[{"groupId":"0bb0bbfa7b054b2e90e58bde253714dd","contentId":"79190f720e274359861861f6c6739a6a","body":"<!DOCTYPE html> <html> <head> </head> <body> <p>Abland has announced five new developments to start soon in their 72 hectare Atlantic Hills Business Park in Cape Town. The park offers direct access to the M12 with an immediate connection to the N7 thus providing them with easy access to the Cape Town Harbour.</p> <p>The first four developments are being developed on behalf of POD Property Fund, with a total value of R300 million.</p> <p>Time Link, Hi Calibre, Brand In-Store and Symphony Forwarding SA, were completed in March 2019 and this month construction commenced on the additional developments of 11,000m&sup2; and 8,000m&sup2; which are being built for future tenants.</p> <p>The final 17000m2 cold storage and head office development for South Africa Fruit Terminals (SAFT) boasts 20 air locked loading as well as both rapid and sterilisation cooling tunnels with a 5 500 pallet capacity.</p> <p>&ldquo;We are extremely pleased with the progress of the development at Atlantic Hills. The business park has large tracts of serviced land that can be developed for large warehouses or can be subdivided for smaller warehouses. This gives us flexibility to develop buildings to the exact specification of the tenant. Industrial tenants are also attracted to the business park due to its high visibility, convenient location close to Durbanville, Milnerton and Plattekloof, and excellent transport links for logistics companies to Cape Town Harbour,&rdquo; says James Cresswell, Cape Regional Director, Abland.</p> <p>Atlantic Hills is situated on the Potsdam interchange giving direct access onto the M12 and M13 and immediate access onto the N7. Furthermore, the development will be integrated into the City of Cape Town&rsquo;s Integrated Transport System providing public transport access from Milnerton, Parklands, Plattekloof and Durbanville.</p> <p>Abland will roll out the development of the remaining warehouses and expects the 72 hectare Atlantic Hills Business Park to be fully completed in 2023.&nbsp;</p> <p>If you are interested in an opportunity for your business in Atlantic Hills Business Park, feel free to contact Rob Odendaal for more details on 021 673 1241 or rob.o@sircomm.co.za.</p> </body> </html>","category":"General","createdAt":"2019-07-03T08:40:16.784Z","publishedAt":"2019-07-03T08:30:00Z","summary":"Abland has announced five new developments to start soon in their 72 hectare Atlantic Hills Business Park in Cape Town. ","title":"Atlantic Hills secures five new developments","updatedAt":"2019-07-03T09:53:33.449Z","thumb":"https://s3.entegral.net/news/Thumb_2019_07_03_09_53_33_324.jpeg","tags":["investment","buying"],"url":"general/atlantic-hills-secures-five-new-developments-03-07-19","gallery":[{"url":"https://s3.entegral.net/news/Gallery_2019_07_03_08_40_16_628.jpeg"},{"url":"https://s3.entegral.net/news/Gallery_2019_07_03_08_40_16_721.jpeg"}]},{"groupId":"0bb0bbfa7b054b2e90e58bde253714dd","contentId":"9140c00011d84761a08aae2d1038901c","body":"<!DOCTYPE html> <html> <head> </head> <body> <p>With the Department of Public Works and Infrastructure (DPWI) who is a large property owner, the South African Property Owners Association (Sapoa) is hoping that Patricia de Lille , the DPWI&rsquo;s newly appointed minister, comes up with a plan to unlock opportunities within its immense property portfolio.</p> <p>According to Moneyweb, Sapoa CEO Neil Gopal said the association is looking to build a closer working relationship with the expanded department under De Lille.</p> <p>&nbsp;&ldquo;We welcome the appointment of minister De Lille. We believe she is well suited to this role and we intend to work closely with her as she fully understands the commercial principles behind this portfolio to effectively achieve government&rsquo;s wider socio-economic mandate.&rdquo;</p> <p>Gopal added that Sapoa, as the voice of the commercial property sector in SA, had already built a strong working relationship with De Lille when she was mayor of the City of Cape Town.</p> <p>&ldquo;The DPWI as well as the Cooperative Governance and Traditional Affairs Department, which is responsible for municipalities under Dr Nkosazana Dlamini-Zuma, are critical departments for the commercial property sector to operate and prosper.</p> <p>&ldquo;Minister De Lille&rsquo;s department is the custodian of thousands of buildings covering millions of square metres of floor space across the country, which runs into billions of rand.&rdquo;</p> <p>&ldquo;While the department is one of the biggest property owners in the country, not all of it is &lsquo;sexy&rsquo;, with many buildings in a dilapidated state,&rdquo; says Gopal. &ldquo;Some of these properties are in strategic locations such as city CBDs that could unlock commercial development value and other opportunities.</p> <p>&ldquo;Government is sitting on a lot of properties that could generate annuity income for it. It could be a win-win for the government and the property sector if these opportunities are unlocked.&rdquo;</p> <p>Sapoa&rsquo;s leadership has already interacted with De Lille a few times since her appointment, including last week on the sidelines of the Sapoa Convention.</p> <p>Sapoa president Ipeleng Mkhari commented in her outgoing speech at the recent SAPOA&nbsp; convention that she was happy to hear from minister De Lille about her keenness around public-private partnerships (PPPs) to unlock opportunities and new infrastructure within the DPWI&rsquo;s property portfolio.</p> <p>&nbsp;&ldquo;We want to engage with both the public works and cooperative governance departments on matters that affect our industry,&rdquo; she said. &ldquo;With cooperative governance, for example, we are really concerned about the unsustainable increases in property rates by municipalities across the country over the years.&rdquo;</p> <p>Mkhari noted that rates and taxes represented the highest escalating cost element for the commercial property industry after electricity.</p> <p>&nbsp;</p> </body> </html>","category":"General","createdAt":"2019-06-26T08:24:01.161Z","publishedAt":"2019-06-26T08:30:00Z","summary":"Sapoa hopeful De Lille will unlock property opportunities as she is said to be in favour of public-private partnerships.","title":"Public works minister De Lille said to be in favour of public-private partnerships.","updatedAt":"2019-06-26T08:28:27.186Z","thumb":"https://s3.entegral.net/news/Thumb_2019_06_26_08_24_00_989.jpeg","tags":["investment"],"url":"general/public-works-minister-de-lille-said-to-be-in-favour-of-public-private-partnerships-26-06-19","gallery":[{"url":"https://s3.entegral.net/news/Gallery_2019_06_26_08_25_51_127.jpeg"}]},{"groupId":"0bb0bbfa7b054b2e90e58bde253714dd","contentId":"e5a321c5d57e485b894c7005b2a8378b","body":"<!DOCTYPE html> <html> <head> </head> <body> <p>Property Market, am I in or out? &ndash; By Jack Bass, Director at <a href=\"http://www.sircomm.co.za\">Sothebys Commercial</a></p> <p>I recently attended a talk at a well-known national investment management company, hosted by a friend who runs a financial planning business. The main direction of the advice given, naturally, was to invest in the market. When I raised the question of property as an investment, the response was, &ldquo;see how poorly the sector is doing&rdquo;. I guess that was in line with the JSE performance of 2018. States Jack Bass</p> <p>In the discussion that followed, I mentioned that, personally, I didn&rsquo;t know of an overall return as good as real estate especially when applied to certain cities like Cape Town. There are opportunities to actually own an asset, receive income on it, or ROI, at an understandable quotient. Then you can watch its almost year on year appreciation, slowly initially, but gathering weight over several years.</p> <p>So What would constitute as an intelligent commercial property investment?</p> <p><span lang=\"EN-GB\">It is important to realise the risks involved but if you need to accept an element of risk in order to reap lucrative returns. There is also a large capital outlay with banks usually only loaning 60-70% loan to value.</span></p> <p><span lang=\"EN-GB\">Another variable which needs careful consideration is that there is no exact or predetermined timeframe within which the investor will be able to recoup his initial investment which could give rise to liquidity concerns if it is not properly factored into the risk equation.</span></p> <p><span lang=\"EN-GB\">When committing to a commercial property investment it must be understood that for optimal returns, it needs to be a long-term investment. </span></p> <p><span lang=\"EN-GB\">It is necessary for an investor to be cognisant of the prevalent trends, so market research is needed in order to make the best investment and achieve the maximum return. Do your due Diligence on the building, when are the leases expiring, what is the rental escalation year on year, who is liable for what costs.