south african property review november 2013

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

PROPERTYR E V I E W

November 2013

South African P

roperty Review

Engineers & quantity surveyors N

ovember 2013

Banking on green investmentsMore than just finance

CAPE TOWN CBDCity development open for business

ECOFRIENDLY MASTERPIECE

Efficiently showing off engineering and

design aesthetics

GOING THE EXTRA GREEN MILEA very real passage towards sustainability

> Corporate and Investment Banking

NOTHING BUILDS A STRONGER FOUNDATION THAN A WEALTH OF EXPERIENCE

Authorised financial services and registered credit provider (NCRCP15). The Standard Bank of South Africa Limited (Reg. No. 1962/000738/06). SBSA 140012/R 3/13 Moving Forward is a trademark of The Standard Bank of South Africa Limited

Our experience shows how involved we’ve been in building the real estate market. This foundation allows us to provide you with the best possible financial solutions for your real estate needs. www.standardbank.co.za/cib

Moving ForwardTM

LEAF PROPERTY FUND TRUST

ZAR 150 million

Term Funding

EYEThU ORANgE FARm mALL Stretford Land Developments, Flanagan & gerard and Dipula

ZAR 349 million

Development and Term Funding

ASCENSION PROPERTIES LImITED

ZAR 502 million

Term Funding

gROUP FIVE hEAD OFFICE Atterbury group

ZAR 408 million

Development Funding

ACUCAP PROPERTIES LImITED

ZAR 450 million

Term Funding

gROWThPOINT PROPERTIES LImITED

ZAR 750 million

Syndicated Term Funding

hYPROP INVESTmENTS LImITED

USD 40 million Term Funding

DELTA PROPERTY FUND

ZAR 306 million Term Funding

REDEFINE PROPERTIES LImITED

ZAR 488 million Term Funding

1SOUTH AFRICAN PROPERTY REVIEW

from the CEO

The Westgate Mall attack, in which 69 people were

killed, serves as a bleak warning to all property owners, including office operators, that security measures and evacuation procedures are paramount.

Soft targets such as retail centres, where thousands of civilians work and play on a daily basis, need sophisticated monitoring technology to screen for any potential threats both on the street and on the walkways inside. Security staff need to be extra vigilant, and shoppers as well as retailers need to be made aware of emergency exit protocols.

Ironically, September was National Preparedness Month in the US, while worldwide International Day of Peace was commemorated on 21 September – the same day as the attack.

How prepared are we for an attack such as the one in Nairobi? Are we screening those who enter and those who set up shop in our malls and in our office blocks?

In an exercise designed to gauge your centre’s readiness for an attack or possible natural disaster, the Building Owners and Managers Association (BOMA) International has prepared its own Emergency Preparedness Guidebook. The task force reviews all communications with its security agencies, collaborates with BOMA local associations on individual emergency response plans for their respective cities, and collates and distributes information to be used as a best practice for building owners and managers in emergency preparedness, evacuation and recovery planning. How many of the points in the box on the right can our industry tick off?

As individuals, we should have emergency plans in place with relevant contact information not only in our phones, but also in our wallets and handbags; we should have an agreed meeting point should we be separated from our family and friends when emergencies

occur; and our offices, schools and malls should have adequate supplies of water, food and first-aid equipment.

Does the local industry have any complementary measures in addition to visible security and CCTV cameras? If not, why not? And if it does, what are they – and how effective have they proved to be in averting potential security threats?

SAPOA will be looking at creating such a guide for our

members. This guide is intended to be a resource to help property professionals develop emergency plans for any sudden event, natural or human-based, that jeopardises the occupants, contents and/or physical structure of a building.

South Africa is not immune to the kind of savage, inhumane and ruthless attacks as the one experienced in Nairobi. We should be planning ahead to mitigate, and thus prevent, future emergencies and/or reduce their effects.

Neil Gopal

Are your tenants and customers safe?

SAPOA CEO Neil Gopal asks what our property sector, specifically retail shopping centres, can do to ensure security threats are snuffed out before they result in tragedy

n Airborne hazard plann Attacker surveying buildingn Building and systems general readinessn Communications preparednessn Emergency suppliesn General preparednessn Hurricane and tropical storm watch and warningn Power outage preparationn Severe floodingn Suspicious mailn Workplace violence plan

CHECK LISTS

2 SOUTH AFRICAN PROPERTY REVIEW

contents

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

Abland

Abreal

Oilgro


PROPERTYR E V I E W

November 2013

4 News8 SAPOA’s new mission and strategy10 Education, training and development14 Legal update Property rates16 Cover story Sustainability case for green buildings20 Councillors in conversation22 Going the extra green mile28 Green giants of the service industry32 Africa uncovered: South Africa37 Keep cool38 Cape Town CBD: open for business44 Tshwane landmark receives major face lift47 Grundfos’ green masterpiece53 Mixed use for a sustainable Sandton54 Focus on quantity surveyors & engineers56 Sustainability under the spotlight60 SAPOA breakfast61 Statistics62 Port Elizabeth golf day64 Off the wall Vertical farming in the city


PROPERTYR E V I E W

November 2013

South African P

roperty Review

Engineers & quantity surveyors N

ovember 2013

Banking on green investmentsMore than just finance

CAPE TOWN CBDCity development open for business

ECOFRIENDLY MASTERPIECE

Efficiently showing off engineering and

design aesthetics

GOING THE EXTRA GREEN MILEA very real passage towards sustainability

The Africa series:

Focus on

SOUTH AFRICA

ON THE COVERIn a testament to a company that’s walking the talk, Nedbank’s head office in Sandton was recognised by the Green Building Council of South Africa as the country’s first“as built” Green Star SA-rated building

Editor in chief Neil Gopal Editorial advisor Jane Padayachee Managing editor Mark Pettipher Editor Candace King Copy editor Ania Rokita Sales Riëtte Stevens Finance Susan du Toit

Contributors Advocate Portia Matsane, Martin Ferguson, David A Steynberg, Nicky Manson, Tammy SuthernsPhotographer Michael Glenister

DISCLAIMER: The publisher and editor of this magazine give no warranties, guarantees or assurances and make no representations regarding any goods or services advertised within this edition. Copyright South African Property Owners’ Association (SAPOA).

All rights reserved. No portion of this publication may be reproduced in any form without prior written consent from SAPOA. The publishers are not responsible for any unsolicited material.

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

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

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

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

Printed by Printing Solutionse: [email protected]


news

Formally Atterbury Investment Holdings, Attacq Limited recently announced its listing on the main board of the JSE under the

“Real Estate – Real Estate Holdings and Development” sector. Attacq will give investors the opportunity to share in a long-term sustainable real estate capital growth fund with a successful track record as a public company.

Since inception eight years ago, Attacq has delivered an average compound annual return exceeding 20%. “Listing Attacq will create a foundation to grow the business further,” says Attacq CEO Morne Wilken. “It enables Attacq to access capital efficiently, raise its profile and expand its investor base, all of which should enhance its prospects. Attacq’s focus on long-term sustainable capital growth distinguishes it from other JSE-listed property entities, such as REITs that predominantly focus on rental income distribution.

“When considering Attacq’s listing, we assessed the investor benefits of various structures, including REITs. But our established structure and business model of delivering sustainable long-term capital appreciation has proved successful and delivered excellent results to our investors. The timing of the listing also places Attacq in an ideal position to invest in excellent development opportunities, especially those at Waterfall Business Estate.”

Attacq will heighten long-term sustainable capital growth and improve total returns to shareholders via its strategic weighting of investments to developments. Furthermore, it will reinvest profits from rentals or occasional disposals and retain completed developments, rather than selling them, to realise development profits. Investment in Attacq will be made available by private placement, which aims to raise up to R800-million at a price per share determined by the book build, managed by Java Capital.

Apart from raising equity, the private placement is also designed to increase the spread of shareholders for Attacq. “For our existing over-the-counter shareholders, who played such an important role in establishing Attacq’s successful track record, investment in shares will be tradable on the JSE from listing. This will ultimately enhance liquidity for our shareholders,” says Wilken.

Attacq’s assets comprise both investments and developments. Its portfolio strategy is to hold 65% investments and 35% developments to optimise long-term sustainable capital growth, enhance total returns to shareholders and mitigate risk. Attacq’s asset base of R12,5-billion (as at March 2013) includes landmark commercial and retail assets and developments.

Among its developments is the prime Waterfall Business Estate. Attacq benefits from an African portfolio that includes Bagatelle Mall of Mauritius and Bagatelle Offices. It also has an effective 32,5% stake in Atterbury Africa, in partnership with Hyprop Investments and Atterbury Property Holdings, which invests in retail centres and developments across sub-Saharan Africa. “Our long-term strategy is to achieve an optimal portfolio balance of 70% of our assets by value in South Africa, 20% in other countries on the African continent and 10% internationally outside Africa,” says Wilken. “We are already making good progress on this objective and will continue to seek opportunities to further this goal as well as expand our development pipeline to grow long-term prospects.” +27 (0)87 845 1136, Atterbury.co.za/attacq

Attacq Limited ushers in exciting JSE listing

Growthpoint opens offices at Menlyn Corner

Growthpoint Properties has opened a regional office in

the 10 000m² AAA-grade Menlyn Corner in Pretoria – a prime office address that Growthpoint owns. With its excellent location and energy-efficient measures, Growthpoint has chosen this building from its portfolio of properties in Pretoria as the home base for its office team serving its clients in the area.

“Menlyn Corner is a unique proposition in the Pretoria office market,” says Rudolf Pienaar, Growthpoint Properties divisional director for offices. “Our new offices at Menlyn Corner allow us to be closer to our clients in the region and, by doing so, facilitate even better relationships. It also gives our team more time to spend at our properties and with our clients, to gain a better understanding of their businesses and how they interact with our buildings.”

“Demand for this type of prestigious office space has increased in the area,” says

Debbie Theron of Growthpoint Properties offices division. “Menlyn is quickly becoming one of the city’s most desirable office nodes, and is certainly the place to be for the banking and financial sector in the region.”

This premier office building also provides occupants with cost savings, thanks to its energy-efficient design and technologies. The façade of Menlyn Corner is designed to the new energy standard SANS 204 and energy regulation SANS 10400 Part XA.

The offices meet the new fresh air regulation SANS 10400 Part 0, and provide 100% more fresh air than formerly required. A heat pump incorporated in the construction saves 30% to 50% of the electrical energy that heating of the same capacity would require, and an air-conditioning system saves energy by allowing different zones to be activated. The offices also feature a water-wise garden. +27 (0)11 944 6000, Growthpoint.co.za

90 Grayston Drive wins safety award

Redefine Properties’ 90 Grayston Drive construction

site was awarded first prize in the Master Builders Association North Regional Construction Health and Safety Awards.

“Safety is literally top of our agenda,” says Mike Ruttell, head of development at Redefine. “We drive it home strongly by discussing it first at every site meeting. A safe site is a positive and productive site.” The main contractor for 90 Grayston Drive, WBHO, received the award and the project has now progressed into the national competition.

Redefine appointed health and safety agent ComPrac Gauteng to manage the overall occupational health and safety during the construction at 90 Grayston Drive. “In this way, we give safety due attention as well as the responsible measures and implementation from WBHO,” says Ruttell.

Speaking at the awards ceremony, executive director of the Master Builders Association North, Mohau Mphomela, said, “Companies recognised for their efforts in this regard are exemplary businesses managed


news

by people who, although still pursuing profit, would not allow that objective to harm their staff.”

Redefine is developing a 21-storey premium-grade office building at 90 Grayston Drive in Sandown, central Sandton. The R505-million redevelopment spans 19 343m² and includes 11 levels of parking and nine levels of offices above an elevated atrium. Demolished in March 2012, the redevelopment of 90 Grayston Drive is due for completion in June 2014. +27 (0)11 283 0000, Redefine.co.za

Colossal investment in African affordable housing sector

IFC, a member of the World Bank Group, and the National Housing Finance Corporation

(NHFC) recently announced investments of more than US$63-million in the second fund of global private equity investor International Housing Solutions (IHS).

The fund, named IHS Fund II, will support the development of affordable housing in South Africa and sub-Saharan Africa. “Providing affordable basic services, such as access to quality housing, is a priority for IFC in Africa,” says Saleem Karimjee, IFC senior manager for southern Africa. “IHS Fund II offers an attractive opportunity for private investors to gain access to a fast-growing market with significant positive social impact. IFC’s commitment will stimulate investment, growth and job creation in sub-Saharan Africa, demonstrating our support that can help catalyse additional fundraising.”

IFC has committed US$25-million to the fund. NHFC CEO Samson Moraba said the NHFC is committed to ensuring that all South African households within the affordable housing market have greater access to housing that is affordable and appropriate, both in terms of size and location.

“Our goal is to enhance the wellbeing and quality of life of the low- to middle-income households with the security of a home, as well as an opportunity to create wealth,” said Moraba. “We firmly believe that our deliberate strategic partnership with IHS will unlock the

delivery of housing at scale, and ultimately lead to the creation of sustainable and attractive communities, where people can live, play and pray.”

“IHS has already provided financing for more than 28 000 housing units with a combined total value of more than R8,6-billion, providing tangible positive social impact for the people living in IHS developments,” said IHS managing partner Soula Proxenos. “We can substantially expand that impact through IHS Fund II.” +27 (0)11 300 8600, Ihsinvestments.co.za

Tower Mall welcomes shoppers and investment

Dipula Income Fund welcomes its newly

developed 15 400m² Tower Mall, which opened last month. Developed by Landmark Real Estate Services, the R155-million Tower Mall is set to serve the growing Jouberton area and surrounds in Klerksdorp, City of Matlosana, and will bring about investment into the under-serviced community.

“This is the largest ever private investment into this community, and among the largest in the City of Matlosana in recent years,” says Izak Petersen, CEO of Dipula Income Fund. “The investment goes beyond providing a quality mall and excellent retail for this community. It is also an investment in the community which will boost employment and skills. This investment is in line with Dipula’s strategy of investing in quality assets in previously disadvantaged communities. We believe that this helps restore the dignity of these once forgotten people of our country.

Landmark did a sterling job in the design and development of this centre. This is an asset for the people and we are delighted that we can be part of this, and certain that it will act as a catalyst for more investment in the area.”

Landmark Real Estate Services identified the potential of this community and purchased the land five years ago. “Through a steering committee, the community played a vital role in assisting us to make this investment a reality,” says Lionel Kisten, executive director at Landmark and SAPOA National Property Developers Forum chairman. “We also received excellent support from the municipality. We’ve designed a financially feasible mall that creates a standout attractive, modern and vibrant shopping environment.

“Tower Mall will be the first modern shopping centre in this area and will definitely be the impetus to further commercial development and local economic growth.” +27 (0)11 325 2112, Dipula.co.za

From LEFT: Saleem Karimjee, Soula Proxenos, Samson Moraba


news

According to Johan Engelbrecht, director

of retail properties at JHI Properties, several interesting trends have emerged in the local retail sector.

“With public and private school holidays now more evenly spread over longer periods throughout the year, rather than coinciding, we are seeing a less noticeable impact on retail trading,” he says. “As a result, shopping appears to be more sustained rather than experiencing marked peaks and troughs, although the key festive seasons in December and Easter holiday periods still attract larger volumes of shoppers, and therefore increased consumer spend.

“In addition, with consumer spend, and more specifically the discretionary

spend, remaining under pressure for economic reasons, shoppers tend towards much higher frequency shopping in smaller volumes as opposed to the days when they carried out one major monthly shopping expedition.

“In this regard, the conveniently located neighbourhood shopping centres have benefited, as shoppers choose to visit easily accessible retail outlets more often, even twice a week.

“In line with this, retailers are keeping less stock, and restocking to suit changing consumer buying patterns.”

JHI Properties currently manages approximately 2,7-million square metres of retail space in southern

Changing trends in retail sector

SAPOA places SA on global property standard mapSAPOA is at the forefront of

a new initiative to establish global property measurement standards for property investors and users alike as part of the International Property Measurement Standards Coalition (IPMSC). Established in 2012 at a meeting in New York hosted by the World Bank, IPMSC has 20 founding members, of which SAPOA is the only African organisation.

As a first step towards achieving its goal of global property measurement

standards, the IPMSC set up its Standards Setting Committee (SSC) with 19 property experts covering property sectors in 50 countries across five continents. SA is represented on the SSC by Tony Gebhardt, principal at Hamlyn Gebhardt and a member of SAPOA’s Method of Measuring Floor Areas Committee.

Once the SSC has completed its work over several months, it will make a recommendation to its constituent bodies, including SAPOA. “The next step will be for SAPOA and other local

organisations to undertake a separate process to consult with its members,” says Gebhardt. For SAPOA, the discussion will be about the advisability of progressively amending the SAPOA Method of Measuring Floor Areas to incorporate the international recommendations.”

Global investors and occupiers have long grappled with the fact that consistent, international property standards simply do not exist at the moment. “Property assets are measured differently

in different places, and methods can vary widely, making accurate comparisons virtually impossible,” says SAPOA CEO Neil Gopal. “In this way, we can help drive a more transparent and stable property market worldwide, by enhancing public trust and building investor confidence.”

Other positive spin-offs include improved valuations and financial reporting for property holdings worldwide.+27 (0)11 883 0679, Sapoa.org.za

Sandown Valley receives face-liftDue to the ongoing demand for up-

market office space in Sandown, Johannesburg, construction group Liviero has netted a R97-million contract to extend and upgrade an office block in the sought-after Sandown Valley Crescent.

Liviero’s contract, which is being undertaken for client Zenprop, will see the five-storey office block extended to seven storeys, offering a total of 8 000m² of gross lettable area.

“This contract entails the construction of three new basement parking levels, a new glass façade, the addition of two reinforced concrete floors, the installation of three new scenic lifts and a complete remodelling of all of the floors,” says Liviero CEO Neil Cloete. “The existing lift shafts will be converted into stairwells and two new fire escapes will also be constructed.”

The refurbishment of this building will complete a series of upgrades that have been undertaken along the Crescent, which is situated in a prime location in the heart of Sandton. Liviero will complete this fast-track project in just over 10 months.

“Logistics and access are going to be a major challenge for the first six months as the additions involve extending the ground-floor slab to the entire extent of the site,” Cloete says. “Until this is done, it is going to be difficult to get materials in and out of the site.” +27 (0)11 466 2644, Liviero.com

Africa, comprising some 240 shopping centres. Despite sector challenges including rising energy costs, Engelbrecht says that the shopping centres managed by JHI Properties have remained stable, with low vacancy levels that have, in some instances, even reduced.

“We are taking a somewhat conservative view of the remainder of the year and estimate that growth in retail turnover will be between three percent and 4,5%, mainly because the spend did not materialise as anticipated over the past number of months, and more specifically over the Easter holidays,” says Engelbrecht. “General consumer sentiment continues to be increasingly conservative and we believe this is largely due to high consumer debt levels (unsecured debt remains a concern) and inflation coming under renewed pressure from a weakening rand.

“However, while foot count in general still reflects negative growth, we are seeing growth in spend per head and increased turnovers in JHI-managed shopping centres, particularly in the greater Gauteng market.”+27 (0)11 911 8000, Jhi.co.za


news

South Africa drives retail expansion in AfricaAccording to Malcolm Horne, CEO of

Broll Property Group, South African retail is driving development in Africa. Retailers are responding to increased demand from consumers in Africa, in particular expanding operations on the continent from South Africa.

Last year, South Africa was the single largest investor in foreign direct investment in Africa. Several top retailers are already staking their claim on the continent. Retail leader Massmart recently announced its aim to expand its footprint in Kenya, with ambitions in food retail in West and East Africa. In total, the group plans to open 15 new stores outside South Africa in the next three years. Shoprite Holdings already trades from 192 stores in 16 countries outside South Africa.

It opened 19 new supermarkets outside South Africa in its 2013 financial year and has a further 20 confirmed for 2014.

“In sub-Saharan Africa, growing customer demand is coupled with an increasingly well informed customer base, making it easier to position retailer brands, especially as far as fashion, supermarkets and electronics are

concerned,” says Horne. “The combination of regional retailer expansion, international retailer entry and South Africa’s retail springboard all make for an exciting market that is ready to grow at pace, but choked by a shortage of quality retail space.”

Horne notes that rapid middle-class growth in Africa has created a gap between consumer and retailer, with insufficient mall retail space. “In East Africa, certain categories of experiential and mainstream retail are missing,” he says. “Retailers who fill this gap will flow into the country once it is evident there are more new well-designed malls, ready to receive and accommodate them.”

“There are many new malls that will open in 2015 and 2016,” says Jonathan Yach, MD of Broll Kenya. “Among them are Garden City, The Hub and Two Rivers. Several malls in Nairobi are also under renovation including Nairobi’s stylish The Village Market and Sarit Centre. This will advance much-needed top- notch modern retail space for new and expanding retailers in the region.”+27 (0)11 441 4000, Broll.co.za

Improved performance in H1 2013 for SA property

The recently released SAPOA/IPD South Africa Biannual Property Indicator

shows that the South African property sector delivered an improved 9,2% total return for the first six months of 2013.

This is 30 basis points more than the December 2012 biannual total return of 8,9%. The performance growth came from high capital growth of 4,9% and an income return of 4,2% for the period. The property sector outperformed both equities at -2,8% (MSCI South Africa Equities) and bonds at -2,5% (JP Morgan 7-10 Year South Africa Government Bond Index) for the first six months of the year.

The growth was driven even higher by capital growth and firming of the rental yield by 30 basis points over the first half of the year.

Operating costs continue to be a thorn in the industry’s side, increasing by six percent compared with December 2012. Operating costs as percentage of gross rent also increased to 47,3% in this update from 46,3% as at December 2012. Property taxes, which constitute about 21% of the total operating costs, registered a strong 10,5% growth following the new municipal price increases.

