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Asset
Issue 68 | February 2019
Waterfall City:
smart, green and
world class
Giles Pendleton, head of
developments for Attacq
Issue 68 • Asset Magazine 1
Asset Issue 68 | February 2019
Waterfall City:
smart, green and
world class
Giles Pendleton, head of
developments for Attacq
2 Asset Magazine • Issue 68 Issue 68 • Asset Magazine 3
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Other magazines in
THE ASSET TEAM the Asset stable
Publisher
Tony Korsten
M 083 410 0144 | O 011 640 1684
tony@assetmag.co.za
Co-ordinator
Hilda Korsten Out mid-February!
M 072 678 1679 | O 011 640 1634
hilda@assetmag.co.za
Editor
Claire Cole
M 082 353 7929 | O 011 425 5814
claire@assetmag.co.za
Sales
Gary Allen
M 082 455 8180 | O 011 888 6163
gary@assetmag.co.za
Keith Potgieter Click here to read
M 081 443 2474
keith@assetmag.co.za
Riette Stevens
M 071 877 5520
riette@mediasolutions.co.za
Design & Layout
Christine Isted
M 082 570 3284
christine@designinmind.co.za
Click here to read
4 Asset Magazine • Issue 68 Issue 68 • Asset Magazine 5
Editor’s note
The international design industry recently mourned the
passing of Florence Knoll Bassett, an inspirational figure who
both shaped modern interior design and advanced the notion
of women holding their own in the workplace. She died at 101,
having left and indelible mark on the fields of interior design
Claire Cole and space planning.
Born and raised in Michigan, Florence Knoll Bassett developed an early interest in
architecture and design. She studied at the Cranbrook Academy of Art, which was run
by renowned Finnish architect Eliel Saarinen. She became close to the Saarinen family,
and was lifelong friends with Eliel’s son, Eero (also a well-known architect in his own
right). She pursued her academic career in architecture at Columbia University and the
Architectural Association in London, completing her formal training at what is now the
Illinois Institute of Technology.
During the latter part of her schooling and her extended travels, she met and studied
under many of the leading architects of the time, including Alvar Aalto, Marcel Breuer,
Florence Knoll Bassett
Walter Gropius and Ludwig Mies van der Rohe. Some of these early mentors would
come to figure prominently in her future work.
It was not long after she moved to New York to pursue her architectural career that
she really cemented her place in the design world. There, she met her future husband
and business partner, Hans Knoll, a furniture manufacturer who had been introducing
European Modernism to clients in the USA through his furniture. The two began working
together, ultimately marrying and establishing Knoll Associates – still a well-known name
in furniture design today.
Florence’s main role was corporate interior design, but she also had a major influence
on the company’s furniture design directions. Within Knoll Associates, she set up the
Knoll Planning Unit, and quickly dispelled any notions that interior design was somehow
a lesser cousin to architecture. Her handling of interior space – her design style and
aesthetic sensibilities – had a profound influence on the way in which offices were
designed – an influence still felt today.
She was a pioneer in many ways – as a strong woman in the workplace, as a trailblazer
in interior design, and as a businesswoman.
