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PROPERTYR E V I E W

August 2016

South African P

roperty Review

Innovation, Journalism &

Excellence Aw

ards and Post-Convention R

eport Back

A

ugust 2016

Norbert SasseSAPOA’s fi rst Lifetime Achievement Award Recipient

Meet the SAPOA Executive Board

The SAPOA 50th Anniversary Convention & Property Exhibition roundup

Winners of the 2016 SAPOA Property Development Awards for Innovative Excellence

50 SOUTH AFRICAN PROPERTY REVIEW

SAPOA events

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PROPERTYR E V I E W

August 2016

2 From the CEO4 From the Editor’s desk6 President’s speech Taking up the presidential reins8 SAPOA partners GladAfrica partners with SAPOA11 Interview GladAfrica Group’s founder and Executive

Chairman Noel Mashaba12 MOU signing Forging partnerships through collective collaboration14 Industry news19 Education, training and development

SAPOA-Wits partnership in executive education20 Planning and development Connecting South Africans to their cities22 Legal update Competition Commission’s market inquiry into the

grocery retail sector24 Lifetime Achievement Award26 SAPOA Board29 Report back Annual Convention CEO’s dinner30 City tour Johannesburg32 Report back SAPOA 50th Anniversary Convention

and Property Exhibition42 Property Development Awards for Innovative Excellence

Building bricks bound with beauty 49 SAPOA Journalism Awards for Excellence50 Exhibitor stand winners54 Eye on the world New Zealand61 Events62 Frankly speaking Value Added!63 What’s on Upcoming events64 Off the wall Broadcasting an iconic image

ON THE COVERReporting back on SAPOA’s 50th Anniversary Convention and Property Exhibition

Photograph by Mark Pettipher

Editor in Chief Neil Gopal Editorial Adviser Jane Padayachee Managing Editor Mark Pettipher Copy Editor Ania Rokita Production Manager Dalene van Niekerk Designers Wade Hunkin, Eugene Jonck Sales Robbie Pansegrauw e: [email protected]; Riëtte Stevens e: [email protected] Finance Susan du Toit

Contributors Anne Schau� er, CBRE New Zealand, Collier’s International New Zealand, Maud Nale, Lekgolo Mayatula, Mumtaz Moola, Thandiwe January-McLean, Wits Commercial Enterpriser

Photographers Jabu Nkosi, Loïc Lagarde/Flickr.com, Val AdamsonDISCLAIMER: 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

FOR EDITORIAL ENQUIRIES, email [email protected]

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e: [email protected]

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contents


PROPERTYR E V I E W

August 2016

South African P

roperty Review

Innovation, Journalism &

Excellence Aw

ards and Post-Convention R

eport Back

August 2016

Norbert SasseSAPOA’s fi rst Lifetime Achievement Award Recipient

Meet the SAPOA Executive Board

The SAPOA 50th Anniversary Convention & Property Exhibition roundup

Winners of the 2016 SAPOA Property Development Awards for Innovative Excellence


In my second year as Chair of the International Regional Council (IRC), it has been an honour

to represent the South African commercial and industrial property industry on a global platform, especially one as influential as BOMA. The role provides an exceptional opportunity to learn from colleagues around the globe, in addition to sharing our knowledge and experience from South Africa, in ensuring that we build and strengthen bi-lateral relations between international organisations and BOMA International.

The International Council consists of real estate associations from around the world that have affiliated with BOMA International. Its mission is to advance global cooperation within the world community of commercial real estate by creating a more informed marketplace. It is specifically tasked with facilitating more robust engagement between the international affiliates to share not only global best practice, but also information and knowledge resources. To achieve this goal, it provides opportunities for high-level networking to exchange information, best practices, research, standards, education and training, and public policy strategies, and to facilitate business opportunities among members.

Second, and more important to the mission of the Committee, is our desire to have committee members engage in multi-lateral endeavours that would be of benefit to either the group at large or large segments of the Committee.

These items would include, but would not be limited to: 1. Developing joint education programmes

or entering an agreement to offer the programmes of others;

2. Sharing emerging trend information; 3. Contributing to quarterly newsletters; 4. Benchmarking expertise; 5. Developing standards and international

codes information; 6. Selling each other’s publications;

7. Sharing best-practices ideas; and 8. Providing networking opportunities.

We would appreciate hearing of any additional items you might have to add to this list.

My experience has been amazing in that I have met and dealt with a huge number of international affiliates and this has assisted in building relationships and creating networks for SAPOA members to use. For example, SAPOA is an active participant in the International Property Measurement Standards Coalition, a group of 47 real estate associations from around the globe that have come together to develop and implement a global standard for measuring property. My role also involves the facilitation of the workshops. None of this would be possible without the assistance of BOMA staff and management, with particular support from Lisa Prats, who is Vice President of Marketing and International Affairs at BOMA International.

As an organisation, BOMA’s mission is to advance a vibrant commercial real estate industry through advocacy, influence, and knowledge. This aligns closely with SAPOA’s own strategic goals.

This year, BOMA also welcomed a new International Chair – Brian Harnetiaux, who served as Chair Elect last year and was sworn in as the new BOMA International Chair at the Toby Awards. As Chair of the IRC and Chief Executive Officer of SAPOA, I’m delighted that

the many years of service he has given the organisation have been rewarded in this way. We wish him everything of the best for his tenure and look forward to strengthening the relationship between BOMA and SAPOA, which spans about 44 years.

Our newly elected SAPOA President Nomzamo Radebe was part of the esteemed panel of women who gathered to discuss how to bridge the confidence gap, mentoring, risk-taking and more at the BOMA International Women in Commercial Real Estate Breakfast. Confidence is something that many women professionals struggle with, so it was a topic that piqued the interest of the 225 attendees.

There were numerous speakers at the conference addressing several issues. Among them was renowned journalist David Gregory, former moderator of NBC News’ Meet the Press and now a political analyst for CNN, sharing his thoughts on the current political climate and how we got here.

It has lead to what Gregory called a “strange year in which the ultimate insider is running against the ultimate outsider”. “It’s refreshing, dangerous and entertaining,” he said. “We’re at a crossroads.” But despite political turmoil, he believes the US will remain strong and resilient. “I am still hopeful about our future.”

Neil Gopal, CEO

BOMA’s annual conference a monumental success

With more than 3 000 attendees and 450 trade-show exhibits, this year’s Building Owners and Managers Association (BOMA) International Conference & Expo was one of the best yet. Industry professionals

from around the globe gathered in Washington DC for best-in-class education, unmatched networking opportunities and solutions to meet every operational challenge and enhance asset performance

from the CEO

FROM LEFT Neil Gopal, Nomzamo Radebe and BOMA International Chair Brian Harnetiaux

91SOUTH AFRICAN PROPERTY REVIEW

SAPOA events

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We are pleased to report back on another successful Convention, its awards and

SAPOA’s new people. SAPOA’s new President Nomzamo Radebe is known to many for her leadership of JHI and for steering SAPOA’s education policy through the SAPOA Bursary Fund. She is SAPOA’s fourth female President and � rst black female President. We also welcome two new members to the SAPOA Board – Nnema Byrd of Stanlib and Pieter Engelbrecht of Growthpoint Properties. Succeeding Radebe as President Elect, Peter Levett of Old Mutual Properties now steps into the limelight.

SAPOA’s 50th Anniversary Convention and Property Exhibition’s amazing opening extravaganza enthralled us with the transition of the old SAPOA logo into its new look – truly a logo and brand built to live on long into the next 50 years. This unforgettable Convention culminated in a spectacular gala dinner – all we needed was a director’s call of “Lights, camera, action” to make it an event worth broadcasting.

Our thanks once again to our sponsors – Joburg Property Company as this year’s Platinum Sponsor, GladAfrica Holdings (Pty) Ltd as Gold Sponsor, and to our Silver Sponsors Tongaat Hulett Developments, RMS Remote Metering Solutions, Fortress Income Fund Limited and Nedbank. Our corporate sponsors included Schindler (notebooks and pens), JHI Properties (Journalism Awards), Growthpoint Properties (the Golf Halfway House), AECOM (mini programme) and Bidvest Bank (the internet cafe). Last but not least, we’d like to thank our supporting sponsors: Standard Bank, Operation Hydrate and PwC.

After the Convention, SAPOA CEO Neil Gopal and President Radebe went to the US to represent the South African property industry at the annual BOMA Convention. The ideas and networking opportunities will no doubt � nd their way into SAPOA’s events and policies in the coming months.

This month is Women’s Month, and we’re celebrating their involvement in the property industry with our annual Women in Property supplement. This year sees a growing number of participating companies – we welcome them to our publication and thank them for their support.

I have been following with wonderment a project launched in 2003: the progress of Solar Impulse 2’s solar-powered � ight around the world. During our Convention (and about 71 hours after taking o� from New York), Solar Impulse 2 made history by landing in Seville, Spain on 23 June – the world’s � rst solo transatlantic crossing in a solar airplane. Bertrand Piccard, the project’s initiator, joined famous long-distance aviators Charles Lindbergh, Amy Johnson and Amelia Earhart in the US National Aviation Hall of Fame. Project co-founder and CEO André Borschberg started the epic journey on 9 March 2015, piloting the � rst 13-hour leg from Abu Dhabi in the United Arab Emirates to Muscat in Oman.

Piccard and Borschberg’s message is clear: demonstrate the potential clean technologies have for energy saving and renewable energy.

The two pilots have been alternating legs of the plane’s east-west journey. In June 2015, Borschberg broke the � rst of many records. Taking o� from Nagoya in Japan, he � ew for four days, 21 hours and 52 minutes across the North Paci� c to land in Hawaii, breaking the world’s record for the longest continuous solar � ight. The � nal leg of the journey will take the aircraft back to Abu Dhabi in an estimated 120 hours. Could there be another world record in the making?

In the September edition, we will explore new developments in retail and construction of shopping centres, and we’ll delve further into green technology and the environment in the November issue. Till then, keep educating – and keep thinking green!

Mark Pettipher, Managing Editor

Another celebration over, and solar power enters the annals of historyThere was much talk at this year’s Convention about the changing economy, the UK’s exit from the European Union (EU), water shortages, water purifi cation and the preservation of our dams. And by the second week of August, the municipal elections will have taken place, potentially heralding local government changes as well

from the Editor’s desk


SAPOA events


President’s speech

Taking up the presidential reinsAfter the fi rst day’s enthralling opening ceremony and being entertained by tongue-in-cheek political satire and enlightening discussions, day two saw Nomzamo Radebe, Chief Executive Offi cer of JHI Properties, take to the podium to give an emotionally charged inaugural speech

After thanking sponsors, VIPs, delegates, speakers and guests, Radebe, SAPOA’s

fourth female (� rst black female) President said, “I stand before you, a Zulu girl from eSikhawini, a township in KwaZulu-Natal”, alluding to her humble upbringing. “Where I come from, property is not known as a career. I am pleased to have been lured to join the property sector many moons ago. Like many of you, I was bitten by the property bug and simply love being part of this industry.

“I feel very humbled to have been nominated by my peers, and I stand before you today as the President of SAPOA as it proudly celebrates its 50th Anniversary.

“It feels good. I am excited – and let me assure you, I take this new responsibility very seriously. I am completely committed to upholding the high standards that members of SAPOA have become accustomed to.

“Property touches the life of every South African. It is a unique sector. It is also a complex and multi-disciplinary industry. It has its own set of dynamics; sometimes, it even has its own language.

“The real estate sector is a dynamic and valuable contributor to our economy. It is constantly evolving and becoming more sophisticated – especially now, in tough economic times, when we are compelled to � nd new ways to make property investment continue to outperform other investment classes.

“Property is among the most exciting and innovative industries in South Africa, across the continent and around the globe.”

SAPOA an internationally recognised association“SAPOA is a nationally accepted and internationally recognised leading property association. Its mission is to actively and responsibly represent, promote and protect the interests of its members’ commercial activities within the property industry.

“An important part of its mandate is to promote relevant education, provide meaningful research, be the advocates for our industry and be thought leaders.

“I am very proud of what SAPOA and its leadership has achieved in ensuring that it ful� ls its mandate.”

Passionate about education“I feel very strongly that education should continue to have a sharp focus in our current environment and industry. Education is life-changing and the quality of our education drives the quality of our sector for the future.

“The educational e� orts of SAPOA are aimed at:



● Increasing knowledge and skills of the property industry among employees within the industry;

● Raising the employability and competence of practitioners and professionals in the industry; and

● Affirming property as a career.

“SAPOA provides continued growth and development opportunities to its members and the property industry at large by offering various educational programmes through its collaboration with leading universities across the country.

“SAPOA has chosen the University of the Witwatersrand (Wits) as a strategic partner to provide the industry with a one-stop service for all real estate courses. This is an exciting new initiative in which I will be personally involved, and I am positive that it will yield phenomenal results for the industry.

“The SAPOA Bursary Fund is another tool that tackles the skills shortage in the commercial property industry and in our country at large. This initiative is a passion for me, having been a bursary student myself more than 20 years ago.

“As the Chairperson of the Bursary Fund since its inception, I have been fortunate to see the 33 students that it has funded over the years succeed and prosper in their own right. Of the 33 students funded, only two failed. In May 2015, the Services SETA partnered with SAPOA, contributing a R40-million grant to sponsor 100 students across South Africa with bursaries for a four-year degree in property-related studies. With the addition of the 55 bursary students funded by this grant, the compliment of students being sponsored by SAPOA has now increased to 88. We continue to aspire to reach the targeted number of 100 students.

“‘Education is the most powerful weapon you can use to change your world.’ These are the words of Nelson Mandela and, with its education programmes, SAPOA strives to build a better world and transform our industry.”

Transforming the property sector“The transformation of the property sector is essential for its sustainability. We are committed to the principles of social and economic transformation and empowerment on all levels. SAPOA will continue to pursue these objectives, work with industry partners and support our members in achieving greater transformation.

“The property industry needs more transformation, as is very much the case with other economic sectors in our country.

I feel positive that there is a greater awareness now, compared to the past, that the industry should be inclusive and open to previously disadvantaged individuals and communities.

“I am pleased that we have the Property Sector Codes in place. With the delays on the alignment of the Property Sector Codes, I encourage us all to remain committed to the objectives and the intended spirit of transformation of our industry.

“Being progressive requires the ability to think beyond the impossible and outside the obvious. I hope that we can all take these wise words to heart and put them into action.”

Advocacy pivotal to SAPOA“Advocacy is pivotal for SAPOA as it provides targeted participation in legislative development that will affect our members directly. It also gives SAPOA an authoritative voice that participates in matters relating to the laws that govern South Africa’s built environment.

“In 2015, SAPOA strengthened its conversations with the private and public sector. We participated in several engagement events with the departments of Public Works, Human Settlements and Cooperative Governance, as well as the National Treasury, among others.

“Through advocacy, SAPOA aims to influence decisions within political, economic and social systems and institutions where the interests of our members and the economy as a whole are impacted. This will be a continued focus during my tenure as President, with the goal for SAPOA to form a closer liaison with some of the important regulatory bodies, such as the Estate Agency Affairs Board and others.

“Advocacy goes hand in hand with networking.”

Networking an integral part of SAPOA’s communications“We are thrilled to announce that we have secured a R6-million three-year deal with GladAfrica for the SAPOA Convention,

as the Platinum Sponsors and sponsors of our ‘Meet the Mayor’ dinners.

“Almost 1 400 delegates are attending this landmark conference. This affirms the high esteem in which our members hold the Convention and the value they continue to derive from this gathering.

“SAPOA is not only recognised in South Africa. The acknowledgement of our work and influence extends beyond our borders. Thus SAPOA attends and participates in externally hosted industry events that are of value to our members.”

Attendance at BOMA“In 2015, we took part in the Building Owners and Managers Association (BOMA) international conference, where SAPOA CEO Neil Gopal is Chairperson of the International Regional Council. The International Regional Council consists of real estate associations from around the world that are affiliated with BOMA International.

“The mission of the International Council is to advance global cooperation within the world community of commercial real estate by creating a more informed marketplace.

“Neil and I will be going to Washington to again participate in the BOMA Convention. This a prime opportunity to continue to build awareness of South African REITs as well as facilitate any introductory discussions our members may require in the US markets. Opening doors for our members in the US markets, and other markets where we have relationships, is crucial to us.”

Valued contributions“For their valued contributions and collaboration, I would like to thank SAPOA’s directors for their tremendous support on the board, and for their generous contribution at committee level too. It is also important to acknowledge the valuable work performed through SAPOA’s 14 committees, led by the National Councillors. This work is crucial to the success of the association and the fulfilment of its mandate. Thank you all.

“As leadership guru Warren Bennis once said, ‘Leadership is the capacity to translate vision into reality.’

“It is a remarkable achievement for SAPOA to celebrate its 50th anniversary. Since its inception, SAPOA has grown in size, esteem and influence. Today, it leads the commercial property industry with a trusted membership of about 1 200 members. To celebrate our 50th anniversary, SAPOA has introduced a modern new logo. We are proud of this new look and feel. It is fresh, bold and crisp!”

“We are thrilled to announce

that we have secured a

R6-million, three-year deal with

GladAfrica for the SAPOA

Convention as the Platinum

Sponsors and our ‘Meet the

Mayor’ dinners.



Strong future vision“Building on its solid foundation, SAPOA has a strong vision for the future.

It aspires to: ● Continue to be recognised as

an authority in specialised fields; ● Be a trusted source of information

and research in property; ● Constantly evolve and innovate

as a dynamic organisation; ● Promote and enable the transformation

of the property industry; and ● Always unwaveringly serve its members.

“I would like to thank Neil Gopal and his team for the great work that they do in running SAPOA as a highly professional organisation that always puts the interests of its members above all else.

“I would also like to compliment SAPOA for once again organising a successful Convention. The work that goes into this Convention is astounding. It involves long hours and the ability to perform under high pressure. Not everyone can do this job – it takes very special people. Thank you all.

“I look forward to the year ahead as President of SAPOA with excitement. The full responsibility of what lies ahead weighs heavily on my thoughts but I am confident it will be a phenomenal year.

“Last but certainly not least, I would like to recognise and thank my mother, who has come to join us this morning.

“Mom, I thank you for all the support and care that you have given me over the years. I would not be standing here if it weren’t for the sacrifices that you have made for me.

“Thank you Mom. ‘Whatever good things we build end up building us.’ These words, spoken by entrepreneur and motivator Jim Rohn, are particularly true of our industry, our country and our people. Together, we can build great things.”

Nomzamo Radebe, SAPOA President

I look forward to the year ahead

as President of SAPOA with

excitement. The full

responsibility of what lies ahead

weighs heavily on my thoughts,

but I am confident it will be a

phenomenal year. GladAfrica partners with SAPOA


SAPOA is pleased to announce that leading engineering consulting and project

management company GladAfrica will be the exclusive main sponsor of the SAPOA Annual Convention & Property Exhibition for the next three years.

The sponsorship, which will commence in 2017, will also include the three-times-a-year Meet the Mayor dinners and the Methods of Measuring Floor Areas book.

The partnership with SAPOA will serve to contribute more meaningfully to the property development landscape of the country by, among other initiatives, creating synergies and collaborations with existing members.

SAPOA is the representative body and official voice of the commercial and industrial property industry in South Africa. It aims to represent, protect and advance its members’ commercial and industrial property interests within the property industry in terms of ownership, management and development.

GladAfrica brings to the industry a wealth of knowledge through its highly proficient professionals who are passionate about creating and delivering viable and sustainable built environments. Combining knowledge,

skills and expertise with its partners, GladAfrica engineers business solutions for the public and private sector at corporate and technical level. Because of the company’s holistic understanding of the infrastructure development framework, GladAfrica is well placed and thoroughly equipped to provide clients with strategic solutions.

According to Kulani Lebese, Group Chief Executive Officer of GladAfrica, “In the property sector, consulting services play an important role in fuelling growth, adding jobs and building communities.” The partnership is part of GladAfrica’s ongoing commitment to providing the property sector with skills and expertise around the country.

SAPOA CEO Neil Gopal says his organisation looks forward to working with GladAfrica. “There’s a strong alignment between us and our commitment to promoting high-impact property solutions throughout South Africa,” he says. GladAfrica will continue to actively support SAPOA’s strategic events, which are held throughout the year.

The SAPOA Annual Convention & Property Exhibition 217 will be held from 20 to 22 June 2017 at the Cape Town International Convention Centre.

GladAfrica Executive Chairman Mr Noel Mashaba with Neil Gopal SAPOA CEO

SAPOA partners


SAPOA events


SAPOA events

The dawn of a new era for the City of Johannesburg and its people

The Office Space Optimisation (OSO) Programme is a flagship

programme of Joburg Property Company (JPC), an agency of the City

of Johannesburg (CoJ) that aims to leverage spatial development to

provide for this exceptional growth, stimulate economic activity and

accelerate service delivery.


SAPOA events

OFFICE SPACEOPTIMISATIONBuilding our FutureUniting our City

R12 billionTo be spent on

direct construction activities

900 000 m2

Space to be developed

±R39 billionAn induced

investment output

100 000Creation of

temporary jobs

±10% – 15%Increase in

operational efficiency for enhanced service

delivery upon completion

±R35 billion in ±20 years

CoJ to own debt free accommodation

Diepsloot

Wynberg

Fourways

Midrand

Kya Sand

p

Constantia Kloof

Northgate

Sandton

Southgate

Diepkloof

City Deep

Johannesburg CBD

Protea Glen

Roodepoort

Soweto

Dobsonville

Lenasia

Ivory Park

Orange Farm

Ennerdale

D

Core

F

C

G

A

EB

SOUTH AFRICAN PROPERTY REVIEW

interview

We chat to GladAfrica Group’s founder and Executive Chairman Noel Mashaba about his vision for the organisation and the announcement of the three-year Platinum Sponsorship with SAPOA

GladAfrica Group is a multi-disciplinary built-environment engineering consultancy and project management company

Q What does your role as Executive Chairman of GladAfrica Group entail? As Executive Chairman, I provide leadership, chair the board, participate in strategy formulation and provide support to the management team. The management structure has the board, which is responsible for policy formulation, direction and strategy. It consists of myself as the Chairman, four non-executive directors, the Group CEO, Group CFO, three MDs (heads of business units) and the secretary. The GCEO has an EXCO who looks at the day-to-day running of the business.

Q In your opinion, what role do engineering consulting services play within the property sector, and how do you ensure that the work offered by GladAfrica maintains the same quality throughout the country?I think engineering consulting services play a huge role, with great potential to play an even bigger role. Consultants provide the necessary details in any development, and offer insight and professional clarity to developers.

All GladAfrica Group companies are ISO 9001:2008 certified by SANAS for Quality Management Systems. We have an in-house quality department that constantly monitors our quality systems.

Q GladAfrica Group has extensive experience in the public and private sector. What are some of the major projects that you have been involved with, and how has such exposure benefited the organisation?What characterises GladAfrica as a group is the importance of the projects the clients have entrusted us with. The group currently has more than 100 active projects in and around South Africa. We are currently active in sectors such as healthcare, education, financial services, retail, commercial property, infrastructure and transport.

Some of the projects include: ● Project managing Telkom’s infrastructure

when it needed to break into the cellphone-network business

● Project management support for infrastructure monitoring and for the Department of Transport during the2010 World Cup Infrastructure roll-out.