Electricity, which contributes 33% to the costs, posted a growth of 4,3%. On a sector level, the retail sector posted an overall total return of 10% – 5,9% capital return and 3,9% income return.

The industrial sector followed closely with 9,1% overall return, of which 3,9% was capital growth and 5% income return.

Offices trailed behind at 7,9% total return, comprising 3,5% capital and 4,3% income return.

“It is encouraging that the SAPOA/IPD Biannual Indicator shows a modest overall improvement over the first six months of 2013,” says Stan Garrun, executive director and head of South Africa at IPD. “The retail sector continued to dominate, but the industrial market improved in a number of key aspects. Offices continue to bear the brunt of it, exacerbated by new development activity. There are conflicting signs, which in an uninspiring economy will make for interesting for reading for property investors in the next six months.”+27 (0)11 656 2115, Ipd.com/southafrica

Despite Namibian economy’s slow recovery path, JHI Properties reports

good performances in the retail and office sectors, with very few vacancies.

“Within our portfolio of managed properties, vacancies are only around 1,8%, with annual rental escalations of eight percent,” says Monica Pienaar, regional executive in Namibia for the Namibia-based JHI Properties, which operates throughout the country. Situated in the Windhoek CBD, the well-established Sanlam Centre, which comprises office and retail space, has just completed its refurbishment. This has created more foot traffic, and a new vibrancy, with tenants from the nearby office buildings as well as tourists visiting.

“In Oshakati Shopping Centre in Oshakati, northern Namibia, we have no vacant commercial space,” says Pienaar. “There is no doubt that the current tenant mix definitely contributes to the success of the centre, which is the first stop for taxis coming in

from the northern areas.” JHI Properties also reports no vacancies in the Katutura Shopping Centre in Windhoek, where refurbishment has been completed. Standard Bank has also completed an internal upgrade of its premises.

“In addition to Sheet Street and Mr Price, we have also opened the first Pep Home in Namibia at this centre earlier this year, and it is trading very well,” says Pienaar. “Fish and Chip Company has also opened its new shop, and other small tenants have opened their doors. The greater variety of stores in the centre has added significantly to the appeal for shoppers and visitors to the centre.”+264 61 252 095, Jhi.co.za

JHI reports low vacancies in Namibian retail and office sectors


vision, mission and objectives

SAPOA’s new mission and strategyExecutive director at Growthpoint Properties Limited and SAPOA president Estienne de Klerk shares SAPOA’s brand- new mission statement and tells us how the organisation is reaffirming its focus on its members

Q Can you tell us a bit about how the new mission statement compares with the old one?The SAPOA board sat to review the strategy in late July and, as part of the process, we also looked at the mission of SAPOA as an organisation.

The board focused on the core purpose of the organisation and tried to ensure that the mission carries that message to the reader.

The primary change was adding the words “protect and advance” – for our members with a commercial property interest.

Q Why has the mission statement changed?The addition of the words “protect and advance” really highlights the important role the organisation has to fulfil to guard and promote the sector’s interests.

Q How does this reflect SAPOA’s strategy and focus?Some of the key elements that we set out in our strategy as areas for the organisation to focus on, and that I would like to highlight, include:

1) Advocacy: this includes government liaison, tax legislation, competition issues, assisting the Department of Public Works, and building a broader relationship across government to promote and advance the interests of our members and the sector. Thus we are not just aligning with one government department.

2) Education and training: expanding the skills sessions offered to members.

3) Improving and expanding industry research: an economic impact study and various other initiatives.

4) SAPOA events: delivering value to members and creating platforms to advance relationships.

5) Organisational capacity review: reviewing the staffing and skills to ensure they are sufficient to deliver on the strategy.

6) Improving PR and marketing: ensuring effective communication of various activities.

“SAPOA’s mission is to be committed to actively and responsibly represent, protect and advance its members’ commercial property interests within the property industry”

Services plan for 2013/2014

Service Responsibility Frequency

EducationSAPOA Education Committee SAPOA HRD manager SAPOA marketing & events manager

SAPOA ConventionSAPOA Convention Committee SAPOA CEO SAPOA marketing & events manager

ResearchSAPOA Research Committee SAPOA CEO

LegislationSAPOA Legal Committee SAPOA CEO; SAPOA legal manager

SAPOA events- Golf days- Gala dinners - Networking functions - Research breakfasts - Workshops

SAPOA marketing & events manager

- Golf days x 6 p.a. - Gala dinners x 6 p.a. - Networking functions x 4

per region - Research breakfasts x 15 p.a. - Workshops x 10 p.a.

SAPOA PublicationsSAPOA CEO SAPOA marketing & events manager

Monthly

SAPOA committee meetings

All managersSAPOA CEO

Approx. 10 meetings per month Average of 106 committee meetings p.a.Average of 200 attendees

Vision “To be a nationally accepted and internationally recognised leading property association.”

SAPOA’s aims and objectivesl Issue a clear position on matters relevant to the property industry where the interests of its members and the economy as a whole are impacted upon.l Provide a source of information for members and government through the coalition, collection and dissemination of property data and statistics.l Enable wider participation in the industry by historically disadvantaged members of the community to become involved as owners, developers, employees and managers in the property industry.

l Provide professionally designed education programmes.l Expand contacts with government at all levels to ensure continued good relations and recognition as the authoritative voice of the commercial and industrial property industry.

Services1. Monitoring and acting on legislation2. Government lobbying3. Dissemination of research4. Hosting networking functions5. Hosting golf days6. Running educational courses7. Running workshops and seminars8. Issuing of publications and standards9. Hosting the annual SAPOA Convention


vision, mission and objectives

Key objectives for 2013/2014Strategic objective Operational objective Action

Advocacy Department of Public Works

l Review DPW leasing strategy vs the Property Charter vs the DTI codes and the impact on industry

l Review current DPW commercial administrative practices and their impact on the industry

l Review matter at SAPOA board levell Initiate discussions with the Property

Sector Charter Council (PSCC) and DPWl Assist the PSCC to ascertain status

of transformation in the industryl Table outcome to DTI and DPW

Government liaison

Engage with Government to develop platforms for open communication with local, provincial and national government

l Target specific government departments at local, provincial and national level

l Establish meetings with: - Mayor Parks Tau (JHB) - Mayor De Lille (Cape Town) - Mayor Ramokgopa (Tshwane) - Mayor Nxumalo (eThekwini)

l Initiate a “Meet the Mayor” campaign

Stakeholder engagementContinue to build relationships with affected and involved stakeholders in the public sector

l Engage affected and involved organisationsl Meet with relevant cabinet minsters (DTI,

finance, human settlements, etc)

REIT legislationEnsure the unlisted sector is brought in line with REIT dispensation

l Embark on legislative process to ensure National Treasury grants the unlisted sector REIT tax dispensation

l Engage with National Treasury and SAPOA members

Competition Commission (CC)

Competition Commission thresholds submission

l Revisit CC submission process and thresholds;l Make official submission to DTIl Investigate whether property transactions

should be part of the CC mandate

Education, training & transformation

SAPOA to continue providing the current 21 courses per annum

l Investigate professional designation for property practitioners

l Establish via a survey to top executives which educational courses the industry would like to see offered by SAPOA

l Look at setting up a course on negotiating skills for leases

l Add new courses and workshops to current offerings

Industry researchSAPOA to continue providing the current 14 reports per annum

l Plan an annual economic impact studyl Establish broker panels for Limpopo

province and Mpumalangal Re-examine the manner of releasing

research reports as a way of profiling SAPOA

SAPOA events

SAPOA to continue providing the current networking events annually and expand sponsorship opportunities to as many members as possible

l Continue to plan and hold stakeholder engagements/round-table discussions at a strategic level (e.g. “Meet the Mayor” campaign)

Membership & marketing

Membershipl Segment membership benefitsl Implement member retention strategy l Increase membership

l Segment membership categories into Category 1 and 2, ensuring fees are aligned to benefits

l Hold member induction breakfast session to ensure legal and education incorporated into this process

PR & media liaison Communication

l SAPOA publications to continue to be issued monthly

l Strengthen internal communicationsl Target the right segment with

relevant communication

l Appoint PR agencyl Bring SAPOA publications in-housel Implement regional electronic newsletters

Organisational review

SAPOA to undertake an organisational review to examine operational capacity and financial resources


education, training and development

Martin Ferguson, SAPOA’s HR, education, training

and development manager, collaborates

with thought leaders in South Africa’s property sector

Youth lekgotla hostedGovernment has a big role to play: it has to nurture entrepreneurial

spirit to ensure it shines brighter within and among the youth – the

future leaders of our country

By Zaheera Walker

Addressing more than 600 guests at the Economic Development Cluster Youth Lekgotla

in Fordsburg in September, MMC councillor Ruby Mathang said interventions have been put in place – one of which included a business plan that placed youth development at the core of the city’s mandate. The aim, he said, was to question how to help the young men and women out there.

The event was used as a platform to introduce the youth to opportunities available through the City of Johannesburg’s Department of Economic Development (DED) as well as the Joburg Property Company (JPC) and Joburg Market. The event was in line with the Joburg 2040 Growth and Development Strategy (GDS) outcomes, such as creating an inclusive, job-intensive, resilient and competitive economy that harnesses potential of citizens.

Ground-breaking initiatives“The business plan contains some ground-breaking initiatives, for example, the co-production concept,” said Mathang. “This model recognises that the delivery of services to communities will only succeed if there is involvement from all parties concerned. The communities should not be seen as participants but as drivers of service delivery, focusing on the use of local labour. This will be of benefit to SMME and young entrepreneurs.

“We are also intent on an economic transformation agenda. We’re currently reviewing the procurement procedures of the city so that they are pro-poor, pro-youth and pro-SMME. To this end, we have set ourselves a target of directing no less than R2-billion of the city’s spend towards SMMEs/youth/women.”

Speakers from JPC, Joburg Market, the Economic Development Cluster, property developers, financial institutions and SAPOA shared their knowledge on how to access the market, and offered assistance in understanding the merits of the property sector.

Youth delegate Lindile Jim said the summit was the ideal channel to access the available property and agricultural opportunities. “I have been going around in circles trying to get guidance on how to augment myself in the field but until now I was not successful. This platform has opened doors for me and has helped me to understand the fundamentals of the property sector. It has unpacked the way forward on how the city provides assistance for us to realise our entrepreneurial potential.”

In closing, Mathang said his desire was to find resolutions that gave direction on how to support emerging players within the property sector. “If I may be bold, one of the resolutions I would be happy to see is how to continue this session in the form of working groups that will continually guide and ensure that we are always on the same page,” he said. “We must be able to demonstrate that this engagement is not another talk shop, but a gathering of minds for a better city, and a better country.”

Some of the resolutions l DED will form and facilitate a steering

committee to monitor projects targeted at the youth.

l Educational programmes for property incubation, entrepreneurship and learnerships will be put in place.

l There will be monitoring and status reports for the R2-billion allocated for the designated groups by CoJ and DED.

l Enterprise development should be made a compulsory element of all JPC, DED and JM contracts.

l JPC Property training programme: create an NQF level certificate.

l Supply chain database registration: all entities within DED should accept and help the designated groups on their database.

l The Joburg Property Company (JPC) was established in 2000 as the only mandated agency of the City of Johannesburg to manage and develop land and property on behalf of the city. l It currently manages a property portfolio worth more than R8,8-billion, with 64 000 properties covering at least 39 000 hectares. l Since 1 November 2012, JPC has merged with the Facilities Management Unit and Metro Trading Company in an effort to consolidate key functionalities and provide excellent service delivery to its stakeholders.

POINTS TO NOTE

Department of Economic Development MMC councillor Ruby Mathang gives the opening address at the Youth Lekgotla held at the ImageLifestyle Centre in Fordsburg



SAPOA calls for bursary sponsorship

In 2010, Pareto Limited and SAPOA established the SAPOA Pareto Bursary Scheme with the sole

objective to create a fund for scholarships and bursaries. The main aim was to focus on education, training and development in the commercial property industry. The beneficiaries of the trust are previously disadvantaged individuals.

The intention of the Bursary Scheme is to recruit and enrol new students every year, and to reach a stage where we will be in a position to provide (on an annual basis) graduates who are qualified in commercial property, to the SAPOA members and the commercial property industry.

Management of the schemeThe SAPOA Industry Bursary Scheme is managed by trustees and administered by SAPOA, and includes the following services:l The SAPOA Education, Training and

Development Committee interview and select students in terms of the sponsoring companies’ mandate.

l The SAPOA education manager will assist with university and hostel registrations.

l Manage the payment of study fees, accommodation, books and pocket money.

l Provide quarterly feedback to SAPOA Industry Bursary Scheme trustees and the subcommittee consisting of sponsoring employers.

l Arrange student vacation work with sponsoring companies.

l Ongoing mentoring and quarterly one-on-one student meetings.

l Managing student progress and performance.As can be seen, SAPOA takes the administrative management of the scheme out of the hands of its members, who can focus on their core business activities. The end result is that the industry has access to qualified graduate property students, and they will be able to address their BBBEE and Property Charter targets with skilled people. Furthermore, in terms of the recently gazetted Property Charter, members can utilise Code 700, the socioeconomic development code, to fund the SAPOA Bursary Fund.

This Code deals with the benefit companies can derive from contributing towards socioeconomic development or sector-specific initiatives that promote access to the economy for PDIs. The compliance target is 1% of net profit after tax,

and in terms of the charter the weighting points are 3. SAPOA members are therefore requested to consider making this 1% NPAT contribution to the SAPOA Bursary Fund. This will be an initiative that will ensure constant financial injections to the trust. Members will benefit as follows:l Comply with their BBBEE targets.l Contributions utilised to educate and

train people in commercial property.l Scarce skills in commercial property addressed.l Members have opportunity to employ skilled

graduates, qualified in property or as mandated.l The SAPOA Bursary Scheme is registered and will

issue Section 18A certificates for tax purposes, so participating members will receive tax rebates.

However, to achieve the SAPOA Industry Bursary Scheme objectives, more funds and sponsorships to the scheme are needed.

Our first intake of 10 bursary students will graduate this year; they have already been placed with our participating sponsors and other members.

If each SAPOA member company commits to sponsoring one graduate for four years, we will have 1 700 qualified graduates that will enter the commercial property industry by the end of 2017.

SAPOA, on behalf

of the commercial

property industry

makes an appeal

to all its member

companies to join

its current sponsors

and contribute

sponsorships

and donations to

the bursary scheme


For more information, contact: Martin Ferguson,

human resources development manager t: +27 (0)11 883 0679

e: [email protected]



PROUD SUBSIDIARY OF EPS

2216_JHI_Add_SAPOA Prop Review_TF_Nov_2013_(A)_PRINT.indd 1 2013/10/04 11:05 AM

First for property sector careers

The Property Sector Charter Council (PSCC) recently

organised a Property School Career Week to create interest among learners about the career opportunities in the property sector. The aim of the exercise was to create a single platform for learners to find out as much as possible about the industry by engaging with professionals from various representative bodies so that they could understand more about the industry and about available career options within it.

Targeted at learners in Grades 10 and 11, the Property School Career Week event was held in Gauteng at a venue sponsored by Vunani Property Investment Fund (Investment Place in Hyde Park) from 25 to 27 September. Sixty learners from township

schools in Soweto, Thembisa and Alexandra took part. This event was the first of its kind in the property sector, and the 2013 career week was a pilot to gather lessons that would enable PSCC to roll out a similar annual programme nationally.

Property sector overviewThe presentations on day one began with an overview of what the property sector is about. Learners were informed about tertiary institutions that offer property studies in Gauteng and the criteria for acceptance in those faculties. Learners were also exposed to the departments of government that make use of property knowledge and offer property-related jobs,

and told about which voluntary associations are represented in the property sector and what they offer their members.

Day two’s schedule included speakers expanding in more detail on the different disciplines within the property sector. The disciplines discussed included asset management, brokering, property management, estate agency, conveyancing, property ownership, corporate advisory roles, valuation, facilities management, shopping centre management and portfolio management. Each of the speakers talked about what their role entails, as well as how it links with and contributes to the property value chain.

Martin Ferguson of SAPOA, which represents commercial property owners, told learners about the role, mission and function of the organisation and how it serves the property industry. Similarly, the other voluntary associations covered the same content with respect to their organisations. These included associations and/ or regulators such as SAFMA, SAIBPP, WPN, EAAB, SACPVP and Services SETA.

Two university students were also part of the programme: a first-year and a senior honours student currently busy with

property studies. Both gave some insight into the day-today life of a university student in the property studies faculty. The learners were Dintle Mahlatsi and Nthabiseng Makgabo.

On day three, three separate site visits were arranged. Learners were split into three groups of 20. The first group of learners visited OR Tambo International Airport; the second group went to South Gate Shopping Centre; and the third group visited an office development in Pretoria (the Department of Environmental Affairs). The intention of the site visits was to expose the learners to practical property projects, so that they would be able to relate and link the theory shared with them by the various professionals to a specific practical project.

Roll-out to other provinces in 2014“We are very pleased with the way the career week turned out and would like to roll out the concept to other provinces in 2014,” said Portia Tau-Sekati, CEO of PSCC. She emphasised the need to educate youngsters about the possible careers available and about choosing property as a career option – particularly those from a disadvantaged background, as they will ultimately be the ones to help transform the sector.

“The Property School Career Week has changed my whole perspective on life and my success,” said one of the learners. “Every single speaker at the event inspired us. I vow to make a success of my life despite the circumstances I come from. Thanks to the Property Sector Charter Council for an inspiring career week.”

PSCC CEO Portia Tau-Sekati

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legal update

We take a look at how

rates affect municipal

taxation on property

By Advocate Portia Matsane,

manager of the legal services

department at SAPOA

The rate in the rand: Property ratesRates are necessary to fund service delivery

and other municipal services and outputs in South Africa. To ensure excellence in corporate governance, all municipal stakeholders must be consulted on the municipality’s rationale to the levying of rates, and informed about the rates process.

In terms of Section 229 (1) of the Constitution of the Republic of South Africa Act 108 of 1996 (hereinafter referred to as the “Constitution”), a Municipality has the power to levy a rate on property in its area. In this case, “rate” means a tax on property that is imposed by the municipality, as envisaged in Section 229 (1) (a) of the Constitution.

Section 229 (2) (a) of the Constitution states that a municipality may not exercise its power to levy rates on property in a way that would materially and unreasonably prejudice the national economic policies, economic activities across its boundaries, or the national mobility of goods, service, capital or labour.

Section 16 (2) (a) of Municipal Property Rates Act No 6 of 2004 (MPRA) provides that if a rate on a specific category of properties or a rate on a specific category of properties is above a specific amount in rand, is materially and unreasonably prejudicing any of the matters listed in subsection (1) above, the Minister, after notifying the Minister of Finance, must by notice in the Gazette give notice to the relevant municipality or municipalities that the rate must be limited to an amount in the Rand specified in the Notice.

MPRA, in support of the imperatives of the Constitution, provides further that a municipality affected by a notice referred to in paragraph (a) of Section 16(2) of MPRA, must give effect to the notice and, if necessary,

adjust its budget for the next financial year accordingly (our emphasis). MPRA, through Section 16 (3) (a), gives any sector of the economy, after consulting the relevant municipality or municipalities and organised local government, the discretion to, through its organised structures, request the Minister to evaluate evidence to the effect that a rate on any specific category of properties, or a rate on any specific category of properties above a specified amount in rand, is materially and unreasonably prejudicing any of the matter listed in paragraph (c) above.

If the Minister is convinced by the evidence referred to in paragraph (a) that a rate on any specific category of properties or a rate on any specific category of properties above a specific amount in rand, is materially and unreasonably prejudicing any of the matters listed in paragraph (c) above, the Minister must act in terms of paragraph (d) above. Such a notice must give reasons why a rate on the relevant category of properties, or a rate on the relevant category of properties above the amount specified in the notice, is materially or unreasonably prejudicing a matter referred in paragraph (c).

Local Government: Municipal Property Rates Act No 6 of 2004 (MPRA)In terms of Section 3 (1) of the Local Government: Municipal Property Rates Act 6 of 2004 (MPRA) and Section 62 (1) (f ) of the Local Government: Municipal Finance Management Act 56 of 2003 (hereinafter referred to as the MFMA), a Municipality should adopt and implement a policy on the levying of rates on rateable property.

legal update

““


The rate in the rand: Property ratesIt is acknowledged through

the MPRA that income

derived from property rates

is a critical source of revenue

for municipalities to achieve

their constitutional objectives,

especially in areas that have

been neglected in the past

because of discriminatory

laws. It is essential that

municipalities exercise their

power to impose rates within

a statutory framework that

not only enhances certainty,

uniformity and simplicity

across the nation, but also

takes into account historical

imbalances and the rates

burden on the poor

The Council must, in terms of Section 6 (1) of the MPRA, adopt by-laws to give effect to the implementation of its rates policy. Council must further, in terms of Section 5 (1) of the MPRA, annually review, and may, if necessary amend this policy. Proposals for reviewing this policy must be considered by the Council in conjunction with its annual operating budget.

MPRA gives Council the discretion to levy an additional rate on property in a special rating area and, in doing so, may differentiate between categories of property.

This discretion is provided for in Section 22 of the MPRA. The MPRA is emphatic on the need for all persons liable for rates to be treated equitably as required by the Act. What is noteworthy is that the preamble to the MPRA provides that the Constitution enjoins local government to be developmental in nature, in addressing the service delivery priorities of our country and promoting the economic and financial viability of municipalities. It is further stated that there is a need to provide local government with access to a sufficient and buoyant source of revenue necessary to fulfil its developmental responsibilities.

