rpp developments property company bags one of...

RPP Developments

PROPERTY COMPANY

BAGS ONE OF ITS BIGGEST

DEVELOPMENTS

PROPERTY COMPANY BAGS ONE OF ITS BIGGEST DEVELOPMENTSWith a host of projects on the go, including one of its biggest to date, RPP Developments is sitting proudly atop the South African property market

Written By Jonny Williamson Produced By Ben Weaver >>>

RPP Developments (Pty) Ltd

BEING ONE OF THE OLDEST property development companies doesn’t mean resting on its laurels for this South African property

developer as it takes on increasingly larger projects and continues to grow its extensive network of contacts.

The company has just finished the state-of-the-art Queen Mamohato Memorial hospital in Lesotho, which was recently named by KPMG as one of six African infrastructure projects on its list of the 100 “most innovative and inspiring” urban infrastructure projects in the world.

RPP Developments has also recently built a 34,000sqm shopping mall in the Free State town of Welkom, as well as making headway on one its biggest projects to date.

The planned shopping centre in Bethlehem, also in the Free State, has a 26,000sqm first phase currently

under construction and is scheduled to open in March 2013. The second phase, an additional 6,000sqm, will be starting in January and opening eight months later.

“Throughout our history, we have completed a

Goldfields Mall, Welkom Entrance

RPP Developments page 5Property company’s biggest development

Authorised financial services and registered credit provider (NCRCP15)The Standard Bank of South Africa Limited (Reg. No. 1962/000738/06). SBSA 90606 07/12

Moving Forward is a trademark of The Standard Bank of South Africa Limited

Corporate and Investment Banking Our experience shows how involved we’ve been in buildingthe real estate market. This foundation allows us to provide

you with the best possible financial solutions for yourreal estate needs. www.standardbank.co.za/cib

Moving ForwardTM

in the real estate market.

OUR EXPERIENCEhas laid a

Grey Owl Village Shopping Centre - Midstream

substantial number of developments of varying size and class,” says Jock Seeliger, RPP’s Managing Director. “Everything from office blocks and corporate headquarters, to airport warehousing and even a residential town development; but Bethlehem is one of the largest to date.”

GREATEST ASSET

The key to securing these significant projects, says Seeliger, is RPP’s greatest asset, its people. Starting with the company’s shareholders, whose members

RPP Developments page 7

Rondebosch Village

possess extensive skills and knowledge of the property industry, through to the combination of veteran staff and a young, dynamic workforce, to the contractors the company utilises on a regular basis. RPP relies heavily on the relationships it has forged.

“The property industry in South Africa is relatively small. Everyone is aware of everyone else,” Seeliger says. “The reputation we have is definitely a contributing factor to the continuing success of the business, not just with the parties


with whom we develop, but also banks, consultants and state departments.”

The company particularly focuses on and takes pride in, the reputation it has with its contractors, having worked closely with many of them through the years, including Grinaker LTA, Gothic Construction, Edilcon, Wilson Bailey and Iguana Construction. RPP also frequently draws on the expertise of local architects, such as Boogertman & Partners, DBM Architects and Messaris Wapenaar, as well as appointing external quantity surveyors and engineers, such as O’Mahoney Peel Rowney.

AVENG AFRICA

RPP enjoys the benefits of being associated with Aveng Africa, the largest listed construction company in South Africa, whose Group has various divisions

Boogertman + Partners Industry: Architecture Services: > Retail> Head Offices> Motor > Sports > leisure > Transportation Locations: > Johannesburg > Pretoria > Cape Town > Durban

SUPPLIER STATS

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Rondebosch Village

page 11RPP Developments Property company’s biggest development

including building and civil works, manufacturing and steel, as well as holding a minority interest in RPP itself.

The mutually beneficial affiliation works well, with RPP sourcing work for the Aveng Group, and the Group lending its support on the construction side.

Goldfields Mall

Edilcon Construction Industry: Building & Construction Services: Commercial, Institutional warehouses

SUPPLIER STATS

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Iguana Projects Ltd Industry: Building & Construction Services: Residential, Commercial project management

SUPPLIER STATS

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- Commercial and Institutional Building Construction

- Industrial buildings and warehouses

- Nonresidential construction

Edilcon Construction (Pty) Ltd is proud to have worked alongside RPP Developments in the completion of several building projects

[email protected]

www.edilcon.co.zaPhone: 27 11 907 9410 | Fax: 27 11 907 9268

Iguana Projects Ltd • Tel: 011 794 2507 • Fax: 011 794 3975 • Email: [email protected]

PROPERTY DEVELOPMENT - BUILDING CONSTRUCTION - PROJECT MANAGEMENT

Proud to be associated with RPP Developments


“It worked exceptionally well for the hospital in Lesotho,” Seeliger says. “Due to the size of the project, we needed a company to put up the necessary guarantees, handle the cross-border logistics and manage the large amount of resources required.”

