south african property review september 2015

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

PROPERTYR E V I E W

September 2015

South African P

roperty Review

Green and Education

September 2015

PropertyDevelopment

ProgrammeSharpening industry

professionals

SAPOA PresidentMike Deighton

on taking the reigns

Greece:Europe’s limping giant

The

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

Greening mixed-use developmentsSustainably blurring the lines

Cover with Spine sept.indd 1 2015/08/17 1:45 PM

64 SOUTH AFRICAN PROPERTY REVIEW

SAPOA events

E X C E L L E R A T E F A C I L I T Y M A N A G E M E N T . E X C E L L E R A T E B R A N D M A N A G E M E N T . E X C E L L E R A T E U T I L I T I E S M A N A G E M E N T J H I . J H I R E T A I L . J H I A D V I S O R Y . J H I C R E S . E N F O R C E . I N T E R P A R K . S P A R K . S T E R I K L E E N . E R A D I C O . K A T A N G A C H A T T E L S . F R E S H . F I R S T T E C H N I C A L . S Y E N A P P R O P E R T I E S

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PROPERTYR E V I E W

September 2015

2 From the CEO4 From the Editor’s desk6 Industry news10 SAPOA President Mike Deighton12 Legal update16 Planning and development18 Education, training and development19 Green building Greening: the South African

commercial property sector20 Opinion Development follows demand22 Feature Green spaces: an inside look26 Feature Mixed-use developments sustainably blurring the lines28 Property Development Programme44 Feature The miracle on Han River48 Eye on the world Greece56 EcoMobility update57 Prompt payments58 In search of stable markets59 Curbing land invasions60 SAPOA events JHB Women’s Day breakfast64 SAPOA events KZN breakfast meeting66 SAPOA events Gauteng golf day68 SAPOA events DTI workshop69 Fun & quirky Candidly Craig70 What’s on Upcoming events72 Off the wall A level of transparency

ON THE COVERSustainability issues are a priority in curbing global warming and preserving the environment. This issue focuses on green building, education and development

Editor in Chief Neil Gopal Editorial Advisor Jane Padayachee Managing Editor Mark Pettipher Editor Nthabiseng More Copy Editor Ania Rokita Production Manager Dalene van Niekerk

Designers Wade Hunkin, Dirk Knoesen Sales Janine Ramey e: [email protected] Riëtte Stevens e: [email protected] Finance Susan du Toit Contributors Anne Schau� er, Eugenia Makgabo, Lekgolo Mayatula,

Martin Ferguson Photographers Mark Pettipher, Xavier Sauer

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.

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

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

t: +27 (0)11 883 0679 f: +27 (0)11 883 0684

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

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contents


PROPERTYR E V I E W

September 2015

South African P

roperty Review

Green and Education

September 2015

PropertyDevelopment

ProgrammeSharpening industry

professionals

SAPOA PresidentMike Deighton

on taking the reigns

Greece:Europe’s limping giant

The


Greening mixed-use developmentsSustainably blurring the lines

Cover with Spine sept.indd 1 2015/08/17 1:45 PM

Contents_SEP_Rev2_SUBBED.indd 1 2015/08/18 12:42 PM


from the CEO

Perspective on municipal development charges

Municipalities are in the process of drafting by-laws for the raising of development charges

Municipalities are in the process of drafting by-laws for the raising of

development charges. SAPOA accepts the principle that developers should be responsible for the cost of establishing or improving the external infrastructure necessitated by new developments, or more intensified developments. Determining that cost has often been a hit-and-miss affair, either resulting in an under-recovery or a duplication of cost, it is therefore welcome that municipalities are seeking to bring clarity and predictability to the amount of the charges, and to the circumstances in which they will arise.

There should be a clear distinction between a development charge that is a tax and a development charge that is a charge for a municipal service. A municipality may not levy a development tax, but can charge for a service. As a result, development rights that have been conferred on properties prior to the inception of a development charge regime must be exempt from having to pay for existing infrastructure utilisation. More detailed information about this can be found under the legal update.

As awareness of the importance of the preservation of the environment continues to grow, companies are looking for ways to become environmentally friendly, also known

metre as well as higher occupancy levels than less efficient buildings.

The green approach is a real-estate opportunity that truly benefits everyone: tenants, landlords and, of course, the environment. SAPOA believes that by weaving environmentally friendly practices into your business model, you can benefit not only by fulfilling your corporate responsibility, but also by running a more effective and efficient business. Sustainable properties are the future of the real estate industry.

From worsening energy crises to even greater threats of water shortages in parts of South Africa: the country is facing an imminent water crisis and it is only a matter of time before we are faced with a similar situation as Eskom’s load-shedding. However, a water crisis will have a much more crippling effect on the country. In order to bring awareness to this situation, the Minister of Water & Sanitation has partnered with various stakeholders to become water ambassadors – and SAPOA has been elected to become one of these. The property industry has been requested to provide the department with challenges and suggest solutions on how to address each of them. The stance taken by the Minister is that business-as- usual is no longer an option because we stand to run out of water by the year 2020. SAPOA has submitted its challenges and possible solutions to the department, and we hope to shed more light on the issue in due course.

During the month of October, Sandton Central Business District will be transformed into an eco-mobile hub, presenting the notion of a car-free living zone in the future. Property owners and stakeholders in the business district have engaged with the City of Johannesburg, and the final transport management plan was presented. The EcoMobility World Festival will enable Johannesburg to show the world that climate change can be combated with proper decision-making – and people are at the forefront of making a change.

Neil Gopal, CEO

as “going green”. Because many companies are seeing the need to be environmentally responsible and resource-efficient, they are going green because it’s the right thing to do.

But going green and cost savings aren’t as straightforward and simple as turning off the water and lights when not in use. The common objective is that green buildings are designed to reduce the overall impact of the built environment on human health and the natural environment by efficiently using energy, water and other resources as well as reducing waste, pollution and environmental degradation.

The benefits of going green are motivated by a combination of personal and business rewards. The corporate commitment begins with a desire to save the planet, green the work environment and boost morale. What starts as a small effort is quickly adopted by others in the workplace and escalates to a broader, more involved process. South Africa has, over the years, rapidly adopted the green building movement in light of the country’s worsening energy crisis, with rolling power outages now seemingly a part of daily life.

The latest research, conducted by the Investment Property Databank and the Green Building Council of South Africa, points to energy-efficient commercial buildings being better investments. The investigation considered 461 commercial buildings owned by nine funds: Growthpoint Properties, Hyprop Investments, Investec Property Fund, Liberty Properties, Old Mutual Property, Pareto Limited, SA Corporate Real Estate Fund, Delta Property Fund and Vukile Property Fund. It compared the performance of properties with top quartile energy efficiency to the rest of the sample, which represented a large portion of the South African commercial property sector.

The results of the research for the year ending 31 December 2014 indicate that energy-efficient buildings have higher net income growth and capital value per square

CEO_SEP_REV1_SUBBED.indd 2 2015/08/18 12:45 PM

65SOUTH AFRICAN PROPERTY REVIEW

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from the Editor’s desk

Global warming has been a topic discussed at some of the world’s biggest conventions

and international gatherings for the past few decades – but the world’s population is shockingly slow in responding to this impending crisis.

Although some strides have been made and the reduction of carbon emissions and recycling is starting to be a serious deciding factor for big corporates and households alike, we are far from combating climate change.

It has been predicted that South Africa will face severe water shortages by 2020 – only five years from now.

For years climate change has been a topic of discussion but, in general, the citizens of the world still show a predominantly lacklustre attitude when it comes to dealing with environmental issues and taking care of the atmosphere.

In recent weeks, it emerged that South Africa is facing a water crisis – something that should have been anticipated given the country’s less-than-impressive attitude towards conserving water and other natural resources.

It is reported that for a billion people across the globe water, an essential and basic human need, is still scarce.

As the country battles load-shedding, water-shedding is becoming a reality. Driven by resource depletion and contamination,

growing demand and lacking infrastructure, the water crisis is a threat to the future of all South Africans.

In KwaZulu-Natal, for example, dam levels are 20% lower than in 2010, indicating a worrying downward trend. At time of writing, it was reported that the country is facing the worst drought since 1992, and that water levels in the country’s dams have been cut by 12% year-on-year.

The fact that urbanisation is on the rise adds another layer of bleakness to an already pressured water infrastructure. It is a known fact that, besides low rainfall, which affects the availability of water, “stolen” water (which forms about 35% of the country’s supply) adds to an already dreary picture.

The fact that South Africa boasts one of the cleanest water suppliers in Africa and the world does not “hold water” when there isn’t enough of it to go around. We are already using 98% of our available water supplies while reports suggest that as much as 37% of our clean drinking water is being lost through leaking pipes, dripping taps and other infrastructural problems.

With a population growth of 1,3% every year, resources are becoming scarcer while demand is growing. The silver lining is that the government and the private sector agree there is a problem that requires urgent attention and remedies – but the downside

is that this realisation is nothing new, and the government reportedly needs billions to upgrade and add to the existing water infrastructure – money it does not have.

Evidently this crisis will be one that will not be overcome easily. What industries and households can do now is begin to take real action to avoid water wastage at individual level. This is an imperative that needs stringent attention from the private sector and especially the built environment (both commercial and residential), which consumes large quantities of water.

On a lighter note, in this issue we delve into the vision of SAPOA President Mike Deighton as he tells us about his views on the industry and some of the agenda-forming issues affecting the built environment. We also look at issues of property development.

This year’s Property Development Programme held at the University of Cape Town Graduate School of Business was a resounding success, and we look at some of the highlights of this very popular course. We also look at issues of green building and why this is an agenda that should form an integral part of every organisation if sustainability is of any importance for those organisations.

Until next time, Nthabiseng More, Editor

Dwindling water supplies a real threat

South Africa is facing an imminent water crisis in the worst drought in two decades, as some municipalities across the country are battling to meet demand

Ed's Letter_SEP_SUBBED.indd 4 2015/08/17 1:59 PM


SAPOA events

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industry news

A Memorandum of Understanding was entered into between SAPOA and the South African Council for Planners. This non-

binding expression of good faith aims to recognise the need for establishing partnerships between various stakeholders in order to actively engage and explore possible solutions in order to address the challenges faced by the built environment, especially from the planning and development perspective.

The parties made a commitment to a partnership to collaborate on the following issues:

● To establish and actively participate within urban, regional and rural planning forums or forums of such nature

● To develop and present planning and development workshops and training courses

● To partake in the identification of areas of knowledge generation projects

● To collaborate on joint research ventures on matters related to sustainable development, planning and other related topics

● To actively participate in the evaluation of and commenting on knowledge generation projects

● To facilitate greater exposure within the market via each other’s advertising and communication strategies

● To cross-link website and social media content and activities ● To collaborate on investigating various ways of increasing

the skills capacity within the planning profession ● To promote good planning practices and to facilitate

working relationships with various government institutions in order to promote more effective, efficient and coordinated planning system that will encourage development and facilitate infrastructure development

● To actively participate in the spatial transformation agenda in order to realise equitable distribution of resources, and to promote innovative planning techniques in order to advance both rural and urban development

This MoU seeks to strengthen the partnership, for the benefit of the industry as a whole. “In partnering together, we can do much more,” says Neil Gopal, SAPOA Chief Executive Officer.

SAPOA and SACPLAN sign Memorandum of Understanding

Martin Lewis, Chief Executive Officer of the South African Council of Planners, with SAPOA Chief Executive Officer Neil Gopal

Hotel Verde was awarded the highest accolade of

a 6-Star rating by the Green Building Council of South Africa (GBCSA) in the Green Star SA Existing Building Performance tool with 82 points, a first for a hotel in South Africa. The rating received is valid for a period of three years in order to ensure the building is continually operated according to stringent efficiency and sustainability targets.

“The Existing Building Performance rating tool enables the effective measurement of a building’s environmental performance in relation to its operation and management,” says GBCSA CEO Brian Wilkinson. “It provides indicators to ensure

the building’s environmental performance is efficiently maintained or improved

on over time and offers the hotel industry an effective way to benchmark its green credentials.

We want many more hotel owners and operators to follow the example set by Hotel Verde. The hotel management have shown that green innovations

and implementations are not only possible in the tourism industry but provide

an additional dimension to their service offering.”

Hotel Verde has also been awarded a second Leadership in Energy and Environmental Design (LEED) Platinum Green Building Certification by the United States Green Building Council, making it the first hotel globally to achieve a double platinum certification for LEED.

“I quickly realised that my dream to provide something luxurious and sustainable was not only possible but that it was a business model worth sharing, with the potential to change lives and the industry as we know it,” says Mario Delicio, owner of the Hotel Verde at Cape Town Airport and Verde Hotels.

Cape Town hotel embraces green

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industry news

SAPOA, together with the Services SETA, exhibited at

the Student Expo at Greenstone Mall in Johannesburg. This expo is South Africa’s only exhibition designed to provide current and prospective students with the tools to succeed in professional tertiary education and beyond. It has evolved to encompass a breadth of information to facilitate a successful, fulfilling and stress- free student experience.

The expo targets more than 1 000 private and government schools in the country, as well as

top university students. Learners meet with representatives from a wide range of institutions to determine which programme best meets their needs, so they are better equipped to make educated decisions regarding their future.

The exhibition also included High Flyers Educational Speakers Corner, a platform for different industries and tertiary institutions to showcase the courses they offer and to give learners insight into various career opportunities.

SAPOA and Services SETA host student expo in Johannesburg

The town of Botshabelo in the Free State will get its first

major shopping centre in 2016. The 21 000m² Botshabelo Mall, located at the main entrance into town, has been well received by top national retailers. Pick n Pay and Shoprite have committed as anchor tenants, and leading fashion retailers have also signed leases. Restaurants, banks and other stores have confirmed tenancy.

“We believe the mall will provide an up-market, one- stop shopping experience for the Botshabelo community to gather, socialise and shop,” says Alex Phakathi, Fund Manager for the Liberty Property Portfolio.

The developers, STANLIB Direct Property Investments on behalf of the Liberty Property Portfolio, are excited to bring this much-needed service to the local community and are positive that the centre will grow with the support of locals in the area.

“We look forward to creating a shopping centre that will work for everyone and uplift the Botshabelo community while providing a superior shopping experience,” says Phakathi.

The centre is likely to create jobs during the construction phase, which is now under way. Once complete and operational, it should continue to employ a number of people, and help uplift the economy and draw shoppers to the area.

Finlay, the leasing agent for the development, has confirmed that take-up of space has been strong. The centre is currently 80% let to national retailers, and opportunities are available for local traders wishing to open a business in the centre. There are several franchise opportunities available from stores such as Cash Converters and from food outlets such as Roman’s Pizza, Wimpy and Steers.Stanlib.com

New shopping centre for Botshabelo

The Green Building Council of South Africa (GBCSA)

has awarded a 5-Star Green Star rating to 17 Park Lane at Century City, which was developed by Assetmatrix on behalf of Gutsche Investment and Management Company (GIMCO), a property investment company based in Port Elizabeth.

Phil Gutsche of GIMCO says the company wanted to further invest in the property portfolio already owned by GIMCO in Cape Town. “At Park Lane, the Assetmatrix team assimilated what they had learnt on their previous green development and have improved on systems to achieve an even better working environment and an ecologically sound building,” says Gutsche.

“The 5-Star Green Star requirements are stringent, and include evaluation of the building as well as the future management and use of the building,” says Fabio Venturi of the Terramanzi Group.

Paul Truscott, the consulting architect at MLH Architects on 17 Park Lane, says several factors were taken into account when designing this building. “Apart from adhering to the GBCSA’s

guidelines, we also had to bear in mind the Century City Property Owners Association guidelines for the Park Lane precinct, such as low mono-pitch roofs and small building forms,” he says. “To meet these requirements and still use the space available on the four erven, the ‘look’ of smaller buildings was put in place, with glass ‘boxes’ joining them to create the 3 629m² building.”

The building width has been optimised to maximise natural light so less artificial lighting is needed, which in turn reduces energy consumption. The modern building management system monitors and controls energy consumption, and records the usage of building services such as electricity, lighting, air-con and airflow adjustments, water consumption, standby generator, and other electronic installations.

Cyclist facilities have been installed, from secure bicycle parking to showers and locker facilities. Dedicated bays for recharging electrical cars have been provided. The building is situated so as to enable staff to use of the comprehensive public transport system at Century City.+27 (0)21 555 2203; Assetmatrix.co.za

Five-star Green Star rating

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industry news

Now more than ever before, there is a global emphasis

on demanding – and recognising – professional standards across a broad range of spheres. “Best practice” is not a buzzword; it has become an imperative in both the private and public sector.

This is particularly evident in the built environment. With a property sector representing some 70% of global wealth, it’s clear that land, property and construction issues impact on everyone, at all levels.

“In a world where individuals, the business sector and governments increasingly demand higher professional standards and ethics, attaining RICS status in the built environment is the recognised mark of property professionalism,” says TC Chetty, RICS Country Manager for South Africa.

RICS – the Royal Institution of Chartered Surveyors, an independent professional body originally established in the UK by Royal Charter – is consulted by governments around the world for advice on the feasibility of legislation covering some of the biggest issues for business and society, such as climate change, housing provision, asset valuation and property investment vehicles.

Global organisations such as the World Economic Forum, United Nations and the World Bank look to RICS for advice and guidance on a wide range of topics, including international guidelines for land tenure, disaster management and

public-private partnerships. RICS members are active across the entire spectrum of land, construction and real estate activities, from valuers, building surveyors, architects, engineers and commercial property agents to property asset managers, cost consultants, facilities managers, finance and investment professionals, lawyers, environmental experts, quantity surveyors to urban planners, planning and development managers and researchers, among others.

With offices in 27 cities around the world and more than 100 000 qualified members in 146 countries, RICS is the leading qualification when it comes to professional standards in land, property and construction. Since 1868, it has been committed to setting and upholding the highest standards of excellence and integrity, providing impartial, authoritative advice on key issues affecting businesses and society.

“Recognising the significant economic growth in sub-Saharan Africa and the huge potential and demand for expertise across the built environment, RICS has focused attention on this continent,” says Chetty. “We understand that Africa needs to invest unprecedented sums in infrastructure to meet the growing demand of its population and economy. This forms part of the rapid urbanisation taking place in Africa, with key cities expected to experience population growth of 60% compared to 2010 levels.

“Given these challenges, we are seeing increasing demand for expertise in all areas of the built environment and acknowledgement of the importance of the RICS qualification, training, services and standards. This qualification is recognised worldwide, thereby enabling members to work across markets. Our members are able to offer advice across the spectrum, from inception and planning through valuation, project management, construction and maintenance, and ultimately to management, renovation or replacement.”

