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PROPERTY
SOUTH AFRICAN October 2018
REVIEW
PROPERTY REVIEW - LogoTreatment.pdf 1 2016/08/25 11:31 AM
Education Focus
Leading industry players
at the forefront of learning
Sandton City
45 years on
Port Elizabeth
Development overview
MetroWatch
Nelson Mandela Bay
SOUTH AFRICAN PROPERTY REVIEW 81
from the CEO
Is Buffalo City becoming
investor-unfriendly?
SAPOA submitted comments on the draft budget to the Buffalo City Municipality (BCM) earlier this year
for consideration. However, comments of a technical nature were disregarded
T his is in response to a draft 2018/2019
budget tabled by the Buffalo City
Metropolitan Municipality, indicating a
3. National Treasury
guidelines on increases
SAPOA highlighted to the
26,8% increase in income from property municipality that, according
rates – more than four times that of to circulars 89 and 91 of the
inflation. Some property owners have MFMA, municipalities are required
had increases of more than 100%. to justify all increases that are
It is a shockingly depressing state more than the projected CPI.
of affairs when a municipality ignores The city’s increase in the income
comments from the public, fails to from property rates of 26,8% is far
control its expenses and, furthermore, above the CPI and must be justified.
fails to fathom the impact on the We could not find any justification
livelihood of its citizens. in the draft budget documents, and
This does not bode well for attracting believe that the ratepayers of Buffalo
further property investment into Buffalo City have a right to be informed.
City, and it has created a business-
unfriendly environment. In terms of the 4. Breakdown of property
tariff increase, although it is indicated rates per property category
in the draft budget that no increase is SAPOA, representing the commercial
proposed, since the value of properties SAPOA indicated that it had made property sector, was criticised for
has increased from the previous a formal submission to the BCMM, which quoting property rates figures
valuation roll to the new valuation roll, had simply been ignored. for all the properties in Buffalo
the tariff should have reduced. If the City. The information per property
revenue is considered, revenue increased Some of the contentious category is not available in the
from R1 121 175 to R1 421 961, indicating issues posed by SAPOA to budget documents; however,
a 26,8% increase in property rates. This the municipality included: Leon van Wyk, Acting General
tariff should be reconsidered. Manager for Finance at BCMM
The tougher trading environment is 1. Tariff increases Finance Department, indicated
making it increasingly challenging for for 2019/2020 and 2020/2021 that it will be provided to us.
landlords to deal with the additional tax Although it was indicated
burden. Not only is this unsustainable, that it is required to include 5. Growing of the rates base
but property owners pass these increases the proposed increases in the SAPOA appreciates the effort
through to tenants, which has a material budget, SAPOA believes that made to reduce the cost of doing
impact on the health of businesses in the increases should be reviewed, business in the city, and welcomes
the economy. This, in turn, results in since the City has budgeted for the focus on the removal of red
businesses closing down, and relates to an abnormal increase of 26,8% tape and bureaucracy to streamline
reduced revenues for the city. in the 2018/2019 financial year. processes. Investing in property
On 3 September 2018, a meeting and the development of new
was held between BCMM Municipal 2. Approved budget documents buildings will increase the rates base
Manager Andile Sihlahla, various SAPOA has noted that the instead of increasing property rates
municipal officials, SAPOA Buffalo City complete set of approved budget tariffs in a vicious cycle to increase
Regional Chairman Johan Burger and documents is not available on the revenue. We support the focus
Rates Watch, SAPOA’s appointed team BCMM website, and has requested on “investment is the name of
of consultants to monitor property that, in the interest of transparency, the game”, which is amplified
rates charges. this be done urgently. by the 10-point plan Continues on page 2
SOUTH AFRICAN PROPERTY REVIEW 1
from the CEO contents October 2018
PROPERTY
SOUTH AFRICAN
CEO Message continued
1. of strategic objectives to achieve
service delivery in the 2018/2019 IDP.
However, we do believe it is crucial
that the effect of property rates in REVIEW
this sector must be investigated by
PROPERTY
SOUTH AFRICAN
ON THE COVER
October 2018
South African Property Review
comparing rates for the 2017/2018
Education is the key to transformation
and 2018/2019 financial years. REVIEW
PROPERTY REVIEW - LogoTreatment.pdf 1 2016/08/25 11:31 AM
and employment opportunities – and
Education Focus
Leading industry players
it is the trend for a number of property
Conclusion at the forefront of learning
owners in the South African commercial
Since the sustainability of the property property sector.
Education, retail and research
sector is a key focus for SAPOA, we have
been vocal in challenging the legality and Sandton City
45 years on
consistency of increased municipal rates Port Elizabeth
Development overview
charged to our members.