We’re currently working on the following: ● The Bus Rapid Transit System (BRT) for

Mangaung Metropolitan Municipalityand Rustenburg Municipality

● The FNB 5-Star Green Star Building (FNB call centre)

● Managing the developmentof Mpumalanga University.

Q GladAfrica Group recentlyannounced the acquisition of Ariya Project Managers. What was the strategy behind the selection?Ariya had a very impressive profile, a good brand and a great culture. The acquisition also enables GladAfrica to expand its project management footprint and add significant value to its already comprehensive offering of customised project management services. The move also created a uniquely African-born organisation with the expertise and capacity to meet market expectations in the built environment locally and in Africa.

Q GladAfrica Group has just signed a major deal as exclusive main sponsor of SAPOA’s annual Convention for the next three years. What drove the decision, and what does this partnership signify?Positioning and alignment are very important in business. GladAfrica as a group is involved in a lot of community development, enterprise development and work done by the GladAfrica Foundation. SAPOA is the voice of commercial property, and is also involved in a lot of community and sector development. We found SAPOA to be a perfect brand match.

For more information, visit www.gladafrica.com


By Maud Nale Photograph by Jabu Nkosi

MOU signing


Forging partnerships through collective collaboration

The intention of the strategic partnership between SAPOA and Consulting

Engineers South Africa (CESA) is to develop a mutually bene� cial relationship that would serve the interest of all members as well as those of the community.

As the “voice of consulting engineering”, CESA is a voluntary association of � rms of consulting engineers that has been in existence for 64 years and has more than 500 member � rms in South Africa. The primary business o� erings of its members relate to independent technology-based intellectual services in the built, engineering, human and natural environment.

Recognised by the Engineering Council of South Africa as a voluntary association, CESA represents its members as the body that promotes their joint interests both locally and internationally. With regards to the latter, it is a member association of both the Group of African Member Associations and the International

Federation of Consulting Engineers based in Geneva, Switzerland.

Both SAPOA and CESA recognise the need to collaborate in order to foster a common vision and goal that will best serve their respective members.

“We sign a number of Memoranda of Understanding with various organisations, and are pleased to be collaborating and developing a mutually bene� cial relationship with such an important entity such as CESA,” says SAPOA Chief Executive O� cer Neil Gopal. “About 30% of our members are professionals, so there are certain cross-bene� ts on both sides. We are opening up a communication channel between the respective memberships and the organisations, and sharing other initiatives that we feel our members and the country will bene� t from.”

“This MoU signing signi� es a vehicle whereby two industry organisations with a common interest, and good and ethical

business practices can keep each other and our members honest about the interactions that they have with one another,” says Chris Campbell, Chief Executive O� cer of CESA. “Our organisation seeks to develop these partnerships with various public and private entities with the aim of constructively resolving issues and areas of discomfort, as opposed to simply being critical and not solutions-orientated. Property development professionals have always enjoyed a good partnership with consulting engineering professionals, and we need to make sure this continues well into the future.”

SAPOA has signed several such memoranda with various organisations. These working relationships, according to Gopal, are important within the property industry because they not only bene� t SAPOA members, but also enable combined strategy and the pooling of resources.

SAPOA recently signed a Memorandum of Understanding with Consulting Engineers South Africa

By Maud Nale

Chris Campbell CESA CEO and SAPOA CEO Neil Gopal.


industry news

The South African property sector is worth R5,8-trillion,

according to results from the latest study undertaken to determine its size. The Property Sector Charter Council recently released reviewed market size estimation which provides a snapshot of the South African property sector using figures for the financial year 2014/2015.

It reveals the sector’s size at R5,3-trillion, with a further R520- billion zoned for commercial and residential development.

The study was compiled by MSCI. It was and remains the first and only research of its kind in the country, and its significance is far-reaching.

The report builds on baseline research that measured the size of the property market in South Africa at a massive R4,9-trillion at the end of 2010. It shows a meaningful increase of nearly R1-trillion in four years.

The study also supplements the Property Sector Charter Council’s SA Property Sector

Economic Impact Report that estimates the property sector’s contribution to GDP at R191,4- billion in 2012 in terms of annual income and expenditure flows generated by the sector, as well as a R46,5-billion contribution to the fiscus.

The research is part of a larger project by the Council, providing a point of departure against which the charter’s various transformation imperatives can be assessed.

“For a sector this big and this important, it is crucial to have a hub of knowledge to consolidate information to support a common and consistent understanding of the sector,” says Chief Executive Officer of the Property Sector Charter Council Portia Tau-Sekati.

By regularly updating this research, the Council creates a measure of the effect of property cycles on the sector’s value, which can be significant.

Commercial property carries a value of about R1,3-trillion, up from R780-billion, with almost R790-billion held by corporates, R300-billion held by REITs, R130- billion by unlisted funds, and R50-billion by life/pension funds. Of this, retail property has the highest value at R534-billion

(R340-billion in 2012), followed by office properties at R357-billion (R228-billion) and industrial properties at R281- billion (R187 billion). Hotels and other property account for R94- billion in value (R25-billion).

A key finding shows that formal residential property still accounts for nearly 75% of property owned in South Africa, and grew from an estimated R3-trillion at the end of 2010 to R3,9-trillion. For the first time, informal residential property, was considered, although it has no value – it was quantified by the number of households provided by the Department of Human Settlements.

The public sector contributed a total of R237-billion, of which about R102- billion is estimated to be in the hands of the Department of Public Works, R66-billion is held by South Africa’s 19 largest state-owned enterprises, and R69-billion is owned by metros and selected local municipalities.

Through this research, the Property Sector Charter Council continues to provide an updated scope of the sector and create a more accurate overview of the local economy.

SA property market grows to R5,8-trillion

Emira successfully upgrades its Gauteng property assets for growth

Portia Tau-Sekati, CEO of the Property Sector Charter Council

Emira Property Fund is investing in the upgrade, redevelopment

and expansion of its properties in Gauteng as part of its ongoing national programme of enhancing its real estate assets.

“We’re investing strategically and recycling capital to strengthen our assets,” says Emira Chief Executive Officer Geoff Jennett. “This improves the quality and attractiveness of our portfolio and creates value that extends beyond our assets.”

Emira’s assets comprise 146 properties valued at R13-billion. Emira is a diversified mid-cap REIT invested in a quality balanced portfolio of office, retail and industrial properties. It is internationally diversified through its 4,9% direct holding in ASX-listed GOZ, valued at R942,7-million. Combined, its total assets are worth R14-billion.

The JSE-listed REIT’s recent R65-million upgrade of five commercial buildings in

Kramerville has injected them with new life and boosted the resurgence of this popular creative hub.

Emira had planned to sell the 1980s-built B-grade offices, previously known as Sandgate Office Park, which were struggling to find tenants. Yet with the surrounding area experiencing a revival of interest as a design and decor quarter, Emira saw the potential to refurbish and re-brand these properties into

its classy and contemporary new showroom space at Kramerville Corner.

“The benefits of this upgrade have been tremendous,” says Jennett. “Kramerville Corner is significantly let to premium tenants. The rentals achieved have doubled, the average lease expiry has improved fourfold and the value of the property has increased beyond our investment in the project. It is yield-enhancing for Emira.”


industry news

The new tenants include Bakos Brothers, Design Plus Interiors, St Leger & Viney, Collaro Designs, Gri� ths & Gri� ths Fine Furniture, Nicci Boutiques, Pierre Cronje Fine Furniture, Paco and Illuso.

The big change achieved with the refurbishment was the increase of the showroom space from 32% of the gross lettable area to 84%. The revamp also added 1 375m² of gross lettable area, including a Gorge Kramerville co� ee shop, which is a welcome addition to the amenities in the precinct.

The buildings were given glazed shopfronts and earthy natural � nishes. Their chunky structural steel and faux-timber elements, expressed in high-quality workmanship, have given them a trendy edge that resonates with the creative nature of the area.

Emira also looked beyond its buildings to the surrounding urban fabric. It added raised and

covered walkways, and realigned the main street and transformed it into an inviting pedestrian-friendly boulevard with carefully chosen street furniture, signage and parking layouts. The new design also makes the buildings’ operations more e� cient, with lower-energy lighting and air conditioning throughout and a consolidated waste management plan for all of Kramerville Corner. It also bene� ts from a � breoptic backbone that provides high-speed internet and runs its new CCTV system. Plus it has a new guardhouse, new bathrooms and better delivery access.

The revamp has made Kramerville Corner a superior asset for its owners, tenants and neighbours. It is this innovative re-imagining that Emira is employing across its portfolio.

In Midrand, Emira upgraded Lone Creek O� ce Park with new common areas, modern ablutions and a substantial improvement to the security and landscaping. The upgrade investment was R8,6-million and the project has already resulted in increased demand for the property.

Extending Emira’s relationship with Millward Brown in Rivonia, the company undertook a total refurbishment of the south block at Bradenham Hall. After an investment of R9,4-million into the property’s major overhaul, the building now has new � oors, energy-e� cient LED lighting throughout and a modern, centralised air-conditioning system. All this introduced more energy-e� ciency to the project.

In Centurion, Emira has refurbished its Tuinhof building at 265 West Avenue. Bringing its common areas in line with its excellent location, the o� ce received new lobby � nishes for � oors and walls alike, a major overhaul of its bathrooms and new e� cient lighting. These updates have successfully boosted its lettability and reduced vacancies from 14% to less than three percent.

industry news

Geo� Jennett, CEO of Emira


industry news

Jeff Zidel has been appointed as President

of the South African Council of Shopping Centres (SACSC). The highly regarded co-founder of Resilient has been involved in the property industry for more than 45 years. He is Deputy Chairman of Fortress Income Fund and a non-executive Director of New European Property Investment PLC.

“Zidel’s unique insight and experience in South African and international markets, combined with his passion for mentorship and his commitment to advancing our sector, will help to further the SACSC mandate,” says Chief Executive Officer of SACSC Amanda Stops.

SACSC is the official umbrella body of all parties involved in shopping centres, including owners, developers, managing agents, brokers, professionals, retailers, marketers, service providers, financiers and researchers. It was launched in 1991 to advance the interests of the retail property sector in South Africa and internationally, and to address issues and challenges within the industry. It engages with associated sectors and other stakeholders

on behalf of its members, and highlights the role of shopping centres as a major resource for all communities in South Africa.

Over his extensive career, Zidel has played a hands-on role in a number of landmark shopping centre developments and deals. As President of SACSC, he intends to build on the foundations already in place and find new ways to expand horizons for South Africa’s community of shopping centre owners and retailers.

“South Africa has one of the world’s leading shopping centre industries,” he says. “There is an opportunity to capitalise on our growing international profile as we become more active in the arena of global retail. It’s important to showcase the exceptional calibre of

our capabilities and make it clear we should be taken seriously – South Africa, Africa as a continent, and our skilled professionals.”

Leadership will take centre stage at the 20th South African Congress of Shopping Centres at the Sandton Convention Centre from 7 to 9 September 2016. The theme of this year’s congress, LEAD, is fitting in light of the contribution that retail and property make to South Africa’s economy and society.

Hosted by SACSC and sponsored by Nedbank CIB, the retail sector’s flagship annual event will feature the latest insights on trends, technology and customer engagement. It is a meeting place for industry leaders, current and future, as well as leading retailers and brands.

Jeff Zidel is the new President of SACSC

nedbank.co.za

Nedbank Corporate and Investment Banking is a division of Nedbank Ltd Reg No 1951/000009/06. Authorised fi nancial services and registered credit provider (NCRCP16).

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Proud sole funderof the Mall of Africa

Property Point gives green innovators a chanceLinking budding entrepreneurs

with green building leaders at the 2016 Green Building Convention, Property Point is enhancing green innovation in South Africa while providing SMEs with an opportunity to develop their businesses.

Property Point, a Growthpoint Properties initiative, has seen more than 100 businesses participate in its two-year programme, which aims to generate procurement opportunities for SMEs and boost their ability to create jobs.

To date, the programme has generated more than R451-million in procurement opportunities for participants, who have reported a remarkable revenue growth of up to 54,5%.

“Growthpoint has fully committed itself to preserving the environment and developing small enterprises,” says Shawn Theunissen, Head of CSR at Growthpoint Properties, and Head of Property Point.

“To this end, Property Point has sponsored two green small businesses to attend and exhibit at the Green Building Council of South Africa’s (GBCSA) annual convention. Green building in South African property has grown exponentially, and as a result we have seen the demand for ecofriendly,

SACSC President Jeff Zidel

Shawn Theunissen, Head of Property Point and Head of CSR at Growthpoint Properties


industry news

Durban leads the charge towards a national spatial revolution

Hosted by the KZN branch of the South African Institute

of Architects, a conference held at Durban’s historic city hall on 8 July aimed to put the radical transformation of South African cities, towns and villages at the top of the national agenda.

In his keynote address, Minister of Finance Pravin Gordhan pointed out that the current urban sprawl, a legacy of the apartheid era, contributed towards low economic growth.

In a new regime of spatial planning, a pipeline of catalytic interventions was required as part of well-coordinated urban development. Treasury was looking to new funding models

with public-private sector partnerships key to providing these and ultimately leading to faster, more inclusive economic growth, Gordhan said.

Malijeng Ngqaleni, deputy Director General of the national Treasury, said that managing urbanisation correctly could turn the growth trajectory of the country around. She noted that planning methods had actually deepened the apartheid spatial legacy; as a result, South African cities were unproductive, unequal and unsustainable. A new approach, with citizens as part of the process, is needed. Although she cautioned that there could be no quick fix,

she said that clear catalytic interventions were needed to create action.

Speakers from national government, academics and private sector representatives highlighted one of the biggest problems emanating from apartheid cities – the extensive commuting distances between far-flung communities and places of work. Referring to a 2011 OECD study entitled “How’s Life”, Mike Deighton, Managing Director of Tongaat Hulett Developments and Immediate Past President of SAPOA, said that out of 22 countries analysed, South Africa had the longest average commute time of 58 minutes daily. Urban designers, in turn, demonstrated how in South Africa, unlike internationally, poverty is situated on the fringes of cities rather than at the centre, exacerbating this challenge for poorer citizens.

Musa Mbhele, acting Deputy City Manager for Economic Development and Planning, presented Durban’s spatial concepts for the future, showing how these would address the historical imbalances in Durban

characterised by rural and township areas with minimal economic opportunities, long commuting distances, urban sprawl and low density. Key principles included a compact city model, with emphasis on accessibility and convenience in a compact urban area and along key growth corridors, support of small and localised businesses, and intermodal hubs promoting optimal use of infrastructure capacity.

Felipe Leal, past Minister of Urbanism for Mexico City, shared his extensive experience in reshaping a city that in 1950 had 3,1-million inhabitants – fewer than Durban does currently – but in 2016 accommodated more than 21-million citizens. Using examples of how the improvement of public space through innovative and commercially robust, mutually beneficial relationships between the public and private sector delivered immediate and directly consequential economic activity, he showed how investment in public space triggered almost immediate small commercial activity.

resource-efficient development, management and maintenance of buildings in the industry increase as well. This provides numerous opportunities for innovative small businesses to make their mark on the property industry.”

This year’s GBCSA Convention was held from 26 to 28 July 2016, in Sandton. Property Point sponsored Kopano Ke Lesedi Construction & Projects and Imbewenhle Trading to attend.

Based in Marshall Street, Johannesburg, Kopano Ke Lesedi Construction & Projects has been providing plumbing, landscaping and maintenance services for the past three years. Managing Director Linah Mogale started the business to provide a sustainable solutions service to the industry. With three full- time staff members, Mogale believes innovation is the key to operating a successful business.

Trueman Myeza is Managing Director of Imbewenhle Trading.

Boasting 100% black youth ownership, Imbewenhle is an air-conditioning and refrigeration company. The company’s name, which means “the good seed” in English, is indicative of the positive impact it hopes to make in the business environment.

“Property Point’s main purpose it to identify these dynamic entrepreneurs and work with them to build more sustainable businesses,” says Theunissen. “In today’s climate, sustainable businesses need to take the environment into account. However, finding real procurement opportunities can often prove challenging for SMEs.

“By giving entrepreneurs such as Linah and Trueman access to decision-makers who are looking for sustainable solutions from sustainable businesses, we give them a greater chance to realise their full potential.”

Trueman Myeza, Managing Director of Imbewenhle Trading

Linah Mogale, Managing Director of Kopano Ke Lesedi Construction & Projects

Mike Deighton, Managing Director of Tongaat Hulett Developments and Immediate Past President of SAPOA


industry news

Pam Golding Properties’ Cape rental division has concluded many leases

since the start of the 2017 financial year, for up-market houses and apartments on the Atlantic Seaboard, in the City Bowl and in the Southern Suburbs.

A Clifton apartment has been signed for R110 000 per month for the first year and R121 000 per month for the second year. A Bantry Bay apartment was leased for R100 000 per month, and a Clifton bungalow for R80 000 per month.

In the Southern Suburbs, top rentals include two five-bedroom Bishopscourt homes for R89 000 and R65 000 per month respectively. In the City Bowl, a four-bedroom Higgovale house was rented for R44 000 per month, and an Oranjezicht penthouse is under negotiation for R42 000 per month.

Cape Metro Rental Manager Dexter Leite says strong demand is underpinned by factors that include South Africans’ migration from other provinces, the appealing lifestyle, established infrastructure, excellent schools and tertiary institutions, and Cape Town’s reputation as a well-managed city.

“We have had a number of ‘buy-to-let’ investor enquiries and have been asked to do a number of rental valuations for developers, both in respect of new build and conversions/upgrading of existing blocks, particularly in the City

Bowl and surrounds,” said Leite. The rental division has also received foreign corporate enquiries for security or gated estates in the Southern Suburbs. This is a popular niche, with three Stonehurst Estate homes recently let by Pam Golding Properties.

V&A Waterfront Marina apartments are also in high demand, with signings of two- and three-bedroom units for R42 000 per month, R50 000 per month and R55 000 per month.

“We are a trusted name and can offer everything from long-term rentals of stately mansions to self-catering apartments close to all amenities at daily rates,” said Leite. Longer-term rental homes currently on the Pam Golding Properties books include a seven-bedroom (all en suite) traditional Cape Dutch house in Constantia for R130 000 per month and a magnificent double-volume three-bedroom apartment in central Cape Town for R125 000 per month. A five-bedroom, five-bathroom Bakoven villa is also available for R85 0000 per month.

More-affordable rentals for centrally located apartments include a trendy, renovated (unfurnished) Tamboerskloof one-bedroom unit for R13 500 per month and a three-bed, two-bath Vredehoek apartment for R17 000 per month.

PGP Cape’s metro rental division secures top leases

think beyond vision

• Program and Project Management

• Property Development Management

• Construction Project Management

• Building and Civil Construction

• Turnkey Developments

• Tenant Fit Out and Coordination

• Property Asset Registry

• Research and Audits

Tel: +27 11 486 3315Fax: +27 11 486 [email protected]

www.akweni.co.za

industry news


SAPOA-Wits partnership in executive education

The courses form part of a sequence of courses selected in accordance with

the career paths on which JPC has placed its employees. This means, for instance, that for employees in property and asset management, the foundation course was Real Estate Market Analysis, jointly delivered by Professor Samuel Azasu and Prisca Simbanegavi of the School of Construction Economics and Management. For employees on the facilities management (FM) track, the foundation course was in Building Services, jointly delivered by Dr Yomi Babatunde and Dr Nthatisi Khatleli.

The employees on the property/asset management track will follow this up in August with another course in Real Estate Investment Analysis and Commercial Real Estate Valuation, while their FM counterparts will study Project Management as well as Occupational Health and Safety. There are upcoming courses in Real Estate Corporate Finance and Strategic Corporate Real Estate Management, with the latter being delivered by Professor Karen Gibler of Georgia State University (Atlanta), who is also the Executive Director of the International Real Estate Society. There will also be a course in Facilities Management by Professor Brian Atkin, Director of the Facilities Society of the UK and the author of the FM standards of the UK.

According to Azasu, who is the director of the programme, even if these courses do not lead to a qualification, the idea is to create informal programmes that cumulatively ensure that participants develop working knowledge of their respective skills areas. In addition, it allows holders of National Diploma qualifications who excel in these courses to enrol in the Postgraduate Diploma programme without having to acquire an Advanced Diploma qualification.

The School has found from experience that a combination of work experience and success in the short courses helps people without the usual qualifications – such as bachelor’s and honours degrees and advanced diplomas – to access higher qualifications and do well. According to Azasu, this has provided the School with a pedagogically sound tool to create a pathway that accelerates transformation through access to higher qualifications. It also enables a gradual re-entry into academic work for candidates who have been away from school for a long time by gradually re-acquainting them with the academic environment. “We are also ensuring this happens with an academic team that is global, providing a world- class education to non-degree students,” says Azasu.

Each of these courses typically lasts a week at a time, followed by a mix of exams and assignments that are due not more than two weeks after the courses have ended.

The next stage of the SAPOA Wits partnership in executive education continued with two new courses for employees of the Johannesburg Property Company (JPC) between 4 and 8 July 2016 at the Professional Development Hub of Wits University

education, training and development

Submitted by Wits Commercial Enterpriser t: +27 (0)11 717 9025 e: [email protected]

Each of these courses typically lasts a week,

followed by a mix of exams and assignments that are

due not more than two weeks after the courses have ended

South Africa is faced with the challenge of spatially

integrating its various land uses. National, provincial and municipal forward-planning documents continue to emphasise the need to spatially integrate our towns, cities and rural areas. One of the key components to addressing this challenge is the provision of sustainable transportation and associated infrastructure. As with most things in life, it is important to understand the historical context in order to explore possible solutions.

Wikipedia describes the history of transportation as one of technological innovation. In a nutshell, the essence of transportation is the ability for human beings to travel and move goods from one point to another in the most convenient and e� ective way. Human feet – yes, walking – were the original form of transportation. It was only between 4000BC and 3000BC that animals were domesticated and used for transportation purposes.

Transportation has contributed to great innovation through the centuries, allowing for people to travel and explore land, water, rail, air and space. It is through transportation that we are able to explore a variety of territories and expand our in� uence over larger areas.

The fundamental connection between urban planning (town planning) and transportation cannot be ignored. Urban planning is described as a technical and political process concerned with the use of land and design of the urban environment,

Connecting South Africans to their cities

inclusive of air, water and infrastructure passing into and out of urban areas through the use of transportation and various distribution networks. The advances in transportation created the need for planners and architects to shift the manner in which they create and design urban environments. However, it was only at the turn of the 20th century that it became absolutely crucial for urban planning models to be explored in order to mitigate the consequences of the industrial age.

Fast-forward to the 21st century, and we � nd ourselves having to go back to our past to rediscover the values and bene� ts of creating sustainable, vibrant, integrated, pedestrian-friendly cities. As previously alluded to, the innovation and technology associated with transportation constantly explore new avenues of improved movement. The development of rapid transport systems is one of the many examples that con� rm this in the current era.

So how does South Africa, given its ongoing challenges of population growth, the demand for adequate services, lack of economic opportunities and the undeniable need for transformation, navigate its way towards creating connected cities? The answer to this question requires that we again examine our history.

As highlighted in the 2016 State of the Cities Report published by the South African Cities Network, South African cities are ine� cient. This is the result of the apartheid legacy, which spatially displaced the majority of the population and neglected public transport.