Professional standards have never been more important

President Jacob Zuma says trade has increased

by 70% between BRICS member countries over the past couple of years, and that South Africa stands to benefit from the BRICS Development Bank.

The President said this when answering questions for written reply at the National Assembly in Cape Town recently.

The President had been asked a question

on progress that has been made among BRICS partners and other developing countries with regard to industrial cooperation and investment.

“The summit also affirmed the importance of BRICS in the global arena,” he said. “BRICS presents an aggregate gross domestic product (GDP) exceeding US$32-trillion. This marks a 60% growth since the formation of the grouping.

South Africa stands to benefit from the BRICS Development Bank

TC Chetty, RICS Country Manager for South Africa

Leading the movement for a greener built

environment in Africa, the Green Building Council of South Africa’s (GBCSA) Annual Convention to be held in Cape Town from 2 to 6 November will provide a programme of top-notch speakers and thought-provoking topics.

The convention will go beyond finding ways of coping with the country’s energy crisis, and help move South Africa towards innovation and future-orientated thinking to “Inspire Better Buildings”. Anyone who wants to effect environmental transformation in Africa’s built environment should be there.

Proudly sponsored by Property Finance at Nedbank Corporate and Investment Banking, and one of the highlights on the property and sustainability calendar, the convention is regarded as the event where experts and decision-makers gather to discuss transformation in the African built environment.

“Buildings are the key to a cleaner and greener future, and delegates are invited to join in working towards a better future,” says Brian Wilkinson, Chief Executive Officer of the GBCSA. “Building green is an opportunity to use resources efficiently and address climate change while creating healthier and more productive environments for people and communities. We need to make a change.”

Robin Lockhart-Ross, Managing Executive of Property Finance at Nedbank Corporate and Investment Banking, says Nedbank continues to support and drive the sustainability agenda. “The convention, now in its eighth year, is a testament to how sustainability in the property sector has moved beyond a buzzword to the right thing to do,” he says. “Green buildings are better buildings, making the theme of the 2015 convention a very fitting one.”

GBCSA’s annual Green Building Convention



industry news

Rede� ne Properties, South Africa’s second-

largest real estate investment trust, has secured its takeover of Fountainhead Property Trust’s property portfolio. The deal received overwhelming approval by Fountainhead unit-holders eligible to vote (Rede� ne as a related party to the transaction was precluded from voting its shares) at a general meeting held in Rosebank.

Rede� ne, which owns Fountainhead’s management company and holds a 66% equity interest in Fountainhead, will acquire all of Fountainhead’s assets (including the entire Fountainhead property portfolio) in exchange for 85 new Rede� ne shares for every 100 Fountainhead units plus the assumption of Fountainhead’s liabilities. Based on Rede� ne’s current share price, the transaction places a value of just under R14-billion on Fountainhead’s property portfolio of 44 properties, of which 70% by value are prime retail assets.

“We are thrilled with the outcome of the meeting, which for us completes a process we began more than three years ago,” said Rede� ne Chief Executive O� cer Andrew Konig. “The acquisition of this portfolio positions us to manage our balance sheet and domestic asset allocation more e� ciently to provide our shareholders with the bene� t of increased direct exposure to retail real estate assets.”

For Fountainhead investors, the transaction will provide exposure to a diverse portfolio of local and international property assets valued at approximately R60-billion, access to a broader funding base and the bene� t of economies of scale and cost savings thanks to synergies between both property portfolios.

For Rede� ne shareholders, the transaction means portfolio growth, quality improvement, structural simpli� cation, and diversi� cation through the added bene� t of increased exposure to retail property.

“We are greatly encouraged by the shareholder support that we received from Rede� ne and Fountainhead’s shareholders, and are excited to be implementing this acquisition,” says Konig. “To a large extent, this completes Rede� ne’s property portfolio restructuring, which began towards the end of 2011.”

Redefi ne seals the deal to acquire Fountainhead’s property portfolio

Andrew Konig, Rede� ne Chief Executive O� cer

“BRICS also accounts for almost 30% of the global GDP, and produces a third of the world’s industrial products and half of the world’s agricultural goods.”

The President said that, further to this progress, trade among the BRICS countries has grown by 70% since 2009. Also, BRICS countries attracted 20,5% of the global total direct investment in 2014, compared to only 16,9% in 2009. The share of the BRICS capital investment on the global market has also increased signi� cantly, the President said, from 9,7% to 14% since 2009.

“BRICS leaders also adopted as one of the key summit outcomes a strategy for the BRICS economic partnership, aimed at further boosting trade and investment ties,” he said.

The President said the Ufa declaration focuses on a number of areas, including global politics, world � nance, economy/trade, cooperation in social and humanitarian spheres as well as among parliaments, business and civil society. He said that the summit also produced exciting developments with relation to the BRICS Development Bank.

“The seventh BRICS Summit in Ufa, Russia, registered substantial progress,” he said. “The key achievement was entry into force of the BRICS � nancial institutions, namely the new Development Bank and the contingency reserve arrangements. Two leading South African bankers have been appointed to the board of the BRICS bank. The next exciting initiative is the establishment of the African regional centre of the bank in Johannesburg. South Africa is proud to host the regional centre, and preparations are at an advanced stage.”

industry news



SAPOA Board

Managing Director of Tongaat Hulett Developments, the property arm of JSE

listed Tongaat Hulett, Michael Deighton says the company is greatly invested in the growth and development of the region, not just South Africa. Deighton is the third SAPOA President to emerge out of Tongaat Hulett.

He is an executive in the company, which is a market leader in six SADC countries and the second-largest employer after governments in Mozambique and Zimbabwe.

“We have extensive agricultural bene� ciation, urban development, rural sustainability and other interests in these countries,” he says.

SAPOADeighton, who has been at Tongaat Hulett for 15 years, is a busy executive, but says that as the 2015/2016 President of SAPOA he is very invested in the organisation. He’s been on the SAPOA Board for a number of years, and is already passionate about research; he looks forward to strengthening the SAPOA research base together with other stakeholders, including industry organisations, government and sponsors. “We have big prospects to improve our research base,” he says.

Deighton values tangible results and mentions education and skills development as some of the most important pillars of his SAPOA presidency. “SAPOA is also about advocacy, especially because there is a lot of legislation a� ecting our industry. We need to start talking about how to advocate for a business environment that is conducive to investment, growth and success in a constructive way,” he says, referring to SAPOA’s recent representation in parliament about the Expropriation Bill.

Deighton also looks forward to SAPOA’s upcoming 50th-anniversary Convention, to be held next year. “We have a lot to work on this year to make sure that this is a spring-board for laying down the foundation for the next 50 years,” he says. “Together with SAPOA Chief Executive O� cer Neil Gopal, we would like to bring together a renewed focus of our strategy as an organisation.”

It is critically important for industry leaders to take part in advocacy organisations such as SAPOA, Deighton says. These organisations are a lifeline to property leaders across the country and the bene� ts that are derived from such collaborations are unmatched.

Property developmentSpeaking on development in South Africa, Deighton, a former Deputy President for the Durban Chamber of Commerce and Industry, says that urban living is a hugely sustainable way of life. “South Africa is quickly evolving and we are moving back to the fundamentals of what makes good cities. I believe this is a global trend,” he says.

This brings us to one of the focus areas Deighton looks forward to: “We have a � rm commitment to establish a better foundation of how as the commercial property sector we can play a more productive part in getting out of our buildings into the areas where we locate where to build liveable modern-day precincts.”

Property development and management is a service, and at the heart of property development is the issue of what the end-user demands and expects. “In the retail property sector, you are able to di� erentiate yourself by the o� erings you have for the customer,” he says. “People are starting to look for sustainability; they want to be part of an

In his words: Mike DeightonAdvocacy and making sure that the commercial property sector has a voice in helping form legislation that is conducive to business is one of his top priorities. Meet SAPOA’s President

By Nthabiseng More

● The Gateway Precinct in Umhlanga is a prominent retail asset in the country. “In terms of concept and development, delivering that precinct was an absolute privilege.”

● Mhlanga Ridge Town Centre, a mixed-use urban development precinct, is one of the biggest and most ambitious developments of its kind in the country. “We sold our � rst site there in June 2001; working with some of the visionaries I dealt with in that period was quite an honour.”

● The V&A Waterfront and Melrose Arch: “These developments have shifted the mind-sets of South Africans with regards to what is appropriate for our society today, and the consideration of whether these mixed-use, high-density precincts are what is most relevant to today’s market needs.”

● Cornubia: “This is undoubtedly the largest mixed-use, mixed-income, fully integrated human settlement, incorporating residential spaces across the board, from subsidy housing to top-end residences, as well as retail, industrial, education and commercial elements.”

Career highlights

The SAPOA Board includes SAPOA Chief Executive Offi cer Neil Gopal; Head of STANLIB Direct Property Investments and Immediate Past President Amelia Beattie; Executive Director at Vukile Property Fund Dr Sedise Moseneke; Managing Director of Halls & Sons James Aling; Director at ProAfrica Properties David Green; Chief Executive Offi cer of Dipula Property Fund Izak Petersen;

Managing Director of Old Mutual Property Peter Levett; Chief Investment Offi cer of Motseng Investment Holdings Ipeleng Mkhari; Vuyani Hako of the Public Investment Corporation; Independent Non-executive Chairman of Fortress Income Fund Limited Jeffrey Zidel; and Managing Director of JHI Properties Nomzamo Radebe, who is also President Elect of SAPOA 2015/2016.

Mike Deighton_Rev1_SUBBED.indd 10 2015/08/18 12:48 PM

SAPOA board


SAPOA Board


environmentally sustainable precinct that o� ers all the conveniences of modern society living. Increasing the shift of real estate beyond just the capital asset into the services related to that asset is a serious future agenda.”

Deighton believes that as a middle-income country we still have a long way to go before reaching our full potential in any area of the economy. “There are plenty of opportunities in real estate development, and although the risks are also worth considering, real estate development will continue to play a pivotal role in economic progress of this country.”

The green agendaSustainability is a global agenda, and

Deighton agrees that green building is one of today’s most pivotal points for developers. Yet there is still the commercial challenge of balancing greening with the pro� t motive.

“Buildings are going to become more green and sustainability is going to become more of a value driver. As a real estate developer one would be ill-advised to want to invest in a precinct that is not green – especially since greening has de� nitively been shown to be more cost-e� ective over the life span of a building,” he says, adding that many tenants are also beginning to demand sustainable

spaces. When one’s building is not green, it could potentially

become “a tainted” asset because of how the green agenda has been

embraced globally.It is imperative that the environment

we are developing is secured for the future use of generations to come – and

what better way is there than consciously � nding ways to preserve our natural resources in sustainability projects? Global warming is a reality and the world has heeded the call to action – something that the commercial property industry also recognises.

“It is currently a matter of an investor deciding how much to invest in order to get future bene� ts,” says Deighton. “Fundamentally, greening is a big value driver for the commercial property sector. The trajectory is clear: sustainability is the future.”

Mike Deighton_Rev1_SUBBED.indd 11 2015/08/18 10:43 AM


legal update

Eugenia Makgabo is an Admitted Attorney of the High Court and Legal Manager at SAPOA

Municipal development chargesWhile some regard a development charge as an additional source of revenue, others simply do not understand the link between the charge and a quantifiable municipal service

Municipalities are in the process of drafting by-laws

for the raising of development charges. That said, municipalities must comply with the law. They have only limited legislative authority for raising revenue, and a careful line has to be drawn between a tax or levy raised for development approval that is unrelated to specific external infrastructural requirements of that development, and a genuine service charge for services. This memorandum will deal with that matter first.

A policy must be expressed in clear, unambiguous terms.

The differences in approach taken by the various municipalities are very marked. Some regard a development charge as an additional source of revenue, without the need to revise all of the other service charges to ensure that there is no double-charging. Others simply do not understand the link between the charge and a quantifiable municipal service.

There is, consequently, a need for a national policy on municipal development charges. That policy needs to be as clear as possible in order to eliminate these conceptual and practical difficulties.

The principleMany municipalities already include revenue, capital items for external infrastructure and maintenance of that infrastructure in their general rates. They also budget for refurbishment of existing outdated infrastructure.

Many property owners seek to develop properties in accordance with existing development rights, and

have no need to seek additional rights. Others require additional rights. In either case, there may or may not be available external infrastructure. That infrastructure may have been paid for by the private sector and may or may not have excess capacity. In many cases, the infrastructure was paid for by the municipality out of revenue raised through rates, and in other cases by loans in the process of being paid for (capital and interest) in the municipal budget. Once again, that infrastructure may or may not have excess capacity.

Any development charge policy must distinguish between these cases, on the principle that a municipality may only levy a development charge where it is required to provide a service at its cost for which it has not yet been paid. To do so, it is necessary to determine a datum point. As at the date when municipalities introduce a development charge dispensation, there exists a network of infrastructure already built and operating. It has been paid for through a combination of funding sources that are not relevant to the issue. What is relevant is whether the development that is being proposed will impose on the municipality a duty to install new infrastructure or upgrade existing infrastructure.

The datum point is, therefore, that the take-up of all existing development rights should be excluded from liability for a development charge.

There should be a very clear distinction between a development charge that is a tax, and a development charge that is a charge for a municipal service. A municipality

may not levy a development tax but can charge for a service. As a result, development rights that were conferred on properties prior to the development charge regime must be exempt from having to pay for existing infrastructure utilisation.

In respect of developers seeking new or additional rights, the issue is whether the grant of those rights will require the municipality to install new or upgraded services. If not, then the imposition of the charge is a tax, not a service charge.

The policy must also take into account the fact that a municipality may not charge developers for the utilisation of services paid for by third parties. If it does so in respect of services paid for by prior developers, it must enact a regime for repaying the developer concerned for the cost of the excess capacity.

SAPOA therefore accepts the principle that developers should be responsible for the cost that municipalities incur to service their developments but has serious misgivings at the manner in which municipalities may use a development charge regime as an indiscriminate revenue-generating mechanism unconnected to the actual servicing of a development.

As a general principle, the role of a development charge is to shift the burden of the payment for infrastructure to service a development from taxpayers to the developer. This principle, however, must take into account the existing considerable burden borne by developers in the development of property. A plethora of charges are already borne

The differences in approach taken by the different

municipalities are very marked.

Some regard a development charge as an

additional source of revenue, without

the need to revise all of the other

service charges to ensure that there

is no double-charging. Others

simply do not understand the

link between the charge and

a quantifiable municipal service

Legal Review_SEP_SUBBED.indd 12 2015/08/17 5:03 PM


legal update

by the development community, and this (together with the red tape associated with obtaining development approvals) makes the development process fraught with risk. Imposing a further upfront cost on developers must make economic sense for developers and cannot delay the development process. The policy reflects a bias towards the interest of taxpayers and local government.

Government must understand there is a delicate balance that must be maintained between profit incentives to a developer and the financial requirements of a municipality. If municipalities are to rely solely on developers for the installation of infrastructure required for a properly functioning municipality, then they are at the mercy of market forces. In other words, municipalities will be required to make a judgment call on how much development will take place (and how quickly) for them to meet their infrastructure requirements. That is simply unsustainable, and a burden a developer cannot bear.

As a result municipalities are going to have to make provision for installation and upgrading of infrastructure through other revenue means as well, and a development charge will only provide a proportion of the cost thereof. It is therefore imperative that the municipal budgeting process be open and accountable in relation to that portion of infrastructure that will be funded through means other than development charges, so that the calculation of development charges does not result in duplicated revenue generation.

Understanding the legislative positionMunicipalities have defined areas of authority, set out in Schedules 4 and 5 of the Constitution, the power of administration of the matters falling within those areas and the power to pass by-laws to enable that administration.

In order to perform their constitutional powers and functions, municipalities are given explicit fiscal powers. Those are contained in section 229(1) of the Constitution:

229: Municipal fiscal powers and functions Subject to subsections (2), (3) and (4), a municipality may impose rates on property and surcharges on fees for services provided by or on behalf of the municipality; and if authorised by national legislation, other taxes, levies and duties appropriate to local government or to the category of local government into which that municipality falls, but no municipality may impose income tax, value-added tax, general sales tax or customs duty.

It is clear from the above that municipalities have the power to raise finances in limited areas only: first, the power to levy rates; second, surcharges on fees for services (such as electricity); and third, taxes, levies or duties appropriate to local government or the category of local government into which that municipality falls. In the case of the third area, such power must specifically derive from national legislation. A municipality is specifically prohibited from levying any income tax, VAT, GST or customs duty.

Fiscal powers of local municipalitiesSection 229(1)(a) of the Constitution read with section 4 of the Municipal Systems Act, 2000, makes it clear that “the affairs of the municipality” may be funded by fees for services, surcharges on fees, rates on property and to the extent authorised by national legislation, other taxes, levies and duties. Those affairs are the exercising of the constitutional powers and functions and duties of the municipality, including its services to its rate-payers, its capital expenditure, the servicing of debt etc.

Rating, and the valuation of property in accordance with a rating policy, is provided for in the Municipal Property Rates Act – and its provisions, together with the provisions for municipal budgeting, are well established. General rates include the cost of various services, and also include raising revenue for capital expenditure on municipal infrastructure (assets). As a result, a municipality establishing a development charges policy must make sure that it is not charging more than once for the provision of a service, or for the installation or upgrade of municipal infrastructure. If it does so, or if the charge is raised in addition to a requirement that the property owner or developer has to install the infrastructure at its own cost and pay the development charge as well, that would also constitute a duplication of payment, and would be unlawful.

It follows therefore, that a development charge cannot merely be an added levy or charge to the existing system of charges and infrastructure cost recovery: it must be a system of charges that relates directly to the actual infrastructure that is being impacted by the particular development, and it must result in that infrastructure being paid for once only.

If that is not done, then the development charge will not constitute a payment for a service – it will be a tax or levy or duty of the kind referred to in section 229(1) of the Constitution. That sort of tax or levy or duty is impermissible, unless it has been authorised by national legislation.

Empowering national legislationSection 75(a) of the Local Government Municipal Systems Act, 2000 states that:“A municipality may: a) Levy and recover fees,

charges or tariffs in respect of any function or service of the municipality; and

b) Recover collection charges and interest on any outstanding amount.

”The Municipal Fiscal Powers and Functions Act, 2007 provides the legislative basis for municipalities charging for municipal services. It defines a municipal service as all of the matters falling under Parts B of Schedules 4 and 5 of the Constitution, and matters assigned to municipalities under sections 9 and 10 of the Municipal Systems Act.

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

If municipalities are to rely solely on developers for the installation of infrastructure required for a properly functioning municipality, then they are at the mercy of market forces



legal update

The substance of the Act is a set of careful provisions providing the circumstances in which and the procedures by which municipal surcharges and taxes can be levied. Suffice to say that a municipality may not impose a levy or introduce a municipal tax without strict compliance with the provisions of the Act.

