are the primary consideration and parking visibility is reduced.”

Creative landscaping of the site emphasises the interface between the building and its environment.

Keeping a connection with waterside projects, Bam Architects is also completing the last of three buildings in Century City for the Rabie Property Group, where the commercial component, Quays, shares space with two residential projects, Quayside and Quay North. Here too, the firm was responsible for the design of the Virgin Active Health Club.

One of Bam Architects’ core competencies is the design of industrial buildings used as dedicated distribution centres for the retail industry. Among these are projects for Redefine, South Africa’s second-largest property group. “And our diversified portfolio shows a versatility that we nurture to ensure we are prepared for any major project, whatever the proposed use, whether corporate head offices, health and leisure, industrial or multiresidential.”

Chris heads up the practice with a team of highly qualified and experienced professionals. “We work hard to retain our small-firm ethos with a capacity for very big projects,” he says.

The underlying philosophy of Bam Architects is based on service, creativity, functionality, practicality and commercial viability. “A building project needs to come in on budget and on time. It must result in a final product with that intangible creative edge to ‘sell’ it both to the client and to the tenants,” says Chris.

He recognises that commercial projects are driven by tenants, who he believes have educated opinions about what is good in a building and what will best serve their needs. Buildings that don’t meet current criteria for low environmental footprints and do not have the right green credentials are already at a disadvantage. “Tenants know the value environmentally conscious designs have in mitigating their long-term location-cost increases,” he says. “Our focus is on meeting and exceeding the SA Green Building Council’s star ratings for our projects, both in their design and as-built, with the assistance of specialist consultants. If a building doesn’t have a green star rating, it is already obsolete.”

The practice also strives to meet the highest standards in its business dealings, and even though it is a relatively small enterprise, Bam Architects has a Level 1 B-BBEE rating because of its commitment to transformation. “Our positive rating also benefits our clients in terms of their own B-BBEE procurement criteria,” says Chris.

From its headquarters at The Palms Decor and Lifestyle Centre in Woodstock, a major redesign project undertaken for Wetherlys 13 years ago and now owned by Omnicron, Bam Architects is having a major impact on the infrastructure of Cape Town and its urban landscape.

TOP Horizon Bay mixed-use development for Swish Property Group ABOVE Aquarius mixed-use development OPPOSITE TOP New AAA-grade office development for The Integrity Fund and Omnicron, anchored by Worley Parsons OPPOSITE CENTRE LEFT Quayside apartments in Century City for Rabie Property Group OPPOSITE CENTRE RIGHT AND BOTTOM Virgin Active Health Club Tyger Valley

Chris Bam

tel: +27 (0)21 465 6007 cell: 082 490 1060 fax: +27 (0)21 465 6008email: [email protected]: www.bamarchitects.co.za


45th international convention

Speaking volumesIt’s all about

the cream of the

property-industry

crop at the 45th

international SAPOA

Convention and

Property Exhibition,

an auspicious event

that celebrates all

things property-

related with a stellar

line-up of speakers

By Candace King

With 47 years under its belt and the

45th anniversary of the convention,

SAPOA has much to celebrate.

The annual SAPOA Convention and

Property Exhibition is on everyone’s

minds and agendas this month.

This year’s convention takes

place from 14 to 16 May at

Sun City. The event will feature

a variety of networking functions,

including plenary sessions,

workshops, seminars, the

Beach Party and Golf Day,

as well as several relevant

and thought-provoking local

and international speakers.

Amelia Beattie Chief investment officer at STANLIB Direct Property InvestmentsAmelia Beattie provides risk-adjusted, inflation- beating returns for investors as chief investment officer of STANLIB Direct Property Investments with her analytical mind-set, proven investment skills and specialist industry knowledge. She also serves as chairperson of the Women’s Property Network.

Andrew BrookingCorporate finance executive and founding director of Java CapitalAndrew Brooking is the founder of Java Capital – a dominant capital-markets and corporate-finance advisor to the listed real- estate sector in South Africa. He has played a leading advisory role in IPO, capital raising and M&A activities, and has also advised the South African listed real-estate sector regarding the establishment of REITs.

David Cooke Director at ActisBased at Actis’s Johannesburg office and responsible for investments in the consumer sector in Africa, David Cooke is also responsible for coordinating Actis investments in the retail sector across emerging markets. His board seats include Vlisco, a Pan African fashion business that has a network of more than 25 boutique stores across West and Central Africa.

Chris GibbonsBroadcasterWith 30 years of experience in South African radio, TV and print, Chris Gibbons is regarded as a media guru. He is also a highly sought-after public speaker, conference chairman and facilitator. With a background in business and management, he currently anchors The Midday Report on Talk Radio 702 in Gauteng and 567 Cape Talk in the Western Cape.