Post-1994, developments have continued on this path; this has negatively a� ected productivity levels as people (especially the poor) have to travel long distances to reach their places of employment.

The traveling comes at an enormous cost. According to the South African Income & Expenditure Survey conducted

by Statistics South Africa (for the period September 2010 to August 2011), the second-highest household consumption expenditure was transportation at 17,1% with the highest being 32% (which was spent on housing expenses such as water, electricity, gas and other fuels). Other research conducted by Statistics South Africa – “The National Household Travel Survey 2013” – interviewed a sample of 52 720 candidates (accumulated total sample across all nine provinces, with the main participants being based in the provinces of Gauteng, KwaZulu-Natal, the Eastern Cape and the Western Cape), and established that 85%

Lekgolo Mayatula is SAPOA’s Planning and Development Manager


planning and development

Wikipedia describes

the history of transportation

as one of technological

innovation. In a nutshell, the

essence of transportation

is the ability for human beings to travel and move goods from one point to another

in the most convenient and

effective way

Fast-forward to the 21st century, and we fi nd ourselves having to go back to our past to rediscover the values and benefi ts of creating sustainable, vibrant, integrated and pedestrian-friendly cities

of the workers were based in metropolitan areas, with nearly 40% of them using public transport. Of the stipulated public transport users, one in � ve (21,1%) walked to work. A total of 3,7-million taxi trips were made on a daily basis; of these trips, 1,4-million were in Gauteng and 800 000 in KwaZulu-Natal. The study also revealed that 22,1% of workers left their residence before 6am in order to get to work on time; 14,7% of workers walked for more than 15 minutes before reaching their � rst public transport and, after being dropped o� , about half of them walked for more than 15 minutes to reach their place of employment.

The � ndings also revealed that in 2013 more households in the metropolitan areas travelled more than 60 minutes in order to reach their respective public transport facilities (taxi ranks, bus stops, etc), as compared to numbers in 2003. Added to this, the proportion of workers who received a travel allowance from their employer dropped from 3,4% in 2003 to 2,3% in 2013. This re-a� rms the fact that our development patterns post-1994 have not been following a sustainable or economically viable path.

More recent research conducted by the South African Cities Network, which intends to provide a more user-friendly overview of transportation and how it connects users to their cities, explored the “Gauteng Transport User” through the evaluation of a travel diary managed by a sample of 10 individuals. The following facts were gathered during this process:

● Seven out of 10 users of public transport are pedestrians at some point in their journey.

● In a � ve-day working week, 10 users of nine modes of public transport spend R3 000 and travel a collective time of 120 hours.

● The modes of transportation explored include walking, cycling, Bus Rapid Transport, Metrobus, Metrorail, Gautrain, Gautrain bus, minibus taxi and private car.

● The cheapest modes of transport are cycling and walking.

● The person who walks as their main mode of transport covers a distance of nearly 100km per week.

● Gautrain user travelling from Pretoria to Park Station can spend up to R3 500 per month.

● The BRT user pays three times more than the Metrorail user.

● According to the user feedback analysis, the favoured transportation modes (from best to least-preferred) are BRT, cycling, walking, Gautrain, Metrobus, taxi and Metrorail.

● Even though a car users’ total weekly travel time is shorter (13 hours) compared to that of a Metrorail user (20 hours), the car user travels twice the distance of the Metrorail user.

● The longest individual daily travel time is � ve hours and 10 minutes. This user is an intern transport planner who travels 88km per day, who makes use of three di� erent transportation modes (car, minibus taxi and walking) at a cost of R52 per day.

● The longest individual daily travel distance is 144km, with a daily travel time of four hours and 45 minutes at a total daily cost of R147, making use of four di� erent transportation modes (walking, minibus taxi, car and BRT).

● The most expensive individual daily cost

is R168,64, spent on a total travel distance of 128km and a daily travel time of three hours and 23 minutes.

The concerning revelation was that, of the various transportation modes, Metrorail fared the worst as the least-preferred – and this was as a result of its unreliability. When analysing the time and distance travelled between a cyclist and the Metrorail train commuter, it was evident that the cyclist (although travelling a longer distance than the train commuter) was likely to reach his place of employment earlier than the Metrorail train commuter.

Why should the property industry take note of the discoveries mentioned? What impact do they have on businesses? For starters, with the country’s slow economic growth, the uncertainty created by Brexit and the impact of global rating agencies closely monitoring the developments in the South African economy, it is important for the industry to explore alternative ways of increasing productivity without the loss of income – for organisations and for employees. It seems as though there is no better way than to go back to basics, and make walking and non-motorised transportation the preferred modes of movement within our cities.

How do we get about doing this? A challenge was recently put to SAPOA at one of the engagements that our o� ce attended. The challenge was as follows: “SAPOA members are involved in the development of our cities, but in many instances they are not aware of the impact their developments have on the various end-users and their associated modes of transport. Thus in order for the industry to actively engage in and


planning and development

assess their developments, it would be a great idea for the members of the organisation to make use of public transport for a speci� c period. The end results will be of great bene� t not only to the industry but also to the end-users.” Is the industry open to this challenge?

Before we shift the responsibilities of creating connected cities to an industry level, the same challenge is also an opportunity for us as individuals to reassess how we take ownership of our cities. What must we do to ensure that our cities are safe, interactive, multicultural and productive spaces? The answer lies in an ancient art of transportation – the art of walking.

The fundamental connection between urban planning (town planning) and transportation cannot be ignored. Urban planning is described as a technical and political process concerned with the use of land and design of the urban environment, inclusive of air, water and infrastructure passing into and out of urban areas through the use of transportation and various distribution networks


legal update

Competition Commission’s market inquiry into the

grocery retail sector

On 30 October 2015, the Competition Commission, in the exercise of its powers

under the Competition Act No. 89 of 1998, published a notice that it would conduct a market inquiry into the grocery retail sector.

The o� cial commencement date of the inquiry was 27 November 2015, and it is expected be completed by 29 May 2017. The Commission may, however, by notice in the Government Gazette, amend this time frame.

The Commission has initiated the Grocery Retail Inquiry in order to:

● Understand how the grocery retail sector operates because the Commission has reason to believe that there exist features or a combination of features in this sector that may prevent, distort or restrict competition; and

● To pursue the purpose of the Act.

In line with the Terms of Reference, the panel proposes to assess competition in the grocery retail sector under six objectives, namely:

● The e� ects of national supermarket chains moving into townships, peri-urban and rural areas and what the e� ect this move has on small and independent retailers and the informal economy in these areas;

● The e� ect of property developers, � nanciers and national supermarket chains entering into exclusive lease agreements that restrict landlords from being able to rent space within their developments to other retailers that may potentially compete with these national supermarket chains;

● The dynamics relating to competition between foreign- and South African-operated small and independent retailers (i.e. spaza shops, general dealers, etc) in townships, peri-urban areas, rural areas and the informal economy;

● The impact of regulations, municipal town planning and by-laws on small and independent retailers in townships, peri-urban areas, rural areas and the informal economy;

● The impact of buyer groups on small and independent retailers in townships, peri-urban areas, rural areas and the informal economy; and

● The impact of certain identi� ed value chains on the operations of small and independent retailers in townships, peri-urban areas, rural areas and the informal economy. These value chains are essential product supply chains, which will be identi� ed during the course of the inquiry.

The � ndings of the inquiry will provide a factual basis upon which its panel can make evidence-based recommendations to the Minister of Economic Development in order to promote competition and the purpose of the Act in the sector.

On behalf of its members, SAPOA lodged a complaint with the Competition Commission and requested the Commission to investigate exclusivity clauses, and to give a de� nitive ruling regarding the anti-competitive nature of exclusivity clauses in leases once and for all. The recommendation from SAPOA is that the Commission must proceed with a market inquiry as this is the most suitable approach for SAPOA and its members. Pending such an inquiry, SAPOA has requested that the Commission suspend the complaint. In and during May 2015, SAPOA received a letter from the Commission con� rming its decision to conduct a market inquiry into the grocery retail sector.

The issue of exclusivity clauses is one that is fraught with di� culty. The Competition Act safeguards against restrictive horizontal practices, restrictive vertical practices and abuse of a dominant position. A restrictive horizontal practice is one where competitors cooperate rather than compete, with the result that a number of � rms act in unison. Abuse of dominance occurs when one � rm is so dominant that it gains an anti-competitive advantage over its competitors, customers and suppliers, and a restrictive vertical practice is one where a relationship exists between

di� erent levels in the supply chain that has the e� ect of preventing or lessening competition in the market. Exclusive agreements could be classi� ed under the restrictive vertical practice agreements.

During his speech at the Budget Vote of Economic Development on 21 April 2016, Minister of Economic Development Ebrahim Patel announced that Section 12 of the Competition Amendment Act, 2009 insofar as it relates to section 73A of the Competition Act of 1998, will come into e� ect on 1 May 2016. This section of the Act makes it a criminal o� ence for directors or managers of a � rm to collude with their competitors to � x prices, divide markets among themselves or collude in tenders, or to acquiesce in collusion. They expose themselves to time in jail if convicted.

The Commission published draft Terms of Reference for the market inquiry in the Government Gazette on 12 June 2015, and called for public comment on the draft.

SAPOA submitted that the anticipated scope of the inquiry stipulated in the draft was very broad and may therefore lead to a shallow inquiry on a great number of aspects of the market. It was therefore recommend that the inquiry be divided into two distinct phases and that the Commission set reasonable time frames within which the inquiry is to be conducted and concluded.

Once again, the terms of reference for the inquiry are very broad in scope. This is now clearly emphasised through the draft statement of issues, which sets out the framework for approaching the inquiry by expanding on each of the six objectives identi� ed in the terms of reference above.

It is very clear that the investigating team and panel have an immense (and perhaps unmanageable) task ahead of them. However, SAPOA has already identi� ed this in the submission made on the draft terms of reference.

Guidelines and administrative timelines deal with the procedural aspects of participating


legal update

By Mumtaz Moola


legal update

in the inquiry, such as practical requirements for providing written submissions and structure for the public hearings to be held next year.

The administrative timeline seems particularly short in duration. Given the wide scope of the inquiry, we are unsure that the panel will manage to meet these deadlines.

Once the above draft documents have been � nalised, the panel will call for substantive submissions. This is currently scheduled for 15 July 2016 until 15 August 2016. SAPOA is not obligated to provide submissions. However, the panel has emphasised need to receive information from stakeholders in order for it to properly understand and analyse the issues in making appropriate recommendations.

In general, the panel has invited submissions on:

● The structure, trends and players operating at each level of the grocery retail sector supply chain, and

● The degree of competition between the di� erent players in the grocery retail sector supply chain.

In relation to exclusive lease agreements, the panel has speci� cally outlined the following issues for consideration:

● The prevalence and duration of exclusive lease agreements – SAPOA is in a unique position to collect and collate information in this regard.

● The role of � nanciers in these agreements – SAPOA and its members have ongoing experience in the development of projects and the interaction with � nanciers. They can attest to what � nanciers require for a project in order to attract and secure � nancing.

● The extent to which exclusive lease agreements have:

◆ Excluded small businesses and large competitors or potential competitors,

◆ Contributed to the high level of concentration in the market, and

◆ Bene� ted or harmed consumers, and led to increased or decreased e� ciencies.

Pending the call for submissions, it is important to consider whether SAPOA (or its members) will make submissions on these issues – and, if so, how best to collect and frame the appropriate information.

In addition to the issues identi� ed by the Commission for submission as set out above, it would be very useful for the inquiry team

to be provided with suggestions as to how exclusive lease agreements could be best handled in future:

● How from a practical viewpoint current exclusive lease agreements could be phased out or adapted if found to be anti-competitive;

● What limitations (if any) should be imposed on new lease agreements regarding exclusivity that will deal with requirements of the � nanciers, developers and anchor tenants, while still ensuring competition in the development.

As alluded to, SAPOA lodged a complaint on behalf of its members. The Commission fairly expects submissions from a complainant.

Running parallel to this process is the Massmart interlocutory hearing. This hearing will not deal with the merits of the competition concerns, which included exclusive lease agreements, information exchange, category management and possible abuse of buyer power. This hearing does not a� ect SAPOA as:

● No relief is sought by Massmart against SAPOA;

● SAPOA is cited as a respondent by virtue of its interest in the matter only;

● SAPOA’s interests as set out in its complaint are strongly aligned with those of Massmart;

● Although any decision of the Competition Tribunal may impact exclusivity clauses, including those in agreements to which some members are party, the matter is not directed speci� cally at the members or the agreements to which they are party.

We would like to thank Stephen Langbridge of Fasken Martineau Attorneys for his input on the topic.

This legal opinion is only a guide and should not be copied with the expectation that it will serve specifi c individual circumstances. Most of these recommendations have not been tested in our courts. SAPOA cannot guarantee any success in any court if any of these recommendations are put to use.


legal update


lifetime achievement award

Norbert Sasse talks to the South African Property Review about his role in Growthpoint Properties’ growth, which ultimately

resulted in his winning the lifetime achievement award

By Mark Pettipher

In recognition of services rendered

SAPOA’s inaugural Lifetime Achievement Award was won

by Norbert Sasse, Chief Executive O� cer of Growthpoint Properties Limited. This new accolade, which will be awarded every three years, recognises and celebrates the exceptional

contributions made by an individual who has changed the

face of the South African property sector. “I was talking to my wife Janine during

SAPOA’s 50th Anniversary Convention and Property Exhibition gala dinner, and we thought my chances of winning this award were slim,” he says. “Candidates such as Wolf Cesman and Colin Steyn have far more experience in the industry than I do – they are veterans.”

“I was unaware that this was the � rst time the award would be

presented, and I thought that a winner would come from within the industry – an architect, a quantity surveyor, someone like that. I certainly did not think that my background in chartered accounting would put me in the running!

“It came as a complete surprise when my name was read out, and I’m humbled and honoured to have been recognised as the award’s very � rst recipient. My winning had been kept a complete secret. Only three people knew about it: SAPOA’s Chief Executive O� cer Neil Gopal, SAPOA’s Past President Amelia Beattie and the event organiser Jane Padayachee.”

Sasse’s road to attaining the top position at Growthpoint Properties Limited has been through his involvement in corporate � nance,

dealing with listings, de-listings, mergers, acquisitions and capital

experience in the listed property market. His

early career took him to Ernst & Young,

before he joined Investec Corporate Finance in 1996.

Because of the diversity of his client base, he was doing something di� erent every day, dealing with the registration of a medical asset one day and that of an IT company the next. “Our clients always expected us to be knowledgeable about their industry and investment, and I found myself thinking that I’d love to specialise in a particular industry,” he says. “In those early days there was not much happening with property, so that was the furthest thing from my mind.”

Working at Investec, which owned the management companies of Growthpoint Properties and a smaller fund called Metboard Properties, meant that Sasse became involved in those property funds as an advisor. After being invited by his mentors, Investec’s Sam Hackner and Sam Leon, he took a closer look into the groups’ activities. He e� ectively started in� uencing Growthpoint Properties direction in 2001.

Since then, he has taken a relatively unknown organisation with an asset base of nine properties valued at R120-million and a market cap of about R30-million, to what Growthpoint Properties is today – a portfolio that owns and manages over 420 properties in South Africa and 40 in Australia, with a gross asset value of about R75-billion.

Growthpoint Properties’ turning point came in January 2004, when Sasse advised and structured an acquisition deal to buy the property assets of the Sentinel Mine Employees Pension Fund for about R1,5-billion, overnight changing Growthpoint’s value from R120-million to R1,6-billion, with a market cap of more than R700-million.

Even though he was the Managing Director of Growthpoint Properties, Sasse was still on Investec’s payroll until 2007, when the Boards of Growthpoint and Investec jointly agreed to internalise the management of Growthpoint. Growthpoint paid R1,6-billion to terminate Investec’s long-term management relationship, and Sasse became Chief Executive O� cer,


lifetime achievement award

taking on the reins and formalising the running of Growthpoint Properties.

Over the years, Growthpoint Properties carefully acquired strategic portfolios such as Primegro (R2,5-billion in 2003), Metboard (R2,4-billion in 2006), Paramount (R3,4billion in 2007) and Orchard Industrial Trust – now Growthpoint Australia (R1,3-billion in 2009).

Sasse’s next major deal (in 2011) was putting together the collaboration between Growthpoint and the Public Investment Corporation to purchase the V&A Waterfront in Cape Town. The R9,7-billion deal, 50% owned by Growthpoint, was at that time South Africa’s single biggest property transaction.

As the property industry gained momentum in the early 2000s, it was the domain of the bigger life insurance companies such as Old Mutual, Sanlam and Liberty, mostly controlling the major developments in the property sector. Many pension funds needed to have more liquidity, and more tradeable assets.

The sector had a cumbersome structure known as property loan stock companies, where share capital comprised shares and debenture capital. The revenue service did not really like the structure, and felt that the companies were not paying tax.

To safeguard its assets, the property industry decided to formalise the listed property market. It realised it needed to be proactive and Sasse, along with a team of property stakeholders, looked at the best REITs structures available. “We brought in people from the UK and the US to South Africa,” says Sasse. “Our first conference was

held in 2007 – a notable speaker was Sam Zell, probably the US’s biggest and most well-known property investor. We began to put the necessary structures in place.”

Sasse, South African REITs’ first Chairman, and the team representing South Africa’s property professionals led by Estienne de Klerk, also of Growthpoint Properties, worked tirelessly to get REITs legislation passed. It was not an easy path: they were dealing with the government, FSB, SARS and the National Treasury. They overcame many hazards but, eventually, tax laws to accommodate property as a listed asset base were passed. It was a transformational period for listed property as an asset base.

From there, Growthpoint Properties’ last big transaction – and possibly its largest deal concluded last year – was the R8,3-billon takeover of Acucap Properties, which gave Growthpoint Properties access to a number of major retail assets, including Festival Mall in Kempton Park, Bayside Mall in Tableview, Keywest Shopping Centre in Krugersdorp and Greenacres Shopping Centre in Port Elizabeth.

Acquiring these retail assets has helped to bring balance to Growthpoint’s heavily weighted office sector, worth approximately R14,6-billion, and has elevated Growthpoint Properties to being South Africa’s largest listed real estate investment trust.

Looking to the future, Sasse plans to lead the Growthpoint group into Africa. The top 10 property players are looking at investing offshore, internationally and across Africa’s borders – and so is Growthpoint. However, the timing is important.

“We are looking towards non-South African revenue streams and participating with a ‘funds management approach’ as opposed to us buying buildings,” he says. “We are collaborating to raise a fund in partnership with Investec Asset Management. Raising third-party funds and leveraging our expertise, we have committed US$50-million to the fund.

“In the long term, we see massive opportunities in Africa, both in the retail and the office arena. Through the Africa fund, we look forward to being involved in achieving similar dynamics in the growth of property assets across Africa.”

● Growthpoint Properties Limited: Chief Executive Officer and Executive Director since 2003

● Growthpoint Properties Australia Ltd: Non-Executive Director since 2009

● Metboard Properties Ltd: Director ● Paramount Property Fund Ltd:

Director ● Sandton Business Improvement

District: Director ● South African Property Owners

Association: Director ● Growthpoint Management

Services (Pty) Ltd: Director ● V&A Waterfront Holdings

(Pty) Ltd: Director ● The South African Institute of

Chartered Accountants: Director

Norbert Sasse’s Directorships

Colin Steyn (retired): former Non- Executive at Growthpoint Properties, Former Chairman at Barprop Limited, Former Managing Director at Rand Mines Properties Limited, Former Member of the Eskom Pension Fund and Former Director at Pareto LimitedErwin Rode: Chief Executive Officer of Rode & Associates (Pty) LtdGerald Olitzki: Executive Chairman of Olitzki Property HoldingsIpeleng Mkhari: founder and Chief Executive Officer of Motseng Investment Holdings, Promoter at Delta Property FundJohn McCormick: Executive Chairman of McCormick Property DevelopmentNorbert Sasse: Chief Executive Officer of Growthpoint PropertiesWolf Cesman (retired): Former Chief Executive Officer of Liberty Properties

And the nominees were…

With Norbert Sasse, (from left) SAPOA CEO Neil Gopal and SAPOA Past Presidents Kevin Roman, Amelia Beattie and Dr Sedise Moseneke


SAPOA BoardSAPOA BoardSAPOA BoardSAPOA Board

Meet the SAPOA Board

Nomzamo Radebe, PresidentCEO of JHI Properties, part of the Excellerate Property Services GroupRadebe is the President of SAPOA and the Immediate Past President of the South African Council of Shopping Centres. Her career spans more than 18 years in senior roles in property, � nance and treasury management. She was awarded the “Five Star Woman” award by the Women’s Property Network,

and is the Chairman and trustee of the SAPOA Bursary Trust and a non-executive member of the SAPOA Audit and Risk Committee. She is an Executive Director of Excellerate Property Services (Pty) Ltd and a non-executive Director of Munich Reinsurance Company of Africa Limited.

Mike Deighton, Immediate Past PresidentManaging Director of Tongaat Hulett DevelopmentsMike Deighton began his career with the Durban Municipality, later working in the consulting-engineering profession. In 1995 he moved into property development, � rst joining Gough Cooper Homes, then Group Five Properties. He joined Tongaat Hulett Developments as a development manager in 2000, and was later promoted to Director of Commercial and Industrial Developments. In 2008, he was appointed as Managing Director, making him responsible for property development.

Neil GopalChief Executive O� cer

Ipeleng MkhariCEO of Motseng Investment HoldingsMkhari established the � rst black woman-owned CCTV business, before founding Motseng Investment Holdings in 1998. She is now the company’s CEO. She has a bachelor’s degree in social science, has completed the Executive Development Programme at Wits Business School and is an Archbishop Tutu Fellow. She is currently a non-executive director at KAP Industrial, Nampak, Assore and SAPOA, and a board of governors member of St John’s Diocesan School for Girls.

Je� ZidelVice Chairman of Fortress Income FundJe� Zidel’s acumen as a property developer and investor has seen him involved in all aspects of the property industry for more than 40 years. The co-founder of Resilient is Vice Chairman of JSE-listed Fortress Income Fund and non-executive Director of New European Property Investment PLC. He was three times Past President of the Roodepoort Chamber of Commerce and winner of the 2010 Absa Jewish Achiever Award for Listed Companies. He is the current President of the South African Council of Shopping Centres.

James AlingManaging Director of Halls PropertiesJames Aling is Managing Director at Halls Properties (the property development business of the Halls Group) and the current Chair of the SAPOA Regional Council in Mpumalanga. He aims to get the regional council established and representative of the broader Mpumalanga region, and to see that urban management gets the necessary attention on the SAPOA agenda as a sustainable approach to developing and/or revitalising neighbourhoods and precincts in partnership with property owners and local government.

Peter LevettPresident ElectManaging Director at Old Mutual PropertyLevett has been a Director at Old Mutual Property since 2000, and the Managing Director since 2011. He is responsible for property investment and business strategy at Old Mutual, with property assets of about R18-billion, and participates in investment strategy as a member of the Executive Committee of the Old Mutual Investment Group. He is a quali� ed CA and has several degrees, including an MBA (with distinction) and a master’s degree in commerce (cum laude).