It is acknowledged through the MPRA that income derived from property rates is a critical source of revenue for municipalities to achieve their constitutional objectives, especially in areas that have been neglected in the past because of discriminatory laws. It is essential that municipalities exercise their power to impose rates within a statutory framework that not only enhances certainty, uniformity and simplicity across the nation, but also takes into account historical imbalances and the rates burden on the poor.

Period for which rates may be leviedSection 12 (1) of MPRA provides that when levying rates, a municipality must levy the rate for a financial year. A rate lapses at the end of the financial year for which it was levied. Subsection (2) provides that the levying of rates must form part of a municipality’s annual budget process as set out in Chapter 4 of the MFMA. A municipality must annually at the time of its budget process, review the amount in rand of its current rates in line with its annual budget for the next financial year.

The interpretation of subsection (1) and (2) of Section 12, read together with the definition of “rateable property” implies that each year a municipality must determine and review the amount in rand of its current rates. This seems to imply that the rate automatically lapses at the end of the financial year, i.e. 30 June of each year. This interpretation is supported by Section 13 (1) of MPRA, which provides that a rate becomes payable as from the start of a financial year or if the municipality’s annual budget is not approved by the start of the financial year, as from such later date when the municipality’s annual budget, including a resolution levying rates, is approved by the provincial executive.

ConclusionMPRA clearly states that a rate becomes payable as from the start of a financial year or if the municipality’s annual budget is not approved by the start of the financial year, as from such later date when the municipality’s annual budget, including a resolution levying rates, is approved by the provincial executive. A municipality must levy the rate for a financial year and such rate lapses at the end of the financial year for which it was levied. The rate is levied on the market value of the property. A municipality must annually, at the time of its budget process, review the amount in rand of its current rates in line with its annual budget for the next financial year.


cover story

An increasingly compelling sustainability case for green buildings

The advantages of sustainable building design, construction and operation of green buildings

are becoming increasingly evident in all areas of business, most notably the bottom line.

“Nedbank’s position as a South African leader in terms of green building finance and occupation has delivered immeasurable benefits for the bank and its stakeholders, many of which involve areas of sustainability other than the environment,” says Ken Reynolds, Gauteng regional executive at Nedbank Corporate Property Finance. “Since September 2010, when Nedbank’s Phase II head office building in Sandton was recognised by the Green Building Council South Africa as the country’s first ‘as built’ Green Star SA- rated building, we have steadily grown our involvement in, and commitment to, green buildings across South Africa.”

Apart from the obvious positive environmental contribution that green buildings can make in terms of energy efficiency, reduced carbon emissions and lower utilisation of scarce natural resources, Reynolds emphasises that Nedbank has experienced many other, often less obvious, benefits that make the case for green buildings even more compelling.

“It’s becoming evident to us that, when it comes to the potential for economic returns that can be unlocked for any business through a green building commitment, we’re really just scratching the surface in South Africa,” he explains. “Even so, it’s widely accepted that a property built or retrofitted using truly green design principles

Nedbank highlights the benefits and value of green buildings, as this sustainable case study gathers green

momentum in South Africa

has the potential to deliver reduced operating costs of around 30% per year.”

According to Reynolds, Nedbank has seen this level of annual operations cost saving delivered consistently by its Phase II head office building, and the majority of the other seven Green Star SA rated buildings the bank occupies or those that it has financed over the past four years. “When you consider that this level of saving means an organisation can effectively recoup the cost of green design and construction within three years, there is simply no viable argument that can be made against green buildings any longer.”

Reynolds also points out that the case for green building design and construction goes further than the environmental and economic benefits. He says that the social and corporate sustainability advantages seen by Nedbank since it pioneered the first Green Star SA-rated building in South Africa are equally compelling.

“While it is too early in the history of green buildings to be able to offer statistical data to support the claims that they deliver increased productivity and happier employees, as a business that occupies a number of these green buildings, Nedbank has first-hand experience that they undoubtedly deliver these benefits,” he says.

He points particularly to raised levels of employee goodwill, wellbeing and productivity as key benefits that Nedbank has seen unlocked by its green buildings – particularly those like Menlyn Maine – that exist within the country’s emerging green precincts.

Ken Reynolds, Gauteng regional executive at Nedbank Corporate Property Finance


cover story

“Not only do these green precincts create ideal natural environments in which employees can live, work and feel closer to nature, they also offer viable solutions to the densification, transport and security challenges that currently face many of South Africa’s local municipalities,” he says, adding that it is not just Nedbank that has experienced the benefits of green buildings. The approach is delivering increasing commercial value for its property development clients as well.

“As retail, commercial and residential tenants become more environmentally aware, we’re increasingly seeing that green buildings have the potential to deliver higher, more consistent revenues,” he says. “It is highly likely that, over time, these green properties will experience lower vacancy rates while potentially being able to levy higher rentals.”

“It’s becoming evident

to us that, when it

comes to the potential

for economic returns

that can be unlocked

for any business

through a green building

commitment, we’re really

just scratching the surface

in South Africa”

THIS PICTURE Spacious communal areas and plants create a natural environment where employees can feel closer to nature. OPPOSITE TOP Nedbank’s Phase II head office in Sandton was recognised by the Green Building Council South Africa as the country’s first ‘As Built’ Green Star SA-rated building

Gauteng: Ken Reynolds +27 (0)11 294 1948Western Cape: Richard Thomas +27 (0)21 416 7121KZN: Anand Joseph +27 (0)31 364 2629For more on Nedbank Corporate Property Finance visit Nedbank.co.za.


cover story

The Green Building Council South Africa (GBCSA) and Nedbank Corporate Property

Finance launched the new Green Star SA Existing Building Performance rating tool at the Green Building Convention held recently in Cape Town, aimed at addressing the demand from an entirely new segment of the property market in South Africa.

The new rating tool will allow effective and objective measurement of an existing building’s environmental performance in operation and assess key performance indicators relevant to environmental issues such as energy and water consumption.

“This powerful tool will give property owners the opportunity to make every building a greener building, thus leveraging the benefits, such as lower operating costs, higher returns on assets and increased property values,” says Frank Berkeley, managing executive at Nedbank Corporate Property Finance.

To date, the GBCSA’s efforts have focused on new buildings – advocating specific design and technical interventions to be implemented before

Frank Berkeley, managing executive at Nedbank Corporate Property Finance

and during construction to improve environmental impact and performance.

“It is a natural progression of the rating tools currently at our disposal, and unlocks a whole new frontier for the GBCSA,” says GBCSA CEO Brian Wilkinson. “New buildings only account for one or two percent of a company’s property portfolio, so the Existing Building Performance rating tool is a game changer, allowing all property owners to embrace environmental sustainability across their entire building stock.”

“This powerful tool will give property owners the

opportunity to make every building a greener building, thus leveraging the benefits,

such as lower operating costs, higher returns on assets and increased property values”

Green forces uniteNedbank Corporate Property Finance and the Green Building Council shine a spotlight on the performance of existing buildings

The Existing Building Performance tool is now available in pilot form to allow for feedback from stakeholders in the South African market. The pilot phase will run through 2014; during this time, the tool is available for download on the GBCSA website (www.gbcsa.org.za). To register interest in participating as a pilot project, please email [email protected].

Identify, manage, improve“The Existing Building Performance tool focuses first on understanding the issues, then on managing existing buildings more efficiently and sustainably,” explains GBCSA project manager Francois Retief. “It will allow building owners to analyse and benchmark their property portfolio, set out plans for improving the performance of their building stock, and create a common language that recognises the value of high-performing buildings, which can be communicated to both tenants and investors.”

The credits of the rating tool will fall within three broad categories, considering measurable performance indicators such as water, energy and waste management; lease agreements, management contracts or procurement policies that define performance requirements; and building attributes that inform performance.

Environmental imperativeGlobally, the built environment is responsible for about 40% of the world’s energy consumption, and generates one third of global carbon dioxide emissions. Thus this sector presents the single largest – and most cost-effective – opportunity to tackle climate change, and limit natural- resource depletion.

“With a fast-growing economy and population, developing human and financial systems to match has taken a massive toll on the planet,” says Berkeley. “As South Africa’s green and caring bank, Nedbank has developed a clear vision of a thriving future – a future it wants for all South Africans – by ensuring that it plays its ‘fair share’. This is embodied by what we have termed Fair Share 2030, a plan that is built on a clear vision of a prosperous South Africa that will have successfully addressed its major social, environmental and economic challenges by 2030. The launch of this new tool is a step in that direction.”

9106

MAKING

TOP-RATEDPROPERTY FINANCEHAPPEN

Rated first in the 2013 PwC South African Banking Survey.Nedbank Corporate Property Finance has been rated the top property finance bank in South Africa. We know that when we do well, our clients enjoy the benefits. We are honoured by this accolade, which affirms our position as market leader in the industry.

nedbank.co.za Nedbank Limited Reg No 1951/000009/06. Authorised financial services and registered credit provider (NCRCP16).


sapoa national councillors

Q Q

Q

Q

Q

Councillors

Who is Desirée Nafte?I’m employed at Hyprop Investments Limited as the national legal executive. Hyprop Investments Limited is South Africa’s largest specialised shopping-centre fund listed on the JSE. The fund currently has R22,5-billion in assets under management. Hyprop Investments’ property portfolio includes 11 prime shopping centres over 720 600m² of lettable area, classified as regional, large-regional, super-regional and lifestyle. I completed my BA LLB at the University of Witwatersrand in 1989, and was admitted as an attorney in 1993. After practising as an attorney in private practice for several years, I entered the commercial property industry as a legal advisor, specialising in property law and landlord and tenant law. I joined Hyprop Investments Limited in October 2011, with more than 11 years’ experience in the commercial property industry.

I am the current chairperson of the SAPOA Legal Committee.

The Legal Committee consists of several legal

advisors from various property companies

in South Africa and a few attorneys in private practice. On average, we meet four to five times a

year to discuss various legal

issues concerning the property

industry. In our meetings we usually

consider all legal issues affecting the industry as a

whole. My role as chairperson of the Legal Committee is to ensure

that SAPOA continually monitors legislation and government or municipal policies relating to the industry in order to ensure that SAPOA members are protected and ensure that SAPOA gives practical guidelines to its members regarding the laws affecting the property industry.

When did you join SAPOA, and what are your thoughts on the organisation?Although the commercial property environment is highly competitive, during 2007 and 2008 I saw the need for legal advisors from various commercial property companies to come together and work with each other to lobby against the amounts of legislation that was being promulgated against the property industry and affecting our industry. Unaware of the SAPOA Legal Committee, I formed the Association of Property Lawyers and, upon discovering in 2009 that there was already a legal committee at SAPOA, I joined SAPOA and we merged the two entities together.

It was a logical decision at the time as SAPOA is a strong and formidable organisation and has a lot of clout. SAPOA has a very important role to play in the property industry, and it is essential that such an organisation exists to unify the property commercial sector under its umbrella so that we can all speak with “one voice” on matters affecting the industry. The Legal Committee provides a very valuable service to SAPOA members by getting involved in litigation where necessary, lobbying against impending legislation where such legislation will have a negative impact on the property industry, providing training, providing legal guidelines and being involved in property research.

What have been your greatest achievements at SAPOA so far?On 8 November 2012, SAPOA won a very important court case against the council of the City of Johannesburg Metropolitan Municipality, when the Supreme Court of Appeal held that the council had unlawfully increased the property rates levied on owners of business, commercial and industrial property within the jurisdiction of the Johannesburg Metropolitan Municipality during the 2009/2010 budget. The SAPOA Legal Committee has prepared a standard sale of commercial property agreement in respect of a transaction that falls within the scope of the Consumer Protection Act No 68 of 2008 (CPA). The Committee has also prepared standard lease agreements for the commercial and retail property industry where the tenant is a consumer as defined in the CPA and the lease is a transaction that falls within the scope of the CPA. These agreements are available to members of SAPOA together with practice notes on each agreement.

The practice notes explain certain aspects of each agreement as well as certain sections of the CPA affecting the property industry. These agreements are to be used as guidelines for the industry and, as each transaction or lease is unique, the user of these agreements must seek and obtain legal advice for their specific requirements. In conjunction with Roslyn Lake of Norton Rose, SAPOA held seminars on the CPA for its members. These seminars looked at the CPA in relation to the property industry and were well attended and received by the members of SAPOA. In October 2013, a lecture was held in Johannesburg by attorneys Lauren Barnett and Eric Levenstein of Werksmans Attorneys to members of SAPOA on the business rescue provisions of the Companies Act No 71 of 2008.

in conversation

Who is Gareth Shepperson?I am an attorney and conveyancer, with additional qualifications in tax and in business rescue practice. I practise at my own firm, Shepperson Attorneys. We are a boutique law firm catering to our clients’ individual requirements. We focus on corporate, commercial and property law, and aim to be an integral part of your success by providing solutions that enhance your unique circumstances. I am chairman of the Gauteng Regional Council (GPC) at SAPOA, which also affords me a seat on the National Council. In addition, I am also a member of the National Legal Committee at SAPOA.

When did you join SAPOA and what are your thoughts on the organisation?As a consequence of my passion for property and my interactions with SAPOA past president Dr Sedise Moseneke, I joined SAPOA in 2008.


sapoa national councillors

Q

Q

Q

I was privileged to attend SAPOA’s prestigious Property Developer Programme at the UCT Graduate School of Business in 2009, which inspired me to become more involved in the activities of SAPOA. And the more involved I became, the more I appreciated SAPOA’s role and importance within the property industry. Whether it be the education of future leaders in our industry or the vital role that SAPOA plays in monitoring legislation and municipal administration, the property industry is fortunate to have a body such as SAPOA looking after its interests.

What have been your greatest achievements at SAPOA so far?I hope that people believe I have done a reasonable job of leading the GPC. I’ve tried to focus the Council’s attention on a limited number of core areas where we can make a meaningful contribution on behalf of our members, rather than being a mere “talk shop” for all aspects of the property industry.

I am fortunate to have an excellent group of individuals who sit on the Council and who contribute to the enhancement of the industry despite busy schedules and full-time careers.

As part of your portfolio at SAPOA, what are the current industry challenges and how can these be solved? How can SAPOA assist with these issues?There is a plethora of legislation affecting all role players within the property industry. My firm has recently identified 72 separate Acts that affect our property clients, and the list is growing. With more “red tape” in the form of pending legislation (such as the Expropriation Bill) this trend shows no sign of abating. SAPOA’s monitoring role is absolutely vital in this regard in order to alert all of our members to the potential pitfalls and to actively engage with local and national government where required.

Obviously, we have little influence over external issues such as the labour market and macroeconomics. But SAPOA’s research in conjunction with the IPD is extremely helpful in identifying and quantifying these issues. SAPOA’s role in educating its members is vital, and it would be remiss of me not to mention our superb networking functions, where our members can mix with one another in a social atmosphere.

What are your future plans with SAPOA? What would you like to achieve alongside – or for – the organisation going forward?My term as chairman of the Council comes to an end next year but I expect

to continue participating in the GPC as well as the National Legal Committee. I would love to take up any leadership positions in which I think I can add value.

Q Q

We speak to our national councillors about their role at SAPOA and their future goals at the organisation

By Candace King

This lecture focused specifically on how these provisions affect commercial and retail landlords where tenants place themselves under business rescue. From the time that I have joined the SAPOA Legal Committee until now, the Legal Committee has transformed itself from a loose body of members to being a committed, hard-working, dedicated, organised committee of legal advisors. The Legal Committee functions well and effectively; we hold regular meetings and carry out our undertakings. The success of the Legal Committee is largely due to the commitment and hard work of Advocate Portia Matsane who is employed as the legal advisor at SAPOA. Her enthusiasm and responsibility to SAPOA and its members has been of tremendous

benefit to the organisation, the members and the Legal Committee.

As part of your portfolio at SAPOA, what are the current industry challenges and how can these be solved? How can SAPOA assist with these issues?The most important challenge is the amount of legislation that has been promulgated against the property industry, which has imposed cumbersome legal and administrative requirements on the industry. We are also facing huge challenges in our industry with the Expropriation Bill and the Property Transaction Bill, and the Legal Committee’s role is to

ensure that we lobby against these Bills and to ensure that the voice of the commercial property sector is heard.

What are your future plans with SAPOA? What would you like to achieve alongside – or for – the organisation going forward?For the remaining period of my term as chairperson I want to focus on lobbying against impending legislation and to continue to provide practical guidelines to the industry. In this regard, the Committee wishes to:1) Finalise the guidelines for the

property industry in respect of the application of the Financial

Intelligent Centre Act No 38 of 2001 to the property industry;

2) Provide guidelines to the industry in respect of the business rescue provisions of the Companies Act;

3) Hold a lecture for members of SAPOA on the Protection of Personal Information Bill;

4) Once it comes into effect, provide guidelines to the industry on the Protection of Personal Information Bill;

5) Continue to lobby against certain provisions of the Expropriation Bill;

6) Continue to lobby against the Property Transaction Bill.


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Going the extra green mileSustainability in the property industry is no longer a fairy tale. The green movement is very real and will become imperative in the near futureBy Candace King

A t a recent property development conference, where sustainability was a highlighted topic,

a panellist jested, “Why install an expensive, ‘green’, state-of-the-art air conditioner when you can just put on a jersey or take it off?”. Jokes aside, this sentiment is common in the South African property industry. Many still believe that green building is far too expensive, unprofitable, unnecessary and merely a phase we’re going through.

Despite the negativity and the non-believers, the greening of our built environment is definitely not a fad, and does have tremendous benefits. Several property players are making inroads with prestigious sustainable commercial developments that are mushrooming across the country. These companies are not only developing green buildings because they are ecofriendly and aesthetically appealing; they are developing sustainable structures because it’s something all of the industry will have to do in the near future.

“South Africa has passed the key tipping point with green buildings,” explains Brian Wilkinson, CEO of the Green Building Council of South Africa (GBCSA). “Following the launch of the Green Star SA rating system in 2008, green building gathered momentum and is now mainstream in the commercial property industry. There is pressure from industry stakeholders, asset managers, tenants and the government to build green, but there are still pockets of scepticism in the commercial property industry, specifically around the perceived cost of initiating, building, procuring and operating green.”

“Green building is not a fad,” says Bruce Kerswill, founding chairperson of the GBCSA. “It is a response to the new global realities of energy and resource depletion. South Africa may be a couple of years behind the leaders but green building in the country is growing rapidly in spread and sophistication, and South Africa will soon be up there with the best.”

“The green building industry in South Africa is undergoing a transition from an early adopter stage, where few companies implemented green building practices, to these practices becoming standard,” says Wilkinson. “No longer is it only companies that are already committed to the green building industry that are constructing greener buildings – we are now seeing implementation from a far wider base.”

Since its formation in 2007, the number of GBCSA ratings has doubled annually, with almost 40 certifications achieved since the rating system has been in place, which is just over four years. This reflects a similar growth pattern to the council’s Australian counterpart, the Green Building Council of Australia (GBCA), which now has more than 500 certifications after a decade of rating the country’s buildings. “For an institution that is relatively young – just six years old – this is an incredible achievement, especially given that the council was established during the economic downturn,” says Wilkinson.

In recent years, green buildings have increasingly become “must-haves” in a world where sustainability has become indispensable. Although green building practices fundamentally focus on environmentally friendly practices, they also make economic and business sense – solar panels, rainwater harvesting and double glazing are putting a dent in high utility costs.

Greening affordable housing

In December 2011, ahead of COP17, a small, ordinary street of 30 low-

cost houses in Cato Manor, Durban underwent a “green upgrade”. With

the world’s attention focused on South Africa for the international climate change talks, the GBCSA,

in association with the World Green Building Council, wanted

to demonstrate that greening low- income housing can also generate a range of socioeconomic benefits and materially improve the lives of the people living in them. The Cato

Manor Green Street retrofit is a living showcase and celebration of how greening interventions in low-cost housing can improve quality of life

for residents and provide benefits for the country. It points towards a more

sustainable approach for housing delivery and human development.

Brian Wilkinson, CEO of the Green Building Council of South Africa (GBCSA)


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“The industry is increasingly embracing green building concepts,” says Wilkinson. “Through our work within the industry in South Africa, the GBCSA has witnessed first-hand the passion, innovation and motivation that is driving sustainable design and development in the country. Green and resource- efficient buildings are an area of growing focus in the commercial property and construction industry, spurred on by severe electricity shortages, steep price increases, building regulations and the imminent Carbon Tax.”

ALW Estates director Gary Woolf says that in the past greening wasn’t a priority. However, with energy costs escalating, the minimising of operating costs has become important. Green building can alleviate these in the long term. “Internationally, greening is becoming a corporate responsibility among big companies,” he says. “The minimising of company carbon footprint has also become imperative.”

In terms of developing a building, Woolf notes the old way of thinking was that the less spent on a building, the higher the return. Now, the green train of thought is to spend extra on a green building so the end user pays less in the long run. “There is only one way forward – to build with the long term in mind, to build green buildings,” he says.

ALW Estates is currently in the process of developing its first on-spec building, Atholl Towers, which is aimed to be registered for a 4-star Green Star SA Office v1 Design rating by the GBCSA. Not only is ALW Estates building and developing Atholl Towers, the company is also teaching South Africans the benefits of going green and how to become more economically conscious. With the development of

Atholl Towers, which is scheduled for completion in early 2014, ALW Estates is also creating employment through interdependent industries such as plumbing, glazing, architecture and others.

The building will feature a modern, iconic design and open concept spaces. It boasts an energy- efficient envelope through its glazing and insulation, while its energy-efficient design incorporates optimised air-conditioning and a central heat-recovery system, motion sensor light fittings and hot water generated from waste heat from the air-con system. It will also feature Otis GeN2 regen drive elevators, which are up to 75% more efficient than non-generative drive lifts.