David GreenFounding shareholder and director at ProAfrica Property ServicesDavid Green is a founding shareholder at ProAfrica Property Services and leads the industrial, commercial and retail consultancy at the group. He used to be the managing director at Pace Property Group, a leading property-brokerage and property- service organisation (the alliance partner of Cushman & Wakefield for 10 years).

Richard W GreningerVice chairperson, president of BOMA (USA)With 35 years of experience in commercial real estate, Richard Greninger served as chair of BOMA International’s National Advisory Committee, has testified before the United States Congress and Senate on behalf of BOMA International, and was a guest lecturer at Harvard University as part of BOMA International’s Emerging Leaders in Real Estate executive-education programme.



Anton de Goede Coronation Fund ManagersAfter a decade of dealing with investments, Anton de Goede is a member of the absolute investments team at Coronation Fund Managers, with a specific responsibility for listed-property-related research. He is also a chartered financial analyst and financial risk management charter holder.

Estienne de KlerkExecutive director of Growthpoint Properties, incoming SAPOA president Having been involved in banking and the listed property sector for more than 18 years, Estienne de Klerk has a wide range of experience in takeovers, mergers and acquisitions, BEE deals, and capital raisings.

Patricia de LilleMayor of Cape TownFighting injustice for the past 34 years in the political landscape, Patricia de Lille boasts an impressive resume as one of our country’s most steadfast and iconic political figures, who has achieved many firsts as a woman in politics.

James EhlersManaging director at Atterbury Property DevelopmentsAfter working in the construction and development business, James Ehlers headed the development division of Atterbury in 2002, which led to the evolution of the company into what it is today. He initiated the expansion of Atterbury into several African countries, resulting in the establishment of the Atterbury Africa Fund.

Jeremy Kelly Director of global research programmes at Jones Lang LaSalleWith more than 25 years’ experience in commercial property market analysis, Jeremy Kelly is a director within global research at Jones Lang LaSalle, and is responsible for several of the company’s flagship global-research programmes. These include global market perspective, real-estate transparency and world winning cities research.

JP LandmanEconomist, political/trend analystSelf-employed political and economic trend analyst, JP Landman focuses on trends in politics, economics, demography and social capital. He is a visiting professor at the Business School of the University of the Free State; and he consults to Nedbank Private Wealth, one of South Africa’s largest private-wealth managers. In 2013 he was elected a public policy fellow at the Woodrow Wilson Centre for International Scholars in Washington DC.

Tony LeonBusiness consultantAuthor, commentator, business consultant and lawyer, Tony Leon was a member of the South African Parliament for almost 20 years. He led the Democratic Alliance for 13 of those years, making him the longest-serving leader of the opposition in Parliament since 1994. He’s also served as South Africa’s ambassador to Argentina, Uruguay and Paraguay. Now back in South Africa, he’s consulting to business, writes a weekly newspaper column, and is about to publish his third book, The Accidental Ambassador – From Parliament To Patagonia.

Fergus Mackintosh Head of real estate for Africa at Standard BankFergus Mackintosh is responsible for the real- estate funding activities of the Standard Bank Group outside of South Africa. Educated in the UK, he began his career in London with international consultancy firm Knight Frank, qualifying as a chartered surveyor in 1991.



Justice W MalalaPolitical analystHaving been the founding editor of the upmarket South African daily newspaper This Day, Justice Malala’s position in the media industry speaks volumes. He was an executive producer on Hard Copy I and II, ground-breaking TV series on SABC3. Malala is a judge for the country’s most prestigious investigative journalism awards, the Taco Kuiper Awards for Investigative Journalism.

Lesiba MalobaGeneral manager of property investments at Public Investment CorporationLesiba Maloba is responsible for a R60-billion property portfolio. Spanning two decades, Maloba’s experience in the property sector reaches across continents. He holds a Master’s in Community (Urban) Planning from the University of Cincinnati (USA). He is a board member of the V&A Waterfront and sits on the property committees of V&A Waterfront and Community Property Company.

Elias MasilelaCEO of Public Investment CorporationElias Masilela is an established academic and businessman. He was appointed by President Jacob Zuma to the position of CEO of the Public Investment Corporation, and was further appointed by the President as one of 24 commissioners of the National Planning Commission, tasked with producing a national development plan and vision statement. He’s lectured, written and been published widely.