</span></p> <p><span lang=\"EN-GB\">Market research should help the investor become aware of, as well as understand, the genuine overarching trends in the market. This will ensure that the investor does not operate within a limited field of information.</span></p> <p>The question is &ldquo;can I do it&rdquo; and the answer is, with some capital, market investigation, knowledge, and assistance from a seasoned professional property broker the answer is &ldquo;yes you can&rdquo;.</p> <p>Not everyone succeeds in these endeavours, but that applies to any business endeavour. However, the risk in property, in my opinion, considering all the factors, is lower than most other asset classes and the returns, if you buy wisely, can be vast.</p> <p class=\"MsoNormal\" style=\"margin-bottom: 11.25pt; line-height: normal; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;\"><span style=\"mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; color: #515b6d;\">&nbsp;Properties for sale:</span></p> <p class=\"MsoNormal\" style=\"margin-bottom: 11.25pt; line-height: normal; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;\"><span style=\"mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; color: #515b6d;\"><a href=\"https://www.sircomm.co.za/century-city-office-for-sale-1854377\">https://www.sircomm.co.za/century-city-office-for-sale-1854377</a></span></p> <p class=\"MsoNormal\" style=\"margin-bottom: 11.25pt; line-height: normal; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;\"><span style=\"mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; color: #515b6d;\"><a href=\"https://www.sircomm.co.za/claremont-office-for-sale-1852554\">https://www.sircomm.co.za/claremont-office-for-sale-1852554</a></span></p> <p class=\"MsoNormal\" style=\"margin-bottom: 11.25pt; line-height: normal; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;\"><span style=\"mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; color: #515b6d;\"><a href=\"https://www.sircomm.co.za/noordhoek-office-for-sale-1854405\">https://www.sircomm.co.za/noordhoek-office-for-sale-1854405</a></span></p> <p class=\"MsoNormal\" style=\"margin-bottom: 11.25pt; line-height: normal; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;\">&nbsp;</p> <p class=\"MsoNormal\">&nbsp;</p> <p class=\"MsoNormal\">&nbsp;</p> </body> </html>","category":"General","createdAt":"2019-04-02T08:41:29.279Z","publishedAt":"2019-04-02T08:00:00Z","summary":"Jack Bass, Director at Sothebys Commercial, discusses whether to invest in commercial property.","title":"Property Market, am I in or out? – By Jack Bass, Director at Sothebys Commercial","updatedAt":"2019-04-02T09:22:28.004Z","thumb":"https://s3.entegral.net/news/Thumb_2019_04_02_09_22_27_848.jpeg","tags":["investment"],"url":"general/property-market-am-i-in-or-out-by-jack-bass-director-at-sothebys-commercial-02-04-19","gallery":[{"url":"https://s3.entegral.net/news/Gallery_2019_04_02_08_41_29_201.jpeg"}]},{"groupId":"0bb0bbfa7b054b2e90e58bde253714dd","contentId":"6cc140f50b9f429b8e0a12cae1df38cf","body":"<!DOCTYPE html> <html> <head> </head> <body> <p class=\"MsoNormal\">It&rsquo;s a well-known fact, in the property world, that over time usage and people flow change within a town, area, industrial/commercial, node. Cape Town is no exception and has recently seen some very interesting changes in this regard:</p> <p class=\"MsoNormal\">&nbsp;Internationally in many port cities, what once was a grimy old working harbour is now a cosmopolitan hub of retail/commercial/residential and entertainment. San Francisco, Sydney, Baltimore, London Thames, Shanghai, and Cape Town&rsquo;s very own Waterfront, have shown that with smart development, careful planning and top management, these redevelopments cannot just spin big money, kick start 100&rsquo;s of related businesses and industries, but can actually transform a city!</p> <p class=\"MsoListParagraphCxSpFirst\">&nbsp;</p> <p class=\"MsoListParagraphCxSpMiddle\">The Waterfront has proven to be one of the most successful such ventures, not just in South Africa, but internationally, especially given our size and diverse population. It has also had a knock-on effect of regentrification of areas bordering the harbour and adjacent areas like Woodstock, Salt River and the CBD. It is currently spilling over with rapid changes happening in Paarden Eiland.</p> <p class=\"MsoListParagraphCxSpMiddle\">&nbsp;</p> <p class=\"MsoListParagraphCxSpMiddle\">Very recently, a newly listed REIT announced plans for a large development in Paarden Eiland which will encompass retail, commercial, hospitality and residential spaces. The views from the 4th floor and above, on the Marine Drive properties, are spectacular. One would have to agree that this forward thinking is exactly where it&rsquo;s at. I have long thought that Paarden Eiland is ripe for change, and this first project is only the start!&nbsp; Others will be sure to follow.</p> <p class=\"MsoListParagraphCxSpMiddle\">&nbsp;</p> <p>&nbsp;</p> <p class=\"MsoListParagraphCxSpLast\">As the winds of change gather speed, we will see many &ldquo;old&rdquo; areas of Cape Town changing fast; even as far afield as Simons Town and Kalk Bay. I&rsquo;m guessing that once the winds of change get going, we&rsquo;ll see many changes yet to come in the &ldquo;Fairest Cape&rdquo;</p> </body> </html>","category":"General","createdAt":"2019-03-04T08:57:32.303Z","publishedAt":"2019-03-04T09:00:00Z","summary":"It’s a well-known fact, in the property world, that over time usage and people flow change within a town, area, industrial/commercial, node. Cape Town is no exception and has recently seen some very interesting changes in this regard","title":"Winds of change are blowing","updatedAt":"2019-04-02T09:21:59.067Z","thumb":"https://s3.entegral.net/news/Thumb_2019_03_04_08_57_32_068.png","tags":["investment","buying"],"url":"general/winds-of-change-are-blowing-04-03-19","gallery":[{"url":"https://s3.entegral.net/news/Gallery_2019_03_04_08_57_32_162.jpeg"}]},{"groupId":"0bb0bbfa7b054b2e90e58bde253714dd","contentId":"5b63da9a2a9d490794d6118f8a8a60a1","body":"<!DOCTYPE html> <html> <head> </head> <body> <p>The new Discovery global headquarters in Sandton Central has become the largest new build project to receive a five-star Green Star rating by the Green Building Council South Africa (GBCSA).</p> <p>Developed in a joint venture by Growthpoint Properties Limited and Zenprop Property Holdings, the new 112 000m&sup2; resource-efficient, cost-effective and environmentally-innovative Discovery head office is the largest single-phase commercial office development in Africa.</p> <p>From its design to construction and operation, sustainable development has been a key priority for Discovery, Zenprop and Growthpoint.</p> <p>Growthpoint Properties office division director, Rudolf Pienaar, says: &ldquo;The new Discovery head office is now among the most environmentally sustainable and efficient buildings in SA. Green building plays a key role in providing spaces in which businesses can thrive.&rdquo;</p> <p>Zenprop Property Holdings chief executive, James Tannenberger, says: &ldquo;This is a significant milestone for Zenprop, which has been involved with developing Green Star buildings since the commercial rating tool was first launched in SA in 2008. We are extremely satisfied with what the development team as a whole has been able to achieve on a project of this magnitude and profile.&rdquo;</p> <p>GBCSA executive director: certifications, Manfred Braune, says: &ldquo;It is the largest new building certified as Green Star to date in SA. It&rsquo;s a remarkable achievement, as a five-star Green Star rating for a building of this size would have been a challenge to achieve. The combination of low-tech and hi-tech is outstanding, ensuring the perfect marriage of load reduction through passive features with technology that ensures optimal efficiency.&rdquo;</p> <p>Aurecon is responsible for overseeing the delivery of the developers&rsquo; and Discovery&rsquo;s green intent for the building. Their role has been to ensure it has been designed and constructed with the highest sustainability credentials to demonstrate leadership in the transformation of the South African real estate industry.</p> <p>Features of the new building which have contributed to the rating include energy optimisation through the advanced design features of its envelope and building services. High-efficiency air conditioning that leverages an outside air economy cycle and indoor air CO2 monitoring. Added to this is low-energy lighting, occupant control and daylight optimisation, as well as the building&rsquo;s standout high-performance double-glazed curtain wall.</p> <p>The building is wrapped around a series of sunlit atria that plug into a central concourse. The design of the atria and skylights result in an abundance of natural light without compromising occupants&rsquo; comfort and energy performance. Grey and rainwater systems, efficient sanitary fittings, efficient irrigation system and water-wise landscaping contribute to the building&rsquo;s optimal water performance.