“We believe the building will be one of the first Green Star-rated buildings of this magnitude to be built on spec in South Africa,” says Woolf. “We really believe both landlords and tenants will increasingly look for such properties to lease and rent, as they offer benefits to both parties. According to the GBCSA and SAPOA Green Lease Toolkit, research shows that green buildings have large reputational, operational and long-term financial benefits for landlords and tenants, but in different ways. So we wanted to construct a new building, on spec for rent, that would offer all that.”

Talking point trendsAccording to McGraw-Hill Construction’s 2013 SmartMarket Report, “World Green Building Trends: Business Benefits Driving New and Retrofit Market Opportunities in Over 60 Countries”, green building is accelerating around the world due to the growing belief that it is a long-term business opportunity.

n Established in 2007 by leaders from all sectors of the commercial property industry.

n Is an independent, non-profit, membership- based organisation.

n Focus includes commercial or higher-income building applications, multi-unit residential developments and, more recently, lower- income residential buildings.

n Currently has: • 39 Green Star SA certifications • More than 3 000 people educated on Green Star SA • 400 accredited professionals • 1 000 member companiesn Is one of 92 green building councils that

make up the World Green Building Council.n Is a full member of the World Green

Building Council.

GBCSA facts

Atholl Towers, which aims to be registered for a 4-star Green Star SA Office v1 Design rating by the GBCSA


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Fifty-one percent of the architects, engineers, contractors, owners and consultants participating in the study anticipate that more than 60% of their work will be green by 2015, up from 28% of firms in 2012.

The GBCSA believes that green building will grow from predominantly new buildings, into the existing building sector, as well as through implementation by tenants in the fit-out of their space. Wilkinson says we will increasingly see the main players differentiating themselves on the basis of their sustainability credentials. Property managers and developers will actively use their green credentials in marketing of vacant space and for ensuring retention of existing tenants.

This will leverage the virtuous triangle of lower operating costs for the tenant, fulfilling the responsible investment mandates from asset managers and the very real objective of climate-change mitigation. The economic argument will be taken as a given. Similarly, tenants will also want to demonstrate their commitment to sustainability through their own fit-outs as a response to customer and stakeholder requirements. The main move, however, will be when an A-grade building and a green building are seen as synonymous. And according to Wilkinson, this is not far off.

One intriguing trend gaining momentum in South Africa is the concept of green roofs, a greening movement that has been adopted around the world, including in Australia and the US. Due to climate change, rapid urbanisation, population density and an increasing shortage of quality agricultural land, urban green roofs are fast becoming a viable alternative.

“Green roofs are wonderful opportunities,” says Wilkinson. “Apart from the obvious benefits of CO

2 absorption, our great climate has meant these

features have become used, either as a staff amenity as is the case at Alan Gray’s new head office, No 1 Silo, where the green roof will be part of the in- house gym facility, to client entertainment facilities, as is the case with Aurecon’s Century City building.

Dispelling the myths

The business case for green building continues to stack up.

We now have evidence that green buildings deliver a range of

quantitative and qualitative benefits, from lower operating costs and increased office productivity to

faster patient recovery times and improved student results on tests. Many associate green with higher

costs and a common misperception is that building green can add as much as 17% capital cost to a project – but this is changing.

There is also evidence that green buildings return higher rents,

offer faster letting, secure greater occupancy and generate higher

resale value. In an economic environment where quality is

king, green buildings offer higher quality at modest additional cost.

There are technical benefits as well, including insulation and protection of the roofing fabric. So it’s a great invention with multiple benefits!”

Another trend, or rather law, is the Carbon Tax Policy. Currently, there are mixed views about the policy in the industry. Woolf feels that the policy is just another tax – another way of obtaining money. “Australia was one of the first countries to implement carbon tax but it was soon removed because it hurt the country’s economy,” he says. However, he adds that it could serve as an incentive to develop more energy-efficient buildings.

“We would have preferred to have seen some form of a more direct incentive/disincentive programme,” says Wilkinson. “While carbon taxes are being deployed in other countries as a disincentive to excess carbon emissions in a similar manner to the South African proposals, we would have liked to have seen this matched by the provision of incentives to speed up the retro-fitting of existing buildings, as well as the installation of energy-efficient technologies in new buildings. The impact will be low given that our sector will be excluded from the initial ‘primary’ industry, but there is the intention to eventually include all emitters – which will obviously then impact our sector.

“One of the arguments for green building is the concept of future-proofing a building – the practice of including green building features and initiatives at the time of construction in order to immunise the building from future shocks in operating costs such as electricity and water. Clearly a carbon tax will just become another layer of operating cost that can be minimised through green building practices.”

Then there are also alternative forms of energy. Woolf believes that the use of alternative forms of energy is definitely the future. “Companies such as Eskom need to change their mind-set on alternative forms of energy,” he says. “The private sector can also get more involved in this movement. The introduction of end-user incentives is also a good idea.”

Gary Woolf, ALW Estates director


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Wilkinson believes that although this market is gaining ground, we should be focusing first on saving traditional forms of energy. “It was very interesting to see the drop in effective cost of generation from renewables between the first and second bids by Independent Power Producers, proving that as this market grows, costs will come down,” he says. “I do believe that sometimes we look in the wrong direction – I would prefer to see more attention given to saving electricity, rather than trying to produce more!

“Consider, for example, the latest 6-star Green Star building at the Cape Town Waterfront – this building will use 65% less electricity than a standard office building. So let’s focus on saving. Renewables will really come into their own when ‘feed-in’ opportunities open up at the building level – in this way developers will not only benefit from lower consumption from the grid, but will also be able to ‘sell’ any excess back to the grid, and effectively use the grid as a battery for when their own supply cannot cope.”

The GBCSA leads the movementTo date, the number of green certified developments is 39, with three projects achieving a 6-star rating certification and a further 58 buildings registered for certification. This may not appear significant but South Africa is on a par with where Australia was five years in. Considering that these ratings are being achieved during an economic downturn, it seems the move towards more environmentally sustainable building is gaining momentum.

The latest in the GBCSA tool rating agenda is the development of a rating tool for existing buildings, enabled by the sponsorship of Nedbank Corporate Property Finance – addressing demand from an entirely new segment of the property market in South Africa. This new rating tool will allow effective and objective measurement of an existing building’s environmental performance in operation.

It will assess key performance indicators (KPIs) relevant to specific environmental issues, such as energy and water consumption.

“It is a natural progression of the rating tools currently at our disposal, and unlocks a whole new frontier for the GBCSA,” says Wilkinson. “Because new buildings only account for one or two percent of a company’s property portfolio, the Existing Building Performance rating tool is a game changer, allowing all property owners to embrace environmental sustainability across their entire building stock.”

Wilkinson notes that new buildings are a small portion of the entire building segment, and it was necessary to develop a building tool that would rate existing buildings and encourage owners to improve existing building efficiencies. The ability to gain accreditation for existing buildings will be very attractive for owners to increase efficiencies, and this will become the differentiator in the decision to lease or renew leases.

GREEN factsn Globally, the built environment is responsible

for a third of all greenhouse gas emissions/ carbon emissions.

n Green buildings offer one of the simplest, most immediate and cost-effective ways to reduce emissions.

n Green buildings save money and create jobs. n Green buildings advance social-economic-

environmental wellbeing. n Energy efficiency and introducing more renewable

sources of energy is a current priority for South Africa as it faces a medium-term national power supply shortage and steeply rising electricity tariffs.

n Green buildings ensure a reduction in operational costs – they save energy and water, reduce utility costs, and improve productivity in the workplace.

n Property developers need to future-proof their buildings against rising utility costs.

n Green buildings present the single largest opportunity for greenhouse gas abatement, outstripping energy, transport and the industrial sectors combined. The movement is an opportunity to use resources efficiently and address climate change while creating healthier and more productive environments for people to work and live in.

ABOVE Adjacent to the No 1 Silo development, No 2 Silo is the V&A Waterfront’s first residential development in more than five years. OPPOSITE Allan Gray’s new head office, No 1 Silo at the V&A Waterfront, is the first six-star rating of commercial office space of this scale in South Africa, and the first building to achieve this rating in the City of Cape Town

Lakeside Office Park in Centurion is a great example of “green” refurbishment


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Another significant development is the recent imminent launch of an Interior Rating tool, which was released in October. This is an opportunity for the tenant to demonstrate his/her responsibility towards “green” through measures such as adopting energy-efficient lighting systems, installing furniture with low formaldehyde content, reusing existing drywalls, efficient waste management and water recycling measures.

The commercial interiors rating tool puts the decision to commit to environmental sustainability in the tenants’ hands. They can decide, independently of the building owner, whether they wish to comply with green building standards within their own office spaces. This rating tool is enabled by the sponsorship of Standard Bank and Saint-Gobain.

The South African green building industry is also playing more of a supporting role to the industry in the rest of Africa, as other African countries take more interest in green building. “We already support Ghana, Mauritius, Kenya, Nigeria, Namibia and, Botswana and a further five countries are showing an interest,” says Wilkinson. “In the same way that we were supported by Australia and the World Green Building Council in our early stages, we are now aiming to support the rest of Africa.”

Sustainability in the futureThere are a host of forces collectively forming the perfect wave – these range from asset managers requiring environmental sustainability in the built environment in terms of the responsible investment code and the now well understood lower operating cost and economic case for green, to the increasing awareness of customers and staff of sustainability, and the fact that we’re out of the early adopter curve in green building practices and principles.

Alternative energy sources

South Africa has committed to including power from renewables

in the total power provision but this is still fairly modest. European

countries have been far more aggressive in the shift to renewables;

one need only travel to Germany and see the proliferation of

photovoltaic panels on rooftops to understand their commitment. We have just seen our first PV farm

come on stream in the Northern Cape, adding a modest 75MW

to the grid – but there are many more to come and it is a given

that these will become a feature.

Green Star SA…n Is the GBCSA’s green building rating tool system.n Is South Africa’s only green building rating system. n Is based on the Australian Green Building Council

tools, and adapted by the GBCSA with the input of a local stakeholder group of industry experts.

n Comprises eight green building categories: management, indoor environment quality (IEQ), energy, transport, water, materials, land use and ecology, emissions, and innovation.

n Certification can be achieved for the “Design” and/or the “As Built” phases.

n Certified ratings: •4StarGreenStarSA:BestPractice(45-59) •5StarGreenStarSA:SouthAfricanExcellence(60-74) •6StarGreenStarSA:WorldLeadership(75-100)

The culmination of this will be the acceptance that a building cannot be A-grade without being green.

As consumers, investors and staff become more discerning and environmentally conscious; they will also be the drivers of sustainable design and construction, as well as greener building occupation. “We need to educate the industry through the use of case studies of how the GBCSA has made massive inroads thus far,” says Woolf. “Once people start to see the benefits, the mind-set of many will change. The tenants also need to drive the movement forward. Green building may be seen as a privilege or a luxury for now, but it will become a necessity and a priority going forward.”

“We are very privileged to have the support of basically all the serious property players in South Africa,” says Wilkinson, “and we’re committed to fulfilling our members’ mandate to change the way the world is built.”

The green Sage VIP head-office building is designed to be simplistic in nature and to limit maintenance costs

very year, buildings get smarter and more beautiful. SAPOA’s primary objective is to define excellence in

property and recognise top-quality design and functionality as a benchmark for excellence. The SAPOA Awards for Innovative Excellence in Property Development are widely respected within the commercial property design industry, illustrating various types of excellence, from the clarity of purpose in the brief to ingenuity of product, clever design solutions and delivery on time and within budget. It is this recognition that owners, developers, architects and property practitioners strive for. A SAPOA award is forever, much like the raw bricks and mortar that make up the timeless beauty of property.

To be part of this amazing opportunity, partner with us by profiling your executives and/or team in our SAPOA Innovative Excellence Awards Coffee-Table Book Volume 1 in 2014. Your double-page advert will become part of the 2014 profile submissions for the excellence awards.

E

Cost R20 000 excluding VAT (Includes design, photography and production)

Deadline 15 February 2014Bookings Jane Padayachee, marketing manager, SAPOA

T: +27 (011) 883 0679 E: [email protected]

The coffee-table book…

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SAPOA awards for excellence 2014


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Alexander Forbes headquarters set to become an iconic landmarkhe new headquarters for financial services company, 115 West Street, Alexander Forbes is an iconic building opposite the Gautrain Sandton station.

The design of the building draws its concept from the difficult north-west orientation and the need to adhere to new energy legislation in South Africa. The 2400 staff member building has extensive grey water systems, passive heating and cooling systems and high performance glazing with louvres to shade from the afternoon sun. The east and west elevations are characterised by scalloped profiled zinc sheeting. The design required a flexible building hence the large floor plates, punctuated by two atria to maximise the natural daylight into the office and atria spaces.

Modelling software was used extensively to generate the concrete columns and much of the interior fit out and also the 8.4m wide cones which float above the atrium space like giant clouds. The external areas are xeriscaped with indigenous low water consumption plants. The work areas are punctuated with colourful breakout spaces to provide relaxation areas for the staff with re-cycling facilities to assist with the change of mindset regarding sustainable office culture.

Developer: Zenprop Property Holdings Architects: Paragon Architects Project managers: Capex Projects Quantity surveyors: Schoombie Hartmann Civil and structural engineers: Sotiralis Consulting Other consultants: A Riley, Pure Consulting, Ramsden Consulting Principal contractors: Tiber Bonvec Construction, WBHO

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he contemporary 5500m2 Volkswagen head office was

completed in October 2011 and is well located on a prime

sandton site facing onto katherine street within walking distance of

the newly constructed Gautrain.

This prestigious three storey office building stretches across the site

for maximum efficiency and allows for a further phase of development.

The architecture of the volkswagen head office is a spectacularly

modern design. its poise is evidenced through the modulated scale of

its built form which appears to ‘float’ across the site.

It was built during the recently competitive tendering period and

there was enormous advantage in the timing of building a high end

quality of construction office project during this tough financial period.

The envelope is scuplted through a layered orthogonal articulation of

a series of rhythmic patterns of solid and void. the spatial arrangement

of its planform defines the efficient circulation matrix.

A fluid compositional layering of horizontal and vertical

structural modulations, expresses the relationship between the

inside and the outside.

The building’s lines simultaneously seek the extended horizon,

and the contained views of nearby spaces provides an intimacy in

the entrance courtyard. this sequenced procession of forms has a

recognizable spatial poetic.

These movement based forms directly express the organizing design

principle of the office floor plate. The interiors are breezy and spacious

and the light colours and smooth textures enhance the expressed

modernism of this design.

The efficient, direct and fluent internal spatial arrangement makes

for constructive and well connected spatial relationships that reinforce

the well-being of its inhabitants.

The building belongs to a competitive and modern south-african

culture, and the people it serves thrive in its inspired environment. It

offers an inspired working life to all its users and a solid return to its

owners through its striking design & quality specifications.

Volkswagen head office in Sandton

Developer: Growthpoint Properties Architects: AMA Architects Project managers: CPD Construction Projects & Developments

Quantity surveyors: Davis Langdon Civil and structural engineers: PDNA Mechanical engineers: ACAS

Other consultants: Solutions for Elevators S4E Principal contractors: Exabuild

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…an opportunity not to be missed!

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Corporates lead the way with creative meetings

uring 2010 the University of Pretoria determined the requirement of new lecture halls for the growing demand in tertiary education which has recently gained impetus with government backing. Urgent upfront thinking was required by the Technical Department at the University and informed the consultants to provide four 600 seat lecture halls on a small footprint within two years on the Hatfield Campus.The selected site on Roper Street is wedged between three buildings, large trees and furthermore the site is within a high use pedestrian area. The heritage impact of the site was assessed and approval was gained regarding existing trees, buildings and pedestrian routes. Finally the building projects a quiet air of peace and harmony, appropriately fitting into the environment considering the complexity of the requirements.

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Developer: University of Pretoria Architects: Impendulo Design Architects, Jeremie Malan Architects Quantity surveyors: Del QS Civil and structural engineers: Civil Concepts, Egmont Furstenburg & Associates Mechanical engineers: QMech Consulting Engineers Other consultants: Delport du Preez and Associates, Marian Louw Landscape Architect, Pro Acoustic Consortium Principal contractors: Boogertman Smit Building

ABOVE Parks Tau, Richard Greninger, Estienne de Klerk, Lisa Prats, Peter Merrett, Jeremy Kelly, Richard Quest, Peter Merrett Patricia de Lille,

Due to high

demand and

exclusivity, there

are only a limited

number of advertising

spaces available.

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SAPOA awards for excellence 20142 0 1 4


green accommodation

of the service industry

By Nicky Manson

Luxury accommodation,

excellent service, friendly staff

and wonderful facilities are what

South Africans have come to

expect from our hotels. Now you can experience

all that at these city hotels while

saving the planet at the same time

Green landscapel Composting plant to recycle 95% of all wet waste l Elimination of all exotic plant species l Reintroduction of gamel Reintroduction of plants to enhance biodiversityl Annual fire breaks to protect the flora l Creation of edible and medicinal plant trails to educate

guests and schools about protecting the natural habitat l Indigenous landscaping and water-wise gardens l On-site nursery to propagate local indigenous

trees and shrubs l Worm farm

Green building and room practicesl Energy-saving light bulbsl Carpet under-felt made from recycled plasticl Components of furniture made from recycled materialsl Natural colours to reduce visual impactl Only 50% of bushveld suites’ floor plan touches ground

to ensure maximum protection of fauna and floral Topsoil removed before construction and later used

for landscapingl Double plumbing system to ensure grey water is recycledl Guests encouraged to be water-wisel Solar-powered geysersl CFC-free air-conditioning units

Water, waste, energy managementl Rainwater harvestingl Green Team Policy: recruit staff who live nearby

to minimise travell Full recycling plantl HASSAP-approved chemicalsl Safe disposal of low-energy light bulbs containing mercuryl Safe disposal of electronic equipment l Recycling of used ink cartridges

Thaba Ya Batswana Eco Hotel & Spa

Location Klipriviersberg Nature Reserve, JohannesburgNumber of rooms 52Awards Winner of 2013 Service Excellence award, winner of Gauteng’s Best Four-Star Hotel, Fairtrade certifiedMarkets Corporate and leisure Nature, conservation and ecosystem Home to the Thaba Lions Educational Centre – guests are educated and can interact with wild animalsEco-activities Meditation trail, mountain-biking trails and guided hiking trails through the bushBusiness Two boardrooms, three conference roomsExtras Chapel, Sinzinani SpaGreen dining On-site organic vegetable and herb garden that supplies three restaurants: Kraal Kombuis, The Olive Tree and Fire Kraal Sports BarSpecial features Rooms have wood-log fireplaces, jet baths, heated towel rails, underfloor heating and private patios overlooking the bush

Why we love it

Its mission is to establish a sustainable, green, biodiverse, aesthetic freedom corridor along Kliprivier Drive. This initiative is a three-to-10-year process of creating one of the first major green urban corridors in Gauteng.

Contact details +27 (0)11 959 0777, Tyb.co.za

Green giants


green accommodation

Location Umhlanga, KwaZulu-NatalNumber of rooms 146Architects Stauch Vorster Architects (designers); CHT Architects (principal agent)Awards Granted Green Leaf Status, enable and certify the balance between business and natureMarkets Corporate, government, conference and leisure Nature, conservation and ecosystem Environmental management of overall project to reduce the impact of building practices on the environmentBusiness Five conference venuesExtras Rooftop pool and barGreen dining Fig Tree Café; the wild fig tree located at reception was saved during design and constructionSpecial features Direct access to Gateway Theatre of Shopping

Gateway Hotel

Green building and room practicesl Lights and air conditioners turn off automatically when

room is empty; air conditioners turn off when windows or balcony doors are opened even if room is occupied

l Low-flow water outlets reduce water usagel Rooms have large windows, allowing natural

light throughout l Only used local, approved green-building materialsl Extensive use of concrete, which acts as heat sinks

or cold beamsl Rooftop vermiculite screed to create a heat barrierl Atrium light wells to facilitate natural light penetration l Thermal performance glass and glazing minimise

the need for air conditioningl External shading devicesl Cool, fresh air blended into rooms as required

Water, waste, energy managementl Regeneration drive lift systemsl Heat pump technology, a management system

that allows for remote control of various equipment l Water preheating facility on sitel Variable speed drive installations allow for optimisation

of motor systemsl Ozone water treatment system reduces need for chlorinel Waste-management programmel LED luminaries used

Why we love it

The leafy green screen that covers the front of the hotel is eye-catching and cleverly designed for shading, and acts as a solar shield.