SAPOA Board

● Property Development Awards Committee:Pieter EngelbrechtGrowthpoint Properties

● Brokers Committee:Rene StyberRosh Pinah Properties

● HR, Education, Training & Development Committee:Bernadet BothaEris Property Group (Pty) Ltd

● National Developers Forum: Warwick LordLords Properties

● Research Committee: Elaine WilsonBroll Commercial Property

Services Company

● Sustainability Committee: Josef QuraishiAmdec Property

Development Company

● Legal Committee: Desiree NafteHyprop Investments Limited

● Convention Committee:David GreenPro Africa Properties Services

● REIT Committee:Lilian BarnardMetope Investment

Managers

● Government Liaison Committee:Dr Sedise MosenekeVukile Property Fund

● Property and Facilities Management:Nicole BaumgartenBroll Property Group

● Method of Measuring Floor Areas (MOMFA):Sean LiebenbergExcellerate Design |

and Projects

● Property Charter Alignment Committee:Musa Ngcobo Thelma Ngcobo

& Associates

● East London: Robin KnottInvestPro Property

East London

● KwaZulu-Natal:Edwin van NiekerkMax Prop

● Limpopo: Paul AltenroxellKnottrox Property Trust

● Mpumalanga: James AlingHalls & Sons (Pty) Ltd

● Port Elizabeth: Mark BakkerBruce McWilliams

Industries (Pty) Ltd

● Western Cape: Marlon ParringPar-Brokerage Services

SAPOA Committees

Regional Councillors and their respective regions

David GreenDirector at ProAfrica Property Services (Pty) LtdDavid Green is a Director at ProAfrica Property Services, which assists international corporates with all aspects of real estate in South Africa and Africa. Projects have included the largest industrial sale and lease-back disposal in sub-Saharan Africa, and the relocation of large corporate head o� ces in South Africa, Kenya, Ghana, Nigeria, Mauritius and Angola. Green has been a member of SAPOA since 1982 and is currently the Chairman of the SAPOA Convention Committee, a position he has held for several years.

Dr Sedise MosenekeExecutive Director at Vukile Property Fund Limited After completing his bachelor’s degree in dental surgery in 2000, Moseneke served in the SANDF as a lieutenant in the Burundi peacekeeping mission. Today, he is the Executive Director at Vukile Property Fund Limited. He is also the interim CEO of Synergy Income Fund. He is an elected board member of Nu-Way Housing Developments and Krisp Properties, and was a previous SAPOA President (2012/2013). In addition, he is a member of the Young Presidents’ Organisation (Pretoria chapter) and serves on the WHPS Old Boys’ Committee.

Vuyani HakoExecutive Head at PIC PropertiesVuyani Hako boasts 23 years of property industry experience; of those 23, he spent 12 in executive management. He’s had exposure to local authorities and the private sector. He’s worked as Managing Director at Metropolitan Property Services, Chief Executive O� cer at Momentum Property Investments and Executive Director at Eris Property Group. He holds a BSc in town and regional planning from Wits and an MBA from the Stellenbosch Business School. He is a board member of the V&A Waterfront.

Pieter Engelbrecht (Elected)Head of Development atGrowthpoint Properties Limited Engelbrecht is the Head of Development at Growthpoint Properties, the largest property REIT on the JSE. He began his career as a quali� ed quantity surveyor, and after three years of practice moved into the development � eld. He has more than 30 years of experience in the property industry and has been involved in mixed-use developments for various clients. He is a SAPOA Board member and the Chairperson of SAPOA’s Property Development Awards for Innovative Excellence Committee

Nnema Byrd, CFA (Elected)Investment Principal at STANLIBNnema Byrd joined STANLIB in 2014, and has 16 years of � nance and property experience in the US and across Africa. Her experience covers private equity, transaction structuring, property valuations, acquisitions, land development, asset management and property dispositions. She is a member of the CFA Institute, the Economic Society of South Africa, and the Women’s Property Network. She has an architecture degree and an MBA from the Massachusetts Institute of Technology, and is a CFA® charter holder.


SAPOA events

SPONSOR AD (210x297).pdf 1 2016/07/08 3:17 PM


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Partnering with the public sector for sustainable development

By Maud Nale

Annual Convention CEO’s Dinner

Cities and how they are governed and managed must be at the heart of the

national economic growth and jobs debate. Interaction with cities and government departments is essential to ensuring economic growth in our cities. It is only through our ability to solve problems collectively that we will lead the change we need.” That was the underlying message presented by SAPOA CEO Neil Gopal at the Annual Convention CEO’s Dinner held at Summer Place in Johannesburg.

The keynote address by Minister of Finance Pravin Gordhan emphasised the challenges the country is facing. “The past five months have been difficult for our country and continent,” he said. “Inequality and youth unemployment are some of the biggest challenges in the country.”

After a recent visit to Paris for the meeting of the OECD Council at ministerial level, what is shocking, said the Minister, is what’s happening in the developed world, in particular in Europe. We are in a low growth trap, globally speaking.

One of the main concerns the conference raised was on the point of inequality, and that the increase in inequality has not changed.

“Inequality is a big issue in South Africa,” he said. “It is giving rise to the politics that you see in Europe, and it’s going to do the same here. What we see around the local government elections is something that, as leaders of the property sector, you need to take account of as well.”

Another concern is youth unemployment. According to Gordhan, South Africa has one of the biggest challenges in terms of youth unemployment in the world. “The question is, as we go forward, where are young school graduates going to find jobs in the future? Compounding this problem is the new industrial revolution, led by all sorts of sophisticated technology. For the last 18 months, there has been extensive debate about the extent to which technology can replace human beings. How is society preparing for that kind of future?”

There are many frightening scenarios that confront us at a global level and in the African context, particularly the volatility in the financial sector, the decrease in commodity demands, and the decrease in commodity prices (especially oil prices) that has done a fair amount of damage to the many countries. “As a consequence, growth is going to be pretty low. The anticipated growth is about three percent on the African continent. As it stands, the GDP growth is below one percent in South Africa, and each time we get a number, we get closer to 0,5%. Clearly, we’re not doing well enough. This is not in line with the expectations we would have for ourselves in terms of what the National Development Plan expects us to produce – you as the private sector and us as the government – and the five percent growth required to create the jobs that are needed.”

What is required in our country, according to the minister, is the creation of the right climate for economic and job growth. “I look forward to ideas from the property sector as to what initiatives you’ll be taking to help us move in the right direction far sooner than we are able to do at this point in time,” he said.

Gordhan concluded his address by challenging the property industry on how it contributes to the growth of South Africa and to some kind of narrative. “What we desperately need in South Africa are leaders in each part of society and in the business sector that have a clear vision for their businesses, for their section of the economy and for the country as a whole. If we make the right choices now, then we’ll set South Africa off on a wonderful trajectory for the next 50 years.”

Executive Mayor of the City of Johannesburg Parks Tau, MMC of Economic Development in the City of Johannesburg Councillor Ruby Mathang, sponsors, SAPOA Board members and various captains of industry were also in attendance.

Minister of Finance Pravin Gordhan was a keynote speaker

MMC for Economic Development in the City of Johannesburg, Councillor Ruby Mathang

report back

“


city tour

For those who live out of Johannesburg (and in other provinces), the city tour was an eye-opening experience. The tour was sponsored by the SAPOA 50th Anniversary Convention and Property Exhibition’s Platinum Sponsor, Joburg Property Company (JPC), and our tour guide for the excursion was its Senior Manager: Property Development, Alan Dinnie

By Mark Pettipher

Johannesburg city tour

As we left the Sandton Convention Centre, Dinnie pointed out the area behind the

Sandton Gautrain station – an area that is being developed by JPC called the Kgoro Gateway. It will consist of a mixed-use art precinct developed around a public square, situated above the new Sandton public transport interchange (PTI).

The site is flanked by Rivonia Road (east), West Street (north) and 5th Street (south). The Sandton PTI consists of the existing Sandton taxi rank (relocated to this site), the metered-taxi holding area, the Gautrain bus services, and the Sandton Gautrain station and associated parkade. The Rea Vaya Bus Rapid Transport and Metro bus services will operate on Rivonia Road to the east of Kgoro.

Kgoro will be the first point of entry for international visitors from OR Tambo International Airport via the Gautrain airport service. Sandton Gautrain Station is set to be a catalyst of phenomenal development in the city and Kgoro. To take advantage of this, a new public square and commercial development will be situated directly above the station. Kgoro will house the most integrated example of a formalised public transport interchange node on the African continent, where commuters may comfortably change between private cars, buses, rapid rail and/or taxi transport. Most importantly, it will link to OR Tambo International Airport.

The Kgoro Contemporary Art Museum will be a rich resource, reflecting what is being dubbed as an example of Afropolitan life. From a retail perspective, Kgoro’s street-level stores are already actively targeting commuters, professionals and pedestrians, and skirt the Kgoro Central development on West Street and Rivonia Road.

The heart of the development is Kgoro square and its periphery, which includes Kgoro West’s and Rivonia’s ground levels. These will host a mix of retail offerings that will define the square’s personality and will cater to visitors and residents. Kgoro’s Rivonia wing will house a mix of office, retail and luxury residential components, while the central, north, 5th Street and south

towers will largely be demand-driven, offering hospitality, office and retail functions with some residential capacity.

Our next stop: 27 Boxes, Melville27 Boxes is South Africa’s first-ever retail centre built from shipping containers. Inspired by developments such as Box Park in London’s Shoreditch, 27 Boxes was created by Citiq Property Developers’ structural engineer and architect Arthur Blake to transform a disused park into 80 boutique stores, restaurants and kiosk spaces. It officially opened in June 2015.

This space was designed with small, independent creative entrepreneurs in mind, with many of the stores focusing on local design and local production.

Building this retail centre with recycled materials – the project cost about R32-million as opposed to R45-million for a traditional build – meant that construction costs were significantly lower. Therefore it follows that the rent is much more affordable, making it possible for local designers, artists and artisans to have their own permanent retail spaces.

Not only is 27 Boxes cleverly designed and quite practical, it is also visually interesting, with bright colours and sharp shapes. There’s an airy amphitheatre, a garden area and a play park, where the plan is to host events and markets.

Hard hats and site tourDinnie is particularly proud of JPC’s flagship Office Space Optimisation Programme, and while he explained the greater vision for the City of Joburg, we were given a tour of the new Council Chamber that’s currently under construction.

The chamber will have a large entrance foyer with amenities, as well as seating for 361 councillors and officials on its ground floor (with a gallery to accommodate 158 people, press and visitors included on the second floor). Visually and spatially it also incorporates a generous circulation and informal caucus space behind the chamber and gallery.


city tour

To quote from the JPC website, the new Council Chamber has been designed based on key principles and inspirations:

● Circular, traditional, Afrocentric structuring of meetings (lekgotla/ kraal), which gives rise to a circular, inclusive, flowing, structured chamber

● The African drum and drumbeat as the rhythm of Africa

● The gathering of resources, inputs and participation from throughout the city as a symbol that the council belongs to all citizens and had been made by all citizens, it involves the mobilisation of artists, artisans and craftspeople from all regions for the contribution of fittings and finishes to the chamber

● Transparency of the Chamber to represent openness and accountability through the use of see-through façades

● Incorporation of gold colours/elements into the finishes and fittings as recognition of the city’s heritage and status of the City of Gold

● The building will be the pinnacle of green building practice, and will be the first publicly owned building to be Green Star-rated (it will be 5-star Green Star-rated)

● The building will be “smart”, with up-to-date technical infrastructure

● The chamber will integrate with its surroundings and connect to the city. This will be achieved both visually as well as via the broadcast of council events into the adjoining council squares and to all regional offices.

And so to lunch…I’d heard of the Potato Shed all the way down in Cape Town, but what we saw was beyond what was described to me. Thanks to JPC for also hosting the lunch at a venue that, as a visitor to Jo’burg, I shall surely return to.

Set in the refurbished Newtown Junction across from the Nelson Mandela Bridge, this smokehouse-meets brewery occupies an incredible industrial space that used to be a potato shed in 1910 – and home to the original railway sidings and fresh-produce market. The space is big and full of textures and atmosphere, and includes exposed industrial rafters, copper panelling and down lighting, as well as chesterfield leather couches, wooden crates and a mix of flooring.

The menu pays homage to the humble potato and sweet potato, both served in a variety of interesting ways. Meat dishes are mostly cooked within fire pits, pit smokers and wood-fired ovens. Since it is, essentially, a potato shed, vegetarians are well catered for with a tantalising array of options.

Last but not leastAs a concluding experience, we were taken to the Johannesburg Holocaust & Genocide Centre, yet to be open to the public, where we were given a glimpse of what will be a powerful memorial.

The building is full of meaning and symbolism, housing everything from WWII railway tracks and cattle cars to embedded stones and pavers. It was designed by architect and project manager Lewis Levin. The site was provided by the City of Johannesburg and will house a permanent exhibition, venues for workshops and public events, a memorial garden and resource centre, a coffee shop and a bookshop.

It’s not intended to be a museum but rather a “vibrant educational space”.

Last wordThe tour gave each participant an opportunity to experience Jo’burg on a more intimate level – far from the madding crowd, so to speak. Many of us will use this experience to become “ambassadors” for the city.

32 SOUTH AFRICAN PROPERTY REVIEW32 SOUTH AFRICAN PROPERTY REVIEW

SAPOA 50th Anniversary Convention and Property ExhibitionSAPOA’s 2016 Convention held in Sandton was a 50th-anniversary celebration, and has been hailed by delegates as the most successful ever. It was filled with more than 1 300 delegates, South Africa’s property, economic and political brains trust, and enough enlightenment, drama, humour, networking, golf and glamour to launch another successful 50 years

By Anne Schauffer

Convention report back



Eusebius McKaiser, master of ceremonies and the facilitator for SAPOA’s 50th-

anniversary Convention, put it succinctly when he took the microphone on day one to welcome the more than 1 300 delegates: “This is a Convention geared towards celebration. We’ve 50 years to look back on, and the � rst aim is to celebrate what the property industry has done for development in this country, and for the entire region.”

Celebration was the golden thread that wound its way through the riveting, often hard-hitting and always challenging topics, speakers, panellists and discussions that ensued. The Convention’s overarching aim was to juxtapose a number of di� erent themes, yet many roads led directly or indirectly to precisely where the property sector is situated in terms of the country’s macroeconomy, and the inescapable impact of the political landscape on just about everything in addition to property as the ripples of unrest in Tshwane � ltered into the convention centre, and the UK’s Brexit votes were being counted.

Everything impacts on property, and property impacts on everything. “We’ve chosen a number of speakers and panels that speak to the question of ‘How will we

get ourselves out of this rut of low economic growth?’ – because your fate, ultimately, is tied to the trajectory of the economic realities of our country and our region,” said McKaiser. Equally, “No company can a� ord not to care for political risk analysis – perhaps even more so than in previous years – so we have more top-notch political analysts who speak to the social and political context in which we’re operating. The reality is, if the regulatory environment isn’t sound, if the political risks are unduly high, it may not make rational sense to continue investing locally … even though at the CEOs’ dinner last night, Minister of Finance Pravin Gordhan almost begged for something like half a trillion rand over the next � ve years – and I don’t think he was joking – just from this sector of the economy.”

McKaiser may have cut the ribbon but outgoing SAPOA President Mike Deighton, the Managing Director of Tongaat Hulett Developments, o� cially opened the Convention with a look at how SAPOA had measured up to its stated goals over the past year. And it was all good news, particularly around education and bursaries in the property sector, as well as advocacy.

He too, referred to Minister Pravin Gordhan’s presence at the CEOs’ dinner as a powerful indicator of the magnitude of the property sector’s contribution to the country’s co� ers. “I think what’s so encouraging, and it’s played itself out in a number of areas – alluded to strongly by the Minister – is an increasing recognition that cities are both the drivers of the future, and the life and energy of this economy,” Deighton said. “Real estate lies at the very heart of that.



Equally, the interests of real estate – building owners and practitioners – lie in the cities, and there’s an increasing recognition of that. I see many, many areas where it’s not simply recognition, but real action.”

Contrary to the general perception that the three Ps of property are position, position, position, Deighton contended that it’s people, people, people: “As we see, it’s really about the management skills, the people, your tenants, their mind-sets and their abilities,” he said. “I think it’s in that space that leadership is so profound and sacrosanct.”

The Executive Honourable Mayor of the City of Jo’burg Parks Tau – also speaking on behalf of Helen Botes, CEO of Joburg Property Company, a Platinum co-sponsor with the City of Johannesburg – focused strongly on the city, its role and its spatial policy, particularly

in relation to social inclusion. He referenced a presentation of which he’d been a part, given to Dr Joan Clos (a former mayor of Barcelona), the Executive Director of the United Nations Human Settlements Programme, UN-Habitat, which promotes socially and environmentally sustainable towns and cities, with the goal of providing adequate shelter for all. “In this conversation, one of our colleagues threw in the concept of transit-oriented developments as one of the new urbanisms we were considering to influence spatial policy, and through spatial policy, of course, social process, in our city,” said Tau. “He gave us an interesting response to that: ‘Mandela spent 27 years in prison just so you can plan your cities for the car? You struggled for so many years simply so you can build cities for mobility as opposed to building them for people?’

And that’s stuck with us in the city – we ask ourselves what sort of cities we’re building. What underlines and underpins our spatial policy, and what are the policy objectives we seek to achieve? So it’s evolved to the point where we’re now talking about spatial policy in a manner that’s more inclusive of different uses in our city.”

People matter. A central theme of the Convention became the apartheid legacy of how South African cities were laid out, and how this mitigates dramatically on the majority of the population who can’t access our cities’ economic possibilities: how to rethink our cities, address and redress the inequalities.

Another recurring theme was the critical importance of improving communication, co-operation and trust between the private and public sectors – vital to unlock opportunities, generate jobs, and ensure a single vision. And then up stepped Evita. The lightness of powerful Evita Bezuidenhout – satirist, performer, author and social activist – who swanned onto the stage in one of her fetching little numbers and held delegates in the palm of her hand, drove home strong political points sugar-coated in her uniquely South African brand of humour – humour that touches South Africans in all the right (and wrong) places. She was on top form, wonderfully irreverent and delightfully biting. Among the seriousness of economics and politics of property, Evita’s fresh take was welcome as everybody enjoyed a laugh, essentially at their own expense.

Kobus van der Vyver is the Property Development Manager for Urban-Econ Development Economists. He shared the


Minister of Finance Pravin Gordhan

FROM LEFT SAPOA CEO Neil Gopal and Executive Mayor of the City of Jo’burg Parks Tau

The opening ceremony



company’s research report on how the property sector impacts the Gauteng economy, and how the relationship between key role-players impacts on provincial economic growth. He stressed the importance of role-players engaging in active conversations to better understand each other’s unique and opposite positions. “It’s only when we have a mutual understanding that we can make the right decisions and � nd the solutions we need for the bene� t of us all,” he said. “Our conversation can’t only stay with spoken words; it must inspire our actions.”

He used the analogy of a family: a mother, a father and a child, where the relationship between the parents (representing the private sector development fraternity and the public sector) impacts on the child (the market). He detailed their speci� c roles, and unbundled the good, the bad and the rather ugly. “This dynamic can be very e� ective if the relationship is healthy and the parties are communicating well – a partnership,” he said. “But it can only work well if both parties play their part – the child is the main bene� ciary when mom and dad are working together as a team, and the biggest loser if they’re not.

“In the Gauteng context, the property sector contributes about R50-billion to the GDP (2015 � gures). That’s 7,5% of the provincial share and three percent of national. This sector sustains just under 350 000 direct jobs – eight percent of Gauteng’s total employment pro� le and two percent of national. And then there’s R2,5-billion in tax revenue from this sector – that’s a high 50,7% of the provincial tax base and 5,7% of national.”

Van der Vyver’s report detailed the result of a disconnect between the public and private sector – distrust, poor communication, lack of understanding of each other’s needs

and limitations, blame shifting and being on the back foot. The result of that is signi� cant delays in application administration. The impact? He gave an example. New business sales: 30-day delay = R2,8-million (R90 000 per day); GDP generated: 30-day delay = R770 000 (R25 000 per day); employment: two jobs per month; income: 30-day delay = R530 000 (R17 000 per day)

Frankly, he said, “The property sector makes a huge contribution to the economy. It also has the potential to do more, and we should therefore seriously consider � xing anything that is restrictive to this sector.”

The � rst of a number of thought-provoking panel discussions of the Convention was next, facilitated by François Viruly who is a Professor in Property Studies at the University of Cape Town’s Nedbank Urban Real Estate Research Unit. Alongside keynote speaker Kobus van der Vyver were guest panellists Mike Schussler (keynote speaker and economist); Rashid Seedat (Divisional Head: Gauteng Planning Commission at the O� ce of the Premier); Yondela Silimela (Executive Director: Planning & Development for the City of Jo’burg); and Andre du Plessis (Deputy Director: City Planning & Development for the City of Tshwane).

Viruly initiated the discussion on the role of the real estate sector in the promotion of economic growth and development in South Africa. He raised a point that he alludes to frequently (and, he says, he’ll do repeatedly): “Still in South Africa we have people who live in 40m², 40 kilometres from where they spend 40% of their income on transport, and who sometimes live in a community that is 40% unemployed. The challenge we have in the public and private sector is how to change those numbers.”

He added that the property sector is not just an outcome of the economy (as in “we have so much economic growth, hence we need so much space”) but that the property sector itself can be a catalyst for economic growth and development in terms of the type of space we provide and the urban design with which we are involved.

Opinions came fast and furiously. Silimela made a point about design, and the challenges presented by the fact that the cities of 2050 will be nothing like we imagine, while Van der Vyver stressed the importance of the private sector’s active participation at city planning level to ensure that the city’s plans align with what the market wants. “The private sector has a depth of experience, and their input is important,” said Van der Vyver. Schussler referenced infrastructure, who pays for what, and the potential impact of this:


Evita Bezuidenhout

François Viruly, Professor in Property Studies at the University of Cape Town’s Nedbank Urban Real Estate Research Unit

FROM LEFT Kobus van der Vyver, Property Development Manager at Urban-Econ Development Economists; Yondela Silimela, Executive Director: Planning & Development for the City of Jo’burg; Rashid Seedat, Divisional Head: Gauteng Planning Commission at the O� ce of the Premier; Mike Schussler, keynote speaker and economist; Andre du Plessis, Deputy Director: City Planning & Development for the City of Tshwane


“The public sector is saying to the private sector, you can build that shopping centre – but you’ve got to build the road to it.” The rami� cations of that are complex, and became another theme at the Convention. For Schussler, public sector investment isn’t there; others disagreed, and still others had a Plan B – even a Plan C. In response to Viruly’s question about the system promoting larger developers rather than smaller, Du Plessis said this was certainly the case in Tshwane: “The spatial planning also focuses, just like Johannesburg, on nodes and corridors, and the development goes into that. From Tshwane’s side, we see that we have to look at the smaller developer and speci� cally the residential areas. Over time, suburbia can’t remain as it is – the single residential type of one house. We’ll have to allow much more uses with the densi� cation.”

It was then time for a visual presentation of the nominees for the SAPOA Journalism Awards for Excellence, sponsored by JHI Properties. Property journalism isn’t the poster child of the journalism world, but for the property sector it’s a vitally important

one, which certainly deserves recognition –and would receive just that, at the following night’s gala dinner, when the winners would be announced.