</p> <p>Yovka Raytcheva-Schaap, the Aurecon associate for environmentally sustainable design consulting and project management for the project, says that, most notably, the Discovery building creates an environment that is centred on occupants&rsquo; health and well-being.</p> <p>Raytcheva-Schaap says: &ldquo;The design provides for an ample amount of fresh air, thermal comfort, daylight and connection to the exterior. A gym, a running track, yoga decks and multipurpose courts are set in the indigenously landscaped roof and encourage an active lifestyle, in line with the Discovery Vitality ethos.&rdquo;</p> <p>Aurecon&rsquo;s Martin Smith says the expansive ground floor of the building accommodates Discovery&rsquo;s retail partners, client services, walk-in centre, staff restaurants and coffee shops, offering an energising experience to visitors and staff.</p> <p>Smith says: &ldquo;Upper floor plates, designed for activity-based working, enhance staff collaboration, enjoyment and business efficiency.&rdquo;</p> <p>Located on the corner of Rivonia Road and Katherine Street, diagonally opposite Sandton City and one block from the Sandton Gautrain Station, the building comprises three linked office towers which consist of a ground floor, eight office floors and a roof level, which holds Discovery&rsquo;s sports facilities. It will also offer nine basements with over 5 000 parking bays.</p> <p>Discovery is expected to take occupation of the property towards the end of this year.</p> </body> </html>","category":"General","createdAt":"2019-01-08T07:35:49.751Z","publishedAt":"2019-01-08T07:30:00Z","summary":"The new Discovery global headquarters in Sandton Central has become the largest new build project to receive a five-star Green Star rating by the Green Building Council South Africa (GBCSA).","title":"New Discovery head office is certified green","updatedAt":"2019-01-08T07:35:49.751Z","thumb":"https://s3.entegral.net/news/Thumb_2019_01_08_07_35_49_547.png","tags":["investment"],"url":"general/new-discovery-head-office-is-certified-green-08-01-19","gallery":[{"url":"https://s3.entegral.net/news/Gallery_2019_01_08_07_35_49_672.jpeg"}]},{"groupId":"0bb0bbfa7b054b2e90e58bde253714dd","contentId":"c50f2ef2af0a4beba136b9152cb8a599","body":"<!DOCTYPE html> <html> <head> </head> <body> <p>While the Residential Property Sector caught much of the attention during its &ldquo;bubble&rsquo; period from around 2000 to 2008, and was regarded as the &ldquo;expensive&rdquo; property category for a while thereafter, it appears to be the Retail Property Sector that has been the &ldquo;outperformer&rdquo; of the major property sub-sectors over a longer period spanning 2 to 3 decades, and especially in the most recent decade or so. In the process, this sector has become relatively &ldquo;expensive&rdquo; in every way, great from an investor return point of view, but posing a risk in terms of lifting the incentive for more retailers to look for more cost-effective alternatives.</p> <p>A long period of consumer strength has seen the retail property being the top performing sector over the past 20 to 30 years&nbsp;</p> <p>We have become used to certain categories of retail property experiencing lower capitalization rates than any other major property categories, most notably the larger categories of shopping centre such as regional shopping centres.. It wasn&rsquo;t always that way. Back when Rode&rsquo;s Capitalisation Rate (or &ldquo;Cap Rate&rdquo;) data started in the late 1980s, Witwatersrand Regional Shopping Centre Cap Rates averaged 9.8% at the start of 1988, over 30 years ago. By comparison, Joburg CBD A Grade Office Space also had an average cap rate of 9.8%, and Sandton A-Grade Space a slightly lower average of 9.7%. Retail Property was thus not the clearly favoured property class in the Johannesburg region, and the same was true for other major regions such as Cape Town and Durban.</p> <p>Over the past 3 decades or so, however, Retail Property has outperformed the Industrial and Office Property Segment, and more recently even Residential, it would appear.</p> <p>By the 2nd quarter of 2018, Wits Regional Shopping Centre Cap Rates were 7.7%, according to Rode surveys, well below&nbsp; Sandton A-Grade Office Leaseback&rsquo;s 8.9%, Central Wits Prime Industrial&rsquo;s 9%, and well-ahead of the now-less favoured Joburg &ldquo;CBD&rsquo;s A-Grade Office Sector&rsquo;s 9.8%. Even Witwatersrand Community Shopping Centre Capitalisation Rates, at 8% in the 2nd quarter of 2018, are lower than both Sandton and Joburg CBD A-Grade Office Space Cap rates today, which was not the case 30 years ago.</p> <p><strong>Viewing performance over the past 22 years</strong></p> <p>More recently, from 1995, we have MSCI data, which provides actual estimates of capital values for the major Commercial Property categories. Taking a view of Commercial Property Sector performance over the entire 22-year period from 1996 to 2017, using this MSCI data, the Retail Property Sector appears to run far stronger than the other major property sectors.</p> <p>Viewing the Average Capital Value Per Square Metre by property segments, Retail Property&rsquo;s cumulative rise has far exceeded that of the Office and Industrial Segments over the past 22 years.</p> <p>Using 1995 as the base year, the Average Capital Value Per Square Metre for Retail Property is estimated to have risen by a massive 877.4% over the 22-year period 1996 to 2017.</p> <p>By comparison, the Industrial and Warehouse Sector had a more modest increase of 544.8%, and Office Space 523.0%.</p> <p>Although estimates of average house price growth are not exactly comparable, because they are done on a per unit basis instead of a per square metre basis, it would appear that Retail Property has even outperformed Residential Property over 2 decades. Our FNB Long Term House Price Index has inflated by a lesser 670.0%, the Residential Market having run &ldquo;neck and neck&rdquo; with Retail capital growth up to 2008, but &ldquo;underperforming&rdquo; thereafter</p> <p>In real terms, using economy-wide price inflation (as measured by the GDP Deflator) to adjust for &ldquo;general inflation&rdquo; in the economy, Retail Property&rsquo;s rise in Average Capital Value per Square Metre was an impressive 117.3% from 1996 to 2007, Residential 71.4%, Industrial Property 43.4% and Office Space 38.5%.</p> <p>It may be argued that the true performance of a property class should be measured using data which estimates capital growth net of capital expenditure on the properties over the period.</p> <p>Even by this measure (not possible to do for residential given the data available), Retail Property strongly outperformed, with cumulative capital growth net of capital expenditure totaling 342.5% from 1996 to 2017, compared to 149.8% in the case of Industrial Property and 78.1% for Office Space.</p> <p>In ways other than capital value, Retail Property has also seen its affordability deteriorate significantly more than the other 2 major commercial property classes.</p> <p>Its Operating Cost/Square Metre has risen cumulatively by 908.1% from 1996 to 2017, compared to Industrial Property&rsquo;s 696.8% and Offices&rsquo; 400.8% over the same period.</p> <p>Most important, is that this cumulative operating cost inflation has far outpaced economy-wide inflation as measured using a GDP Deflator. Therefore, even in real terms, Retail Operating Cost/Square Metre as at 2017 was a massive 124.14% above its 1995 level (albeit starting to moderate), whereas Industrial was a more modest 77.17% higher and Office Space a marginal 11.34% higher. Sharp Municipal rates and Electricity Tariffs increases have been key contributors here.</p> <p>The strong capital expenditure and operating cost growth could be sustained over the period due to a high level of &ldquo;pricing power&rdquo; of shopping centres, as reflected in the cumulative inflation rate in retail base rentals to the tune of 720.9% over the 22 year period, compared to 348.2% for Industrial Property and 317.1% for Office Space.</p> <p>The cumulative result of this strength in Retail Property&rsquo;s &ldquo;pricing power&rdquo; over the past 22 years was that it was had the top average per annum total return of all the Commercial Property Sectors over the 1996 to 2017 period, measuring an average annual 16.2% total return, followed by Industrial Property&rsquo;s 15.4% and Office Property&rsquo;s 12.7%.</p> <p><strong>Conclusion</strong></p> <p>In short, for a few years following the end of the pre-2008 property boom, there was a perception amongst some that it was the Residential Property Market that had &ldquo;overshot&rdquo; the mark the most during those prior boom years, while Commercial Property remained relatively &ldquo;cheap&rdquo;. That may still be so in the case of Office Property, and even to a lesser extent Industrial Property. However, Retail Property began to outpace Residential Property significantly after the 2008/9 recession, and appears to have become SA&rsquo;s &ldquo;expensive&rdquo; property category.