A municipal service is defined as “a service that a municipality in terms of its powers and functions provides or may provide to or for the benefit of the local community irrespective of whether: a) Such a service is provided,

or to be provided, by the municipality through an internal mechanism contemplated in section 76 or by engaging an external mechanism contemplated in section 76; and

b) Fees, charges or tariffs are levied in respect of such a service or not;”

The critical words are “a service”, “provides or may provide” and “for the benefit of the local community”. In order for a charge to comply with the definition of a charge for a municipal service, there must be a definable service, and it must be provided (present tense) to a definable group of persons. There are critical differences between a municipal service and a municipal asset. To illustrate: municipal roads are municipal assets. Municipal sewerage works are municipal assets. Maintenance and upgrading of municipal roads are municipal services, and the treatment of sewerage is a municipal service. The initial construction of a municipal asset to perform the municipal service is part of the service, but once paid for and built it becomes a municipal asset, not a service.

The construction of a road or a public park was a municipal service when it was constructed, but once built and paid for, it becomes a municipal asset and is no longer a municipal service.

Its ongoing maintenance, upgrade or extension, and the services it provides are municipal services, for which a charge may be levied as a municipal service. Infrastructure long built and paid for is therefore, in SAPOA’s view, not a public service as defined in this legislation, and any charge that does not bear a relationship between the cost of a municipal service and the person being charged takes it out of the category of a charge for a municipal service and into the category of “another tax, levy or duty”.

It is critical therefore that policy should make a distinction, otherwise the distinction between a service – for which a municipality is entitled to charge – and some other form of tax, levy or duty – which it is not empowered to charge – will be lost.

Thus in terms of the above, the law permits a fee or charge for a municipal service in respect of services and functions that municipalities carry out for or on behalf of identifiable persons, and it is axiomatic that there must be a link between the amount paid and the benefit received by those persons.

By-laws and tariffsWith regards to by-laws, a municipality is empowered by section 156(2) of the Constitution to make by-laws for “the effective administration of the matters that it has the right to administer“, i.e. Schedule 4B and 5B matters. Section 156(5) of the Constitution extends such matters to all such matters “reasonably necessary for or incidental to” its functions.

A municipality is therefore only entitled to pass by-laws for section 229 functions or services, and not for taxes, levies and duties that are not authorised by national legislation.

Section 74 of the Systems Act provides the principles for the lawful imposition of fees for municipal services. It follows therefore that in respect of each item appearing in a tariff by-law, the service must be identifiable,

and the fee must reimburse the municipality for the cost of the service, and nothing more.

The national policy documents on municipal development chargesThe National Treasury has produced a draft policy on development charges: the 2011 document is titled Policy Framework for Municipal Development Charges.

The key aspects of the policy framework in that document are the following:

● The charge must be levied against those who benefit from the infrastructure concerned;

● The revenue generated must be used by the municipality for that infrastructure, and there must be transparent accounting;

● The charge should not have the effect of driving spatial or economic policy or planning; and

● The determination, calculation and operation of the charge must be simple and transparent in operation.

These key aspects have direct implications, namely:

● Development charges cannot be charged for infrastructure

that a municipality has no intention of developing.

● The charges cannot include any costs of providing this infrastructure in its tariffs for service delivery – i.e. there cannot be any double-charging.

● A development charge may only be charged once in respect of a development application; i.e. once levied, or once the infrastructure has been installed at the cost of the developer, it cannot be charged for again.

● Development charges apply to external services only, and external services are all of the services external to the boundaries of the development concerned.

A development charge is calculated by reference to the actual cost of related infrastructure. The key elements here are the word “related” – which means the infrastructure impacted by the development concerned – and the fact that the actual cost means the actual cost of external services, i.e. the actual cost of services outside the development.

In the event of a dispute regarding the actual cost, the municipality should provide a third-party determination mechanism that assesses all of the actual infrastructure costs that are associated (or related) to the development concerned.

Subsidies and exemptions and surcharges must comply within a policy framework in each case, and must comply with national legislation, including the Constitution.

The fund into which these charges are paid must be transparently accounted for, and the charges paid in each instant must be utilised within the same infrastructure impact zone as the development concerned. There can be no cross-subsidisation: the charges must be spent in the area that is impacted by the development.

In the event of a dispute regarding the actual cost, the municipality should provide a third-party determination mechanism that assesses all of the actual infrastructure costs that are associated (or related) to the development concerned



legal update

SAPOA was invited by the Department of Public Works

to address its comments on the Expropriation Bill in Parliament at the public hearings.

SAPOA pointed out that the technical di� culties raised with respect to the previous version of the Bill have been largely attended to. In broad terms, the structure of the Bill conforms to international standards, and the department is to be commended for the Bill as it stands. However, the following clauses need to be addressed because the practical implications of not addressing these would be a nightmare.

1 De� nition of courtThe de� nition should restrict the jurisdiction to the High Court where the property is situated. The practical di� culty with the current Bill is that in the case of national government, the seat of the particular minister will be in Pretoria whereas the property expropriated may, for example, be situated in the Western Cape or KwaZulu-Natal. In every instance where the compensation is determined by the court, it is necessary for a court inspection to be held. If summons is issued in the Gauteng High Court in Pretoria, the costs are attendant upon a trial where the witnesses are in the Western Cape or in KwaZulu-Natal in the above example, and where a court inspection is to be held.

2 Magistrates’ court The magistrates presiding over the compensation court were simply not competent to do the determination of compensation. By giving magistrates’ courts jurisdiction to determine compensation, the di� culties that led to the removal of

compensation courts from the Expropriation Act 63 of 1975 are again created. This area of determining compensation is highly technical and requires experienced technical persons – a magistrate should not be saddled with issues if it does not have the technical experience.

3 Jurisdiction of the Magistrates’ Court SAPOA pointed out that simple claims falling within the jurisdiction of a magistrate can be left to a magistrates’ court.

4 Costs of litigation The argument that costs of litigation in a magistrates’ court are less than in the High Court can be met by including clause 21(3)(a) sub-clause (e), to the e� ect that should compensation be determined in an amount that falls within the jurisdiction

of a magistrates’ court, only the costs taxed on the magistrates’ court’s scale may be allowed.

5 Notice of expropriation The Bill does not provide for a separate or di� erent method of expropriation in the case of roads or railways. SAPOA suggested a new section can be added along the following lines:

”Whenever any legislation provides for the expropriation of a road or railway by means of proclamation thereof in the Provincial or Government Gazette, such method of expropriation may be exercised with the necessary changes, subject to the provisions of this Act.”

As far as the wording of clause 8(1) is concerned, the phrase “expropriate a property”, should be amended to read “expropriate property”.

6 Time frames set down in terms of the Bill The period of 60 days from the notice of expropriation (which is allowed for an expropriatee to issue summons with respect to determination of compensation) is oppressively short. It cannot be expected for an expropriatee to have his property valued by a valuer, have the valuation properly analysed and have the claim for

compensation prepared within 60 days of the notice of expropriation having been served. In practice, the period of 60 days is simply impractical and oppressive. A period of six months is recommended, but also with a provision that a court may extend the said period on application.

7 Arbitration What is glaringly absent from section 21, in contra-distinction to section 14 of the Expropriation Act 63 of 1975, is a provision that the parties may agree to have the amount of compensation determined on arbitration. SAPOA pointed out that many advocates provide pro bono work.

8 Compensation SAPOA stated compensation should be based on what the person lost, which would include goodwill, income, etc.

Deputy Minister Jeremy Cronin thanked SAPOA for its valuable contribution in pointing out the practical implications with regards to the implementation of the Bill in its current form, and said he will take under serious consideration all the points up to point 7. Compensation is an area that government is still looking at; it values all comments.

SAPOA addresses its comments in Parliament

The Expropriation Bill public hearings in Parliament

”Whenever any legislation provides for the expropriation of a road or railway by means of proclamation thereof in the Provincial or Government Gazette, such method of expropriation may be exercised with the necessary changes, subject to the provisions of this Act”

Gerrit Grobler in parliament as part of the SAPOA delegation

Legal 2_Rev2_SUBBED.indd 15 2015/08/18 12:49 PM


planning and development



South Africa celebrates its 21st year on the democratic path,

and like the human development milestone, this age is extremely confusing. Between the ages of 18 and 25 you’re no longer a minor, yet you’ve not taken up full adult responsibilities either. This age group is known for its risky behaviour. Dr Je� rey Arnett, a developmental psychologist who devoted much of his career to unpacking the behaviour and development patterns of this group has come up with the name “emerging adults”.

The process of experimenting and trying to � nd sustainable solutions to addressing the challenges created by an era where exclusion was the one of the main priorities to creating economic wealth has created a platform for legislative frameworks to be reviewed, amended and in some instances retracted in their entirety. The complexities that unfold when trying to align legislation with the need to address development challenges, the demand for scarce resources (such as land and water) and the added need to be accessible to allow for real-time economic participation on an international scale can only be described as an overwhelming for a 21-year-old.

The Spatial Planning and Land Use Management Act No. 16 of 2013 (SPLUMA) and the proposed Preservation and Development of Agricultural Land Framework Bill 2013 (PDALF-Bill) can be used to unpack the many challenges that government is faced with in order to change the South African story. In summary, SPLUMA gives municipalities the authority (as per the Constitution) to make decisions on all land use within their area of jurisdiction. But the PDALF-Bill attempts to provide

Taking a page from Mother Nature’s book

the Department of Agriculture, Forestry and Fisheries the authority to make decisions on agricultural zoned land, which in essence is unconstitutional because such land would be managed via the municipality as prescribed in the Constitution and SPLUMA.

It’s quite a challenge to unpack, and although comments have been submitted on the Bill, we await the response from the Department of Agriculture, Forestry and Fisheries. Amid all the work being done at a higher level, down on the ground the wheels keep turning. As Thabo Schussler writes in his article on News24, titled It Took 21 Years For SA Democracy To Reach A Climax, “Ultimately, we all need one thing: South Africa to prosper and be better than how we found it for the generations to come.”

South Africa needs to � nd solutions that will allow it to be economically competitive not only on a national scale but also at an international level. One of the levers that will allow the country to deliver on its potential is the property industry and its various sectors. Take Woolworths, a retail company that has taken the time to assess its business practice and consciously align its growth strategy to focus on developing a sustainable way of growing its business without compromising on its value proposition. This is articulated in its Good Business Journey.

The Woolworths Good Business JourneyThe Good Business Journey launched in April 2007 as a formalisation of sustainability commitments. To systematically drive it across the business, sustainability targets were aligned with individual

scorecards by implementing a comprehensive and systematic sustainability index with more than 200 indicators shared across business units. These indicators touch on eight key focus areas: ethical sourcing, health and wellness, energy, water, waste, sustainable farming, sustainable � shing, transformation, and social development. Woolworths

views the environment as the interconnectedness of systems that span the social, economic and natural environments. It is for this reason that the company adopted a holistic approach in addressing its impacts on these systems, especially ensuring that it imparts a positive in� uence across its value chain.

Retail is a resource-intensive industry, so the Good Business Journey strives to connect the dots across the supply chain. The challenge is how to thrive in a world that sees resources dwindling on a daily basis.

The Woolworths Good Business Journey highlights strategic environmental sustainability

Woolworths has been able to

identify where in its operations it can

infl uence some of the negative impacts

infl icted on the environment through its activities, and how it can move towards a

greener economy by encouraging supply

chain adaptation and resilience

South Africa needs to fi nd solutions that will allow it to be economically competitive not only on a national scale but also at an international level. One of the levers that will allow the country to deliver on its potential is the property industry and its various sectors

Lekgolo Mayatula is SAPOA’s Planning and Development Manager

Town Planning_SEP_REV2_SUBBED.indd 16 2015/08/18 12:18 PM





How do we make the most of the capital that is left for us to meet the needs of a growing population without continuing to exert more pressure on the environment? Through the life cycle analysis research that was conducted, Woolworths has been able to identify where in its operations it can in� uence some of the negative impacts in� icted on the environment through its activities, and how it can move towards a greener economy by encouraging supply chain adaptation and resilience. It’s taken a systems approach to sustainability by acknowledging the interdependence of its activities as a retailer within a global domain. Commitment towards transformation requires a close relationship with players in the supply chain.

One beautiful case study we love to highlight is that of our Farming for the Future programme. This is our � agship sustainable farming programme, which has enabled us to address sustainable agriculture, food security, and transformation within our supply chain. It was endorsed by WWF-SA and adopted by our produce suppliers with the intention of enabling a holistic and scienti� c approach to sustainable farming within our supply chain. Key to Farming for the Future is soil health, water and ecosystem management.

It has also enabled us to fully connect the dots between areas of social development, supply chain transformation and climate resilience by supporting small- and medium-scale enterprises within the farming space. The realisation of this is through our preferential procurement strategy, used primarily to support emerging black-owned enterprises within our supply chain. We use this strategy to remove barriers of entry into our supply chain for small, medium, and black and women-owned enterprises. More than 98% of our primary produce suppliers have quali� ed

to be part of the Farming for the Future programme through stringent third-party audits, at a cost that is carried by us.

De Fynne nursery (also featured in our 2012 Good Business Journey Report), started by Jacki Goliath and Elton Jefthas, is one of our successful partnerships in this regard. The nursery started in a back yard, growing three species of fynbos. Through our enterprise development programme, we provided product identi� cation for an indigenous range to supply to us, and technical, � nancial and business support for the business to grow, not only by increasing the range but making them a part of our supply chain. They also quali� ed to be part of Farming for the Future.

In order to be more sustainable, they started making compostable pots, recycling, using less energy and only watering their crop when needed. Fynne Nursery has evolved to become one of the specialist nurseries that do contract growing for both the horticultural and agricultural sector. Their vision is to own land, and increase production, market share and long-term employment opportunities while focusing on indigenous and water-wise plants and positively caring for our natural resources. This project is one of many we use to drive the message of transforming supply chains and getting small-scale farmers into commercial markets while creating sustainable employment. We’re committed to support the growth of this enterprise through continuous product improvement and business support. That way, De Fynne can continue to give much-needed employment to its community as well.

We believe supporting a shift from being survivalist to sustainable enterprises is at the core of developing small enterprises. Through the balanced enterprise development programme

based on an individual needs analysis, we are able to assist emerging black-owned suppliers to become truly sustainable and growing businesses. Since the adoption of this strategy, we have grown our bene� ciary list within our supply chain, ensuring that they graduate out of the programme to be established suppliers at Woolworths in their own right. The � nancial support provided to these enterprises ranges from soft loans and loan repayment holidays to discounts and shortened payment terms, to allow the business to prioritise liquidity for further growth.

Some of the businesses supply fresh produce, and because of this we have also been able to integrate our Farming for the Future principles as part of a full package of business support to

enable growth not only in commercial relevance in our supply chain but also in resilience by encouraging climate-adaptive methods of farming.

As 2015 sees the culmination of the � rst phase of the strategic sustainability commitments made in 2007, we are re� ecting, re-evaluating and reinforcing these targets to lead us to 2020. This is in keeping with global trends in sustainability, which play a huge part in aligning ourselves against our peers in the industry and driving compliance in legislative requirements especially with issues pertaining to climate change resilience and adaptation, food security, social development and transformation, and basic human rights within supply chains – a topic that’s gaining momentum globally.

We continue to be committed to doing good where possible for the bene� t of our environment. This is the only planet we have. Being one of the biggest retailers in the southern hemisphere, we are in a position to bring change to our industry. Sustainability is core to our values – and it makes business sense to build resilience through our Good Business Journey e� orts.

The lesson to be learnt from this story is that through complex situations and dedicated time, solutions can be found, and these solutions can bene� t everyone involved. Take the two legislative frameworks mentioned above: the fact of the matter is that we need to preserve agricultural land, but there is also a need for development. The question is, how do we do both? How do we � nd a solution that addresses both needs (and many more)? A page from the industry might be a possible solution. Like the many other players in the property sector, taking the time to work in collaboration with government to create a prosperous future is possibly the answer.

We believe supporting a shift from being survivalist to sustainable enterprises is at the core of developing small enterprises. Through the balanced enterprise development programme based on an individual needs analysis, we are able to assist emerging black-owned suppliers to become truly sustainable and growing businesses

Town Planning_SEP_REV2_SUBBED.indd 17 2015/08/18 12:20 PM


education, training and development

In 2009, the SAPOA Bursary Fund, was established with the sole

objective to create a fund in the commercial property industry for scholarships and bursaries. For the 2015 university academic year, SAPOA member companies assisted us in sponsoring 17 students through the SAPOA Bursary Scheme, bringing the total since 2009 to 25.

Who qualifies for funding on the SAPOA Bursary Fund?The beneficiaries of the fund are black people as defined in the B-BBEE Act – Africans, Coloureds and Indians:a) who are citizens of the

Republic of South Africa; orb) who became citizens of the

Republic of South Africa by birth or descent; ori. Before 27 April 1994; orii. On or after 27 April 1994

and who would have been entitled to acquire citizenship by naturalisation prior to that date.

This definition includes black people with disabilities, who may apply for a scholarship, bursary or award and who comply with the conditions as contemplated in paragraph 4(o) of Part 1 of the Ninth Schedule to the Income Tax Act No. 58 of 1962.

SAPOA Bursary Fund Empowerdex Audit (Ownership – Code 100)Earlier this year, the SAPOA Bursary Fund was audited by Empowerdex in terms of the statements of the Codes of Good Practice as gazetted on 11 October 2013, and we are pleased to advise that the Fund qualified 100% in terms of black beneficiaries and 67,97% in terms of black female beneficiaries.

Martin Ferguson is SAPOA’s HR, Education, Training and Development Manager

SAPOA Bursary Fund

How do our members benefit from financially sponsoring the SAPOA Bursary Fund, and what does B-BBEE mean?

● The commercial property industry will have access to qualified graduate property students in the full spectrum of commercial property.

● Member companies will comply with their B-BBEE and Property Charter targets. In terms of the new B-BBEE Codes, our members can qualify for points on their scorecards under statement Code 300 (Skills Development) or statement Code 500 (Socioeconomic Development). The SAPOA Bursary Fund will be in a position to supply a certificate of proof to our members for their scorecards.

● Member contributions are utilised to educate and train people in commercial property.

● Scare skills in commercial property are addressed.

● Members get the opportunity to employ skilled graduates, qualified in property or as mandated.

● The SAPOA Bursary Fund is registered and will issue section 18A Certificates for tax purposes, so participating members will also receive tax rebates.

● The Fund is annually audited by Pricewaterhouse Coopers (PwC).