Contact details+27 (0)31 536 9200, Thegatewayhotel.co.za, Threecities.co.za


green accommodation

For all the support you’ll ever need

Green building and room practicesl Garden roof to aid in cooling and insulating reception areal Recycled brickl Locally sourced supplierl Hand lotions, soaps and body washes all locally produced

and not harmful to the environment l Complimentary bottles of mineral water are filtered

and bottled on sitel Minimum use of paper – promotion of digital equipment,

all powered by solar panelsl Natural, fresh, optimum temperature airflow is fed into

every room and reduces the need to use air conditionersl Guests encouraged to embrace the greening philosophy

via hotel’s rewards systeml Built with concrete slabs containing recycled materials, using

Cobaix Void Formers – recycled plastic balls placed strategically within the concrete slabs to displace the concrete

Water, waste, energy managementl Complex network of pumps and piping that uses the

Earth as a heat source in winter and heat sink in summerl Photovoltaic panelsl Wind turbinesl Grey-water recycling plant l CO

2 monitoring, and passive measures to reduce

heat-load and energy lossesl Elevators run on a regenerative drive, allowing about

30% of the energy input to be recaptured and fed back into the building

l Double-glazed windows with spectrally selective glass l Instead of standard air-conditioning systems, cooling is

via ground-source heat pumps in geothermal boreholesl Solar panels on the north façade of the building generate

electricity and create shade l Energy-efficient technology such as occupancy sensors,

key-card readers, micro-switches

Hotel Verde

Location 400m from Cape Town International AirportNumber of rooms 145Architects Heinrich Gerstner Harding (leading architects); André Harms (Hotel Verde’s sustainability consultant)Awards Runner-up in the Energy Efficiency and Carbon Management Award, 110% Green Flag from 110% Green Project by the Western Cape Government, winner of the Enviropaedia Eco-Logic award in Water Conservation divisionMarkets Corporate, travellerNature, conservation and ecosystem Wetlands have been created adjacent to the hotel. The area consists of a pathway leading through a specifically created mini-forest with indigenous plants and birdsEco-activities Outdoor jogging trail, rock poolBusiness Business centre, seven conference roomsExtras Gym with power-generating equipment that pushes power back into the hotelGreen dining All food is seasonal (sourced and produced locally), featuring lots of raw, organic ingredients. Details of ingredients, where the products are sourced as well as any possible allergens are clearly displayed Special features 24-hour complimentary airport shuttle service, Bon Voyage Deli open 24/7, interactive hospitality TVs with live flight informationGreen landscape With a conservation project under way, Hotel Verde hopes to attract an exciting range of birds and wildlife back to the area

Why we love it

Plasma screens throughout the hotel speak a green language, encouraging guests to follow suit and take what they learn or experience home with them.

Contact details+27 (0)21 380 5500, Hotelverde.com


green accommodation

Appearances can be very deceiving...One tends to take things at face value, we on the

other hand look a little deeper and understand your

needs, now and for the future. With 35 years

experience in Property Management Software, we

have seen it all, and provide indepth training,

consultancy and needless to say support.

For more information, call 0861 4 NICOR or email: [email protected]

For all the support you’ll ever need www.nicor.co.za

Green building and room practicesl Lightweight, sustainable South African pine used (not cement)l Stone gabions (wire baskets filled with stone from local

quarry) create durable base for structures and fire protectionl Cabins built along passive design principles: careful

orientation for light, shade and cross-ventilationl Low visual impactl Locally sourced, nontoxic materialsl Roof gardens provide insulationl Each cabin has its own eco-tower, an ecofriendly power

station where the solar geyser, gas canisters for the stoves and fire extinguisher are stored

Water, waste, energy managementl Combusting toilets – waste dries and evaporatesl Solar geysersl Gas hobsl Combustion fireplacesl Energy-efficient appliancesl LED and CFL lighting

Oudebosch Cabins

Location: Kogelberg Nature Reserve, Western CapeNumber of rooms FiveArchitects Justin Cooke (architecture co-op)Awards International Holcim Regional Award for Sustainable Construction with Architectural ExcellenceMarkets Leisure, functionsNature, conservation and ecosystem Ecofriendly swimming pool doubles as water feature full of plants to attract various birds, dragonflies, amphibiansGreen dining Self-catering; fully equipped, energy- efficient kitchensBusiness One function roomSpecial features Designer decor, lighting features by artist Brendan DickersonGreen landscapel EIA environmental impact assessment before

project began, as Kogelberg is a biosphere reservel Workshops with Cape Nature, specialists in hydrology,

botany, energy

Why we love it

The glass-fronted cabins afford guests breathtaking views of the reserve, which is a World Heritage Site.

Contact details+27 (0)21 483 000, Capenature.co.za

Off the beaten track


eye on africaeye on africa



eye on africa


Africa uncovered

Home is where the investment is as South Africa leads the African continent towards growth and prosperityBy Candace King

South AfricaDespite its tumultuous sociopolitical past, South Africa has been a shining beacon

of investment and opportunity for the African continent. Pre-1994 apartheid South Africa was a dark place, a country plagued by widespread unrest and upheaval, strikes and massacres, rife inequality, a failing government, and a flailing economy. Trade and financial sanctions coupled with internal political opposition to the apartheid government had contributed to the poorest 10-year growth performance (from 1984 to 1993) since World War II.

Since the inception of its democracy, the South African economy has recorded several successive years of positive real GDP growth. With the abolishment of apartheid legislation and the welcoming of a new liberal constitution, the country has grown tremendously despite its internal challenges, including the famous three – poverty, unemployment and inequality – all of which South Africa still battles with.

Over the years, South Africa has come to prominence as an investment hot spot. Alongside Nigeria and Angola, the country has consistently achieved above-average foreign direct investment (FDI) inflows over the course of the past decade. Sub-Saharan Africa has South Africa as an internationally preferred location for doing business, and attracts significant foreign capital. South Africa has several characteristics that make it a compelling destination on the African continent.

The World Economic Forum Global Competitiveness Report 2012 ranks only South Africa in the top 50 out of 142 countries, leaving other African nations at the tail end of global competitiveness, while the World Bank’s Doing Business Report ranks South Africa in the top 50 out of 183, with Botswana, Ghana, Namibia and Zambia ranking in the top half of the index.

Over the past two years, South Africa has seen some of the greatest improvements in transparency. The Jones Lang LaSalle Global Real Estate Transparency Index 2012 ranks South Africa high above the rest of the continent – it is ranked 21st in the index, ahead of its fellow BRICS (Brazil, Russia, India, China and South Africa) members.

Its high ranking is the result of several factors, including rigid listed vehicle governance, strong auditing and reporting standards, a highly developed legal system, the fairness and efficiency of the regulatory framework relating to real estate taxation, planning and building codes, enforceability of contracts and title, and a strong tradition of property rights. With a well-established performance benchmark – the SAPOA/IPD South Africa Property Index – the country also scores well on real estate performance measurement.

t Hub for multinational corporations seeking a low-risk gateway into Africa

t Highly diversified economy: strong market positions in alternative/renewables, natural resources, automotive software and IT services, and pharmaceuticals

t Highly developed legal and business climate conducive to attracting FDI

t Restrictions on foreign investment limited to electronics, banking, automotive and some public sectors

t Key challenges: labour unrest (mining sector but potential to spread), high unemployment, skilled-labour shortage, crime, and weak policing, justice system

2013 AFRICA Report

Mediterranean Sea

South Africa

BotswanaNamibia

Angola

Zimbabwe

Malawi

Madagascar

Mauritius

Zambia

Tanzania

KenyaCongoGabon

Uganda

Rwanda

Nigeria

Cameroon

EquatorialGuinea

Central AfricaRepublic

Chad

Niger

Mali

Mauritania

Algeria

TunisiaMorocco

WesternSahara

Libya Egypt

IvoryCoast

Guinea

GuineaBissau

SenegalGambia

Ghana

BeninSierraLeone

Sudan

EthiopiaLiberia

Togo

Mozambique

Eritrea

Somalia

Democratic Republic of the Congo

PretoriaJohannesburg

Cape Town

Durban

Sameer Business Park, Nairobi

Key factsPopulation 51.8 millionMajor cities: Johannesburg 4.3 million Cape Town 3.7 million Durban 3.5 million Pretoria 2.5 million Official languages Afrikaans, English, isiZulu, isiXhosa, siSwazi,

isiNdebele, Sepedi, Sesotho, Xitsonga, Setswana, Tshivenda

Total area 1,219,090 sq kmGDP growth (2012) 2.6%Key industries Mining, automobile assembly, metalworking,

machinery, textiles, iron and steel, chemicalsCurrency Rand (ZAR)Trade association Southern African Development Community, membership Southern African Customs Union

south africaOffice market In Johannesburg, the office market is polarised, with occupier demand focused keenly on good quality property in prime, accessible locations. The city has a very constrained development pipeline, with most new projects being tenant-driven and almost no speculative development. In Cape Town, vacancy rates have moved upwards in the CBD over recent years, partly as a result of companies relocating to the Century City node. Similarly, vacancy levels in the Durban CBD have been adversely affected by occupiers moving to suburban locations, particularly La Lucia and Umhlanga in the north. Rental growth in the major office markets of South Africa is expected to be fairly modest during 2013, with economic sentiment remaining subdued.

Retail market Consumer confidence dipped during the latter part of 2012, which does not bode well for the short term outlook for the retail sector, where annual retail sales growth has slowed. There has been a general trend of modest increases in vacancy rates across the board, although there are wide disparities in performance between individual locations. Indeed, in the run-up to Christmas 2012, a number of major regional malls were reporting significant increases in footfall and sales. Moreover, with an increasing number of international retailers seeking to enter the market, steady demand for prime space in the best locations should continue for the foreseeable future.

Industrial market While the recent economic uncertainty may dampen short term growth prospects, industrial market fundamentals remain broadly positive, as shown by falling vacancy rates and upward pressure on capital values in some areas. However, despite falling availability and the increasing willingness of investors to commit to speculative development in anticipation of a resumption in growth, the balance of power in the industrial market remains largely in favour of occupiers. On a positive note, forthcoming spending on infrastructure projects should boost employment and help to stimulate occupier demand.

Residential market The outlook for the residential market remains subdued, with most forecasts suggesting relatively modest price growth in the short-to-medium term. Indeed, house prices are expected to soften in real terms, in line with slower economic growth and higher inflation. The buy-to-let market is showing weak growth and overall yields are low, making this sector of the property market less attractive to investors at present.

South Africa prime rents and yields Prime rents Prime yieldsJohannesburg

Offices US$20 per sq m per month 8.5%Retail US$45 per sq m per month 8%Industrial US$6 per sq m per month 9.5%Residential US$5,500 per month* 5%

Cape TownOffices US$19 per sq m per month 9%Retail US$40 per sq m per month 8%Industrial US$5 per sq m per month 10%

Residential US$6,000 per month* 5%

South Africa at a glance


eye on africa

Why invest in SA?According to South Africa: Investor’s Handbook 2012/13, a publication put together by the Department of Trade and Industry (DTI) and Deloitte, South Africa is one of the most sophisticated, diverse and promising emerging markets globally. Not only does the country offer key investment opportunities within its borders but it also acts as a gateway to the rest of the continent.

South Africa is home to a rich array of natural resources, including coal, platinum, gold, iron ore, manganese, nickel, uranium and chromium. It boasts world-class infrastructure, an established manufacturing base, and vast capabilities with regards to innovation, research and development. South Africa also features quality financial, legal, telecommunications and real estate sectors.

It also possesses a relatively stable political and macroeconomic landscape, with an abundance of both skilled and unskilled labour. Our country’s unrivalled scenic beauty and vast demographic profile, headed by a thriving emerging middle class, are also what attracts investors to our shores. South Africa is the only African country that is a member of the Group of 20 (G20) countries. In the Economist Intelligence Unit’s Survey of Democratic Freedom, South Africa ranks 31st out of 184 countries. Despite the country’s rife corruption, it is ranked as the 40th least-corrupt out of 150 nations surveyed by WorldAudit.org.

According to the Open Budget Index, South Africa has the most transparent budget in the world (International Budget Partnership). In 2012, at 5,5%, South African interest rates were at a 30-year low. South African tax revenue has increased from R100-billion in 1994 to R742,7-billion in 2011/12. The country’s debt-to-GDP ratio is 32% – the World Bank recommends a ratio of 60%. According to the World Economic Forum Global Competitiveness Report 2012/13, South Africa is ranked first out of 142 countries in respect of regulation of security exchanges. In the same report, it also ranked first in respect of auditing and reporting.

Although South Africa’s education system has received much negative criticism in recent years, there have been several improvements. The country has 30 000 schools (23 000 primary and 7 000 secondary). In 1994, only 12 000 had access to electricity; today, 24 000 have access to electricity. According to the Global Competitiveness Report 2011/12, South Africa is ranked 13th out of 142 countries for its quality of management schools.

South Africa is also making headway in the greening and sustainability arena. Thanks to the efforts of the Green Building Council of South Africa as well as several other organisations and leading property players, South Africa’s built environment is transforming, becoming more sustainable and energy efficient. According to the MasterCard Insights Report on Urbanisation and Environmental Challenges, Johannesburg ranked second among countries from Asia-Pacific, the Middle East and Africa in dealing with urbanisation and environmental challenges in 2011.

The South African property industryThe continent’s largest and most mature property investment market is, by some distance, South Africa, where more than US$800-million of commercial property transactions were completed during 2012, according to Real Capital Analytics data. Domestic funds dominate the South African market, with investors being among the most active buyers in 2012.

Property development in the country has gone through boom periods, notably in the years around the successful 2010 FIFA World Cup, where South Africa showcased its strong project management skills and developing infrastructure. The deep pool of skilled labour, emerging economic strength and improving transparency are increasingly making it the location of choice for international companies and investors.

Ease of doing business rankings: top 20 African countries

Africa rank (out of 51)

Global rank (out of 185)

Country

1 19 Mauritius

2 39 South Africa

3 50 Tunisia

4 52 Rwanda

5 59 Botswana

6 64 Ghana

7 74 Seychelles

8 87 Namibia

9 94 Zambia

10 97 Morocco

11 109 Egypt

12 120 Uganda

13 121 Kenya

14 122 Cape Verde

15 123 Swaziland

16 127 Ethiopia

17 131 Nigeria

18 143 Tanzania

19 136 Lesotho

20 140 Sierra Leone

Source: World Bank, Doing Business 2013

Global Real Estate Transparency Index 2012

The US, The UK, Australia, the Netherlands, New Zealand, Canada, France, Finland, Sweden, Switzerland Highly transparent

Hong Kong, Germany, Singapore, Denmark, Ireland, Spain, Belgium, Norway, Poland

TransparentItaly, South Africa, Austria, Malaysia,

Czech Republic, Japan, Hungary, Brazil, Portugal

Taiwan, Turkey, China, Greece, Israel, Philippines, Slovakia, Russia, Indonesia, Thailand, Romania, South Korea, Puerto Rico, Mexico, Chile, UAE, India

Semi-transparentCroatia, Macau, Botswana, Bulgaria, Argentina, Mauritius, Cayman Islands,

Ukraine, Slovenia, Bahrain, Saudi Arabia, Kenya, Lebanon, Kuwait

Vietnam, Serbia, Costa Rica, Bahamas, Qatar, Jamaica, Oman, Panama, Morocco, Egypt

Low transparencyZambia, Peru, Jordan, Uruguay, Colombia,

Kazakhstan, Dominican Republic, Honduras, Guatemala

Venezuela, Mongolia, Tunisia, Ghana, Iraq, Pakistan, Algeria, Belarus, Angola, Nigeria, Sudan Opaque

Middle East and Africa Real Estate Transparency Index 2012

n Highly transparentn Transparentn Semi-transparentn Low transparencyn Opaquen Not covered So

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eye on africa

Foreign direct investment hot spots in Africa

Country Labour force

Population growth

Nominal GDP per capita

CAGR 2009-17Greenfield FDI

inflow 2003-2012Africa business

climate ranking

Growth sectors

Angola 8,5m +2,8% 8,7% US$60B 40 out of 54

Natural resourcesTransportationMetalsFood and tobaccoFinancial services

Nigeria 53,8m +2,5% 17% US$117,7B 17 out of 54

Natural resourcesCommunicationsChemicalsPharmaceuticalsFood and tobacco

South Africa 17,9m -0,4% 7,8% US$67,6B 2 out of 54

Alternative/RenewablesNatural resourcesAutomotive OEMSoftware and IT servicesPharmaceuticals

Ethiopia 37,9m +2,9% 16,3% US$6,3B 16 out of 54ChemicalsBeveragesFood and Tobacco

Ghana 11,6m +2,2% 8,1% US$31,4B 6 out of 54

CommunicationsNatural resourcesIndustrial machineryFinancial servicesLogistics

Kenya 18,9m +2,4% 7,3% US$11,4B 13 out of 54

Alternative/RenewablesFinancial servicesLogisticsCommunicationsSoftware and IT

Morocco 11,7m +1,0% 8% US$54,9B 10 out of 54

MetalsAlternative/RenewablesAutomotive componentsFood and tobaccoBusiness services

Uganda 16,5m +3,3% 8,8% US$17,9B 12 out of 54

LogisticsCommunicationsAlternative/RenewablesHealthcareFood and tobacco

Sub-Saharan Africa Investment by Country 2010-2012 (US$B, No. of Investments)

South Africa

Nigeria

Tanzania

Kenya

Togo

Ghana

Other

… with limited deal volumes spread broadly across the Continent

US$0.8B, 36

US$0.6B, 21

US$0.8B, 53

US$0.1B, 9

US$0.2B, 5

US$0.2B, 26

US$0.2B, 4

Sub-Saharan Africa Investment by Country, 2010-2012

No. of Deals

Ghana

Kenya

Nigeria

South Africa

Tanzania

Togo

Other

Total 48 632 45 1061 61 1161

Source: Emerging Markets Private Equity Association, 2013

Sub-Saharan Africa investment by country 2010-2012

2010 2011 2012

Number of deals

Total capital

invested (US$m)

Number of deals

Total capital

invested (US$m)

Number of deals

Total capital

invested (US$m)

Ghana 2 20 3 11 4 62

Kenya 11 50 9 99 6 48

Nigeria 6 188 8 121 7 272

South Africa 10 47 11 523 15 199

Tanzania 1 n/a 1 n/a 2 211

Togo 3 89 n/a n/a 2 102

Other 15 237 13 306 25 267

Total 48 631 45 1 060 61 1 161

Sub-Saharan Africa investment by country 2010-2012 (US$B, number of investments)

Note: Data on FDI flows are presented on net basis (capital transactions’ credits less debits between direct investors and their affiliates). Hence, FDI flows with a negative sign indicate reverse investment or disinvestment.

Foreign direct investment Investment Flows (1970 - 2011)

Nigeria South Africa Morocco Angola Ghana Kenya Uganda Ethiopia

According to the Global Competitiveness Report, South Africa is 30th out of 142 on property rights, and 34th out of 192 in terms of infrastructure. Major cities – Johannesburg, Cape Town and Durban – have evolved into bustling metropolises over the past few years and represent the country’s economic hubs. Two South African cities were voted among the world’s “Top 100 Most Liveable Cities” in the 2010 study conducted by Mercer Human Resource Consulting. Cape Town was ranked 86th and Johannesburg ranked 90th.

One of South Africa’s key property industry drivers is the listed property sector, which has outperformed all other assets and is currently being boosted by the newly implemented REIT structure. The retail sector is currently leading, with industrial and office not far behind. The residential sector has hit a few bumps recently times but is slowly recovering.

Retail marketLeading the South African property industry is the retail market, a sector that is also leading in the rest of the continent. As the middle class develops and the demand for consumer goods grows, African retail markets are developing rapidly. South Africa is home to some of sub-Saharan Africa’s largest shopping centres, with key regional malls across the country.

According to the recent SAPOA/IPD South African Biannual Property Indicator, the retail sector outperformed the others on the back of strong capital growth and stable vacancies. Key regional shopping centres registered the strongest capital value growth in the sector (6,7%); the income return was 3,3%.

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eye on africa

Regional and community shopping centres registered impressive base rental growth of 4,5% and 6,1% respectively over the six months, though this does not yet reflect in strengthening capital value growth or returns.

South Africa is reaching maturity, with formal retail penetration at 65% to 70%, and is likely to peak at 80% (UK at 90%, US at 85%). Currently, space growth remains between three and six percent at sector level, 30% driven by extensions and 70% through new space. In medium-to-longer term, success in retail will be driven by market- share gains and the ability to launch new format and products. South Africa will remain a key driver of sales/earnings for the next 20 to 30 years.

In the run-up to Christmas 2012, several major regional malls were reporting significant increases in footfall and sales. Moreover, with an increasing number of international retailers seeking to enter the market, steady demand for prime space in the best locations is set to continue.

One major retail trend that has sparked in the last year is the development of retail in up- and-coming towns and underserviced outlying rural areas. Major property developers, investors and financiers such as Flanagan & Gerard, Dipula Income Fund and Nedbank Corporate Property Finance have piqued interests in this segment of the retail market, which is sure to further drive and stimulate growth in the sector.

South Africa prime rents and yields

Prime rents Prime yields

Johannesburg

Offices US$20/m² per month 8,5%

Retail US$45/m² per month 8%

Industrial US$6/m² per month 9,5%

Residential US$5 500 per month* 5%

Cape Town

Offices US$19/m² per month 9%

Retail US$40/m² per month 8%

Industrial US$5/m² per month 10%

Residential US$6 000 per month* 5%

Source: Knight Frank LLP / * Four-bedroom executive house – prime location

SAPOA/IPD South Africa Biannual Property Indicator

Total return % 6 months Income return % 6 months Capital return % 6 months

All property 9,2 4,2 4,9

Retail 10 3,9 5,9

Office 7,9 4,3 3,5

Industrial 9,1 5 3,9

Residential - - -

Other 8,4 4,1 4,1

Comparative data

Equities -2,8 - -

Bonds -2,5 - -

Inflation 2,9 - -

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

SAPOA/IPD South Africa Biannual Property Indicator database profile

Capital value (ZAR m) Capital value (%) Number of properties Number of funds

All property 107 865,3 100 927 13

Retail 60 929,2 56,5 211 13

Office 28 046,8 26 289 9

Industrial 15 131,2 14 375 8

Residential - - - -

Other 3 746,7 3,5 50 9

The figures above represent the full coverage of the SAPOA/IPD South Africa Biannual Property database as at June 2013. The SAPOA/IPD South Africa Biannual Property Indicator employs only fully revalued assets from that database

Industrial and office marketThe economic downturn may have dampened the short-term growth prospects of the industrial sector, but market fundamentals have remained mostly positive. This has been shown in the decrease of vacancy rates and the upward pressure on capital values in certain areas. There has been an increasing interest from investors in the industrial sector in recent months, and several developments have come to fruition.