Peter MerrettNational head of customer service at Jones Lang LaSalle in AustraliaPeter Merrett leads the customer experience across one of the most prestigious commercial office portfolios in Australia. His job also entails leading some luxury country-house hotels in the UK, which has resulted in winning the national Hotel of the Year award twice.

Lisa PratsVice president of marketing and communications at BOMA International (USA)Lisa Prats directs the association’s marketing, communications, publishing, public relations, website, social media and international relations initiatives.

Daniel SilkePolitical analyst and futuristDaniel Silke is an independent political analyst, author and keynote speaker with a special focus on local and international politics. Regarded as one of South Africa’s leading political commentators, he lectures widely on issues surrounding global change, volatility and the future of the world. Silke’s South African client list includes Standard Bank, First National Bank, MTN, Rand Merchant Bank, Nedbank, Absa, Sanlam and Eskom.



GOLD

SILVER

BRONZE

SAPOA extends its warmest thanks to all the sponsors of the 45th International

Convention and Property Exhibition, without whose generous patronage the

convention would not have been possible

Judge Dikgang Moseneke Deputy chief justice of the Constitutional Court of South AfricaJudge Dikgang Moseneke started his professional career as an attorney’s clerk at Klagbruns Inc in Pretoria in 1976. He boasts an extensive range of achievements, recognised through the KWV Award of Excellence and the Black Lawyers Association Excellence Award (1993).

Michael O’MalleyFounding member and director at RMB WestportAfter qualifying as an architect, Michael O’Malley practised for 24 years before entering the property-development industry. He moved from Johannesburg to Abuja, Nigeria, in 2005 where he set up Profund Properties, before moving to Lagos in 2007. He then founded Westport Properties, which merged with Rand Merchant Bank in July 2008.

Patrick SumnerHead of global indirect property at Henderson Global InvestorsWith more than 30 years’ experience in international real estate, Patrick Sumner manages global, European and Asian property share funds worth approximately US$100-billion, including property funds of US$19- billion and property equities of US$2,5-billion.

Jeffrey ZidelIndependent nonexecutive chairman of Fortress Income Fund LimitedSuccessful property developer and investor Jeff Zidel has 40 years of experience in the property industry, covering all aspects of the sector. He was a cofounder of Resilient Property Income Fund and the winner of the 2010 Absa Jewish Achiever Award for listed companies.

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interview

Convention: a platform for sharingThe managing director of Atterbury Property Developments,

James Ehlers, shares his thoughts on the 45th annual SAPOA Convention and Property Exhibition, Atterbury’s achievements

and the African storyBy Candace King

Q How do you feel about being one of the speakers at this year’s convention?It’s an honour to be invited to speak. I will be talking about our company’s involvement in Africa. It’s obviously a topic of interest, and many people still need to decide whether they want to participate or not.

Q What does the convention mean to you?The convention is a forum where the broader industry is brought together. It has value in that it acts as a platform to exchange knowledge as well as a place for people to share and discuss their experiences.

Q In terms of your presentation, what will you be addressing at the convention?The topic last year was about the rush for Africa and the new opportunities it presents. My understanding of this year’s topic is that it’s a question of whether this African opportunity is real or not – and whether it’s materialising. I think it’s a good question because it gives substance to the real issues. Are the opportunities in Africa really there? We think so.

Q Atterbury has now moved into other parts of Africa. Is the continent the next big thing for the property industry in terms of development and investment?In our view, yes. Africa is a huge yet under-serviced market. The realities of developing in Africa are the exact reasons why development has not been done on a scale that the size of the market warrants. Despite these realities, it’s time to move into Africa. Looking at the market, retail is definitely leading.

Q What do you think are the trends for 2013 (and beyond) in the property industry?Greening and sustainability are definite trends. Green building standards are now becoming the norm, not

to mention a prerequisite for both building owners and building users.

I think it’s something that will improve with time. Apart from this, there has been a big development slowdown in the residential sector of the market, and I believe redevelopment within cities will become more prevalent so that cities don’t have to keep on extending their boundaries.

Mixed-use developments are also becoming more common and we are likely to see more of this type of development taking place.

Q So far, what would you say is Atterbury’s greatest achievement?I think our biggest achievement is having the ability to put together the company that we have – a company that is able to deliver high quality of work on a large scale. We managed to withstand the recent downturn in the property market and still have a full workload.

There are several new and exciting projects in the pipeline, including the 120 000m² Mall of Africa that we are developing on the Waterfall project in Midrand. We believe that this mall will be the biggest in South Africa. Waterfall itself is a massive long-term project for us that is finally beginning to show the effort that we have put into it over the last few years. At the moment we are constructing about 150 000m² of buildings on the property.