MetroWatch
We acknowledge the fact that rates Nelson Mandela Bay
October 2018
are necessary to fund municipal service
delivery and outputs – but our
Constitution and laws are clear that 1 From the CEO
4 From the Editor’s desk
these must be levied in a just and 6 Legal update Key amendments to the Competition Act that will affect
equitable way by determining the property merger notifications
value of properties accurately. We are 9 Education and training SAPOA launches inaugural Public Sector Property Programme
12
SAPOA Education Committee – one on one Collaboration key to education development
committed to ensuring that this takes
14
Education – one on one Engineering education initiatives, building lives and
place, and that our members are not creating hope
overcharged. We believe that this is 16
Education The Property Foundation: facilitator of local community
essential to further an enabling skills development
19 Education – one on one On point with initiating education
environment for business and the 24 Education – one on one Vision for City of Cape Town to become a “walking” city
commercial property sector in South 26 Retail – one on one Sandton City: still going strong
Africa, and to help ensure the 28 Research – retail The impact of price hikes on retail spend
30 Retail Technology is pushing retail boundaries
sustainability of our economy. 31 SAPOA retail trends report First positive growth in four quarters
SAPOA met with the Deputy Minister 32 Retail - one on one From Mthatha to the top of the property ladder
of COGTA Andre Nel on 13 September 35 Retail initiative Delivering value to local communities and investors
36 Opinion Rethinking the value of infrastructure in South Africa
2018 to discuss the issue at BCMM, and
37
Port Elizabeth development overview Coega IDZ at forefront of attracting
tabled its concerns around the foreign investment
uncontrolled expenses at municipal 40 Proptech RMS pioneering data-driven utilities systems
level, which are resulting in the ever- 42 Research Big data critical to the decision-making process
44 MetroWatch Your right to know: Eastern Cape Metro, Nelson Mandela Bay in figures
increasing rate increases to make up for 50 Howmuch.net The real cost of relocation around the world
the income streams. 52 Social
This vicious cycle will no doubt lead to 56 Off the wall Cape Town farmer builds R30-million village for 150 workers
property development activity being
FOR EDITORIAL ENQUIRIES, email mark@mpdps.com
curtailed in Buffalo City in favour of cities Published by SAPOA, Paddock View, Hunt’s End Office Park, 36 Wierda Road West, Wierda Valley, Sandton
that are more conducive to property PO Box 78544, Sandton 2146
investment. Such is the paradox. t: +27 (0)11 883 0679 f: +27 (0)11 883 0684
We appeal to the BCMM to reconsider Editor in Chief Neil Gopal Editorial Adviser Jane Padayachee Managing Editor Mark Pettipher
its tariff increases for 2019/2020 and Copy Editor Ania Rokita Taylor Public Relations Officer Maud Nale Production Manager Dalene van Niekerk
2020/2021. Designer Eugene Jonck, Fanie van Niekerk Sales Pieter Schoeman: pieter@mpdps.com
Finance Susan du Toit Contributors Abubakr Hattas, Broll, Johan Coetzee, Maryn Blignaut,
To kill the goose that lays the golden Municipalmoney.gov.za, Marika Truter, Mathieu du Plooy, Maud Nale, Neil MacKenzie, Raul/Howmuch.net,
egg is short-sighted. Stuart Strachan, Warren Mposi Photography Mark Pettipher
We have briefed a team of attorneys, 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).
and will keep our members updated on All rights reserved. No portion of this publication may be reproduced in any form without prior written consent from SAPOA.
the progress, as we are keeping all options The publishers are not responsible for any unsolicited material.
open at this stage. Printed by
Designed, written and produced
for SAPOA by MPDPS (PTY) Ltd
Best regards, e: mark@mpdps.com e: philip@rsalitho.co.za
Neil Gopal, CEO
2 SOUTH AFRICAN PROPERTY REVIEW
1 6
12 14
20 42
56
from the Editor's desk
Driving change through
education and collaboration
This month, Property Review was privileged to talk to several SAPOA members about their
contribution towards upliftment of communities and individuals through education and
enterprise development. Clearly there is transformation beginning at grassroots
C hange in the property sector is
happening – although it could be
happening faster. After speaking to
monitor which pages are being read,
as well as when and for how long.
Being interactive and able to carry
property practitioners about education rich media, we can run a video interview
and transformation in the commercial with you – or if you have a development,
property space, Property Review is happy we can embed your “walk-through”.
to report that some seriously innovative Looking forward to our penultimate
initiatives are being undertaken. edition for the year, the November issue
In an organisational context, of Property Review promises to be “green”.
transformation is a process of profound Like last year, we will be attending the
and radical change that orients an Green Building Council South Africa’s
organisation in a new direction, and annual convention. I’m looking forward
takes it to an entirely different level of to meeting up with people I’ve spoken to
effectiveness. Unlike “turnaround” (which Once again, this month’s Property over the past few months – and, of
implies incremental progress on the same Review has a number of one-on-one course, to reporting back on some of the
plane), transformation implies a change interviews. Our aim is to continue to talk convention’s hot topics.
of character, and little or no resemblance personally to SAPOA’s members, and to From off-grid solar energy to full-on
to the past configuration or structure. find out about their companies, their water reticulation, we’ve already spoken
Clearly there is a huge skills shortage positions and how they are making to SAPOA members whose buildings are
in South Africa, ranging from artisans a success of their business. Green Star-rated, and look forward to
through to white collar management – SAPOA is a member-driven organisation, sharing their stories with you. Thanks to
but that is not all doom and gloom. It’s an so your stories are important to us. Part Property Point (a Growthpoint Properties
opportunity, and industry leaders such of the networking opportunity available initiative), we have also identified two
as Growthpoint, Abcon and GladAfrica to you is that we write a story about your young female entrepreneurs who
are raising and spending millions of rand activities. So no matter how big or small operate in the “green” space. Their youth,
to make a difference and to improve your company is, talk to us – we will write determination and spirit are energising!
employment opportunities. Nearly all all about it after an open discussion! Enjoy this education edition of
of the “big guns” have some kind of By supporting the magazine with Property Review: hopefully it will inspire
initiative – and our education focus this advertising, you are helping maintain you to work with (or through) SAPOA to
month has identified a few. SAPOA has its this communication platform, and also help lead transformation. The property
education programmes and its Bursary gaining phenomenal exposure among sector is ever-changing and dynamic,
Fund, and is leading the discussion with your industry peers. The magazine and it is full of opportunities, career
South Africa’s tertiary institutions and reaches about 8 000 hard-copy readers, options and possibilities.
implementing new programmes. and is distributed directly to key decision- Let’s continue to work together to
Going forward, Property Review is makers within the property industry. make a difference.
looking for these kinds of stories: stories Remember: 90% of commercial property For editorial opportunities, contact me
that show what the industry is doing. owners are SAPOA members. at mark@mpdps.com or Jane Padayachee
This edition is just a taster. I’m looking Then there is the online, interactive – SAPOA’s Marketing Manager – at
forward to coming back to you with our HTML5 version. For a niche industry online marketingmanager@sapoa.org.za. For
December/January edition with more publication, our rising popularity means the 2019 advertising opportunities
success stories. While that edition will that we are getting upwards of 15 000 and rates, contact Pieter Schoeman at
again focus on development and corporate hits a month. Our readers are taking time pieter@mpdps.com
social initiatives, we will angle the articles on our pages (10 to 12 minutes), which
towards CSIs with specific education and means our content is relevant. Thanks Enjoy the read.