</p> <p>Given the data available, the Retail Property Sector appears to have been the strongest &ldquo;cumulative&rdquo; performer of the 3 major Commercial Property Sectors over the past 22 years from 1996 to 2017, according to MSCI historic data, and possibly even over the past 30 years judging by Rode&rsquo;s Cap Rate data.</p> <p>It has achieved superior capital growth even excluding all the capital expenditure on properties over the years.</p> <p>The Retail Sector&rsquo;s Operating Cost per square metre has also outpaced the others, as well as far outpacing general economy-wide price inflation. The Sector has been able to recoup much of its capex and rise in operating costs through its recoveries as well as having the strongest rental inflation rate over the 2-decade period too.</p> <p>However, having entered a more stagnant economic period in recent years, the big question is whether this general affordability deterioration in the Retail Property Sector hastens the search for cheaper alternatives for retailers, notably online retail as well as greater use of Warehouse Property?</p> </body> </html>","category":"General","createdAt":"2019-01-08T07:24:40.907Z","publishedAt":"2019-01-08T07:30:00Z","summary":"A long period of consumer strength has seen the retail property being the top performing sector over the past 20 to 30 years ","title":"Which major property sector has performed best over the past 2 to 3 decades?","updatedAt":"2019-01-08T07:24:40.907Z","thumb":"https://s3.entegral.net/news/Thumb_2019_01_08_07_24_40_719.png","tags":["buying","investment"],"url":"general/which-major-property-sector-has-performed-best-over-the-past-2-to-3-decades-08-01-19","gallery":[{"url":"https://s3.entegral.net/news/Gallery_2019_01_08_07_24_40_844.jpeg"}]},{"groupId":"0bb0bbfa7b054b2e90e58bde253714dd","contentId":"f9adbd3b86e8497f9f4e93f791129f9b","body":"<!DOCTYPE html> <html> <head> </head> <body> <p>Looking for real estate investment opportunities around the world? The secret is to think &ldquo;smart&rdquo;.</p> <p>&nbsp;The term &ldquo;smart city&rdquo; is coming up more and more frequently in real estate and investment circles. Cities either claim to be or are aspiring to be smart. Although there is no set definition for what this entails, cities that come close to achieving this ideal usually exhibit a strong degree of technological integration, environmentally friendly policies and solutions, and an intelligent approach to town planning and the delivery of transport infrastructure.</p> <p>&ldquo;For these reasons, so-called smart cities around the world represent a compelling investment opportunity,&rdquo; says George Radford, Director of Africa at IP Global. &ldquo;They are the places where people want to live, work and play, and the well-thought-out approach to their expansion means that they will continue to flourish as they grow.&rdquo;</p> <p>In South Africa, both Johannesburg and Cape Town aspire to become smart cities. At the current time, their focus is most keenly observed in the delivery of forward-thinking transport routes, and these are definitely delivering investment opportunities in new areas. The spike in development around the Gautrain Station in Rosebank, Johannesburg, and the additional station planned for Waterfall Estate are examples of how this kind of infrastructure can make all the difference to the future of an area.</p> <p>The multiple transport routes in Woodstock, Cape Town, including a MyCiti bus route, a railway station and cycle lanes, have also contributed to the suburb&rsquo;s thriving development, including various mixed-use structures, allowing residents to live, work and play &ndash; all on their doorstep.</p> <p><strong>Cities integrating technology into services</strong></p> <p>Looking ahead, the roll-out of 5G infrastructure, which supports futuristic applications like augmented reality and driverless cars, will be rolled out commercially as early as 2019 in South Africa. On the back of this advanced network, smart solutions will really begin to flourish locally.</p> <p>The integration of digital solutions with local services is a significant contributor to cities being smart. For instance, according to a report by The Economist called &ldquo;Empowering Cities&rdquo;, Singapore&rsquo;s system of privately operated buses uses the Beeline app, a technology that allows residents to book seats on buses run by private operators in areas that are not served by public transportation.</p> <p>The app not only helps citizens to get around and allows them to suggest future bus routes, but it also allows the Government Digital Services team at Singapore&rsquo;s Infocomm Development Authority to predict demand to improve bus schedules and routes.</p> <p>Another city highlighted, Barcelona, uses Urban Lab Dynamic Traffic Forecasting to combine video and analytics to provide real-time data on parking availability. This information is transmitted through the city&rsquo;s Wi-Fi infrastructure, providing information to end users and the local authorities.</p> <p>The Economist&rsquo;s report also stated that city citizens say digital technology has transformed their lives in many ways, including telecoms (36%), transportation (31%), crime prevention (21%) and social services such as healthcare and education (21%).</p> <p><strong>New smart cities can alleviate population influx</strong></p> <p>Some smart cities are built from the ground up, rather than being retrofitted for the purpose. &ldquo;As we are seeing more and more people moving into cities, existing infrastructures are struggling to cope with this influx,&rdquo; says Radford. &ldquo;What some governments are doing is focusing on infrastructure growth in new areas, and giving people a reason to settle in these zones.&rdquo;</p> <p>In China this year, the Central Government announced that it would be establishing a new administrative region called Xiongan New Area near Beijing. The area would be a modern, green and smart city, which would alleviate some of the strain on the services in the capital. The government has displayed its commitment to the development of the new area by relocating some of its functions and people out of Beijing, and supporting the development of green and high-tech industries there.</p> <p>Radford points out that this type of focus means that Xiongan New Area will be launched with an existing consumer market and economy, which means that other people, services and businesses will follow. &ldquo;This is &lsquo;smart&rsquo; in its simplest form &ndash; laying the groundwork now for the solution to problems in the future.&rdquo;</p> <p><strong>Smart cities focus on sustainable power</strong></p> <p>&lsquo;Green&rdquo; solutions also form a significant part of the definition of smart. &ldquo;Around the world, city authorities are encouraging citizens to install sustainable power solutions, lessening their reliance on the local grid, and in some cases, even selling power back to the municipality. In many cases, smart cities don&rsquo;t just provide the services that their citizens want, they provide incentive for their citizens to solve problems for themselves, and possibly even use their solutions to in turn support government,&rdquo; says Radford.</p> <p>These types of cities are showing the way to the future. Radford believes that they represent excellent investment potential because they will enjoy sustainable growth in the decades to come, while still ensuring that their citizens&rsquo; quality of life is maintained, and economic participation is assured.</p> <p>Whether local or international, as new infrastructure enables the development of cities of the future, investors should look out for the opportunities they present. &ldquo;The smart future of South Africa is looking up,&rdquo; says Radford. &ldquo;Whether you are investing in property around smart nodes here, or looking to smart cities on the international landscape, you can&rsquo;t go wrong investing in these forward-thinking locations.&rdquo;</p> <p>The world&rsquo;s smartest cities according to the IESE Cities in Motion Index 2017 are:</p> <p>1. New York<br />2. London<br />3. Paris<br />4. Boston<br />5. San Francisco<br />6. Washington<br />7. Seoul<br />8. Tokyo<br />9. Berlin<br />10. Amsterdam&nbsp;</p> </body> </html>","category":"General","createdAt":"2019-01-08T07:33:06.301Z","publishedAt":"2019-01-08T07:30:00Z","summary":"Looking for real estate investment opportunities around the world? The secret is to think “smart”.","title":"5G could ignite smart city development in SA","updatedAt":"2019-01-08T07:33:06.301Z","thumb":"https://s3.entegral.net/news/Thumb_2019_01_08_07_33_05_895.png","tags":["buying","investment"],"url":"general/5g-could-ignite-smart-city-development-in-sa-08-01-19","gallery":[{"url":"https://s3.entegral.net/news/Gallery_2019_01_08_07_33_06_207.jpeg"}]}]