● As the administrator of the Bursary Fund, SAPOA takes the total administrative management of the Bursary Fund out of the hands of our members, who can then focus on their core business activities.

How does this compare with the Services Seta bursary funding?The Services Seta funding is ring-fenced around qualifications that will benefit only the property management and valuation disciplines in terms of the scope of their demarcation.

The SAPOA Bursary Fund offers bursaries to the entire commercial property industry and built environment professionals, benefiting property management, valuations, legal, financial, investment, economics, real estate, construction, project management, quantity surveying, architecture and town planning.

Funding to the SAPOA Bursary FundTo achieve the SAPOA Bursary Fund objectives, more funds and sponsorships to the SAPOA Bursary Fund are needed. We are thankful to all our current sponsors but more funds are needed to really make an impact on the skills shortages. SAPOA, on behalf of the commercial property industry, makes an appeal to all its member companies to join our current sponsors and make sponsorships and donations to our Bursary Fund. The benefits to your company, the workforce upskilling, financial benefits and B-BBEE scorecards speak for themselves.

For more information, please contact:

Martin FergusonHuman Resources, Education, Training and Development Managert: +27 (0)11 883 0679 e: [email protected]

Request for laptop donationsThe SAPOA Bursary Fund has received numerous requests from tertiary students for assistance with laptops for studies. We would like to employ a “one for all” approach to this request so it benefits all our deserving students. SAPOA appeals to all member companies to assist by donating old laptops that can be refurbished for this use. For more information, please contact Fiona Kahn at [email protected].

For more information, please contact:

Fiona KahnEducation Managert: +27 (0)11 883 0679 e: [email protected]

By participating in the SAPOA Bursary Fund, your company can qualify for benefits on your B-BBEE scorecard

HR_SEP_REV3_SUBBED.indd 18 2015/08/18 12:38 PM


Greening: the South African commercial property sector

Established in 2007, the Green Building Council of South Africa (GBCSA) has

pioneered transformation of the South African property sector by promoting and facilitating environmentally sustainable building practices, from design to construction and operation.

In 2009, the country’s first green certification was awarded by the GBCSA; this year the organisation issued its 100th Green Star certificate. “Achieving 100 certifications indicates the commercial property sector’s commitment to sustainability and resource efficiency in response to growing cities and related challenges to energy infrastructure,” says Brian Wilkinson, CEO of the GBCSA.

This clear signal of a move towards green building is particularly significant as buildings are responsible for about 40% of the world’s end-use energy consumption through their ongoing operation, and are one of the main contributors to climate change.

“There are multiple incentives involved in green building initiatives,” says Wilkinson. “The upward trend in the number of buildings being certified – and those applying for certification – illustrates that awareness and perceptions around environmental issues have changed and evolved. Energy efficiency and the financial rewards notwithstanding, green building is the right thing to do.”

All these savings also have a meaningful impact on the bottom line of the businesses that own and occupy the green buildings. In addition to creating a more sustainable and productive environment, the financial incentives of operating green buildings are also being realised, particularly in the face of South Africa’s water scarcity and increasing energy costs.

“ Green Star certification acknowledges a building’s green credentials based on a standard measurement that is benchmarked,” says Wilkinson. “The GBCSA could not have reached 100 certifications without support and innovation from across the industry.”

He explains that with green building accelerating in South Africa as its extensive benefits are being increasingly recognised, it has become essential to implement a rigorous, standardised system that rates just how green projects are, with tangible results to back up these claims. This is what the GBCSA’s Green Star SA rating tools do. GBCSA developed the Green Star SA rating system and is the official certification body for green building projects.

A Green Star SA rating guarantees that businesses live up to their green building claims. Independent assessors are employed to evaluate submissions and allocate points based on the green measures that have been implemented. Certification is awarded for 4-Star, 5-Star or 6-Star Green Star SA ratings.

Of the first 100 Green Star SA certifications in South Africa, nine were awarded six stars, which represents world leadership in green building.

“The increase in pace of green building in South Africa has been phenomenal,” Wilkinson says. “From a single Green Star SA certification only five years ago to 50 certifications last year and 100 certifications now, the green building movement in South Africa is certainly gaining momentum. The positive impact these buildings are having on our environment is meaningful, and becomes more significant with each green building that is certified. We’d like to congratulate South Africa’s commercial property sector on this landmark achievement, and encourage everyone to continue to create sustainable, green buildings.”

The pace of green building certifications issued by the

Green Building Council of South Africa has been rising rapidly

• Morethan1,8-millionsquaremetresofgreen-certified

space–ortheequivalentof263rugbyfields

• Acombinedannualsavingsof131-millionkilowatt

hoursofelectricity–theequivalentofpowering

9130householdsforayear

• Atotalreductionof176-millionkilogramsofcarbon

emissions–thesameastaking44096carsoffthe

roads,or5000fullBoeing747flightstravelling

fromJohannesburgtoCapeTown

• 171-millionlitresofdrinkingwater,whichequatesto

thedailywaterrequirementsfornearly86-millionpeople

This is being saved by the Green Star-rated buildings.

What is covered by the 100 Green Star SA certification

Thereareseveralratingsystems,includingLEEDfromtheUS,

BREEAMfromtheUKandGreenStarfromAustralia.TheGreen

BuildingCouncilofSouthAfrica(GBCSA)usestheGreenStar

SouthAfricaratingsystem,basedontheAustraliansystem

andcustomisedfortheSouthAfricancontext.

BuildingownerssubmitdocumentationtotheGBCSA

toachieveaGreenStarrating.TheGBCSAthenemploys

independentassessorstoevaluatesubmissionsand

allocatepointsbasedonthegreenmeasuresthat

havebeenimplemented.Certificationisawarded

for4-star,5-staror6-starGreenStarratings.

TheGBCSAdevelopstheGreenStarSAratingtools

toprovideanobjectivemeasurementforgreenbuildings

inSouthAfrica,andtorecogniseandrewardenvironmental

leadershipinthepropertyindustry.

EachGreenStarSAratingtoolreflectsadifferentmarket

sector,includingoffice,retail,multi-unitresidential,publicand

educationbuildings,aswellasothersthatareindevelopment,

suchasinteriorsandexistingbuildingsperformance.

About the Green Star rating system

Brian Wilkinson, CEO of the GBCSA

green building

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opinion

Development follows demandRichard Bennet has been part of SAPOA structures for several years.

He speaks to us about land development

Richard Bennet, an engineer by training, is the Marketing Manager of land

development company iProp and has vast experience in land and property development. He has worked in South Africa and in other parts of Africa, as well as in Saudi Arabia and the United Kingdom.

He joined iProp in 1996 as an engineering manager. “After I joined, I started to guide the sales team in terms of product opportunity and development,” he says. “Since then my role has evolved to ensuring our property solutions are future-proofed.”

He adds that at the very least his team has to forecast land development trends before they happen because the process of reclassification of land up to the time it is released may take up to five years to finalise.

“We de-proclaim mining and farm land and apply for the rights to use that particular non-developable piece of land for developmental purposes such as residential, commercial or retail,” he explains.

Bennet is one of four shareholders and directors of iProp and has been a member of SAPOA committees for several years. He sits on the trade and investment, rates and taxes, and the transport sub-committee.

He is also past Chairman of the Developer’s Forum and the current Chairman of SOJO, a business forum for the south of Jo’burg.

He says South Africa still has a long way to go in terms of commercial development.

Drivers of developmentProperty development is impacted by global trends, Bennet says. “South Africa tends to follow international trends, which are brought on by market demand,” he says. “The other key driver is urbanisation, which is a massive influence on the usage of land simply because the efficiencies in farming, production and mining have left few people needed in those industries. Hence the shift from rural to urban areas, where there is a bigger need for the human resources.”

He explains the recent Gauteng Investment Summit indicated it can be expected that

“The Millennial generation is much more forward-thinking,” he says. “Millennials require different solutions, which then bring about the need for development in the commercial space.”

Bennet adds that in the case of retail spaces, the market is starting to demand far more than shopping spaces – they are now looking for a holistic entertainment experience when they are out of their homes.

“We see a shift coming in retail where stores have to become far more than just a place to transact,” he says. “South Africa currently has a large population contingent that still prefers the traditional shopping experience, but this is a market that is changing dynamically.”

Infrastructure such as roads and power is also a big factor that affects how much development needs to happen in various areas.

Bennet says an issue worth considering is whether office spaces will be in over-supply in the future, given the current trend of flexi-hours for employees, virtual offices, many professionals opting to be consultants instead of full-time employees and an increasing number of people working from home.

“Office spaces could very well be in over-supply but the infrastructure can always evolve into another use,” he says. “This is no new process because it is already happening in parts of the world where office space has been turned into residential space. In essence, the buildings themselves will just find another use.”

Bennet is confident that South Africa is fast catching on to global trends in development but that over-development is not a threat as investor confidence dictates how much building an economy can afford – which is the case with South Africa.

“When developers implement some forward-thinking and forecasting, they are implementing the right type of thinking,” he says. “Before they even begin on any development project, they must make sure it is future-proofed.”

300 000 people would move into Gauteng in the next 12 months. This, Bennet says, is a sign that the property market is not over-supplying.

“Jo’burg is still the city of gold, although in a less literal sense,” he says. “Land that was previously used for mining is now being developed into commercial and residential spaces, which brings with it the opportunity to bring some of the more outlying areas into the city. Therefore, in this instance, inward migration is a massive driver of development.”

The greening movement is another factor that influences the market and drives the need for more brick and mortar infrastructure. People have embraced urban living; they now realise the environment can be preserved even in urban living spaces.

Bennet points out that many organisations are also starting to look for rental spaces with transport hubs in the central business districts in an effort to promote sustainability.

He also says that some of the drivers of commercial property development are influenced by mind-sets. With changes in mind-sets, some business models – such as the credit store – are beginning to fail as the market no longer requires the credit solution. Instead, it is more conscious of interest rates and the high cost of credit.

By Nthabiseng More

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SAPOA events

MASTERING THE ART OF GREEN DEVELOPMENT

Marketing & Communication Manager - Valdy Brinkman: 082 416 4952 | Project Manager - Hannes Dijkstra: 083 702 9217

Suite 80, South Precinct, Zambezi Junction, 522 Breed Street, Montana Park, Pretoria.

Rainbow Junction Development Company (Pty) Ltd | [email protected] | www.rainbowjunction.co.za

SUSTAINABLE DEVELOPMENT FOR A GREENER FUTURE

Rainbow Junction is set to dominate the property development landscape in Pretoria, the Capital City of Tshwane. The entire 140 ha Rainbow Junction development is leveraged as a green economy asset. A private services network links every erf to enable connectivity of green infrastructure, while future-enabling new technologies.

The iconic 10ha, 80 000m2 Green Grid Precinct within Rainbow Junction is predominantly an o� ce and corporate park. The hospitality and conference component provides exhibition and conference spaces to launch and showcase new technologies. Epic green architecture boasts sustainable and renewable energies.

GREEN GRID PRECINCT

2

PTA

MASTERING THE ART OF GREEN DEVELOPMENT

Marketing & Communication Manager - Valdy Brinkman: 082 416 4952 | Project Manager - Hannes Dijkstra: 083 702 9217

Suite 80, South Precinct, Zambezi Junction, 522 Breed Street, Montana Park, Pretoria.

Rainbow Junction Development Company (Pty) Ltd | [email protected] | www.rainbowjunction.co.za

SUSTAINABLE DEVELOPMENT FOR A GREENER FUTURE

Rainbow Junction is set to dominate the property development landscape in Pretoria, the Capital City of Tshwane. The entire 140 ha Rainbow Junction development is leveraged as a green economy asset. A private services network links every erf to enable connectivity of green infrastructure, while future-enabling new technologies.

The iconic 10ha, 80 000m2 Green Grid Precinct within Rainbow Junction is predominantly an o� ce and corporate park. The hospitality and conference component provides exhibition and conference spaces to launch and showcase new technologies. Epic green architecture boasts sustainable and renewable energies.

GREEN GRID PRECINCT

2

PTA

template.indd 65 2015/08/17 3:34 PM


green building

Green spaces: an inside look

There is more to green building than solar panels, basic water conservation and reducing carbon emissions by reducing vehicles on the roads

Green building has several areas of consideration, including materials that

will be used, energy usage and conservation, preserving water and health implications.

In achieving sustainability in this regard, it is not only the bricks and mortar that need to be considered but rather a holistic approach that incorporates green interior elements.

This is exactly what the Green Building Council of South Africa (GBCSA) o� ces, situated in the Old Warehouse building of Black River Park, demonstrated by being awarded a 4-Star Green Star SA rating in the Interiors pilot rating.

The certi� cation is further signi� cant in that it is the � rst Green Star SA Interiors-rated project and was one of eight pilot projects that have applied for certi� cation. The council received their targeted rating after the � rst round of the certi� cation submission – traditionally submissions go through two rounds before achieving their targeted rating.

Businesses need to be fully aware of the e� ect sustainability can have on their o� ce.

Going green is now a high priority for the modern workplace.

The council launched its Interiors rating tool, sponsored by Standard Bank and St Gobain, last year, allowing o� ce occupiers to have their green spaces certi� ed according to Green Star standards, but went through the certi� cation process themselves through an independent assessment process with an external moderator who appointed independent, anonymous assessors. In addition, the Green Building Council of Australia did a peer review of the assessment. The project achieved an overall round one score of 46 points out of the 53 targeted points, equating to a 4-Star rating.

“Our o� ce interiors were designed and speci� ed before the Interiors rating tool was developed – so in many respects we and our consultants had to trust that by using best practices we would align with the eventual rating system,” says GBCSA Chief Executive O� cer Brian Wilkinson.

green building

Green Building Council_REV3_RESUBBED.indd 22 2015/08/17 3:04 PM

advertorial


green building

“It’s also very significant in that we have received the certification after round one – usually submissions go through two rounds before achieving their targeted rating,” adds Manfred Braune, GBCSA Chief Technical Officer. “This is testament to the thoroughness of our consultant accredited professionals, Terramanzi, in compiling the submission. They were very meticulous in assembling the documentation from all the professional team members, who started working on this

There are several issues to consider when constructing a new office, aside from the office interior design. You want to ensure that your workplace is optimised in saving energy by incorporating sustainable features into your building.

● Some interior greening elements: ◆ Some companies overlook the

simple solution to the lighting crisis – windows. Introducing wider windows (and more of them) can reduce energy costs and greatly boost the wellbeing of staff by keeping them connected to the outside world.

◆ For areas where workers have no access to windows and lighting is a necessity, consider motion-detection lighting systems.

● Rain-water harvesting is becoming a necessity. Storing and reusing rainfall is great for the environment while also having the added benefit of reducing cost and the usage of mains water.



green building

All Green Star SA tools make use of 10 categories, including an innovation category, under which specific key criteria are grouped and assessed. This framework is compiled in the technical manual and is used by each and every Green Star SA rating tool:

● Management ● Indoor environment quality ● Energy ● Transport ● Water ● Materials ● Land use and ecology ● Emissions ● Innovation ● Socioeconomic*

In each category, there are a number of credits that have been developed to address different aspects that contribute to the creation of a green building. All targeted credits in each category are assessed, then a score is calculated.* The socioeconomic category was released in pilot format in October 2013. It is currently only applicable to the new building tools and is considered an add- on to the existing categories. It is optional and recognised separately.

The GBCSA framework project in the absence of a technical manual and rating tool being available, and who all worked on the project on a sponsored pro bono basis. The GBCSA thanks the project

team and sponsors for their incredible contribution to this project”.

The GBCSA has recently issued its second Green Star SA Interiors certification.



SAPOA events

STRONG RELATIONSHIPS ARE BUILT ON SOLID FOUNDATIONS

We know the importance of relationships.Working together allows us to understandyour needs so we can off er the best realestate solutions for you. With over 152 yearsof banking experience, this is how we’re moving real estate forward.

They call it Africa. We call it home.

www.standardbank.co.za/cib

Authorised financial services and registered credit provider (NCRCP15).The Standard Bank of South Africa Limited (Reg. No. 1962/000738/06). SBSA 204201 – 04/15Moving Forward is a trademark of The Standard Bank of South Africa Limited

204201 Real Estate NIGERIA Portrait SA A4.indd 1 2015/04/02 1:44 PMtemplate.indd 65 2015/08/17 11:51 AM


green building


Mixed-use developments sustainably blurring the lines

The importance of greening the environment and doing our utmost best

to curb global warming is a trend that is fast catching on.

Developers are often faced with the predicament of the cost of going green versus forecast � nancial bene� ts, and the question of whether green buildings can be pro� table yet sustainable.

Creating a � nancially viable model for a mixed-use development is key but the V&A Waterfront has gone a step further and embraced the green agenda – so much so that most of their hotels are Green Star rated.

Colin Devenish, the Executive Manager of Operations at the V&A Waterfront is responsible for safety, security, cleaning, parking and all technical services. He chairs the V&A Waterfront’s Sustainability Committee. Under his guidance, the Waterfront achieved a Gold rating on the Heritage Environmental Rating System, and received two awards for energy e� ciency – the commercial category for Eskom’s ETA Awards and the Energy

E� ciency Forum Award supported by the City of Cape Town.

Devenish, a quali� ed electrical engineer, is proud of the sustainability projects that the V&A has undertaken. He gave a talk at the recent Property Development Programme about the V&A Waterfront and the level of sustainability it maintains.

He says the committee runs the V&A development with a holistic approach to sustainability. “We look at issues of energy, water, waste, landscaping, carbon footprint and transport, and � nd viable solutions with the aim of preserving the environment.”

He also says the number of people serviced by the V&A Waterfront is substantial – and it’s constantly growing. “To put it in perspective: the V&A is 300 acres of land, the equivalent of 180 rugby � elds,” he says. “One needs to consider that, on a busy day at the Waterfront, the 19 000 people who work there and the total of more than 200 000 visitors rely on the infrastructure of what is, essentially, a large-sized town.”

Cape Town’s V&A Waterfront has embraced the green agenda and is one of the country’s most sustainable mixed-use developments, with numerous modern-day amenities that

South Africans and international visitors are increasingly demanding

● The V&A Waterfront has about 403 000m² of developed bulk made up as follows:

◆ 10 hotels comprising 70 092m² ◆ Retail space comprising 78 619m² ◆ Commercial space comprising

109 958m² ◆ Industrial space comprising

56 847m² ◆ Residential space comprising

68 955m² ● There is also 199 000m² of available

bulk within various precincts around the Waterfront, with 120 000m² of new projects currently under construction

● An additional 38 523m² of bulk is made up of the Waterfront studios, the aquarium, a theatre school, the Caltex garage, the Graduate School of Business, and the Robben Island Museum

● Approximately 80 food and beverage outlets

Quick facts


V&A_REV1_SUBBED.indd 26 2015/08/18 12:23 PM


green buildinggreen building

In an e� ort to reduce carbon footprint,

pedestrian activity is encouraged and

enhanced by the use of:

● Landscaping

● Lighting

● Security

● Signage

● Convenience retail

● Bridges

● Alternate forms of transport –

bicycles, golf carts, trains, tricycles, etc.

