property developer may 2014

DeveloperPRO

PER

TYMay 2014

Mall of AfricaAtterbury’s retail roll-out: the sky’s the limit

Developing an oceanic fairy tale28

A work in progress

18

Cover_MAY_SUBBED.indd 1 2014/04/08 8:45 AM

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

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

CH

AR

LIE

BR

AVO

#31

5-14

Need more space?

Job 315-14 SA Prop Developer 297x210mm.indd 1 2014/04/03 10:02 AMUntitled-2 1 2014/04/08 8:27 AM

from the CEO1

At a recent SAPOA board meeting, the City of Johannesburg Integrated Development

Plan (IDP) 2014/2015 report was fleshed out, including the need for an appointed service provider. Having issued a tender in February 2014, SAPOA – on behalf of the Board – appointed developer consultant Andrew Barker.

The purpose of the report was to request the Board to approve the appointment of a service provider to ensure that all relevant information is provided to SAPOA members and that formal comments are submitted on behalf of SAPOA to the Johannesburg Metropolitan Municipality in respect of the 2014/2015 IDP.

The IDP is one of the key tools used by the South African government to tackle its new developmental role. Integrated development planning is a function of municipal management, and forms part of an integrated system of planning and service delivery.

The integrated development process is meant to arrive at decisions on key issues, such as municipal budgets, land management, promotion of local economic development, and institutional transformation in a consultative, systematic and strategic manner.

The aim was to appoint a service provider for the purpose of determining any actual or potential prejudice that any of the provisions, whether individually or collectively interpreted and implemented, can be prejudicial in respect of the city’s strategies and development priorities to the interests of property owners and developers within the commercial, retail and industrial property sectors.

Barker has been involved in business management and organisational development since 1985. As a certified value engineer, he has applied value-based methodology to guide and manage strategic development and processes of decision-making at corporate and organisational level.

This has involved a wide spectrum of management and employees to successfully address strategic, managerial and operational issues of a number of companies and organisations.

As a registered town planner since 1975, he has had exposure to urban planning and development, and has participated in many aspects of national, provincial and local urban planning development and strategies. He has a commendable reputation within the property industry and has made comments on behalf of our member companies, such as Iprop (Pty) Ltd.

SAPOA welcomes Barker and congratulates him on his new endeavour with the organisation. We are certain he will rise to the challenge and create a viable communication platform between SAPOA and the Johannesburg Metropolitan Municipality.

Neil Gopal, CEO

Barker on board SAPOA CEO Neil Gopal welcomes the appointment of Andrew Barker as the organisation’s representative

and mouthpiece to the Johannesburg Metropolitan Municipality in respect of the City of Johannesburg Integrated Development Plan 2014/2015

May 2014 l property developer

IDP objectivesl Restructuring within the city within integrated

development planning.l Providing for shared understanding of spatial

and development opportunities.l Providing for specific pro-poor strategies.l Providing for an overview of strategic planned public

and private investment.l Providing mechanisms to promote social equality through

participatory processes of democratisation, empowerment and social transformation.

l Providing for accessible instruments to address sustainability in its three facets: ecological, economic and social.

CEO Developer_MAY_SUBBED.indd 1 2014/04/09 9:10 AM

chairman’s message2

property developer l May 2014

Strength, stability and successDespite the positive symbolism of 2014 according to the Chinese zodiac (the Year of the Horse), our country is still plagued by harsh realities and misdemeanours

2014 has arrived, the Year of the Horse in the Chinese zodiac, which symbolises strength, stability, honesty, decisiveness and prosperity. The year also highlights 20 years of democracy in South Africa, as well as our country’s fourth democratic elections.

So much is happening, good and bad, but negativity prevails – the doom-and-gloom picture is still South Africa’s story, one that does not coincide with the prophecies of the Chinese zodiac.

In light of this, the power is in our hands to reverse this picture – but the government and business must work together, as the private sector is the engine of growth, and the government is the regulator and facilitator, encouraging entrepreneurship and innovation through investment in research, education and development.

We have instruments of domestic policy that were used to drive growth and development in the past, so it is necessary to re-examine and improve these policies in order to unlock South Africa’s economic potential. Our economy can grow at between five and six percent per year, and that growth can address our socioeconomic challenges.

At the same time, we need good leadership – both from government and business – to make bold decisions by spending public money on economic infrastructure if we want our economy to be stronger and better.

“We can learn great things from our mistakes, when we aren’t busy denying them”, to paraphrase a quote. The property development industry plays a significant and pivotal role, and contributes substantially to our national economy. But this industry faces many challenges at local government level and is often prevented from making further progress.

SAPOA’s National Property Developers Forum is not sitting on its laurels. Among other successful initiatives with a positive and proactive approach, SAPOA has implemented the Meet the Mayor programme, which aims to bridge the relationship and communication gap between local government and the private property sector through a series of exclusive, highly formal engagements.

Meetings have already taken place with the mayors of Cape Town, Johannesburg and Tshwane. The rationale behind this initiative is to establish honest, transparent and decisive relationships, and to collectively find effective and sustainable solutions to many of the known problems that stifle property development growth and economic growth. We are confident that the initiative will yield positive results.

This industry remains sincere in its endeavours, and continuously reaches out to lend a helping hand to local government – but most local authorities are conspicuous in their absence and, at times, simply do not play the game and do not provide necessary engineering infrastructure services – such as roads, water, power and sanitation – to promote residential, industrial and commercial development.

Instead, local authorities tend to exacerbate the problem. They are not employing experienced and skilled technical staff such as engineers, town planners and, most importantly, financial officers, which results in wasteful expenditure and not spending their budgets. Their budgets are not directed to maintaining existing and new infrastructure, which leads to unnecessary service-delivery protests.

Since 2009, the Municipal IQ review has mentioned that “shortage of technical skills, capacity constraints, poor recruitment practices, political interference, corruption, malfeasance, weak management and operating systems are all impediments to service delivery and create the space for corruption to thrive.”

The National Property Developers Forum has tried in the past (and will continue trying its best) to secure a meeting with the South African Local Government Association, an organisation that represents all the municipalities nationally, to address the numerous challenges immediately. The Forum will not give up the fight because the property development industry remains committed to creating a better life for all.

Sometimes, the only way over a mountain is through it.

SAPOA National Property Developers Forum chairman Lionel Kisten

“We can learn great

things from our mistakes,

when we aren’t busy

denying them”

Lionel's Message_MAY_SUBBED.indd 2 2014/04/07 3:01 PM

The Convention provides a comprehensive snapshot of expert opinions and research in terms of what to expect throughout the development and investment year ahead.

The two day event will deliver unrivalled opportunities to engage with industry leaders and political representatives, gain knowledge and inspiration, network and generate new business opportunities. These benefits are combined and delivered

in one of the most high quality, informative, entertaining and dynamic event!

Please join us at this premier event!

www.sapoaconvention.co.za

CAPE TOWN – ICC 10-12 June 2014

annual SaPOa internatiOnal COnventiOn and PrOPerty exhibitiOn

Untitled-2 1 2014/04/08 8:25 AM

THERE’S MONEY TO BE MADEIN COMMERCIAL PROPERTY…BUT ONLY IF YOU CAN GET FINANCE.

FEDGROUP GUARANTEES A DECISION IN PRINCIPLE WITHIN 48 HOURS ON

ALL PROPERTY FINANCE APPLICATIONS.

FedGroup is an authorised financial services provider. Terms and conditions apply.

Diversifying risk and extending cash flow are two of the benefits that lure South Africans to property as an asset class. And, while it makes good business sense to invest in commercial property or own the property from which you operate, many investors are deterred because of the struggle that they face in the finance application process. FedGroup Property Consultant, Slento Little discusses the issue of accessing finance and the alternative to approaching bank finance.

A scenario experienced by many investors, sees property finance applications being sent from one institution to the next, with little to no feedback. Despite promising to transform dreams into a reality, these lenders fail to deliver a timely commitment; with feedback often received a month after an application is submitted. By this time, investors have been forced to back out of the deal. According to Little, a significant amount of FedGroup’s property finance applicants share a similar sentiment – investing in property is attractive, but procuring finance through the banks is difficult, if not out of reach. The reality of the scenario; is that demand for finance exceeds supply. This is especially true with regards to commercial property, where high rentals have led to increased interest in the commercial property market. “This has resulted in a niche appetite for lending, where the ‘big deal’ from the well-known developer receives finance and the ‘smaller deal’, from the average investor does not”, says Little.

Fortunately, for the average investor looking to finance the ‘smaller deal’, there are alternative lenders. Although governed by strict regulation, these lenders are still in a position to tailor property finance to meet an investor’s individual need. They also boast various benefits that other lenders cannot compete with. At FedGroup, these benefits include direct access to decision makers and a decision in principle within 48 hours, says Little.

He goes on to explain, that while these benefits may not be a priority for the banks, they form a core focal point for FedGroup. “Direct access to decision makers ensures transparency. It enables investors to have direct involvement in both the application of their property finance and the duration of their payment plan. Having direct access to decision makers also speeds up the application process - a FedGroup property finance applicant is able to receive a timely commitment. The two day turnaround time (which is something the market does not compete with) ensures that investors are never in a position where they may lose a property deal due to finance application delays”.

Whether a development or purchase of an income-generating property for investment purposes, or the acquisition of business premises for your own occupation, property is a secure and well balanced investment. “Investors should not be deterred by the struggles of applying for finance. There are alternative lenders within the market and investors should take advantage of the benefits that they offer”, concludes Little.

For more information call Slento on 011 305 2321

The Alternative to Bank Finance

Slento Little FedGroup Property Consultant

contents6


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 Editor Candace King Copy editor Ania Rokita Production editor Dalene van Niekerk

Designer Dirk Knoesen Sales Riëtte Stevens Finance Susan du Toit Contributors Advocate Portia Matsane, Martin Ferguson, Eugenia Makgabo, Nicky Manson,

David A Steynberg Photographer 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]

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

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

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

DeveloperPRO

PER

TY

May 2014

Mall of AfricaAtterbury’s retail roll-out:the skys the limit

Developing an oceanic fairy tale28

A work in progress

18

Cover_MAY_SUBBED.indd 1 2014/04/07 2:52 PM

DeveloperPRO

PER

TY

8 News

12 Legal matters

16 Interview: Angie Motshekga

18 A work in progress

22 Constructing the Cape

26 Speaking SPLUMA

28 Developing an oceanic fairy tale

34 Cover story: Atterbury to open eight shopping centres in eight months

38 The evolution of Park Station

40 Last word: Brazil misses the goal

Cover development: Where the sky’s the limit, Property Developer talks to Atterbury about the next eight months, with its eight new malls in various states of development

Printed by

e: [email protected]

Contents Developer_MAY_SUBBED.indd 6 2014/04/09 9:12 AM

Metro

politanRe

public

/140

03/E

Firs

t Nat

iona

l Ban

k –

a di

visi

on o

f Fir

stRa

nd B

ank

Lim

ited

. An

Auth

oris

ed F

inan

cial

Ser

vice

s an

d Cr

edit

Prov

ider

(NCR

CP20

).

When growing your business,it helps to split the risk.ANB Investments have the exclusive rights for

the use of the ClemenGold trademark in

South Africa. ClemenGold is a soft citrus fruit

that has become immensely popular. To meet the

rising demand, ClemenGold decided to increase

their production by buying additional farmland.

This process can become very costly and loan

approval can take a number of weeks.

Fortunately, the management of ClemenGold

approached FNB. We understand the importance

of timing and that seasonal changes can have

serious effects on the agricultural sector. With this

in mind, FNB approved finance within days of the

request. With our keen interest in ClemenGold’s

niche product, we helped them lower their risk by

spreading their production across farms in different

production regions. 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 8912or email [email protected] for more information.Commercial Property Finance | Specialised Finance

Untitled-2 1 2014/04/08 8:07 AM

on record8


Developers target townshipsSouth Africa’s townships are increasingly being preferred over upper-income suburbs

for the development of convenience shopping centres. This comes as city suburbs

become saturated with shopping centres, while demand for such centres in townships is

increasing, according to developers.

According to Jordan Mann, director of national development group Nu-Hold, which

owns Krisp Properties and Nu-Way Housing, township shopping-centre development was

yielding positive results for the group. Krisp and its sister company Nu-Way is set to

break ground on a 5 000m² shopping centre in Cape Town’s Langa township later this

year, alongside the revamped Langa train station. The group has also received the go-

ahead from Johannesburg municipal authorities for the residential and retail development

on 12 hectares of land along the R55, in Olievenhoutbos.

The residential component of Olievenhoutbos, built by Nu-Way, would consist of

114 stands of about 200m² each, as well as space for an “institutional stand”, which

could consist of a church or a community centre, said Mann. Krisp Properties would

be responsible for the development of a 9 000m² “neighbourhood shopping centre”

called Olive Wood.

The group was among the first private developers in the country to invest in

convenient township shopping centres when it broke ground in Johannesburg’s Ebony

Park in the early 1990s on affordable and low-cost housing. “When we did that, we put

aside space for the retail development to create employment when the residential stands

were completed,” says Mann.

When Krisp Properties broke ground on Ebony Park Shopping Centre after completing

the residential development, work began on a 2 500m² Super Spar. The centre, through

demand from the community, has since been expanded by Krisp into a 4 600m²

development comprising a food anchor, clinic, pharmacy, banks and ATMs, a hardware

store, a community IT training centre, a post office and various other line shops, says

Mann. “The demand for such developments in the township continues to grow. Residents

want the same convenient shopping that is available in the suburbs,” he says.

“There were very few shops and they were very expensive for the community,” said

Mike Ioannou, managing director of principal contractor on Ebony Park, Aura Developers

Consortium, before the project broke ground. Residents had to travel long distances to

do their shopping, he said. “After the completion of the first phase of Spar, it became

obvious that the project was successful not only for the developers but also for the

tenants. Most important for the community was that they could do their shopping

conveniently – and jobs were created. There is definitely a great demand for township

shopping centres, which in turn add value to the community.”

Mann says he’s hoping to break ground on the Langa shopping centre by mid-year.

“We are addressing a major need for retail in the area. Retailers have been clamouring

for us to get this centre up and running,” he says.

+27 (0)11 789 3334, Nuway.co.za

Kindlewood Community Centre launched

Construction on the new community centre

at Kindlewood Estate, being developed by Tongaat Hulett immediately south of the Mount Edgecombe Country Club Estate in KwaZulu-Natal, will commence soon after being officially launched in March 2014. Residents who attended the sod-turning were enthusiastic about the facilities included in the design.

The new centre will provide exclusive leisure facilities for the 570 discerning families who will occupy Kindlewood when phase four of the 140-hectare estate is fully developed.

The large leisure facility will look out onto phase four of the development. A lap pool will lead off the centre building, with a fenced children’s play area and tennis court.

The design for the community centre was initiated via a competition, and was finalised by the residents’ committee. Residents have already suggested additions that will be considered in the future.

“It is in keeping with the estate’s modernised Natal verandah style of architecture, which embraces clear, linear and elegant elements,” says Mondli Msani, development manager at Tongaat Hulett Developments. “Large wrap-around verandahs are a feature of every home, encouraging outdoor living, and the earthy face-brick, green roofs and cream walls complement the natural landscape.”

The spacious, fully-equipped community centre opens onto

Growthpoint celebrates youth centre opening with local community

Growthpoint Properties proudly celebrated the opening of

a new youth centre in Marburg, Port Shepstone, KwaZulu-Natal, on 25 March.

As part of its social commitment, Growthpoint has invested R3,4- million in this project in partnership with Genesis Trust, a local non- profit organisation committed to addressing social challenges in the communities surrounding Port Shepstone in the Ugu District of KwaZulu-Natal. The Marburg Genesis Youth Centre was

officially opened after a construction project that began in 2009 benefited from the support of Growthpoint from 2012.

The event was attended by local dignitaries and members of the community, as well as representatives of Growthpoint and Genesis Trust. “Our efforts in this project are geared towards the enrichment of the lives of the youth and the local community,” says Growthpoint’s executive director Estienne de Klerk. “We are pleased to be involved in such

News Developer_SUBBED.indd 8 2014/04/07 3:02 PM

9

on record


a lush lawn where residents can relax next to the sparkling swimming pool or make their way down a gentle slope via a paved pathway to the tennis court on the level below. A gracious verandah offers fine views of the estate with its eco-corridors and picturesque wetland featuring extensive bird life.

“The community centre will be the heart of the Kindlewood Estate and a key element of the tranquil lifestyle it offers,” says Msani. “The serene ambience is enhanced by the peace of mind offered by electrified perimeter fencing, camera surveillance and 24/7 gate monitoring. The management committee believes the centre will further enhance the community lifestyle, which is growing from strength to strength at Kindlewood.” +27 (0)31 560 1900,

Thdev.co.za

a worthwhile project and look forward to seeing the centre and the community grow.”

The investment in this youth centre forms part of Growthpoint’s corporate social investment (CSI), which supports projects focused in four key areas: education, skills development, social infrastructure and staff engagement. All this furthers empowerment in needy communities.

The Marburg Genesis Youth Centre initiative forms part of Growthpoint’s R10- million investment towards bricks-and-mortar projects so far. Shawn Theunissen, head of

corporate social responsibility at Growthpoint, says that Growthpoint’s CSI development projects seek to help people

reach their full potential and become self-sustainable. “We believe in youth development and empowerment,” he says.