“REITs: A Global View” was the topic presented to delegates by Ian Anderson, Chief Investment O� cer of Grindrod Asset Management. Historically, he explained, few realise that many South African listed property companies or REITs have a longer track record than most of their US counterparts. “Today, I think most people are very much aware that an investment in South African REITs has been fantastic. The local REIT market has outperformed equities and bonds. I don’t even bother putting cash in there because it’s like a � at line,” he said. “I can remember back in May 1999, the � rst REIT in South Africa exceeded one-billion in market cap. Today, that’s where you have to start if you want a successful listing, and we’re waiting for the � rst R100-billion REIT. As we’ve seen in the US, the UK, Australia, Canada and other REIT markets, there’s been a signi� cant surge in the growth of the public real estate market here.

But we’ve still got a long way to go in order to convert institutional quality real estate into public real estate. And South Africa is probably only about 12% to 15% of the total institutional property market represented by REITs.

“Many people are critical of the South African REIT market, saying it’s signi� cantly overvalued, but they’re using just one method – comparing the current yields on South African REITs to what they were able to achieve 10 or 15 years ago. What they’re not doing is fully appreciating the changes that have happened within the listed sector.

“What we have today are operating companies, not funds. People still refer to these things as just vehicles that own property and you collect rentals on them. These are businesses.

“Today, the capital-allocators and fund managers like myself – and I’m not advocating this, I’m just saying what my fellows are advocating – are telling users of that capital, that the REITs should go o� shore. That’s where they see value. They’re worried about


FROM LEFT Daniel Silke, Director of Political Futures Consulting; Pieter-Dirk Uys, satirist, performer, author and social activist; Mzwanele Manyi, President of the Progressive Professionals Forum; Victor Kgomoeswana, author, African business specialist and B-BBEE consultant Political commentator and author Justice Malala

FROM LEFT Bronwyn Corbett, Chief Operating O� cer and Chief Investment O� cer at Delta Property Fund; Laurence Rapp, CEO of Vukile Property Fund Limited; Steven Brown, Executive Director of Fortress Income Fund

Ian Anderson, Chief Investment O� cer of Grindrod Asset Management


the South African economy, the South African property market, about the ability of their tenants to pay their rent, to grow their rent. They’re worried about market rentals. What we’ve seen is an increase in the allocation by SA REITs to markets away from South Africa.”

Talking REITs were panellists Bronwyn Corbett (Chief Operating Officer and Chief Investment Officer of Delta Property Fund), Steven Brown (Executive Director of Fortress Income Fund) and Laurence Rapp (CEO of Vukile Property Fund Limited), with Ian Anderson facilitating.

Rapp concurred with Anderson about viewing themselves as CEOs of running businesses, not simply running a fund. “So as a business, we have to take a longer-term view as to where we see our business in five, 10, 15 years’ time,” he said. “We think it’s prudent to diversify out of the macroeconomic fundamentals in South Africa. You have to get into other markets as well.”

To Anderson’s question about the market still not fully appreciating the opportunities in Africa (or being wary about them), Corbett said, “We see the growth coming out of the continent, not necessarily out of South Africa. The reality is that South Africans are fearful of what is going on on the continent.” Her point? Don’t confuse South Africa with Africa.

“Our job is to find the opportunities that actually create the value in real estate, and I think that’s really what we’re looking for,” said Brown. “And that’s possibly moving out of the listed stuff into developments, into adding a lot of value in an asset class that we’ve come to understand really well in South Africa. Although there are a lot of differences, there are a lot of similarities, and I think South Africans have a tremendous experience in real estate and capital markets.”

Session two began with Pieter Engelbrecht, Chairperson of SAPOA’s Innovative Excellence Awards Committee, who showcased the entries shortlisted for the various awards.

Philip J Paphistis, CEO of Hamleys




Once again, winners were to be revealed at the grand gala dinner the following evening.

Political commentator and author Justice Malala stepped up to microphone with his metaphorical book in hand: “We Have Now Begun Our Descent: How to STOP South Africa Losing its Way”. All delegates were present and keen to hear his view on the way forward, and whether his printed word was still gospel. “Is there going to be another event that will have the sort of impact that December 2015 had on your properties, investments, currency and so on?” Malala asked. “What can we look out for to be able to navigate the world we’re in politically and be properly prepared for such an event?” How do we continue to build without being diverted by the noise of our politics … a noise, he said, that most of the time, we – like many others worldwide – (kind of ) like.

He highlighted a few key issues: for example, if our institutions are working, don’t worry about the noise. Our Public Protector works. FeesMustFall and Nenegate showed that civil society has a voice. But do worry about nine-million unemployed – it’s a big issue at the heart of this society. So too is race. He also believes there’s a trend that says business has not come to the party and is not informed enough: “You’re going to see that more and more in our politics.”

The panel that joined Malala was a diverse, lively and very vocal mix of Mzwanele Manyi (President of the Progressive Professionals Forum), Victor Kgomoeswana (author, African business specialist and B-BBEE consultant), Pieter-Dirk Uys (satirist, performer, author and social activist) and Daniel Silke (Director of Political Futures Consulting). Views converged as much as they diverged, with Pieter-Dirk Uys adding the necessary levity. “The elephant in the room here is the word leadership – on every level of our existence. Leadership in family, in community, in municipal government which, I think, at the moment, is the future. If on 3 August we involve ourselves as we should and must as citizens of a country and get proper professional incorruptible municipalities as a foundation to central government, we’ll be � ne – because that’s what democracies do. If we don’t do that, I promise you, we will meet each other on the Croatian border with a Pick n Pay bag in our hands.”

After heated exchanges all round, McKaiser said in frustration: “It seems that we have an intractable problem in this country just at the level of analysis if we can’t agree on the state of the State, if we can’t even have at least some decent overlapping consensus about the direction of the major challenges…”

But Silke felt there’s a lot more that unites us as South Africans than divides us. “I suspect if you put us all together in a room, no matter what our political persuasion, we would be able to compromise,” he said. “We must keep a very broad mind and move away from narrow ideological paradigms that I think hold us back.”

What better speaker to follow the world of politics than Philip J Paphistis, CEO of Hamleys in South Africa (Ensolor is the holding company) – “the � nest and oldest toy store in the world”. He took SAPOA delegates on his personal business journey to today, as the somewhat surprised owner of a toy store – something he says he never imagined himself doing or being. Paphistis described the process behind Hamleys entry into the South African market, showed delegates the grand opening, and shared his vision for the future. It was a lively presentation and a joyful toy story with a very happy ending in Cape Town’s V&A Waterfront.

And so it was a wrap for day one of SAPOA’s Convention – other than the wonderfully welcoming cocktail function sponsored by Remote Metering Solutions, Tongaat Hulett Developments, Fortress Income Fund and Nedbank Corporate Property Finance. It was a time for networking, raising glasses, digging into the magni� cent spread and enjoying the live band; a � tting way to unwind at the end of a stimulating day.

Bright and early the next day, the ladies’ breakfast took place at Tashas – or rather, Tashas came to the convention centre. The SAPOA Women’s Annual Breakfast was a glamorous, gourmet a� air, the table decor and delectable eats topped only by the words of the inspirational creator of the now-legendary Tashas restaurants, Natasha Sideris.

Creator of the now-legendary Tashas restaurants, Natasha Sideris


FROM LEFT Simon Freemantel, Senior Political Economist at Standard Bank; Dennis Dykes, Chief Economist at Nedbank JP Landman, political/economic trends analyst


This energetic, passionate yet unassuming dynamo who has created a boutique brand now entirely synonymous with success (almost against all odds) and a unique franchise model that has raised the bar substantially, had everybody eating out of the palm of her hand. She calls Tashas “the anti-franchise franchise”. She was no trust-fund kid with handouts, but rather somebody who – working alongside her chef and restaurateur father, who taught her almost everything she knew or knows about cuisine – arrived at a fork in the road. As the suggestion always goes, she took it. She saw an opportunity, barely paused and seized it. Today, there are 13 Tashas restaurants in South Africa, and one in Dubai. Within the next six months, there’ll be another two in South Africa, and six in the Middle East.

Natasha made her breakfast guests walk in her shoes, and share her first driving force: “I just wanted to make people happy,” she said. “That’s all.” She worked from the inside out, with the why, then the how and finally the what. She shared her gems, which she believes are at the heart of her success. Two stood out: the 10 000-hour rule – you need to work that number of hours to succeed. The other one? “Don’t let a lack of funding deter you from pursuing your dreams.” She lived by that one, borrowing money from shady money lenders, and spent years and years earning little as she repaid the debt. Does she regret it? No. Today, she’s a legend in the industry and given her smart, intuitive approach to a creative industry, nobody was surprised to hear she’d originally wanted to study psychology.

Up stepped JP Landman, an analyst who specialises in political economic trends. He presented his views to the delegates on “Economic Presentation: Local, Macro and Global Perspective”. He was blunt: “I have a very limited view of economics. For me, economic growth means absolutely nothing – unless you can see it in the context of population growth. What is economic growth? It’s nothing else but a process of generating more cash flow, generating more income. What is the good of generating more income if you’re making babies at a much quicker speed? Then you’re not going anywhere. So the trick is to have economic growth in excess of your population growth.” He tidily proved we’re not. “So clearly we’re in a bad spot – and that affects not just the economic but also the political and social development context of our country,” he said.

His description of where the economy is now, is “a phase of austerity-lite”.

“I still put my faith in the fact that if we can restore electricity and we get good rain, those two factors alone can help to push our growth back to a substantial margin above population growth,” he said. “The story that South Africa is not investing in infrastructure is simply not true. What is true is that all the dividends have not come through yet – and they will in due course. That must materialise.

“For us as individual businesses – and particularly for you – structural transformation is the thing on which you must focus. You can’t do much about electricity or the rain. But what is within your power is to build your own individual business, whether it’s farming or property development. Build in such a way that you see a constant improvement in productivity, either because you do new things or you do old things in a new way. That’s the way you’re going to leave the recession; that’s the way you’re going to ensure your own survival.”

Facilitated by McKaiser, the panellists – in addition to Landman – included Simon Freemantel (Senior Political Economist at Standard Bank) and Dennis Dykes (Chief Economist at Nedbank).

As Dykes said, “The political situation has definitely played into the economics, and it’s played through a number of different avenues. Even if you’re looking at the spending that JP is talking about – the significant spending on infrastructure – you’ve got to look at the effectiveness of it. Are you getting enough bang for your buck? I think there’s a strong case that it’s very delayed and you’re not actually seeing

an efficiency of spending coming through.” Freemantel pointed to the state entities, suggesting that not all of them are problematic. “But some of them are of substantial value in business, and the reform of those State entities – and the way they manage themselves – again rests on political decision. So SAA is increasingly being seen as a indicator as to how committed government is to take tough political decisions in the interest of lessening the burden on the fiscus.”

Landman signed off with this: “In 1943, Cornelius de Kiewiet – looking at South Africa’s history up to that point – made this one absolutely profound comment: ‘South Africa is a country that progresses through political disasters and economic windfalls.’ I don’t think that has changed since 1943. Politics have always been a spoke in the wheel of South Africa’s economic growth. Could we have grown much more? Yes of course.”

It was an opportune moment for delegates to take a step back from the present to see into the future, in the form of an uplifting inaugural address by the new SAPOA president Nomzamo Radebe, CEO of JHI Properties Pty Ltd.

The next plenary session was shared by two eminent speakers: Robert McGaffin (senior lecturer in the Department of Construction Economics and Management at the University of Cape Town) and Gary Goliath (urban specialist at the World Bank. The topic? Delivering successful urban environments through property sector partnerships – based on the research done by the University of Cape Town and funded by Nedbank Corporate Property finance.

McGaffin spoke about “Value Capture in South Africa: A Way to Overcome Urban Management Challenges and Unlock

Mike Deighton hands over SAPOA’s presidential reins to Nomzamo Radebe

SAPOA Past President Mike Deighton with CEO Neil Gopal




Development Opportunities”. He had a noticeable response to the question he posed to delegates: “How many of you have had a project that’s been stopped, curtailed or constrained because of infrastructure problems?” He then presented the research with which the University of Cape Town had been involved, investigating why that’s the case and what could be done to address the issue. “Historically, we’ve had the State provide the infrastructure and recoup that investment over time, generally through developer contributions. This model is increasingly coming under pressure.” Enter the concept of “value capture”: “Really simply, value capture is the sharing between State and the private sector of increased property values that result on the back of public investment.” Dykes used the Gautrain as a good example. “There’s always been this big debate around ‘did the public sector get a return on the Gautrain?’ A lot of public investment went into that, and property values increased on the back of it. Should that value be distributed in a more equitable way?

“In the past, the total value would have accrued to the private player, the private land owner. What they’re saying is that actually what you need to do is take o� a portion of that value. Not all of it – just a portion to accrue back to the public sector. That can occur in a number of ways. I think they could help municipalities raise local revenue, which is critical. It enables the municipalities and the private sector to respond to development opportunities when they come along.”

Is there an appetite for it?Sharing the stage, World Bank’s Goliath

spoke about “Funding public sector infrastructure through real estate markets – an international perspective”.

He examined a speci� c case study involving tax increment � nancing (TIF), and how it played out at The Wharf in Washington. “Essentially everyone is supposed to win if a TIF is done correctly; all three parties,” he said. “The city expands its revenue base over a period of time. It is able to decrease the balance sheet pressure that seems to be increasingly problematic in South Africa. From a developer’s point of view, you have a site that would otherwise never have been used, and a new opportunity to develop. For residents, new public open spaces, perhaps better transit-oriented development that could have happened, more a� ordable housing in an area.

“It’s obviously an untested product in South Africa but it’s not speci� cally forbidden. There are ways to get it through, but there are going to be a few hoops that we need to jump through in order to make sure that it � ts within our regulatory and legal framework. It’s a very new concept. We’ve got the right tools in place, the depth of � nancial markets and the expertise, but this in and of itself hasn’t been done, so there are going to be potentially high interest rates and potentially high transaction costs. And that’s just the reality of the environment.”

Professor Viruly welcomed the panellists: David van Niekerk (The Neighbourhood Programme: National Treasury), Alan Dinnie (Senior Manager: Property Development at the Joburg Property Company) and Catherine Ko� man (Head of Infrastructure and Telecommunications at Nedbank Corporate and Investment Banking), together with speakers Goliath and McGa� n. Ko� man believed TIFs were an exciting concept, and one that had been done: “National banks are doing it quite actively in Europe. It’s all about the right legislative framework,” he said.

“I think it’s a great model.” McGa� n said that “We need to put it in place and actually see how it works – I’m interested to see what the appetite will be like as to how much of it will be sitting on(or o� ) a balance sheet.” For Van Niekerk, “The focus on property in municipalities is certainly coming to the forefront, and that has two implications. One obviously that municipalities are becoming more property-savvy and understanding the values of property, but also it makes it easier for the private sector to interact with the municipalities because there is an understanding of the motives and processes within the municipality.”

Next up on the podium was Professor Anthony Turton, Chairman of the Board of Gurumanzi and a water strategy specialist. He told it like it is about water security in “South Africa’s Water Crisis: Is the Water Crisis the Country’s New Eskom?” Bottom line, she says, is that water is not just about water – it’s about political power at localised level. “What is energy about? What is the Eskom crisis about? One thing only: reassurance of supply. Is there energy on the grid at any one moment in time? Absolutely. Can we guarantee that on Monday next week at 1.30pm at this particular location there will be electricity? No we can’t. If you basically drill down to assurance of supply, I believe this is the common link between energy and water. It comes down to the inability to plan, budget and procure it in time.

“I don’t think there’s any company that can survive in South Africa today without a fairly sophisticated energy strategy, and I would argue that the same is going to hold true with water.

“I’ve tried my very best to get the President to get up and say the following: ‘Our national economy is fundamentally water-constrained


FROM LEFT Catherine Koffman,Head of Infrastructure and Telecommunications at Nedbank Corporate and Investment Banking; Gary Goliath, Senior Urban Development Specialist, The World Bank; Alan Dinnie, Senior Manager, Property Development at the Joburg Property Company; David van Niekerk, The Neighbourhood Programme, National Treasury; Robert McGaffin, senior lecturer in the Department of Construction Economics and Management at the University of Cape Town.


therefore our future lies in recycling and recapture. Our target by 2035 is R1,65-trillion.’ That’s what has to be said. If you say that’s a national policy, then all this is going to go away and we’re not going to have a problem. The problem in water is the quality of expended water because water is an infinitely recyclable resource.”

From the future of water to a different future: “The Future of the Telecom, Media and Technology (TMT) Workplace”, presented by Richard Golding, International Director/Head of Global Occupier Services UK & I, Cushman & Wakefield. “If you don’t have some element of technology, media and telecoms in your business, you aren’t necessarily growing. You’re probably going backwards.” And then, relating specifically to property, “The pace at which you have to adapt in real estate, you need to be visionary. Buildings take long, and you’re deciding on where the current 14-year-olds want to work, what type of building they want to work in, and so on. We need to be thinking smart as to what that means. And it’s all about cities, about building flexibility. I’m talking about potentially three or four generations in

one building – how do you do that? Everyone packed together, everyone wanting something different. Look at Google: what they’re all about is getting to something called the ‘20% me-time’ – getting people away from their desks into environments where they can actually do things other than just process what’s going on. It’s all about getting people into an environment where they can excel at what they do. One size doesn’t fit all – but one principle does.”

Then the tide turned, and technology was taken to another level when John Vickerman, President of Vickerman and Associates LLC, took SAPOA delegates for a ride … to the Panama and Suez Canals. He shared the impact of the canal expansion projects and evolving global trade and transportation trends for Africa, in particular sub-Saharan Africa. Vickerman builds ports worldwide, and his astounding depth of knowledge around increasing transport needs, ships, and containers and the complexities of their routings made for fascinating viewing and listening. Vickerman explained the impact of the recent expansion of the Panama Canal, and how shifts in

routing opened any number of possibilities for trade. It was a riveting presentation, and like many of the presentations throughout the Convention, it took delegates away from the concerns within our borders and put South Africa in Africa – and in the world. The Convention examined local, but went global.

And so SAPOA’s 50th Anniversary Convention & Property Exhibition drew to a close, barring the shouting, partying and final celebrations. The glittering SAPOA gala dinner and awards evening began at 7pm, and more than 1 000 delegates in ball gowns, traditional dress, black ties and jackets paraded up the red carpet into the magical venue. It was a night of stars, a grand celebration of those who’d excelled, a farewell to those leaving, a warm welcome to those arriving, and a heartfelt thanks to all those who’d contributed to make SAPOA’s 50th year – and this Convention – such a memorable one. Delegates dined, wined, danced and applauded SAPOA’s numerous success stories – half a century of serving the needs of the commercial and industrial property industry, a true milestone.


Professor Anthony Turton, Chairman of the Board of Gurumanzi and a water strategy specialist

Richard Golding, International Director/Head of Global Occupier Services UK & I, Cushman & Wakefield

John Vickerman, President of Vickerman and Associates LLC


excellence awards

Fifty-six entries made it to the fi nal stages judging. The 2016 winners of SAPOA’s Innovative Excellence in Property Development Awards prove that innovation, beauty, attention to detail and the environment win out

Building bricks bound with beauty

Each year the quality of the entries improves and the constant striving for excellence

is more and more apparent. These awards go some way to recognising that dedication.

Although the aesthetic appeal is a major consideration, the awards programme takes a holistic approach to evaluating the various design, innovation and e� ciency elements that work together to marry corporate social investment, management and environmental policies, as well as the interior and exterior spaces. The panel looks for a “happy” marriage of skills to ensure that the built environment works for all who are involved with each building.

The judging process is meticulous and rigorous. The panel consists of peers in the property industry, all experts in their chosen disciplines. To be awarded recognition by them brings much kudos.

This year SAPOA has introduced an additional award to recognise the inner beauty of the work environments that we all are exposed to: an award for interiors.

Congratulations to the winners as well as to those that did not get to the podium this year. The competition was tight. Don’t give up and enter again next year – the limelight may next fall on your innovative 2016-2017 achievements.

OVERALL HERITAGE

OVERALL WINNER

REFURBISHMENT DEVELOPMENTS

International developmentsMatola Raid Monument and Interpretive CentreThe Department of Arts and Culture appointed

the Department of Public Works to execute the

design and construction of a monument and

Interpretive Centre.

The project commemorates the raid into

Mozambique on 31 January 1981 by the then-

South African government’s forces, which

attacked three strategically targeted houses

used by Umkhonto we Sizwe, resulting in

13 casualties.

The project is located in Matola. It forms

an urban space that has become a catalyst for

upgrades in the area, and a communal space

for the members of the community to meet.

INTERNATIONAL DEVELOPMENTS

Developer The Department of Arts and Culture Architects Impendulo Design Architects Quantity surveyors AECOM Civil engineers AECOM Structural engineers AECOM Mechanical engineers AECOM Other consultants Memory Inc Principal contractor Stefanutti Stocks Mozambique Lda Electrical engineers AECOM Fire consultants AECOM


Winner and Overall Winner, Overall Heritage Award, Refurbishment DevelopmentsLion Match Office Park The Lion Match Office Park is a redevelopment

project that’s rejuvenated an old warehouse into

a commercial space. The property is a heritage

site and is unique in its historical architecture

and iconic landmarks, so history and sustainable

design have formed the basis of the project.

The original 21 000m² property contained a

mixture of commercial and industrial space. The

year 2013 saw the start of the development of

this space into an urban business environment.

The now-26 000m² park is a wonderful

combination of office space, cafes, medical

facilities and various other services. The

redevelopment included a new parking

garage and a new building, designed

according to provincial heritage agency

AMAFA’s requirements and in keeping with

the area. Nestled alongside the railway line

with views of the ocean and rugby fields, the

new building has been a highlight of the project.

The Lion Match Office Park is well positioned

between Durban’s stadiums, close to transport

facilities and major routes, and central to the

city’s “Golden Mile”.

Developer JT Ross Architects Dean Jay Project managers JT Ross Quantity surveyors JT Ross, MLC Quantity Surveyors Civil engineers Hatch Goba, May Houseman & Associates Structural engineers Hatch Goba, May Houseman & Associates Mechanical engineers BD&O, AECOM Principal contractor JT Ross ConstructionElectrical engineers BFBA Consultants Fire consultants Dynamic Fire Solutions, AECOM

The judges Pieter Engelbrecht, Growthpoint Properties (Pty) Ltd

Andries Schoeman, Delta Property Fund (Pty) Ltd

Anthony Orelowitz, The Paragon Group

Beata Kaleta, DSA Architects

Andries Schoeman, Delta Property Fund (Pty) Ltd

Christian Roberg, Abland

Dean Narainsamy, AECOM

Corné de Leeuw, DelQS Quantity Surveyors

and Property Valuers

Craig Sutherland, Sutherland

Multidisciplinary Engineers

Hashim Bham, BTKM Quantity Surveyors

Itumeleng Mothibeli, Vukile Property Fund

John Truter, WSP Group Africa Structures

John Williamson, MDS Architecture

Ken Reynolds, Nedbank (Pty) Ltd

Nonku Ntshona, Nonku Ntshona & Associates

Quantity Surveyors

Queen Mjwara, Eris Property Group

Rudolf Nieman, Sterikleen

Sam Silwamba, Old Mutual South Africa

Sandi Mbutuma, Azzaro Quantity Surveyors

Stuart Gibbs, Zenprop Property Holdings

Wessel van Dyk, Bentel Associates International

Zinon Marinakos, DSA Architects International

Office Developments: Corporate MultiChoice CitySited on the prominent corner of Bram Fischer

Drive and Republic Road, the contemporary

design of MultiChoice City comprises four

parking basement levels and four office levels of

approximately 35 000m², generously arranged

around a striking central atrium. A subterranean

tunnel links the new and the old part of the

campus, and a bold angular pedestrian bridge

(still under construction) will connect internal

pedestrian traffic around the campus over Bram

Fischer Drive.