● Signage

Public transport usage is also encouraged

by the following interventions:

● IRT/MyCiti trunk and feeder stops

● Golden Arrow bus service

● Sedan taxis – ranking areas

as well as stop-and-drop

● Coach bus operators – extended stay

● Other transport facilities:

◆ Dedicated bicycle lanes and racks

◆ Dedicated motorbike parking

Waste handling

● Central waste handling facility

for wet waste and recycled material

● Waste collection vehicles

● Waste storage facilities

around the precinct

● Bins to be sized correctly

Utilities management

● Focus on consumption and recoveries

● Direct metering and billing as far

as possible: “You pay, you manage”

● Huge focus on reducing

consumption to future-proof the

business against huge water and

electricity increases

Greening interventions

V&A_REV1_SUBBED.indd 27 2015/08/18 12:24 PM


PDP

Informative, intense and crucialThe SAPOA Property Development Programme is a premier programme that prepares property leaders for all facets of property development and attracts a diverse cross-border delegation

By Nthabiseng More

The SAPOA Property Development Programme (PDP) for 2015 was recently

held at the University of Cape Town Graduate School of Business (UCT GSB) in Cape Town, where delegates took part in intensive lectures and a property development project using a live site for two weeks.

The intense programme has been an annual highlight on the commercial property calendar for close to four decades, and is presented jointly by SAPOA and the UCT GSB with the aim of equipping its

delegates with an in-depth understanding of the various aspects of property development. This includes architecture, cost management and feasibility studies, law, investment, marketing and property management.

PDP, a prestigious and highly popular programme, is a stepping-stone for many industry professionals, and one of SAPOA’s � agship programmes.

SAPOA’s HR, Education, Training and Development Manager Martin Ferguson says that, this year, the more than 70 delegates

found themselves getting involved in commercial property sub-� elds that are not necessarily directly linked to their day-to-day occupation – something that leads to broader thinking and exposure to unfamiliar territory.

“The programme is a gem for anyone who intends to be in� uential in the property sphere,” he says. “It is designed to get delegates thinking intensely about their own � eld as well as those of their colleagues in the industry.”

BACK ROW, FROM LEFT Blaize Carlin, Roddy Watson, Gerhard Gerber, David Branco E Silva, Stephan Oliver, Tim Hudson, Evan Sim, Lee Greyvenstein, Michiel Scharrighuisen, Graham Harding, Adam Marcus5th ROW, FROM LEFT Regardt Scharrighuisen, Faldi Samaai , Sebastian Naidoo, Shougan Govender, Jonathan Shutte, Craig Hall, Dennis Farrell, Ndivhuwo Opy Ramaremisa, Corne Roos, Wessel Botes, Stephen Lawson4th ROW, FROM LEFT Soelyman Arendse, Abby Ngonyama, Sindiso Dandala, Thabu Roodt, Tebogo Mokgata, John Nsibirwa, Nicky Ramkisson, Mike Sithole, Danielle Hattingh, Deon Moolman, Moono Siamuzyulu, Mitesh Gihwala3rd ROW, FROM LEFT David Mutemachani, Ileni Gebhardt, Japhta Maboko, Unathi Ntiskana Hoyana, Gerhard Saayman, Wehan Badenhorst, Reyaaz Rawoot, Jasper Mnukwa, Puneet Dullabh, Imke O’Grady, Erick Senekal, Philippa Uraib, Jess Cleland2nd ROW, FROM LEFT Ping Han, Thami Mthetwa, Nicolette Carelse, Anthony Barnes, Samantha Stewart, Zandile Makhoba, Zanele Zulu, Vanessa Perfect, Margaret Ramoshu, Mpinane Ntaote, Riaan Munnik, Josh Kaplan, Mykola Welihockyj, Jarred Pincus, Phathu Mashamba, Stephanie SelfeFRONT ROW, FROM LEFT Yanda Tolobisa, Junaid Koorowlay, Micarla Andrews, Nthabiseng Ramoipane, Rina Gerber, Busi Nzo, Martin Ferguson, Henry Chitsulo, Norman Gri� tus, Shireen Brown, Megan Davids, Scott Jones, Renette Naidoo (Photograph by Akkersdyk Studio)

PDP 1,2,3 of 4_SUBBED.indd 28 2015/08/18 12:19 PM


PDP

“SAPOA is pleased that the programme has grown over the years,” says SAPOA Chief Executive O� cer Neil Gopal. “It has developed into a well-known programme, which is now recognised as a brand on its own in the property industry. This programme is in high demand among senior and executive members of the industry.

The PDP has become the cornerstone of the commercial property industry’s most progressive and innovative leaders’ careers.”

Gopal assures future delegates that the PDP committee always ensures the programme is kept up to date, and delegates receive what they signed up for – and this year’s delegates agree.

“As a professional body, SAPOA focuses on the interests of the sector in South Africa and internationally,” Gopal says. “Programmes such as the PDP form part of SAPOA’s prioritised educational o� ering.”

As is usually the case, this year’s programme was attended by a diverse group of delegates from organisations in South Africa, India, Egypt and SADC.

From SAPOA

UCT GSB is equally proud of the PDP and Kumeshnee West, Acting Director for Executive Education at the GSB believes that “business as usual” is no longer the way to achieve sustainable success.

“Managers need an expanded skills set to create new models of business, challenge taken-for-granted assumptions and practices

and cultivate an ability to draw from a full spectrum of disciplines,” she says. “We see ourselves as enablers of these new ways of thinking and behaving. We take a four-pronged approach to excellence that combines academic rigour, societal relevance, innovation in teaching and thought leadership to transform students.”

She says the Graduate School of Business takes pride in collaborating with corporate clients such as SAPOA to customize cutting edge courses that incorporate the four-pronged values approach to attract the best in the industry and equip them to thrive in the context of high degrees of uncertainty, complexity and inequality.

The Graduate School of Business

Standard Bank has been the main sponsor of the programme for the past � ve years. Speaking on behalf of the bank, Gary Garrett, Head of Real Estate Finance, says, “Our ability to tap into vast resources and expertise within the Standard Bank Group enables us to provide seamless access to specialist areas within the

organisation and across the globe. This facilitates the professional delivery of comprehensive funding solutions, positioning our clients at the forefront of their real estate-related initiatives.”

Garrett emphasises the value of the PDP and its lifelong bene� ts to delegates.

“The programme attracts outstanding participants and

it is a fantastic achievement for any of the delegates to have been selected,” he says. “Learnings and experiences of the two-week programme will be invaluable as participants move forward in their career.”

He adds that experiences shared by the teams and the friendships that are built on the programme are its true legacies.

The sponsor

Partnering with



PDP

Talking property developmentPremier PDP lectures are presented by renowned property leaders from various sectors. Here is a glimpse of some of the topics that were under discussion at this year’s programme

By Nthabiseng More

PDP lectures are a highlight of the course as some leading property

industry heavyweights present to delegates on a variety of industry-related issues. The intensive lectures are also an opportunity for delegates to tap into other sub-sectors within the property industry.

EconomicsProfessor Francois Viruly, a well-known South African property economist and a professor in property economics, property investment and property � nance has more than 20 years of experience in the analysis of the South African property market. He was one of the main speakers and a member of the judging panel at the end of this year’s PDP programme.

He lectures in urban economics, property development and portfolio management at the School of Construction Economics and Management at UCT, and he spoke to PDP delegates about the principles of property economics and mega-urban development projects in sub-Saharan Africa.

According to Professor Viruly, mega-urban development projects in sub-Saharan Africa require large infrastructural commitments, take many years to complete, are often undertaken by more than one developer, tend to incorporate public-private sector interventions and in� uence the future shape of the metropolitan area, among other aspects.

He further delved into the risks and associated opportunities in these types of projects, mentioning that the risks include reliance on public sector support, funding requirements, and market, property cycle, marketing and infrastructural risks.

He however emphasised that the opportunities that mega-urban development projects represent are paramount. These include the creation of economies of scale and large funding opportunities.

Contemporary architectureMarc Grief, a German professor of planning and construction management in the Department of Architecture at the University of Applied Sciences in Mainz, was also a guest lecturer.

He spoke about contemporary architecture in Europe, with a focus on o� ce buildings (low-rise and high-rise), residential, sacred and exhibition buildings (museums and zoos), among others.

Grief spoke about the uniformity of materials used in these buildings, their integration into existing building stock and their sculptural appearance.

Guy Nicolson, who operates a specialist environmental and related land use planning consulting � rm in Kloof in KwaZulu-Natal addressed the issues of property and the environment.

Nicolson spoke about ways of e� ectively integrating environmental considerations into the property development process, preserving natural resources and the overall milieu in which we live.

He said the environment is “a prime determinant of our overall quality of life, and indeed our long-term survival”.

Richard Thompson guides delegates through the group dynamics session



PDP

He guided delegates through ways of planning, developing and using the environment in responsible development – and in the delegates’ own ultimate success

LegislationPortia Tau-Sekati is the consultant Chief Executive Officer of The Property Sector Charter Council, involved in developing the strategy and programmes that become an enabler for the stakeholders of the property sector to achieve transformation. Tau-Sekati helped delegates to better understand B-BBEE, the Property Sector Code and Property Sector Charter Council, Revised Codes and Sector Codes, the B-BBEE Amendment Act and Revised Codes of Good Practice.

She told delegates that the “B-BBEE policy is not a moral initiative to address the imbalances of the past” but rather a “pragmatic growth strategy that aims to realise the country’s full economic growth potential – because no economy can grow by excluding any part of its people as this threatens sustainability.”

TransportationSteve Sutcliffe from Trafficon, a specialist practice that offers transportation planning and traffic engineering, focused on various transportation issues.

He spoke about transportation’s current realities and future trends, with a specific focus on public transportation, sustainable development and teamwork.

Sutcliffe analysed transportation systems in South Africa and other parts of the world. He noted that transportation networks are pivotal – they increase accessibility, which in turn provides economic opportunities.

He emphasises that sustainable developments provide an environment to ease movement and access for vehicles and pedestrians, safely and securely.

He says developers should identify lead projects and phasing to ensure a logical roll-out through the lifespan of the development, keeping public transport in mind because it permits flexible development as a result of the inherent spare capacity.

Many other prominent speakers gave lectures on industry-related subjects, much to the commendation of delegates.

SAPOA’S Martin Ferguson with Standard Bank’s Ian Raeburn



SAPOA events



PDP

Awards and certifi cation ceremonyThe Property Development Programme for 2015 ended on high note at the V&A Waterfront in Cape TownBy Nthabiseng More

An awards and certi� cation ceremony that was attended by SAPOA Chief Executive

O� cer Neil Gopal and SAPOA President Mike Deighton saw delegates of the course receive their certi� cation and other accolades.

Speaking of the programme that has been running for 37 years, Tony Gebhardt, Chairman of the PDP committee, talked about Chief Albert Luthuli and his love of education. “He was a man of principle and he didn’t fall short of the spirit of carpe diem – seize the day. He took every opportunity that he was presented with,” said Gebhardt, adding that Luthuli was commemorated at the V&A Waterfront.

He encouraged delegates to adopt the Chief’s spirit and embrace the bene� ts that PDP would a� ord them. He also noted the PDP is a big opportunity for networking with other industry in� uencers. “We want to create a networking buzz that lasts for the rest of your career,” he said.

Deighton felt privileged to be at the closure of the PDP. He mentioned that this programme is an institution; an event in the property calendar that’s worth celebrating.

“There are several things that one needs to do at the end of such an intense programme: celebrate the new friends you have made, celebrate that you have been challenged and given the opportunity to do new things,” Deighton said, addressing the delegates. “You should also allow yourself time to re� ect a little – one must ponder on the value that the PDP creates.”

The task, he said, is to look at how growth in asset value continues to escalate as a result of leadership.

“PDP is a � agship course that the majority of South African property industry leaders have been exposed to,” he said.

In the commercial property industry, skills are very scarce, and the delegates who attended the PDP represent that much-needed skill and diversity, Deighton said, adding that diversity is key to every economy because it helps to build value. “We want to see women, younger people and people from various walks of life in this industry,” he said. “We live in a very scary world, which is interconnected and ambitious, and some of the skills learnt at a place like PDP are really what will assist in driving you as an individual in the private property space. We are all interconnected and related.”

UCT lecturer Professor Francois Viruly explained that part of his duties is to make sure that the integrity of the course is maintained. He emphasised that this is a wonderful course, which sees the industry becoming a community. “This is about people with the experience who are willing to share it with those who are upcoming. Every year it is a delight to be with the panel of the judges,” he said, explaining his role as one of the research project judges.

“As judges, we learn every year,” he said. “Education throughout South Africa is a community responsibility – and a good sector or industry acts like a community.”

Tony Gebhardt of Hamlyn Gebhardt Quantity Surveyors

Ian Raeburn represented Standard Bank

Professor Francois Viruly of Viruly Consulting (Pty) Ltd SAPOA Chief Executive O� cer Neil Gopal with Mike Deighton

SAPOA President Mike Deighton



PDP

PDP class of 2015After a rigorous week of training, delegates were awarded

with accolades for their participation in the PDP

By Martin Ferguson Photographs by Mark Pettipher

The prestigious 2015 Property Development Programme

(PDP) ran from 19 July until 31 July. As in previous years, this course was a huge success.

The programme’s � rst week of intensive lectures focused on the full property development cycle. The culmination of the course is the application of the principles learnt during the � rst theoretical week to a practical property development project in or around Cape Town.

The 2015 PDP project required delegates to consider a potential development at Premier Fish Building, Quay 7 in the East Key Precinct, located at the V&A Waterfront in Cape Town. In undertaking the project, delegates were requested to

consider that they were preparing a development proposal for V&A Waterfront (Pty) Ltd.

The judging process of the PDP is a rigorous one. It extends over two days and involves nine judges who are commercial property industry and built environment experts.

This year, the judging panel considered and assessed the work produced by eight syndicates. The site located at the V&A Waterfront was technically and � nancially challenging, and o� ered delegates an opportunity to apply their property development skills to a prime Cape Town site.

Over the years, the PDP has developed a sophisticated assessment framework, which includes a clearly de� ned set of criteria. These include:

● Project marketability ● Urban design and

architectural design ● The legal aspects

of the project ● Financial feasibility

and funding ● Project documentation

In addition, consideration is given to the quality of the syndicate presentation and the ability of delegates to respond to oral questions.

Although the selection of the winning project is determined within this strict framework,

Over the years, the

PDP has developed

a sophisticated

assessment

framework,

which includes

a clearly defi ned

set of criteria

PDP delegates

Johan Marnitz, Elsabeth Marnitz and Norman Gri� ths Mike Deighton, Tessa Deighton and Neil Gopal

Professor Francois Viruly

PDP Delegates_SUBBED.indd 35 2015/08/18 12:24 PM


PDP

a

Asset Management

Property Management

elo

Facility Management

Marketing of Dev

Finance

Design

Finance

Development Phase

Management

The Development ProcessThe Development Process

Development Contract

TVMValuations

Feasibility Methodology

FinanceQS

Feasibility Study

3

4

5

attempting to characterise the criteria of a winning project is difficult. The winning teams do not necessarily have the highest quality architectural drawings or the most sophisticated cash flow. Instead, they tend to reflect an original concept, which is well connected with its socioeconomic and environmental context. This is balanced with well-thought-through financial, planning and legal solutions that reduce risks and enhance returns. It is also useful to turn to the following definition of an effective property development feasibility:

“A real estate project is ‘feasible’ when the real estate analyst determines that there is a reasonable likelihood

of satisfying explicit objectives when a selected course of action is tested for fit to a context of specific constraints and limited resources“ (Graaskamp, 2001).

The primary objective of the judging panel is to play an integral role in the overall PDP learning experience and to offer an opportunity for the high quality of work that the PDP syndicates produce over a matter of a few days.

The top three scoring teams were awarded their prizes at a certification ceremony that was sponsored by Standard Bank on the evening of the last day of the course. The event was held at the Clock Tower Building at the V&A Waterfront.




PDP

cep

l

n

IDEA

Group Dynamics

Land looking for concept

Concept looking for land

Macro

Property

Africa

Property law

Planning law

Retail

Office

Residential

Other

The Concept

Inception of the idea

Economics

Markets

Transport

EIA

Fundamentals of Development

Inception of the idea

Urban Design

Architecture &Design

Legal Aspects

Planning & Urban Design

1

2

1C

1B

1B

1B

3A

VICTORIA BASIN

PREMIER FISHING, QUAY 7

ATLANTIC OCEAN

BEACH ROAD




PDP

FROM LEFT Riaan Munnik, Nthabiseng Ramoipane, PDP Committee Chair Tony Gebhardt, John Nsibirwa, Frederick Senekal, Mpinane Ntaote, Blaize Carlin, Tim Hudson, Zanele Zulu, Deon Moolman and SAPOA’s Martin Ferguson

FROM LEFT Carolyn Helfenstein, sponsor Adriaan Mentz, Rajesperi Naidoo, Gerhard Gerber, Jasper Mnukwa, Stephan Olivier, Nicolette Carelse, Corne Roos, Yanda Tolobisa, Dennis Farrell and Reyaaz Rawoot

FROM LEFT Abby Ngonyama, Adam Marcus, Thabu Roodt, Joshua Kaplan, David Mutemachani, Stephanie Selfe, Opy Ramaremisa, Moono Siamuzyulu, Tebogo Mokgata and sponsor Graeme Greenwood

The overall winning team

The third-placed team

The second-placed team



PDP

The winning teams1. The overall winning team

was Group 3, called Atlantic Arch Consortium. The first prize was sponsored by Tony Gebhardt from Hamlyn Gebhardt & Associates. The team members were: Carlin Blaize, Tim Hudson, Deon Moolman, Riaan Munnik, John Nsibirwa, Mpinane Ntaote, Nthabiseng Ramoipane, Frederick Senekal and Zanele Zulu.

2. The second winning team was Group 5, called Premier at Quay 7. Their prizes were sponsored by Stauch Vorster Architects, who were represented by Adriaan Mentz. The team members were: Reyaaz Rawoot, Nicolette Carlse, Dennis Farrell, Gerhard Gerber, Rajesperi Naidoo, Carolyn Helfenstein, Stephan Olivier, Corne Roos, Jasper Mnukwa and Yanda Tolobisa.