Happy reading
6 Asset Magazine • Issue 68
Claire Issue 68 • Asset Magazine 7
inside this issue
18
20 REDEFINE PROPERTIES SEEKS TO
CREATE A MORE SUSTAINABLE
06
UPFRONT
EDITOR’S NOTE OPERATING ENVIRONMENT FOR
Claire Cole THE BENEFIT OF ALL THEIR
STAKEHOLDERS
10 NEWSSTAND
14
25 RE-RATING ON THE CARDS
FOR SA REIT SECTOR
NEW LOCAL PROPTECH APP
12 BIM: “IT’S YOUR MOVE!”
Vaughan Harris
SOUTHERN VIEWS: FLOW RAISES R20 MILLION
A NEW LIFESTYLE
PRECINCT IN MAURITIUS
IN SEED FUNDING
26 THE EVOLVED
FM COLUMN
David Khasebe
46 UCT MODERNISES
PROPERTY STUDIES 68 PUTTING POETRY AND
PRAGMATISM TOGETHER
30
DEGREES FOR 2020
INTERVIEWS
Reon van der Wiel
Professor Manya Mooya
54 SKIDATA GROWS ITS
BRAND AND PRESENCE 82 CONTINUING THE RESEARCH
JOURNEY: A CONVERSATION
IN SA MARKET WITH STAN GARRUN
COVER STORY Bradley Lovell Stan Garrun
WATERFALL CITY: SMART,
GREEN AND WORLD CLASS
Giles Pendleton
64 SPECTRUM ACHIEVES
LEVEL 1 B-BBEE STATUS
Eric Wright
92 INVESTING IN SOUTH
AFRICAN INNER CITIES
102 HOW MIXED-USE PRECINCTS
ARE BENEFITING INNER CITIES
Nicholas Stopforth
138
FEATURES
Denise Mhlanga
108 IS ECONOMIC VIABILITY
OUR ECO-FRIENDLY
ACHILLES HEEL?
Carol Reynolds
122 HOW WILL CARBON TAX
AFFECT MOBILITY IN
SOUTH AFRICA?
116 THE RELEVANCE
OF CONNECTING
Songo Didiza
EXTENSIVE SURVEY SHOWS
Brendan Lowen QUALITY OF LIFE IMPROVING
130 PLASCON’S 2019
COLOUR FORECAST
IN GAUTENG
8 Asset Magazine • Issue 68 Issue 68 • Asset Magazine 9
Newsstand
Asset Issue 67 | Nov/Dec 2018
Redefine aims to
change the face of
corporate social
responsibility
Marijke Coetzee,
head of marketing
and communications
at Redefine
2 Asset Magazine • Issue 66 Issue 66 • Asset Magazine 3
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Asset
AssetNews
News
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BIM: “It’s your move!”
WHA
NOTE PAD
B
IM Institute founder and BIM
expert, Vaughan Harris, recently
published his first book on building What can we do for you?
information modelling (BIM), titled “It’s
your move”. The book is a collection of
articles, advice and interviews conducted
by Harris, who is an outspoken voice in
the think tanks and leadership develop-
ment for building information modelling
on the African continent and abroad.
The book takes a look at the introduc-
tion of common global standards and
operating methods using BIM and how Activate Architect_June2016.indd 134
Africa can benefit from implementing
these.
It also considers the barriers to operation
and trade across the African construction
industry and beyond, and look at ways
to improve certainty in the construction
sector and its output, including increasing
built quality. Most importantly it tackles
the issue of improving resource efficiency
using advanced construction software
that has been available locally for
decades. Harris argues that technology
has become far more than just a
technological enabler of transformation
but an innovative tool which enables
new ways of processing information. A+ WHAT CAN WE DO FOR YOU?
The book can be downloaded free
of charge using the following link:
https://www.biminstitute.org.za/the-book-
page/
12 Asset Magazine • Issue 68 Issue 68 • Asset Magazine 13
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Asset News
Southern Views
a new lifestyle precinct in Mauritius
S
outhern Views is the latest offering for buyers
seeking to embrace the island lifestyle in their
own way at Heritage Villas Valriche, in the south
west of Mauritius.
“The new precinct is specifically geared towards those
LEADERS IN
wishing to purchase land and design their own homes. ECONOMIC &
It’s the perfect opportunity to adopt their preferred REAL ESTATE
lifestyle in the heart of one of the most sought-after
residential estates on the island,” says Anton de Waal, MARKET
CEO of Heritage Villas Valriche. INSIGHT
INCORPORATING
GIS TECHNOLOGY
FOR ADVANCED
GEO-SPATIAL ANALYSES
Market Studies
• Retail Studies
• Centre Repositioning
• Consumer Surveys
Special Projects
• Mixed Use Developments
• Inclusionary Housing Projects
• Economic Impact Assessments
Africa & Far East
• Real Estate Feasibility Studies
• Economic Assessments
• Socio-Economic Surveys
• Impact Assessments
HEAD OFFICE (Gauteng)
Tel +27 12 460 7009
Fax +27 12 346 5883
Cell +27 82 898 8667
hein@demacon.co.za
14 Asset Magazine • Issue 68 www.demacon.co.za
Issue 68 • Asset Magazine 15
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Asset News
City living
made smarter.