internship content. to Google Analytics, we’re easily able to Mark Pettipher, Editor and Publisher
4 SOUTH AFRICAN PROPERTY REVIEW
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SOUTH AFRICAN PROPERTY REVIEW 81
legal update
Key amendments to the
Competition Act that will affect
property merger notifications
1 Much has been written over the past year with regards to the
proposed amendments to the Competition Act No. 89 of 1998 (the
Act). The Competition Amendment Bill 23 of 2018 (the Bill) was first
published in December 2017 and was followed by a revised Bill,
which was introduced to Parliament during July 2018
By Fasken Attorneys Competition Law team:
Neil MacKenzie, Johan Coetzee and Stuart Strachan
2
T he main objectives of the proposed
amendments have, among other
things, been stated to “…address two
●● The extent to which a party is related
(for example, common shareholders
or directors) to another firm in related
persistent structural constraints on the markets; and
South African economy, namely the high ●● Any other mergers engaged in
levels of economic concentration in the by a party for such period as may
economy and the skewed ownership be stipulated by the Commission.
3 4
profile of the economy”.
1 BCX Head Office. Architects: SVA International From the perspective of the property The Bill further proposes additions to
2 Management Team
3 Menlyn Learning Hub. Architects: Boogertman + Partners sector, where numerous property-related the public interest considerations under
4 West Hills Mall in Ghana. Architects: ARC Architects mergers are notified to the Competition Section 12(3) of the Act to include:
Commission (the Commission) and heard ●● The ability of small and medium
by the Competition Tribunal (the Tribunal) business, or firms controlled
on an almost weekly basis, the proposed or owned by historically
amendments to the merger provisions disadvantaged person,
are probably the most noteworthy. to “effectively enter into,
The aim of this note is to give an participate in and expand
overview of key proposed amendments within the market”; and
to the merger provisions contained in ●● The promotion of a greater
Leaders in Quantity Chapter 3 of the Act, then a high-level spread of ownership, in particular
Surveying and
overview of other significant proposed to increase the levels of ownership
amendments to the Act that may be by historically disadvantaged
Property Valuation relevant to the property sector. persons and workers in the
firms in the market.
Proposed amendments
OUR SERVICES: to merger provisions The Bill also proposes amendments to
The Bill proposes additional factors to Sections 15 and 16 of the Act, which will
• Quantity Surveying
Section 12A of the Act, to assist with empower the Commission or the Tribunal
• Management the determination of whether a merger to make any appropriate decision relating
• Dispute Resolution will substantially prevent or lessen to a merger.
• Property Valuation competition. It is also proposed that
additional factors be included when a Intervention in merger proceedings
merger is assessed by the Commission. involving foreign acquiring firm
Associated offices: The aim of these proposed changes is The Bill proposes the introduction of a new
BOTSWANA | GHANA | KENYA | to target concerns regarding creeping Section 18A of the Act, which provides
MAURITIUS | NAMIBIA | NIGERIA | concentration and the maintenance of the President with powers to constitute
TANZANIA | UGANDA strategic barriers to entry. The additional a committee comprised of ministers and
factors include: officials, with powers to intervene in
Johannesburg: +27 (11) 642 8751 ●● The extent of ownership (for merger proceedings where the acquiring
Pretoria: +27 (12) 460 3304 example shareholding) by a party firm is a foreign acquiring firm “which may
WWW.DELQS.CO.ZA to the merger in another firm or have an adverse effect on the national
other firms in related markets; security interests of the Republic”.
6 SOUTH AFRICAN PROPERTY REVIEW
legal update
A foreign acquiring firm is defined as Exemptions ●● Market inquiries will have
an acquiring firm – The Bill proposes that Section 10 of the to be completed within
●● that was incorporated, established or Act be amplified to include: an 18-month period;
formed under the laws of a country ●● Additional grounds for the ●● The Commission’s potential findings
other than the Republic; or Commission to grant an exemption, and actions following completion
●● whose place of effective including competitiveness and of a market inquiry will be binding,
management is outside the Republic. efficiency gains that promote unless challenged in the Tribunal;
employment or industrial ●● A duty will be placed on the
The President must identify and publish a expansion; and Commission to remedy structural
list of national security interests, including ●● A new provision that empowers features identified as having an
markets, industries, goods or services, the Minister to issue regulations adverse effect on competition
sectors or regions in which a merger must exempting an agreement or practice on a market, including the use
be notified to the committee. or a category of agreements or of divestiture orders; and
To determine what may constitute practices from the application ●● Given the far-reaching nature of
“national security interests”, the proposed of the Act. a divestiture order, it is proposed
Section 18A(4) mentions that all relevant that this remedy may only be
information must be considered, Ministerial powers competently imposed by the
including the potential impact of a In addition to the amplified provisions Tribunal on the recommendation
merger on some broad and undefined relating to exemptions, the Minister’s of the Commission.
factors, such as: powers have also been amplified, and
●● The security of infrastructure, are as follows: The way forward
including processes, systems, ●● The Minister will have the Public hearings were held on 28 and
facilities, technologies, networks, ability to appoint one or more 29 August 2018, and comprehensive
assets and services essential full-time or part-time Deputy submissions were made by various
to the health, safety, security or Commissioners who will be stakeholders such as Business Unity
economic wellbeing of citizens responsible for conducting South Africa, the Law Society of South
and the effective functioning market inquiries (in terms of Africa, COSATU and the Black Business
of government; Section 23 of the Act), and one Council. At this stage it seems very
●● The supply of important goods or more persons acting as part- likely that a revised version of the Bill
and services to citizens, or the time members of the Tribunal may be promulgated as legislation in
supply of goods or services (in terms of Section 26 of the Act). early 2019.