One issue in the industrial sector is the availability of stock – there appears to be a shortage of stock and a high level of demand for large distribution facilities. Despite this, the SAPOA/IPD South African Biannual Property Indicator showed that the industrial sector’s impressive performance for the first six months of 2012 was underpinned by high capital growth and low vacancy rates averaging 2,8%, which is 1,6% less than the 2012 annual average. This occupancy level compensated for relatively low base rental growth in this segment at R35,3/m² versus R34,6/m² in the six months ending December 2012.

Office sector performance has been slightly subdued. The SAPOA/IPD South African Biannual Property Indicator showed that the office sector continued to register high vacancy levels (of 12,6% overall) with recent office development activity placing pressure on rental levels and the lower-grade office space. Provincial offices were the worst performing segment, registering 2,5% negative capital growth and a total return of only 2,3%. In terms of occupancy, inner city office continues to register low occupancy levels, with the areas recording a 22,8% vacancy rate for the first half of the year.

In Johannesburg, the office market is polarised, with occupier demand focused on quality property in prime, accessible locations. In Cape Town, vacancy rates have moved upwards in the CBD in recent years, partly as a result of companies relocating to the Century City node. Vacancy levels in the Durban CBD have similarly been adversely affected by occupiers moving to suburban locations.

Residential marketWhat has been described as a sector that is “bombing” along, the residential market has not seen much growth, with the outlook for the sector remaining subdued, with most forecasts suggesting relatively modest price growth in the short-to-medium term. House prices are expected to soften in real terms, in line with slower economic growth and higher inflation. The buy-to-let market is showing weak growth and overall yields are low, making this sector the least attractive to investors in the overall property market.

ABOVE AND BELOW The SAPOA/IPD South Africa Biannual Property Indicator measures ungeared total returns to directly held standing property investments from one open market valuation to the next, and in H1 2013 returned 9,2%

All Property Retail Office Industrial Other

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thermguard

Keep coolOne man’s small idea has become part of the country’s big pictureBy Nicky Manson

Thermguard is a small, family-style business in Pietermaritzburg, KwaZulu-Natal, born out of pure

entrepreneurial spirit. The company was started in 1984 by Mark Stannard who, while at his old business Waste Tech, noticed how much paper was being thrown onto dump sites in those days. “I heard about an insulation product manufactured from recycled newsprint and decided to investigate. Thus Thermguard was born.”

What began in a small office with just one receptionist and a sales rep (Stannard’s sister) has grown from strength to strength. Over the years the company has been able to add more and more agents to its national network. There is a lot of hard work, determination and luck that goes into making your own small business a success, and Stannard believes he has had all three. He certainly got into the business at the right time, when competition was rare. Today, thanks to the new government building regulations that have made ceiling insulation a prerequisite, the company is reaping rewards.

He also credits his team for much of Thermguard’s success. “Our company is like a small, tightknit community.

Nearly all of the staff have been with us for years – some from the very beginning.” He also believes that even today, despite a competitive market, and a variety of insulation products being available, his company still stands out. “We believe we have the best manufacturing plant in South Africa and our product is the only cellulose insulation that is manufactured under ISO 9001 – 2008 Quality Management Systems – your guarantee of consistent quality,” he explains.

Thermguard is made from predominately recycled newspapers with a number of harmless household chemicals added to make the product fire retardant and insect and rodent resistant. Installers blow the insulation onto the ceiling, covering every nook and cranny for the ultimate coverage, ensuring cool summers and warm winters.

And where do the newspapers come from? Stannard started a school initiative early on in his career, and it’s

one that is still going today. He called upon all scholars to bring old newspapers to their schools; he then collected the papers and paid for them. Today this is still standard practice.

Thanks to being made from recycled newspapers, and being manufactured using a low energy process, you certainly can’t get a greener or more ecofriendly product. It’s also delivered in recycled plastic bags. And with the latest technology from the US, Thermguard is able to reduce the density of its product by 20%; this allows more air in, making the insulation lighter and ultimately less expensive. Sound-proofing, non-allergenic qualities and a lifetime guarantee are all par for the course.

What about all the fuss surrounding insulation? Why is it so important? The obvious reason is that ceiling insulation protects your home and balances its heat levels. In the colder months, it is able to prevent up to 91% of the home’s generated heat from escaping through the ceiling. Similarly, in summer it can keep out 88% of the sun’s heat, keeping your home at a natural temperature all year. However, according to Stannard, the future of insulation is about to change and time will reveal a more significant purpose. “As time progresses insulation will become more and more important in South Africa for two reasons,” he says. “The first is that Eskom is still battling to meet the demand for electricity and will continue to do so in the future. (Eskom actually initiated the compulsory use of installation in hopes of reducing future load shedding.) The second is that the price of this electricity is increasing dramatically, so the heating and cooling of buildings will have to be as efficient as possible.”

Already the battle is on for the all-important Green Star rating for new buildings, and as the days, months and years go by, sustainable building techniques and products will no longer just be fashionable by-products of a construction project but vital and non-negotiable elements of every building in South Africa. +27 (0)33 346 0111, Thermguard.co.za

“Our company is like a small, tightknit community. Nearly all of the staff have been with us for years – some from the very beginning”

Mark Stannard


development development

Cape Town CBD:open for business

Bucking the trend of the late 1990s, which saw an exodus of people and businesses from South Africa’s major city centres, Cape Town today is seeing the revitalisation, rejuvenation and reinvestment in its CBD – to the healthy tune of R4,5-billion

By David A Steynberg

Set up as a trading post in the 17th century, Cape Town has a rich history of commerce, trade and

architecture. It is home to one of the country’s most cosmopolitan societies, reflected in language, culture, food and celebrations.

Bordered by Table Mountain and the Atlantic Ocean, land in Cape Town is hot property – and to be more specific, land for commercial and residential development.

The Cape Town Central Business District was not spared the move by residents and businesses in the 1990s, but has successfully turned the tide and is today experiencing massive investment in both existing and new stock. How this 361-year- old city has done this is what’s most exciting: from refurbishments, tax breaks and pop-up shops to city upgrades, repurposing existing stock and hosting a full range of world-class events.

According to Rob Kane, chairperson of the Central City Improvement District (CCID) board, the Urban Development Zone (UDZ) tax incentive is one the “best-kept tax break secrets of the South African property sector”. So well-kept, in fact, that since its introduction by National Treasury in 2003, between 2006 and 2011 the City of Cape Town issued location certificates for R2-billion and R1,6-billion to UDZ applicants for new construction and refurbishments respectively.

“The Cape Town CBD has certainly made use of the scheme,” says Kane, adding that even more investors and developers need to get to grips with it. “Close to R15-billion has been invested in the Cape Town CBD since the scheme was promulgated. The UDZ allowance is designed to cover all construction costs related to the erection, extension, addition or improvement of buildings. The tax incentive can

only be claimed by the end user or the taxpayer of the property, who must use the building (or part of it) for trade purposes. It is not only JSE- listed companies than can benefit from the UDZ. Any owner-builder or owner-first purchaser is eligible for the incentive; it doesn’t matter if they are an individual, company, close corporation, trust or partner in a partnership.”

Reshape what your mama gave youGreen field and new developments are not always possible from both a cost and land-availability perspective. And in the context of Cape Town’s CBD, this rings true. Refurbishments, therefore, have played a major role in making the CBD both a beautiful and relevant environment for business and residents.

development

Bringing the fansCape Town takes nearly 50% of the market share of conventions hosted in Africa. Estimated annual economic contribution to the national GDP of just six events is almost R2-billion. In 2012, the annual estimated economic contribution to our national GDP of some of Cape Town’s Central City events included the Mining Indaba (R106-million), Design Indaba (R326,9-million), Cape Argus Pick n Pay Cycle Tour (R450-million), Cape Town International Jazz Festival (R700-million), The Old Mutual Two Oceans Marathon (R223-million), and the Loerie Awards and Creative Week (R100-million).



development developmentdevelopment

“Unlike Dubai, not every world-class city can bring its aesthetic and functionality into the 21st century through ground development,” says Kane. “However, developers and property owners in the CBD, like many of their counterparts around the world, recognise the commercial importance of refurbishing buildings.”

Defaced property reduces its own value as well as that of a street or whole sections of a city. Attracting and retaining tenants is vital to the longevity of property and the city. “Tenants want value for money, and a properly refurbished existing building can offer excellent space to a tenant at rentals that are competitive when compared with a new building,” says Kane.

One company that recognises the value of reinvesting in the CBD is hotel-and-leisure group Tsogo Sun. The group is undertaking


LEFT Clear signage developed by the CCIDFAR LEFT The Cape Town International Convention Centre is conveniently situated near both luxury and affordable hotel accommodation, and is within walking distance of the V&A WaterfrontTOP Cape Town’s central business district, laid out in a grid system



3 Spheres of Government(National, Provincial & Municipal)

120 GOVERNMENT OFFICES

32.8%Central City share of A-grade office space in the Cape Town metro-region

Total of 491 285m² 71 000m² new A+/A-grade office space planned for future development

380 000m²of retail spaceOver 1 200 retail shopsThat’s almost 60 international-sizedsoccer fields

24.5%of business turnover

Contribution of the Central City to

the larger Cape Town metro-region

CAPETOWN’S

CENTRALCITY

IS OPENfOR BuSINESS2012

OVER 350 000 PEOPLEmove through the Central City each day

CENTRAl CITY BuSINESSSuRVEY:

88%of businessessay the MyCiTi BRT system contributes towards making the Central City a more accessible place

93% of businessessay that they are likely to remain in the Central City

83% of businessessay that Cape Town’sCentral City is the safest in the country

Over 4 600 beds at 57 hotels of which 8 are five star

Central City share of total bed space in larger city region

49 TERTIARYEDUCATIONAl INSTITUTIONS Educating on average 15 500 students

Employing over 1 200 faculty & staff

NuMBEROf COMPANIESPER SECTORA. Travel ServicesB. Architecture & Engineering ServicesC. financial Services & BankingD. Information & Communications TechnologiesE. Specialised ServicesF. Medical, Health & Cosmetic Services & facilitiesG. Legal Services

Well governed

The fringeInnovation District

Potential to generate 3 500 jobs R1.2 billion in tax revenues

R1.5 billion GDP

per year by 2031

OVER

5 000GOVERNMENTEMPLOYEES

OVER

27 000PEOPLE

served each day

68

73

90

A B C D E F G

87

164

175

594

8 436 191 passengerspassed through the Cape Town International Airport in 2011

A B C D E F G

on 21 airlines

a R40-million refurbishment to the Cullinan Hotel and a R100-million refurbishment to the Southern Sun Waterfront Hotel (in the neighbouring V&A Waterfront), and will later invest in a major refurbishment to the 32-storey Southern Sun Cape Sun Hotel – a CBD landmark.

“We believe that upgrading and refreshing our properties will lead to increased occupancies and return on investment for our clients as well as for Tsogo Sun,” says John van Rooyen, operations director at Tsogo Sun Cape Town. “The thriving Central City is attracting much new business and tourist activity to the inner city, and Tsogo Sun is proud to be part of this cosmopolitan business hub.”

The Pinnacle building on Strand Street underwent upgrades to its main reception as well as its lobbies and lift cars. This has resulted in a number of leases being renewed while new ones have been signed.

“With current CBD developments, changing trends in the area and in the best interest of attracting and retaining tenants in the CBD, refurbishment is essential to ensure buildings have a competitive edge,” says Kane.

Repurposing certain spaces also goes a long way to creating a new image for a building. 44 Wale Street now boasts a rooftop garden replete with its own solar-powered water feature and irrigation system.

Woolworths has followed suit by installing a solar- panel roof system on its head office in the CBD, which will save the building bout 48 000kWh a year.

“There is no doubt that refurbishing a building is a much greener alternative than building even an ecofriendly building from ground up,” says Kane. “Developers should investigate the green refurbishment opportunities already present in existing buildings before building from scratch. Sustainability is no longer a nice-to-have; it’s an imperative in order to keep the heart of the Central City beating as a commercial, residential and retail hub. As with other successful global CBDs, the importance we place on making this a green city is fundamental for our plans to retain and attract business. 14 Loop Street, which is owned by Vunani Property Investment Fund Limited, is a great example of how this can be done.”

Two years ago Vunani adopted a few simple changes, which have resulted in material savings for the fund and tenants of the 1904 building. Water consumption has been reduced by a 16th and power consumption by a third, compared to the rest of the buildings in Vunani’s portfolio.

“The renovations have translated into saving the tenants between R10 and R15/m2 – a 10% to 15% saving on a rental of R100/m2,” says Kane. “Bearing in mind how sensitive tenants are about their accommodation costs, this is a material saving.”

The Cape Town CBD has emerged as a consistent global contender in terms of offshore and local business process outsourcing (BPO), of which call centres are a big part. Call centres are a major source of economic growth for the CBD, creating an impressive 7 500 jobs and contributing approximately R1,7-billion to the provincial GDP.



nn

More thanR21 BILLION

Total current valueof Central City property

R4.6 billionInvestment in property over the past 3 yearsCAPE

TOWN’SCENTRAL

CITY

IS OPENfOR BuSINESS2012

R216 MIllIONAnnual rates generated by the Central City

Cape Town’s Container Terminal 2nd largest container port in South Africa Moves 700 000 containers per year 4 deep-sea berths Current expansion will double capacity to over 1.4 million containers per year

The Cape Town International Convention Centre

Contributed R2.68 billionto the National GDP

Created7 870 JOBS

throughout the year.

CTIC

C

Central City Property

2010 2011 2012

R1.5 billionGDP contribution generated by events

THE CBD HOSTS:

IN THE METRO REGION

75%

90%major local events

business & international events

are happy to be basedin the Central City

71% of businesses are positive about theeconomic benefits of Cape Town beingthe World Design Capital in 2014

34% of businesses in the Central Cityare likely to expand their operationsin the near future

77.1%Of PEDESTRIANScoming into theCentral City usepublic transportation

All business

future expansion

8/10 businesses World Design Capital 2014

76% ESTIMATEDRESIDENTIAl

population increase between 2001 & 2010

3 100 people per dayvisit the Cape Town Central Library, open 63 hours each week

The Cape Town Opera: Performed 6 full opera productions in 2010/2011 season Employed over 283 people (full time & ad hoc) Provided 711 employment contracts

Earned R9.2 millionof income

ProvidedR7.3 million in employment for artists

ContributedR1.85 millionin revenue to local businesses

All of South Africa’s major law firms have offices in the Central City, making itone of the biggest legal hubs in the entire region

In 2010 - 2011

Produced over

60 000DIRECT & INDIRECT JOBS

since opening in 2003

CTICCexpansionwill total

R690MIllION

863 BOOKINGSup to theyear 2020

Top 5events atthe CTICCsaw over188 769VISITORS

over 500

LEGALSERVICESOffICES

Streets aheadStill, what is the point of having world-class property when finding business addresses in a CBD is a challenge?

The City of Cape Town and the CCID recognised this and have spent in the region of R300 000 on upgrading street signs and upping the tally of motorcycle parking bays from 39 to 130.

Cape Town’s CBD is the frontrunner in South Africa to feature building numbers together with street names on the street signs.

“The CCID invested in the preliminary research and reports required, which entailed walking each and every street in the CBD and identifying the direction of the street numbers, particularly as they pertained to every intersection,” says the city’s mayoral committee member for transport for Cape Town, Councillor Brett Herron.

Chief operations officer of the CCID, Tasso Evangelinos, elaborates. “Users of the CBD will enjoy faster location of venues and easier identification of destinations,” he says. “Motorists will be able to decide which way to turn into a street to find their destination.

This will save them time and fuel as they’ll no longer need to re-route or backtrack to the correct street. Companies such as couriers, online retailers, cabs and food-delivery companies – the bulk of whose business includes matching addresses to street names – will also enjoy enhanced operational efficiency through the new numbering system.

“There are more than 200 intersections in the Cape Town Central City and many of the most prominent ones will be numbered by the time the project is completed next year. We encourage building owners to prominently display their building numbers, as this will help to ensure that the street numbering system is even more effective for users of the CBD.”

City livingA look at the various sectors taking root in the CBD reveals that not only is the city a viable and sought- after business destination, but it is also a place where consumers visit to shop and invest to live.

This fact is evident in the number of people living in the CBD: 10 years ago only 750 people called the inner city home. Today that figure sits at well over 5 000, living in 3 500 sectional-title units. The Central City boasts more than 20 apartment complexes, where prices range from R350 000 to as much as R30-million for luxury penthouses.

“The market has definitely begun to change,” says Richard Boxford of Life Residential. “During 2005/2006, approximately 70% of our buyers were first-time ‘utility’ buyers – young professionals. Through the downturn (over the past five years or so), approximately 80% of our sales have been pure (and mostly South African) investors, buying to rent out. Since the beginning of 2013, we’ve seen the re-emergence of first-time buyers who now account for an increased number of our CBD sales. Once again, these buyers tend to be young professionals in their 20s and 30s, working in town. The majority of tenants on our rental portfolio are the same.”

Having a “live-in” consumer base makes retail in the CBD not only viable and profitable for retailers but also necessary for residents. The staple of location is as relevant for suburban centres as it is for city merchants. And the rentals reflect this.

Stephen Wormald of Baker Street Properties says retail rentals can range from R90/m2 to R350/m2 – depending on space needed and location.

According to Andrew Kendall of Eris Property Group, “Retail in St George’s Mall is always taken up quickly. A corner property with good exposure could go for R250/m2 to R350/m2, but two blocks further away it could be half that.”

With office developments such as Portside and 22 Bree on the south side of the CBD, a new crop of hungry workers will seek out food and general retailers, which will see increased demand in the area known as the Foreshore – where rentals are low, for now.



Office space, too, is some of the best in the city boasting 25% of all P- and A-grade offices. P-grade space in the Central City is sitting between R160/m2 and R185/m2. But location still applies. “You can have a building such as The Terraces (34 Bree Street), where Growthpoint is achieving rentals of R110/m2 to R120/m2, but just 200 metres down the road there is a building that was once great but hasn’t been upgraded in decades,” says Kendall. “Its occupancy currently stands at 30%, which means that even its R85/m2 asking is still considered to be too high for the condition of the building. It’s stuck back in the 1970s when it was built. The modern trend is for hot desking, green park environments, and trendy and open-plan spaces.”

Cape Town’s Central City looks set to improve further, attract even more investment and walk the talk for the next 361 years of its evolution.

27 19 5 22 9 2 2523

20

3

14

10

28

7

13

4

29

30

83117

11

26

6

18

16

21

12

15

1 24

1 21 Pepper Street: redevelopment, no completion date available. 2 22 Bree Street: redevelopment, completed. 3 33 Heerengracht: redevelopment, development under way and nearing completion. 4 29 Martin Hammershlag Way, ACB House: redevelopment, completed. 5 Corner Bree and Longmarket Streets, ACME Garage: redevelopment, completed. 6 36 Buitenkant Street, Albes Building: redevelopment, completed. 7 DF Malan Street, Artscape Phase 1: redevelopment, completed. 8 Christiaan Barnard Street, Atlantic Centre, Atlantic House: redevelopment, development under way. 9 St George’s Mall, Strand Street, Cape Sun parking: refurbishment, completion second half 2013. 10 Cape Town Station Phase 1: redevelopment, development under way. 11 Castle of Good Hope: refurbishment, completed. 12 Queen Victoria Street, Centre for the Book: refurbishment, completed. 13 Civic Centre: refurbishment, nearing completion. 14 Block Table Bay Boulevard, Heerengracht, Harbour, Lower Long, Convention Centre: expansion, completion mid-2016. 15 Corner Long and Bloem Streets, Fiction nightclub: refurbishment, completed. 16 Grand Central Shopping Centre, Grand Central Building: refurbishment, completed. 17 Corner Hertzog Boulevard and Christian Barnard Street, Grant Thorton building: redevelopment, completed. 18 Barrack Street, Home Affairs: refurbishment, completed. 19 Green Market Square, Inn on the Square: refurbishment, completed. 20 Jetty Street, Liebenberg and Stander building: redevelopment, completion November 2013. 21 St George’s Mall, Newspaper House: refurbishment, completed. 22 Castle, Berg, Long Streets, NH Oscar Pearse: redevelopment, development under way. 23 29 Heerengracht Street, Park Inn Hotel: redevelopment, completed. 24. 11 Wale Street, PGWC Building: refurbishment, development under way. 25 Bree, Hans Strydom, Prestwich, Buitengracht Streets, Portside: new development, completion January 2014. 26 Corner Buitenkant and Commercial Streets: redevelopment, completion end 2013. 27 Wale Street, Wale Street Chambers: refurbishment, ongoing. 28 Eastern Boulevard, in front of Naspers, new Netcare Hospital: new development planned. 29 Christiaan Barnard Street, Ducat Tower: new development planned. 30 Christiaan Barnard Street, Culemborg: new development planned. 31 Christiaan Barnard Street: redevelopment, consolidation of city block planned.

Afroteq Design • Cape Town Head Ofce: +27 21 528 8980 •www.fm-solutions.co.za • Email: [email protected]

Branches in Johannesburg, Port Elizabeth, East London and Durban

OVERALL OBJECTIVE

Head Office:

Implemen�ng s�stainable fa�ili�es sol��ons� ��ilst striving for perfe��on�

When it comes to implementing facilities management solutions to ensure sustainable Green Building principles are

followed, we are the experts. Through our design division, we are the only Facilities and Project Management company

in South Africa to have successfully led a Green Building project incorporating FM principles. The proof?

Agrivaal 4-Star Green Rated - the rst building and a landmark achievement for Government. Not only is it green by

design, but is t for effective and cost efcient facilities management support and use.

Our team of highly qualied multi-disciplinarary built-environment experts offer the following services:

Ÿ Strategic Facilities Management, Design and Operations

Ÿ Interior Design and Space Planning

Ÿ Project and Programme Management

Sustainable Partners for Sustainable Solutions.


green regeneration

Tshwane landmark receives major face lift

The Agrivaal building is an iconic landmark that has formed part of the Tshwane landscape since the late

1930s, and not many realise the cultural and historical significance it holds. The three-storey building, located in the Tshwane CBD and owned by the Department of Public Works, was vacated in early 2000 and has been vacant– until now.