[{"groupId":"0bb0bbfa7b054b2e90e58bde253714dd","contentId":"79190f720e274359861861f6c6739a6a","body":"<!DOCTYPE html> <html> <head> </head> <body> <p>Abland has announced five new developments to start soon in their 72 hectare Atlantic Hills Business Park in Cape Town. The park offers direct access to the M12 with an immediate connection to the N7 thus providing them with easy access to the Cape Town Harbour.</p> <p>The first four developments are being developed on behalf of POD Property Fund, with a total value of R300 million.</p> <p>Time Link, Hi Calibre, Brand In-Store and Symphony Forwarding SA, were completed in March 2019 and this month construction commenced on the additional developments of 11,000m&sup2; and 8,000m&sup2; which are being built for future tenants.</p> <p>The final 17000m2 cold storage and head office development for South Africa Fruit Terminals (SAFT) boasts 20 air locked loading as well as both rapid and sterilisation cooling tunnels with a 5 500 pallet capacity.</p> <p>&ldquo;We are extremely pleased with the progress of the development at Atlantic Hills. The business park has large tracts of serviced land that can be developed for large warehouses or can be subdivided for smaller warehouses. This gives us flexibility to develop buildings to the exact specification of the tenant. Industrial tenants are also attracted to the business park due to its high visibility, convenient location close to Durbanville, Milnerton and Plattekloof, and excellent transport links for logistics companies to Cape Town Harbour,&rdquo; says James Cresswell, Cape Regional Director, Abland.</p> <p>Atlantic Hills is situated on the Potsdam interchange giving direct access onto the M12 and M13 and immediate access onto the N7. Furthermore, the development will be integrated into the City of Cape Town&rsquo;s Integrated Transport System providing public transport access from Milnerton, Parklands, Plattekloof and Durbanville.</p> <p>Abland will roll out the development of the remaining warehouses and expects the 72 hectare Atlantic Hills Business Park to be fully completed in 2023.&nbsp;</p> <p>If you are interested in an opportunity for your business in Atlantic Hills Business Park, feel free to contact Rob Odendaal for more details on 021 673 1241 or rob.o@sircomm.co.za.</p> </body> </html>","category":"General","createdAt":"2019-07-03T08:40:16.784Z","publishedAt":"2019-07-03T08:30:00Z","summary":"Abland has announced five new developments to start soon in their 72 hectare Atlantic Hills Business Park in Cape Town. ","title":"Atlantic Hills secures five new developments","updatedAt":"2019-07-03T09:53:33.449Z","thumb":"https://s3.entegral.net/news/Thumb_2019_07_03_09_53_33_324.jpeg","tags":["investment","buying"],"url":"general/atlantic-hills-secures-five-new-developments-03-07-19","gallery":[{"url":"https://s3.entegral.net/news/Gallery_2019_07_03_08_40_16_628.jpeg"},{"url":"https://s3.entegral.net/news/Gallery_2019_07_03_08_40_16_721.jpeg"}]},{"groupId":"0bb0bbfa7b054b2e90e58bde253714dd","contentId":"9140c00011d84761a08aae2d1038901c","body":"<!DOCTYPE html> <html> <head> </head> <body> <p>With the Department of Public Works and Infrastructure (DPWI) who is a large property owner, the South African Property Owners Association (Sapoa) is hoping that Patricia de Lille , the DPWI&rsquo;s newly appointed minister, comes up with a plan to unlock opportunities within its immense property portfolio.</p> <p>According to Moneyweb, Sapoa CEO Neil Gopal said the association is looking to build a closer working relationship with the expanded department under De Lille.</p> <p>&nbsp;&ldquo;We welcome the appointment of minister De Lille. We believe she is well suited to this role and we intend to work closely with her as she fully understands the commercial principles behind this portfolio to effectively achieve government&rsquo;s wider socio-economic mandate.&rdquo;</p> <p>Gopal added that Sapoa, as the voice of the commercial property sector in SA, had already built a strong working relationship with De Lille when she was mayor of the City of Cape Town.</p> <p>&ldquo;The DPWI as well as the Cooperative Governance and Traditional Affairs Department, which is responsible for municipalities under Dr Nkosazana Dlamini-Zuma, are critical departments for the commercial property sector to operate and prosper.</p> <p>&ldquo;Minister De Lille&rsquo;s department is the custodian of thousands of buildings covering millions of square metres of floor space across the country, which runs into billions of rand.&rdquo;</p> <p>&ldquo;While the department is one of the biggest property owners in the country, not all of it is &lsquo;sexy&rsquo;, with many buildings in a dilapidated state,&rdquo; says Gopal. &ldquo;Some of these properties are in strategic locations such as city CBDs that could unlock commercial development value and other opportunities.</p> <p>&ldquo;Government is sitting on a lot of properties that could generate annuity income for it. It could be a win-win for the government and the property sector if these opportunities are unlocked.&rdquo;</p> <p>Sapoa&rsquo;s leadership has already interacted with De Lille a few times since her appointment, including last week on the sidelines of the Sapoa Convention.</p> <p>Sapoa president Ipeleng Mkhari commented in her outgoing speech at the recent SAPOA&nbsp; convention that she was happy to hear from minister De Lille about her keenness around public-private partnerships (PPPs) to unlock opportunities and new infrastructure within the DPWI&rsquo;s property portfolio.</p> <p>&nbsp;&ldquo;We want to engage with both the public works and cooperative governance departments on matters that affect our industry,&rdquo; she said. &ldquo;With cooperative governance, for example, we are really concerned about the unsustainable increases in property rates by municipalities across the country over the years.&rdquo;</p> <p>Mkhari noted that rates and taxes represented the highest escalating cost element for the commercial property industry after electricity.</p> <p>&nbsp;</p> </body> </html>","category":"General","createdAt":"2019-06-26T08:24:01.161Z","publishedAt":"2019-06-26T08:30:00Z","summary":"Sapoa hopeful De Lille will unlock property opportunities as she is said to be in favour of public-private partnerships.","title":"Public works minister De Lille said to be in favour of public-private partnerships.","updatedAt":"2019-06-26T08:28:27.186Z","thumb":"https://s3.entegral.net/news/Thumb_2019_06_26_08_24_00_989.jpeg","tags":["investment"],"url":"general/public-works-minister-de-lille-said-to-be-in-favour-of-public-private-partnerships-26-06-19","gallery":[{"url":"https://s3.entegral.net/news/Gallery_2019_06_26_08_25_51_127.jpeg"}]},{"groupId":"0bb0bbfa7b054b2e90e58bde253714dd","contentId":"e5a321c5d57e485b894c7005b2a8378b","body":"<!DOCTYPE html> <html> <head> </head> <body> <p>Property Market, am I in or out? &ndash; By Jack Bass, Director at <a href=\"http://www.sircomm.co.za\">Sothebys Commercial</a></p> <p>I recently attended a talk at a well-known national investment management company, hosted by a friend who runs a financial planning business. The main direction of the advice given, naturally, was to invest in the market. When I raised the question of property as an investment, the response was, &ldquo;see how poorly the sector is doing&rdquo;. I guess that was in line with the JSE performance of 2018. States Jack Bass</p> <p>In the discussion that followed, I mentioned that, personally, I didn&rsquo;t know of an overall return as good as real estate especially when applied to certain cities like Cape Town. There are opportunities to actually own an asset, receive income on it, or ROI, at an understandable quotient. Then you can watch its almost year on year appreciation, slowly initially, but gathering weight over several years.</p> <p>So What would constitute as an intelligent commercial property investment?</p> <p><span lang=\"EN-GB\">It is important to realise the risks involved but if you need to accept an element of risk in order to reap lucrative returns. There is also a large capital outlay with banks usually only loaning 60-70% loan to value.</span></p> <p><span lang=\"EN-GB\">Another variable which needs careful consideration is that there is no exact or predetermined timeframe within which the investor will be able to recoup his initial investment which could give rise to liquidity concerns if it is not properly factored into the risk equation.</span></p> <p><span lang=\"EN-GB\">When committing to a commercial property investment it must be understood that for optimal returns, it needs to be a long-term investment. </span></p> <p><span lang=\"EN-GB\">It is necessary for an investor to be cognisant of the prevalent trends, so market research is needed in order to make the best investment and achieve the maximum return. Do your due Diligence on the building, when are the leases expiring, what is the rental escalation year on year, who is liable for what costs.