“The centre will help engage community youth in constructive experiences that will positively affect their lives.”

The centre is poised to have a powerful positive impact for this community. According to the Genesis Trust, about 44% of the population in the area is under the age of 20, placing huge pressure on resources. “I believe combining this building with the passion of Genesis staff and volunteers will make this youth centre a great tool for the upliftment of the community around us,”

says Trevor Downham, founding member of the Genesis Trust.

The Marburg Genesis Youth Centre offers affirmative, stimulating activities for the younger members of this community, from fitness facilities to music programmes, secondary-school maths tuition, post-matric life skills (including assistance in applying for tertiary education and employment), and assistance with tertiary studies to develop leadership potential, among others. +27 (0)11 944 6000,

Growthpoint.co.za

Demand continues to soar for Illovo office space

Illovo has earned the reputation

of being one of the most desirable

corporate addresses in Johannesburg,

and demand remains high as its limited

office space continues to be sought after

by blue chip tenants.

According to Ken Reynolds, regional

executive for Gauteng at Nedbank

Corporate Property Finance, P-grade

offices in Illovo are achieving net rentals

of up to R200/m² for smaller spaces. The

area has consistently maintained some

of the lowest office vacancies over the

past several years, with current figures

showing 0% vacancies for P-grade

space and only 2,7% for A-grade. Illovo

is ideally situated between Rosebank

and Sandton, with both of these areas

continuing to experience strong demand

for office space despite trends indicating

that growth is slowing in this sector

across South Africa.

Rosebank and Sandton are both

serviced by the Gautrain, which has

hugely increased their popularity, and

Illovo can be easily accessed through

the convenient Rea Vaya Bus Rapid

Transit route and the Corlett Drive

off-ramp from the M1 highway.

The exclusive residential nodes

of Hyde Park, Dunkeld and Melrose

are within close proximity. Regiments

Capital’s new head office is situated

on the corner of Melville and Ferguson

Roads, and will form part of the

extended Illovo Boulevard node.

The growth of the Boulevard is the

result of a successful joint public/private

sector initiative. The prestigious mixed-

use development houses many quality

corporate businesses, including Mettle,

IQ Health, JP Morgan, Brait and the

Gordon Institute for Business Science.

New developments have to conform

to relatively strict conditions and green

design elements are essential. These

factors, as well as its strategic location,

excellent telecommunications, controlled

urban design, good accessibility and

strong public space management

ensure the sustainability of long-

term value of the area.

“Regiments Capital has recently

expanded into the area of property

development and, in addition to our

Illovo head office, we’ve also acquired

the rights to the bulk above and around

the Sandton Gautrain station, which

we recently secured from the City

of Johannesburg,” says Regiments

spokesperson Umeiya Majam.

“Regarding our Illovo head office,

our firm intends to occupy half of

the 7 360m² building and will let

or sell off the balance of the space.

We are already in discussion with

interested parties.” Illovo has a total

office GLA of approximately 200 000m²,

where Sandton, for example, offers

approximately 1 400 000m², thus

making Illovo rather exclusive for

top corporate clients.

Some of the bigger tenants in

Illovo, such as Santam and Cell C,

are expected to vacate this year but

it is expected that these buildings will

not experience long vacancy periods.

“Regiments Capital is an existing

Nedbank client, with whom we’ve

had the pleasure of doing business

for the past decade,” says Reynolds.

“We have now provided finance of close

to R150-million for the development that

will take place over the next 18 months.

Illovo is an exceptional node that

continues to soar and draw prestigious

tenants attracted to a beautiful, secure

and well-managed area – just like

the trendy Melrose Arch Precinct

in Johannesburg and Wembley

Square Precinct in Cape Town.”

+27 (0)11 294 4444, Nedbank.co.za


on record10


Developed by Atterbury, The Club Shopping

Centre officially opened its doors in April.

Atterbury’s full redevelopment of the stylish The

Club began in January 2013 – an ambitious project

designed to create a contemporary, upscale 8 400m²

retail and leisure destination.

The Club Shopping Centre is part of the mixed-

use node, The Club, situated in Hazelwood, Pretoria

– a stone’s throw away from the prestigious Pretoria

Country Club, from which it draws its name. It

introduces an exciting variety of up-market retail

and restaurant options, all in close proximity to

the exclusive Waterkloof and Brooklyn suburbs.

Adding to the attraction of this quality development

is The Club’s convenient access from the new

Garsfontein off-ramp on the N1 highway.

“The Club is expected to become one of Pretoria’s

most well-known and desirable landmarks through its

sophisticated modern design that also incorporates

elements of Pretoria’s rich architectural history,”

says Gerrit van den Berg of Atterbury. ”Woolworths

is the anchor tenant, while other exciting restaurants

and retailers include the likes of Beluga, Harissa, Life

Grand Café, Knead Bakery, Paul Mitchell The Salon,

Essential Life, Divine Diva and Sorbet. Designed

for the future with timeless elegance created

through a thoughtful design, The Club promises

to be a much-used and loved public building

in the fabric of the city, and a quality property

asset for Atterbury.”

The Club Shopping Centre joins Club One, the

A-grade offices recently developed by Atterbury at

The Club. Club One features 4 500m² of inspirational

work space as well as a ground-floor retail, including

the popular Café 41.

Atterbury has further office developments

planned for The Club. This will extend its mixed-

use attractions in response to market demand,

and will include the development of more

A-grade office space, a gym and up-market

residential apartments.

+27 (0)10 596 9800, Atterbury.co.za

Welcome to The Club

CMA to stage precast concrete road seminar at Totally Concrete Expo

The Concrete Manufacturers Association (CMA) will be staging a seminar on precast concrete road construction, Totally Concrete

Roads, at this year’s Totally Concrete Expo, which is taking place from 26 to 28 May in Johannesburg. In addition, the association is sponsoring a panel of experts, who will be available to answer any questions that visitors to Totally Concrete Expo might have on any precast concrete-related aspect.

The Totally Concrete Roads seminar is being presented by independent paving consultant and former CMA director John Cairns, who will discuss construction methodologies of precast concrete roads and the products used to build them. These include concrete block pavers, kerbing, retaining wall blocks, culverts and storm- water pipes, beams and panels for road and foot bridges, street lighting poles and masts, and any other precast concrete product

used in the building of roads and road infrastructure.According to CMA executive director Wally Armstrong, the panel

of experts will consist of leading experts in the field of precast concrete, and that their prime purpose is to stimulate and promote the increased use of precast concrete in southern Africa.

“Unlike Eurasian and North American countries, where precast concrete is the default building system in most applications, precast concrete is still under-utilised in South Africa, not to mention on the rest of the continent,” says Armstrong. “Precast concrete offers substantial advantages in terms of time and cost savings, as well as providing products of consistently high quality and durability. This means it is well positioned to play a growing and significant role in meeting this and other African countries’ infrastructural, housing and structural requirements.” +27 (0)11 805 6742, Cma.org.za

The new KG Mall, which has just

been completed in Kwa Guqa, west

of eMalahleni (Witbank), is now open. The

19 500m² centre has been developed by

the Moolman Group, Shoprite Checkers and

Falcon, and was fully let prior to opening. The

centre is anchored by a Shoprite supermarket

and features a well-balanced combination

of national and local retailers. Fashion stores

include Ackermans, Exact, Truworths, Identity,

Edgars Active, Fashion World, Jet, Legit, Mr

Price, Markham, Totalsports, Rand Outfitters,

Pep, Studio 88, John Craig and Skipper Bar.

SAPOA and SACN partner for shared goals in urban development

SAPOA and the South African Cities Network (SACN) have signed a ground-breaking

memorandum of understanding to collaborate on issues of urban development, and

the promotion of good governance and city management.

SACN is a knowledge-generation and -dissemination, member-based organisation

consisting of nine of South Africa’s largest and most urbanised municipalities, and the

South African Local Government Association. In addition, the following national government

departments that are primarily responsible for, and impact directly on, the built-environment

function are key strategic partners and members of the governing board of SACN; these

are the Departments of Co-operative Governance, Human Settlements, Transport and

Environmental Affairs.

“The two organisations have outlined several areas of collaboration: sharing expertise

and capacity, sharing in-kind and financial resources, leveraging contacts and networks,

and partnering in other arenas of interaction,” says SAPOA CEO Neil Gopal. And the CEO of

SACN Sithole Mbanga says the aim of the agreement is to develop a common programme

of action to transform South African cities, towns and villages into socially inclusive,

economically productive and environmentally sustainable spaces. “In so doing, we intend

to establish forums in which the private and public sector can build consensus on areas

of public transport, land use, human settlements and climate change,” says Mbanga.

“SAPOA and SACN both recognise the need for a common vision between the private

and public sectors when it comes to issues of urban development and city management,”

says Gopal. The memorandum of understanding will remain in effect until 2016.

+27 (0)11 883 0679, Sapoa.org.za

Capitec, Nedbank and Standard Bank

all have banking facilities in the centre.

National retailers offering everything

from furniture to home goodies include

Cashbuild, OK Furniture, Autozone, Beares,

Ellerines, Lewis and Fair Price. Adding

to the services available for shoppers

are a Vodacom store, a doctor, a dentist

and an optometrist. The Shoprite also

features a Shoprite Liquor outlet.

Eateries include Galito’s, Debonairs,

Fishaways, Steers, Pie City and a KFC

drive-through.

+27 (0)12 361 7970,

Moolmangroup.co.za

KG Mall now open


11

on record


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

Crystal Park, an affordable housing suburb under development in Johannesburg,

demonstrates the demand for sustainable, middle-income accommodation among

South Africans, with phase one completed in March 2014.

Situated in Benoni, Gauteng, the housing estate is a keynote development, providing

the sought-after residential area with a much-needed housing solution. It consists of a wide

range of sites, from 300m² to 714m².

It is also the inaugural project of Acutts Motlekar, a joint venture between the Acutts

Property Group and African investment holding company Motlekar Holdings, in conjunction

with construction company Group Five as the building contractor and development manager.

The innovative initiative aims to bring 18 000 housing units to the market each year,

conservatively translating into a R5-billion injection to the local economy, with spin-offs

and job creation expected in land surveying, architecture, building and construction,

material delivery and administration.

Currently the initiative has the capacity to deliver 100 houses a day, a mobilisation that

will also promote employment in the selling, mortgage origination and property transfer

value chain. The properties are geared to first-time buyers and middle-income earners,

typically households earning between R13 500 and R25 500 per month, to secure bonds

between R450 000 and R850 000. The new suburbs will correspond with the government’s

proposed economic zone requirements for newly-establishing commercial centres. Acutts

Chairman Pat Acutt says Crystal Park phase one includes 300 units. The entire development

will eventually house 4 200 homes.

“The first owners are upgrading their properties – landscaping their gardens, building

boundary walls, installing electronic gates and erecting carports or garages,” says Acutt.

“There is a sense of neighbourhood developing, with residents expressing bonds of

friendship with one another.”

+27 (0)31 764 7500, Acutts.co.za

Crystal Park sales escalateNew luxury retail space for Sandton City

Liberty Group and Pareto Limited

announced the commencement

of a development to reconfigure

space within Sandton City to create

an exclusive shopping experience.

The area, aptly named Diamond

Walk, will establish a sophisticated

thoroughfare between the mall and

the five-star Sandton Sun Hotel.

“This is a strategic investment

that will result in an unmatched

shopping experience and provide

further opportunity for positive

long-term investment returns

for investors in the Liberty Direct

Property Portfolio fund,” says

Amelia Beattie, chief investment

officer for STANLIB Direct Property

Investments (who act as asset

managers for Liberty Group’s 75%

ownership investment in the centre.

“Sandton City has a reputation

for being the fashion destination

in Africa,” says Maurice Mdlolo,

Liberty Properties managing director.

“This new space will create an

unrivalled location of opulent retail.”

Mdlolo confirms the current

retail space will be realigned to

ensure line of sight from the main

mall area and court. Sandton Sun

conference facilities will no longer

be located in this area; instead,

they will be incorporated into the

Sandton Convention Centre facilities.

“The diamond interior theme

is appropriate for what will be a

dazzling space where Africa meets

the best the globe has to offer,”

says Mdlolo. “The mall decor

and surrounding finishes will be

designed to reflect light so that

the area truly sparkles. Store fronts

will be increased in height, giving

the area a grand, spacious feel.”

Diamond Walk at Sandton City

is planned to open to the public

in mid-2015.

+27 (0)11 408 5111,

Libertyproperties.co.za


legal matters

12


Defining frontiers for the construction sector

By Eugenia Makgabo, admitted attorney of the High Court and legal officer at SAPOA

SAPOA takes a look at the case of the City of Johannesburg Metropolitan Municipality v the Chairman of the Valuation Appeal Board for the City of Johannesburg

A. Multi-use building: determination of applicable ratesThe appeal before the Supreme Court of Appeal was based solely upon an order by the South Gauteng High Court dismissing an application to review a decision taken by the Valuation Appeal Board, which was established under Section 56 of the Local Government: Municipal Property Rates Act 6 of 2004 (the “Act”).

The issue before the Supreme Court of Appeal was whether property owned by Connaught Properties (Pty) Ltd – a 10-storey building known as Park Mews, which is made up of shops on the ground floor, with the remaining nine floors consisting of residential apartments – should be apportioned with regards to its market value between the different categories, namely business and residential. The Park Mews stands were categorised as property for multiple purposes under the rates policy in the valuation roll that became effective on 1 July 2008. However Park Mews was valued at R3 379 000 for rates purposes without a distinction being made for the different categories of use of the business, that is, the fact that the building was being used for both business and residential purposes.

The City of Johannesburg was of the view that, in accordance with its rates policy, Connaught Properties (Pty) Ltd must pay rates by applying the higher business rate to the overall value of the property without allowance being given to the residential component of the building. It further submitted that the Valuation Appeal Board acted in error by suggesting that the valuation ought to reflect the values of the various categories of use and that the Act does not specifically direct the Municipal Valuer to mention any apportionment of value between the various categories of use.

Considerations ◆ In terms of Section 229 (1) of the

Constitution of the Republic of South Africa Act, 1996 (Act No. 108 of 1996) (the “Constitution”), read together with the provisions of Section 2 of the Act, the Municipality has the power to levy a rate on property in its area.

◆ “Rate” means a tax on property which is imposed by the Municipality, as envisaged in Section 229 (1) (a) of the Constitution.

◆ According to section 19 of the Act, a Municipality may not levy:i. A rate on non-residential properties

that exceeds a prescribed ratio to the rate on residential properties determined in terms of Section 11 (1)(a); and

ii. Rates which unreasonably discriminate between various categories of non-residential properties.

a. Section 9 of the Act further states that:i. A property used for multiple purposes

must, for rate purposes, be assigned to a category determined by the municipality for properties used for:1. A purpose corresponding with the

permitted use of the property;2. A purpose corresponding with a

dominant use of the property; and3. Multiple purposes in terms of Section

8(2)(r).

Judgment ◆ The judge held that where a property is being

used for multiple permitted purposes, it is necessary for the municipal valuer compiling the valuation roll to determine and record those uses and to apportion the market value of the property between them.

◆ It was further held that a municipality is bound to follow the prescripts of Section 9(2) in cases of multiple use, even where its rates policy is based on permitted use rather than actual use.

◆ Finally, once the Valuer has categorised the uses and apportioned value between them, it is then up to the municipality to apply tariffs for those categories to the apportioned values.

◆ The appeal was dismissed with costs.

B. Protection of Crucial Infrastructure Draft BillIn accordance with Rule 241(1) of the Rules of the National Assembly, the Protection of Crucial Infrastructure Draft Bill (hereinafter referred to as the “Bill”) will be introduced shortly.

Infrastructure in South Africa is pivotal both economically and for the heritage of the country. There is therefore a need to protect crucial infrastructure.

The purpose of the Bill is to:

Legal Developer_MAY_SUBBED.indd 12 2014/04/08 8:52 AM

legal matters

13


a. provide for the establishment, composition, functions and duties, meetings, financing and reporting of the Crucial Infrastructure Board;

b. provide for the suspension and removal of members of the board;

c. provide for the determination and declaration of crucial infrastructure;

d. ensure that security measures are implemented at crucial infrastructure;

e. provide for a register containing the areas declared as crucial infrastructure;

f. set out the rights and duties of owners of crucial infrastructure;

g. provide for the limitation of the liability of the state;

h. provide for parliamentary oversight of the Board;i. create offences and penalties;j. provide for transitional provision; andk. repeal the National Key Points Act 102 of

1980 and related legislation.

C. Construction Regulations, 2014The Minister of Labour has, under section 43 of the Occupational Health and Safety Act, 1993 (Act No. 85 of 1993), published the Construction Regulations 2014, hereinafter referred to as the “Regulations”.

The objective of the Regulations is to ensure that health and safety measures are implemented and adhered to from inception until finalisation of a construction project.

According to Section 3, such applications will therefore be necessary in order for the Department of Labour to grant permission for the project to begin.

“A client who intends to have construction work carried out

must, at least 30 days before that work is to be carried out, apply to the provincial director in writing for a construction work permit”

A client is defined as “any person for whom construction

work is being performed”. This encompasses all property developers, landlords, property owners, property

managers, surveyors, architects and, essentially, any role players

in the built environment

A client is defined as “any person for whom construction work is being performed” (our own emphasis). This encompasses all property developers, landlords, property owners, property managers, surveyors, architects and, essentially, any role players in the built environment.