to government; ●● The Minister may require that the While several of the Bill’s objectives
●● The Republic’s international interests, Commission conducts a market are laudable, and particular revisions
including foreign relationships; and inquiry in terms of the proposed it suggests to the present law are
●● The economic and social stability amendments to Section 43B very likely to be beneficial, it is hoped
of the Republic. of Act. that Parliament adopts a pragmatic
●● The Minister will also have approach to curtailing those areas of
A merger that is affected by the in terms of the proposed the Bill that run the risk of chilling
provisions of Section 18A must then amendment to Section 45 investment sentiment in South Africa,
be considered by the committee within of the Act, the right to access and clarifying aspects of the Bill that
certain timelines and following certain confidential information. In introduce uncertainty before it is even
prescribed provisions. addition, any other relevant made effective.
It is noteworthy that the appointed Minister and any regulatory
committee will be entitled to: authority may have access to a firm’s
●● Either prohibit the merger; or confidential information, unless the
●● Permit notification to the Tribunal determines otherwise. Neil MacKenzie (Head: Competition)
Commission with or without e: nmackenzie@fasken.com
conditions; and Market inquiries Johan Coetzee (Partner, Real Estate Head
●● Submit the committee’s report and The Bill also proposes that the current and member of the Competition team)
decision to the National Assembly. Section 43A of the Act, which deals with e: jcoetzee@fasken.com
market inquiries, be enhanced in the
Stuart Strachan (Associate: Competition)
Although the proposed Section 18A is following ways, so that: e: sstrachan@fasken.com
contentious, this provision is common in ●● Its outcomes will include
a number of countries. measures to address concentration Fasken
t: +27 (0)11 586 6000
of ownership;
SOUTH AFRICAN PROPERTY REVIEW 7
Even when competition gets tough,
we get the deal done!
At Fasken, our lawyers have the legal know-how in Real Estate, providing
practical solutions to meet changing demands.
Coporate
Employment Litigation Finance & projects
& commercial
+27 11 586 6000 Johannesburg@fasken.com
SOUTH AFRICAN PROPERTY REVIEW 81
www.fasken.comeducation and training
SAPOA launches inaugural
Public Sector Property Programme
For the very first time, SAPOA – in partnership with the University of Johannesburg –
offered the Public Sector Property Programme (PSPP), which ran from 20 to 31 August.
The first batch of delegates to complete the programme are all employed by the
Department of Public Works
Compiled by Maud Nale
In week two of the programme, the
delegates were divided into four groups
and taken for a site visit to JBS Towers in
preparation for their project. At the end
of the project, each group submitted
a report and did a presentation on the
project outcomes.
Projects were judged against
the following elements:
Team members from Group 4 were the overall winners
●● Client identification and needs analysis
●● Market analysis
T his two-week programme has been
tailor-made for delegates already
working in property management in the
●● Property Finance & Investments
●● Green & Environmental Aspects
●● Property Development
●● Legal aspects
●● Rental forecast and discount rate
●● Feasibility and
public sector. The objective of the ●● Property Charter environment conversation
programme is to develop knowledge and ●● Property Economics & Legislation ●● Value opinion and overall report
skills in the public property management ●● Presentation
sectors in South Africa by providing The programme took the form of
an understanding of the key theories formal lectures and interactive case Group 4 emerged as the overall winner
and concepts in property management, studies in the first week, as well as based on the average scores allocated by
finance, legislation and marketing, as individual and group projects in the judges.
well as technology aids in property the second week, which allowed The feedback from the Department of
management and how they are applied team learning. Public Works delegates was that the course
in practical scenarios. The lecturing team included was insightful and that the facilitators
industry-based professionals and two demonstrated in-depth knowledge of
Some of the property-related full-time University of Johannesburg the subject matter. As the first batch
modules included: (UJ) lecturers Andre Kruger and Marno of delegates to successfully complete
●● Property Valuations Booysens, both from UJ’s Department of the programme, SAPOA is committed to
●● Property Management Finance and Investment Management, improving it so more organisations in the
●● Utilities Management Property Valuation and Management. public sector can benefit.
Employees of the Department of Public Works were the very first batch of delegates to successfully complete the Public Sector Property Programme
SOUTH AFRICAN PROPERTY REVIEW 9education and training
KwaZulu-Natal Introduction
to Real Estate course
16 delegates attended the five-day Introduction to Real Estate Course that took place from
20 to 24 August at the Durban Country Club
T he course was aimed at introducing
delegates to real estate as an asset,
a bundle of rights and an industry.
It also introduced the delegates to
the institutions that make up the sector
and whose activities affect the real
estate environment.
The topics covered included Real
Estate Basics, Real Estate Markets (and
their drivers), and Real Estate Business
Processes and Analytical Tools.
The course was facilitated by Professor
Delegates who attended the five-day Introduction to Real Estate course:
Samuel Azasu, who is the Associate BACK ROW, FROM LEFT Thubelihle Buthelezi, Nothando Khuzwayo, Gugu Radebe, Mxolisi Mushi, Fiona Hodge,
Professor and Coordinator of Executive Mandisa Poswa, Ilona Govender, Dale Williams and Lindokuhle Hlatswayo
FRONT ROW, FROM LEFT Sandile Buthelezi, Nonhlanhla Ndaba, Princess Mdlalose, Sthembile Khumalo,
Programmes in Real Estate at the
Professor Samuel Azasu, Theunis Roux, Nangamso Mniki, Akhil Ganesh
University of the Witwatersrand.