3. The third winning team was Group 8, who called themselves The East Pier. Their prizes were sponsored by AECOM. AECOM was represented by Graeme Greenwood. The team members were: Joshua Kaplan, Adam Marcus, Tebogo Mokgata, David Mutemachani, Abby Ngonyama, Opy Ramaremisa, Thabu Roodt, Stephanie Selfe and Moono Siamuzyulu.

All the above would not have been possible without the following:

● The Executive Education team at the Graduate School of Business at the University of Cape Town.

● The PDP Committee, who plans the PDP months in advance, supported by the SAPOA Education Department and the SAPOA Marketing Department.

● Our main sponsor Standard Bank, a sponsor of the programme since 2010.

● Our prize sponsors as mentioned above.

● The lecturers who are always willing to contribute to the success of the PDP.

● The judges who work through the night to evaluate and assess the various projects.

● Martin Kearns, Development Executive from the V&A Waterfront, who provided an interesting, challenging site for the PDP project as well as the delegate lunch sponsored during the site visit.

● Professor Francois Viruly, who is responsible for the academic content of the programme.

● Neil Schwartz for preparing the site information.

● Derick Henstra and Renske Haller of DHK Architects for the architectural support by Juerg Thuli, Carolyn Helfenstein and Ruan Mills.

SAPOA wishes to thank all stakeholders for their support and sterling efforts to make the PDP a success year after year.

SAPOA and the Graduate School of Business are proud to have Standard Bank as the main sponsor of the PDP, a programme of the highest quality, which attracts outstanding participants and supports the development of professionals in the commercial property industry. The experiences shared and friendships formed are the true legacies of the PDP. The two-week programme has proven invaluable to delegates as they move forward in their career.

PDP



PDP

STANDING, FROM LEFT Michiel Scharrighuisen, Samantha Stewart, Craig Hall, Lee Greyvenstein and Sindiso Dandala SEATED, FROM LEFT Yanda Tolobisa, Corne Roos, Roderick Watson and Unathi Hoyanaw

David Mutemachani, David Stoll, Martin Kearns and Riaan Munnik

Zandile MakhobaPuneet Dullabh, Japhta Maboko and Soelyman Arendse

SAPOA Western Cape’s Nazeem Kahn and Refqah Fataar Ho-Yee

Adriaan Mentz and Ian Raeburn

Mike Sithole, Opy Ramaremisa, Moono Siamuzyulu, John Nsibirwa, Stephan Olivier and Thami Mthetwa



PDP

Henry Chitsulo with Martin Ferguson

John Nsibirwa, Mogamat Faldi Samaai and Micarla Andrews

Scott Jones, Rina Gerber, Soelyman Arendse and Junaid Koorowlay

Abby Ngonyama, Tebogo Mokgata and Margaret Ramoshu

Mpinane Ntaote and Phathu Mashamba

PDP



SAPOA events

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SAPOA events

2015/07/31 10:39 AMtemplate.indd 65 2015/08/17 12:01 PM


feature

The miracle on Han RiverFrom underdog to one of Asia’s most affluent countries: how South Korea brought about the economic boom of the century

South Korea’s heroic economic ascent over the last five decades has been remarkable.

Fifty years ago, the country’s per capita income was on par with some of Africa’s poorest countries; today, it boasts a per capita income of R354 880 (2014). Moreover, in 2010, it became the first Asian country and the first non-G7 member to host a G-20 summit.

Given the country’s extraordinary success, it’s tempting to try to distil the secrets of its development model and implement this in other impoverished countries. But South Korea’s economic boom was the result of more than just strategic reforms: a unique set of historical circumstances contributed to its phenomenal turnaround. Long before the devastation of the Korean War (between 1945 and 1953), South Korea had the building blocks for growth: an educated population, property rights, land reform that boosted productivity, and the institution of modern capitalism. In 1960, after the war, authoritarian president Park Chung-hee (father of current president Park Geun-hye) embarked on a set of radical policy reforms, including his famous five-year plans, in a quest to rebuild the country. The reforms encouraged domestic savings and, most importantly, opened the economy up to international trade. It was this combination of political authoritarianism – criticised by many for its human-rights abuses – and extensive state intervention in the economy that characterised the country’s initial rapid growth.

Another major contributing factor was the introduction of chaebols, a South Korean form of business conglomerate. In the 1970s and 1980s, Seoul, the capital, channelled huge amounts of capital through subsidies and low-interest-rate loans into trusted, family-led chaebols. These firms all received preferential treatment from the government, and enjoyed

By Michelle Marais

t Population 51 302 044 (2014 est.)t Capital and largest city Seoult Currency South Korean won (₩) t Total area 100 210km²t GDP growth 0,3% (Q2 2015)t Key industries Electronics, telecommunications, automobile production, chemicals, ship-building, steel

Key facts

South Korea_SUBBED.indd 44 2015/08/17 3:42 PM

feature

Another major contributing factor to the country’s rapid growth was the introduction of chaebols, a South Korean form of business conglomerate. In the 1970s and 1980s, Seoul, the capital, channelled huge amounts of capital through subsidies and low-interest-rate loans into trusted, family-led chaebols

In 2004, South Korea opened a high-speed rail line called Korea Train Express (KTX), which was based on the French TGV (Train à Grande Vitesse or “high-speed train”). The KTX runs from Seoul to Pusan and Seoul to Mokpo, and transports more than 100 000 people daily.

Did you know?




feature

trade preferences and monopoly rights, among other indulgences. This enabled the chaebols – which today include brands such as Samsung, LG, Hyundai and Lotte – to become world-renowned business empires.

However successful, this strategy has its drawbacks. Because of the chaebols’ ongoing dominance, regulators who seek to make South Korea’s markets more competitive have faced various challenges. However, Seoul has been able to counteract the economic growth deterrence by establishing a great track record as an open economy. The city is a particularly enthusiastic negotiator of free-trade agreements, including with the European Union and the US.

In 1997, South Korea signed the World Trade Organisation’s Agreement on Government Procurement, bringing greater transparency to public procurement and creating new opportunities for foreign firms. This also resulted in the removal of many of the policies that in the past deterred foreign entry into the market.

Despite all of South Korea’s progress in the past, recent years have not been uniformly easy. The country’s economy suffered a great deal during the 1997 and 1998 Asian financial crisis, which exposed a weakly regulated financial system. However, its ability to adapt – undoubtedly its best quality – saw South Korea bounce back when the government (under Kim Dae-jung) responded by shutting down ill-managed financial institutions, forcing the resolution of bankrupt companies, and strengthening previously inept financial regulation.

And these changes paid off: according to the World Economic Forum’s Global Competitiveness Index, South Korea’s

financial institutions and business practices have converged on global norms.

There are, however, growing concerns regarding the country’s ageing labour force. From 1963 to 1997, when South Korea was growing at its fastest, it benefited not only from the general openness of the world economy but also from a rapid expansion of its labour force, combined with a major increase in the education level of the workforce as a whole. These favourable demographics are now reversing. In 2010, South Korea’s “core productive population” – citizens aged between 25 and 49 – fell for the first time in decades. If this downward trend continues, it will put significant new burdens on South Korea’s healthcare and pension systems, forcing the government to once again embark on new set of policy reforms, and possibly rethinking its restrictive immigration policies.

This year also marks the weakest economic growth in six years, which is an indication of sluggish domestic consumption and increasing deflationary pressure. Although the central bank had forecast the economy would pick up in the first few months of the year, recent data shows no clear signs of a strong recovery.

Regardless of this plateau in growth, global investors still consider South Korea’s economy as one with well-regulated debt and equity markets – and far more transparent than that of its neighbour, China.

From a country that relied heavily on US-funded aid just 60 years ago to Asia’s fourth-largest economy, South Korea’s transformation has been nothing short of spectacular. As the tiger slumbers, the world is holding its breath, eagerly awaiting its next move.

The country’s economy suffered a great deal

during the 1997 and 1998 Asian financial crisis,

which exposed a weakly regulated financial system. However, its ability to adapt

– undoubtedly its best quality – saw South Korea

bounce back when the government (under Kim Dae-jung) responded by

shutting down ill-managed financial institutions,

forcing the resolution of bankrupt companies, and strengthening previously inept financial regulation

ABOVE Seoul, South Korea (© Emmanuel Dyan)

ABOVE RIGHT Busan, Republic of Korea’s busy

port city (© United Nations)

South Korea have the second-best education system in the world. The country’s students rank number two in the world when it comes to reading, and they have a 93% graduation rate. (The US has a rate of 77%.)

Did you know?



SAPOA events

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Greece is one of the world’s most popular destinations, with ancient and modern

attractions such as museums, archaeological sites and cities that have inspired modern education and culture around the world. It is home to more than a dozen World Heritage sites. The southernmost country on the European mainland, Greece is highly urban, with about 70% of its population living in urban areas.

Greeks can expect to live long, with a life expectancy estimated to be around 80 years. The country is often called the birthplace of Western civilisation. It retains ancient landmarks, including the 5th-century-BC Acropolis citadel and Parthenon temple in Athens.

GeographyThe most mountainous country in Europe, Greece is about the same size as England or New York state, with more than 3 000 islands

▼ Chief of state President Prokopis Pavlopoulos (since 13 March 2015)

▼ Head of government Prime Minister Alexios Tsipras (since 26 January 2015)

▼ Cabinet The president, on recommendation of the Prime Minister, appoints the Cabinet ▼ Governance Presidential parliamentary democracy▼ Capital of Greece Athens▼ Other major cities Thessaloniki, Patras and Heraklion▼ Languages Greek (o� cial) 99%, the other 1% includes English and French▼ Currency Euro (€)▼ Climate Mediterranean▼ Population 1 120 415 Greek 93%;

other (foreign citizens) 7% (2001 census)

Key facts

The highest mountain in Greece is Mount Olympus. It has more than 50 peaks, with the highest reaching the height of 2 917m.

Did you know?

Greece has most recently been in the news for its fi nancial woes – but there is more to

the original home of the Olympics than its debt crisis

By Merisca Scott scattered around the eastern Mediterranean. Only about 200 of these islands are inhabited.

The Greek mainland shares land borders with Albania, the Former Yugoslav Republic of Macedonia, Bulgaria and Turkey.

The Greek islands are generally subdivided into two groups, according to location: the Lonian Islands on the west of the mainland, and the Aegean to the east and south.

The peopleAthens is Greece’s largest city with, about 25% of all Greeks residing there. It is served by Piraeus, the country’s main port. A woman in Greece can expect to have 1,4 children.

As of 1 January 2015, the population of Greece was estimated to be 11 120 415 people. This is an increase of 0,08% (9 222 people) compared to the population in 2014. This means that more people died in Greece

The Hellenic Republic visited

The


THIS IMAGE Ano Symi is the main town of the island of Symi, northwest of the island of Rhodes in Greece. The ship-building and sponge industries were substantial on the island. Symi's main industry is now tourism (© Anita/Flickr.com)

Eye On The World Greece_SUBBED.indd 48 2015/08/17 5:46 PM


eye on the world

The first Olympic Games were held in 776 BC at the Greek city of Olympia.

Did you know?

BELOW Mystra is a great Byzantine site

near Sparta (© Mia Battaglia/Flickr.com)

BOTTOM Caryatids (© Dennis Jarvis/Flickr.com)

than were born, but as a result of external migration, the population increased by 25 778. Greece population density is 84,3 people per square kilometre as of August 2015.

Most Greeks belong to the Greek Orthodox Church, which is governed by a synod of metropolitan bishops, presided over by the Archbishop of Athens. The largest religious minority is the concentration of Greek Muslims in north-eastern Thrace. Some islands in the Ionian and Aegean have a significant number of Catholics. Greece’s Jewish community was nearly vanished in World War II.

TourismGreece attracted 24,5-million people in 2014, contributing 18% to the nation’s GDP. It is ranked as the 15th most-visited country in the world and reportedly hosts more than 20- million visitors annually. The Greece mainland and the Greek islands have some popular holiday destinations in Europe. Most tourists are from Europe, especially the EU countries, and from the US.

Greek tourism started flourishing in the late 1960s, and particularly in the early 1970s.

The first Greek hotel unit was created in 1968 in Agios Nikolaos, Lasithi, Crete; since then many accommodation options have made their appearance.

Sparkling beaches, archaeological and historical sites, and the safety aspect of Greece are major pull factors for the country. Greece is also known for its beaches and islands, from the black sands of Santorini to the party resorts of Mykonos.

EconomyGreece is a member-state of the European Union and uses its uniform currency, the euro. Important industries include the service sector, agriculture and tourism.

Since 2010, the prospect of a Greek default on its euro-denominated debt has created severe strains within the EU and raised the question of whether a member country might voluntarily leave the common currency or be removed. Greece has a capitalist economy with a public sector accounting for about 40% of GDP and with per capita GDP of about two-thirds that of the leading eurozone economies. Tourism provides 18% of GDP.




eye on the world

The Greek economy averaged growth of about four percent per year between 2003 and 2007, but it went into recession in 2009 as a result of the world � nancial crisis, tightening credit conditions, and Athens‘ failure to address a growing budget de� cit. By 2013, the economy had contracted 26%, compared with the pre-crisis level of 2007.

Under intense pressure from the EU and international market participants, the government adopted a medium-term austerity programme that included cutting government spending, decreasing tax evasion, overhauling the healthcare and pension systems, and reforming the labour and product markets. Athens faced long-term challenges to continue pushing through unpopular reforms in the

face of widespread unrest from the country’s powerful labour unions and the general public.

However, the massive austerity cuts have prolonged Greece’s economic recession and depressed tax revenues.

Uncertainty regarding Greece’s future in the Eurozone has dampened investor con� dence and lowered growth projection. Nonetheless Reuters recently reported that tourists in the country are not directly a� ected by the debt crisis.

Aegean Airlines, Greece'’s largest carrier, says passenger tra� c was up 19% in July compared with the same month last year; and Greece’s economy ministry estimates that arrivals in the country this year will exceed last year’s record of nearly 25-million.

19601963

19661969

19721975

19781981

19841987

19901993

19961999

20022005

20082011

201470,000,000

74,000,000

78,000,000

82,000,000

86,000,000

hist

oric

al p

opul

atio

n

19601963

19661969

19721975

19781981

19841987

19901993

19961999

20022005

20082011

20148,000,000

9,000,000

10,000,000

11,000,000

12,000,000

hist

oric

al p

opul

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n

Greece historical population (1960-2015)

Greek myths have always been an indispensable part of the Greek mentality and culture. Since the ancient years, Greeks were creating myths to justify and explain anything they couldn’t understand; things that happened in nature, the birth of � owers and animals, the bad or good luck and anything they wanted to commemorate and glorify. Some of the most famous mythical Greek gods include Zeus (king of the gods), Hera (goddess of love and heaven), Poseidon (god of the sea), Aphrodite (goddess of love and beauty) and Apollo (god of music) among many others.

Greek mythology

Sources: MSCI; KTI; OECD

THIS IMAGE Meteora (© Vasilis Karamouzos/Flickr.com)

OPPOSITE Theater of Dionysus at the Acropolis, Athens (© Christopher Holland/Flickr.com)



eye on the worldeye on the world

NOW

2001 2004

2009 2010

2011

201

4

20

15

2015: THE LEFT-WING ANTI-BAILOUT PARTY SYRIZA WINS THE ELECTIONS.

FEBRUARY: THE EUROZONE APPROVES A FOUR-MONTH BAILOUT EXTENSION IN EXCHANGE OF A NEW SET OF REFORMS FOR GREECE.

30 JUNE: GREECE DEFAULTS ON ITS €1,5-BILLION EUROS DEBT REPAYMENT TO THE IMF.

2014: GREECE GOES BACK TO THE DEBT MARKETS TO ISSUE BONDS. ELECTIONS ARE CALLED ON JANUARY 2015.

2011: THE EU AGREES TO A SECOND BAILOUT OF €109-MILLION EUROS. GREECE GETS A SIGNIFICANT WRITE-DOWN OF ITS DEBT (50%). GREEK DEBT HOLDERS LOSE 50% OF THEIR INVESTMENT IN BONDS.

2010: GREECE ADOPTS THE AUSTERITY PACKAGE (PAY CUTS, PENSION FREEZES, TAXES ON E.G. CIGARETTES, ALCOHOL, FUEL).

VIOLENT PROTESTS BREAK OUT IN ATHENS. THE IMF AND THE EUROZONE EXTEND AN AID PACKAGE TO GREECE FOR €110-BILLION IN EXCHANGE FOR MORE AUSTERITY MEASURES. GREECE STOPS ISSUING DEBT.

2009: THE FINANCE MINISTER ALERTS THAT THE DEFICIT COULD CLIMB TO 125% OF THE GDP; THE RATING AGENCIES START DOWNGRADING GREECE.

2004: GREEK GOVERNMENT ADMITS THAT IT UNDER-REPORTED ITS BUDGET DEFICIT FIGURES BETWEEN 2000 AND 2003.

2001: GREECE BECOMES THE 12TH COUNTRY TO ADOPT THE EURO.

NOW: GREEKS VOTED ON 5 JULY NOT TO ACCEPT CREDITORS’ REFORM PROPOSALS.

Timeline of the Greek Debt Crisis

Sources: Opseeker.com



people in profi le

Jean KnoppersenDirector

Acoustech Consulting

Jean Knoppersen has come a long way since graduating as an electrical engineer from the University of the Witwatersrand in 1981. He is now Director of Acoustech Consulting, one of the biggest names in South Africa for acoustic design and noise control.

Acoustech Consulting opened its doors in March this year but Knoppersen is no young hand. “Being in the acoustic business for 31 years allows for an in-depth knowledge of what is needed in any building,” he says. “Noise always needs to be controlled, especially when it comes to open-plan o� ces, conference rooms and atria. That is why we work in close contact with our clients and their architects and engineers.”

In his lengthy career, Knoppersen has worked on all types of projects, from the King Shaka International Airport to the Soccer City Stadium and the One&Only hotel in Cape Town. O� ce projects include US AID Pretoria, Menlyn Recon� guration Phase 1 New Retail, Standard Bank Rosebank, Absa Towers West, Nedbank Newtown Junction, Grundfos and Nedcor Sandton. He says the enjoyable thing about South Africa is that you get to work on every possible project, which results in a wide range of experience.