The application will also have to be accompanied by the registration of construction professionals in three categories, namely:

◆ construction health and safety manager, ◆ construction health and safety agent, and ◆ construction health and safety officer.

Such registration would have to be done through the South African Council for the Project and Construction Management Professions, and professionals would be subject to a stringent process, which includes an interview or exam to test their competence.

According to Section 33 of the Regulations, any person who contravenes or fails to comply with any provision of the Regulations will be guilty of an offence and liable upon conviction to a fine or to imprisonment for a maximum of 12 months.

Legal Developer_MAY_SUBBED.indd 13 2014/04/08 8:53 AM

Housing is a major issue facing South Africans today. For most people, a home is the single largest purchase

they will ever make. In the past, before regulation of the home building industry, consumers could find themselves unprotected against unscrupulous builders cashing in on the need for housing and constructing defective houses. Consumers had no recourse for their grievances. This led to customer dissatisfaction and rent boycotts, which in turn discouraged banks from funding low-cost housing. There was a clear and urgent need for a central authority to oversee standards in the home building industry.

The National Home Builders Registration Council (NHBRC) was established in terms of the Housing Consumers Protection Measures Act (Act no. 95 of 1998) to protect the interests of housing consumers and to regulate the home building industry. Home Builders are required by law to register with the NHBRC and to comply with the NHBRC Technical Requirements and provisions stipulated in the Home Building Manual.

The Act further requires the NHBRC to establish a Warranty Fund for the purpose of providing assistance to consumers where a home builder fails to rectify a major structural defect or roof leak attributable to poor workmanship, design or materials, within a period of 5 years or 12 months from the date of occupation, respectively.

The NHBRC is currently embarking on a process to review its Technical Requirements and Home Building Manual to ensure alignment to current legislation and industry needs.

The updating of NHBRC building standards documents provide an opportunity to tackle areas which have in recent years been identified as a significant risk to the NHBRC Warranty Scheme.

WHeRe We STANd NoWThe current NHBRC Technical Requirements and Home Building Manual provide rules to enable valid defects to be interpreted on a noncompliance basis and provide a framework for the NHBRC warranty cover. They frame performance-orientated design and construction requirements on the assumption that defects in housing can be minimised, if not eliminated.

To minimise or altogether eliminate defects, those responsible for the design and construction of dwelling units

The NHBRC reviews its Technical Requirements and Home Building Manual

are required to adopt design practices and specifications that provide satisfactory performance; use materials, products and building systems that are suited for their intended purpose; and to ensure that all work is carried out in a proper, neat and workmanlike manner.

Although the main focus of the Technical Requirements and Home Building Manual are on structural strength, stability as well as weather tightness, they also deal with protection against harmful substances and behaviour in fire, insofar as they relate to the structural stability of the housing unit.

The NHBRC design requirements can be met by: • adoptingcertainprescribedrulesor• preparingarationaldesignbasedonengineering

principles or • obtainingAgrémentcertificationfromAgrémentSouth

Africa

Similarly, the NHBRC construction requirements can be met by complying with: • constructionofelementsusingthe‘design byrule’

approach or • thestandardsandspecificationsreferredtointherational

design or • therelevantrequirementssetoutintheAgrément

certification documentation

Competent persons (a person registered in terms of either the engineering Professions of South Africa Act or in terms of section 11 of the Natural Scientific Professions Act) are required in terms of the NHBRC Warranty Scheme to:

• classifyindividualsitesinaccordancewiththeNHBRCsite class designations

• assessrisksassociatedwithareasunderlainbydolomitesand limestones and to designate areas in accordance withtheNHBRC’sdolomiticdesignations

• monitorthatthemandatoryprecautionsonsitesunderlainby dolomites / limestones are correctly implemented

• specifyprecautionarymeasurestobetakenwhentreesare to be removed

• adviseonsubsurfacedrainage,and• specifymaterialsandconstructionmethodswherethe

construction rules are not utilised

The enrolment of homes in the NHBRC Warranty Scheme is subject to home builders submitting a site soil classification, duly certified by a competent person. It is permissible

Home Building Manualare required to adopt design practices and specifications are required to adopt design practices and specifications are required to adopt design practices and specifications are required to adopt design practices and specifications that provide satisfactory performance; use materials, products and building systems that are suited for their intended purpose; and to ensure that all work is carried out in a proper, neat and workmanlike manner.

are required to adopt design practices and specifications are required to adopt design practices and specifications are required to adopt design practices and specifications that provide satisfactory performance; use materials, are required to adopt design practices and specifications that provide satisfactory performance; use materials, that provide satisfactory performance; use materials, that provide satisfactory performance; use materials,

intended purpose; and to ensure that all work is carried out

that provide satisfactory performance; use materials, that provide satisfactory performance; use materials, products and building systems that are suited for their products and building systems that are suited for their intended purpose; and to ensure that all work is carried out products and building systems that are suited for their products and building systems that are suited for their products and building systems that are suited for their products and building systems that are suited for their intended purpose; and to ensure that all work is carried out products and building systems that are suited for their products and building systems that are suited for their products and building systems that are suited for their products and building systems that are suited for their intended purpose; and to ensure that all work is carried out in a proper, neat and workmanlike manner.

Although the main focus of the Technical Requirements and

intended purpose; and to ensure that all work is carried out intended purpose; and to ensure that all work is carried out in a proper, neat and workmanlike manner.

Although the main focus of the Technical Requirements and Home Building Manual are on structural strength, stability

intended purpose; and to ensure that all work is carried out intended purpose; and to ensure that all work is carried out intended purpose; and to ensure that all work is carried out intended purpose; and to ensure that all work is carried out intended purpose; and to ensure that all work is carried out in a proper, neat and workmanlike manner.

Although the main focus of the Technical Requirements and Although the main focus of the Technical Requirements and Home Building Manual are on structural strength, stability as well as weather tightness, they also deal with protection against harmful substances and behaviour in fire, insofar as they relate to the structural stability of the housing unit.

engineering


The NHBRC design requirements can be met by:

engineering

Similarly, the NHBRC construction requirements can be met

rule’

Although the main focus of the Technical Requirements and Home Building Manual are on structural strength, stability Although the main focus of the Technical Requirements and Although the main focus of the Technical Requirements and Although the main focus of the Technical Requirements and Although the main focus of the Technical Requirements and Although the main focus of the Technical Requirements and Home Building Manual are on structural strength, stability Although the main focus of the Technical Requirements and Home Building Manual are on structural strength, stability Home Building Manual are on structural strength, stability Home Building Manual are on structural strength, stability as well as weather tightness, they also deal with protection Home Building Manual are on structural strength, stability as well as weather tightness, they also deal with protection against harmful substances and behaviour in fire, insofar as as well as weather tightness, they also deal with protection as well as weather tightness, they also deal with protection as well as weather tightness, they also deal with protection against harmful substances and behaviour in fire, insofar as as well as weather tightness, they also deal with protection as well as weather tightness, they also deal with protection against harmful substances and behaviour in fire, insofar as as well as weather tightness, they also deal with protection against harmful substances and behaviour in fire, insofar as against harmful substances and behaviour in fire, insofar as There was a clear and urgent need for a central authority to

oversee standards in the home building industry.

The National Home Builders Registration Council (NHBRC)

Protection Measures Act (Act no. 95 of 1998) to protect the

The NHBRC design requirements can be met by: • adopting• preparing a rational

certification


by

• the indesign or

relevant requirements Agrémentcertification documentation

Competent persons (a person registered in terms of either ngineering Professions of South Africa Act or in terms

of section 11 of the Natural Scientific Professions Act) are

There was a clear and urgent need for a central authority to against harmful substances and behaviour in fire, insofar as they relate to the structural stability of the housing unit. they relate to the structural stability of the housing unit. oversee standards in the home building industry.

The NHBRC design requirements can be met by: certain prescribed

rational

The NHBRC design requirements can be met by: The NHBRC design requirements can be met by: prescribed

designrulesrules

engineering

South

engineeringengineering

Agrément

Similarly, the NHBRC construction requirements can be met by complying with: • construction

approach or • the

Agrément SouthSouth


approach or


rule’

the rational

Agrément



The Act further requires the NHBRC to establish a Warranty

in

Agrément



where a home builder fails to rectify a major structural defect • thedesign or

relevant requirementscertification documentation


of section 11 of the Natural Scientific Professions Act) are required in terms of the NHBRC Warranty Scheme to:

where a home builder fails to rectify a major structural defect specifications

materials, within a period of 5 years or 12 months from the materials, within a period of 5 years or 12 months from the • the• the relevant• thematerials, within a period of 5 years or 12 months from the materials, within a period of 5 years or 12 months from the certification documentation certification documentation certification documentation certification documentation certification documentation certification documentation

Competent persons (a person registered in terms of either Competent persons (a person registered in terms of either Competent persons (a person registered in terms of either Competent persons (a person registered in terms of either Competent persons (a person registered in terms of either ngineering Professions of South Africa Act or in terms

Competent persons (a person registered in terms of either Competent persons (a person registered in terms of either Competent persons (a person registered in terms of either Competent persons (a person registered in terms of either Competent persons (a person registered in terms of either Competent persons (a person registered in terms of either Competent persons (a person registered in terms of either Competent persons (a person registered in terms of either Competent persons (a person registered in terms of either Competent persons (a person registered in terms of either Competent persons (a person registered in terms of either Competent persons (a person registered in terms of either Competent persons (a person registered in terms of either Competent persons (a person registered in terms of either The NHBRC is currently embarking on a process to review its Technical Requirements and Home Building Manual to its Technical Requirements and Home Building Manual to its Technical Requirements and Home Building Manual to ngineering Professions of South Africa Act or in terms ngineering Professions of South Africa Act or in terms ngineering Professions of South Africa Act or in terms ngineering Professions of South Africa Act or in terms its Technical Requirements and Home Building Manual to its Technical Requirements and Home Building Manual to its Technical Requirements and Home Building Manual to

of section 11 of the Natural Scientific Professions Act) are of section 11 of the Natural Scientific Professions Act) are of section 11 of the Natural Scientific Professions Act) are of section 11 of the Natural Scientific Professions Act) are of section 11 of the Natural Scientific Professions Act) are of section 11 of the Natural Scientific Professions Act) are of section 11 of the Natural Scientific Professions Act) are of section 11 of the Natural Scientific Professions Act) are of section 11 of the Natural Scientific Professions Act) are of section 11 of the Natural Scientific Professions Act) are of section 11 of the Natural Scientific Professions Act) are ensure alignment to current legislation and industry needs. of section 11 of the Natural Scientific Professions Act) are ensure alignment to current legislation and industry needs. of section 11 of the Natural Scientific Professions Act) are of section 11 of the Natural Scientific Professions Act) are of section 11 of the Natural Scientific Professions Act) are required in terms of the NHBRC Warranty Scheme to:

the NHBRC

dolomitesand limestones and to designate areas in accordance

of section 11 of the Natural Scientific Professions Act) are of section 11 of the Natural Scientific Professions Act) are of section 11 of the Natural Scientific Professions Act) are of section 11 of the Natural Scientific Professions Act) are of section 11 of the Natural Scientific Professions Act) are of section 11 of the Natural Scientific Professions Act) are required in terms of the NHBRC Warranty Scheme to:

with the

by dolomitesand limestones and to designate areas in accordance

required in terms of the NHBRC Warranty Scheme to: The updating of NHBRC building standards documents

and limestones and to designate areas in accordance and limestones and to designate areas in accordance and limestones and to designate areas in accordance

underlain

and limestones and to designate areas in accordance

underlain

turn discouraged banks from funding low-cost housing. There was a clear and urgent need for a central authority to oversee standards in the home building industry.

The National Home Builders Registration Council (NHBRC)

Protection Measures Act (Act no. 95 of 1998) to protect the

The Act further requires the NHBRC to establish a Warranty Fund for the purpose of providing assistance to consumers where a home builder fails to rectify a major structural defect or roof leak attributable to poor workmanship, design or materials, within a period of 5 years or 12 months from the


The updating of NHBRC building standards documents provide an opportunity to tackle areas which have in recent years been identified as a significant risk to the NHBRC

No

Home Building Manualare required to adopt design practices and specifications that provide satisfactory performance; use materials, products and building systems that are suited for their intended purpose; and to ensure that all work is carried out in a proper, neat and workmanlike manner.


The NHBRC design requirements can be met by: • adopting certain prescribed rules or• preparing a rational design based on engineering

principles or • obtaining certification from Agrément South

Africa

Similarly, the NHBRC construction requirements can be met by complying with: • construction elements using the ‘design by rule’

approach or • the standards specifications referred in the

design or • the relevant requirements set out in Agrément


Competent persons (a person registered in terms of either the ngineering Professions of South Africa Act or in terms of section 11 of the Natural Scientific Professions Act) are required in terms of the NHBRC Warranty Scheme to:

individual sites with the NHBRC

by dolomitesand limestones and to designate areas in accordance

• monitor that mandatory precautions on sites underlainby dolomites / limestones are correctly implemented

that provide satisfactory performance; use materials, products and building systems that are suited for their intended purpose; and to ensure that all work is carried out intended purpose; and to ensure that all work is carried out in a proper, neat and workmanlike manner.


approach or

Toll-free: 0800 200 824

Housing is a major issue facing South Africans today. For most people, a home is the single largest purchase

they will ever make. In the past, before regulation of the home building industry, consumers could find themselves unprotected against unscrupulous builders cashing in on the need for housing and constructing defective houses. Consumers had no recourse for their grievances. This led to customer dissatisfaction and rent boycotts, which in turn discouraged banks from funding low-cost housing. There was a clear and urgent need for a central authority to oversee standards in the home building industry.

The National Home Builders Registration Council (NHBRC) was established in terms of the Housing Consumers Protection Measures Act (Act no. 95 of 1998) to protect the interests of housing consumers and to regulate the home building industry. Home Builders are required by law to register with the NHBRC and to comply with the NHBRC Technical Requirements and provisions stipulated in the Home Building Manual.

The Act further requires the NHBRC to establish a Warranty Fund for the purpose of providing assistance to consumers where a home builder fails to rectify a major structural defect or roof leak attributable to poor workmanship, design or materials, within a period of 5 years or 12 months from the date of occupation, respectively.


The updating of NHBRC building standards documents provide an opportunity to tackle areas which have in recent years been identified as a significant risk to the NHBRC Warranty Scheme.

WHeRe We STANd NoWThe current NHBRC Technical Requirements and Home Building Manual provide rules to enable valid defects to be interpreted on a noncompliance basis and provide a framework for the NHBRC warranty cover. They frame performance-orientated design and construction requirements on the assumption that defects in housing can be minimised, if not eliminated.

To minimise or altogether eliminate defects, those responsible for the design and construction of dwelling units


are required to adopt design practices and specifications that provide satisfactory performance; use materials, products and building systems that are suited for their intended purpose; and to ensure that all work is carried out in a proper, neat and workmanlike manner.


The NHBRC design requirements can be met by: • adoptingcertainprescribedrulesor• preparingarationaldesignbasedonengineering

principles or • obtainingAgrémentcertificationfromAgrémentSouth

Africa

Similarly, the NHBRC construction requirements can be met by complying with: • constructionofelementsusingthe‘designbyrule’

approach or • thestandardsandspecificationsreferredtointherational

design or • therelevantrequirementssetoutintheAgrément


Competent persons (a person registered in terms of either the engineering Professions of South Africa Act or in terms of section 11 of the Natural Scientific Professions Act) are required in terms of the NHBRC Warranty Scheme to:

• classifyindividualsitesinaccordancewiththeNHBRCsite class designations

• assessrisksassociatedwithareasunderlainbydolomitesand limestones and to designate areas in accordance withtheNHBRC’sdolomiticdesignations

• monitorthatthemandatoryprecautionsonsitesunderlainby dolomites / limestones are correctly implemented

• specifyprecautionarymeasurestobetakenwhentreesare to be removed

• adviseonsubsurfacedrainage,and• specifymaterialsandconstructionmethodswherethe

construction rules are not utilised

The enrolment of homes in the NHBRC Warranty Scheme is subject to home builders submitting a site soil classification, duly certified by a competent person. It is permissible

Toll-free: 0800 200 824

Untitled-2 2 2014/04/08 8:13 AM

The NHBRC reviews its Technical Requirements and

to appoint more than one competent person to assume responsibility for various aspects of a single home.

RevIeW oF THe WARRANTy SCHeMeThe NHBRC recently embarked upon a review process of the Warranty Scheme which will result in three new documents being published, namely a set of Technical Requirements for issue as regulations by the Minister in terms of the Act; a Home Building Manual containing the technical requirements prescribed by the Minister and the means by which home builders must comply with the technical requirements; as well as a guide to the Home Building Manual which explains the content of the Home Building Manual and locates the manual in the broader context of sustainable human settlements.

A major revision of the Technical Requirements and Home Building Manual may affect the rights of housing consumers and those engaged in the housing supply chain. Housing consumers and key players in the housing industry will be afforded the opportunity to have their say.