</span></p> <p><span lang=\"EN-GB\">Market research should help the investor become aware of, as well as understand, the genuine overarching trends in the market. This will ensure that the investor does not operate within a limited field of information.</span></p> <p>The question is &ldquo;can I do it&rdquo; and the answer is, with some capital, market investigation, knowledge, and assistance from a seasoned professional property broker the answer is &ldquo;yes you can&rdquo;.</p> <p>Not everyone succeeds in these endeavours, but that applies to any business endeavour. However, the risk in property, in my opinion, considering all the factors, is lower than most other asset classes and the returns, if you buy wisely, can be vast.</p> <p class=\"MsoNormal\" style=\"margin-bottom: 11.25pt; line-height: normal; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;\"><span style=\"mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; color: #515b6d;\">&nbsp;Properties for sale:</span></p> <p class=\"MsoNormal\" style=\"margin-bottom: 11.25pt; line-height: normal; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;\"><span style=\"mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; color: #515b6d;\"><a href=\"https://www.sircomm.co.za/century-city-office-for-sale-1854377\">https://www.sircomm.co.za/century-city-office-for-sale-1854377</a></span></p> <p class=\"MsoNormal\" style=\"margin-bottom: 11.25pt; line-height: normal; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;\"><span style=\"mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; color: #515b6d;\"><a href=\"https://www.sircomm.co.za/claremont-office-for-sale-1852554\">https://www.sircomm.co.za/claremont-office-for-sale-1852554</a></span></p> <p class=\"MsoNormal\" style=\"margin-bottom: 11.25pt; line-height: normal; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;\"><span style=\"mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; color: #515b6d;\"><a href=\"https://www.sircomm.co.za/noordhoek-office-for-sale-1854405\">https://www.sircomm.co.za/noordhoek-office-for-sale-1854405</a></span></p> <p class=\"MsoNormal\" style=\"margin-bottom: 11.25pt; line-height: normal; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;\">&nbsp;</p> <p class=\"MsoNormal\">&nbsp;</p> <p class=\"MsoNormal\">&nbsp;</p> </body> </html>","category":"General","createdAt":"2019-04-02T08:41:29.279Z","publishedAt":"2019-04-02T08:00:00Z","summary":"Jack Bass, Director at Sothebys Commercial, discusses whether to invest in commercial property.","title":"Property Market, am I in or out? – By Jack Bass, Director at Sothebys Commercial","updatedAt":"2019-04-02T09:22:28.004Z","thumb":"https://s3.entegral.net/news/Thumb_2019_04_02_09_22_27_848.jpeg","tags":["investment"],"url":"general/property-market-am-i-in-or-out-by-jack-bass-director-at-sothebys-commercial-02-04-19","gallery":[{"url":"https://s3.entegral.net/news/Gallery_2019_04_02_08_41_29_201.jpeg"}]},{"groupId":"0bb0bbfa7b054b2e90e58bde253714dd","contentId":"6cc140f50b9f429b8e0a12cae1df38cf","body":"<!DOCTYPE html> <html> <head> </head> <body> <p class=\"MsoNormal\">It&rsquo;s a well-known fact, in the property world, that over time usage and people flow change within a town, area, industrial/commercial, node. Cape Town is no exception and has recently seen some very interesting changes in this regard:</p> <p class=\"MsoNormal\">&nbsp;Internationally in many port cities, what once was a grimy old working harbour is now a cosmopolitan hub of retail/commercial/residential and entertainment. San Francisco, Sydney, Baltimore, London Thames, Shanghai, and Cape Town&rsquo;s very own Waterfront, have shown that with smart development, careful planning and top management, these redevelopments cannot just spin big money, kick start 100&rsquo;s of related businesses and industries, but can actually transform a city!</p> <p class=\"MsoListParagraphCxSpFirst\">&nbsp;</p> <p class=\"MsoListParagraphCxSpMiddle\">The Waterfront has proven to be one of the most successful such ventures, not just in South Africa, but internationally, especially given our size and diverse population. It has also had a knock-on effect of regentrification of areas bordering the harbour and adjacent areas like Woodstock, Salt River and the CBD. It is currently spilling over with rapid changes happening in Paarden Eiland.</p> <p class=\"MsoListParagraphCxSpMiddle\">&nbsp;</p> <p class=\"MsoListParagraphCxSpMiddle\">Very recently, a newly listed REIT announced plans for a large development in Paarden Eiland which will encompass retail, commercial, hospitality and residential spaces. The views from the 4th floor and above, on the Marine Drive properties, are spectacular. One would have to agree that this forward thinking is exactly where it&rsquo;s at. I have long thought that Paarden Eiland is ripe for change, and this first project is only the start!&nbsp; Others will be sure to follow.</p> <p class=\"MsoListParagraphCxSpMiddle\">&nbsp;</p> <p>&nbsp;</p> <p class=\"MsoListParagraphCxSpLast\">As the winds of change gather speed, we will see many &ldquo;old&rdquo; areas of Cape Town changing fast; even as far afield as Simons Town and Kalk Bay. I&rsquo;m guessing that once the winds of change get going, we&rsquo;ll see many changes yet to come in the &ldquo;Fairest Cape&rdquo;</p> </body> </html>","category":"General","createdAt":"2019-03-04T08:57:32.303Z","publishedAt":"2019-03-04T09:00:00Z","summary":"It’s a well-known fact, in the property world, that over time usage and people flow change within a town, area, industrial/commercial, node. Cape Town is no exception and has recently seen some very interesting changes in this regard","title":"Winds of change are blowing","updatedAt":"2019-04-02T09:21:59.067Z","thumb":"https://s3.entegral.net/news/Thumb_2019_03_04_08_57_32_068.png","tags":["investment","buying"],"url":"general/winds-of-change-are-blowing-04-03-19","gallery":[{"url":"https://s3.entegral.net/news/Gallery_2019_03_04_08_57_32_162.jpeg"}]},{"groupId":"0bb0bbfa7b054b2e90e58bde253714dd","contentId":"5b63da9a2a9d490794d6118f8a8a60a1","body":"<!DOCTYPE html> <html> <head> </head> <body> <p>The new Discovery global headquarters in Sandton Central has become the largest new build project to receive a five-star Green Star rating by the Green Building Council South Africa (GBCSA).</p> <p>Developed in a joint venture by Growthpoint Properties Limited and Zenprop Property Holdings, the new 112 000m&sup2; resource-efficient, cost-effective and environmentally-innovative Discovery head office is the largest single-phase commercial office development in Africa.</p> <p>From its design to construction and operation, sustainable development has been a key priority for Discovery, Zenprop and Growthpoint.</p> <p>Growthpoint Properties office division director, Rudolf Pienaar, says: &ldquo;The new Discovery head office is now among the most environmentally sustainable and efficient buildings in SA. Green building plays a key role in providing spaces in which businesses can thrive.&rdquo;</p> <p>Zenprop Property Holdings chief executive, James Tannenberger, says: &ldquo;This is a significant milestone for Zenprop, which has been involved with developing Green Star buildings since the commercial rating tool was first launched in SA in 2008. We are extremely satisfied with what the development team as a whole has been able to achieve on a project of this magnitude and profile.&rdquo;</p> <p>GBCSA executive director: certifications, Manfred Braune, says: &ldquo;It is the largest new building certified as Green Star to date in SA. It&rsquo;s a remarkable achievement, as a five-star Green Star rating for a building of this size would have been a challenge to achieve. The combination of low-tech and hi-tech is outstanding, ensuring the perfect marriage of load reduction through passive features with technology that ensures optimal efficiency.&rdquo;</p> <p>Aurecon is responsible for overseeing the delivery of the developers&rsquo; and Discovery&rsquo;s green intent for the building. Their role has been to ensure it has been designed and constructed with the highest sustainability credentials to demonstrate leadership in the transformation of the South African real estate industry.</p> <p>Features of the new building which have contributed to the rating include energy optimisation through the advanced design features of its envelope and building services. High-efficiency air conditioning that leverages an outside air economy cycle and indoor air CO2 monitoring. Added to this is low-energy lighting, occupant control and daylight optimisation, as well as the building&rsquo;s standout high-performance double-glazed curtain wall.</p> <p>The building is wrapped around a series of sunlit atria that plug into a central concourse. The design of the atria and skylights result in an abundance of natural light without compromising occupants&rsquo; comfort and energy performance. Grey and rainwater systems, efficient sanitary fittings, efficient irrigation system and water-wise landscaping contribute to the building&rsquo;s optimal water performance.