“With the new emphasis on green acoustics, clients are even more aware of how acoustics impacts everything,” he says. “This means we are always working as a team to give clear, cost-e� ective options that enable compromise. This is why we consult from beginning to end.”

t: +27 (0)11 648 4998 / +27 (0)82 456 [email protected]

www.acoustech.co.za

For advertising opportunities and rates contact

Janine Ramey c: +27 (0)79 428 5380 / e: [email protected]

Riëtte Stevens c: +27 (0)71 877 5520 / e: [email protected]

t: +27 (0)11 883 0679 / f: +27 (0)86 216 9026

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

REGISTER2 0 1 5 - 2 0 1 6

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

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

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

● 53 categories ● Full- and part-category page sponsorship ● Highlighted data entries ● Data entries with logos

● A� ordable small advertisements (half- and quarter-page) ● Boxed column and part-columns

BOOKING DEADLINE: 7 Sep 2015Material deadlines: Logo entries 21 Sep 2015

Column entries 21 Sep 2015Display deadline: 5 Oct 2015

2

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

Architects

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Ranked as the #1 engineering design firm by revenue in

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

solutions for our clients across all industry sectors.

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

Block Ad.indd 1

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Property Register 2014-2015 Section 1.indd 2

2014/10/09 5:22 PM

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

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

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

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

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

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

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

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

solutions for our clients across all industry sectors.

Contact us onwww . a e c om . c om

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

Developers DEVELOPERSAbland

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

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

REGISTER2014 - 2015

South African Property O

wners Association - P

roperty Register

2013 - 2014

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

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

CHRIS OWTRAM ARCHITECTURE

CO-ARC INTERNATIONAL

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

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Managers and administrators OWNERS

Property Register 2014-2015 Section 3.indd 40

2014/10/09 5:27 PM

people in profi le

Profile Acoustech & CDH_REV2_SUBBED.indd 52 2015/08/17 4:14 PM


people in profi le

t: +27 (0)21 481 6332 [email protected]

www.cli� edekkerhofmeyer.com

Landowners’ obligations in terms of the environment

Terry Winstanley (right) is a Director and National Head of Cli� e Dekker Hofmeyr’s

environmental practice. She is one of the leading environmental lawyers in South Africa, and has a lot of experience in environmental law and policy in southern Africa, in a � eld in which she has worked exclusively for the past 20 years. Her commercial clients are drawn from the energy, petro-chemicals, forestry, pulp and paper, mining and manufacturing sectors. Her government clients include national, provincial and local governments, including those of Namibia, South Africa, Swaziland, the Western Cape, KwaZulu-Natal, Cape Town, Durban and Johannesburg.

Winstanley was the President of the Environmental Law Association of South Africa until recently and is a past Chairperson of the Associated Law Societies of South Africa’s Committee on Environmental Law, a committee on which she still sits.

She says that, in terms of environmental legal issues a� ecting property owners, the Alien and Invasive Species Regulations, which came into force in 2014, are expected to have far-reaching consequences. The National Environmental Management: Biodiversity Act (Biodiversity Act) was enacted to provide for the management and conservation of South Africa’s biodiversity, protected species and ecosystems. The Alien and Invasive Species Regulations were implemented to support the Act’s objectives.

The Biodiversity Act provides that anyone carrying out “restricted activities” must hold a permit before such activities may validly be undertaken. Importantly for property buyers and sellers, the regulations impose various obligations on persons owning property where listed alien invasive species are growing. These include the obligation on the seller of a property (and subsequently the buyer) to apply for a permit. The regulations also oblige the seller of property to notify the buyer in writing of the presence of listed invasive species on that property. This stands to have far-reaching consequences by requiring property owners to take steps to ensure the early detection and, if necessary, eradication of alien and invasive species on their properties. A detailed Alien and Invasive Species List can be found at www.invasives.org.za/legislation.html.

Signi� cantly, penalties for non-compliance with these provisions include a � ne not

exceeding R5-million and/or imprisonment for a period not exceeding 10 years; and in the case of a second/subsequent conviction, a � ne not exceeding R10-million and/or imprisonment for a period not exceeding 10 years.

Also relevant to property owners are the contaminated land provisions of the Waste Act, which came into e� ect last year. In an interesting new angle, the Department of Environmental A� airs (DEA) is asking owners of land known to be polluted to provide details regarding the extent of contamination and the plans to remediate it. Although it is doubtful whether this is lawful, a landowner wouldn’t want to get on the wrong side of the DEA– so where land is known to be contaminated,

it is better to report contamination (which is in any event a legal requirement) and proposed remediation measures (determined by the owner) than to wait until the DEA directs you to do so and determines the methods and extent of remediation.

Terry Winstanley, Director and National Head of Cli� e Dekker Hofmeyr’s environmental practice

Profile Acoustech & CDH_REV2_SUBBED.indd 53 2015/08/17 4:16 PM


people in profi le

Leaving behind monumentsAveng Construction and Engineering Operating Group Managing Director

Chris Botha heads the company’s operations in Africa

Aveng Construction and Engineering Operating Group Managing Director

Chris Botha heads the company’s operations in South Africa and Africa. Botha, who set out on a construction career path by studying civil engineering at Stellenbosch University has more than 21 years in the industry.

It all began when, as part of conditions stipulated by his tertiary education bursary, he had to begin work as a civil engineer soon after his studies.

“I enjoyed leaving behind monuments and spent a lot of time in the South African civil construction space before working in Africa, mainly on the construction of roads and mining infrastructure,” he says. “I later worked in the Middle East, where I was mainly involved in the construction of roller compacted concrete dams.”

He returned to South Africa in 2001 and has worked in a management capacity since 2003. “I most value the human dynamic of the construction businesses,” he says. “It is rewarding to have a direct in� uence on helping people deliver monuments.”

Chris is proud to be part of an award-winning company that, at 126 years of age, has lived through the industrial revolution and boasts a rich history of providing multi-disciplinary services across the construction and engineering value chain to its clients in South Africa, Namibia, Mozambique, Mauritius and selected markets in the rest of Africa. “A legacy is always something to be proud of,” he says.

Aveng Grinaker-LTA’s services include construction services in building, roads and earthworks, civil engineering, geotechnical, mechanical and electrical engineering.

Some of the local projects the company has been involved in include the Cape Town Airport, Berg River Dam, FNB Stadium, Medupi Power Station, Kusile Power Station, Emalahleni Water Treatment and Nelson Mandela Bridge.

“Some of the key processes I’m involved in include establishing and maintaining the business and operating models to ensure that the correct structures are adhered to, the selection of projects during the tender and


Aveng Advertorial_REV3_SUBBED.indd 54 2015/08/18 12:43 PM

people in profile


procurement process, ensuring adherence to client expectations, safeguarding sustainability in challenging environmental issues, and other responsibilities,” Chris says.

Speaking to the green agenda and the conservation of the environment, Chris says it is an imperative for the company. In fact, one of its most prestigious projects was the Department of Environmental Affairs building in Pretoria, which recently won two awards at the SAPOA Xcellence Awards – corporate office development and overall green award. The building achieved a 6-star Green Star rating, even though it was commissioned as a 4-star development.

“As a result of our delivery of quality green buildings that meet and surpass client expectations, more clients are beginning to demand Green Star ratings for their projects,” Chris explains, saying that the company believes in environmental conservation.

Aveng has invested in ensuring that it has the best expertise when it comes to dealing with water use and re-use. The company offers multiple solutions to its clients, including the use of water conservation devices and selecting efficient irrigation systems. The conservation of energy by using roof solar panels (which can cover as much as 20% of the energy usage of a building) is just one of the environmentally conscious decisions the company considers, depending on client specifications.

“Our environment is under pressure,” says Chris. “Aveng has a number of leading technologies to address various issues, including an acid mine drainage purification process and the reduction of our own carbon footprint.”

He notes that it is a general belief that building green equates to higher construction costs – but architects and designers can use infrastructure to minimise the use of energy and water while accommodating the basic principles of the Green agenda.

“At the most basic level we must ensure that conversations about preserving the environment form an integral part of young people’s education at all levels so that they acknowledge their responsibility in alleviating the pressure we put on our environment. The green conversation is at its embryonic stage in this country and a lot can still be done.”

t: +27 (0)11 923 5000www.avenggrinaker-lta.co.za


Aveng Advertorial_REV3_SUBBED.indd 55 2015/08/18 12:44 PM


EcoMobility update

World EcoMobility FestivalAn update on the closure of parts of the Sandton CBD in October to encourage more pedestrian activity

As part of a long-term transport management plan and Transport Month initiatives,

Sandton will be converted into an eco-mobility hub during the month of October. This plan is to promote behavioural change from private cars to public transport use, walking and cycling as a transport mode of choice.

According to the City of Johannesburg, Sandton is one of the most congested areas in South Africa, and the picture of tra� c in the precinct is a gloomy one. Between 7.30am and 8.30am every day about 95 700 people move into Sandton while just over 50 000 travel out. This totals almost 150 000 people daily. Of the total tra� c on Sandton streets around the morning rush hour, up to 70% consists of private cars.

If more people do not switch to public transport, walking and cycling, the congestion in the area will go from bad to worse, and tra� c will eventually grind to a halt.

The City of Johannesburg is now taking the lead in the implementation of a new transport plan through the introduction of

the bus rapid transit system (Rea Vaya), cycle lanes and improved public transport facilities. Several streets in the CBD precinct will be closed o� to private vehicles in a bid to decongest Sandton, known as “Africa’s richest square mile”.

Residents, workers and visitors will still have full access to Sandton but the emphasis will be on using public transport, buses, minibus taxis and the Gautrain to move in and out of the CBD.

The City of Johannesburg acknowledges that the EcoMobility Festival will result in certain disruptions to people’s regular schedule, especially in the � rst few days, and is working hard to ensure this does not lead to dysfunctionality.

Festival information (including the routes a� ected and fares) will be available through various channels closer to the time. We encourage members to make the necessary arrangements to ensure that as little discomfort as possible is experienced during our commute into Sandton.

Between 7.30am and 8.30am every day about

95 700 people move into Sandton while just over

50 000 travel out. This totals almost 150 000

people daily


Eco-Mobility Update_SUBBED.indd 56 2015/08/17 5:46 PM

update


The Construction Industry Development Board (CIDB) Prompt Payment Regulations

and Adjudication Standard recently appeared in the Government Gazette Notice 482 of 2015 and was open for public comment for 60 days.

These regulations address a crippling constraint to e� ective infrastructure development by introducing processes to ensure the life blood of the industry – cash � ow – actually � ows.

They legislate a standard set of payment provisions and introduce adjudication as a mandatory � rst step for resolution of disputes in both the public and private sector. Home building contracts, as contemplated by the Housing Consumer Protection Act No. 95 of 1998 are, however, excluded from application of the regulations.

Similar payment regulations have been introduced by statutory intervention in the United Kingdom, Singapore, Hong Kong, New Zealand, Australia and most recently Malaysia. This statutory intervention was necessary to overcome problems related to non-payment of contractors and sub-contractors in the building and civil-engineering industries. Wherever these regulations have been applied internationally, they have made a fundamental di� erence by freeing up cash � ow.

“Delayed payment has a destructive e� ect on the sustainable development of the construction industry,” says Vaughan Hattingh, Director and adjudication practitioner with MDA Consulting (Pty) Ltd. “The proposed regulations prevent withholding of payments without going through a de� ned procedure. They give contractors a statutory right to suspend works and to charge interest on late payments, and they introduce a mandatory form of statutory adjudication to resolve disputes.”

“The practice of withholding payment because of employer budget constraints or on the basis of performance or until completion of a project, and delays in resolving disputes, have resulted in contractors � nancing

projects,” says Euan Massey, also a Director and adjudication practitioner at MDA Consulting (Pty) Ltd. “The new regulations will compel parties to resolve disputes through adjudication within 28 days. Importantly, the 28-day window may only be extended by 14 days in prescribed circumstances. These proposed interventions will have profound consequences for the South African construction industry.”

Massey explains that the enforcement of the adjudicator’s decision is critical to the success of the prompt payment regulations in realising the primary objective of freeing up cash � ow. “For several years, South African courts have supported the adjudication

procedure by implementing a robust approach in enforcing adjudicators’ decisions repeatedly, determining that adjudicators’ decisions are enforceable as a matter of contractual obligation, and that furnishing notice of dissatisfaction does not prevent enforcement,” he says. “Parties are required to comply with and promptly implement an adjudicator’s decision. In this way, disputes will be dealt with cost-e� ectively and expeditiously.”

Hattingh, in collaboration with Professor Tinus Maritz, head of the Department of Construction Economics at the University of Pretoria, has designed and developed and is currently facilitating the Certi� cate Programme in Construction Adjudication presented by the Centre for Continuing Education at the University of Pretoria. Now in its third year, the programme will continue to produce skilled quali� ed adjudicators for the South African construction industry.

The CIDB undertook extensive research to institute these changes and responded to issues such as:

● Chronic problems of delayed payment in the construction industry, with many organs of state failing to adhere to the PFMA/MFMA. There are no consequences for failure to comply.

● In an extensive survey of almost 900 construction projects, 43% of payments to contractors were made more than 30 days after invoicing.

In summaryThe CIDB prompt payment regulations:

● Prohibit “pay-when-paid” clauses ● Insist on regular payments within

a de� ned time frame ● Allow suspension of construction activities ● Prohibit withholding of payment ● Entitle a party to charge interest

on late payments ● Introduce a mandatory statutory

form of adjudication, which is a fair, rapid and inexpensive mechanism for resolving disputes.

Regulations to legislate prompt payments are a game-

changer for the construction industryNew proposed regulations governing payments and dispute management

under construction works contracts are expected to profoundly change the way the South African construction industry operates

Vaughan Hattingh, Director at MDA Consulting

Euan Massey, Director at MDA Consulting

Prompt Payments_SUBBED.indd 57 2015/08/17 4:38 PM


advertorial

In search of stable marketsAs the rand reaches an all-time low, South Africans are looking abroad for safer assets and steady returns

South Africans are clutching their wallets as the Republic’s top investors move their

money away from emerging markets back into developed countries. In a bid to retain capital, many individuals are now forced to seek out stable markets that will not only provide a valuable safety net but a good return on investment.

According to property investment company IP Global’s Director for Africa George Radford, other drivers include retirement and succession planning, children studying abroad and the possibility of relocation. A study of the company’s Global Real Estate Outlook (GREO) report for the second quarter of 2015 shows that current property hotspots include the UK (particularly London), Berlin, Dublin, Brisbane and Melbourne, as these cities provide steady rental yields and noteworthy predicted growth.

Property hotspots:

• United Kingdom (UK)London continues to be at the forefront of the world’s leading economies. Central London’s property price growth is forecast

at a staggering 31% to 2018 – a direct result of London’s 21 000 homes a year housing supply shortfall. In addition to investment fundamentals that make the UK attractive to global investors, South Africans have historic links with the UK, making it a more compelling property investment.

Greater London is also attracting foreign investors. Over the last year, this area’s property prices have increased by 12%, and it is predicted that rent will have risen by 26% by 2017. The introduction of Crossrail, a new high-frequency, high-capacity railway for London and the South East in 2018, will provide better connectivity with central London commuter areas, unlocking dormant value in up-and-coming fringe locations. Price growth around Crossrail stations has outpaced the city-wide average since the project was announced in 2009. In Manchester in particular prices were up from 5,4% in March 2014 to 6,3% in March of this year.

• GermanyBerlin, Germany’s largest metropolitan area, with its cosmopolitan cultural reputation and robust, growing economy is attracting new residents every month. Residential sale prices in Berlin have been rising steadily over the past few years, with average price growth for the apartment sector at 11,7% across 2014. “Berlin’s rental market is a key factor supporting the city’s investment case,” Radford said at a recent presentation. “Just 14% to 16% of the city’s residents are homeowners, making it very much a landlord’s market.” Looking towards the future, when the Brandenburg airport

opens in 2016, it will create 75 000 new jobs and see at least 27-million visitors pass through its doors.

• AustraliaA winning mix of leisure opportunities, culture and commerce in south Brisbane is making international property investors sit up and take notice. “Private and public investment continues to pour into Brisbane, which stands to bene� t from the Queensland government’s AUS$134-billion infrastructure investment spend over the next 16 years,” Radford said. “This is driving the excellent performance of the city’s real estate markets, with prices recording 12 consecutive quarters of growth since 2012.”

The growth has seen Brisbane’s median unit price rise 3,6% in the year to December 2014. A shortage of housing stock and a vacancy rate still sitting tight at just 2,1%, have created a strong rental market generating some of the highest yields seen in Australia – on average 5,4% per annum, as of March 2015.

Melbourne too has become an increasingly popular city to invest in. The city is experiencing a population boom, with property prices going steadily upwards as new inhabitants seek the enviable lifestyle o� ered in Australia’s arts, culture and sporting-events capital.

“Provided they are armed with solid research and working with the right partner, o� shore property investments will continue to make sense and form an essential part of sensible investment planning for many South Africans,” Radford says.

Source: IP Global’s Global Real Estate Outlook (GREO) report for Q2 2015; Ipglobal-ltd.com

By Michelle Marais

George Radford, Director of IP Global Africa

Property hotspots:

Stable Markets_SUBBED.indd 58 2015/08/17 5:11 PM

eco-mobility breakfast


Curbing land invasionsThe City of Cape Town’s Anti Land Invasion Unit aims to curb and discourage

land invasions by providing strategic and operational preventative and monitoring services

The City of Cape Town has highlighted the rising problem of land invasions of

privately owned property to SAPOA with the aim of assisting property owners in ensuring that privately owned land is not illegally occupied.

The unit operates in conjunction with law enforcement, the South African Police Service (SAPS) and other organs to ensure that city and provincial land is not illegally occupied whereby the state loses its ability to develop the land for its intended use. However, when the invasion threat is on private land, owners are alerted and the onus is on them to take action.

Unlawful invasions of privately owned land must be reported to the courts without delay for an eviction order in terms of the Prevention of Illegal Eviction and Unlawful Occupation of Land Act, 1998.

The SAPS is the private property owner’s � rst point of call when faced with a land invasion problem. The SAPS has authority to respond to trespassing complaints by removing trespassers

from the property, enforcing the PIE Act (Prevention of Illegal Eviction and Unlawful Occupation of Land Act) by removing land invaders from a property where they erected structures without the consent of the property owner, arresting and charging o� enders for transgressions, and assisting the sheri� with eviction upon granting of the appropriate order.

Land owners can also request immediate assistance with preventing land invaders from building structures and demolishing unoccupied structures already built, protecting property, assets, contractors and sta� while preventing further invasion, vandalism and damage to property. In instances where the city becomes aware of potential invasions on private property, it will keep an eye on the property and alert owners of this information.

To fast-track the process, it is imperative that owners have a contact person available to assist on their behalf, have a letter authorising a proxy to act on behalf of owners, and have

a copy of the title deed on hand to prove ownership when approaching the SAPS. Legal remedies available to owners include:

● Laying criminal charges of illegal trespassing ● Applying for an interdict at the High Court

to prevent further illegal invasions and/or illegal occupations

● Applying to the court to evict illegal occupiers in terms of the PIE Act.

