Property Sector Charter Council releases its first public State of Transformation Report for the Property Sector

The South African property sector is making reasonable efforts towards transformation, but it needs to pick up pace.

 

These are the findings of the latest research released by the Property Sector Charter Council (PSCC) yesterday (June 13, 2017). The launch of the PSCC 2015-2016 State of Transformation Report for the Property Sector coincides with the gazetting of the long-awaited Amended Property Sector Code (June 2017 Gazette no. 40910) on Friday, June 9, 2017.

 

The PSCC’s research shows that the commitment to transformation varies across the sector. The commercial property sector leads the progress in transformation. On the other hand, the residential property sector is lagging behind, with a very limited number of BBBEE certificates submitted. What’s more, the report shows the public sector isn’t taking the active lead in transformation that is expected of it to further the transformation agenda, based on its limited submissions.

 

CEO of the Property Sector Charter Council, Portia Tau-Sekati, says the mandate of the PSCC is to drive the sector’s transformation and ensure that everyone plays a part and makes their contribution.  She notes: “Inclusive participation is necessary for economic growth that includes all previously disadvantaged individuals and secures their meaningful participation in the mainstream economy.”

 

All in all, the property sector achieved an average BBBEE recognition of Level 4.

 

“This is reasonable based on the previous scorecard. However, the sector will have to work harder to retain Level 4 based on the new BBBEE recognition scores,” points out Tau-Sekati.

 

She adds: “The Amended Property Sector Code applies the lessons learned on the sector’s transformation journey so far, including the findings of the latest research. It addresses some of the previous gaps and aligns other legislation and policies to ensure that transformation in the property sector continues at the required pace.”

 

Measuring the transformation of the industry, PSCC’s new research sampled 72 companies – a sample which may be small in number but adequately reflects the industry outlook by covering the large companies that dominate the sector. This includes institutional investors, large private property owners, collective investment schemes, listed property entities and Government.

 

The sector’s transformation, under the former Property Sector Code, is measured on eight points. The PSCC’s research reveals performance as follows:

 

Overall excellent performance against targeted weighting:

  • Enterprise Development:            115%
  • Social-Economic Development:   115%

Still below target, but reasonable performance:

  • Ownership:                                   82%
  • Preferential Procurement:           82%

More focus required:

  • Skills Development:                     69%
  • Management Control:                 60%
  • Employment Equity:                    55%
  • Economic Development:              54%

 

Tau-Sekati reports: “Management Control, Employment Equity and Skills Development are interrelated, so it is unsurprising that the underperformance of the three elements comes as a package. It is difficult to achieve one of these three key imperatives without another.” This trio of low performers shows an under-representation of black people and black women in all levels of management, including real board participation.

 

Highlighting the interconnection of the three elements, she adds: “You need to have black people and women in management and invest their talent to achieve skills development targets. By the same token, you need to invest in skills management to achieve your targets for talented black management in the future. ”

 

The lack of performance in skills development, as it stands now, will perpetuate the present transformation scenario. “It is critical that enterprises in the property sector adequately invest in skills development,” stresses Tau-Sekati. She highlights that there are pockets of excellence in the reporting companies, but this has not translated to success at sectoral level.

 

“The sector needs to promote skills development at a sectoral level rather than on a company level. This needs to be done in collaboration with academic institutions to build a curriculum that meets current and future needs,” she advises.

 

While Economic Development is the lowest scoring element against its set targets, there are some bright lights as a result of reasonable efforts undertaken by most of the sector’s larger companies. “Developing shopping centres in townships and some rural areas is a leading example,” comments Tau-Sekati.

 

Tau-Sekati concludes: “While it makes business sense that the property sector targets investment opportunities at areas with relatively high income, we hope the future direction will lead the sector to match this with a portion of investment into the poorest areas, those that are completely under-resourced, and where development is needed the most.”

AUCTION OF TWO UNIQUE NORTHERN SUBURBS COMMERCIAL PROPERTIES ANNOUNCED

Nexus Property Group has received instruction to auction two properties in the Northern Suburbs of Cape Town. The first property, a mixed-use commercial site located in the central residential node of Goodwood, is a unique offering as it includes a factory with reception and offices in excellent condition, while the second property comprises a warehouse in the main industrial node of Killarney Gardens.

Greg Nafte, Co-Director of Nexus Property Group (NPG), says that both properties will be auctioned on 18 July 2017, from 12h00 at 125 Waterkant Street in Green Point.  “This auction presents both property investors and potential owner occupiers with a chance to acquire property within two leading Cape Town locations.”

Mixed-use commercial facility in Goodwood, 23 Kimberley Road

After over 20 years of operating their business from the premises, the current owner has vacated to expand their business operations. The property will be sold with vacant occupation. This offers owner occupiers an opportunity to acquire a unique asset that has been well maintained and offers both commercial, as well as industrial facilities in an area where unique properties such as this are seldom available.

Located a mere 40m from  Voortrekker Road – offering access from several main transport routes including Voortrekker Road, Jakes Gerwel Drive as well as the N1 and N2 highways – this property boasts several notable features, such as 150 amp electricity supply, roller shutter access, as well as a goods lift and off-street parking.

“The City of Cape Town is intending to invest several millions in funding and upgrading in order to stimulate growth and improvement in the area, and the Voortrekker Road City Improvement District has already seen positive upgrades such as CCTV installation in the Goodwood area,” explains Nafte.

Industrial property in Milnerton, 104 Kyalami Drive, Killarney Gardens

Situated in Killarney Gardens, the warehouse has an erf extent of 1025m2 that includes a gross lettable area of roughly 720m2. Having become available due to corporate restructuring, this auction presents buyers with an opportunity to acquire industrial property within an area that is in high demand.