Limpopo Tenant Arrears in
Commercial Property Workshop
Limpopo Regional Council held a Tenant Arrears in Commercial Property Workshop
at the Park Inn Hotel in Polokwane on 29 August
T he intense half-day workshop was
held with the aim to assist delegates
in cultivating a broader understanding
agents – to address tenants who default
on their lease obligations. In particular,
the workshop covered issues such as
the landlord’s hypothec and other
forms of security (including suretyships
and collateral security such as notarial
of the various courses of action available rental collections, remedies available bonds), the legislation applicable to
to commercial landlords – and managing for breach of lease, court procedures, the rental property arena (such as the
Companies Act, the Consumer Protection
Act and the Conventional Penalties
Act), and the impact of liquidations
and business-rescue proceedings on
leases. The workshop also offered
valuable insight into recent case law
that impacts directly on the industry.
All of this information was conveyed
in a logical, easy-to-understand and
expert manner.
The course was facilitated by Marlon
A total of 11 delegates (from Knottrox Property Trust, the Moolman Group, Broll SA, Broll – Mall of the North, Shevelew, a practising specialist rental
EduPark, Las Manos Investments 103 (Pty) Ltd and Red Fox Holdings) attended the Tenant Arrears in Commercial
property litigation attorney and Director
Property Workshop, which was held in Polokwane and facilitated by Marlon Shevelew
of Marlon Shevelew and Associates Inc.
10 SOUTH AFRICAN PROPERTY REVIEWeducation and training
KwaZulu-Natal Facilities
Management Course
KwaZulu-Natal Regional
Council held a Facilities
Management Course at the
Coastlands Hotel in Musgrave
from 3 to 7 September
T he intensive five-day course, which
was facilitated by UK professor Brian
Atkins, aimed to enable delegates to
develop an understanding of the theory
of facilities management as well as
the principles and practice of facilities
management by showing how it should
be performed to support core business
functions of client organisations
(primarily business owners).
Companies in attendance included Eris BACK ROW, FROM LEFT Dipesh Jaga, Conrad van Wyk, Ellary Ganasen, Kevin Naidoo, Lindeka Ngubane,
Property Group, Transnet, Redefine, Trade Patricia Bothman, Mondile Mahlasela and Njabulo Sikhakhane
FRONT ROW, FROM LEFT Thoba Tumisi, Cindy Fynn, Mxolisi Mthukushe, Nompilo Sabela and Brian Atkin
& Industry KZN and Delta Property Fund.
When private-public partnership works! Meet the
entrepreneurs who benefit.
The Department of Small Business Development (DSBD) and Property Point have joined
forces to take 16 small to medium-sized, black-owned businesses through a life-changing
enterprise development programme. This programme will provide bespoke business
interventions and facilitate access to markets in order to catalyse business growth and
sustainability.
Luanda Wagener is the Managing Director of JJSL Vukuzakhe Construction which focuses
on tenant installations and maintenance services. This family business started in 2008 after
Luanda was exposed to the world of property development and construction, ‘’I always
had a dream to provide rental or buy to-let affordable accommodation. As I was doing
research I found myself enjoying construction works and that is what made me start my
own business in this industry’’ She explains. Luanda and her Husband and partner Shelton,
have gone through their fair share of growing pains in the business, but they pressed on
and became more resourceful in the times of struggle. ‘’We had to decide at some point on
Luanda Wagener, Managing Director of JJSL
Vukuzakhele Construction whether it was worth pursuing the construction sector or to close our business and get back
into the corporate sector. We persisted even in these difficult times and managed to do
construction project management consulting whilst we were submitting proposals for
construction works
Today Luanda is proud of the progress that has been made over the past 10 years, ‘’our business surely has grown over the years. From zero profits to being
a profitable business and we look forward to it being a more sustainable business’’.Luanda lives by the motto ‘’Kannie groei in die veld. Jy Kan en jy Sal”
which she learned from her late mom ‘’ I can and I will, nothing is impossible!''
Property Point is a Growthpoint Properties initiative which provides entrepreneurs with the skills and personal development support they need to develop
their businesses into fully independent companies. For more information on JJSL contact Luanda on info@jjsl.co.za
SOUTH AFRICAN PROPERTY REVIEW 11SAPOA Education Committee – one on one
Collaboration
key to education
development
Londiwe Mthembu, Managing Director of the Abcon
Foundation, wears two “hats”: she is also SAPOA’s
Education Committee Chairperson. She talks to Property
Review about the Committee’s mandate as well as some
of the initiatives she is driving at Abcon
Londiwe Mthembu,
Managing Director of Abcon Foundation
By Mark Pettipher
“We need to
transform the industry
M any of the qualifications that are
required by the various disciplines
within the property industry need to
days at schools, TVET colleges as well
as universities, in close partnership
with SAPOA and the Property Sector
be accredited by the Estate Agency Charter Council.
by getting more Affairs Board (EAAB). Organisations “We need to transform the industry
involved with learners such as the Property Sector Charter by getting more involved with learners
Council as well as SAPOA member at a younger age,” says Mthembu. “The
at a younger age. The organisations rely on close collaboration property industry has a vast array of
with the EAAB to maintain an opportunities, and a broad church of
property industry has disciplines. I’m amazed at how few
understanding of the changing
a vast array of legislation within the commercial learners and students actually know
property industry. about property and its value chain as
opportunities, and In order to closely align accreditation career options.
a broad church of requirements with real-time industry “Most of the SAPOA member
realities and skills shortages, the SAPOA organisations are committed to utilising
disciplines. I’m amazed Education Committee constantly six percent of their income for skills
discusses and drives facilitation with development or transformation and
at how few learners the EAAB to unlock bottlenecks within education purposes. Imagine what
and students actually the EAAB itself. The Committee also could be achieved if that capital was
discusses the future education, centrally pooled? The property sector is
know about property training and development needs for purported to be a R5,8-trillion industry!