A noticeable feature of the new building

is the curvilinear façade on an element of

the scheme on the Bram Fischer frontage,

nicknamed “the bean”. It is easily distinguishable

with its swooping, glazed brise soleil providing

sun control to this elevation. The edge of the

bean morphs the rectilinear urban edge of

the street block and draws in pedestrians from

the street.

Once inside the building, a multi-storey

atrium covered with a long span ETFE

(ethylene tetrafluoroethylene) roof floods the

space with daylight. The atrium has several

pause areas and breakaway zones, where staff

and visitors alike can interact and animate

the space.

OFFICE DEVELOPMENTS CORPORATE

Developer NMS Properties Architects Grosskopff Lombart Huyberechts & Associates Architects Project managers M Studio Quantity surveyors BTKM Quantity Surveyors Structural engineers Pure Consulting Mechanical engineers C3 Climate Control Consulting Engineers Other consultants Dsgn, Insite Landscape Architects, Izazi Consulting Engineers Principal contractor Group Five Electrical engineers OneZero Fire consultants TWCE Green/sustainable consultants Solid Green Consulting


excellence awards

Each unit has a private bathroom and kitchen,

Telkom, internet and DSTV connectivity, as well

as quality finishes and a prepaid electricity meter.

The quality is continued in the successful upgrade

of the ground-floor retail area.

The “Place” brand, established by City Property

Administration (Pty) Ltd, is recognised in

Gauteng for high-quality apartments, amenities,

security, cleanliness and excellent service over

its years of providing the market with excellent

residential accommodation options. Frank’s Place

is no exception, as attested to by tenants who are

already living in the apartments.

Occupation of the building commenced in

June 2015, and it was already 77% let by

December 2015. The demand levels being

experienced have once again confirmed the

owner’s strategy of continued investment in

the inner city, providing high-quality affordable

accommodation and retail.

Refurbishment Developments Four Seasons The WestcliffIt’s an iconic hotel reborn: the new Four Seasons

The Westcliff in Johannesburg is a stylish urban

resort. Situated on Westcliff Ridge and offering

panoramic views across Johannesburg Zoo and

the suburbs of Forrest Town, Saxonwold and The

Parks, the hotel is conveniently close to business,

culture, shopping and leisure activities. Located

just 40 minutes from OR Tambo International

Airport and Lanseria International Airport, it

serves as a gateway to all of southern Africa –

ideal before or after a safari in Botswana or the

Kruger National Park.

The refurbishment of the hotel was extensive,

and included the redesign of kitchens and food

and beverage outlets, and the creation of a new

spa and gymnasium on the site of the original

tennis court and covered parking. A major new

feature are the twin panoramic glass lifts, which

take guests to the upper terrace and restaurants.

The hotel has 117 guest rooms, which include

executive suites and presidential suites. The five

contemporary dining and bar venues generate

a vibrant social scene.

Embodying the excitement of Johannesburg’s

urban revival, Four Seasons Hotel The Westcliff

offers five-star luxury hotel accommodation in

the city’s prestigious northern suburbs.

RESIDENTIAL DEVELOPMENTS

Developer City Property Administration (Pty) Ltd Architects Gass Architecture Design Studio Quantity surveyors SSQS Trading (Pty) Ltd Structural engineers WSP Group Africa Mechanical engineers AConsult (Pty) Ltd Principal contractor Tri-Star Construction Electrical engineers CKR Consulting Engineers Fire consultants Building Code Consultants

REFURBISHMENT DEVELOPMENTS

Developer 80 Westcliff (Pty) Ltd Architects DSA Architects International Project managers 80 Westcliff (Pty) Ltd, HPL Properties (Pty) Ltd Quantity surveyors Theba Consultants & Quantity Surveyors Civil engineers WSP Structures Africa Structural engineers WSP Structures Africa Mechanical engineers Ace-Tech Design Other consultants Ashton Developments, Ferro Brothers, Jacket Interiors, Melamed, Promanser Electrical engineers Ace-Tech Design Fire consultants JM Consultants

Residential Developments Frank’s PlaceFrank’s Place (old Bosman Building) in the

Johannesburg CBD epitomises contemporary city

living and supports the owner’s strategy of urban

renewal in the Johannesburg and Tshwane CBDs.

It is well located in terms of public-transport routes,

workplaces, shopping amenities and schools.

The development is a conversion of a vacant

office building into 225 modern apartments with

133 parking bays, boasting a communal braai area,

basketball court and kids’ entertainment area.


Office Developments: Commercial Ridgeview Office DevelopmentThe Ridgeview commercial office building,

developed and owned by Growthpoint Properties,

was completed on 19 December 2015. It is

prominently positioned alongside a busy traffic

circle near the Gateway Theatre of Shopping and

located in the prestigious Ridgeside Office Park,

a sought-after office node in Umhlanga. It is one

of two buildings on a shared site, designed with

a shared super-basement and common facilities

to maximise efficiencies in capital costs and

operating costs, and minimise the impact on

the environment. Ridgeview consists of four

basement levels, with four levels of offices above.

The total GLA of the building is 6 650m², of which

about 50% has been let to key tenant AECOM

South Africa (Pty) Ltd.

Ridgeview is the first building in Durban to

achieve a 5-star Design Rating from the Green

Building Council of South Africa, and the AECOM

interior fit-out is currently being assessed for

an official 4-star Green Star Interiors v1 Rating.

Ridgeview is a frontier for green buildings in

KwaZulu-Natal. With an optimum design and

an innovative filtered glass façade and glass

fritted fins, it has set the industry benchmark

for an iconic-looking and efficient green office

building in South Africa

Mixed-Use Developments The MirageOn the border of the historic De Waterkant and

Bo Kaap districts in Cape Town, The Mirage is

a contemporary mixed-use development that

faced the challenge of erecting a modern

building in a sensitive heritage area.

The building is on the very edge of the CBD

zoning boundary, which has generous bulk and

height allocations. Outside of this boundary, from

Hudson Street onwards, the zoning allocations

are more onerous, which highlights the contrast

between the two zones – essentially the new city

meeting the old.

One of the major considerations was making

a connection with the street. The upper storeys

were an exercise in mitigation and balancing

between the design and maximising the square

meterage. The building is divided into a number

of elements, including retail, hotel, luxurious

private apartments, and rooftop terrace and bar.

The street level is “capped off” by a horizontal

glass light box that runs around the building and

acts as an effective transition to the upper levels

– especially when lit up at night – achieved largely

by the inconspicuous parking levels within.

Another vertical light box runs up the lift

shaft on the outside of the building, emphasising

the corner of Strand and Chiappini streets.

MIXED-USE DEVELOPMENTS

OFFICE DEVELOPMENTS COMMERCIAL

Developer Growthpoint Properties Architects Elphick Proome Architects Project managers AECOM Quantity surveyors FWJK Civil engineers Hatch Goba Structural engineers Hatch Goba Mechanical engineers Aurecon Principal contractor WBHO Fire consultants Aurecon Green/sustainable consultants AECOM

Developer The Nova Group, Careline Living Spaces Architects Kevin Gadd Architects cc Project managers The Nova Group Quantity surveyors Rubiquant Civil engineers Sutherland Engineers Structural engineers Sutherland Engineers (Pty) Ltd Mechanical engineers Sutherland Engineers Principal contractor Nova Build (Pty) Ltd Electrical engineers McAvinchey Consulting Engineers Fire consultants Sutherland Engineers Green/sustainable consultants Terramanzi Group


excellence awards

which allows for the building’s optimal

orientation for sunlight and views, reduced

walking distances, ease of control, and flexibility

for change and future expansion. An interior

way-finding system was developed combining

multiple languages, colours, pictograms and

artwork, created by community and staff,

which imbue a clinical and sterile institution with

life and colour.

A total of R97-million was invested in the

employment, training and skills development of

local businesses, individuals, children, disabled

persons, rehabilitated drug-users and ex-convicts

during construction, integrating community

involvement into the very fabric of the institution,

and redefining the legacy and service of healthcare

in South Africa.

Industrial Developments New Development for HiltiEmpowered Spaces Architects’ design for Hilti in

Atterbury’s Waterfall Logistics Precinct consists of a

1 700m² warehouse and a 2 000m² office building.

Juxtaposed against the surrounding

developments of the precinct, the entrance is a

mirage of high-performance, environmentally

friendly tinted glazing, fringed by spandrel panels.

The glass façade allows for maximum natural light

to illuminate the lobby and office space, while the

spandrel panels limit the harsh western sunlight

and allow for comfortable working conditions.

Energy-efficient fittings and air conditioning are

apparent throughout, with sufficient insulation

in the walls and roof allowing for optimum

conditions throughout the rest of the building.

The unique angled roof aids in the modern

aesthetic of the warehouse – it wraps over the

office space, encapsulates the otherwise invisible

warehouse and peaks over the north-facing façade.

The interiors of the Hilti office building were

imagined and created by Empowered Spaces’

counterpart Ispaces, whose concept was derived

from Hilti’s corporate colours and equipment.

This meant blending bright-red elements into

subtle and understated monochrome surfaces.

Hilti products formed part of the office decals as

well as the signage.

INDUSTRIAL DEVELOPMENTS

OTHER DEVELOPMENTS

OVERALL TRANSFORMATION

Developer Western Cape government: Department of Public Works, Department of Health Architects Magqwaka Associates Architects, Munnik Visser Architects, New Era Architects Project managers Stauch Vorster Architects Quantity surveyors Mahlati Quantity Surveyors, SIBA Civil engineers Hatch Goba Structural engineers BSP Consulting Engineers, Nadeson Mechanical engineers BMDS Consulting Engineers cc, NAKO Triocon Other consultants Cecily Rocher Design, Lovell Friedman Principal contractor Aveng Grinaker- LTA Electrical engineers Jakoet & Associates, NAKO Triocon Fire consultants Keith Fletcher & Associates cc Green/sustainable consultants Amathemba Environmental Management Consulting cc, C2C Consulting Engineers, TKLA Landscape Architect

Developer Atterbury Property Architects Empowered Spaces Architects Project managers Empowered Spaces Architects Quantity surveyors IBP Central Civil engineers DG Consulting Engineers Structural engineers DG Consulting Engineers Mechanical engineers CKR Consulting Engineers Principal contractor Archstone Construction Electrical engineers CKR Consulting Engineers Fire consultants Specialised Fire Technology

Overall Transformation Award: Other Developments Mitchells Plain District HospitalMitchells Plain District Hospital sets a new

precedent for modern South African public

healthcare design, environmental sustainability

and community-centred institutions. The design

combined the input of a professional team

with the policy direction and experience of

the Western Cape Health Directorate of the

Department of Transport and Public Works, local

clinicians and the local community.

The hospital is located on five hectares of

a unique nature reserve, which was rehabilitated

and conserved during and after construction,

allowing for the building to be integrated in a

lush greenfield site. The planning was based on

a centralised “Mandala” compact repeating plan,


property, construction and quantity surveying

departments. The first Greenovate Awards were

held in 2015, and were set up with the University

of Cape Town, the University of the Witwatersrand

and the University of Pretoria.

Round one of the competition takes place

internally, i.e. within each university – the internal

selection and judging process here are up to

each university to decide. Each university’s panel

then selects the top two projects submitted by

student groups from each university. The top two

projects are invited to advance to the next round

(round two), which takes place in Johannesburg.

These top groups – the finalists – present to an

external panel of judges consisting of industry

experts and compete against one another for

a grand prize of R30 000.

The intention behind the programme is to

expose students to key focus areas concerning

sustainability within the industry, and introduce

the industry to available talent. The programme

will also act as a platform for Growthpoint

Properties to recruit prospective students for

graduate programmes and internships, culminating

in potential job opportunities. Essentially, the

awards programme assists students in entering

the market as advocates for green building with

a passion to create better and more sustainable

cities, towns and neighbourhoods.

INNOVATIVE DEVELOPMENTS

Developer Growthpoint Properties and the Green Building Council of South Africa Growthpoint Properties Werner van Antwerpen (Head of Sustainability and Utilities), Remy Kloos (Sustainability Manager) Green Building Council of South Africa Brian Wilkinson (CEO of the Green Building Council of South Africa) and Donne Atkinson (Education and Training Manager)

Innovative Developments The Growthpoint Greenovate Awards ProgrammeGrowthpoint Properties and the Green Building

Council of South Africa have initiated a joint

project to explore ideas for the development and

establishment of a Student Awards Programme.

This programme, known as the Greenovate

Awards, introduces university students to green-

building thinking and recognises excellence

in application.

The Greenovate Awards competition targets

students in their honours year of studies in the

Retail Developments Mall of the SouthZenprop Property Holdings, having identified

the Mall of the South as a retail development

opportunity, commissioned market research that

confirmed the need for a regional shopping centre

within the catchment area of southern Jo’burg.

One of the specifics arising from the research was

the above-average prevalence of a higher-income

profile of shoppers in the catchment area, which

informed the overall design of the shopping centre.

Zenprop is renowned for creating world-class

shopping centres, and the Mall of the South seeks

to set the new standard in shopping centre design

and construction. The double-volume design is

elegant and uncluttered, with wide walkways,

abundant natural light and detailed finishes. The

architecture is aesthetically stimulating, while not

compromising on efficiency and convenience,

culminating in the most exciting and luxurious

shopping centre Zenprop has developed to date.

Mall of the South accommodates 164 tenants,

anchored by Checkers, Pick n Pay, Game,

Woolworths and Edgars. South Africa’s top

national fashion retailers are complemented

by international fashion retailers such as H&M,

family eateries and fine-dining restaurants and

retail banks alongside a host of local operators.

Mall of the South regional shopping centre is

about 65 000m² GLA in extent, offers more than

4 200 parking bays for customers and is able to

expand organically.

RETAIL DEVELOPMENTS

Developer Zenprop Property Holdings Architects Vivid Architects Project managers WT Mcclatchey Quantity surveyors MLC Civil engineers Aurecon Structural engineers Sotiralis Consulting (Pty) Ltd Mechanical engineers Aurecon Principal contractor Aveng Grinaker-LTA Electrical engineers Aveng Grinaker-LTA Fire consultants TWCE Fire Protection Engineers


excellence awards

Interiors,Overall Green Award Google Head Office South AfricaThe Google Johannesburg project challenged the

design team at Boogertman + Partners Interiors

with a very unique brief. The workplace design had

to adhere to the Google corporate culture while

being responsive to the office’s locality and the

city’s charm. Furthermore, since Google is at the

forefront of sustainable design, it was part of the

interior brief to design a space that could achieve

a LEED Gold as well as an SA Interiors 5-Star Green

Star rating. The Google interiors successfully

implemented all the requirements and illustrated

that an interior project could incorporate an

attentive and sustainable approach through up-

cycling, recycling and reusing local elements, and

still produce an internationally acclaimed result.

The innovative way in which the great variety

of influences and flavours were incorporated into

a proudly South African interior was essential to the

project’s success. This project is a frontrunner in

office interiors because of its avant-garde approach

and authentic interpretation of a context-conscious

workplace design. Google Johannesburg not only

complied with the requirements of the Green Star

rating and LEED Gold certification, it also stepped

up to a different level through its interpretation

of the city’s riches within the interior.

INTERIORS

OVERALL GREEN

Interior architects Boogertman + Partners Architects Project managers Profica Quantity surveyors Turner & Townsend Mechanical engineers CKR consulting Principal contractor Trend Group Electrical engineers CKR consulting Fire consultants CKR consulting Acoustic engineers Linspace Kitchen consultants Talman & Associates Green/sustainable consultants Solid Green, Ecocentric, Ecolution Wet services CKR consulting

Creating and maintaining the highest standards in the engineered timber construction industry in South Africa

HEAD OFFICE SAFCA Building | 6 Hulley Road | PO Box 686, Isando, 1600Tel: +27 (0) 11 974 1061 | Fax: +27 (0) 11 392 6155 | Email: [email protected]

BRANCHESSouth / Eastern Cape | KwaZulu-Natal | Western Cape

www.itc-sa.org

SAQA ACCREDITED

®

ITC-SA CERTIFICATIONS

Image credit: Bosazza RoofingImage credit: PE Timber Homes

Institute for Timber Construction


SAPOA Journalism Awards

Dedicated, professional members of the media who excelled in reporting on the property industry and played a huge part in ensuring the public was kept informed were honoured at the SAPOA Journalism Awards For Excellence. The awards, sponsored by JHI Properties, serve to encourage journalists to strive to achieve the highest standards. A total of 35 entries were received this year

Excellence in reporting honoured at the SAPOA Journalism Awards for Excellence 2016

Property News Journalist of the YearMore attention than ever before was paid to this category. Entries received were strictly judged against the following criteria to ensure that basic journalistic requirements are met:

● Topicality ● Insight ● Pertinent comment ● Writing style, and ● Analysis

The winner Ray Mahlaka from Moneyweb. It is his first award in this category. He won Feature Journalist of the Year in 2015.

The runner-upJoan Muller from Financial Mail.

Property Feature Journalist of the YearEntries in this category were judged on:

● Originality ● Relevance and value to the

property industry ● Depth and accuracy of

researched information ● Analysis of topic covered, and ● Writing style

The winner Joan Muller from Financial Mail. It is her seventh win in this category; she’s previously received top honours in 1997, 1998, 1999, 2000, 2008 and 2011.

The runners-upThere were two runners-up in this category, because of the quality of entries submitted: Francini van Staden from Earthworks and Anne Schauffer from Property Professional and Business Day Homefront.

Property News Website of the YearWebsites in this category were rated on:

● Ease of navigation ● Up-to-date information and topicality ● Newsworthiness ● Overall visual appeal, and ● Relevance of content to

the property industry

The winnerSA Commercial Property News. This news website has won the category for five consecutive years.

The runner-up Africa Property News.

Property Publication of the YearThis was the most highly contested award. The quality of entries exceeded expectations, and the dedication of the editors and the teams that put these beautiful publications together did not go unnoticed.

Publications, both print and digital, were judged on:

● Immediate visual appeal and attraction

● Constant engagement of interest of its target-market reader

● Informative and educational ● Readability of overall publication, and ● Writing style

There were a total of 10 entries in this category.

The winnerArchitect & Builder.

The runner-up Earthworks.

A mixture of property professionals and property journalists judged all entries received on both these aspects. They were:1. Brian Azizollahoff, Managing Director

of Capstone Property Group2. Nomzamo Radebe, CEO of JHI Properties3. Rob Rose, Editor of Financial Mail4. Vernon Matzopoulos, Channel Head

of Business Day TV5. Mark Pettipher, Managing Director

of MPDPS

The categories, winners and runners-up

The judging panel

Architect & Builder: Property Publication of the Year 2016

SA Commercial Property News: Property News Website of the Year 2016

Joan Muller from Financial Mail: Property Feature Journalist of the Year 2016

Ray Mahlaka from Moneyweb: Property News (Journalist of the Year 2016)

Compiled by Maud Nale Photographs by Xavier Saer


exhibitor stand winners

Green standLarge standSmall standInnovation stand

Bidvest Bank: Internet CaféTongaat HulettThe Creative Axis ArchitectsHub Parking Technology

Winning exhibitor stands


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eye on the world

With the ever-changing local economic climate, many South Africans are looking for pastures new, and this 268 021km² island escape has been a haven since the early 1990s. We take a look at New Zealand’s history and commercial real estate opportunities

Kia ora from the land of the long white cloud

The

WORLD series ● Our monthly country-by-country focus ●



eye on the world

The � ag of New Zealand is a defaced Blue Ensign with the Union Flag in the canton, and four red stars with white borders to the right. The stars’ pattern represents the asterism within the constellation of Crux, the Southern Cross.

New Zealand’s � rst � ag – the � ag of the United Tribes of New Zealand – was adopted in 1834, six years before New Zealand became a British colony following the signing of the Treaty of Waitangi in 1840. Chosen by an assembly of Māori chiefs at Waitangi in 1834, the � ag was of a St George’s Cross with another cross in the canton containing four stars on a blue � eld. After the formation of the colony in 1840, British ensigns started to be used. The current � ag was designed and adopted for use on Colonial ships in 1869, quickly adopted as New Zealand’s national � ag, and given statutory recognition in 1902.

New Zealand has been inhabited since the early 1300s, � rst by the Māori, then by the

British (in the 1700s). Now, in a population of nearly 4,6-million, the Māori make up 14,6% of New Zealand’s people.

Dutch navigator Abel Tasman was the � rst European to discover New Zealand during his voyage of 1642-1643, although he never set foot on the land. In 1769, explorer James Cook arrived and claimed it for Great Britain, but it wasn’t until the late 1700s that the � rst Europeans began to settle in New Zealand.

The year 1835 saw the signing of the Declaration of Independence of New Zealand by 34 Māori chiefs. The Declaration asserted the independence of New Zealand, with all sovereign power and authority residing with its hereditary chiefs and tribes.

A few years later, on 6 February 1840, Te Tiriti o Waitangi (the Treaty of Waitangi) was signed between the Māori and the Crown, guaranteeing the Māori full possession of their land in exchange for recognition of British sovereignty. The Treaty is regarded as New Zealand’s founding document and remains a core point of reference for Māori and the government.

New Zealand’s democracyNew Zealand is a parliamentary democracy situated in the South Paci� c Ocean, 6 500km south-southwest of Hawaii and 1 900km to the east of Australia. With a land area of 268 021km², it is similar in size to Japan and the UK.

New Zealand proper consists of the following island groups:

● North Island, South Island and neighbouring coastal islands (Tokelau, Cook Islands, Bounty Islands, Antipodes Islands, Stewart Island, the Snares, Auckland Islands Campbell Islands, Niue), all contained within the 16 regions of New Zealand;

● The Chatham Islands to the east, contained within the Chatham Islands Territory;

● The Kermadec Islands to the north and New Zealand Sub-Antarctic Islands to the south, all outside local authority boundaries and inhabited by a small number of research and conservation sta� ; and

● The Ross Dependency, which forms part of Antarctica, and is constitutionally a part of New Zealand.

Because these islands are widely dispersed, New Zealand has a large exclusive maritime economic zone of 4,1-million square kilometres.

More than half of New Zealand’s total land area is pasture and arable land, and more than a quarter is under forest cover – including 1,8-million hectares of planted production forest. With a landscape that’s predominantly mountainous and hilly, 13% of the total area consists of alpine terrain, including many peaks that exceed 3 000m.

Lakes and rivers cover one percent of the land. Most of the rivers are swift and seldom navigable, but many are valuable sources of hydro-electric power. The climate is temperate and relatively mild.