“The property is currently tenanted and offers an attractive initial yield on a conveniently located asset, making it perfectly suited to investors looking to enhance the value of their current portfolio,” says Nafte.

In order to participate in the auction, the purchaser will need to register for the auction and submit a R50 000.00 refundable deposit along with FICA documents. For any queries, please contact Brendon Levin on 084 588 8852 or blevin@nexuspg.co.za. The auction will be held at 125 Waterkant Street, Green Point, Cape Town at 12h00 on 18 July 2017. For more information please visit www.nexusproperty.co.za.

The contact person for the Goodwood property is Andile, andile@nexuspg.co.za  cell: 0814019366

Building bridges: better links to Sandton Central for everyone

Big inroads are being made improving access for everyone travelling into, out of and around Sandton Central, South Africa’s financial hub. Some of the largest positive impacts have come from building new bridges.

 

Three new bridges will connect Sandton Central in a way that improves transport for the area and forges stronger bonds between different communities.

 

“Sandton Central is South Africa’s cosmopolitan centre of trade, ideas, interaction and lifestyle. Excellent accessibility plays a key role in this. Ensuring that people can easily come to work, visit, stay, shop, or be entertained in Sandton Central is something we take seriously. We strive to provide an exceptional experience,” says Elaine Jack, City Improvement District Manager of the Sandton Central Management District (SCMD), which manages the public urban spaces of this leading city.

 

Over 10,000 people walk between neighbouring Alexandra and Sandton Central every day. The City of Joburg is bringing pro-poor high-quality public transport that is safe, affordable and reliable to the people of Alexandra and Sandton. Also, it is making walking and cycling easier, safer and more convenient.

 

“We are addressing the ill effects of the past and implementing programmes that are stitching the city together, ensuring that economic opportunities and services are closer to the people. This allows people to live, work, play and pray in a much more cost-effective and efficient manner,” says Cllr Nonhlanhla Helen Makhuba, MMC for Transport in the City of Johannesburg.

 

The Marlboro Rea Vaya bus and pedestrian bridge

Almost complete, this bridge is for exclusive use by Rea Vaya buses and pedestrians. It will launch in September/October 2017. The bridge is already open for pedestrians. Rea Vaya buses will have exclusive use of the bridge when the Rea Vaya Phase 1C(a) operations begin in October 2018. The bridge will make it possible for buses and pedestrians to move swiftly from Johannesburg CBD via Wynberg and Alexandra over the M1 and into Sandton Central.

 

The Grayston pedestrian and cyclist bridge

This non-motorist bridge for walking and cycling is under construction over the M1 highway at Grayston Drive. It will be completed by October this year. This bridge will provide a convenient and safe walking and cycling trip for people moving between Alexandra, Wynberg and Sandton Central daily. The bridge is part of a five kilometre dedicated walk and cycle route that starts in No 3 Square in the heart of Alexandra and ends in Sandton Central. The route also intersects with the Watt Street Rea Vaya station, which is right next to Pan Africa Mall. Thus, it helps people walk safely to this important station which connects Alexandra with the Joburg CBD (inner-city) and Sandton Central.

 

The Zandspruit bridge

Big improvements to this bridge have opened up a former bottleneck for private vehicles at a very popular access point to Sandton Central. Widening the Zandspruit Bridge and Katherine Street all the way to the M1 highway Marlboro Drive off/on ramp has already improved traffic mobility between Sandton Central and the M1 Marlboro off/on ramp.

African tourist arrivals grow despite challenges

The continued growth of African tourist arrivals, coupled with key performance indicators such as increased airlift and hotel development, are all reasons to invest in the travel economy within Africa. This was the word from various stakeholders in attendance at WTM Africa 2017 held at the Cape Town International Convention Centre in April.

Through the partnership between WTM Africa and Euromonitor International, research divulged at the exhibition showed that key performance indicators revealed positive development in the travel sector of Africa.

Christi Tawii, Research Analyst with Euromonitor International, spoke at WTM Africa 2017, unveiling that inbound arrivals in Sub-Saharan Africa between 2011 and 2016 showed steep growth, moving from just below 21 000 arrivals in 2011, to over 24  000 in 2016.

Tawii further outlined current travel trends that Euromonitor International has identified throughout African countries including the increased focus on domestic tourism. Tawii explained that both the number of domestic trips has increased since 2011, and that the average domestic expenditure has grown alongside this.

The advent of the sharing economy has also planted roots on African soil, with services such as airbnb and uber establishing themselves as a firm part of the traveller’s service requirements when travelling in foreign destinations.

Travel players in Africa have also shown their mettle when it comes to resilience and opted for multi-channel marketing approaches in the online space, opting to utilise the services of online travel agencies and accommodation booking engines to further their reach says Tawii.

Increased competition from low-cost airlines, hotel brand expansion projects on the continent and a keen focus on the potential of business tourism and events has also lead to a boost in both domestic and inbound business trips.

Niche tourism continues to grow as a sector in Africa says Tawii, who pointed out that sports tourism, eco-tourism, cultural tourism, medical tourism, safaris and even beaches are all prevalent options for travellers within, and from outside of, Africa.

Chardonnay Marchesi, General Manager of Africa Travel Week, says of the trends report: “WTM Africa is eager to remain on the forefront of what is happening within the African tourism sector. WTM Africa 2018 will see even greater focus on including niche tourism sectors, as well as technology development disrupting the travel industry.”