and its value chain as the industry with representatives of
member organisations, and works
career options” closely with a number of South “Opportunities that
Africa’s leading universities that offer are spread across
property courses. industry players through
Added to these responsibilities is
the requirement for the Committee to collaboration will trigger
represent the industry at – and in sustainable solutions in
discussion with – Services SETA. skills development. In the
A critical aspect of the work that
Londiwe Mthembu does is to determine
long term, this will help
the skills gap in the property sector. with the transformation
This also includes driving awareness of the property sector”
of job opportunities through career
12 SOUTH AFRICAN PROPERTY REVIEWSAPOA Education Committee – one on one
“If we could develop better the ability to raise money through the
Abcon Group’s BEE spending allocation.
leadership skills as part of The strategic partners of the Abcon
the current SAPOA-driven Group, directly and indirectly, support
property sector courses, the AGF. The AGF has been set up
to drive the transformation strategy
I’m certain that we would
of the Group by providing B-BBEE
see a greater propensity advisory services and the facilitation
towards transformation of opportunities to invest in skills
development and training, enterprise > SAPOA
– and we would have
and supplier development and socio-
a greater ability to steer economic development. These services
change within our industry” are not limited to the Abcon Group but
are available to our strategic partners
“Take the South African Institute as well.
of Chartered Accountants model of “The funds allow us to have a greater
development as an example. You will impact in the section of industry in
which we are involved. Because we
find that the Institute’s programmes
include the basic requirements of the are collaborating with our partners, SAPOA
CA discipline, together with a large we are able to offer internships and Bursary Students
emphasis on leadership. If we could to swap internship positions in areas
develop better leadership skills as part in which we perhaps don’t have
of the current SAPOA-driven property a vacancy.”
sector courses, I’m certain that we This experience and industry insight
would see a greater propensity towards is something that Mthembu is aiming
transformation – and we would have a to encourage and utilise as part of her
greater ability to steer change within role as the Chairperson of SAPOA’s
our industry. Education Committee.
“Who knows: perhaps by working One issue that forms a common
with the Property Sector Charter thread in both SAPOA’s and Abcon’s
Council, which is driving for a more objectives is the rationalisation of the
pooled resource of funds, we could educational journey that is required
initiate a ‘SAPOA Institute of Education. within the industry. By exploring the
In any event, we should be developing needs more deeply, the ability to
curriculums that address the more deliver bursary schemes, learnerships,
in-depth aspects of the value chains training, apprenticeships and various
that we find across the disciplines within internships is multiplied. Priscilla Menoe
our industry.” This further affords underprivileged
Mthembu revisits SAPOA’s education individuals the opportunity to gain
mission, which indicates a commitment quality education, and at the same
to actively and responsibly represent, time enhances the commercial property
promote and protect the interests of industry’s talent pool.
SAPOA members’ commercial activities. “Opportunities that are spread across
SAPOA is further committed to finding industry players through collaboration
and supporting the most talented people will trigger sustainable solutions to
who will add value to the industry by improvement in skills development,”
providing tertiary educational support says Mthembu. “In the long term, this
through the SAPOA Bursary Fund and will help with the transformation of the
through the contributed Services SETA property sector.”
Bursary Fund.
Speaking from a position of knowledge Londiwe Mthembu
– and from what she is doing as the t: +27 (0)11 510 9999
Managing Director of the Abcon +27 (0)11 510 9973
Nomcebo Nxumalo
Foundation (AGF) – Mthembu says that e: londiwe.mthembu@abland.co.za
within the Abcon Group, “The AGF has w: www.abland.co.za
SOUTH AFRICAN PROPERTY REVIEW 13education – one on one
Engineering education initiatives,
building lives and creating hope
Many members will know GladAfrica as the sponsor of the SAPOA Annual Convention
& Property Exhibition – but probably not for the work it does through the GladAfrica
Foundation for the sustainable upliftment of communities in Limpopo and Mpumalanga
By Mark Pettipher
“The message we want to convey
is that your situation today does
not determine tomorrow; that
N twanano Mashaba is passionate
about the GladAfrica Foundation.
Last-born of three children, she hails
leaders come from a diversity
of backgrounds; and that if you from northern Limpopo and is a qualified
can dream and hope and have Chartered Accountant. Her name
someone who supports your
dream, you too can have
means “unity” – a person who brings
a bright future – and help people together.
make the future bright
The Foundation is the dream of her
for others.”
Ntwanano husband, Noel, who is the Executive
Mashaba, Trustee Chairman of engineering firm GladAfrica
Group, a SAPOA Board Member as well
as the Chairperson of SAPOA’s Ethics
Committee. He wanted to create a
platform to give back to the community
(he himself comes from a village in
Mpumalanga), and asked his wife to join
him in co-chairing the Foundation. And
so their journey began in 2013.
As is the case with many fledgling
institutions, there were initial challenges
to overcome. There were even failures in
the early stages – but from those failures
came the identification of key areas of
focus, including education and career
development, social development
and health research.
“One of the ways in which to
alleviate poverty is by educating
communities,” says Mashaba. “It is
a key area, where children are
exposed to education opportunities
from an early age. By building awareness
of further education, we can empower
them, and in so doing break the
cycle of poverty.”
The Foundation’s website sums
it up as follows: “We believe that
every child, no matter how
destitute the environment in
which they live, should have
the opportunity to dream, the
freedom to hope and a belief in
14 SOUTH AFRICAN PROPERTY REVIEWeducation – one on one
the possibility to become a leader and are adversely affected by unfamiliar and Foundation’s objectives.
help improve the livelihoods of the poor.” misunderstood health conditions. Such “We welcome partners who have
As such the one of the Foundation’s ignorance creates myths, infuses social a vision that’s similar to ours – because
focus areas is to identify learners for stigma and leads to discrimination partnerships are integral to the success
mentorship and study support. This is against those affected. Knowledge and of the Foundation. The aim of partnering
done through partnering with schools awareness can – and do – mitigate the with us is to make a sustainable difference
and exposing learners to opportunities debilitating effects of certain health in our society.