</p> <p>Yovka Raytcheva-Schaap, the Aurecon associate for environmentally sustainable design consulting and project management for the project, says that, most notably, the Discovery building creates an environment that is centred on occupants&rsquo; health and well-being.</p> <p>Raytcheva-Schaap says: &ldquo;The design provides for an ample amount of fresh air, thermal comfort, daylight and connection to the exterior. A gym, a running track, yoga decks and multipurpose courts are set in the indigenously landscaped roof and encourage an active lifestyle, in line with the Discovery Vitality ethos.&rdquo;</p> <p>Aurecon&rsquo;s Martin Smith says the expansive ground floor of the building accommodates Discovery&rsquo;s retail partners, client services, walk-in centre, staff restaurants and coffee shops, offering an energising experience to visitors and staff.</p> <p>Smith says: &ldquo;Upper floor plates, designed for activity-based working, enhance staff collaboration, enjoyment and business efficiency.&rdquo;</p> <p>Located on the corner of Rivonia Road and Katherine Street, diagonally opposite Sandton City and one block from the Sandton Gautrain Station, the building comprises three linked office towers which consist of a ground floor, eight office floors and a roof level, which holds Discovery&rsquo;s sports facilities. It will also offer nine basements with over 5 000 parking bays.</p> <p>Discovery is expected to take occupation of the property towards the end of this year.</p> </body> </html>","category":"General","createdAt":"2019-01-08T07:35:49.751Z","publishedAt":"2019-01-08T07:30:00Z","summary":"The new Discovery global headquarters in Sandton Central has become the largest new build project to receive a five-star Green Star rating by the Green Building Council South Africa (GBCSA).","title":"New Discovery head office is certified green","updatedAt":"2019-01-08T07:35:49.751Z","thumb":"https://s3.entegral.net/news/Thumb_2019_01_08_07_35_49_547.png","tags":["investment"],"url":"general/new-discovery-head-office-is-certified-green-08-01-19","gallery":[{"url":"https://s3.entegral.net/news/Gallery_2019_01_08_07_35_49_672.jpeg"}]},{"groupId":"0bb0bbfa7b054b2e90e58bde253714dd","contentId":"c50f2ef2af0a4beba136b9152cb8a599","body":"<!DOCTYPE html> <html> <head> </head> <body> <p>While the Residential Property Sector caught much of the attention during its &ldquo;bubble&rsquo; period from around 2000 to 2008, and was regarded as the &ldquo;expensive&rdquo; property category for a while thereafter, it appears to be the Retail Property Sector that has been the &ldquo;outperformer&rdquo; of the major property sub-sectors over a longer period spanning 2 to 3 decades, and especially in the most recent decade or so. In the process, this sector has become relatively &ldquo;expensive&rdquo; in every way, great from an investor return point of view, but posing a risk in terms of lifting the incentive for more retailers to look for more cost-effective alternatives.</p> <p>A long period of consumer strength has seen the retail property being the top performing sector over the past 20 to 30 years&nbsp;</p> <p>We have become used to certain categories of retail property experiencing lower capitalization rates than any other major property categories, most notably the larger categories of shopping centre such as regional shopping centres.. It wasn&rsquo;t always that way. Back when Rode&rsquo;s Capitalisation Rate (or &ldquo;Cap Rate&rdquo;) data started in the late 1980s, Witwatersrand Regional Shopping Centre Cap Rates averaged 9.8% at the start of 1988, over 30 years ago. By comparison, Joburg CBD A Grade Office Space also had an average cap rate of 9.8%, and Sandton A-Grade Space a slightly lower average of 9.7%. Retail Property was thus not the clearly favoured property class in the Johannesburg region, and the same was true for other major regions such as Cape Town and Durban.</p> <p>Over the past 3 decades or so, however, Retail Property has outperformed the Industrial and Office Property Segment, and more recently even Residential, it would appear.</p> <p>By the 2nd quarter of 2018, Wits Regional Shopping Centre Cap Rates were 7.7%, according to Rode surveys, well below&nbsp; Sandton A-Grade Office Leaseback&rsquo;s 8.9%, Central Wits Prime Industrial&rsquo;s 9%, and well-ahead of the now-less favoured Joburg &ldquo;CBD&rsquo;s A-Grade Office Sector&rsquo;s 9.8%. Even Witwatersrand Community Shopping Centre Capitalisation Rates, at 8% in the 2nd quarter of 2018, are lower than both Sandton and Joburg CBD A-Grade Office Space Cap rates today, which was not the case 30 years ago.</p> <p><strong>Viewing performance over the past 22 years</strong></p> <p>More recently, from 1995, we have MSCI data, which provides actual estimates of capital values for the major Commercial Property categories. Taking a view of Commercial Property Sector performance over the entire 22-year period from 1996 to 2017, using this MSCI data, the Retail Property Sector appears to run far stronger than the other major property sectors.</p> <p>Viewing the Average Capital Value Per Square Metre by property segments, Retail Property&rsquo;s cumulative rise has far exceeded that of the Office and Industrial Segments over the past 22 years.</p> <p>Using 1995 as the base year, the Average Capital Value Per Square Metre for Retail Property is estimated to have risen by a massive 877.4% over the 22-year period 1996 to 2017.</p> <p>By comparison, the Industrial and Warehouse Sector had a more modest increase of 544.8%, and Office Space 523.0%.</p> <p>Although estimates of average house price growth are not exactly comparable, because they are done on a per unit basis instead of a per square metre basis, it would appear that Retail Property has even outperformed Residential Property over 2 decades. Our FNB Long Term House Price Index has inflated by a lesser 670.0%, the Residential Market having run &ldquo;neck and neck&rdquo; with Retail capital growth up to 2008, but &ldquo;underperforming&rdquo; thereafter</p> <p>In real terms, using economy-wide price inflation (as measured by the GDP Deflator) to adjust for &ldquo;general inflation&rdquo; in the economy, Retail Property&rsquo;s rise in Average Capital Value per Square Metre was an impressive 117.3% from 1996 to 2007, Residential 71.4%, Industrial Property 43.4% and Office Space 38.5%.</p> <p>It may be argued that the true performance of a property class should be measured using data which estimates capital growth net of capital expenditure on the properties over the period.</p> <p>Even by this measure (not possible to do for residential given the data available), Retail Property strongly outperformed, with cumulative capital growth net of capital expenditure totaling 342.5% from 1996 to 2017, compared to 149.8% in the case of Industrial Property and 78.1% for Office Space.</p> <p>In ways other than capital value, Retail Property has also seen its affordability deteriorate significantly more than the other 2 major commercial property classes.</p> <p>Its Operating Cost/Square Metre has risen cumulatively by 908.1% from 1996 to 2017, compared to Industrial Property&rsquo;s 696.8% and Offices&rsquo; 400.8% over the same period.</p> <p>Most important, is that this cumulative operating cost inflation has far outpaced economy-wide inflation as measured using a GDP Deflator. Therefore, even in real terms, Retail Operating Cost/Square Metre as at 2017 was a massive 124.14% above its 1995 level (albeit starting to moderate), whereas Industrial was a more modest 77.17% higher and Office Space a marginal 11.34% higher. Sharp Municipal rates and Electricity Tariffs increases have been key contributors here.</p> <p>The strong capital expenditure and operating cost growth could be sustained over the period due to a high level of &ldquo;pricing power&rdquo; of shopping centres, as reflected in the cumulative inflation rate in retail base rentals to the tune of 720.9% over the 22 year period, compared to 348.2% for Industrial Property and 317.1% for Office Space.</p> <p>The cumulative result of this strength in Retail Property&rsquo;s &ldquo;pricing power&rdquo; over the past 22 years was that it was had the top average per annum total return of all the Commercial Property Sectors over the 1996 to 2017 period, measuring an average annual 16.2% total return, followed by Industrial Property&rsquo;s 15.4% and Office Property&rsquo;s 12.7%.</p> <p><strong>Conclusion</strong></p> <p>In short, for a few years following the end of the pre-2008 property boom, there was a perception amongst some that it was the Residential Property Market that had &ldquo;overshot&rdquo; the mark the most during those prior boom years, while Commercial Property remained relatively &ldquo;cheap&rdquo;. That may still be so in the case of Office Property, and even to a lesser extent Industrial Property. However, Retail Property began to outpace Residential Property significantly after the 2008/9 recession, and appears to have become SA&rsquo;s &ldquo;expensive&rdquo; property category.