PRoPoSed APPRoACH The Technical Requirements and the Home Building Manual will be drafted in plain language and in such a manner that they can be readily amended from time to time. The revised Technical Regulations will include:

• definitionsofthecategoriesofdwellingunitsthatareincluded in the definition of a home and any structure which is included in the definition of a home

• performancedescriptionsandperformanceparametersfor structural strength and stability, serviceability, materials, behaviour in fire, drainage and storm water management and water installations in relation to the warranty scheme, taking into account overlaps in requirements with the functional regulations contained in the National Building Regulations

• requirementsforsatisfyingrequirementsforperformancebased methods

• requirementsforthevarioustypesofgeotechnicalinvestigations dealing with individual stands and townships development, taking into account the provisions and needs of the housing subsidy schemes after consultation with the Council for Geoscience, and

• requirementsformanaginggeotechnicalrisksduringconstruction

In addition, consideration will be given to making provision for a certification scheme for sites, designs and installations.

The revised Home Building Manual will also set out compliance methods and procedures for home builders to satisfy performance-based methods, including the following points:

• notreplicatingthecontentofSouthAfricanNationalStandards

• makingreferencetoSouthAfricanNationalStandardswherever appropriate e.g. SANS 10400, SANS 2001, SANS 1936 and SANS 634

• addressinggapsinthecurrentSouthAfricanNationalStandards

• establishingrequirementsforthetestingofmaterialsandcomponents

The Technical Requirements and the Home Building Manual will not contain any forms that need to be lodged to demonstrate compliance or procedures relating to the administration of the scheme. These will be issued separately by the NHBRC in terms of the Housing Consumer Protection Measures Act.

The guide to the Home Building Manual will further explain the philosophy behind the manual and the content of the manual; it will locate the Home Building Manual in the broader context of Sustainable Human Settlements and provide design and construction rules derived from the home building manual for typical subsidy homes.

The revision of the NHBRC Technical Requirements and Home Building Manual is in progress and should be completed by June of 2014. Housing consumers and individuals involved in the housing supply chain are invited to provide comment on the draft Technical Requirements and Home Building Manual. The draft Technical Requirements and Home Building Manual are available in print format in provincial NHBRC Customer Service Centres and electronically on the NHBRC website on www.nhbrc.org.za

enquiries can be forwarded to:

Dr Jeffrey Mahachi, Pr. EngNHBRC Special Technical AdvisorT: 011 317 0075E: [email protected]


W oThe NHBRC recently embarked upon a review process


W oThe NHBRC recently embarked upon a review process

responsibility for various aspects of a single home.

RevIThe NHBRC recently embarked upon a review process


RevIeW

responsibility for various aspects of a single home.

RevThe NHBRC recently embarked upon a review process

RevThe NHBRC recently embarked upon a review process of the Warranty Scheme which will result in three new documents being published, namely a set of Technical documents being published, namely a set of Technical Requirements for issue as regulations by the Minister in

WThe NHBRC recently embarked upon a review process The NHBRC recently embarked upon a review process of the Warranty Scheme which will result in three new of the Warranty Scheme which will result in three new documents being published, namely a set of Technical Requirements for issue as regulations by the Minister in terms of the Act; a Home Building Manual containing the technical requirements prescribed by the Minister and the means by which home builders must comply with the

of the Warranty Scheme which will result in three new of the Warranty Scheme which will result in three new of the Warranty Scheme which will result in three new

terms of the Act; a Home Building Manual containing the technical requirements prescribed by the Minister and terms of the Act; a Home Building Manual containing the terms of the Act; a Home Building Manual containing the

the means by which home builders must comply with the technical requirements; as well as a guide to the Home technical requirements; as well as a guide to the Home Building Manual which explains the content of the Home Building Manual and locates the manual in the broader context of sustainable human settlements.

technical requirements; as well as a guide to the Home technical requirements; as well as a guide to the Home Building Manual which explains the content of the Home Building Manual and locates the manual in the broader

A major revision of the Technical Requirements and Home Building Manual may affect the rights of housing consumers

consumers and key players in the housing industry will be afforded the opportunity to have their say.

to demonstrate compliance or procedures relating to the administration of the scheme. These will be issued

Building Manual which explains the content of the Home Building Manual and locates the manual in the broader Building Manual and locates the manual in the broader context of sustainable human settlements.

A major revision of the Technical Requirements and Home Building Manual may affect the rights of housing consumers

Building Manual and locates the manual in the broader Building Manual and locates the manual in the broader context of sustainable human settlements.context of sustainable human settlements.context of sustainable human settlements.

A major revision of the Technical Requirements and Home

context of sustainable human settlements.context of sustainable human settlements.

A major revision of the Technical Requirements and Home A major revision of the Technical Requirements and Home Building Manual may affect the rights of housing consumers and those engaged in the housing supply chain. Housing consumers and key players in the housing industry will be afforded the opportunity to have their say.

PRoThe Technical Requirements and the Home Building Manual

Building Manual may affect the rights of housing consumers Building Manual may affect the rights of housing consumers Building Manual may affect the rights of housing consumers Building Manual may affect the rights of housing consumers Building Manual may affect the rights of housing consumers Building Manual may affect the rights of housing consumers and those engaged in the housing supply chain. Housing and those engaged in the housing supply chain. Housing and those engaged in the housing supply chain. Housing and those engaged in the housing supply chain. Housing and those engaged in the housing supply chain. Housing and those engaged in the housing supply chain. Housing consumers and key players in the housing industry will be afforded the opportunity to have their say.

and those engaged in the housing supply chain. Housing and those engaged in the housing supply chain. Housing and those engaged in the housing supply chain. Housing and those engaged in the housing supply chain. Housing consumers and key players in the housing industry will be afforded the opportunity to have their say. consumers and key players in the housing industry will be consumers and key players in the housing industry will be consumers and key players in the housing industry will be consumers and key players in the housing industry will be consumers and key players in the housing industry will be afforded the opportunity to have their say. afforded the opportunity to have their say. afforded the opportunity to have their say.

APPR

afforded the opportunity to have their say. afforded the opportunity to have their say.

APPR

afforded the opportunity to have their say.

P ACHThe Technical Requirements and the Home Building Manual The Technical Requirements and the Home Building Manual The Technical Requirements and the Home Building Manual The Technical Requirements and the Home Building Manual will be drafted in plain language and in such a manner that they can be readily amended from time to time. The revised

The Technical Requirements and the Home Building Manual The Technical Requirements and the Home Building Manual The Technical Requirements and the Home Building Manual The Technical Requirements and the Home Building Manual will be drafted in plain language and in such a manner that they can be readily amended from time to time. The revised

The Technical Requirements and the Home Building Manual The Technical Requirements and the Home Building Manual The Technical Requirements and the Home Building Manual The Technical Requirements and the Home Building Manual will be drafted in plain language and in such a manner that will be drafted in plain language and in such a manner that will be drafted in plain language and in such a manner that will be drafted in plain language and in such a manner that will be drafted in plain language and in such a manner that will be drafted in plain language and in such a manner that will be drafted in plain language and in such a manner that will be drafted in plain language and in such a manner that will be drafted in plain language and in such a manner that will be drafted in plain language and in such a manner that will be drafted in plain language and in such a manner that will be drafted in plain language and in such a manner that will be drafted in plain language and in such a manner that will be drafted in plain language and in such a manner that will be drafted in plain language and in such a manner that will be drafted in plain language and in such a manner that will be drafted in plain language and in such a manner that they can be readily amended from time to time. The revised Technical Regulations will include:they can be readily amended from time to time. The revised they can be readily amended from time to time. The revised they can be readily amended from time to time. The revised Technical Regulations will include:they can be readily amended from time to time. The revised they can be readily amended from time to time. The revised they can be readily amended from time to time. The revised Technical Regulations will include:they can be readily amended from time to time. The revised they can be readily amended from time to time. The revised they can be readily amended from time to time. The revised they can be readily amended from time to time. The revised Technical Regulations will include:they can be readily amended from time to time. The revised Technical Regulations will include:they can be readily amended from time to time. The revised they can be readily amended from time to time. The revised they can be readily amended from time to time. The revised Technical Regulations will include:they can be readily amended from time to time. The revised they can be readily amended from time to time. The revised Technical Regulations will include:they can be readily amended from time to time. The revised they can be readily amended from time to time. The revised Technical Regulations will include:Technical Regulations will include:Technical Regulations will include:Technical Regulations will include:Technical Regulations will include:

• definitions

Technical Regulations will include:Technical Regulations will include:Technical Regulations will include:Technical Regulations will include:Technical Regulations will include:Technical Regulations will include:Technical Regulations will include:Technical Regulations will include:Technical Regulations will include:Technical Regulations will include:Technical Regulations will include:

• definitions

Technical Regulations will include:Technical Regulations will include:

of the dwellingcategoriesof categoriesthethe• definitions• definitions• definitions dwelling• definitions categories dwelling• definitions• definitions dwellingincluded in the definition of a home and any structure

• definitions• definitions• definitions• definitionsincluded in the definition of a home and any structure

• definitions• definitions categoriesof dwellingincluded in the definition of a home and any structure

categories of thatcategoriesincluded in the definition of a home and any structure

dwellingincluded in the definition of a home and any structure included in the definition of a home and any structure included in the definition of a home and any structure which is included in the definition of a homeincluded in the definition of a home and any structure included in the definition of a home and any structure included in the definition of a home and any structure included in the definition of a home and any structure included in the definition of a home and any structure included in the definition of a home and any structure included in the definition of a home and any structure included in the definition of a home and any structure which is included in the definition of a homeincluded in the definition of a home and any structure home building manual for typical subsidy homes. included in the definition of a home and any structure included in the definition of a home and any structure included in the definition of a home and any structure which is included in the definition of a home

performance

included in the definition of a home and any structure included in the definition of a home and any structure included in the definition of a home and any structure included in the definition of a home and any structure which is included in the definition of a homeincluded in the definition of a home and any structure included in the definition of a home and any structure which is included in the definition of a homewhich is included in the definition of a home

descriptions and performancefor structural strength and stability, serviceability, materials, behaviour in fire, drainage and storm water

which is included in the definition of a homewhich is included in the definition of a homewhich is included in the definition of a homewhich is included in the definition of a homewhich is included in the definition of a homewhich is included in the definition of a homewhich is included in the definition of a homewhich is included in the definition of a homewhich is included in the definition of a homewhich is included in the definition of a homewhich is included in the definition of a homewhich is included in the definition of a homewhich is included in the definition of a homewhich is included in the definition of a homewhich is included in the definition of a homewhich is included in the definition of a homewhich is included in the definition of a homewhich is included in the definition of a home• performance

for structural strength and stability, serviceability, materials, behaviour in fire, drainage and storm water management and water installations in relation to the warranty scheme, taking into account overlaps in

• performance descriptionsfor structural strength and stability, serviceability,

• performancefor structural strength and stability, serviceability, materials, behaviour in fire, drainage and storm water

• performance descriptions performancedescriptions performanceperformanceperformance• performance performanceperformancefor structural strength and stability, serviceability, for structural strength and stability, serviceability, materials, behaviour in fire, drainage and storm water for structural strength and stability, serviceability, for structural strength and stability, serviceability, materials, behaviour in fire, drainage and storm water for structural strength and stability, serviceability, materials, behaviour in fire, drainage and storm water management and water installations in relation to the

for structural strength and stability, serviceability, materials, behaviour in fire, drainage and storm water management and water installations in relation to the warranty scheme, taking into account overlaps in

for structural strength and stability, serviceability, for structural strength and stability, serviceability, materials, behaviour in fire, drainage and storm water materials, behaviour in fire, drainage and storm water materials, behaviour in fire, drainage and storm water materials, behaviour in fire, drainage and storm water materials, behaviour in fire, drainage and storm water materials, behaviour in fire, drainage and storm water materials, behaviour in fire, drainage and storm water materials, behaviour in fire, drainage and storm water management and water installations in relation to the management and water installations in relation to the management and water installations in relation to the warranty scheme, taking into account overlaps in management and water installations in relation to the management and water installations in relation to the management and water installations in relation to the warranty scheme, taking into account overlaps in management and water installations in relation to the management and water installations in relation to the warranty scheme, taking into account overlaps in warranty scheme, taking into account overlaps in warranty scheme, taking into account overlaps in warranty scheme, taking into account overlaps in warranty scheme, taking into account overlaps in

the National Building Regulations

warranty scheme, taking into account overlaps in warranty scheme, taking into account overlaps in requirements with the functional regulations contained in warranty scheme, taking into account overlaps in warranty scheme, taking into account overlaps in warranty scheme, taking into account overlaps in requirements with the functional regulations contained in the National Building Regulations

• requirements for satisfying

requirements with the functional regulations contained in the National Building Regulationsrequirements with the functional regulations contained in requirements with the functional regulations contained in the National Building Regulations

satisfying

requirements with the functional regulations contained in requirements with the functional regulations contained in requirements with the functional regulations contained in requirements with the functional regulations contained in requirements with the functional regulations contained in the National Building Regulationsthe National Building Regulationsthe National Building Regulations

• requirements• requirements• requirements satisfyingbased methods

• requirements forinvestigations dealing with individual stands and townships development, taking into account the

• requirements• requirements forbased methods

• requirementsinvestigations dealing with individual stands and

satisfyingsatisfying


RevIeW oThe NHBRC recently embarked upon a review process of the Warranty Scheme which will result in three new documents being published, namely a set of Technical Requirements for issue as regulations by the Minister in terms of the Act; a Home Building Manual containing the technical requirements prescribed by the Minister and the means by which home builders must comply with the technical requirements; as well as a guide to the Home Building Manual which explains the content of the Home Building Manual and locates the manual in the broader context of sustainable human settlements.


P oPo APPRoACHThe Technical Requirements and the Home Building Manual will be drafted in plain language and in such a manner that they can be readily amended from time to time. The revised Technical Regulations will include:

• definitions of the categories of dwelling units that areincluded in the definition of a home and any structure which is included in the definition of a home

• performance descriptions performance parametersfor structural strength and stability, serviceability, materials, behaviour in fire, drainage and storm water management and water installations in relation to the warranty scheme, taking into account overlaps in requirements with the functional regulations contained in the National Building Regulations

• requirements for satisfying requirements for performancebased methods

• requirements forinvestigations dealing with individual stands and townships development, taking into account the provisions and needs of the housing subsidy schemes

Manual will not contain any forms that need to be lodged to demonstrate compliance or procedures relating to the administration of the scheme. These will be issued

manual; it will locate the Home Building Manual in the broader context of Sustainable Human Settlements and provide design and construction rules derived from the home building manual for typical subsidy homes.

they can be readily amended from time to time. The revised

for structural strength and stability, serviceability, materials, behaviour in fire, drainage and storm water management and water installations in relation to the

www.nhbrc.org.za

ADVERTORIAL



RevIeW oF THe WARRANTy SCHeMeThe NHBRC recently embarked upon a review process of the Warranty Scheme which will result in three new documents being published, namely a set of Technical Requirements for issue as regulations by the Minister in terms of the Act; a Home Building Manual containing the technical requirements prescribed by the Minister and the means by which home builders must comply with the technical requirements; as well as a guide to the Home Building Manual which explains the content of the Home Building Manual and locates the manual in the broader context of sustainable human settlements.


PRoPoSed APPRoACH The Technical Requirements and the Home Building Manual will be drafted in plain language and in such a manner that they can be readily amended from time to time. The revised Technical Regulations will include:

• definitionsofthecategoriesofdwellingunitsthatareincluded in the definition of a home and any structure which is included in the definition of a home

• performancedescriptionsandperformanceparametersfor structural strength and stability, serviceability, materials, behaviour in fire, drainage and storm water management and water installations in relation to the warranty scheme, taking into account overlaps in requirements with the functional regulations contained in the National Building Regulations

• requirementsforsatisfyingrequirementsforperformancebased methods

• requirementsforthevarioustypesofgeotechnicalinvestigations dealing with individual stands and townships development, taking into account the provisions and needs of the housing subsidy schemes after consultation with the Council for Geoscience, and

• requirementsformanaginggeotechnicalrisksduringconstruction

In addition, consideration will be given to making provision for a certification scheme for sites, designs and installations.

The revised Home Building Manual will also set out compliance methods and procedures for home builders to satisfy performance-based methods, including the following points:

• notreplicatingthecontentofSouthAfricanNationalStandards

• makingreferencetoSouthAfricanNationalStandardswherever appropriate e.g. SANS 10400, SANS 2001, SANS 1936 and SANS 634

• addressinggapsinthecurrentSouthAfricanNationalStandards

• establishingrequirementsforthetestingofmaterialsandcomponents

The Technical Requirements and the Home Building Manual will not contain any forms that need to be lodged to demonstrate compliance or procedures relating to the administration of the scheme. These will be issued separately by the NHBRC in terms of the Housing Consumer Protection Measures Act.

The guide to the Home Building Manual will further explain the philosophy behind the manual and the content of the manual; it will locate the Home Building Manual in the broader context of Sustainable Human Settlements and provide design and construction rules derived from the home building manual for typical subsidy homes.

The revision of the NHBRC Technical Requirements and Home Building Manual is in progress and should be completed by June of 2014. Housing consumers and individuals involved in the housing supply chain are invited to provide comment on the draft Technical Requirements and Home Building Manual. The draft Technical Requirements and Home Building Manual are available in print format in provincial NHBRC Customer Service Centres and electronically on the NHBRC website on www.nhbrc.org.za

enquiries can be forwarded to:

Dr Jeffrey Mahachi, Pr. EngNHBRC Special Technical AdvisorT: 011 317 0075E: [email protected]

www.nhbrc.org.za

ADVERTORIAL

Untitled-2 3 2014/04/08 8:14 AM

face to face16


Motshekga strategises skills shortageAmid a looming skills shortage in the South African workplace, we speak to South African Minister of Basic Education Angie Motshekga about how the department is addressing this issue from the ground up

Q What strategy is the Department of Basic Education (DBE) adopting in order to encourage pupil preparedness in addressing the current skills shortage?The DBE has put a strategy in place to address the shortage of skills in South Africa. The education sector has reconstructed the curriculum for technical schools in order to do that. This curriculum will provide mobility and articulation between the field of work and schools through to higher institutions of learning. It introduces areas of specialisation in the engineering and technology fields (civil technology, electrical technology and mechanical technology).