through career days. The Foundation is conditions, and improve the ability of “The Foundation is hands-on, and
targeting learners in Grade 8 through to those afflicted to deal with their illnesses. anyone who partners with us will receive
11, instructing them on requirements “Epilepsy is one such condition – certificates of donation that align with
of pass grades and subjects required to and one that has affected the life of a B-BBEE requirements as well as SARS
gain entrance into engineering courses founder of the Foundation. In its first Section 18A of the Income Tax Act.
at leading universities such as the health-research project, the Foundation “In addition to running the Bursary
University of Johannesburg. is partnering with a research organisation Fund, the career guidance programme
Having identified and earmarked to raise awareness about and assist with and the health awareness objectives,
potential candidates, the Foundation the management of epilepsy in black we also run two annual campaign-driven
provides bursary support, which includes communities. The ultimate aim is to charity initiatives. In June we run a
everything from paying the tuition fees contribute to community understanding ‘donate a blanket for the needy’ initiative,
and accommodation as well as paying and acceptance of stigmatised illnesses while in December we do a ‘Christmas
for the required course literature. and provide individuals with the ability food hamper’ drive.
Once part of the engineering course, to better cope with their conditions.” “The two donation initiatives, while
GladAfrica has also introduced a two-fold Part of developing sustainability not a sustainable objective, aim to at
mentorship programme for students. The within communities is GladAfrica’s social least make a difference in that moment
first part (through the university) is development programme. “We need in time – to bring a smile to a face and
designed to boost students’ confidence to look at the social ills brought about to fill a stomach and a heart with cheer,
by improving communication skills and by poverty within our communities,” however short-lived.”
helping them overcome the feeling of says Mashaba. “We have identified a
being overwhelmed and find themselves
in the Jo’burg environment. In the second
crèche, and we have built amenities
such as toilets and a kitchen. We believe Student
part, students are exposed to real-life work that early childhood development is
key to upliftment. The Foundation is
Testimonials
situations through vocational placement
within the Group, guided by a mentor also helping to train teachers and to
who is on hand to provide one-on-one equip them with the necessary specific
advice on the challenges within the skills to be able to understand early
work environment. child development.”
After being equipped with the necessary Healthcare awareness and education
qualifications and work-environment go hand in hand with social Ndumiso Manzi
skills, the long-term vision for each development. The Foundation seeks out
student is to work for a year within the charities to partner with, to champion
GladAfrica Group, gaining further work- their causes by providing needs-based
related skills. “Coming into our work support such as sanitation and care for
space allows the students to build their the destitute as well as assisting with
loyalty to GladAfrica,” says Mashaba. “It feeding schemes.
also helps them to see that there is a “Each activity is analysed, and models Mukela Mabunda Emarantia Ngomane
career path. and goals are developed and built to
“Awareness of employment is not deliver what is required to benefit Ntwanano Mashaba
the only objective of the career days. the whole community,” Mashaba says. www.gladafricafoundation.com
We also take the opportunity to add Each deliverable, both long- and short-
GladAfrica Group Building
health education into the mix – we term, is sustained by ensuring that each
Hertford Office Park, 90 Bekker Rd,
have a doctor on hand to explain the project has measurable objectives.
Vorna Valley, Midrand, 1686
downside of sexual promiscuity and “We have also partnered with the
+27 (0)11 312 2537
teenage pregnancy. David Makura Charity Fund. Through
+27 (0)11 312 2584
“Millions of South Africans who live an annual sponsored golf day, we are
enquiries@gladafricafoundation.com
in communities where health education able to make contact with members of
www.gladafrica.com
is sparse and poverty is a way of life, society to raise funds for GladAfrica
SOUTH AFRICAN PROPERTY REVIEW 15education
The Property Foundation –
facilitator of local community
skills development
The Property Foundation was established by Gary Fisher in 2009 as a non-profit
company designed to meet physical infrastructure needs of public benefit organisations
in disadvantaged communities
By Marika Truter
With property being my background, that required accommodation. It could
I established TPF with the mandate to be a community centre, it could be an
build for public benefit by helping these education facility. That remains the idea
agencies as they focus on serving people behind the TPF.”
in great need. It is a fact that, almost
without exception, these agencies Project planning
require some physical premises from “Each project goes through a thorough
which to serve their communities. It project assessment stage, where the
is equally a fact that, almost without applicant organisation, the proposed
exception, these agencies lack the project and the risk factors are fully
commercial, technical and financial investigated,” says Fisher. “These include
expertise required to secure (whether looking at intended beneficiaries,
by acquisition, lease or development) local stakeholder analysis, measurable
suitable premises for their operations.” performance indicators and physical
development feasibility and budget,
Gary Fisher, Director Local community skills as well as concept, design, capacity,
“TPF comes alongside these agencies to governance, sustainability and external
provide project management services in risks. An agreement includes that the
“A s South Africa’s socio-economic
landscape has developed post-
1994, some things are, as yet, unchanged;
this regard – including assistance with the
securing of project funding – and as far as
possible aims to facilitate local community
premises will, for a certain period of
time after construction, be used for its
intended purpose, and that it will be
among these is the reality that many skills development by including local adequately maintained.”
communities still live in abject poverty,” tradesmen and professionals in the
says Fisher, providing background to the development process. In addition, we
impetus for establishing The Property focus on environmentally responsible
Foundation (TPF). “Against this backdrop, construction methods and materials, and
there are numerous well-intentioned will take into account carbon footprint
agencies, some in the public and some when possible.
in the private sector, serving these “At that time, the property sector
communities by helping to meet basic itself was trying to find its way in terms
needs ranging from healthcare and of social investment. The Charter
education (both child and adult) to hadn’t been signed yet, and everyone
refuge for vulnerable women and was pulling in different directions, so
children, orphan care and many other I wanted to create a vehicle for the
initiatives designed to benefit those sector to buy into as a collective, where
most in need of help. they could download their CSI dollars
“In the early 2000s, I wanted to into a common base that would then
establish something in the non-profit sector. go out and build for other NGOs
16 SOUTH AFRICAN PROPERTY REVIEWeducation
During the following stage of commitments are upheld and that the Some TPF highlights include:
project management, TPF manages property use is in accordance with the ●● Baphumelele – Fountain of Hope:
the appointment and ongoing services original agreement. Acquisition and development
of the professional development of a property in Schaapkraal,
team, including: Phillipi for use as an orphanage
●● architects and support facility. Rosie
●● engineers Mashale’s inspirational
●● construction contractors dream has pioneered
●● environmental consultants. this exciting project.