With an estimated population of 1 570 500, the Greater Auckland Region is home to 34 out of every 100 New Zealanders, and is one of the fastest-growing regions in the country.

New Zealand has a highly urbanised population, with about 73% of the resident population living in urban entities with 30 000 or more people.

As at June 2015, more than half of all New Zealanders (53%) lived in the four main urban areas of Auckland, Hamilton, Wellington and Christchurch.

The population is heavily concentrated in the northern half of the North Island (55%), with the remaining population fairly evenly spread between the southern half of the North Island (22%) and the South Island (23%).

The least-populated regions, given their size in terms of land area, are the west coast (0,7%) and the southern half of the South Island (6,8%).

Auckland skyline from the suburb of Devonport (Photograph © Loïc Lagarde/Flickr.com)

▼ Anthem God Defend New Zealand▼ Capital Wellington▼ Largest city Auckland▼ Ethnic groups (2013) 73% European,

14,9% Māori, 11,8% Asian, 7,4% Paci� c Islanders, 1,2% Middle Eastern Latin American and African, 1,7% other

▼ Demonym New Zealander, Kiwi (informal)

▼ Currency New Zealand dollar (NZD)

▼ Government Unitary parliamentary constitutional monarchy

▼ Legislature Parliament (House of Representatives)

▼ Land area 268 021km2 ▼ Population (2016, est.) 4 697 030▼ GDP (PPP, 2016, est.) NZ$173,2-billion (total),

NZ$36 950 (per capita)▼ GDP (nominal, 2016, est.) NZ$169,9-billion

(total), NZ$36 254 (per capita)

Key facts


eye on the world

GovernmentDay-to-day political power is the responsibility of New Zealand’s democratically elected parliament, know as the House of Representatives. While the prime minister is the most important person in the national government, sitting above him or her on the constitutional hierarchy is New Zealand’s monarch – a non-partisan head of state – Queen Elizabeth II. In her absence, she is represented in New Zealand by a governor-general. The governor-general is appointed by the queen on the advice of New Zealand’s prime minister, usually for a term of five years.

Taxes, borrowing and expenditure of the national budget must be approved by the parliament, which is re-elected every three years.

Certain limits on government action are imposed by the Treaty of Waitangi, which governs the relationship between the indigenous people (the Māori) and everyone else. It ensures that the rights of both Māori and Pakeha (non-Māori) are protected.

It does that by: ● Accepting that Māori iwi (tribes) have the

right to organise themselves, protect their way of life and to control the resources they own;

● Requiring the government to act reasonably and in good faith towards Māori;

● Making the government responsible for helping to address grievances; and

● Establishing equality and the principle that all New Zealanders are equal under the law.

There are other important organisations and officials that have various degrees of independence to scrutinise what the government is doing, including the ombudsman and the auditor-general.

Central governmentNew Zealand’s central government is elected by a democratic vote every three years. It is the central government’s decision-making that affects New Zealand as a whole, while the local government looks after the interests and needs of specific communities through regional, city or district councils.

Housing, welfare, education, health, justice, immigration and the police are all run by the central government, along with energy, the national road and rail systems, defence, foreign policy and public finances. Central government regulates employment, import and export, and workplace safety.

Personal income tax, business taxes and GST (the goods and services tax that is added to almost all goods and services in New Zealand) are all levied by the central government.

New Zealand elects about 120 members of parliament (MPs) to a single chamber of parliament known as the House of Representatives. Voters must enrol to vote in New Zealand if eligible. A voter is eligible if he or she is 18 years old or older, is a New Zealand citizen or permanent resident, and has lived in New Zealand continuously for more than a year. Enrolling to vote is compulsory, but voting is optional.

Regional and territorial governmentThere are two levels of local government: regional councils and territorial authorities (city and district councils).

Local government bodies provide local services such as water, rubbish collection and disposal, sewage treatment, parks, reserves, street lighting, roads, local public transport and libraries. They also process building and environmental consents and administer other regulatory tasks.

Regional councils are responsible for managing resources, biosecurity control, river management, flood control, controlling land erosion, regional land transport planning and civil defence in the event of an emergency.

District and city councils are responsible for community wellbeing and development, environmental health and safety, infrastructure, recreation and culture, and resource management.

There are a total of 12 city councils, 54 district councils, an Auckland council and 11 regional councils. One city council, four district councils and Auckland also have the powers of the regional councils: they are sometimes called “unitary authorities”. Many councils also have elected community or local boards.

Community level democracyRegional and territorial councillors and mayors are all elected in local government elections, which are held every three years. Local government elections are held on the same day across the country but they are not combined with general elections for parliament.

Legal systemIn 2015, the World Bank ranked New Zealand second after Singapore in its 189-nation “Doing Business” rankings of how conducive the regulatory environment is to operating a local business. Also in 2015, the World Justice Project ranked New Zealand sixth out of 102 countries for the quality of our legal system – ahead of Australia, Canada and the UK. In December 2014, Forbes rated New Zealand third-best Country for Business (behind Denmark and Hong Kong) for reasons that included personal freedom and investor protection, as well as a lack of red tape and low corruption.

Independent judgesJudges are appointed by the governor-general on the advice of the attorney-general, who is a Cabinet member in the government. Judges are expected to act independently. Only lawyers may become appointed judges, and only after they have held a practising certificate for at least seven years.

General and specialist courtsMost legal issues are dealt with by “courts of general jurisdiction”. These courts decide criminal and civil matters. Criminal matters are offences usually involving the police that result in imprisonment or other penalties. Civil matters usually involve disputes, such as a breach of contract, defamation or claims for damages.

Four levels of general courtsThe “entry level” for most civil and criminal matters is a District Court. The next level up is the High Court. There are 40 High Court judges, including the chief judge. The High Court deals with major crimes and more significant civil claims. It also hears appeals from lower courts and specialist tribunals.

At the next level is the Appeal Court. The Appeal Court determines the law of New Zealand and resolves conflicting court decisions.

The “court of final appeal” in New Zealand is the Supreme Court. It hears appeals in both civil and criminal cases, although they must be of public or legal significance to reach this level.

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Specialist courtsNew Zealand has several specialist courts:

● The employment court deals with labour relations.

● Family courts deal with child custody, parental access, divorce, adoption, protection orders, and the care and protection of children.

● Youth courts deal with o� ences committed by young people (older than 12 but younger than 17).

● The Māori land court and Māori appellate court deal with Māori land matters.

● The environment court deals with resource management, planning and development matters.

There are also more than 100 tribunals, authorities, boards and committees. These deal with a wide range of disputes involving issues such as censorship, taxation, tenancy and employment. Some of the better-known ones are the employment, disputes, tenancy, and Treaty of Waitangi tribunals.

Justices of the peaceJPs are laypeople (i.e. not lawyers) who are well-respected in the community. They are nominated by members of parliament and appointed by the governor-general on the recommendation of the Minister of Justice. There are about 7 000 JPs in New Zealand.

As well as witnessing documents, JPs are involved in a number of matters within the community and the courts. In the District Court, suitably trained JPs carry out functions such as adjudicating minor criminal and tra� c charges. They can also grant search warrants.

O� ce of the OmbudsmanIf there is a problem with a local or central government agency or a request for o� cial information, the O� ce of the Ombudsman may be able to help.

It is an independent parliamentary authority that handles complaints against government agencies and undertakes investigations and inspections.

There is no cost involved in taking a complaint or application to the ombudsman.

Education New Zealand’s education system does not discriminate, but welcomes di� erent abilities, religious beliefs, ethnic groups, income levels, and ideas about teaching and learning. It has three levels and re� ects New Zealand’s unique and diverse society. School is compulsory between the ages of six and 16 and free between the ages of � ve and 19 at state schools.

The three levels are: ● Early childhood education –

from birth to school-entry age, ● Primary and secondary schools –

from � ve to 19 years of age, and ● Further education – higher and

vocational education.

Early childhood educationChildren can take part in early childhood education (ECE) from birth to school-entry age. It is not compulsory but about 95% of children go to an ECE service. All ECE services in New Zealand plan learning using the national curriculum Te Whāriki. Between the ages of three and � ve, a child can go to an ECE service for 20 hours a week free of charge.

State, state-integrated and private schoolsMost schools in New Zealand are owned and funded by the state. They teach the national curriculum and are secular (non-religious).

There are two other types of schools: state-integrated and private. They may have their own set of aims and objectives to re� ect their own particular values. They may teach a speci� c philosophy or religion.

State-integrated schools are schools that were once private but have become part of

the state education system. They are funded by the government and teach the national curriculum. You will pay compulsory attendance dues.

Private schools get some government funding but are mostly funded through charging parents school fees.

Māori-medium education (Kura Kaupapa Māori)Kura Kaupapa Māori are schools that teach in Māori, and whose education is based on Māori culture and values. They are owned and funded by the state, and teach the national curriculum for Māori-medium schools, Te Marautanga o Aotearoa. Many kura are composite schools – they have both primary and secondary departments (teaching years one to 13).

National curriculumThe national curriculum covers subjects that are taught at primary and secondary schools, and the standards that students should reach in each subject.

Primary education focuses on foundation learning across a range of subjects and competencies, but especially in literacy and numeracy. At secondary school, students learn a broad and balanced curriculum, with some specialisation possible in years 11 to 13.

OPPORTUNITIES

CHALLENGES

CBRE RESEARCHThis report was prepared by CBRE New Zealand Research Team, which forms part of CBRE Research—a network of preeminent researchers and consultants who collaborate to provide real estate market research, econometric forecasting and consulting solutions to real estate.

© CBRE Ltd. 2016 Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.

Source: CBRE Research, Q1 2016.

R E A L E S T A T E M A R K E T O U T L O O KAsia Pacific

INVESTMENTRETAILOFFICEECONOMY LOGISTICS

• Leveraging off infrastructure investments

• Consumption and services driven growth

APAC TRADEGROWTH

• Emerging structural imbalances through asset price inflation

• Weaker growth momentum in Christchurch and Wellington

• Increasing Prime vacancy in Wellington and Christchurch

• Greater cost and efficiency focus from MNC occupiers.

• Falling exchange rate squeezing margins

• Dominant centres taking market share

• Global brands expanding in New Zealand

• Above average retail sales growth underpinning turnover

• Accommodating growth

• Cost pressures through rising construction costs

• Strong occupier demand, low vacancy

• New and emerging industrial locations

• Cap rates compressing to previously uncharted territory

• Relatively small market hinders liquidity

• Alternative assets

• Capturing emerging capital sources

• New workplace practices

• Tech and Education sector demand

E-COMMERCE TRANSFORMING LOGISTICS

STRONG CAPITAL DEPLOYMENT MODE

TRANSFORMATION ON RETAIL-TAINMENT

COST CAUTIOUS

MORE FIERCE COMPETITION

SPACE EFFICIENCY & PRODUCTIVITY INSUFFICIENT

STOCK TO INVEST

DESIRE FOR NEW OFFICE SOLUTIONS

STRUCTURAL IMBALANCES

NEW ZEALANDReal estate market outlook

Source: CBRE Research, Q1 2016


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Schools that teach in the English language use the New Zealand curriculum. Schools that teach in the Māori language use Te Marautanga o Aotearoa.

National Certificate of Educational AchievementThe National Certificate of Educational Achievement is the national senior secondary school qualification. Pupils are assessed during their last three years at school (years 11 to 13). They can achieve the National Certificate of Educational Achievement (NCEA) at three levels in a wide range of courses and subjects.

Further educationFurther education includes higher and vocational education. Courses range from programmes to help students into work, to certificates and diplomas, postgraduate study and research. Full- and part-time distance-learning options are also available from some further-education providers.

The government partially funds state further-education providers. Students pay about 30% of the cost of their courses. New Zealand students can get a loan from the government to pay for their courses until they start earning. Further-education providers can be state- or privately owned.

Technical and vocational educationAt senior secondary school level, students may begin to specialise in vocational learning. They can get help into work or further education from a number of programmes and institutions, including:

● Youth Guarantee, which gives young people further options to get NCEA Level 2 qualifications. Students plan their study to reach their career goals, including getting further education.

● Trade academies, which teach trades and technology programmes to students in years 11 to 13 (ages 15 to 18). They are run through schools and other providers.

● Institutes of technology and polytechnics, which teach professional and vocational education and training from introductory studies to degrees.

● Industry training organisations that represent particular industries (such as agriculture, building and construction, motor trade, etc). They offer training and qualifications for those sectors, and are funded by the government and industry.

● Private training establishments that offer specific vocational courses at certificate and diploma level (e.g. travel and tourism).

WānangaNew Zealand has three wānanga (state-owned Māori teaching and research institutions). They teach according to āhuatanga Māori (Māori tradition) and tikanga Māori (Māori custom). They offer certificates, diplomas and degrees. Some teach in specialised areas up to doctorate level.

UniversitiesThere are eight state-funded universities in New Zealand. Each of these offers degrees in a large choice of subjects, and each has strengths in specialised professional degrees. All are widely recognised internationally. They collaborate with universities in other countries on research and teaching programmes, and with the business community in New Zealand and overseas on research and development.

Foreign relations and external tradeTrade is essential to New Zealand’s economic prosperity. Export of goods and services makes up about 30% of the gross domestic product (GDP). New Zealand’s trade interests are well diversified: Australia, China, North America, the European Union and the Association of South-East Asian Nations each take between nine percent and 19% of New Zealand’s goods-and-services exports. Other major trading partners include Japan and the Republic of Korea.

Asia-Pacific regional linkages remain at the core of New Zealand’s political and economic interests. The countries of the Asia-Pacific Economic Cooperation (APEC) take more than 70% of New Zealand’s exports, provide 71% of tourism arrivals and account for about 75% of New Zealand’s foreign direct investment.

However, New Zealand’s trade policy still has strong links with Europe, and successive governments have pursued opportunities in emerging regions such as the Middle East and Latin America.

While New Zealand exports a broad range of products, it remains reliant on exports of commodity-based products as a main source of receipts, and on imports of raw materials and capital equipment for industry.

At home and abroad, New Zealand remains committed to a reduction of trade barriers. Domestically, tariffs have been systematically reduced and quantitative controls on imported goods eliminated. About 90% of goods come into New Zealand tariff-free, including all goods from least-developed countries.

Internationally, New Zealand was active in laying the foundations for the Doha round of WTO negotiations, and has been an active participant.

Regionally, as a member of APEC, New Zealand is committed to achieving APEC’s goals of free trade and investment in the region. To this end it is contributing to ongoing discussions around a Free Trade Agreement for the Asia-Pacific (FTAAP).

New Zealand’s economic outlookAccording to the Colliers New Zealand research report released in June 2016, there is reasonable momentum in the economy. Households and businesses have generally shown resilience. Net migration remains very strong, with the surge in population boosting demand across many sectors.

New Zealand expects an annual average GDP growth to rise to about three percent in 2016, and average 2,8% for the following years as the persistent effects of strong net

New Zealand is committed to a multi- track trade policy, which includes the following measures:

● Multilateral trade liberalisation through the World Trade Organisation,

● Regional cooperation and liberalisation through active membership of forums such as APEC and East Asian Summit, and

● Bilateral and multilateral trade arrangements, such as: – the Closer Economic Relations Agreement with Australia (in force since 1983); – the Trans-Pacific Partnership Agreement, a free-trade agreement concluded in 2015 with the aim to liberalise trade and investment between 12 Pacific-rim countries: New Zealand, Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, Peru, Singapore, the US and Vietnam; – free-trade agreements with Singapore, Thailand, Malaysia, Republic of Korea and Hong Kong, and the economic cooperation agreement with Chinese Taipei; – the ASEAN-Australia-New Zealand Free Trade Agreement; and – ongoing processes and negotiations on future free-trade agreements with several parties, including the Gulf Cooperation Council; India; ASEAN, China, India, Republic of Korea, Japan and Australia (in the context of the Regional Comprehensive Economic Partnership); and most recently the agreement with the European Union to seek negotiating mandates.


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migration filter through the economy. On a per-capita basis, however, GDP growth is expected to remain soft by historical standards.

Occupier demand is strong in most sectors. Developers have renewed their appetite for construction, and sales activity is near the cyclical highs.

The manufacturing and services performance indices from BNZ-Business NZ point to the recent strength in underlying fundamentals for the industrial and office sectors. The PMI and PSI (performance in manufacturing and services indices) are above 50, indicating expansion mode, and both series are above a decade-long average. The sub-sectors of the indices, which monitor forward-looking aspects such as production levels, sales and new orders, all seem relatively optimistic. An exception is employment, which is lower than other indicators, and is sub-50 in the manufacturing sector. Some of the lower confidence in the services sector reflects the inability to secure skilled labour in a low-unemployment market.

In the retail sector, consumers are also confident, with a seasonally adjusted index of 115 in the ANZ-Roy Morgan survey. House-price growth seems to be a key driver of the sentiment. Although the survey result is fractionally lower than May, the respondents are a happy bunch of consumers who are returning to past habits of spending more than they earn. The survey notes that Wellington has taken first place in the confidence rankings, knocking Auckland off the top spot. A slight cautiousness has crept in from consumers as petrol prices start to edge up again, and lower interest rates for savers, rather than borrowers, dampen expectations for the remainder of the population who don’t own a home.

Colliers’ confidence survey shows investors have cautiously modified their enthusiasm from last year’s record highs, from a net positive 31% in Q2 2015 to 27% in Q1 2016.

Forecasts indicate that low interest rates are unlikely to change any time soon, fuelling asset price appreciation further.

Despite the positivity, there are some warning signals to monitor. Low interest rates reflect low inflation in low-growth economies. This may impact on New Zealand’s trading activity and business sentiment if detrimental and long-term imbalances arise in offshore markets – especially anything unbecoming in the financial sector.

Another consideration involves the rising construction costs locally, which are impacting feasibility and inflating costs that are typically passed on to tenants. Non-residential sector build costs are up by 3,2% in the past year, with forecasts suggesting little relief in the medium term.

Lastly, the cyclical growth in population, tourism and job growth is propping up economic prosperity and fuelling many parts of the economy. If this dynamic changes quickly, sentiment could alter abruptly, providing a case for businesses and investors to withdraw from the market.

Property investor preferencesIn buoyant periods of sales, industrial typically totals between NZ$2,2-billion and NZ$3-billion of sales annually, and in periods of slower activity it’s between NZ$1-billion and NZ$2-billion. Despite the buoyant activity in the last few years, the total value remains below the 2007 peak of just over NZ$3-billion. This signals that activity in the industrial sector should keep rising over the next few years. In 2015, the industrial sector represented only 39% of total activity at the upper price band.

This is another reason why there is limited offshore investment in the industrial sector as investors are typically looking to purchase at scale.

Retail continues to be a solid performer. In 2015, retail accounted for 27% of sales turnover and 24% of the total sales value. Recent sales activity in the retail sector has eclipsed previous years as a result of the increase in assets available to purchase and the strong outlook in asset appreciation. Highlighting the buoyancy in 2016, large retail transactions such as the two former Westfield assets and the 50% share of The Base in Hamilton are expected to settle in 2016 for a combined value of approximately NZ$650-million.

When broken down by price segment, retail sales turnover below NZ$5-million is twice as high as the office sector. However, the office sector punches above its weight in the NZ$5-million and over category, accounting for 23% of sales turnover and 33% of total sales value. This is a reflection of the flagship office premises sold, which are highly attractive to offshore parties,

especially for portfolios of buildings with strong fundamentals such as occupancy, lease terms and low capital expenditure requirements.

Geographical property hotspotsWellington recorded its best-ever year in 2015, reaching just over NZ$1-billion in sales activity for the first time. There was a relatively even spread between the three main commercial sectors in Wellington, with the retail sector eclipsing previous years. Last year NZ$304-million of retail properties were sold, almost double the last two peaks achieved in 2012 and 2007 of approximately NZ$172-million. In total Wellington provides approximately seven percent of national sales turnover indicating the tightly held nature of property in the capital.

Auckland continues to provide the lion’s share of sales activity, accounting for 37% of all commercial sales activity by number of transactions. This is a reflection of Auckland also claiming approximately a third of the population, economic activity, employment, retail spending and residential property sales. The aggregate value of Auckland’s commercial property sales in 2015 was the second-highest recorded at NZ$3,9-billion, representing 53% of national sales value.

Christchurch accounted for 14% of national sales turnover last year, with a total value of NZ$752-million. Almost two-thirds of sales activity by value and the number of sales was in the industrial sector. Signalling the continuation of the Christchurch market recovery, the office sector had its best-ever year with NZ$132-million of sales.

Sales activity breakdownThe majority of property sold over NZ$2-million was in Auckland, with 54% of all sales activity and 57% of values. The number of properties sold for less than NZ$2-million in Auckland was also much higher than in other main cities, but was dwarfed by the total for the rest of New Zealand. Auckland recorded 45% of all sales turnover below NZ$2-million.

More sales activity should be expected outside the three main centres in the coming years. Hamilton and Tauranga on the North Island and Queenstown and Dunedin on the South Island continue to be regional hotspots.

Office property marketDemand has outpaced the level of supply available, with the vacancy rate reducing to 5,7% from the 7,8% recorded 12 months ago.

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Prime vacancy has reduced to four percent from 5,8%, and secondary vacancy to 6,1% from 8,4% last year. Developers have picked up the pace to cater to the cyclically high levels of demand, but not enough to make a significant difference.

Although there are some exceptions by precinct, the supply and demand balance has meant that landlords are more confident in their ability to increase rent at a higher rate than in previous years. Auckland metropolitan prime office face rent increased by three percent over the past year, while secondary rent has increased by 1,9%. New-build rent is increasing at the fastest rate, helped along by rising construction costs and resultant land values that make projects more commercially feasible.

Retail property marketIn 2015, the retail sector accounted for almost a quarter of all property sales activity. This was steady across most price bands. Although this is second spot behind the industrial sector, there are a higher number of opportunities to purchase industrial properties than retail.

In the less-than-NZ$2-million price band, which accounts for 85% of all of New Zealand’s commercial property activity, almost 1 100 sales were recorded in retail.

This year, a number of high-profile retail property sales were settled or are expected to settle soon, including the two former Westfield shopping centres, Zone 7 in Westgate, the half share of The Base, Centre Place South, Shore City, Pukekohe Mega Centre, a national Progressive Enterprises portfolio and Papamoa’s Fashion Island. These add up to more than NZ$1-billion in sales activity already.

This level of activity will likely place 2016 as the second-highest year across all retail property values but still some way off the NZ$3,2-billion year in 2014 after major purchasing activity in New Zealand for the first time by GIC and PSP Investments.

Industrial property marketColliers’ industrial report on the six main industrial regions of Auckland, Hamilton, Tauranga & Mt Maunganui, Wellington, Christchurch and Dunedin shows that many markets are struggling to keep pace with demand outweighing supply. This is facilitating a strong round of development activity – but not all areas have sufficient or suitable land that is feasible to develop. Regions that do are faced with rising construction costs to complicate matters.

Because of the strong demand environment, there is evidence now that demand is overflowing and spreading into the secondary sector as tenants and investors have diminishing choices.

Housing marketAs a result of a large inflow of migrants, housing is in huge demand, with housing construction unable to keep up with rising demand. Combined with lower interest rates,

interest in housing is returning – and broadening across the regions.

The Reserve Bank of New Zealand’s additional restrictions on Auckland property investors requiring a 30% deposit came into effect last November, with investor interest in housing broadening beyond Auckland and the “halo” regions of Waikato and Bay of Plenty.