Our expansion into Africa is also one of our great achievements. This is an exciting time for us.

Q Where do you see the property industry in the next few years?To be honest, I don’t see significant changes happening in the industry going forward. I do, however, think it’s going to be about organic growth. And there will be some changes in the listed sector with the introduction of the REITs.

After graduating from the University of Pretoria in 1992 with a BSc in Building Management, James Ehlers worked in the construction and development business before heading up

the development division of Atterbury in 2002. Under his leadership, Atterbury Property Developments evolved from a relatively small business to the award-winning international property development company that it is today. Ehlers was instrumental in initiating the expansion of Atterbury into a number of African countries, resulting in the establishment of the Atterbury Africa Fund. Major projects are currently underway in Mauritius, Ghana,

Zambia, Namibia and Angola.


interview



interview

Thinking aheadWe catch up with Johan van der Merwe, the CEO of Sanlam Investments, and speak to him about his career and the bright future that he foresees

By Candace King

Q Tell us a bit about your background.I grew up on a farm outside Nelspruit and attended Bergland Primary School and Hoërskool Nelspruit. I lost my dad when I was nine years old but my childhood was a happy one, with my mom instilling in me a strong sense of self-belief. I have always been a very devoted sportsperson. From the age of nine, I began training for between 15 and 20 hours a week in the pool and was fortunate enough to secure a space in the Springbok biathlon squad. Sport has stayed in my blood and I now take competitive part in the Masters swimming circuit. I’ve been to Australia, Sweden and Italy to compete in the World Masters Swimming Championships. In terms of qualifications, I obtained an MCom in Tax and a BCom in Accounting cum laude from the University of Pretoria, and an MPhil Finance from Cambridge in 1991. I’m a keen traveller and organise family holidays every year to give my kids an unforgettable experience.

Q What job titles have you held?Before Sanlam Investments, I was with Investec Asset Management from 1997 to 2002 in a variety of positions, including head of SA resources, head of global equities and head of global resources. I was also responsible for the Botswana office and private equity, and was a director and executive committee member of Investec. Before that I worked in corporate finance, in roles with Billiton and Gencor. I also worked at Deloitte & Touche, and lectured in accounting and auditing at the University of Pretoria.

Q As CEO of Sanlam Investments, what are your responsibilities?Sanlam Investments consists of 14 businesses, including Sanlam Properties, and my role is to oversee the strategic direction of this “cluster” of businesses within the Sanlam Group, to look for new business opportunities in South Africa and abroad, and to explore organic growth avenues. A key focus currently is to ensure we are able to offer our clients access to the exciting investment opportunities that Africa offers. We have launched a number of funds over the past few years, including a Pan-African listed equity fund, and we plan to list an Africa property fund at the end of March 2013.

Q What do you love most about your job?For me it’s working with amazing people to realise the potential of the organisation and of the individuals within that organisation. When I originally joined Sanlam Investments, one of my first goals was to create an entrepreneurial culture that would allow talented individuals to thrive. We broke up the cluster into individual businesses and put in place champions or jockeys who were made fully accountable for the success of their business units. I believe that, more often than not, people will surprise you on the “plus side” – and this has definitely been the case with Sanlam Investments.

Q What are your predictions for 2013 in relation to African property investment and the property industry?I believe Africa is a sleeping giant when it comes to investment in general. The upside is immense and property investments are definitely not excluded. In order to reap the benefits one should be aware of what it takes to invest in Africa. The potential high returns don’t come without pitfalls – the age-old principle of “high risk/high reward” is definitely applicable. However, I believe that Sanlam’s footprint across Africa (we own local businesses in 12 African countries) and the experience gained on the continent over many years will stand us in good stead to reap the potential benefits.

Q What are your goals for this year?I don’t have very specific short-term goals but most certainly have a “bucket list” of things I would like to do over the medium to longer term. These include learning another language (probably Spanish or French), taking dance classes with my wife, scuba diving with my family, walking the Inca trails, organising a huge family reunion…

Q What are Sanlam Investments’ goals for this year?We have a number of strategic priorities, one of which is offering our clients access to a diverse range of investment opportunities in Africa. We are also focused on our South African retail operation, collaboration between the businesses in Sanlam Investments and taking our client offering to the next level. It looks as though 2013 will be a very exciting year for us.

Q What has been your greatest life achievement so far?Undoubtedly it has been creating a happy, tight family unit with my wife Edna. Our best times are spent with the three children – Johan (7), Reuben (5) and Nicola (3) – swimming, cycling, playing cricket or travelling.

Q What do you want to accomplish in the future?I would like to make a difference in the world. Through hard work and the grace of God one achieves certain successes in life – but I think that a life worth living is one in which you can plough back and make a real difference in other people’s lives.