When the Government identified the need to revitalise the building, it undertook a feasibility study to ascertain the scope of the project. This resulted in the commissioning of a large-scale restoration and refurbishment of the heritage building, and required a team of specialists – not only for the refurbishment in general, but specifically because the Department wanted to create a Green Star building, the first national government building project to target Green Star certification.

Akani Consortium, consisting of a mix of architects, quantity surveyors, engineers and project managers, won the bid to undertake the project, and Afroteq Facilities Management was appointed to lead the consortium as the facilities-management, interior-design and space-planning consultants.

The mandate was to design the interior architecture based on sound operational and facilities management principles, and to ensure that these were incorporated within the total building design. As consortium leader, Afroteq, a division of Afroteq FM Solutions, has played a fundamental role in the overall building design and has ensured that the building will perform consistently with the client’s needs, and – most importantly – that it will function at an optimum financial, operational and practical level once completed and occupied.

A notable achievement is that the building has been given a 4-star Green Star Rating by the Green Building Council of South Africa – the first national government building to receive this certification.

The building comprises many green building features and incorporates innovations such as an HVAC system with an economic cycle and ice storage system, a DALI system (which controls the lighting of spaces in use) and a “grey water system” to collect, treat and reuse grey water.

Operations director Lydia Hendricks is thrilled that Afroteq is the first facilities management company to lead a refurbishment and construction project as consortium leader, since a consortium is traditionally led by architects.

It is anticipated that the project will attract much attention and praise, and Hendricks is confident that this platform will promote facilities management as a discipline that takes necessary cognisance at the planning stages of building projects, ensuring intrinsic value to overall operations and aesthetic design of the structure.

Another major benefit derived from using an FM company to lead such a project is that the majority of aspects traditionally seen as being part of the tenant’s responsibility, including retrofitting (which is usually undertaken after handover), have already been incorporated into the initial planning and completion phases. This will ensure that the tenant’s relocation experience will be limited to basic operational needs as the completed structure will be fully operational on move-in day.

The Agrivaal refurbishment is the Department’s first project to approach the design and construction of new government structures using an FM methodology, and incorporates the following design milestones:

l Acts as a benchmark for Government structures;l New government corporate identity;l First national government 4-Star GBCSA

rated structure on design criteria;l Designed from a facilities management

operations perspective;l All legislated security requirements have

been integrated into the structures’ design;l Designed to include office accommodations that

create a highly flexible working environment;l Heritage site incorporated and integrated into

main structure façade.

The design and implementation approach was to promote the benefits to this 4-Star structure, which include:

l Reduced carbon footprint;l Lower energy costs;l Reduced water costs;l Increased productivity;l Market leadership in sustainable buildings.

The office block is located on the corner of Edmond and Hamilton Streets, 600 metres from the Union Buildings. Tshwane citizens can look forward to the modern and gleaming, environmentally-friendly office block, soon to be a “must-see” historical landmark in the city.

Mention the “Union Buildings” in Tshwane and people instantly associate it with the historical landmark that houses the presidential offices. Mention “Agrivaal”

building and few people know what you’re talking aboutBy Nicky Taylor

PROJECT FLOOR AREAS TOTAL GROSS FLOOR AREA (GFA): 26 989 m2

TOTAL COMMERCIAL OFFICE AREA: 26 989 m2 Building Footprint: 2069 m2

PROJECT ADDRESS

178 Schoeman Street Pretoria, Gauteng

SOUTH AFRICA

AGRIVAAL BUILDING, PRETORIA OFFICE v1 Design Rating v1

Achieved in November 2012



PROJECT ADDRESS


SOUTH AFRICA

AGRIVAAL BUILDING, PRETORIA OFFICE v1 Design Rating v1

Achieved in November 2012 GREEN STAR SA CASE STUDY | SPIRE HOUSE, TANNERY PARK, 23 BELMONT ROAD, RONDEBOSCH 7700 | P O BOX 155, RONDEBOSCH 7701, CAPE TOWN | WWW.GBCSA.ORG.ZA

INTRODUCTION The Agrivaal building project is a refurbishment of an old government building (heritage building) located in the Tshwane CBD. It is the first government building to target a Green Star SA Certification. The building comprises many green building features, some of which are: an HVAC system that has an economic cycle and an ice storage system; a DALI system-a lighting system that controls the lighting of spaces in use; a system that will collect, treat and reuse grey water and 60% of all the reinforcing steel has been specified to have a minimum post-consumer recycled content of 90%.

The office Block is located on the corner of Edmond and Hamilton and is a mere 600m from the Union Building.

PROJECT TEAM: DEVELOPERS NATIONAL DEPARTMENT OF PUBLIC WORKS ARCHITECT PKA INTERNATIONAL ARCHITECTS CIVIL/ STRUCTURAL ENGINEERS WSP STRUCTURES ELECTRICAL ENGINEER WSP CONSULTING ENGINEERS FIRE CONSULTANT WSP CONSULTING ENGINEERS LANDSCAPE ARCHITECT IGREENIC LANSCAPE ARCHITECT MECHANICAL ENGINEER WSP CONSULTING ENGINEERS INTERIOR DESIGNERS AFROTEQ.DESIGN

PROJECT MANAGER HPM CONSULTING QUANTITY SURVEYOR PENTAD QS TRANSPORT ENGINEERS ROUTE² TRANSPORT STRATEGIES SUSTAINABLE DESIGN CONSULTANT WSP GREEN BY DESIGN WET SERVICES WSP CONSULTING ENGINEERS ACOUSTIC ENGINEER SUBSONIC DESIGNS

CHIEF PHOTO / RENDERING



PROJECT ADDRESS


SOUTH AFRICA

AGRIVAAL BUILDING, PRETORIA 4 Star Green Star SA – OFFICE v1 Design Rating v1

Achieved in November 2012


green regeneration

DeveloperNational Department of Public WorksConsortium leaderAfroteq/FM SolutionsArchitectPKA International ArchitectsFrancois van der Merwe ArchitectsCivil/Structural engineerWSP Group Africa (Structures)Electrical engineerWSP Group Africa (Building Services)Fire consultantWSP Consulting EngineersLandscape architectGREENInc Landscape ArchitectsMechanical engineerWSP Consulting EngineersInterior design & space planningAfroteq/FM SolutionsFacilities management consultantAfroteq/FM SolutionsProject managerHPM ConsultingQuantity surveyorPENTAD Quantity SurveyorsTransport engineersRoute² Transport StrategiesSustainable design consultantWSP Green By DesignWet servicesWSP Consulting EngineersAcoustic engineerAfroteq/FM Solutions

Renderings courtesy of PKA Architects


on show

Grundfos’ green masterpiece

on show

Grundfos’ new headquarters are located on one of the most prominent sites in Germiston/Ekurhuleni,

at the junction of the N12 and R24 highways, which means great exposure potential. While the site is owned and developed by Growthpoint Properties, it incorporates both the new head office (3 000m²) and a warehouse (6 500m²) for Grundfos South Africa. From the start it was envisioned that the head office should be green and that a 4-star Green Star rating would be targeted. With this in mind every decision was made in consideration to the environment.

A unique fusion of design and aesthetics with efficiency and engineeringBy Nicky Manson



on show

The office block is conceptually constructed from two interconnecting blocks around a central full-height atrium, and consists of two office levels over a ventilated basement level. Using insulated concrete roofs, brick walls and a large span of glazing, the design had to stay true to Grundfos’ unique global architectural language, but also incorporate a South African impression. This was ensured by Empowered Spaces Architecture, who created a contemporary style.

There are a number of unique features, the most distinctive of which are the two white boxes that intersect to form the main entrance with the glass façades cut from it. The main entrance is another statement space, although fairly challenging in that the natural ground level was 2,5m lower than the ground-floor entrance. “We decided to have access from all directions and to break up the entry into various levels to make the height difference less noticeable for the visitor approaching the entrance,” explains Empowered Spaces’ Quinton Piek.

on show

The prominent orange façade is created from the vertical shading louvres made up of Grundfos’ solar panels and mesh. The mesh was created to allow enough shading onto the glass yet keep good views to the outside. The louvres also harness the west sun by means of solar panels, which generate the electricity to run the filtration system for the building. Jonathan Hamp-Adams of Grundfos admits that, aesthetically, this is his favourite feature, and it’s also the view that one gets from the freeway. The water feature also stands out and is a reference to Grundfos,

the biggest pump supplier in the world. It is made up of slabs sliding past each other penetrating out of the ground – a subtle reference to geological dynamics with water pumped through it.

Lynne Blumberg Interior Design took on the challenge of the exterior and interior finishes, which also had to stay true to the worldwide Grundfos buildings and Green Building Council regulations. The colour palette consists of shades of crisp white, warm charcoal and black, injected with the bold Grundfos blue, dynamic red and fresh lime. The clean, powerful lines of the building are reinforced in the reception area, which is also home to a floating reception desk. A glass image of a raging waterfall, backlit with LED strip lighting against watery, silver porcelain, showcases the magnificently designed Grundfos pumps. Oversized palms, bold Grundfos blue seating, white swivel chairs, a trio of stainless-steel low-slung coffee tables and Nguni hides complete the picture. Large pumps are used as pieces of art, creating an integrative sculpture display area, which in turn leads to the atrium.

The office block is conceptually constructed from two interconnecting blocks around a central full-height atrium, and consists of two office levels over a ventilated basement level


on showon show


Sustainable initiativesl Building oriented south to allow maximum light

penetration with minimal heat gain from the sun.l Insulation used on all the roof slabs, under all exposed

concrete soffits and even on the glass façades. l Grundfos solar panels to generate enough electricity

to run the entire Grundfos water-filtration system.l Building designed to allow external views and light

penetration to 80% of the floor area, reducing lighting requirements.

l All lights to be low-energy fittings with light and motion sensors.

l Wind turbines on the roof to generate electricity.l All building materials guided by the Green Building

Council of South Africa Green Star requirements – low-VOC and 0% formaldehyde.

l Materials from demolished buildings on site reused in the construction of the building.

l Landscaping requires almost no watering – endemic to the area.

l 70% of construction waste redirected from the landfill due to reuse or recycling of the waste.

l Fresh air provided at a rate of 12.5ℓ/s/p, exceeding minimum regulatory requirements by 150%.

l Daylight glare control via vertical fixed shading devices. l High-frequency ballast provided for 100% of usable

area (UA).l Variable speed drives for mechanical equipment

installed to reduce operational energy consumption.l Heat pumps for domestic hot-water production

for kitchen, emergency rooms and gym.l Energy uses of 100kVA or greater sub-metered,

and energy consumption effectively monitored through the BMS.

l Dedicated parking spaces provided for fuel- efficient vehicles.

l Cyclists’ facilities provided. l Rainwater harvesting system present, with

treatment of water to drinking quality.l Efficient water fittings.l Water meters for all major water uses. l A recycling waste storage facility.


on show

A water-jet feature and a largely green space are surrounded by oversized white umbrellas, providing the perfect relaxation area. The atrium is also a fully functioning water-recycling plant. Further on, a funky, colourful canteen boasts a glass graffiti wall.

The space has certainly been designed for both efficiency, and the wellbeing of the staff, and this was important to the company as Jonathan Hamp-Adams reiterates. “I think the project as a whole has pretty much achieved what we originally envisaged:

improved ability to deliver outstanding customer service, fantastic working environment for our staff, maximum brand exposure and – of course – the great engineering and aesthetic of the actual building,” he says.

The main entrance is a statement space, and fairly challenging because the natural ground level was 2,5m lower than the ground- floor entrance



on show

The teamLynne Blumberg Lynne Blumberg Interior Design +27 (0)11 447 6016, Lynneblumberg.co.za

Jonathan Hamp-Adams Area managing director: sub-Saharan Africa at Grundfos GZA +27 (0)11 579 4800, Grundfos.com

Quinton Piek Empowered Spaces Architects +27 (0)11 883 83 80/6, Espaces.co.za

Yovka Raytcheva-Schaap Environmentally sustainable design (ESD) consulting and project management, Aurecon +27 (0)12 427 2223, Aurecongroup.com

Peet BothaConscius Consultants+27 (0)11 246 1244, [email protected]


Tel: (+27) 011 246 1244 e-mail: [email protected] website: www.conscius.co.za

* Intelligent Green Designs

* Innovative Sustainable Systems

* Integrated Verification Networks

* Accredited Professionals

* Independent Commissioning Agents

ELECTRICAL ENGINEERSFOR HIGH PERFORMANCE BUILDINGS

ELECTRICAL ENGINEERSFOR HIGH PERFORMANCE BUILDINGS


opinion

Mixed use for a sustainable Sandton The architecture of the everyday

By Adrian Maserow, AMA Architects

At AMA Architects we subscribe to the vision of designing projects as urban catalysts. We

promote visionary mixed-use developments and we believe this initiative will leave a significant impact on the future of South African cities – in particular Sandton.

The International Congress for Modern Architecture (first organised in 1928 by Le Corbusier and delegates), saw architecture as an economic and political tool that could be used to improve the world through innovative urban planning. The common purpose that incorporates mixed-use buildings and precincts achieves the highest goals of integrated development, and these precincts – the V&A Waterfront, Melrose Arch, etc – have been successfully developed in South Africa.

Yet the trends seem to have been lost with the critical impact that such development could bring to Sandton.

As architects we understand the impact of shopping densities, office floor-plate efficiencies,

homemaking spaces and places of instruction as part of the urban place-making imperative. We must actively include places of work (offices), places to live in (hotels/homes/apartments), shopping centres and retail nodes, places of relaxation and play (from parks and squares to bars, theatres and galleries), the civic realm, transportation hubs (stations), educational facilities and other programmes.

Separate-use zoning disconnects with the principle of diversification, and the result is that these developments diminish their ambition, which leads to unsustainable environments. Precincts and single structures must actively evolve towards compact and integrated developments that belong to the economics of sustainability. Development that encourages connections to the wider web of spatial relationships must now be promoted.

We are drawn to the urgent recovery of something lost. According to the author Peter Buchanan, “This pursuit is driving evolutionary change in architectural design and the

environments in which we live.” He elaborates on the urgent need to provide frameworks for mixed-use developments that communities may connect to and flourish in.

Strong pedestrianisation of an entire area, together with diverse functions, manifest highly valued place-making nodes. Collaborative methodologies draw inspiration from multiple inputs and are integrated with the principles of densification and sustainability.

The impetus of architecture lies as much in the creation of aesthetically stimulating physical settings as the sheltering of people within them. Our culture of spatial configuration belongs to a complex sociopolitical creation, and we have learnt that adjacent spatial locations and functional experiences can be choreographed in a layered set of rituals and actions, which reinforce a life lived to the fullest. Fluid networks are activated among dwelling, working, playing, learning, relaxing, healing, eating, shopping, travelling and praying – all within walking proximity.


engineers & quantity surveyors

+27 (0)11 791 [email protected]

www.qsbureau.co.za

Fritz Relling was born in Kroonstad and schooled

in Bloemfontein. Together with Willie Steyn, he is the

managing partner at QS Bureau Quantity Surveyors,

and the men’s professional relationship history is

almost as long as their friendship.

The company was established in 1997; both

Relling and Steyn came to the partnership with many

years of experience. Relling has notched up 29 years

as a quantity surveyor and was previously a director

at leading quantity-surveying practice McLachlan

du Plooy (at its Johannesburg, Bloemfontein and

Welkom branches. He also gained experience across

Africa, especially in Swaziland, Botswana, Angola

and Mozambique.

Relling’s qualifications include a BSc Quantity

Surveying degree from the University of the Free

State. A a Masters in Business Leadership (MBL)

from the University of South Africa (UNISA) has

also provided opportunities and opened many doors.

“Among the attributes that set QS Bureau apart

from its competitors is that, through highly developed

and specialised expertise, we continuously deliver

creative and innovative solutions to maximise

returns for our clients,” says Relling. “The company’s

willingness to embrace the latest technology gives it

a competitive edge. This ensures that our competent

team of specialists’ delivery of projects is always

exceptional, consistent and on time.”

And QS Bureau’s future plans? “We want to

go on attracting the same great level of clients

by offering the top consulting service that we

already do and by maintaining our existing

loyal client base.”

Fritz Christian Relling QS Bureau Quantity Surveyors


www.qsbureau.co.za

Willem Steyn has 29 years of experience in quantity

surveying. After obtaining his BSc in Quantity Surveying

from the University of the Free State, he joined Basie

Verster to start Verster Steyn Quantity Surveyors in

Bloemfontein. He also lectured at the University of

the Free State. Upon joining McLachlan du Plooy, he

moved to Johannesburg and opened the Johannesburg

branch with Fritz Relling and Robert More.

QS Bureau has taken 17 years of hard work,

dedication and building a very particular work ethic

to grow into the company it is today. Steyn personally

managed numerous projects in Angola, with Group Five

International as main contractor.

QS Bureau is the driving

force behind a future

island development in

Mozambique. Steyn has

also acted as an advisor

for Protea Hotels across

Africa to assist in new

developments. Some of

the recent projects where

QS Bureau acted as principal

agent include the Fairway Hotel,

Soweto Theatre and Tom Campher Motors.

QS Bureau is also pleased to be part of the Steyn

City development, consisting of projects such as Auto

and General/Telesure Head Office as well as the Cedar

Road Gatehouse.

The company was recently a proud recipient of

the 2013 PMR.Africa Diamond Award for Small Firm

Quantity Surveying (Outstanding First Overall). Over

the past five years, QS Bureau has featured consistently

and prominently in the PMR.Africa Awards, which is

evidence of the company’s determination to stay on

top of its game. These awards include the Diamond

Arrow Award, the Silver Arrow Award and a Top 5 Award.

“The fact that this comes from the people to whom

QS Bureau provides its services is just fantastic,” says

Steyn. “It’s testament to our principal philosophy of

leading from the front and making sure it’s Fritz, Jerry

and myself the customers deal with to get the benefit

of our experience and input. Far too many firms win

business then let junior staff contribute to (and even

make) major decisions, which is not fair to the clients.”

Willem Hendrik Steyn QS Bureau Quantity Surveyors


www.qsbureau.co.za

Jerry Erasmus joined QS Bureau Quantity

Surveyors in 2006, and today his job description

and role include all quantity-surveying duties

and project-management services, as well as

project administration.

He received a BSc in Quantity Surveying

from the University of the Free State before

performing a number of different roles at

top companies such as Victor Petersen &

Partners, City of Johannesburg, Iscor Architect

and Quantity Surveyor Division, Myles Rousseau

Nevay Erasmus Inc, Schoombie Hartmann Inc

and Murray Roberts. At one point, he was also

in charge of his own company, Jerry Erasmus

Quantity Surveyor CC. This has ensured that

his skills set is varied and accomplished.

QS Bureau prides itself on its successes

and firmly attributes these to work ethic and

the great team behind the firm.

In the end everything comes down to

hard work and dedication and building a very

particular work ethic, which then allows the

company to achieve what it has in the past.

It’s a very simple ethic of making sure

that the clients are always in the hands of top

management, people who have the experience

to understand the clients’ needs, offer the right

advice and help make the right decisions.

QS Bureau’s service ethic is also evident in

some of its recent projects, including Clearwater

Estate, Tharisa Mine, Unilever Waterfall HCL,

Kloofzicht Lodge, MIT Auto Parts, M2 Hostel

and Klerksdorp Checkers Phase 3.

Jerry Erasmus QS Bureau Quantity Surveyors

Focus on quantity surveyors & engineersSouth African quantity surveyors and engineers are sought-after around the world, and especially in Africa. We look at some of the leading local players


engineers & quantity surveyors

University of Cape Town electrical engineering graduate

Jonathan Edwards worked in Johannesburg for six years

on high-profile projects, before starting the electrical

engineering division at Sutherland in January 2011.

Heading up the electrical division at Sutherland

has been a great experience, and the division has

gone from strength to strength. To make Sutherland

truly multidisciplinary, in less than three years, this

new division has grown to consist of an experienced,

strong team, including three professionally registered

engineers, with strong technician and CAD support.

Edwards believes the growth

of Sutherland Electrical

to complement the

established Structural/

Civil and Mechanical

(HVAC, Wet Services

and Rational Fire)

offerings nationally

can be attributed to the

strength of the Sutherland

brand among the national

client base and the company’s

commitment to constantly delivering the most

optimal design solutions possible (from a capital

cost, running cost and maintainability perspective).

Apart from Sutherland Electrical’s increasing

involvement in projects across South Africa, the firm

has been fortunate enough to attract exciting projects

across sub-Saharan Africa, where clients often prefer

a full multidisciplinary service offering. Sutherland

is currently engineering a 29 000m² shopping centre

in Nairobi and a 15 000m² 14-storey office building in

the most prestigious area of Lagos, as well as a number

of new retail and hotel developments.

“The expansion into sub-Saharan Africa really

puts energy-efficient, totally sustainable designs to the

test,” says Edwards. “North of our borders the typical

client’s stated requirement for a green building is not

to achieve a green building accreditation, but rather

to make the building truly functional. The buildings

have to be completely self-sufficient and non-reliant

on any municipal services (because of the intermittent

or simply nonexistent electricity, water, storm water

and sewerage supplies or connections).

“It is for this reason that a fully optimised

engineering design solution for all services is absolutely

essential from a purely functional perspective, and

prioritises the mechanical, plumbing and electrical

engineering disciplines far more than it used to on

traditional building projects in South Africa, even

as little as five years ago.”