To support engineering subjects, technical mathematics and technical science have been developed and will be introduced in 2015. Furthermore, the DBE is currently developing a curriculum for schools of skill, which will have a skills component that will allow learners to exit the system with a form of recognised qualification at NQF Level 1.

The DBE has put in place a range of intervention strategies to support the teaching and learning of languages and mathematics, which play a key role in providing the foundational knowledge for the acquisition of knowledge and skills in the areas of science, engineering and technology in the further education and training (FET) phase and in post-matric. This includes the development of the South African Sign Language (SASL) curriculum for grades R through to 12.

The DBE is preparing the system in 2014 for the implementation of the SASL progressively from 2015. Regarding the schools of skill, 2014 will be devoted to the development and finalisation of both the curriculum and the qualification.

Q How does the DBE plan to implement the strategies addressed above?The Department will gradually introduce the reconstructed curriculum from 2015 in Grade 10, 2016 in Grade 11 and 2017 in Grade 12.

By Candace King

“The DBE will continue

to align the technical

schools’ curriculum to

modern technologies.

The introduction

of specialisation in

technical schools will

fast-track the growth

of the skills pool

in South Africa”

Technical schools will be audited by June 2014; expansion of these schools is inevitable. Targets to increase learner participation have been set. Schools that lack resources are being recapitalised in order to modernise them to meet the required industry standards.

To capacitate teachers, skills training centres will be used. The DBE will be engaging the private sector in affording learners an opportunity for experiential learning. Furthermore, the DBE has begun to implement its advocacy strategy in promoting the reconstructed curriculum for technical schools through print media, TV, question-and-answer booklets, community radio, road shows, work with social partners and the Quality Learning and Teaching Campaign.

The DBE intervention strategies to support the teaching and learning of languages and mathematics have been rolled out in provinces, districts and schools. Interventions for 2014, refined in response to the results of the Annual National Assessment, have been developed by DBE and are being customised by provinces, districts and schools. There is close alignment between the senior phase and FET mathematics, technology and science curricula in terms of content and skills as a result of the implementation of the strengthened Curriculum and Assessment Policy Statement.

Q What are the reasons for the current skills shortage in the workplace?The South African society has underrated the importance of vocational education; hence learners opt for soft skills or white-collar jobs. These subjects were perceived as subjects meant for slow learners or learners with barriers to learning. Also, the curriculum has not been differentiated and diversified to allow choices in terms of vocational or academic qualification.

The apartheid education system was not made to prepare the majority of the citizens to pursue skills programmes, resulting in labelling maths, science and technology as subjects for a specific race. Many schools are mindful of raising their performance and maintaining good image, thus their curricula are of less demanding

Face To Face_SUBBED.indd 16 2014/04/07 3:00 PM

face to face17


subjects, or the majority of learners are offered less demanding subjects. The shortage of maths and science teachers compounds the situation. Fewer opportunities are afforded to learners for experiential learning in the private sector.

Q How can organisations such as SAPOA and its members help to address the problem?Such organisations should avail their training centres to encourage learners to pursue skills programmes, and adopt a few schools in addressing career guidance. Afford learners and teachers opportunities for experiential learning, and identify skills needed by their industry and submit to DBE for consideration – especially in areas where development is still in progress.

Q What is the future of South Africa’s education system and skills pool?With a vision to strengthen the offering of technical education in all technical schools, the future will provide a range of opportunities to learners. The DBE is working with sector education and training authorities, professional bodies, industry and other skills-promoting organisations, as well as the Department of Higher Education and Training.

The DBE will continue to align the technical schools’ curriculum to modern technologies. The introduction of specialisation in technical schools will fast-track the growth of the skills pool in South Africa. Collaboration with skills training centres to up-skill teachers will be cemented. The collaboration formed between the Department of Basic Education and Higher Education and Training in promoting the 2014-2024 Decade of the Artisan campaign will improve the situation. The DBE’s intervention strategies to support the teaching and learning of languages and maths will provide the foundational knowledge for the acquisition of knowledge and skills in the areas of science, engineering and technology (in the FET phase and in post-matric). The skills pool will grow, provided all the developments and strategies are rolled out and supported by business, and that business brings graduates from the schooling system into its employ.

Face To Face_SUBBED.indd 17 2014/04/07 3:00 PM

sector focus18

property developer l May2014

A work in progressThe office sector in South Africa may still be lagging – but the segment is being driven by a growing demand for quality and prime space

By Candace King

Today’s times have not been kind to the property industry’s office sector.

According to IPD South Africa Annual Property Index, the sector has often been the lowest-performing segment over the past few years, with retail and industrial constantly competing for “total return first place”.

Looking back to pre-recession times, the office sector lagged in 2006 with a total return of 24,5%, while industrial came out on top with 31,1% and retail followed behind with 27,4%. It was further reported that the office sector’s lagging performance had been a recurring pattern for five years prior to 2006.

In 2008, during the recession, there was a glimmer of hope for the office sector as it beat retail (11,1%) with a 14% total return, while industrial scored 18,1%. However, in 2009, office was back at the bottom with eight percent, while retail achieved the highest total return of 8,8%, beating industrial (8,7%) by a small margin.

Then in 2010, the office sector made a surprise comeback as the top performer with 14,1%, while industrial sat at 13,6% and retail at 13,1%. According to the IPD South Africa Annual Property Index for 2013, the office sector followed its old trend by underperforming against the other two sectors during the property cycle recovery, but still managed a respectable 13,6% return. Industrial achieved a total return of 17,1%, marginally outperforming retail at 16,8%.

“The office sector is struggling on the back of anaemic economic growth and limited service sector job creation. Office tends to enjoy the peak times,” said IPD South Africa vice president for client coverage, Phil Barttram, at the Johannesburg launch of the IPD South Africa Annual Property Index for 2013.

Interestingly, the total return for 2013 was a stable 15,3%, sitting right at the halfway mark of 2005’s sterling total return of 30,1% – South Africa’s highest annual return since the first year of the Index’s captured return data in 1995. (The Index was first published in 1997.)

“The office sector has been under pressure for a while due to oversupply and challenging economic times,” says Izak Petersen, CEO of Dipula Income Fund.

“The sector is the most sensitive to economic downturns because users, especially smaller users, tend to rather give their space up and work from alternative locations. There aren’t many new big users of space. If anything, we have seen tenants moving around – either in search of better, more appropriate space for their business to take advantage of current favourable pricing or just because of landlord poaching.”

Bruised but not beaten“Performance is muted because companies are struggling to grow in the current economic climate,” says David Rice, chief operating officer of Redefine Properties. “If anything, they are seeking to reduce their employee base, which has caused intense competition to retain tenants and attract new ones.”

Petersen believes there is relatively low development taking place in this sector. He says that there are almost no speculative developments, with some tenant-driven schemes being the order of the day.

While the office sector has experienced unsettled performance over the years, it’s compelling to note that there is still much activity in the sector in the form of growing demand for modern AAA-grade office space, especially in up-market bustling business nodes that boast access to critical transport hubs. Essentially, the office sector at the moment is a game of musical chairs mixed with snakes and ladders.

“We have seen a growing demand, from local and multinational businesses, to operate from quality, well-located assets, which are becoming increasingly hard to find,” says Rice. “Demand for premium and A-grade properties remains relatively high but is declining for B and lower grades as a result of companies migrating to better addresses. We do not anticipate improved demand for lower-grade office space until GDP growth increases on a sustainable basis.”

“The office sector is undergoing a transformation at the moment,” says Jordan Mann, Krisp Properties’ executive director and a director at the Nu-Hold Group.

Izak Petersen, CEO of Dipula Income Fund

David Rice, chief operating officer

of Redefine Properties

Sector Focus_SUBBED.indd 18 2014/04/07 3:11 PM

sector focus19


“Businesses are prepared to pay for good- quality office space that is tailored to meet their needs, and that is positioned close to major markets or transport nodes, so staff do not waste time stuck in traffic. The Nu-Hold Group has found that there is strong demand by big businesses for AAA-grade buildings that are custom-designed and equipped with all the latest modern conveniences. Essential to the success of these developments is their location.”

Location, location, locationSo where is all the office action taking place? Petersen says that the large metropolitan areas continue to fare better than smaller regions in relative terms.

“Sandton continues to draw relatively good rentals although it is being challenged by the emergence of other new nodes, such as Waterfall and Rosebank,” he says. “Traffic congestion is working against Sandton; however, the Gautrain provides some support.”

He notes that the east side of Pretoria is fast emerging as a good office node, although over-supply is becoming a threat.

The Cape Town CBD seems to be going through a tough time, with increasing vacancies and much more space having been added on a speculative basis. “Any investor who builds offices on spec at the moment is incredibly brave – I think it will be a while before we see much of that type of activity again,” says Petersen.

“We are seeing subdued activity in the region due to a lack of big users and pedestrian economic conditions.”

According to Rice, Gauteng is South Africa’s top-earning province, contributing about a third of the country’s GDP. And Johannesburg contributes most of this. As such, the number of businesses in this area is much higher than in other provinces resulting in more demand for space.

“The highest demand for new space is in the affluent nodes of Sandton, Bryanston and Centurion, as well as P- and A-grade properties in Midrand,” says Rice. “The Gautrain is clearly stimulating development activity along its route. More than 500 000m² of P-grade office space is currently under construction in Johannesburg to accommodate corporations that require modern, efficient buildings in prime locations such as Sandton and Rosebank.”

Mann believes that Johannesburg and Cape Town are the office hot spots. “In Johannesburg, Midrand is ideal because of its location between Johannesburg and Pretoria, and its positioning along major transport routes,” he says.

Recently, there has been a surge in demand for modern Johannesburg office space, with many of South Africa’s blue- chip companies relocating to the bustling Atlas Road, alongside the site of the planned OR Tambo Aerotropolis. Mann notes that the demand for office parks in the area is immense.

Michelin headquarters at Clearwater Office Park Clearwater Office Park

The total return for 2013

was a stable 15,3%, sitting

right at the halfway mark

of 2005’s sterling total

return of 30,1% – South

Africa’s highest annual

return since the first year

of the Index’s captured

return data in 1995. (The

Index was first published

in 1997)


sector focus20

property developer l May2014

So great is the demand that Atlas Road’s Clearwater Office Park, developed by Nu-Hold Group subsidiary Krisp Properties, is having to more than double in size. The expansion, according to Mann, would more than double the size of the existing office park, taking it from 17 000m² gross lettable area (GLA) to almost 45 000m² GLA over the next five years.

The company has added an average of 4 500m² of commercial space per year at the office park. Mann says the first phase of the expansion was 11 000m² of office space at the corner of Atlas Road and the K86, which he hopes to have completed by December next year. Current tenants of Clearwater Office Park include Discovery Health, Old Mutual, Absa Bank, Barloworld, Michelin Africa headquarters and Imperial Air Cargo. When complete, the development will include seven AAA-grade unique office-park precincts.

Mann adds that the company is leading the charge in developing “a new business node” along Atlas Road, given the demand by blue-chip companies to relocate from the likes of Kempton Park. In December last year, Michelin moved its South African headquarters from Bedfordview to new AAA-grade, 3 000m² offices at Clearwater.

“We see ourselves as the forerunners of what is happening here at the OR Tambo Aerotropolis,” Mann says. “People are taking note of our development because it’s a modern office park with high traffic volumes along Atlas Road and high visibility.”

Trends and challengesThe major trends in the office sector include a big drive to more green and efficient buildings in order to reduce carbon emissions, save on electricity and water costs and to create a more pleasant working environment; landlords using creative pricing methods, incentives for brokers and tenants to fill up their buildings; tenants who are more conscious of the all-in cost of occupation, thus putting pressure on the net rentals; tenants demanding more flexible spaces and continuing to reduce the average space occupied per employee; shorter leases being signed by smaller tenants because of the uncertain economic environment; and larger tenants locking in lower rentals for the long term as they realise current pricing advantages.

“Another trend impacting the office sector is the increasing mobility of employees and the rise of open offices and ‘hot desking’,” says Rice.

“In the past, office building architects worked on a ratio of 20m² per employee (including common areas and amenities) but this has dropped to as low as 8m² per employee.”

Another big trend is the mixed-use appeal of modern office spaces – it can be said that amenities maketh the office. Clearwater Office Park boasts lifestyle offerings with tennis and squash courts, a gym, a spa and a restaurant, all of which Mann says had proved major draw cards in addition to the modern office space.

The beautification and aesthetic appeal of offices has also become a major trend recently. A stunning example is 300 on Kent. Leader in tile and construction adhesives TAL recently developed a customised, ultra-white mosaic adhesive to install colourful glass mosaic tiles at 300 on Kent, the new office building of the JD Group’s financial services business in Randburg.

The biggest challenges in the office sector include slow economic growth and, therefore, a decrease in space demand; hanging user patterns due to technology that leads to reducing staff numbers; decreasing white-collar staff members due to South African economic structural patterns; the demand for new and more green and energy-efficient buildings, thus leading to pressure on B- and C-grade buildings; and competitive pricing as landlords fight to retain tenants or attract new tenants on an incentivised basis.

“Economic challenges are driving many businesses to downscale, and a lingering oversupply of A-grade office space is still weighing on occupancy levels,” says Rice. B- and C-grade office space is experiencing high vacancy levels, particularly evident in older CBDs, such as central Johannesburg.”

The IPD South Africa Annual Property Index showed that around 2000 and 2001, inner-city office vacancies peaked at 36%. In 2013, inner-city offices continued to trail behind with a 12,7% total return for the year.

The future of the office sectorRice believes the office sector will continue to experience more pressure than the other sectors in 2014. “We have seen that B- and C-grade offices have been losing tenants for some years but we anticipate that vacancies will start climbing in A-grade offices, particularly those in less than prime locations,” he says. “As a result, we can expect fair amount of leasing in the office sector, resuling from relocating tenants and not new business.”


sector focus21


IPD South Africa Annual Property IndexResults for the year to 31 December 2013

The IPD South Africa Annual Property Index measures ungeared total returns to directly held standing property investments from one open market valuation to the next and in the year to end 2013 returned 15.3%

IPD South Africa Annual Property IndexTotal return

indexDec 2012

Total return index

Dec 2013

Total return%

Income return%

Capital growth%

Annualised total return %

Dec 1994 = 100 Dec 1994 = 100 1 yr 1 yr 1 yr 3 yr 5 yr 10 yr

All Property 1,313.3 1,514.7 15.3 8.2 6.7 13.5 12.6 18.2

Retail 1,679.9 1,961.4 16.8 7.6 8.6 14.5 13.1 18.7

Office 903.2 1,026.2 13.6 8.9 4.3 12.1 11.7 16.8

Industrial 1,430.9 1,675.9 17.1 10.3 6.3 15.0 13.6 20.8

Other 1,578.9 1,588.1 0.6 7.1 -6.1 4.5 7.7 15.1

Comparative dataEquities 1,849.4 2,151.0 16.3 - - 15.0 18.2 18.0

Bonds 929.8 926.2 -0.4 - - 9.0 7.9 7.9

Inflation 100.0 105.4 5.4 - - 5.7 5.4 5.7

Data sources: MSCI, JPM 7-10yr, Stats SA CPI Urban Area.

IPD South Africa Annual Property IndexCapital value (ZARm) Capital value (%) Number of properties Number of funds

All Property 213,014.8 100.0 1,354 18

Retail 130,917.5 61.5 288 18

Office 48,168.0 22.6 438 15

Industrial 23,319.4 10.9 524 12

Other 10,597.4 5.0 101 15

The figures above represent the full coverage of the IPD South Africa Annual Property database as at December 2013. The IPD South Africa Annual Property Index employs only fully revalued assets from that database.

Sustained economic challenges will also make the year difficult, and tenants are likely to come under the most strain from increases in municipal costs and electricity. “To overcome this, we are actively finding ways in which to make our properties more efficient by drawing on alternative energy and water sources,” says Rice.

Petersen says that we will quite likely see more of the same going forward. “There will be no fireworks,” he says, adding that it will be driven as a tenant market, and

we will see landlords poaching from each other from the small pool of quality tenants through aggressive incentives and space upgrades.

He also says that there will be very little speculative building of new offices as well as a continued drive to decrease the overall cost of occupation through energy-efficiency initiatives.

Furthermore, rentals will increase modestly – and perhaps even go backwards for lower-graded offices.

“We will also see an aggressive resistance to the increasing utility costs, as evidenced in the past five years or so,” says Petersen. “To this end, SAPOA are already engaged in a process to take on the municipalities, who have been abusing commercial property owners to subsidise non-paying residential users and feed their ever-increasing (and seemingly endless) pit of operating expenses with consistently decreasing – if not entirely nonexistent – service delivery.”