●● Thembalitsha – School of Hope:
“TPF also acts as the liaison with the TPF is assisting in locating and
relevant town planning consultants and acquiring suitable premises in
municipal and/or regional authorities Athlone, Cape Town for a school that
where required,” says Fisher. “Through provides hope through education for
relationships with major banks and Youth at Risk.
other sources of finance, we have the ●● Mfuleni Community Park: Acquisition
ability to help successful applicant and development
organisations to raise the capital that’s of a property in Mfuleni to
required for completion of the project, support the community. This
as some lack the skills or resources to included a multi-purpose hall,
do so.” childhood development centre
and library.
Intellectual capital ●● QuadPara Association
“Additionally, the company’s skill and of Western Cape: Development
vast experience in the structuring of and refurbishment of a property
financial arrangements (gained from “TPF aims to facilitate local in Durbanville, which will serve
almost 20 years in both listed and private as QAWC regional office and will
community skills development
property investment management) are provide service facilities for people
not typically found in charitable
by including local tradesmen living with a disability.
organisations. This intellectual capital is and professionals in the
employed to the benefit of successful development process. “Our work is not about BEE transformation,
applicant organisations.” In addition, we focus on but rather about focusing on being good
TPF monitors completed projects citizens and trying to do good,” says Fisher.
environmentally responsible
(and the organisations that benefit “The beneficiaries are disadvantaged
from them) to ensure that they follow construction methods people. Our vision remains the creation
through on the commitments they made and materials, and will take of an enduring and visible legacy of
during the application stage. Monitoring into account carbon footprint participation by the property sector in
continues for a pre-determined period the growth and development of South
when possible”
of time to ensure that maintenance African society.”
SOUTH AFRICAN PROPERTY REVIEW 17SOUTH AFRICAN PROPERTY REVIEW 81
education – one on one
On point
with initiating education
As South Africa’s largest listed property company, Growthpoint is known for its
more than R100-billion portfolio. But how many of us know about its education
and entrepreneurial initiatives, which are contributing to South Africa’s growth
and the upliftment of the less fortunate?
By Mark Pettipher
I f you talk to anyone at Growthpoint
about education and entrepreneurial
initiative, you’ll be directed to Shawn
Scatterlings’ goal is to provide practical
and ongoing teacher training, together
with the provision of daily curriculums
Theunissen, who is the Head of Corporate and teaching materials.
Social Responsibility. He is a member of Theunissen believes that if you train
Growthpoint’s Executive Committee and the practitioner and give them space to
reports to CEO Estienne de Klerk. thrive, the learning that takes place will
If you look at Theunissen’s LinkedIn happen in an effective way. “In addition
profile, you’ll see that his primary role to providing funding and bursaries for
at Growthpoint “as a member of ExCo teachers, we have also assisted in
is to drive business growth for the building classrooms,” he says.
future of the organisation”. He is the While Growthpoint is at the forefront
executive sponsor for developing of aiding education initiatives through
Growthpoint’s internal strategic various partnerships, Theunissen is
planning capability. His role as the particularly proud of the company’s own
Head of Corporate Social Responsibility Growsmart – a leading education initiative
encompasses transformation (diversity Shawn Theunissen, Head of Corporate in collaboration with the Western and
Social Responsibility at Growthpoint Eastern Cape Departments of Education.
and inclusion), enterprise development,
corporate social investment, and the Growsmart is a fun, competitive and
social and ethics function. “We have identified that there is exciting resource that is curriculum-
“We look at an all-encompassing a gap in the ECD practitioner side, so based and helps educators and learners
value chain, from ‘cradle to success’, we have focused some of our support to master their required syllabus work.
so to speak,” says Theunissen. “We on funding organisations that train ECD In February this year, Growsmart
focus on improving the quality of practitioners. One such organisation is the launched its ninth annual programme
education, and we have partnered with Thandulwazi Maths and Science Academy, focused on boosting the literacy,
the government to improve our existing which was initiated by the St Stithians numeracy and science performance of
education system. Foundation in 2005. The Academy was primary school children.
“We realised that, in order to make created to address the critical issues in “The collaborative approach harnesses
an impact, we needed to start making the teaching – and learning – of the resources of Growthpoint’s shopping
a difference at the early childhood mathematics and science in South Africa.” centres in the two provinces, and creates
development (ECD) stage, and follow Growthpoint also works with the a meaningful way for us to make a real,
that through to primary and secondary Loaves and Fishes Network in the positive contribution in our communities,”
education, and further into tertiary Eastern Cape, whose vision is “to achieve explains Jewel Harris, who heads up the
education and skills development. effective, sustainable and holistic Growsmart initiative for Growthpoint.
“We have a long-term philosophy, childcare training and development The programme started out nine
and our approach is to monitor and in disadvantaged communities in the years ago as a humble English spelling
measure the entire education value Eastern Cape”. competition to help boost literacy. Since
chain. In so doing, we are able to realise A third organisation to benefit then, it has helped thousands of children
the impact that our support is having from Growthpoint’s teacher training and hundreds of teachers, and has been
on individual lives – and, beyond, on development is Scatterlings, a relatively expanded to include literacy, writing,
the economy.” new player in the South African ECD sector. maths and science.
SOUTH AFRICAN PROPERTY REVIEW 19You can also read