</p> <p>Given the data available, the Retail Property Sector appears to have been the strongest &ldquo;cumulative&rdquo; performer of the 3 major Commercial Property Sectors over the past 22 years from 1996 to 2017, according to MSCI historic data, and possibly even over the past 30 years judging by Rode&rsquo;s Cap Rate data.</p> <p>It has achieved superior capital growth even excluding all the capital expenditure on properties over the years.</p> <p>The Retail Sector&rsquo;s Operating Cost per square metre has also outpaced the others, as well as far outpacing general economy-wide price inflation. The Sector has been able to recoup much of its capex and rise in operating costs through its recoveries as well as having the strongest rental inflation rate over the 2-decade period too.</p> <p>However, having entered a more stagnant economic period in recent years, the big question is whether this general affordability deterioration in the Retail Property Sector hastens the search for cheaper alternatives for retailers, notably online retail as well as greater use of Warehouse Property?</p> </body> </html>","category":"General","createdAt":"2019-01-08T07:24:40.907Z","publishedAt":"2019-01-08T07:30:00Z","summary":"A long period of consumer strength has seen the retail property being the top performing sector over the past 20 to 30 years ","title":"Which major property sector has performed best over the past 2 to 3 decades?","updatedAt":"2019-01-08T07:24:40.907Z","thumb":"https://s3.entegral.net/news/Thumb_2019_01_08_07_24_40_719.png","tags":["buying","investment"],"url":"general/which-major-property-sector-has-performed-best-over-the-past-2-to-3-decades-08-01-19","gallery":[{"url":"https://s3.entegral.net/news/Gallery_2019_01_08_07_24_40_844.jpeg"}]},{"groupId":"0bb0bbfa7b054b2e90e58bde253714dd","contentId":"f9adbd3b86e8497f9f4e93f791129f9b","body":"<!DOCTYPE html> <html> <head> </head> <body> <p>Looking for real estate investment opportunities around the world? The secret is to think &ldquo;smart&rdquo;.</p> <p>&nbsp;The term &ldquo;smart city&rdquo; is coming up more and more frequently in real estate and investment circles. Cities either claim to be or are aspiring to be smart. Although there is no set definition for what this entails, cities that come close to achieving this ideal usually exhibit a strong degree of technological integration, environmentally friendly policies and solutions, and an intelligent approach to town planning and the delivery of transport infrastructure.</p> <p>&ldquo;For these reasons, so-called smart cities around the world represent a compelling investment opportunity,&rdquo; says George Radford, Director of Africa at IP Global. &ldquo;They are the places where people want to live, work and play, and the well-thought-out approach to their expansion means that they will continue to flourish as they grow.&rdquo;</p> <p>In South Africa, both Johannesburg and Cape Town aspire to become smart cities. At the current time, their focus is most keenly observed in the delivery of forward-thinking transport routes, and these are definitely delivering investment opportunities in new areas. The spike in development around the Gautrain Station in Rosebank, Johannesburg, and the additional station planned for Waterfall Estate are examples of how this kind of infrastructure can make all the difference to the future of an area.</p> <p>The multiple transport routes in Woodstock, Cape Town, including a MyCiti bus route, a railway station and cycle lanes, have also contributed to the suburb&rsquo;s thriving development, including various mixed-use structures, allowing residents to live, work and play &ndash; all on their doorstep.</p> <p><strong>Cities integrating technology into services</strong></p> <p>Looking ahead, the roll-out of 5G infrastructure, which supports futuristic applications like augmented reality and driverless cars, will be rolled out commercially as early as 2019 in South Africa. On the back of this advanced network, smart solutions will really begin to flourish locally.</p> <p>The integration of digital solutions with local services is a significant contributor to cities being smart. For instance, according to a report by The Economist called &ldquo;Empowering Cities&rdquo;, Singapore&rsquo;s system of privately operated buses uses the Beeline app, a technology that allows residents to book seats on buses run by private operators in areas that are not served by public transportation.</p> <p>The app not only helps citizens to get around and allows them to suggest future bus routes, but it also allows the Government Digital Services team at Singapore&rsquo;s Infocomm Development Authority to predict demand to improve bus schedules and routes.</p> <p>Another city highlighted, Barcelona, uses Urban Lab Dynamic Traffic Forecasting to combine video and analytics to provide real-time data on parking availability. This information is transmitted through the city&rsquo;s Wi-Fi infrastructure, providing information to end users and the local authorities.</p> <p>The Economist&rsquo;s report also stated that city citizens say digital technology has transformed their lives in many ways, including telecoms (36%), transportation (31%), crime prevention (21%) and social services such as healthcare and education (21%).</p> <p><strong>New smart cities can alleviate population influx</strong></p> <p>Some smart cities are built from the ground up, rather than being retrofitted for the purpose. &ldquo;As we are seeing more and more people moving into cities, existing infrastructures are struggling to cope with this influx,&rdquo; says Radford. &ldquo;What some governments are doing is focusing on infrastructure growth in new areas, and giving people a reason to settle in these zones.&rdquo;</p> <p>In China this year, the Central Government announced that it would be establishing a new administrative region called Xiongan New Area near Beijing. The area would be a modern, green and smart city, which would alleviate some of the strain on the services in the capital. The government has displayed its commitment to the development of the new area by relocating some of its functions and people out of Beijing, and supporting the development of green and high-tech industries there.</p> <p>Radford points out that this type of focus means that Xiongan New Area will be launched with an existing consumer market and economy, which means that other people, services and businesses will follow. &ldquo;This is &lsquo;smart&rsquo; in its simplest form &ndash; laying the groundwork now for the solution to problems in the future.&rdquo;</p> <p><strong>Smart cities focus on sustainable power</strong></p> <p>&lsquo;Green&rdquo; solutions also form a significant part of the definition of smart. &ldquo;Around the world, city authorities are encouraging citizens to install sustainable power solutions, lessening their reliance on the local grid, and in some cases, even selling power back to the municipality. In many cases, smart cities don&rsquo;t just provide the services that their citizens want, they provide incentive for their citizens to solve problems for themselves, and possibly even use their solutions to in turn support government,&rdquo; says Radford.</p> <p>These types of cities are showing the way to the future. Radford believes that they represent excellent investment potential because they will enjoy sustainable growth in the decades to come, while still ensuring that their citizens&rsquo; quality of life is maintained, and economic participation is assured.</p> <p>Whether local or international, as new infrastructure enables the development of cities of the future, investors should look out for the opportunities they present. &ldquo;The smart future of South Africa is looking up,&rdquo; says Radford. &ldquo;Whether you are investing in property around smart nodes here, or looking to smart cities on the international landscape, you can&rsquo;t go wrong investing in these forward-thinking locations.&rdquo;</p> <p>The world&rsquo;s smartest cities according to the IESE Cities in Motion Index 2017 are:</p> <p>1. New York<br />2. London<br />3. Paris<br />4. Boston<br />5. San Francisco<br />6. Washington<br />7. Seoul<br />8. Tokyo<br />9. Berlin<br />10. Amsterdam&nbsp;</p> </body> </html>","category":"General","createdAt":"2019-01-08T07:33:06.301Z","publishedAt":"2019-01-08T07:30:00Z","summary":"Looking for real estate investment opportunities around the world? The secret is to think “smart”.","title":"5G could ignite smart city development in SA","updatedAt":"2019-01-08T07:33:06.301Z","thumb":"https://s3.entegral.net/news/Thumb_2019_01_08_07_33_05_895.png","tags":["buying","investment"],"url":"general/5g-could-ignite-smart-city-development-in-sa-08-01-19","gallery":[{"url":"https://s3.entegral.net/news/Gallery_2019_01_08_07_33_06_207.jpeg"}]}]