ABOVE The figures represent the full coverage of the IPD South Africa Annual Property database as at December 2013. The IPD South Africa Annual

Property Index employs only fully revalued assets from that database OPPOSITE, FROM TOP 300 on Kent – main enterance exterior; main entrance

interior; the glass mosaics in the bathroom


area review22


Constructing the CapeGauteng may be the economic and commercial property hub of the country but the Western and Eastern Cape are also areas of prime property opportunity, boasting a fair share of noteworthy developments and refurbishments

By Candace King

Liezel Conradie, JHI Properties’

regional executive manager

The Western Cape may be known for its picturesque natural beauty and its very

laid-back citizens, and the Eastern Cape for its notorious wind and the birthplace of our country’s father, Nelson Rolihlahla Mandela, but the Cape Provinces are also proving to be highly sought-after property development, investment and management destinations. Evidence of this, which is merely a scratch off the surface of examples, can be seen in JHI Properties’ increased portfolio of management contracts in these provinces. Over the past 18 months, JHI Properties in the Western and Eastern Cape has made inroads into the property management sector by increasing its portfolio of assets managed on behalf of landlords with the addition of properties to the value of R1,9-billion, comprising an additional 172 722m² of space.

“This brings the total value of assets managed by JHI Properties on behalf of property owners to R58-billion, of which 804 790m² is managed by the Western Cape region,” says Liezel Conradie, JHI Properties’ regional executive manager in the Western Cape. “New management contracts include, among others, those awarded by Ascension Properties, Fairvest Property Holdings and private investors. As a result of the significant growth in our business in the region, we have expanded our office space and staff complement, which now includes seven experienced portfolio managers.”

Management contracts awarded to JHI Properties by Ascension Properties include buildings such as Atterbury House, Matrix House, Nedbank Centre, 14 Long Street, Grand Central Shopping Centre and other properties also situated in Cape Town’s central city.

From 1 July 2013, JHI Properties also took over management of several properties in the Fairvest portfolio, comprising Tokai Junction in Tokai, Nyanga Junction in Nyanga and Omni Place (the Eskom building) in Durban Road, Bellville in Cape Town; and in George on the Garden Route, a mall that will be undergoing a revamp during the course of 2014.

Conradie says that, in today’s challenging economic trading conditions, where tenants are able to shop around for the best deal, the emphasis is on adding value and reducing vacancies by attracting quality tenants. “It is therefore more important than ever that, in order to enhance the value of property, landlords invest in maintaining the grading required to retain such tenants,” she says. “For example, since May 2012, by focusing on reducing vacancies and enhancing value, we have increased the combined capital value of a number of buildings in the Cape Joint Pension Fund portfolio by approximately R100-million.

“The redevelopment and refurbishment of buildings also has a positive ripple effect in the areas in which they are located. Coupled with this, Cape Town’s status as World Design Capital 2014 is focusing increased attention on the city both nationally and globally, which presents opportunities to favourably showcase the eclectic mix of both old and new quality commercial and retail property sectors in the city.”

An example is Vukile Property Fund’s Sanlam building in Tygervalley. Managed by JHI Properties, the 20 224m² Tygerpark Business Park was upgraded at a total cost of R49,8-million, and was completed in April 2014.

Other new management contracts acquired by JHI Properties include two buildings in Cape Town. The first is Park On Long, which was introduced by Interpark, which manages the parking. The second building is Customs House, where the Department of Home Affairs occupies the entire building. Further contracts recently awarded to JHI Properties in the Western Cape include local properties managed on behalf of Investec and the Department of Public Works.

On the topic of government, the Western Cape government is actively engaging with the private property sector in order to forge new relationships and to stimulate growth and investment opportunities in the Mother City and beyond.

Rob Kane, Cape Town CCID chairman and

Cape Town Partnership board member

Ian Olivier, Pam Golding Properties’

area principal in Port Elizabeth

Area Review_SUBBED.indd 22 2014/04/07 2:57 PM

area review23


Last year, commercial property owners (represented by SAPOA) and the City of Cape Town met during an ice-breaker event, which created a platform to further the mutual interests of property owners and local government. Focused on the City’s plans for infrastructure expansion as well as efficient investments and incentives for the private sector, the event was spearheaded by City of Cape Town mayor Patricia de Lille, who addressed the concerns surrounding the city, and noted that a review of its facilities and amenities would be undertaken in order to increase the potential for leasing and sales opportunities for interested buyers.

Also at the event, Cape Town Central City Improvement District chairman and Cape Town Partnership board member Rob Kane said, “Our research shows that 30% of visitors who come here for business first come back again for leisure. Attendees at major events in 2012 totalled about 159 400. The statistics are a result of a strategy aimed at ensuring the CBD is a quality environment where business can flourish.”

In other recent news, the Western Cape government is considering selling off four of its prime properties, including parts of the Somerset Hospital Precinct next to the iconic V&A Waterfront, which is experiencing

ongoing refurbishment and expansion on behalf of the Public Investment Corporation and Growthpoint Properties, who have already injected more than R1-billion into the precinct. These properties include the Helen Bowden Nurse’s Home at Somerset Hospital, the former Tafelberg School in Sea Point, a soils laboratory site in Albert Street and the government garage off Buitenkant Street.

In the Eastern Cape, government efforts are also being made. An initiative of the Eastern Cape government driven by the Eastern Cape Department of Economic Development, Environmental Affairs and Tourism, the Integrated Wild Coast Development Programme (IWCDP) aims to boost the underdeveloped Wild Coast region and thus stimulate the Eastern Cape’s economy.

With investments of between R30-billion and R40-billion needed over the next 10 years, the IWCDP will include development projects such as the upgrading of the Mthatha airport, the N2 Wild Coast Highway, and the Umzimvubu Catchment Development. Having been presented to the public and private sector, the expectation is that the R16-billion invested in major infrastructure projects by the public sector will attract private sector investment worth at least three times that amount.

It’s clear that the private sector, through commercial and residential development, will help uplift the government’s initiatives in the Western and Eastern Cape. Several projects are already under way.

The Cape’s commercial offeringOne of the Western Cape’s biggest commercial development draw cards is Century City, a monolithic 250-hectare mixed-use development in Cape Town, combining office, retail, residential and leisure components in an integrated mini-city within a city.

Construction of Quays, a vibrant new commercial node comprising 39 low-rise studio offices and a TriBakery restaurant in the heart of Century City, has been completed. Developed at a cost of R90-million, Quays is the commercial component of a mixed-use precinct that includes two residential developments, Quayside and Quaynorth, which were also recently completed and in which all 91 apartments were sold months before completion.

The offices in Quays, ranging in size from 41m² to around 400m², excluding balconies, and priced from R800 000 ex VAT, have provided a rare opportunity for smaller office users to purchase in the Century City precinct.

Quays commercial, Rabie’s latest office development at Century City


area review24


The two- and three-storey office buildings are set around courtyards and a water-fronting piazza, where TriBakery is located.

In the Eastern Cape, development opportunities are spurred on by property partnerships and key retail developments. The long-standing relationship between Nedbank Corporate Property Finance and property development and investment group Billion is once again delivering economic development opportunities to the Eastern Cape. The partners recently announced the completion of a deal that will see Nedbank Corporate Property Finance providing R1,1-billion in finance to fund the development of the BT Ngebs Mall in Mthatha in the Eastern Cape. The funding will result in the construction of Mthatha’s largest shopping centre of its kind in the region, which will service approximately 390 000 existing households in an area with a current retail under-supply of 477 341m².

Situated just off the freeway on Errol Springs Avenue in southern Mthatha, the 58 808m² BT Ngebs Mall is already under construction. It is located directly across the road from the city’s new sports stadium. Anchor tenant commitments have been secured from Pick n Pay, Shoprite, Edgars and Woolworths, and the mall will offer a tenant mix of 85% nationals, 17% local or line shops, and two percent franchises. The mall also offers easy access and egress, as well as 1 975 parking bays.

“BT Ngebs Mall will eventually not only create thousands of sustainable jobs and entrepreneurial opportunities but our

R60-million infrastructure investment will also assist in addressing Mthatha’s road, electricity and other infrastructure challenges,” says Billion Group CEO Sisa Ngebulana.

“Mthatha is a key centre of development in the Eastern Cape, and the BT Ngebs Mall has the potential to raise the value this economic hub adds, not just to the immediate surrounding communities but to the region as a whole,” says Ken Reynolds, regional executive at Nedbank Corporate Property Finance in Gauteng.

In explaining the bank’s willingness to invest so heavily in Billion Group’s recent retail development projects, which includes the huge Baywest Mall in Port Elizabeth, Reynolds points to the relative resurgence in retail investment, particularly in the Eastern Cape, as a key factor.

“Given the retail sector’s potential to drive economic growth, employment and community upliftment, Nedbank is more than happy to get behind an organisation such as Billion Group, which is not only highly invested in the region but also serves as an example of what can be achieved through effective and sustainable transformation,” he says.

Developed by Abacus Asset Management and Billion Group, the super regional R1,7-billion Baywest Mall is set to become the Eastern Cape’s largest mall when it opens to the public in March next year. Baywest MD Gavin Blows says everything is on track for the mall to welcome visitors from March 2015.

“Baywest is more than just a mall,” says Blows. “It is going to change the face of the region. In 10 years, Baywest City will rival the likes of Century City in Cape Town and Sandton City in Johannesburg. The first phase will cover about 35% of the total developable land, with the super regional mall being the trigger for this component. The Baywest Mall will open with approximately 87 ,500m² of lettable area and is expected to expand to 110 000m² over the next 10 to 15 years.”

The first phase will also house 100 000m² of office and commercial tenants and about 2 000 housing opportunities. A private school and hospital are also planned.

“This particular development has also unlocked the construction of the new R300-million Redhouse-Chelsea Interchange road network, which will not only relieve traffic congestion but should also stimulate growth in the surrounding suburbs,” says Ian Olivier, Pam Golding Properties’ (PGP) area principal in Port Elizabeth. “The year 2014 promises to be an exciting year for commercial, retail and other development in and around Port Elizabeth. There are several developments on track which augur well for our economy, consumer confidence and, consequently, the property market, among others.”

More news on the retail side, says Olivier, is the imminent opening of the first phase of a new shopping centre in Lorraine known as Kamma Crossing. The R50-million centre, located off Kragga Kamma Road, has Checkers and Clicks as its anchor tenants. The second phase is currently under way.

Witsand, on the Breede River Construction at Baywest Mall, March 2014


area review25


The industrial component of the Eastern Cape is also booming. Olivier notes that the Coega Industrial Development Zone (IDZ) reports a number of new projects. “Openings include Chinese automotive giant First Automobile Works truck assembly plant, DCD Wind Towers’ manufacture plant and Air Products’ separation unit. Afrox is also set to build an air separation unit,” he says. “Agni Steels is on track to start production in its smelting and steel billet operations, while two international logistics companies will be establishing container depots there. UTI Sun Couriers and Digistics are expanding their operations this year, and construction on new 11 000m² cold-storage facility is also on track.”

GDF Suez will be constructing a new R3,5-billion peaking power plant, Dedisa – the largest construction project to date. This is expected to create about 1 000 (mainly local) jobs while simultaneously complementing the city’s electricity supply.

All going well, a R5,6-billion fuel- storage facility will be built across the Coega River. This will allow for the relocation of the manganese ore terminal and storage facility in Port Elizabeth. More than 1 500 people are likely to be involved in construction of these facilities. The Port of Ngqura also starts building its next phase of development soon.

The various industrial and infrastructure developments and upgrades are stimulating the residential market. The small, up-market coastal villages of Blue Water Bay and Swartkops, which lie about 12km to the

north of central Port Elizabeth, are poised for significant growth on the back of ongoing job creation and new development at the nearby Coega IDZ.

In the Western Cape, the same trend can be seen. Work has begun on the long-awaited upgrade of Kleinmond’s scenic harbour, which is attracting residential buyers who wish to be part of this bustling and character-filled precinct.

Originally built around 1940, the Kleinmond harbour enjoyed its heyday during the fishing boom of the 1970s but had fallen into disrepair in the following years. Now it is receiving a new lease on life, as developers Wharfside Developments Kleinmond oversee the repair of all breakwaters, the dredging of the harbour bowl and the upgrade of pedestrian access, as well as the building of a new jetty and the stabilising of the harbour walls.

The harbour upgrade is the latest phase in a lengthy, multi-levelled development plan for the area, which has already seen the retail area around the harbour extended and upgraded, as well as the initial residential component being built.

Living in the CapeAlthough the Cape residential property market was negatively impacted by the recession, interest and activity in this segment have picked up among holiday and retirement buyers. In Port Elizabeth, Olivier says interest in coastal property definitely increased this summer, particularly when it comes to homes that enjoy a sea

view and are generally priced in the region of about R2-million.

Buyers are mainly locals seeking primary homes, as well as those from upcountry and the Western Cape who are relocating on business or for a better lifestyle, and investors seeking a home to retire to in the future, says Olivier. PGP St Francis Bay, which includes Cape St Francis, reports its best summer season in years and has actually doubled its turnover over the past 12 months (to February 2014).

Situated on the Garden Route, the Mossel Bay office of PGP saw a massive increase in enquiries in the six months culminating in the recent festive season, with a revival in the market for vacant stands and with enquiries exceeding the previous summer season’s.

In the scenic Western Cape coastal towns of Witsand and Stilbaai, along the area known as the Blombos coast, PGP has been seeing heightened interest among up-country buyers, including those from Gauteng and Limpopo.

A major trend in the Cape is the development of secure, up-market lifestyle estates. Some examples include the Wedgewood Golf & Country Estate in Port Elizabeth, Stonehurst Mountain Estate in Tokai, Harbour’s Edge on the beachfront at Laaiplek, and Belvedere Court in Claremont.

If the quintessential charm of the coast doesn’t warm you, than the many commercial and residential developments in the Western and Eastern Cape should. This is where it’s all happening!

ABOVE Kleinmond harbour ABOVE RIGHT, FROM TOP The edge of the harbour in Kleinmond; Harbour Road – a desirable waterfront destination


interview26


Speaking SPLUMAAt a recent SAPOA Spatial Planning and Land Use Management Act (SPLUMA) breakfast session, we caught up with Department of Rural Development and Land Reform’s acting director for planning institutions support Gavin Benjamin and acting director for land use compliance Tshepiso Lentsoane to talk about SPLUMA and its relevance in South AfricaBy Candace King Photographs by Michael Glenister

Rural and urban development is

equally essential for the growth

and development. Municipal planning

plays a balancing act in spatial

transformation and unearthing socioeconomic

potential of rural and urban spaces

Why is SPLUMA important and necessary in South Africa?SPLUMA restores order in the country’s planning system, especially where spatial planning, land development and land use management is concerned. It provides a framework for policies, norms and standards, spatial development planning and land use management that ultimately play a significant role in addressing the past spatial and regulatory imbalances. SPLUMA strengthens intergovernmental relations; it recognises that all three spheres of government are responsible for planning. But the distinctive nature and context of planning varies per sphere of government. In this case, SPLUMA places more emphasis on municipal planning, which is the sole responsibility of municipalities where land development and land use management is concerned.

SPLUMA seeks to promote consistency and uniformity in procedures and decision-making in this field. How will it be implemented and ensured?SPLUMA encourages cooperative national, provincial and municipal planning by developing spatial development frameworks that are consistent with and informed by each other, ensuring that future growth and development of the country are inclusive of spatial, social and economic factors. SPLUMA discourages parallel systems that are unnecessary,

and undermines the powers and functions of municipalities. SPLUMA encourages coordinated and inclusive planning systems that give due regard to different spatial planning processes and instruments of all three levels of government. Guidelines for land use, spatial plans and norms and standards will be developed to assist municipalities to develop land use schemes and spatial plans that are SPLUMA-compliant.

How crucial is urban regeneration and spatial transformation in South Africa? Urban regeneration is important to ensure that South African cities and towns meet the standard set for developing countries. It is essential to ensure that urban areas are rejuvenated to attract more investment. By the same token, rural areas are equally important to the economy of this

country – hence SPLUMA encourages the transformation of small

rural and mining towns.

SPLUMA Developer_MAY_SUBBED.indd 26 2014/04/07 3:13 PM

interview27


SPLUMA encourages an inclusive planning system that caters for rural areas, including areas under traditional leadership and informal areas found in urban zones to be reflected in the Spatial Development Frameworks of each sphere of government. Rural and urban development is equally essential for growth and development. Municipal planning plays a balancing act in spatial transformation and unearthing socioeconomic potential of rural and urban spaces.

What are the challenges around SPLUMA in the property industry? There are no challenges other than the fact that there is shift in the planning system and everyone must understand, adhere to and embrace the changes – especially around the transitional measures. SPLUMA introduces the Municipal Planning Tribunal, which authorised officials need to establish so that all land development applications are dealt with efficiently and effectively by the municipalities. Development applications that were submitted using the Development Facilitation Act have been affected but municipalities will be able to deal with the transition through Section 60 (implemented in April 2014).

How will SPLUMA dovetail with the Planning and Development Act?SPLUMA is a legislative framework with which all provincial planning legislation must be consistent.

How will the municipalities cope with this as well as their own implementation of planning by-laws?There are initiatives to assist municipalities to implement SPLUMA. This will require all three spheres of government to work together, especially the national and the provincial sphere, to play the monitoring and support function as stipulated in the Constitution. There are guidelines that are being developed.

The South African Local Government Association, the Department of Cooperative Governance and Traditional Affairs and the Treasury are all on board to ensure that municipalities have the required capacity in terms of both human and intellectual resources.