Q Keeping in mind the current strikes, unrest and social ills of our country, what message would you like to convey to potential investors?Sit tight, don’t make rash decisions and diversify. I believe in the future of South Africa and see it as a country with tremendous potential. Use times such as these and the weakness in asset prices as a buying opportunity.

When one thinks of Sanlam, the first thing that springs to mind is those two nurturing hands – imagery that forms part of the group’s iconic blue-and-white logo, which was first adopted in 1973. It symbolises protection, stability and powerful growth, all of which Sanlam aims to provide to its clients in these troubling times, and to continue to provide in the future.

Sanlam thinks ahead – and so does the CEO of its investments division. Johan van der Merwe is not only a forward thinker but also a dedicated father and husband, a sports fanatic and an all-round go-getter. We chat to the boy

from the bushveld about his family life, what it’s like to work for Sanlam and the things he would like to achieve in the future.


off the wall

A touch of TolkienDeep in the depths of Bloemfontein one will find a quaint abode fit for a hobbit or a human – the Hobbit Boutique Hotel, an ode to South Africa’s lost link with JRR TolkienBy Candace King

n a hole in the ground there lived a hobbit. Not a nasty, dirty, wet hole, filled with the ends of worms

and an oozy smell, nor yet a dry, bare, sandy hole with nothing in it to sit down on or to eat: it was a hobbit hole, and that means comfort.” This is one of the famous lines taken from iconic author JRR Tolkien’s classic 1937 novel The Hobbit – a fictional fantasy title about a pint-sized homely hobbit Bilbo Baggins who embarks on a journey to win a portion of a treasure guarded by the wicked dragon Smaug.

The critically acclaimed novel led to the even more critically acclaimed sequel, The Lord Of The Rings, which then spurred on the full-length feature films, the abundance of merchandise, the popularisation of the phrase “my precious”, a hoard of Elvish-speaking Tolkienites (fans of the works and fantasy world of JRR Tolkien), and the Hobbit Boutique Hotel – a charismatic tourism tribute to the great author and his spellbinding work.

Tucked away like a hidden hobbit hole, this four-star boutique hotel on President Steyn Avenue in the peaceful, leafy suburb of Westdene in Bloemfontein offers guests an unforgettable stay that’s infused with old-world charm, stylish elegance and a whole lot of

Middle-Earth soul. Owned by Jannie and Celeste van der Westhuizen, the Hobbit Boutique Hotel has won several awards, including the Best Guesthouse in SA (SA Tourism Board), Resort of the Year (AA Travel and SAA), as well as the Arch of Europe Award for excellence and quality.

So why the tribute to Tolkien, you ask? For those who are unaware, the English writer, poet, philologist,

and university professor is one of South Africa’s greatest exports. John Ronald Reuel Tolkien was born on 3 January 1892 in Bloemfontein. His father, Arthur Reuel Tolkien, was a bank manager who had been promoted to head the Bloemfontein office of the British bank. He later died of rheumatic fever in South Africa, while young Tolkien went to the UK at the age of three with his mother Mabel and younger brother Hilary Arthur Reuel for a family visit.

The house in which Tolkien was born was situated a few streets away from where the Hobbit Boutique Hotel stands today, but it had been damaged by a flood in the 1920s. Several remnants of the home, along with an iron memorial plaque engraved in both English and Afrikaans, are now part of the boutique hotel’s structure.

Whether you love the humble hobbit Frodo or prefer the ethereally charming elf Legolas, the Hobbit Boutique Hotel has just the room for you. Boasting nine luxury rooms and three executive suites, the hotel offers 12 professionally decorated bedrooms named after Lord Of The Rings characters.

Each of the rooms features several comprehensive services and amenities. These include goose-down duvets and percale linen, en-suite bathrooms, TV with satellite channels, coffee and tea stations, air conditioning, fully stocked minibars, safes, electric blankets, a chocolate turndown service, and sherry on arrival. The hotel also features quaint gardens and a swimming pool, a library, a dining room and bar, a 60-seater conference venue, a curio shop and several other services.

If wizards, hobbits and orcs are not your thing, the Hobbit Boutique Hotel is still a must-see as a

tribute and homage to one of the world’s greatest authors of all time – an author that South Africa’s heritage should take pride in.

Each room features comprehensive services and amenities, including goose-down duvets and percale linen, en-suite bathrooms, TV with satellite channels, coffee and tea stations, air conditioning, fully stocked minibars, safes, electric blankets, a chocolate turndown service, and sherry on arrival.

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