GROWTH AREAS

RPP aims to always have a mix of un-zoned, raw land, which may commonly be secured more cheaply, with land in currently developed areas that has a proven demand with tenants. The Bethlehem site for example, already has many of the major retail chains as tenants, allowing competitors such as Pick n Pay, ShopRite, Game and various fashion retailers to co-exist under the same roof.

The company is also increasing its focus on the purchase of existing buildings that have the potential to be refurbished and have their value raised. This is aided

Providing a high quality hands on service to discerning clients

Tel: +27 11 325 0610 | Fax: +27 11 325 0743

[email protected]

CONSULTING QUANTITY SURVEYORS

2900 lawyers / 42 offices / 6 continents / one visionnortonrose.com

Real estate law with deep foundations

Both norton Rose and Rpp developments have been building strong relationships in the property sector for over 30 years – and we’re proud of our long standing history with Rpp developments on projects from inception to realisation. To find out more about the strength and breadth of all our legal services in africa, visit our website.

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Green Hill Village, Lynnwood Road

by South Africa’s progressively unique economy that benefits from meaningful inflation, where acquiring an existing building at the historic cost and investing in restoration may still work out cheaper than the replacement cost.

“We are always on the lookout for where we think the market will be heading,” says Seeliger. “There are a number of vacancies in the office market for example,

so until the existing spaces are taken up there will be fewer new complexes developed.

“The opportunity lies in predicting when you think the market is going to turn because it takes 12 months to erect an office block, for instance. If you’re too late, the rent may have

spiked and be on the downturn, so timing is crucial.” DIVERSE HISTORY

Established in 1977, RPP was originally involved in retail development, but soon gravitated towards other sectors such as commercial, industrial, office, corporate and residential development. The company develops for third-party investors, financial institutions, long-term investors such as insurance companies and pension funds and of late, has started to develop properties for the listed property sector as well.

RPP also develops properties for its own investment portfolio, which it manages through its property

WE HAVE MORE OPPORTUNITIES THAN WE CAN HANDLE, SO WE HAVE

TO CAREFULLY EVALUATE AND SCREEN THEM BEFORE MAKING A DECISION

JOCK SEELIGER, MANAGING DIRECTOR, RPP DEVELOPMENTS

Rondebosch Village


management division, along with a property portfolio for a pension fund.

“We have conducted many joint ventures over the years, which is quite popular in South Africa,” Seeliger says. “This provides us with a host of opportunities, for example the Lesotho hospital was completed for Netcare, the largest provider of private healthcare in both South Africa and the UK. Bethlehem is being developed in partnership with Investec Property (Pty) Ltd.”

FUTURE EXPANSION

Though currently involved in developing a shopping centre in the capital of Mozambique, Maputo, RPP is very cautious about expanding further into Southern Africa; more aware than most of the inherent risks involved with such a move thanks to its many years of operating in the region.

“We don’t focus too much on growth. We focus more on what is the right opportunity,” says Seeliger. “We


Lyndhurst BMW showroom

Industry: Property development

Founded: 1977

Headquarters: Randburg, SA

Key People/Titles: Jock Seeliger, Managing Director

Products: Commercial, industrial, office parks, corporate headquarters, retail, motor and residential

Revenue: R350 million

Employees: 30

Website: ww.rpp.co.za

don’t enter a project without the proper research and an appropriate exit strategy; we certainly wouldn’t develop something for the wrong reasons, such as purely seeking growth. “We are always very busy. In fact, we have more opportunities than we can handle, so we have to carefully evaluate and screen them before making a decision.”

Free from the constricting aspirations of constant growth, RPP can focus on what it does best, developing properties, building up its portfolio and becoming increasingly involved in social projects. To date the company has been involved in developing low-cost housing on the outskirts of Johannesburg and a facility for the physically disabled, as well as contributing to a variety of charities.

“Our people enjoy what we do. We aren’t purely goal driven and we try to have fun while we’re working,” concludes Seeliger. “We’re a close team who work well together in an industry that is both challenging and exciting.” afbr

The company encourages its staff to have fun while working

page 21

STATISTICS

RPP Developments Property company’s biggest development

RPP DevelopmentsRPP House, The Braes Office Park, 193 Bryanston Drive, Bryanston 2191

Tel: +27 (011) 244 8000 | Fax: +27 (011) 463 9095 [email protected] | www.rpp.co.za

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