+27 (0)82 415 8461 / +27 (0)21 425 [email protected]

www.sutherlandengineers.com

Jonathan Edwards Sutherland Engineers

+27 (0)83 320 3534 / +27 (0)21 425 [email protected]

www.sutherlandengineers.com

Since graduating with a mechanical engineering

degree from the University of Cape Town in 1981,

Noel de Villiers has spent most of his working life

in the building services industry, specifically in the

HVAC discipline. His first position in 1981 was with Hill

Kaplan Scott consulting engineers, based in Cape Town,

followed by a three-year stint at gold and platinum mines,

where he obtained his Govt. Certificate of Competency.

He then returned to Cape Town to join Improvair as

a design and estimating engineer, spending the latter

part of his five years there in the contracting division.

De Villiers moved into manufacturing, working

for Rickard Air Diffusion in Cape Town. During his 13

years with the company, he moved from sales engineer

through various technical and production-related

positions, ending with a short stint

as MD before deciding to start

his own business as a

contractor, still in the air-

conditioning industry.

After seven years

as a contractor, he

decided to put his

25 years of experience

in the HVAC industry

into consulting. He joined

Sutherland in 2006 as technical

director and soon got involved in the green building

movement, serving on a technical working group for

the development of one of the Green Star SA rating tools.

Until about five years ago, little had changed in

the HVAC industry. However, due to the threat of global

warming and the steep rise in energy costs, lately there

has been a significant shift in the way buildings are

air conditioned. In the past, it was all about the lowest

capital cost, with little or no regard for the operating

costs. Today the emphasis is on operating costs as well

as environmental impact. Most clients are prepared to

spend more money initially, knowing that the cost will

soon be recovered, while at the same time offering

their tenants a better working environment.

It’s been exciting to see new technologies emerging,

making it possible to design HVAC systems that have a

significantly reduced impact on the environment and

operating costs. For the new building at 90 Grayston

Drive, the three air-cooled Ammonia chillers that are

being installed will have an efficiency almost twice that

of the standard chillers that were common 10 years ago.

The challenge is to keep abreast of the latest

technological developments without exposing clients

to the risks that can be associated with concepts that

have not been tried and tested in the marketplace.

Noel de Villiers Sutherland Engineers

PLANTECH Associates is a consulting engineering

firm established in 1982. Since its establishment

in Pretoria, the company’s activities have expanded

throughout South Africa, Lesotho, Nigeria, Mauritius

and India. Present offices are located in Pretoria and

Stellenbosch, with a total staff complement of more

than 20 engineers, technicians and support personnel.

PLANTECH’s extensive electrical and mechanical

engineering knowledge and experience is applied to

deliver optimum and viable engineering solutions,

supporting its clients to deliver projects of the best

possible quality on time and on budget.

PLANTECH has received several awards over

the years, including the Shell

Design Award, the Schneider

Award, the PMR.Africa

Diamond Arrow

Award and the

SABS Design

Institute Merit

Award (the latter

for a revolutionary

through-wall isolator,

making economical high-

voltage indoor type cellular

substations possible).

As a mechanical engineer involved in the

building-services arm of PLANTECH, Peter Pelser

was involved in several projects where green building

practices were high on the agenda. Some of these

projects include:

l SANRAL Corporate Head Office Building, which

received a 4-star office as-designed rating from

the Green Building Council of South Africa;

l Old Mutual Kagiso Mall Retail Development,

which was nominated for the SAPOA 2013

innovative excellence awards;

l City Power Control Building & Executive Wing,

which is to be submitted for an as-designed

Green Star SA rating; and

l Eskom Kusile Power Station Admin Building,

which is to be submitted for an as-built Green

Star SA rating.

Peet Pelser PLANTECH Associates

+27 (0)12 349 2253 / +27 (0)21 880 [email protected]

www.plantech.co.za

Focus on quantity surveyors & engineers


workshopworkshop


MAIN PICTURE Essop Basha, divisional head of utilities/sustainability management at Growthpoint Properties and SAPOA chairperson of the Sustainability Committee INSET Heidi Hertz, head of strategic operations at City Property Administration


workshop

Sustainability and energy saving were at the top of the agenda at a recent SAPOA/Eskom Energy Efficiency WorkshopBy Candace King Photographs by Michael Glenister

With escalating energy costs and the growing need for property

players and buildings to be more green and efficient, sustainability has become a big issue in the property industry – something that SAPOA has taken full cognisance of. SAPOA takes pride in hosting workshops and seminars in an effort to inform and educate its members and the industry as a whole on the best green practices and how to deal with rising utilities costs.

In partnership with Eskom, SAPOA presented a one-day workshop on energy efficiency on 16 September to a group of almost 50 delegates, including SAPOA members as well as non-members. Held at the Eskom Academy of Learning in Midrand, the workshop provided an industry update regarding energy efficiency, and was suited to organisations that have embarked on integrated demand management funding programmes as well as those who have not yet introduced it. The workshop covered various energy efficiency aspects, including an update from Eskom, case studies of pertinent technologies, and the Green Building Council of South Africa (GBCSA) energy and water benchmarking tool.

Facilitated by Essop Basha, divisional head of utilities/sustainability management at Growthpoint Properties and the chairperson of the SAPOA Sustainability Committee, the workshop kicked off with Heidi Hertz, head of strategic operations at City Property Administration, opening the floor with a welcome and a few housekeeping pointers. The workshop’s keynote address was presented by Andrew Etzinger, senior general manager at Eskom Integrated Demand Management (IDM), who gave an update on Eskom’s IDM programme as well as the current state of the grid.

Eskom IDM is responsible for developing solutions and managing the delivery of energy savings through various programmes

in the commercial, industrial, residential, and agricultural sectors. New sectors and future solutions will be developed from time to time to address the changing needs of the market and changing conditions of supply outlook.

Etzinger noted that Eskom’s power stations are ageing and are being run hard. He added that sustained high levels of planned maintenance are needed to ensure reliable performance. “The power system has been particularly tight, and planned maintenance was impacted in 2013 by several factors,” he said. “These included the failure of a transmission line from Mozambique because of flooding, which reduced imports from Cahora Bassa (850MW); the unplanned outage of Koeberg Unit 1 (900MW); the need to manage the impact of the strike at Exarro’s coal mines (1 000MW); and volatile power station performance.”

Etzinger noted that Eskom kept the lights on in summer using open cycle gas turbines and demand side measures, but planned maintenance had to be reduced. “Eskom usually reduces maintenance to a minimum in winter so that we can meet higher demand,” he said. “But this winter is different: planned maintenance cannot be deferred. Demand during winter-evening peaks can jump by up to 3 000MW in one hour, as households switch on lights, heaters and stoves.”

Eskom has reached a point where it cannot continue to defer planned generation maintenance any longer as this could have severe consequences. The performance of Eskom’s generation fleet is volatile and that of the Cahora Bassa scheme has become unpredictable. The Multi-Year Price Determination 3 (MYPD3) adds to the challenge of managing a tight power system by reducing Eskom’s ability to procure additional demand and supply side levers. “We will implement a generation maintenance strategy that is based on an 80% availability,

Sustainability under the spotlight

Andrew Etzinger, senior general manager at Eskom Integrated Demand Management

The national electricity supply system remains under pressure. The economic downturn provided temporary relief but the economy is recovering, and consumption levels now exceed those of 2008


workshop

10% planned maintenance and 10% unplanned outages over five years to maintain the current fleet, meet environmental requirements and achieve predictable performance from our existing assets,” said Etzinger.

He added that much of the planned maintenance will be fixed, providing certainty for planning, while outages will happen to ensure Eskom can comply with environmental legislation. Additional supply and demand side options must be explored to meet medium-term electricity demand. Furthermore, the summer period will be extremely challenging as the issue will be to meet demand throughout the day and not just at peak while having sufficient operating reserves to deal with contingencies.

Currently, Eskom’s power stations are in their mid-life, and require constant and increased maintenance. On average, Eskom’s power stations are 30 years old, with the oldest being 49. Some of the plants will require refurbishment in order to extend their life cycle and improve their performance. Eskom needs to sustain planned maintenance levels at 10% for three years to turn around and sustain stable generation performance.

Planned maintenance has often had to be shifted or deferred to ensure Eskom has sufficient capacity available to meet demand and “keep the lights on”. This approach, however, is not sustainable and thus it is essential that planned maintenance be done to enable predictable and sustainable performance from Eskom’s power stations. Eskom has put in place a five-year strategy for generation sustainability, which includes a firm commitment not to postpone critical maintenance. This is based on the 80:10:10 principle – that is, on average, an energy availability factor (EAF) of 80%, planned maintenance of 10% and a projected unplanned outage ratio of 10%.

About eight percent of the planned maintenance will be made up of maintenance that will be fixed in terms of its schedule. The other 2% will be short term maintenance. This will allow for certainty in planning and executing the maintenance outages.

1

2

43

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workshop

Speakers included:1. Darryl Chapman, Eskom chief engineer, who discussed Eskom’s Internal Energy Efficiency Programme; 2. Francois Retief, technical manager at the Green Building Council of South Africa, who spoke on existing building performance and the energy and water benchmarking tool; 3. Trevor Naicker, commercial sector manager at Eskom IDM, who spoke about the IDM incentive; 4. Dr Wilfred Fritz from the Department of Energy;5. Hendrik Greyling, CEO of Remote Metering Solutions, who discussed ways to make energy visible; 6. Advocate Portia Matsane, SAPOA legal manager/company secretary, who addressed sustainability regulation;7. Tshepo Chuene from the Department of Energy, who (together with Dr Fritz) spoke on the Energy Efficiency Target Monitoring System; and8. Dhevan Pillay, director at LDM Energy, who discussed his company’s green benefits.

Outages to achieve compliance with environmental legislation, where no exemptions have been obtained, will be done. Any improvement in unplanned outages will be used to create space for planned maintenance. Eskom will implement a programme that allows for better resource planning and more effective use of contractor capacity, as well as improved internal skills and processes.

In executing the 80:10:10 principle over a five-year period with scenarios on demand growth and delays to the new-build programme, there is a potential gap in supply of between 100MW and 2 000MW in mid-merit and base-load capacity. The most likely scenario could see a gap of about 700MW. “There are available supply and demand side levers with different levels of feasibility that can close the gap but are not in the approved MYPD3 determination,” said Etzinger. “The levers and assumptions exclude the implementation of any demand reduction protocols. In scenarios done with worsening plant performance and higher growth rates in electricity demand, the gap could be as much as 5 000MW.”

In conclusion, Etzinger pointed out that energy efficiency and demand management are essential to keep the lights on and grow the economy, and that a long term perspective is needed to stay on course. It’s inevitable that the funding challenge is significant, and currently there are programme structures that are being reviewed to align with the new reality. There needs to be a focus on quality and safety as well as on ethical practices.

“The national electricity supply system remains under pressure,” said Etzinger. “The economic downturn provided temporary relief but the economy is recovering, and consumption levels now exceed those of 2008. There is a high likelihood of an energy supply shortfall until 2015. However, collectively we have done well over the last three years. Thank you for your contribution – and let’s keep going.”

The workshop ended on a high note with a riveting panel discussion and energy- efficient food for thought.

6

7

8

ABOVE The workshop was attended by several energy efficient vendorsOPPOSITE TOP A panel discussion took place between (from left) Dhevan Pillay, Dr Wilfred Fritz, Trevor Naicker, Advocate Portia Matsane and Hendrik Greyling


kwazulu-natal social networking

SAPOA breakfast Riverside Hotel, Durban NorthOn 17 September, more than 100 SAPOA KZN members packed the Riverside Hotel’s conference centre for a networking breakfast presentation in partnership with the Department of Trade and IndustryBy Anne Schauffer

It was no wonder that the Riverside conference centre was packed for

the SAPOA KZN breakfast meeting. There, to offer property owners and developers an opportunity to take advantage of a specific government grant, was speaker Wiseman Myeni, regional manager for the Department of Trade and Industry (DTI).

Welcomed by Edwin van Niekerk, KZN regional chairman of SAPOA, Myeni briefed members of SAPOA on the department’s critical infrastructure programme (CIP), an incentive scheme designed to contribute towards infrastructure costs of

development projects such as industrial parks or factory schemes. The CIP is a cost-sharing grant for projects designed to improve critical infrastructure in South Africa, and although it isn’t new, only one application has been approved since April. Myeni conceded the DTI had been “talking to the wrong people”, and he was here to put that to rights. And SAPOA members were clearly the “right” people – members were keen to gain clarification of this grant and, importantly, to learn what criteria were applied when the DTI considered applications.

The grant pays qualifying developers between 10% and 30% of the total infrastructure costs of their project, capped at R30-million. Myeni said there was sometimes confusion between the entire project and the infrastructure component of it – the grant applies to elements such as transport, energy, water and sanitation, telecommunications and fuel. The grant only covers infrastructure on publicly accessible land.

Myeni also indicated elements that would give the application more weight. Applications are awarded points based on the project’s contribution to

economic development or investment, the number of jobs it helps create, and whether it’s deemed to contribute to upliftment of an underdeveloped area. To strengthen the application, Myeni strongly advised applicants to get the local authorities on their side.

SAPOA members were keen to find out the detailed elements of the grant, and question time was lively – and the subsequent breakfast well earned. A comprehensive DTI booklet was distributed to guests, and the breakfast offered an excellent opportunity for vocal networking between old and new members.


statistics

Greening and sustainability: the natural facts

Green Building Council of South Africa (GBCSA)

Greener, better, healthier OFFiCeS

Get involved in World Green Building Week

Why are Green OFFiCeS better OFFiCeS?

18%

Up to 18% increase in productivity through access to daylight and operable windows.3

23%

Up to 23% improvement in productivity from good lighting and access to views.2

11% Up to 11% gains in productivity from fresher air.3

Up to 25% better functioning memory when workers have views.3

25%

Download A Business Case for Green Buildings

Boost productivity and performance

Enhance worker satisfaction

Are a powerful recruitment and retention tool

Reduce sick leave, stress levels and absenteeism

> > >

With more than

of total workplace costs spent on salaries and benefits, compared with less than 10 percent on rent and less than one percent on energy.

85%1

1. Persram, S., Lucuik, M. & Larsson N. (2007) “Marketing Green Buildings to Tenants of Leased Properties.” Canada Green Building Council.

2. Meng Y, Babey SH, Wolstein J. Asthma-Related School Absenteeism and School Concentration of Low-Income Students in California. Prev Chronic Dis 2012;9:110312.

3. World Green Building Council Business Case for Green Building (2013).

Green offices are designed and constructed to save energy, water and money. The hallmarks of a green office are natural light, fresh air, low toxins and views to the outdoors. This makes them healthier and more productive places to work.Organizations around the world are recognizing that just small improvements in workplace productivity can mean big savings.

Research and case studies have found that green offices:

Tweet these facts (#wgbw2013)

Share your green building story

Normal buildingsl Normal buildings globally

generate one in three tons of CO2

l Globally, the built environment is responsible for:

40% of end-use energy consumption

40% of solid-waste generation 12% of fresh water consumption

Green buildingsl Green buildings generate 33%

less greenhouse gases l Green buildings consume 26% less

energy than the average building l 3,5% lower vacancy rates in green

buildings l 13% higher rental ratesl 2,8 fewer sick days per year

November 2011 l Global carbon dioxide

emissions jumped by the largest ever amount in a single year – from 31,6-billion tons to 33,5-billion tons

l US carbon emissions output: 5,49-billion tons (16% of the world). During the KP, the US emissions have increased by 16% – four percent in 2010

l China carbon emissions output: 24,3% of global carbon emissions (50% more than the US)

l India carbon emissions output: 2,06-billion tons (6,1%) – highest rise from any country, 9,4% over a year

l Energy Star-certified buildings command rent that is 2,1% higher than similar non-certified properties. Despite increases in the supply of green buildings and the recent downturns in property markets, green premiums have been maintained. – RICS Research Report (United States), October 2010

l Rated Green Star office buildings deliver a higher return than non-rated buildings for both CBD and non-CBD office markets. – IPD Australia and New Zealand Green Cities, 2011, “Introducing the PCA/IPD Green Investment Index” presentation

l Treatment for illnesses and health conditions that are influenced by the indoor environment costs employers at least US$750 per employee annually, accounting for approximately 14% of all annual health insurance expenditures. – Prof Vivian Loftness, Carnegie Mellon University School of Architecture, “Sustainable Design for Health and Productivity” presentation for GBCSA Convention, November 2008

l The South African commercial property sector was responsible for the emission of 35 000 000 tonnes of CO

2e in 2006 alone, representing

10% of the national total. The South African residential property sector was responsible for the emission of 45 000 000 tonnes of CO

2e in

2006 alone, representing 13% of the national total. – UNEP, 2009, “Greenhouse Gas Emission and Baselines and Reduction Potentials from Buildings in South Africa”, Sustainable Buildings & Climate Initiative, United Nations Environment Programme DTIE, Paris

l Globally, energy efficiency represents about 40% of the greenhouse gas reduction potential that can be realised. It is an extremely attractive upfront investment that pays for itself over time. – McKinsey & Company, 2009, “Pathways to a Low-Carbon Economy: Version 2 of the Global Greenhouse Gas Abatement Cost Curve”

l Of the nine-billion people predicted to live on Earth in 2050, 70% are expected to live in urban areas. – UNEP, 2011, “Towards a Green Economy: Pathways to Sustainable Development and Poverty Eradication”

l A green building may cost more upfront, but can save money over the life of the building through lower operating costs. These savings may be more apparent through life-cycle assessment (LCA). – US EPA

l Studies using data from 2005 through to late 2009 have consistently found that green buildings, on average, have higher rental premiums, higher occupancy levels and higher values than buildings with otherwise similar characteristics. – Budapest Business Journal

l Since energy costs are at an all-time high, the low cost of operating and the easy maintenance of the green building will make for much lower vacancy rates along with much higher property values. – EcoWorld Magazine

l The commercial sector uses 10% of the country’s electricity. – Andrew Etzinger, Eskom’s senior general manager in the Integrated Demand Management department, 2012


port elizabeth - social networking

Port Elizabeth golf day at Hill Golf Club


port elizabeth - social networking

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off the wall

Vertical farming in the cityA tussle for urban and farming land means we may have to come up with solutions

to accommodate both forms of development. Is vertical farming the solution?By David A Steynberg

Our world is staring at two potentially life-altering probabilities: we’re producing too little food for

our growing global population, and our cities are encroaching on the arable land we do have.

Food security and a growing urban population are really two sides of the same coin. Alternative food production technologies have long been a reality: biotechnology (such as genetically modified seeds) to save on pesticides and herbicides, drip-irrigation systems for hot and dry regions, and aquaculture to grow and farm ocean fish inland are just a few of the strides that have been made in agriculture.

Still, commercial farming requires large swathes of arable land. It is also expensive and dependent on a thorough understanding of logistics and supply-chain management.

Conversely, our world is becoming increasingly urban, which means the workforce is being depleted in the rural areas, and land is needed to build housing as well as commercial industries – a political, societal and economic hot potato if there ever was one.

One solution to this issue may be right in our own back yard. Vertical urban farming has been trumpeted as the answer to our problems.

Bring the farm to the city! Make use of either existing skyscrapers or build entirely new stock. Different floors can host different crops; the existing lighting system can be adjusted to illuminate only red and blue light – the only spectrum of light plants make use of. The irrigation system is also already installed with fire sprinklers requiring adjustments to make perfect drip irrigation possible.

Consumers are increasingly becoming more aware of the concept of a carbon footprint – the amount of carbon used to get a product from creation to the store shelf. Urban farming will dramatically reduce the carbon footprint of our food by producing it in the city where it will be consumed.

According to the Food and Agriculture Organisation of the United Nations and NASA in the US, some 80%

of the land that is able to grow our food is already in use, and human populations are expected to increase by another three billion by the year 2050. We will need to come up with at least another 109 hectares of new (arable) land if we continue to farm the way we currently do.

With this in mind, vertical farming really is a no-brainer.

l Year-round crop production; one indoor hectare is equivalent to four to six outdoor hectares (or more), depending on the crop (e.g. strawberries: 1 indoor acre = 30 outdoor acres)

l No weather-related crop failures due to droughts, floods, pests

l All VF food is grown organically: no herbicides, pesticides or fertilisers

l VF virtually eliminates agricultural runoff by recycling black water

l VF returns farmland to nature, restoring ecosystem functions and services

l VF greatly reduces the incidence of many infectious diseases that are acquired at the agricultural interface

l VF converts black and grey water into potable water by collecting the water of evapotranspiration

l VF adds energy back to the grid via methane generation from composting non-edible parts of plants and animals

l VF dramatically reduces fossil-fuel use (no tractors, ploughs, shipping)

l VF converts abandoned urban properties into food production centres

l VF creates sustainable environments for urban centresl VF creates new employment opportunitiesl We cannot go to the moon, Mars or beyond

without first learning to farm indoors on earthl VF may prove to be useful for integrating into

refugee campsl VF offers the promise of measurable economic

improvement for tropical and subtropical least developed countries (LDCs). If this should prove to be the case, then VF may be a catalyst in helping to reduce (or even reverse) the population growth of LDCs as they adopt urban agriculture as a strategy for sustainable food production.

l VF could reduce the incidence of armed conflict over natural resources such as water and land for agriculture

Advantages of vertical farming

Sour

ce: V

ertic

alfar

m.co

m

Committed to inner city regeneration, Delta is a specialist property fund with a portfolio of sovereign underpinned and other large commercial properties.

Delta’s on-going property portfolio growth is through strategic high-yielding acquisitions and refurbishments, all supported by stringent cost management.

Tel: 27 (0)8780 DELTA / 33582 Fax: 27 (0)86 504 1237Silver Stream Office Park, 10 Muswell Road South, Bryanston

Postnet Suite 210, Prvate Bag X21, Bryanston 2021

www.deltafund.co.za

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