How will government work together on all levels in this transition? Section 30 of SPLUMA encourages alignment of authorisation where an activity requires authorisation in terms of SPLUMA and is also regulated in terms of another law. The relevant municipality and the organ of state empowered to authorise the activity in terms of the law may exercise their respective powers jointly by issuing separate or integrated authorisation. This will ensure the burden placed on multiple authorisation processes is reduced.

How will government work with the private sector going forward?The private sector is essential in the growth and development of this country, thus partnership in skills and development plays a key role. The private sector is encouraged to participate in all government interactions to ensure accountability and implementation of government policies and programmes. The private sector will be able to play a role in the formulation of Municipal Spatial Development Frameworks and Municipal Land Use Schemes, and in any other municipal plans and policies published by the municipality for public comment. The private sector will also be involved in national government initiatives to ensure that SPLUMA is implemented appropriately.

SPLUMA is a legislative framework with which all provincial planning legislation must be consistent

SPLUMA Developer_MAY_SUBBED.indd 27 2014/04/07 3:14 PM

feature28


It’s the kind of destination that romantic novels and blockbuster films are made

of – the Romansbaai Beach and Fynbos Estate, as the brochure states, is “pure tranquillity” and epitomises “the luxury life you deserve”.

Over the past few years, estate living in South Africa has become a popular choice among citizens – and thus a viable development venture for developers across the spectrum.

From the property-development giants to the smaller, more niche companies, the development of residential and mixed-use estates has mushroomed across the country to a point where land has become scarce –especially pristine natural land. Everyone wants their piece of paradise.

Nestled right on the water’s edge, Romansbaai is probably the last coastal

residential estate with direct access to a beach and the ocean, say its charismatic developers. Snugly situated at Danger Point on the Western Cape coast, Romansbaai is an untouched nugget of natural beauty, where tranquil turquoise ocean waters and unspoilt beaches kiss the indigenous fynbos that is teeming with wildlife.

Located 40km from Hermanus and 180km from Cape Town, on the doorstep of the fishing Mecca and great-white-shark hot spot of Gansbaai, the 220-hectare estate is also one of very few maritime estates on this coast that faces north. With breathtaking views across whale-famous Walker Bay to the Hottentots Holland mountains, Romansbaai is pure coastal bliss.

However, this wasn’t always the case for this now blossoming estate.

28


Romansbaai_SUBBED.indd 28 2014/04/07 3:07 PM

feature29


Developing an oceanic fairy tale

Mother Nature meets modern architecture and sustainable development at Romansbaai in the Western Cape – a new-generation coastal estate that’s likely to be the last of its kind

By Candace King

29



feature30


Reviving RomansbaaiDuring the early days of the stifling recession of 2008, the Romansbaai development faltered. Thereafter, its current developer, Dave Mostert, purchased shares and loan claims in Romansbaai from PPG Liquidators and successfully brought the project back to viability through the business rescue process.

One of the original landowners of Romansbaai, Mostert had placed the estate in Pinnacle Point, which went into liquidation in 2011. Subsequently, a business rescue was approved and, with revised budgets and major financial injections by Mostert together with his partners in a company called Cardinet, the turnaround process for Romansbaai was effected.

One of the major assets of the estate was the R60-million already spent on services and infrastructure – a figure which, at the time of writing, had risen to R80-million. “Getting Romansbaai back on track ranks high on my list of worthwhile achievements,” says Mostert.

Having been saved from final liquidation, Romansbaai is now a financial hit with an early success income rate. In only four months since its inception in late 2013, 37 plots with a total value of more than R28-million were registered or were in the process of being transferred at the estate.

“Although Romansbaai is not an average offering, and buyers are specifically attracted to its position and unique features, the immediate and enthusiastic response to its appeal does reflect partly on a more optimistic outlook in the residential property sector,” says Mostert.

So far, the majority of buyers have come from the Cape and Gauteng. Mostert hopes that local residents from surrounding seaside villages will also purchase homes.

Security is regarded as a crucial estate attribute and is definitely one of Romansbaai’s key draw cards. The entire estate is monitored electronically within the

low-visual-impact, high-tensile-steel mesh fence that surrounds it. Access via the gatehouse is by biometric identification devices, and the entrance is manned by a security company that’s already operational.

Of the entire offering, 80 houses will be built by the developers on a plot-and-plan basis, and the remaining 379 homes will be built by owners according to strict development guidelines. A total of 27 of the plots are directly on the seafront, while the rest stretch into the fynbos reserve, with wide swathes of vegetation between the groupings.

Although deemed possibly the last development of its kind in South Africa, Romansbaai’s high standards for restoration of natural resources will apply to a whole new generation of developments in ecologically sensitive environments.

Conservation meets commercialismAlthough Romansbaai’s development approval predates provisions of the National Environmental Management Act related to Oceanside projects, which are now severely restricted, Mostert says that conservation on the site goes way beyond usual measures to preserve the natural environment.

According to Mostert, the development touches its environment lightly, with no fynbos disturbance wider than three metres beyond the road surfaces, and all services, including water and electricity, following the road reserve to the various home sites.

The development is linked directly to the local municipal services, which were upgraded in 2008 specifically to accommodate Romansbaai.

Of the 220 hectares, a mere 15 hectares makes up the building disturbance. Each plot, ranging in size from 1 200m² to 6 400m², has a restricted footprint for construction, and no private fences are permitted.

Meet the developerDavid Carl Mostert has successfully undertaken such diverse ventures as the pioneering and production of market-leading snack foods, commercial and residential property development, wine farming and, most recently, bringing Romansbaai Beach and Fynbos Estate in the Western Cape and Wedgewood Golf Estate in Port Elizabeth to the market. Schooled at Maritzburg College in KwaZulu-Natal, the BSc graduate from the University of Natal also attended the Executive Management Program at Harvard University in the US.

Married with two children, Mostert lives in Cape Town with his family. With a passion for aviation, Mostert has developed an executive business centre adjacent to the runway at Cape Town International Airport. With a capitalised value of R250-million, the Execujet Business Centre is tenanted by Execujet, and the balance by various national and international tenants in 9 000m².


feature31


31



feature32


Indigenous plants and fynbos cover the entire landscape of the estate, and buildings and roads are designed to blend into the vegetation and other natural features. Keeping the natural vegetation in check, the developers are spending about R500 000 a year on the eradication of alien plant species. At the gatehouse precinct alone, more than 7 000 new endemic indigenous plants have been introduced. Where plants had to be removed for roads and pathways, they were transferred to a nursery, then replanted on the site.

Pedestrian, cycle and golf-cart access to the beach is provided by a single dedicated road for exclusive use by residents of the estate and visitors to the 40-room hotel that will eventually be developed there. Like all the other roads on the estate, it is paved with an unobtrusive, aggregate-embedded material. There are no street lights, and light emission from houses is also regulated.

The hotel development at Romansbaai is still in its infancy. “Currently we have the rights for the hotel and the zoning is in place,” says Mostert. “However, we are still looking for a suitable candidate to run with the project.”

He says there has been a lot of interest from several hoteliers looking to buy the stand and develop the hotel. “There is a lot of potential here because the surrounding

attractions in the area will stimulate this development once it’s operational.”

With interest in its residency already piqued along with the inclusion of a hotel, Romansbaai is expected to contribute directly to the economy of the surrounding areas, in that it will provide a market for local traders and employment for residents of the area, both in the construction phase of the houses and in the maintenance of the estate.

Apart from the sustainability of the estate, Mostert notes that one of the major objectives is to mitigate the decimation of natural resources, including that of perlemoen by poachers. “Our conservation mission goes further than the land we occupy, and includes the ocean and the people,” he says. “Where poverty forces people to resort to illegal means to survive, we are committed to help alleviate their plight. As the estate’s population reaches its critical mass, we expect an improvement in the fortunes of disadvantaged locals by way of full- and part-time work.”

As the sunbathed bay says farewell to its warmth-giver and the calm waves lap the sand with the jet-black oystercatchers running forth to wade in the water, another day comes to an end at Romansbaai – a place where dream living can come true.

History lessonThe area around Romansbaai is steeped in history. One of the most notorious historic tales is that of the troopship HMS Birkenhead, which was wrecked off Danger Point in 1852. An obscure rock (now dubbed Birkenhead Rock) two kilometres from Danger Point caused the troopship to sink. The ship was carrying young Welsh and Scottish soldiers, officers and their families, all making their way to the Eastern Cape to fight the Xhosa. The Birkenhead is famous as it was the first shipwreck where the “women and children first” protocol was applied – all women and children were saved but 445 of the men – most of them soldiers – died. In 1895, the Danger Point Lighthouse was built; it is now a firm tourism favourite in Gansbaai.

Key facts● No individual erf fencing● Electronic surveillance● Fully guarded security estate● Eco-conservation principles

● Sea views for all 379 erven● Strict architectural guidelines● Designated building platforms● Plot sizes between 1 200m² and 6 400m²● Plots for sale from R495 000

32



feature33


33



cover story34


Atterbury to open eight shopping centres in eight months

“Opening eight shopping centres in less than a year is no easy feat,” says

James Ehlers, MD of Atterbury Property Developments. “Our team is up to the task. Many of these projects have been planned over several years to create quality assets for Atterbury and our partners. Besides developing top-notch shopping centres to benefit retailers and shoppers alike, completing these retail assets also creates new property income streams for Atterbury and our co-investors.”

The first to open, on 10 April 2014, was Waterfall Corner, a prime neighbourhood convenience centre in the landmark Waterfall Business Estate in Gauteng. Atterbury owns 14,1% of Attacq Waterfall Investment Company, the company that holds the development rights for the prestigious Waterfall Business Estate, and Attacq holds 85,9%. Located at the main intersection of Kyalami Road and Maxwell Drive, the 10 294m² Waterfall Corner is

ideally positioned to serve the high-end residents of Waterfall, and the neighbouring Woodmead, Kyalami and Midrand. It features Woolworths, Checkers and Clicks as anchor tenants. It also offers a vibrant public piazza at its heart, and its restaurants include Beluga, Remo’s, Life Grand Café, The Raj, Vovo Telo and Yamoda Sushi.

On 24 April, Atterbury is opening The Club Shopping Centre in Hazelwood, Pretoria. Atterbury’s full redevelopment of The Club began in January 2013, creating a contemporary, upscale 6 788m² retail and leisure destination.

The Club Shopping Centre is part of the mixed-use node a stone’s throw away from the prestigious Pretoria Country Club. It will introduce an exciting variety of up-market retail close to the exclusive Waterkloof and Brooklyn suburbs.

Woolworths will be the anchor tenant, with Beluga, Harissa, Life Grand Café, Knead Bakery, Paul Mitchell The Salon,

Atterbury_SUBBED.indd 34 2014/04/08 8:54 AM

cover story35


Essential Life, Divine Diva and Sorbet also opening at the centre.

On 28 June, Waterfall Lifestyle Centre will open across the road from Waterfall Corner. Currently under development, this conveniently located centre will feature a brand-new Virgin Active gym.

September and October 2014 are going to be a busy months for Atterbury, both in South Africa and further afield. It is scheduled to open five shopping centres during these months.

Locally, it will open Newtown Junction and Bela Mall, and launch the upgrade and expansion of Flamwood Walk and Value Centre in October 2014.

Newtown Junction is located on 2,82 hectares of land in the heart of Johannesburg’s Newtown, between the Market Theatre and Carr Street, right next to the M1 motorway. It comprises a 35 000m² shopping centre, 40 000m² of offices, a gym and four levels of basement parking, providing 2 400 bays.

Newtown Junction retail will feature Pick n Pay and Shoprite as grocery anchors. It will also include several brands in the Truworths group, Edcon group, Pepkor and the Foschini group, creating a leading shopping and fashion experience, together with Ster-Kinekor as entertainment. Supporting the shopping centre and adding to the vibrant mixed-use development, Nedbank is consolidating its Johannesburg offices in Newtown Junction, and will occupy an additional 37 000m².

Atterbury’s new Bela Mall will bring top shopping and dining to the town of Bela-Bela (formerly Warmbaths) in Limpopo when it opens on 23 October. The 17 800m² Bela Mall convenience shopping centre is on a prime site on the R101, near the N1 highway to Polokwane.

The single-level mall enjoys excellent access from all the main arterial routes in Bela-Bela and offers more than 800 parking bays. It has secured a top line-up of retailers

(in addition to anchor tenants Shoprite Checkers and Game), which includes several brands of the Edcon group, Foschini group and the Truworths group, Pep, Chanson Fashion, MTN, Crazy Plastics and Capitec Bank, among others.

In Klerksdorp, Atterbury is completing the upgrade and expansion of Flamwood Walk, a development that it began in September 2013 in conjunction with Diggers Development Company and Fortress Income Fund. This project is growing the development to around 24 280m², which consists of Flamwood Walk (measuring 19 500m²) and Flamwood Value Centre (measuring 4 780m²). Its anchor retailers are Game and Checkers, joined by, among others, Mikes Kitchen, Checkers Liquor, HiFi Corp and Incredible Connection.

September and October will also see Atterbury open two landmark shopping centres outside of South Africa, in Namibia and Ghana.


Eight of Atterbury’s ambitious retail projects are coming to fruition in 2014. Atterbury will open eight new shopping centres in South Africa, Namibia and Ghana over the next eight months, before the end of December 2014


cover story36


In Namibia, Atterbury will open The Grove, Mall of Namibia, which it is developing in conjunction with the Frontier Property Trust and Demushuwa Developers. The mall constitutes the largest commercial property investment ever within Namibia. The 55 000m² mall is situated within the Hilltop mixed-use development (next to Metro and Food Lovers Market), which enjoys excellent access and is situated in Windhoek’s fastest-growing node of Kleine Kuppe. Retailers at the Mall of Namibia include Checkers, Game, Spar, Edcon, Woolworths, Sportsmans Warehouse, the Foschini group, Toys R Us, Dis-Chem, Ster-Kinekor, Pepkor, Truworths, Busby, the Platinum group, Cape Union Mart and Cotton On.

In Ghana, Atterbury Africa – which is jointly held by Attacq, Atterbury and Hyprop – will open West Hills Mall in the country’s capital, Accra. At 27 700m², West Hills Mall will become the largest single-phase modern shopping centre in the city. This is Atterbury’s second large venture in Ghana, the first one being the purchase and subsequent redevelopment and upgrade of the highly successful Accra Mall.

Atterbury began construction of the mall in December 2012, in conjunction with the Social Security National Insurance Trust of Ghana. With a prime location serving a growing population, West Hills Mall will bring top local and international retailers to this increasingly sophisticated consumer market, with anchor retailer Shoprite Checkers as well as The Palace, Edgars, Jet, Truworths, Identity, the Foschini group, Mango, Silversand Cinemas, Mr Price and Woolworths already on board.

While these malls are all being completed in 2014, construction on the Mall of Africa, in the heart of Waterfall, is also in full swing. The 130 000m² mega-mall, consisting of about 300 stores, is the largest single-phase mall yet to be constructed in South Africa. It will act as a hub around which the other amenities at Waterfall will be clustered. With its location in the new city, its sheer scale and cutting-edge design will change the face of Johannesburg and Midrand. The Mall of Africa is due to open in April 2016.

“We are looking forward to the successful completion of these projects, many of which are ground-breaking and set to become landmarks in their cities,” says Ehlers.


Untitled-2 1 2014/04/08 8:08 AM

development38


Gone are the days of waiting around for your trusty train to arrive – now you can do some banking, grab a

bite to eat and try on that little black dress before hopping onto your choice of transport to head home. This all happens at the newly revamped Park Station in the pumping heart of Johannesburg – and it is not all that will be on offer.

With an estimated foot traffic of 200 000 people per day, 32 000 resident households within a 2,5km radius of the station, and close amenities such as the Gautrain, Bus Rapid Transit system and various educational institutions, it was time for PRASA CRES (Corporate Real Estate Solutions), a division of the Passenger Rail Agency of South Africa (PRASA), to unlock the value of this gold mine and generate revenue from it.

Over the past decade, the station has undergone major redevelopment in order to make it commercially viable. PRASA has committed R650-million over the next three years to upgrading Park Station’s infrastructure and expanding its retail offering.

The evolution of Park StationPRASA unlocks Park Station’s full potential through a revitalisation of its rail and retail offering, transforming the commuter hub into a one-stop mixed-use commercial property menagerieBy Candace King

The mandate of PRASA CRES in managing PRASA’s property portfolio is clear and constitutes the following:

● Optimisation ● Commercialisation ● Facilities management ● National station

improvement programme ● National station

upgrade programme

Apart from Park Station, a total of 134 stations countrywide have been identified for refurbishment, with some set for a complete overhaul. Other major stations such as Cape Town, Germiston, Mabopane, Durban, Berea Road and Pretoria, will become significant intermodal facilities, and offer significant retail and other services.

This is part of a significant drive by PRASA to modernise its stations around the country in preparation for its fleet of new rolling stock to be launched in 2015, while improving commuter experience in its stations. With all these developments, Park Station is no longer just a transportation hub but a place where people can meet, work and shop.

Last year, Park Station was extended by 2000m² to allow for the development of the food court and the banking mall. This revamp also included the installation of modern-day equipment for parking and bus access points. With the modern, user-friendly signage that has been erected, visitors to the station will easily find their way, directed around one of the largest commuter centres in Africa.