To assist the city in fast-tracking the � ght against land invasions, property owners are requested to register their property with the City of Cape Town by contacting its call centre with an erf number, suburb name and the owner’s contact details (or those of the person in charge of the property). The call centre can be reached by dialling 107 from a landline or 080 022 5669 from a mobile phone. The call centre is operational 24/7 and is dedicated to owners with property within the boundaries of the City of Cape Town.

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SAPOA events

Branding womenSAPOA, in partnership with the Green Building Council of South Africa and the Women’s Property

Network, hosted a Women’s Breakfast at the Michelangelo Hotel in Johannesburg

Keynote speaker Kate Moodley is an emerging leader and businesswoman Nomzamo Radebe, SAPOA President Elect and CEO of JHI Properties

Women from various organisations attended the Women’s Breakfast

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SAPOA events

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SAPOA events

SAPOA DPS S.A PROP AD (420X297).pdf 1 2/26/15 10:11 AM



SAPOA events



SAPOA events

SAPOA KZN breakfast meetingThanks to the generous sponsorship of Tongaat Hulett, SAPOA members enjoyed a lively networking breakfast, followed by the inside track of the draft City Planning story line, presented by eThekwini’s Chief Strategy Offi cer Adrian Peters

By Anne Schauffer

It seemed � tting on 30 July for SAPOA members to have breakfast at the Protea

Hotel Edward on North Beach’s OR Tambo Parade. This heritage building – once dubbed the Grand Dame of Durban – felt appropriate for a presentation around eThekwini’s future, a complex uphill journey where past, present and future are inextricably linked.

Adrian Peters is eThekwini Municipality’s Chief Strategy O� cer, and his frank presentation “eThekwini on the Edge” was more about questions than answers. This insight – unveiled to SAPOA – was described as being a “short discussion document” prepared by the new City Planning Commission for Greater Durban, essentially an in-depth look at the current state of eThekwini from every possible angle. It’s a document that, after extensive research, critically assesses the often puzzling whys and wherefores of eThekwini’s sluggish progress, and the critical importance of getting it right if the city is to be sustainable. The conclusion results in a series of probing questions.

Prior to the presentation, Peters said that the purpose of sharing the information in this draft was to stimulate debate and discussion, and get input and opinions from the industry. He wants answers to the following: “Were the questions arrived at the right ones? Do they adequately capture the key challenges and opportunities facing the metropolitan area?”

How did Durban get into its current predicament? Following a detailed study of South Africa’s major cities in the mid-1990s, Je� McCarthy and Ann Bernstein described Durban as “the country’s most promising global competitor” because of its location, political pragmatism and quality of business leaders. What happened – or what hasn’t?

The document pulled no punches as to the culpability of both the municipality and the private sector on many levels, a factor that has led to diminished trust between many key role-players. “The scale of the challenges facing Durban is beyond the capacity of any single organisation to address. We can’t do this in a climate of distrust. You are all role-players with an interest in the city.

The plan has to be owned by everybody. A large city such as eThekwini is but one actor – we can’t solve all the problems on our own. Improved communication and trust between the public and private sector will assist this.”

Judging by the SAPOA members’ strong responses during question time, there’s clearly a willingness to respond to Peters’s challenge of “What contribution can you

and your organisation make to shaping the city’s future?” SAPOA KZN Regional Chairman Edwin van Niekerk stated the organisation’s intention to be involved. Yet a constant refrain rings out, month after month, from members keen to develop, invest and make that contribution: “When will the municipality fast-track the current unplayable length of time it takes for application approvals?”

Perhaps that time is now?

Rory Wilkinson, Adrian Peters and Edwin van Niekerk

Sithembiso Mthembu, Soo Meyer, Cyril Gwala and Mondli Msani

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SAPOA events

Dylan Bradford, Dave Ramsay, Aletta de Lange and Shakilla Butharam

Tshepiso Kobile, Andile Mnguni and Nonhlanhla Khoza

Shaun Stobart, Kevin Gowdy and Lezanne Burger

Sue Hudson, Peter Hudson and Elizabeth Morgan Justin Blom, Julia Randles, Joshua Pillay and Cobus Naude

Mpume Xulu, Craig Dohne, Brandon Stirk and Sharon Madanlal

Artish Jugernath, Bheki Shongwe, Vil Moodley and Douglas Tatham

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SAPOA events

A day well spentSAPOA Gauteng’s recent Golf Day was held on 27 July at the Royal Johannesburg and Kensington Golf Club

First place winners from Standard bank with Dr Sedise Moseneke Second place winners from Enza Construction with Dr Sedise Moseneke

Third place winners from Anvil Properties Longest Drive winner Callum Mowat with Dr Sedise Moseneke

Closest to the Pin winner Michael Magner with Dr Sedise Moseneke


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SAPOA events

Participants of the SAPOA Gauteng golf day

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SAPOA workshops

Think investment, think incentivesAn overview of DTI investment incentive offerings and renewable energy support

The SAPOA Mpumalanga region recently held a workshop on the Department of Trade and Industry’s (DTI) investment incentive

o� erings and renewable energy support.The workshop focused on investment-based incentives available to

general manufacturers and specialised sectors, tax-based incentives, infrastructure support, and research and development.

The investment incentive o� erings and renewable energy support programme are managed by Enterprise Development Consultants, with o� ces in Port Elizabeth and Cape Town consulting nationally. The programme has seen successes achieved through a focused and long-term relationship forged with clients and a client-centric approach, as opposed to being numbers-focused.

There are various programmes, including the Manufacturing Competitiveness Enhancement Programme (MCEP), the Automotive Investment Scheme (AIS) and the Aquaculture Development and Enhancement Programme (ADEP) among others.

What is the MCEPThis cash-incentive grant is only available to existing manufacturers who have been trading for a minimum of 12 months and have 30% to 50% of qualifying capital costs or 50% to 70% of qualifying competitiveness improvement costs.

Applicants are required to have Level 4 B-BBEE compliance. They may qualify for the grant every two years.

As part of the MCEP, clients also receive green technology support, which focuses on cleaner production and resource e� ciency, and is available to engineering and conformity assessment services companies supporting the manufacturing industry. The maximum grant amount is R20-million.

What is the AISThe AIS is a specialised sector incentive programme in the form of a cash incentive grant that is available to component manufactures and OEM. The application for this grant is between three and four months.

Business are required to have 25% to 35% of qualifying capital costs towards plant and equipment/buildings costs, but further competitive costs may be included. The maximum grant is R1-million.

What is the ADEPThis is a cash incentive grant aimed at promoting investment in the aquaculture sector, and is available until 31 March 2018. The grant is available for new and expanding registered South African entities, including companies, close corporations, higher and further education institutions as well as registered research institutions engaged in primary, secondary or ancillary aquaculture activities (marine or fresh water).

The grant requires applicants to have between 20% and 45% of the qualifying investment aimed for investment towards land and buildings or other bulk infrastructure, plant and equipment, including work boats and competitiveness improvements. The maximum bene� t for this grant is R40-million.

Challenges to the programmes include awareness of incentives, limited window periods of opportunity, ongoing guideline changes, stringent rules to remain compliant from application to claim stage, turnaround time frames, planning for incentives, and communication with the DTI. Applicants are encouraged to seek out information timeously to be able to qualify for these and other grants.

Lease agreement workshopSAPOA recently held a workshop covering the legislation that governs lease agreements

A Lease Agreement Workshop, an intense

one day programme, was recently held in Nelspruit.

The workshop looked into the rights and obligations of the parties to a lease, and new legislation and case law a� ecting lease agreements. It also covered the essentials needed for a lease agreement to be implemented.

Delegates included professionals who have to implement lease agreements and/or who are responsible for negotiating, renewing, drafting, and managing leases and lease agreements.

The topics discussed during the workshop included:

● Lease of immovable property

● Essential elements of a contract of lease

● Relationship between the lessor and lessee, and the obligations from both parties

● Grounds for termination of the lease

● The Rental Housing Act ● The Prevention of Illegal

Eviction and Unlawful Occupation of Land

Act No. 19 of 1998 (PIE Act)

● The Consumer Protection Act: Its purpose, e� ects and application

● The Rental Housing Act

The Lease Agreement Workshop was presented by attorney, conveyancer and notary JP Marnitz.

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fun & quirky

Candidly CraigWith a lifetime of yachting and a legacy of engineering excellence behind his name, this is one busy entrepreneurial engineer who takes his teenage daughters’ fashion advice very seriously

By Nthabiseng More

Q Sutherland Engineers as a name just works. What would’ve happened if you had a less complementary surname? We imagine you’d not go for Young Engineers, Fuller Engineers or Cook Engineers…I like the implied accountability to clients that comes with a company bearing the founder’s name. From this point of view I guess I’m glad my surname isn’t Cook, Pogenpool or Kuckhard!

Q Would 21-year-old Craig Sutherland be proud of you today? Probably to a degree. I always planned to be an entrepreneurial engineer because my father was one but there is still much to do.

Q If we gave you a cow would you slaughter it?De� nitely not. I’d keep it in my garden and use it as a lawnmower, compost manufacturer, methane gas supplier and milk producer, and see whether on cold winter nights I could encourage it into our lower � oor level so its rising body heat could assist in warming us up above – the way the Swiss do!

Q On a scale of one to 10, how do you rate your cooking, and why?Very low. I have a repertoire of only three dishes: eggs Benedict (pre-made Hollandaise sauce from Woolies), roast pork belly and a braai.

Q Would Nelson Mandela have made a good civil engineer?He would have made a brilliant engineer. He was a team player: collaborative, lateral-thinking, non-ego driven and smart.

Q If there were engineering Oscars, would you win or at least be nominated?Thankfully our industry has more of a team focus, and in that respect our practice has been fortunate to have engineered many award-winning building projects over the years. [Ed’s note: We think that’s a yes, then, albeit a very modest one.]

Q Describe your yachting skills.I was fortunate enough to get into dinghy racing when I was about eight years old, which progressed into keel-boat o� shore racing after varsity during my navy national service. I have had a lifetime of awesome local and international yacht-racing events since, with some of the highlights, I suppose, being three Cape to Rio races, the infamous Fastnet Race and representing South Africa a couple of times internationally.

Q What is your favourite shirt colour, and why?Blue. My teenage daughters tell me it makes my blue eyes “pop”, whatever that means…

Q Your favourite engineering joke?How do you tell if the engineer you’re talking to is an outrageous extrovert? If he is, he’ll be looking down at your shoes instead of his own. [Ed’s note: We took a while but we’re sure engineers will get the punch line right away…]

Q If we came to your home and looked inside the refrigerator, what would we � nd?Carrots for my morning carrot juice, chunky fruit marmalade, craft beers, a few favourite Sauvignon Blancs and a braai pack.

Q Does your family have a pet? Do you speak to it?Two big dogs – Stitch and Mia – and a small gold� sh. Yes, I need to reprimand Mia every evening for snoring too loudly!

Q Do you take a lunch box to work?No, fortunately my right-hand lady of 13 years, Stephanie, usually arranges a healthy snack for me – otherwise I invariably forget to eat.

Q What fascinates you about life?Risk versus reward, and inner peace.

Craig Sutherland is the Managing Director of Sutherland Engineers, established together with his father, Gordon, in 1991. The startup structural engineering practice initially focused on private property developer’s in the Western Cape only. After Gordon’s untimely passing in 1997, Craig led the growth of the small practice into a multi-disciplinary, national practice offering structural, civil, mechanical (HVAC, wet services and fi re), electrical and specialist Façade design services. Today the practice has over 100 fulltime staff with offi ces in Cape Town, Johannesburg, Durban, Tygervalley and Nairobi and is active in 9 sub Saharan countries.

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OctoberRegion Date Event

Gauteng 1 and 2 October 2015 IPMP Training

Western Cape 6 to 8 October 2015 ICPP Training

Gauteng 7 October 2015 Media Lunch

Gauteng 8 October 2015 Legal Breakfast

KwaZulu-Natal 15 October 2015 Breakfast Presentation

Polokwane 15 October 2015 Golf Day

Gauteng 17 October 2015 Research Breakfast: Industrial Industry Report

Gauteng 20 October 2015 Industrial Vacancy Report Breakfast

Gauteng 23 October 2015 Brokers Economic Update

KwaZulu-Natal 23 October 2015 Networking Breakfast

Gauteng 26 to 30 October 2015 BCTP Training

Port Elizabeth 29 October 2015 Gala Dinner

SeptemberRegion Date Event

Port Elizabeth 1 to 3 September 2015 ICPP Training

KwaZulu-Natal 3 September 2015 Negotiation Skills Masterclass Programme

Gauteng 7 and 8 September 2015 ICPP Training

TBC 7 to 11 September 2015 ECPP Training

Port Elizabeth 8 September 2015 Golf Day

Western Cape 8 to 11 September 2015 ECPP Training

Polokwane 10 September 2015 SANS 10400 Workshop

Gauteng 15 September 2015 Retail Trends Report Breakfast

Port Elizabeth 16 September 2015 Council Meeting

Port Elizabeth 17 September 2015 Networking Event

Mpumalanga 17 September 2015 Golf Day

TBC 17 and 18 September 2015 National Council Meeting

Port Elizabeth 22 September 2015 Golf Day

Mpumalanga 23 September 2015 Networking Dinner

Western Cape 26 September 2015 Property Development Workshop

Gauteng 28 to 30 September 2015 Property Development Workshop

Gauteng 29 September 2015 Legal Breakfast

KwaZulu-Natal 29 September 2015 SANS 10400 Workshop

KwaZulu-Natal 30 September 2015 SACSC Annual Congress

NovemberRegion Date Event

Gauteng 4 November 2015 ECPP Training Course

TBC 5 November 2015 SAPOA Board Meeting

Gauteng 6 November 2015 Legal Power Hour

TBC 10 November 2015 Research Breakfast

Gauteng 11 November 2015 Negotiation Skills Masterclass Programme

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Events and dates subject to change.

NovemberRegion Date Event

KwaZulu-Natal 11 November 2015 Gala Dinner

Gauteng 12 November 2015 Networking Event

TBC 13 November 2015 Networking Evening

Gauteng 16 to 20 November 2015 FMP Training

Gauteng 17 November 2015 FM and IAMP Training Courses

Port Elizabeth 18 November 2015 Council Meeting

KwaZulu-Natal 19 November 2015 Gala Dinner

Gauteng 20 November 2015 Brokers and Legal Update

Polokwane 20 November 2015 Council Meeting

Western Cape 21 November 2015 Property Development Workshop

Mpumalanga 25 November 2015 Gala Dinner

Polokwane 26 November 2015 Gala Dinner

Gauteng 27 November 2015 PwC Half-Day Workshop

Port Elizabeth 29 November 2015 Gala Dinner

DecemberRegion Date Event

Bu� alo City 3 December 2015 Developers’ Gala Dinner

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off the wall

A level of transparencyThis modern city building

brings new meaning to the idea of corporate transparency

with the use of a steel-and-glass façade that also helps turn it into

an optical illusion of sorts

Situated in the culturally diverse city of Hanover, Germany, the Nord LB head office

takes a commanding position and draws curious attention from passers-by.

Designed by Günter Behnisch and partners from Stuttgart, the building occupies an entire city block and serves as an important linking element between the various activities that define the neighbouring quarters of the city: retail, commercial, residential, cultural, sports and leisure. It is a landmark of note: through varying heights, the building gently integrates itself into the existing fabric of the city.

Built between 1998 and 2002, the 18- storey building fills an area of 14 100m² and has about 351 000m² of usable office space. Its architecture is spectacular, contemporary and completely out of the ordinary.

In accordance with urban-planning guidelines, the shallow-plan perimeter building is aligned with the existing streets, complementing the scale of its surroundings.

Essentially consisting of glass and steel boxes stacked on top of each other, it was designed to house the company’s 1 500 Hanover staff in a comfortable and ecofriendly environment, reducing carbon emissions and optimising the use of natural daylight.

Highlights include a staff restaurant with a roof in the shape of butterfly wings and a 20m tower made from materials that change colour according to the position of the sun. The architects’ goal was to create a transition zone between the 19th-century residential area to the south and the historical area directly to the north.

Protected from the noise of the heavily trafficked streets is the heart of the complex: a large public courtyard. It’s characterised but not dominated by the daily operations of the bank itself, and further enlivened by shops, restaurants, cafés, large reflecting pools, extensive landscaping and public art.

A distinctive, 70m-high building rises from the courtyard, detaching itself through a series of twists and turns from the formal order of the lower perimeter building, which establishes formal and visual links to the city.

The expressive form of the tower refers neither to the styles of the immediate surroundings nor to the orthogonal grid of the post-war city. Instead, it is a response to the historical downtown geometries to the north.

A vast proportion of the building is naturally ventilated. The large areas of water in the courtyard increase the reflection of daylight and contribute towards a beneficial microclimate. Generous roof gardens not only soften the appearance of the building but also act to improve the general climate for the occupants, and to collect rain water for irrigation and use within the building.

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SAPOA events

WSP | Parsons Brinckerhoff is proud to have been involved in several award winning projects this year. We are one of the largest engineering consultancies in Africa, bringing not only global reach but local expertise and experience to the work that we do.

We are passionate about our country’s sustainable development, and iconic projects like the SAPOA Award-winning Newtown Junction are one way we make an impact on the lives of South Africans. We aim to future proof our projects, helping our clients to achieve their sustainable development goals and approaching everything we do with passion and caring.

BROUGHT TO YOU BY WSP.

32 000 500 39EMPLOYEES OFFICES COUNTRIES

Learn more about this and other projects on www.wspgroup.com

AWARD WINNING BUILDINGS

Newtown Junction, winner of best Mixed-use Development, Overall Transformation Award and overall Award, SAPOA 2015

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SAPOA events

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

QUANTITY SURVEYING DISPUTE RESOLUTION PROPERTY VALUATION

Dr Corné de LeeuwAkopo Africa Nico RoosGerhard de Leeuw www.delqs.com

QUANTITY SURVEYING

Dr Corné de LeeuwAkopo Africa Nico RoosGerhard de Leeuw

1 Head office for Ecobank in Accra, Ghana. Architects: Arc Architects

2 West Hills Mall in Accra, Ghana for a subsidiary of Atterbury Properties. Architects: Arc Architects

3 Student accommodation in Pretoria for the Feenstra Group. Architects: Boogertman + Partners

4 Vdara Office Park in Johannesburg for Bakos Brothers. Architects: Integrale Architectural Design

1 2

43

Proactive Quantity Surveying

Our track record speaks for itself. DelQS was established in 2000 and has since built up a remarkable track

record. We have provided quantity surveying services for almost all building

types ranging in construction cost from relatively small to multi-billion Rand

developments. Building and property economics is a specialty.

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south african property review september 2015

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