Offshore vs on-shore investmentOffshore purchasing activity in commercial real estate in 2014 for properties worth NZ$5-million or more will be noted as an outlier, with offshore purchases accounting for 56% of sales activity by value and 21% of the number of sales, reflecting high-value purchases by offshore parties.

The balance between offshore and on-shore purchasing activity normalised in 2015, with local purchases dominating offshore purchases. Typically, offshore purchasing activity has been below 15% of overall value and below 10% of the number of sales, which was mirrored in the 2015 results.

Offshore investors continue to prefer investment in the office sector, albeit they have stepped up their position in the retail sector recently as opportunities have arisen. Instead, 2015 was the year of the listed property vehicles (LPVs) rather than offshore purchases. LPVs accounted for NZ$600-million of purchases from 13 sales compared to offshore purchases for NZ$435-million from 17 sales. Private local investors continued to dominate all categories.

Despite the LPVs squeezing out the offshore parties, there is still a sizeable “wall of money” from offshore purchasers looking to enter the New Zealand market.

There was interest from international locations for the recent sell-down of two former Westfield retail assets and Antipodean’s 19-strong supermarkets portfolio, which sold in 2015 for NZ$730-million. The campaigns highlighted an estimated NZ$10-billion of capital looking for flagship assets in the New Zealand real estate market.

Given the high level of domestic real estate investment within China, it’s also reasonable to assume that offshore investment in New Zealand from China could increase if the right stock and the right opportunity are presented.

Compiled from various sources by Mark Pettipher. Property facts courtesy of Collier’s International New Zealand and CBRE New Zealand.

New Zealand prime CBD office indicators

Prime rentals (% change)

12 months to Mar 2016

12-month forecast

Auckland CBD 5,7% 3,6%

Wellington CBD* 2,3% 3,6%

Auckland Metropolitan 3% 2,1%

Prime capital values (% Change)


12-month forecast

Auckland CBD 14,1% 5,9%

Wellington CBD* 10,1% 3,8%

Auckland Metropolitan 7,5% 4,6%

Source: Colliers International Research * Gross rent

New Zealand prime industrial indicators

Prime combined rentals (% change)*


12-month forecast

Auckland 4,2% 0,7%

Wellington** 6,9% 4%

Christchurch 0,3% 0%

Prime capital values (% change)


12-month forecast

Auckland 10,9% 3,2%

Wellington 13,9% 6%

Christchurch 2,4% 2,7%

Source: Colliers International Research

* A combination of industrial office and warehouse

space at a ratio of 20:80 ** Gross rent

New Zealand prime CBD retail indicators

Prime rentals (% change)


12-month forecast

Auckland 12,4% 3,4%

Wellington* 4,1% 1,9%

Prime capital values (% change)


12-month forecast

Auckland 17,2% 6,1%

Wellington 1% 6%

CBD retail vacancy (%)

Dec 2014

Dec 2015

Dec 2016 forecast

Auckland CBD 3% 2,5% 2,3%

Wellington CBD 8,2% 7,3% 7,2%

Source: Colliers International Research * Gross rent

events


SAPOA KZN hosts breakfast with the eThekwini Municipality

SAPOA KZN recently hosted a breakfast presentation at the Square Hotel in Umhlanga, Durban

SAPOA KZN recently hosted a breakfast presentation at the Square Hotel in

Umhlanga, Durban.Deputy City Manager of the eThekwini

Municipality Musa Mbele presented the city’s Catalytic Projects, poised to elevate its positioning and competitiveness, as well as an introduction to eThekwini’s new One Stop Shop and the implementation of SPLUMA.

“SAPOA is extremely relevant in the city at the moment and there is a lot of work happening on behalf of our members,” said Edwin van Niekerk, SAPOA KZN Regional Chairman and Executive Director at Maxprop.

No stranger to development, Rory Wilkinson of Tongaat Hulett Developments closed the presentation with his own appreciation of the robust, united and transparent relationship between the city and SAPOA. “A fantastic story has been presented here today” he said. “I challenge you to start telling it.”

The event was sponsored by Tongaat Hulett Developments.

FROM LEFT Deputy City Manager of eThekwini Municipality Musa Mbele, Regional Chairman Edwin van Niekerk, Nadeer Shahir

FROM LEFT Rory Wilkinson (Tongaat Hulett Developments), Russel Curtis, Neville Matjie

FROM LEFT Mohsin Shaik, Robin Westley, Barry Lewis, Subashnee Moodley

Photographs by Val Adamson


frankly speaking

Value Added!Tongue-in-cheek questions for the Valuator Group’s Chairperson Thandiwe January-McLean

Q After coming home after a hard day at work, what is the first thing you do? When I get home after a long day, I take a bath, get into my pyjamas and have a hot cup of tea – or Milo in winter. I must reluctantly add that I automatically turn the TV on to catch up with the news. I flip through channels all the time.

Q If we opened the top drawer of your dressing table, what would we find?A pair of glasses, my medication, two or three books, Vaseline for my lips and all the remote controls.

Q If I asked your daughters what your most used saying is, what would they say?“When push comes to shove” or “bottom line”. I still do not know whether the former is even English. It just makes the point!

Q What is the naughtiest thing you got up to as a child growing up in Kimberley?Painting parts of my father’s (freshly painted!) garage with a colour that, when it dried, was a different colour. My sisters and I found the paint and brushes waiting for us to use them. I’ll spare you details of the consequences…

Q What was the most fun thing you did when you travelled as the CEO of South African Tourism to Jamaica?We went into the water with dolphins. I was scared as hell but was not going to be the party-pooper. I really enjoyed the music though. Jamaica was a private trip with my sister and daughters.

Q Being the wife of jazz musician Rene McLean must be entertaining. What would you do to make your husband laugh?Actually, he is usually the funny one. Really, really funny. He still makes me laugh. My jokes are always very dry compared to his. Q If we gave you a camel what would you do with it?I’d look at it…

Thandiwe January-McLeant: +27 (0)12 460 4127c: +27 (0)71 879 9982f: +27 (0)12 460 4127e: [email protected]

About the Valuator GroupJanuary-McLean is the Chairperson of the Valuator Group, which offers specialist asset valuations for both market and insurance purposes covering the full spectrum on the property side, plant and machinery, fine arts and antiques and most other assets (including business valuations).

Q What is your favourite colour?Black.

Q Who’s your favourite local comedian?My favourite local comedian is, without question, Trevor Noah.

Q If you were served snails as a starter, how would you react?I’d eat them!


UPCOMINGEVENTS 2016

AugustRegion Date Event

East London 11 August East London Golf Day

Gauteng 11 August SAPOA Women’s Breakfast

Gauteng 11 and 12 August

Negotiation Skills Masterclass Programme (NSMP)

Mpumalanga 17 and 18 August

Negotiation Skills Masterclass Programme (NSMP)

Port Elizabeth 18 August PE Networking Event

Gauteng22 to 24 August

Property Financial Programme (PFP) Intermediate, University of Johannesburg

Gauteng 26 August Introduction to Brokering Seminar (Day 1)

Gauteng 31 August Research Breakfast: Latest O� ce Property Trends

Mpumalanga TBC Mpumalanga Cocktail Dinner

SeptemberRegion Date Event

Gauteng 6 September Introduction to Brokering Seminar (Day 2)

KwaZulu-Natal 8 September KZN Breakfast Seminar

Mpumalanga 15 September Mpumalanga Breakfast Seminar

KwaZulu-Natal 15 September Introduction to Brokering

Gauteng 27 to 30 September

Essential Commercial Property Programme (ECPP), Wits University

KwaZulu-Natal 27 to 30 September

Essential Commercial Property Programme

Gauteng TBC Power Hour Breakfast

Gauteng TBC Gauteng Networking Event

OctoberRegion Date Event

Limpopo 7 October Limpopo Breakfast Session

Mpumalanga 13 October Green Building Workshop

Gauteng 14 October Gauteng Golf Day

Limpopo 20 October Limpopo Golf Day

KwaZulu-Natal 24 to 25 October

Negotiation Skills Master Programme(NMSP)

Dates are subject to change. Please see Sapoa.org.za for regular updates.

For advertising

opportunities and rates contact

Robbie Pansegrauw

t: +27 (0)21 856 0321 e: [email protected]

or Riëtte Stevens

t: +27 (0)71 877 5520 e: [email protected]

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

REGISTER2 0 1 6 - 2 0 1 7

EACH YEAR WE ACCEPT a large number of listings and advertisements from professionals and service providers across the entire spectrum of property activities. Don’t miss out on this well-used, popular industry resource.

SAPOA aims to provide added value by offering the basic listings free of charge to all members. In this respect, we hope that we are assisting you in your marketing endeavours to some extent.

We thank you for your support in previous years. In an effort to improve the look and ease of usage, we have redesigned the directory layout to a four-column grid and have made available certain entries that will stand out from the norm.

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S A P OA P ro p e r t y R e g i s t e r 2 0 1 4 - 2 0 1 5

Architects

ARG DESIGNP.O. Box 13936, Mowbray,The Western Cape, 7705t: +27 (0)21 448 2666f: +27 (0)21 448 2667AA PAPAGEORGIOU ARCHITECT &

ASSOC INCORPORATEDP.O.Box 11288, Randhart,Gauteng, 1457t: +27 (0)11 907 2015 f: +27 (0)11 907 2020 ACG ARCHITECTS CCP.O.Box Cape Town,The Western Cape, 7915t: +27 (0)21 448 6615f: +27 (0)21 448 6621

ACTIVATE ARCHITECTURE (PTY) LTDP.O. Box 321, Saxonwold,Gauteng, 2132t: +27 (0)11 788 8095f: +27 (0)11 788 8097

ADENDORFF ARCHITECTS & INTERIORS CCP.O.Box 40301, Walmer, Port Elizabeth,Eastern Cape, 6065t: +27 (0)41 581 4765f: +27 (0)86 618 2183

AMA 3 (PTY) LTDP.O.Box 1299, Gallo Manor,Gauteng, 2052t: +27 (0)11 807 7505f: +27 (0)11 807 7509 ARC ARCHITECTURAL CONSULTANTS

PRETORIA P.O.Box 13399, Hatfield, Gauteng, 0028t: +27 (0)12 362 7350f: +27 (0)12 362 7349

ARCHI-M STUDIO 3 CCP.O.Box 9650, Bloemfontein, The Free State, 9300t: +27 (0)51 430 8714f: +27 (0)51 448 5384

ARCHITECTURAL DESIGN ASSOCIATES (GROUP) (PTY) LTD P.O.Box 87076, Houghton,Gauteng, 2041t: +27 (0)11 880 0600f: +27 (0)11 880 0603

AUCOR PROPERTY P.O.Box 157, X1 Postnet Suite, Melrose Arch, Gauteng,2146t: +27 (0)11 033 6600f: +27 (0)11 033 6600

BALSHAW & FOGARTI ARCHITECTS CCP.O.Box 12932, Centrahil, Port Elizabeth,

Eastern Cape, 6006t: +27 (0)41 373 4340f: +27 (0)41 373 4324BATLEY PARTNERS ARCHITECTURE &

DESIGNP.O.Box 52685, Saxonwold,Gauteng, 2132t: +27 (0)11 326 5000f: +27 (0)11 326 5002

BENTEL ASSOCIATES INTERNATIONALP.O.Box 87619, Houghton,Gauteng, 2041t: +27 (0)11 884 7111f: +27 (0)11 884 7110

BILD ARCHITECTS (PTY) LTD P.O.Box 95664, Waterkloof, Pretoria,Gauteng, 0145t: +27 (0)12 346 1295f: +27 (0)12 346 1249BLACKSHEEP DESIGN 223 Tribella, 166 Rivonia Road, Morningside,

Gauteng, 2192t: +27 (0)87 700 8291f: +27 (0)86 225 6665BNM 3 BHISHOP.O.Box 5, Bhisho,Eastern Cape, 5605t: +27 (0)40 635 1951f: +27 (0)40 635 1961

BOUDRY ARCHITECTS & ASSOCIATES P.O.Box 51838, Waterfront, The Western Cape, 8002t: +27 (0) 21 448 3955f: +27 (0)21 448 5910

CHAMELEON ARCHITECTSP.O.Box 4063, Tygervalley, The Western Cape, 7536t: +27 (0)21 949 2530f: +27 (0)21 945 4183CHRIS OWTRAM ARCHITECTURE

P.O.Box 1926, Pinegowrie,Gauteng, 2123t: +27 (0)11 022 6260f: +27 (0)86 648 8262 CO-ARC INTERNATIONAL ARCHITECTS INCP.O.Box 52604, Saxonwold,Gauteng, 2132t: +27 (0)11 447 1344f: +27 (0)11 447 1343

CONSULT THREE ARCHITECTS P.O.Box 71671, Central, Port Elizabeth, Eastern Cape, 6006t: +27 (0)41 585 0086f: +27 (0)86 513 2278 CSAR 3

P.O.Box 52673, Saxonwold, Rosebank,Gauteng, 2132t: +27 (0)11 880 2466f: +27 (0)11 447 3441

DAKOTA DESIGN (PTY) LTDP.O.Box 1356, Rivonia, Gauteng, 2128t: +27 (0)11 803 0000f: +27 (0)11 803 0000 DAVID CRAIG ARCHITECTS CCP.O.Box 153, Louis Trichardt, Makhado,

Louis Trichardt,Limpopo, 920t: +27 (0)15 516 2460f: +27 (0)86 524 3827 DBM 3 JHB (PTY) LTDP.O.Box 69535, Bryanston, Johannesburg,

Gauteng, 2021t: +27 (0)11 467 5299f: +27 (0)11 467 6067DBM ARCHITECTS PTA (PTY) LTD

P.O.Box 95780, Waterkloof,Gauteng, 0145t: +27 (0)12 809 3941f: +27 (0)86 619 6662DESIGN THREE SIXTY (PTY) LTDP.O.Box 15721, Vlaeberg,The Western Cape, 8018t: +27 (0)214626630f: +27 (0)21 462 6634

Roof Terrace Suite, 8 Arnold Road, Rosebank, 2132t: +27 (0) 11 788 8095 F: +27 (0) 11 788 8097Directors:

Edward Brooks: [email protected] Magner: [email protected]

Reon van der Wiel: [email protected] w w . a c t i v a t e . c o . z a

Ranked as the #1 engineering design firm by revenue in

Engineering News-Record magazine’s annual industry rankings, AECOM is a premier, fully integrated infrastructure and support services firm, with a broad range of markets. AECOM’s operations in Africa boast more than 1,900 people with a proud history of delivering excellence and developing

solutions for our clients across all industry sectors.

Contact us on www . a e c om . c om

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

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ARG DESIGNP.O. Box 13936, Mowbray,The Western Cape, 7705t: +27 (0)21 448 2666f: +27 (0)21 448 2667AA PAPAGEORGIOU ARCHITECT &

ASSOC INCORPORATEDP.O.Box 11288, Randhart,Gauteng, 1457t: +27 (0)11 907 2015 f: +27 (0)11 907 2020 ACG ARCHITECTS CCP.O.Box Cape Town,The Western Cape, 7915t: +27 (0)21 448 6615f: +27 (0)21 448 6621

ACTIVATE ARCHITECTURE (PTY) LTDP.O. Box 321, Saxonwold,Gauteng, 2132t: +27 (0)11 788 8095f: +27 (0)11 788 8097

ADENDORFF ARCHITECTS & INTERIORS CCP.O.Box 40301, Walmer, Port Elizabeth,Eastern Cape, 6065t: +27 (0)41 581 4765f: +27 (0)86 618 2183

AMA 3 (PTY) LTDP.O.Box 1299, Gallo Manor,Gauteng, 2052t: +27 (0)11 807 7505f: +27 (0)11 807 7509 ARC ARCHITECTURAL CONSULTANTS

PRETORIA P.O.Box 13399, Hatfield, Gauteng, 0028t: +27 (0)12 362 7350f: +27 (0)12 362 7349

ARCHI-M STUDIO 3 CCP.O.Box 9650, Bloemfontein, The Free State, 9300t: +27 (0)51 430 8714f: +27 (0)51 448 5384

Roof Terrace Suite, 8 Arnold Road, Rosebank, 2132t: +27 (0) 11 788 8095 F: +27 (0) 11 788 8097Directors:

Edward Brooks: [email protected] Magner: [email protected]

Reon van der Wiel: [email protected] w w . a c t i v a t e . c o . z a

Engineering News-Recordmagazine’s annual industry rankings, AECOM is a premier, fully integrated infrastructure and support services firm, with a broad range of markets. AECOM’s operations in Africa boast more than 1,900 people with a proud history of delivering excellence and developing

solutions for our clients across all industry sectors.

Contact us onwww . a e c om . c omREGISTERREGISTER2014 - 2015

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Developers DEVELOPERS

Abland

Property Register 2014-2015 Section 2.indd 22 2014/10/10 11:00 AM

BOUDRY ARCHITECTS & ASSOCIATES P.O.Box 51838, Waterfront, The Western Cape, 8002+27 (0) 21 448 3955+27 (0)21 448 5910

CHAMELEON ARCHITECTSP.O.Box 4063, Tygervalley, The Western Cape, 7536

CHRIS OWTRAM ARCHITECTURE

CO-ARC INTERNATIONAL

CONSULT THREE ARCHITECTS P.O.Box 71671, Central, Port Elizabeth,

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Managers and administrators OWNERS

Property Register 2014-2015 Section 3.indd 40

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● 40 categories, full- and part-category page sponsorship● Highlighted data entries● Data entries with logos● A� ordable small advertisements (half- and quarter-page)● Boxed columns and part columns

BOOKING DEADLINE: 7 September 2016 Material deadline: Logo entries 21 September 2016

Column entries 21 September 2016Display adverts 2 November 2016


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Broadcasting an iconic image

China Central Television Headquarters has become an icon of Beijing’s CBD. Instead of

competing in a futile race for height, the project proposed an iconographic constellation of two high-rise structures that actively engage the space of the city: CCTV and TVCC. CCTV combines administration and o� ces, news and broadcasting, programme production and services, and the entire process of TV-making into a single loop of interconnected activities.

The headquarters was completed in May 2012 and won the 2013 Best Tall Building Worldwide from the Council on Tall Buildings and Urban Habitat.

Its main building is not a traditional tower but a loop of six horizontal and vertical sections covering 473 000m² of � oor space, creating an irregular grid on the building’s façade with an open centre.

The construction of the building is considered to be a structural challenge, especially because it is in a seismic zone. Architect Rem Koolhaas has said the building “could never have been conceived by the Chinese and could never have been built by Europeans. It is a hybrid by de� nition”.

Because of its radical shape, it’s said that a taxi driver � rst came up with its nickname, roughly translated from Chinese as “big boxer shorts”. Locals often refer to it as “big pants”.

Making the impossible possibleAccording to Arup, the company that engineered the project, the gravity-defying structure of the building has rede� ned the traditional form of skyscrapers. It posed unparalleled structural challenges for Arup’s design engineers, especially when it came to linking the two leaning towers.

With expansion and contraction of the structure caused by Beijing’s extreme hot and cold weather, it was of paramount importance that the new headquarters’ design and engineering should take into consideration the way the building would behave before it was linked together. Arup speci� ed that the joining of the towers had to be done very early in the morning, when both towers would be at a uniform temperature before the sun started to rise and with movements caused by the environment at a minimum.

Prior to the joining of the towers, Arup speci� ed � ve days of monitoring global and relative movements so correct dimensions of the linking elements could be predicted. Final adjustments were made to the length of the linking elements before installation, as it was vital that the towers were � xed together within a few minutes. The � nal join was done at 8am on a cold winter’s day, when the steel was at its most uniform temperature.

The building’s purposeThe consolidation of all TV production into a single building allows the 10 000 sta� to be aware of the nature of their work and of co-workers, creating a chain of interdependence that promotes solidarity rather than isolation. The building itself contributes to the coherence of the organisation.

Two towers rise from a common production platform that is partially underground – one dedicated to broadcasting, and the other to services, research and education – and join at the top to create a cantilevered connection for management and the public.

While CCTV is a secured building for sta� and technology, a dedicated path circulating through it provides a public “loop” that allows visitors to learn and witness the process of TV-making while o� ering spectacular views across multiple façades towards the CBD, Beijing and the Forbidden City.

With its vast and diverse network of broadcasting and production zones pulsating on a 24-hour news cycle, an internal circulation infrastructure that resembles a subway system (with express and local stops), and interlinked brain centres, nervous system and a labyrinth of sta� facilities, the building will behave like a living, breathing organism – the production of the virtual inhabiting the physical.

China Central Television (CCTV) goes for an eye-catching, off-the-wall design rather than competing with China’s skyscrapers. A new icon is formed – not in a predictable soaring tower but in a three-dimensional experience of geometric and social continuity. The virtual assumes a physical identity and occupies a place and location, for itself, the public, the city and, in a feedback loop, the virtual realm

By Phil Ruimte

ArchitectsRem Koolhaas and Ole Scheeren © OMADesign architectOMA, Beijing/RotterdamExecutive architects and engineers East China Architecture & Design Institute, ShanghaiStructureArup, London/Hong Kong/BeijingStatusCompetition 2002 (1st prize); completion 2012

off the wall



SAPOA events

With over 136 Green Stars achieved on more than 30 projects in Africa, WSP | Parsons Brinckerhoff are Africa’s leaders in green building and sustainability consulting. We are a founding member of the Green Building Council of South Africa, and have been part of driving the establishment of Green Building Councils in Namibia and Rwanda.

Our people are passionate about green building design, helping our clients choose environmentally friendly solutions for their building projects. We strive to change the way the world is constructed, ensuring a sustainable future for our continent.

BROUGHT TO YOU BY WSP | PARSONS BRINCKERHOFF

34 500 500 40EMPLOYEES OFFICES COUNTRIES

Learn more about this and other projects on www.wsp-pb.co.za

GREEN STARS FOR AFRICA


SAPOA events

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Specialised

Knowledge

and Expertise

• Elemental construction cost estimating

• Financial viability analysis (in-house developed program : precise and logical in

presentation)

• Building contract expertise

• Final settlement with contractors

• Cost control and reporting (in-house developed program: proactive and audit trail)

• Africa projects (expertise and track record)

• Specialised developments (retail, hospitality, healthcare, student housing, etc)

www.delqs.com | JHB +27 (11) 642 8751 | PTA +27 (12) 460 3304 Associated offices: GHANA | KENYA | MAURITIUS | NAMIBIA | NIGERIA | TANZANIA | UGANDA

QUANTITY SURVEYING DISPUTE RESOLUTION PROPERTY VALUATION

Corné de LeeuwLiza BothaNico Roos Gerhard de Leeuw

Akopo Africa Christine LarsonWilco Lourens

1 Medical facility for 200 Rivonia Road in Morningside, Johannesburg. Architects: Geyser Hahn Architects.

2 The Union office development for Eris Properties in Accra, Ghana. Architects: Boogertman + Partners.

3 & 4 Head office for Business Connexion for BCX HQ Offices Co-ownership JV in Centurion, Pretoria. Architects: Stauch

Vorster International. QS services in JV.

Whilst timeously and adequately providing traditional quantity surveying services DelQS identified and developed certain services vital to the bottom line of investors

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