Since the start of the Park Station upgrade project, PRASA has welcomed big brands such as Burger King, Mr Price, Spar and Dis-Chem as tenants at the station. Other exciting brands at the food court will include Wandies, Old Fashion Fish and Chips, Chisanyama, Uniwors, Anat, Debonairs, King Pie and Snax Shack.

Apart from its impressive retail component, Park Station also has about 2000m² of office space up for rental. It also seamlessly links up to the Gautrain station, turning the facility into an interconnected transportation node. The next project is the development of the fashion mall.

Prasa Park Station_SUBBED.indd 38 2014/04/07 3:04 PM

S A P O A P R O P E R T Y

REGISTER2014 - 2015

AN OPPORTUNITY NOT TO BE MISSED - DON’T MISS OUT on this widely used and popular industry resource, where each year we accept a large number of listings and advertisements from professionals and service providers across the entire spectrum of property activities.

SAPOA aims to provide added value by offering the basic listings free of charge to all members – but don’t let that be the only way to get your brand noticed all year round. BOOK YOUR DISPLAY ADVERTISING FOR GREATER VALUE-ADDED EXPOSURE!

44

S A P OA P ro p e r t y R e g i s t e r 2 0 1 3 - 2 1 0 4

Managers and administrators

BRAAMCOR MANAGEMENT SERVICES (PTY) LTD P.O. Box 31771,

Braamfontein,Western Cape 2017

t: +27 (0)11 447 0467f: +27 (0)11 447 0462

BROLL PROPERTY GROUP (PTY) LTDP.O. Box 3052, Cape Town,

Western Cape 8000t: +27 (0)21 419 7373f: +27 (0)21 419 4688

CBS PROPERTY MANAGEMENT (PTY) LTDP.O. Box 713, Rondebosch,

Western Cape 7701t: +27 (0)21 658 3900f: +27 (0)21 685 4521

CHARMAINE JANSEN VAN RENSBURGP.O. Box 21142, Port Elizabeth,

Eastern Cape 6000t: +27 (0)41 484 6740f: +27 (0)41 484 6863

CITY PROPERTY ADMINISTRATION (PTY) LTDP.O. Box 15,

Pretoria,Gauteng

t: +27 (0) 12 357 1515 f: +27 (0) 12 357 1482

CITYNET A DIV Of BIG BELL INVESTMENTSP.O. Box 65315,

Benmore,Gauteng 2010

t: +27 (0)11 483 3930f: +27 (0)11 483 3834

DIJALO PROPERTY SERVICES (PTY) LTDP.O. Box 2691, Johannesburg,

Gauteng 2000t: +27 (0)11 838 3928f: +27 (0)11 832 1594

ENCHA PROPERTY SERVICES (PTY) LTDP.O. Box 8439, Halfway House,

Gauteng 128t: +27 (0)11 312 2223f: +27 (0)11 312 2232

ENERGY ACCOUNTING & ADMIN SERVICES (PTY)P.O. Box 95286,

Grant Park,Gauteng 2051

t: +27 (0)11 728 8036f: +27 (0)11 728 2220

ESKOMP.O. Box 36099,

Menlo Park,Gauteng 0102

t: +27 (0)12 421 3217f: +27 (0)12 421 3272

ESKOM MWP PROPERTY MANAGEMENTP.O. Box 2834,

Sunninghill,Gauteng 2157

t: +27 (0)11 800 3440f: +27 (0)11 800 5622

EXPS PROP MANAGEMENT CCP.O. Box 391, Crameview,

Gauteng 2060t: +27 (0)11 884 7520f: +27 (0)11 884 7542

fITZANNE ESTATES (PTY) LTD P.O. Box 40337, Arcadia , Pretoria,

Gauteng 0007t: +27 (0)12 342 3710f: +27 (0)12 342 3776

Nicole Baumgarten

358 Rivonia Boulevard, Rivonia, South AfricaP.O. Box 4043, Rivonia, 2128

t: +27 (0)11 807 4724f: +27 (0)11 807 2043e: [email protected]

www.finlay.co.zaGEN MANAGEMENT SERVICES (PTY)LTD P.O. Box 975,

Cape Town 8000t: +27 (0)21 488 1160f: +27 (0)21 422 2968

GUTSCHE INVESTMENT & MANAGEMENT COPostnet Suite 257, Private Bag X 40106, Walmer,

Eastern Cape 6065t: +27 (0)41 581 0841f: +27 (0)41 581 2435

HERMANS & ROMAN PROPERTY SOLUTIONSP.O. Box 5184, Tyger Valley, Office Suite 0201,

2nd Floor Edward III , 72-76 Edward Street, Tyger Valley,Western Cape 7530t: +27 (0)86 100 0967f: +27 (0)86 519 3821

HUGH ANTHONY WORMALDP.O. Box 137, Queenstown,

Eastern Cape 5320t: +27 (0)45 839 2008f: +27 (0)4 583 97310

IBM SAPrivate Bag X9907,

Sandton,Gauteng 2146

t: +27 (0)11 302 9111f: +27 (0)11 302 9032

IMVELO CONCESSION COMPANY P.O. Box 6062, Morningside

Gauteng 2128t: +27 (0)11 290 5691f: +27 (0)86 662 2992

JOE SWART INVESTMENTS CCP.O. Box 187, Randburg,

Gauteng 2125t: +27 (0)11 886 3104f: +27 (0)11 886 5318

KEI COMMERCIALSonnette StanderPostnet 115, Private Bag X3Beacon Bay, East London 5202Unit 1, 15 Kennington Road,Nahoon, East Londont: +27 (0)43 735 1464f: +27 (0)43 735 1453e: [email protected]

KTN PROPERTY MANAGEMENT (PTY) LTDP.O. Box 652555,


t: +27 (0)11 838 5623f: +27 (0)11 838 5626

KUPER- LEGH PROPERTY MANAGEMENT (PTY) LTDP.O. Box 342, Strathavon,

Gauteng 2031t: +27 (0)11 327 3910f: +27 (0)11 327 3934

MAXPROP ADMINISTRATION (PTY) LTDP.O. Box 221, Pinetown,

KwaZulu-Natal 3610t: +27 (0)31 701 2341f: +27 (0)86 676 1863

MOTSENG PROPERTY SERVICES (PTY) LTDP.O. Box 652836,


t: +27 (0)11 282 2500f: +27 (0)11 803 4918

Holistic Property SolutionsSpecialising in:

l Property managementl Broking and salesl Sectional and full title managementl Property rentals

l Project management /developmentl Property valuationl Building Insurancel Electricity re-selling, meter reading and auditsl Student housing

P.O. Box 4945, Pretoria, Gauteng 0001t: +27 (0)12 426 3400f: +27 (0)12 426 3555

Holistic Property Solutions

With compliments / Met komplimenteTel: +27 (12) 426 3400 / [email protected] / www.midcity.co.za

0861 MIDCITYwww.midcity.co.zaNETCARE MANAGEMENT (PTY) LTDPrivate Bag X 34, Benmore,Gauteng 2010

t: +27 (0)11 301 0123f: +27 (0)11 301 01577

KTN PROPERTY MANAGEMENT

MAXPROP ADMINISTRATION (PTY) LTD

45

Managers and administrators


NEO TREND REAL ESTATE (PTY) LTDP.O. Box 33847, Glenstantia, Pretoria, Gauteng 0010

t: +27 (0)87 803 0577f: +27 (0)86 656 3053e: [email protected] w w. n e o t r e n d . c o . z aNOVATE PROPERTY INVESTMENTS (PTY) LTD

P.O. Box 19514, Tecoma,

Eastern Cape 5214t: +27 (0)43 726 6341f: +27 (0)43 726 8131

OMNICRON FINANCIAL SERVICES (PTY) LTDP.O. Box 3293,

Tygervalley,Western Cape 7536

t: +27 (0)21 914 2616f: +27 (0)21 914 2614

ORBIS SECURITY SOLUTIONS (PTY) LTDPostnet Suite 34, Cape Town,

Western Cape 7801t: +27 (0)217623813f: +27 (0)217629027

ORION FACILITIES MANAGEMENT (PTY) LTDP.O. Box 31416,

Braamfontein,Gauteng 2017

t: +27 (0)11 718 6452f: +27 (0)11 718 6458

PERISCOPIC PROPERTY MANAGEMENT (PTY) LTDP.O. Box 2157, Randburg,

Gauteng 2125 t: +27 (0)11 202 0300f: +27 (0)86 295 8027

Liberty Group Property Management (Pty) Ltd Our core focus is the supervision of a spectrumof prestigious retail and commercial properties to industry leading standards for investors across

the continent including Liberty Group. With six retail destinations, thirteen commercial properties and a retail performance history entrenched over four decades, our track record attracts a high pro�le tenant mix that includes prominent local and international brands.

Liberty PropertiesProperty development and management specialistsTel: +27 (0)11 408 5111Fax: +27 (0)11 408 5112Email: [email protected] Floor, Libridge Building,25 Amesho� Street, Braamfontein, South Africa, 2000

South African Property Ow

ners Association - Property Register

2013 - 2014

S A P O A P R O P E R T Y

REGISTER2013 - 2014

44

Rondebosch,Western Cape 7701

t: +27 (0)21 658 3900f: +27 (0)21 685 4521

CHARMAINE JANSEN VAN RENSBURGP.O. Box 21142, Port Elizabeth,

Eastern Cape 6000t: +27 (0)41 484 6740f: +27 (0)41 484 6863

CITY PROPERTY ADMINISTRATION (PTY) LTDP.O. Box 15,

Pretoria,Gauteng

t: +27 (0) 12 357 1515 f: +27 (0) 12 357 1482

CITYNET A DIV Of BIG BELL INVESTMENTSP.O. Box 65315,


t: +27 (0)11 483 3930f: +27 (0)11 483 3834

DIJALO PROPERTY SERVICES (PTY) LTDP.O. Box 2691, Johannesburg,

Gauteng 2000t: +27 (0)11 838 3928f: +27 (0)11 832 1594

ENCHA PROPERTY SERVICES (PTY) LTDP.O. Box 8439, Halfway House,

Gauteng 128t: +27 (0)11 312 2223f: +27 (0)11 312 2232

ESKOM MWP PROPERTY MANAGEMENTP.O. Box 2834,

Sunninghill,Gauteng 2157

t: +27 (0)11 800 3440f: +27 (0)11 800 5622

EXPS PROP MANAGEMENT CCP.O. Box 391, Crameview,

Gauteng 2060t: +27 (0)11 884 7520f: +27 (0)11 884 7542

fITZANNE ESTATES (PTY) LTD P.O. Box 40337, Arcadia , Pretoria,

Gauteng 0007t: +27 (0)12 342 3710f: +27 (0)12 342 3776

Nicole Baumgarten

358 Rivonia Boulevard, Rivonia, South AfricaP.O. Box 4043, Rivonia, 2128

t: +27 (0)11 807 4724f: +27 (0)11 807 2043e: [email protected]

www.finlay.co.zaGEN MANAGEMENT SERVICES (SERVICES (SERVICES PTY)PTY)PTY LTDP.O. Box 975,

Cape Town 8000t: +27 (0)21 488 1160f: +27 (0)21 422 2968

REGISTER2013 - 2014

24


Developers

DEVELOPERS

Abland

● 53 categories, full- and part-category page sponsorship● Company pro� les ● Highlighted data entries ● Data entries with logos● A� ordable small advertisements – half- and quarter-page ● Boxed column and part-columns

BOOKING DEADLINE: 7 July 2014Contact Riëtte Stevensc +27 (0)71 877 5520 t +27 (0)11 883 0679 f +27 (0)86 216 9026 e [email protected]

REGISTERREGISTERREGISTERREGISTERREGISTERREGISTER MORE THA

N A YE

AR’S

PROPERTY INDUSTRY EXPOSUREGREAT

VALUE

BOOKING DEADLINE: 7 July 2014BOOKING DEADLINE: 7 July 2014

Register filler.indd 1 2014/04/08 8:42 AM

last word40


Brazil misses the goalWith the 2014 FIFA World Cup right under its nose as well as

the rest of the world’s eager snouts, Brazil battles to smell the coffee of complacency and completion

By Candace King

It seems there are no Brazilian “ladumas” or “shibobos” for the official 2014 FIFA World Cup hosts, as the country struggles to complete work on its stadiums and iron out unrest among its

football-fanatic citizens.Despite its soccer-centric culture, its top-performing national

football team (ranked as one of the best in the word), and its history of World Cup tournament wins (five to date), Brazil is currently sitting with egg on its face because of its inability to deliver with just a few weeks to go before the tournament kicks off – a worrying reality that FIFA is obviously not happy about.

While it has been the only host nation to have had seven years to prepare, Brazil recently came under criticism from FIFA president Sepp Blatter for its ill World Cup preparations, labelled as the poorest he’s seen during his almost 40 years with FIFA. He noted that Brazil started work on the event “much too late”.

In addition to half of Brazil’s 12 stadiums failing to meet FIFA’s 31 December completion deadline last year, the South American country faced a wave of challenges, including the death of several construction workers, protests over wasted public money being spent on FIFA with no real value for citizens, and promises of public-works projects and improved infrastructure that have yet to come to fruition.

This doom-and-gloom picture looks all too familiar, like a bad case of déjà vu. South Africa also experienced stadium setbacks, social unrest, and widespread concerns and panic back in 2010, when the rainbow nation held the tournament for the first time on African soil.

Much like our BRICS brother Brazil, South Africa is an economically divided country plagued by poverty, crime, corruption and rife unemployment. Prior to the historic event, the country faced several delays in the preparation of its stadiums (10 in total), most of which were developed from scratch.

Leading up to the tournament, local match-goers were warned about theft and crime, while foreign visitors were also cautioned about the high HIV/Aids rate in South Africa. At the same time, there was a concern about transport and security, and an onslaught of protests and xenophobic attacks. Much of this did not come to light – crime was at an all-time low during the tournament and no xenophobic attacks occurred. According to a report by private security firm ADT during the World Cup, crime was down by 70% in western Johannesburg, while eastern Johannesburg experienced a 60% decline.

Another concern was that the newly built stadiums would become white elephants after the event. FNB (Soccer City) Stadium is now a hit venue for international music superstars, and the other stadiums are regularly used for sports matches, concerts and political rallies.

One of the biggest blows to the country post World Cup, specifically for the property industry, was the stadium collusion reveal last year after several construction and engineering giants were found guilty of taking kickbacks – a 17,5% profit margin! Grinaker LTA, WBHO, Murray & Roberts, Group Five, Concor, Basil Read and Stefanutti were some of the companies caught with their hands in the cookie jar. In total, 15 firms have been fined a hefty sum of R1,5-billion.

Apart from the negative predictions, the handful of naysayers and the disappointment of stadium collusion, many feel that South Africa experienced a month of euphoria from 11 June to 11 July 2010 – a time when we dropped our differences, removed our boxing gloves and enjoyed the event as one nation. Most South Africans believe that we left a legacy – big shoes for Brazil to fill.

Perhaps Brazil will pull through and surprise the globe just like we did when we put on one of the most memorable World Cups. Too bad the oracle, Paul the Octopus, is no longer with us to predict Brazil’s fate, let alone who’ll triumph in the final…

Last Word_MAY_SUBBED.indd 40 2014/04/08 8:57 AM

SPEED AND AGILITY MAKES THE DIFFERENCE.CHOOSE THE INDUSTRY LEADERS TO EXPEDITE SUCCESS

The value and pitfalls in property trading may not be obvious. We aim to provide you with the best advice and support garnered through years of experience. We have established the ideal platform for you to buy or sell property in an environment that delivers faster results and

reduced risk.

With High Street Auctions you will be dealing with the market leader. Our investments focus on effective marketing activities, slick transaction processes, advice from seasoned property experts, a world class auctioneer and premier auction events provides you with the best

combination of factors for success.

Call us today to see how we can assist you in maximising your opportunities on buying or selling property or visit us at our next auction event.

Bid with confidence because we only submit the highest bid on auction day!

3rd Floor, 160 Jan Smuts Ave, Rosebank, Gauteng, 2196, South Africa PO Box 704, Parklands, 2121 | Tel: 011 684 2707 I Fax: 011 684 2705

www.highstreetauctions.com

Untitled-2 1 2014/04/08 8:28 AM

When it comes to choosing fl exibility,strength, beauty and quality...

It has to be stainless steel

The ‘cross and balls’ quality promise is backed by the Southern Africa Stainless Steel Development Association (Sassda), who are developing the industry through the technical advice, training and regulation that they provide to both its members and the public.

®

Questions? Email [email protected]

Stainless steel comes with a promise. A promise that you’ve

chosen quality that you can trust. Choosing stainless steel for

architecture, building and construction means choosing the

long-lasting, robust material that brings your project to life.

It is visually appealing, with high corrosion resistance, easily

maintained and offers cost effective solutions. DW

FCOL

L SA

S517864

South African manufacturers of stainless steel products for the

architecture and interior design industries have a long-standing

reputation for supplying world-class quality goods, as well as

providing a high level of after sales service. Go to www.sassda.co.za

or phone Sassda on +27 11 883 0119 for more details on South

African stainless steel manufacturers.

®

Visit www.sassda.co.za for more information. Tel +27 11 883 0119Terms and Conditions apply 1964 - 2014

®

Untitled-2 1 2014/04/08 8:19 AM

property developer may 2014

Documents

strategic development

organisational development

behalf of sapoa

development priorities

integrated development

sapoa members

recent sapoa board meeting

board sapoa ceo neil