One click to zoom in
Comprising eight plots of land of an area Priced at 420,000 USD per plot, this real
ranging from 1,350 to 1,572m2, Southern estate product gives investors the opportunity
Views offers buyers the possibility of to obtain a Mauritian residence permit
designing and building their dream villas once they have built their villa, which opens
according to comprehensive estate guide- the door to living, working and starting a
lines. The project is implemented under the business on the island, one of the most
Mauritius Integrated Resort Scheme, which thriving economies in the region. Residence
is the only real estate programme that allows permit holders are also entitled to become Artist’s Impression
foreigners to buy freehold residential plots of tax domiciled in the country under certain
land on the island. conditions whilst benefiting from an income
tax rate not exceeding 15%, no inheritance Exclusive apartments from R 2.95 million now selling.
Located on the south-western coast of tax, no tax on dividends and no capital Introducing Sandton Gate. The new mixed-use precinct on the edge of the
Mauritius, Southern Views opens on the gains tax. Sandton CBD. The 137 exclusive apartments are designed for private,
open-plan living with large balconies that optimise outdoor space. Choose
paradise seascape of the Indian Ocean, with between two, three or four bedroom apartments, with a limited number
of penthouses available. Experience pedestrian access to everything
one of the best-preserved lagoons on the A dedicated website, villasvalriche.com, the precinct has to offer, such as shops, premium office space and a
Planet Fitness gym. In addition, construction of a new intersection is well
island, as well as some of the most renowned provides a full array of information on the underway, offering direct access to the precinct from Willam Nicol drive.
spots for surfing and other water sports. properties on sale as well as other practical A precinct with more amenities is Sandton, but smarter.
Buyers will have access to a plethora of information for future residents and investors Click here to experience Sandton Gate through our virtual tour or visit
www.sandtongate.co.za for more information.
facilities on the 2,500 hectare Heritage Bel in Mauritius. The experienced Heritage
Ombre estate that includes two 5-star resorts, Villas Valriche sales team is waiting to help
On show Tuesdays to Sundays, from 12pm to 5pm.
a beach club, an award-winning golf course interested buyers wishing to learn more Call 08600 272 38 for an appointment and to view our show unit.
and a 1,300 hectare nature reserve. about Southern Views. A+
In proud collaboration:
16 Asset Magazine • Issue 68 Issue 68 • Asset Magazine 17
Asset News
New local proptech app flow
raises R20m in seed funding
T
he mobile app, co-founded by Gil
Sperling, Daniel Levy and Jonathan
Liebmann, is specifically targeting
millennial renters, commonly known as
Generation Rent. The funding will be used
to accelerate the development of the app
in order to fuel growth and increase the
base of tenants already using Flow, as
well as to increase the range of rewards
available to tenants.
With Flow, tenants get rewarded for
registering, adding their property details,
paying their rent on time, looking after their
homes, and more. For these rewards, Flow
has struck partnerships with a number
of brands in the lifestyle, entertainment, Jonathan Liebmann, Gil Sperling and Daniel Flow - get rewarded for being a great tenant
homeware, fashion and travel space, Levy, co-founders of Flow Flow is revolutionising the way tenants rent, and live. Get up to 20% of your rent
including: Superbalist, Weylandts, back in rewards, every month. Have one app to manage your entire rental experience.
SweepSouth, OneCart, plus a selection of
You don’t need your landlord to get started.
airtime and electricity providers. Tenants that These are some of the key factors that
are fully in Flow can get up to 20% of their inspired the creation of Flow. Through scaling
rent back in rewards every month. with technology and economies of scale,
we can revolutionise the economics of rent,
One click to zoom in
Property industry ripe for disruption providing a more seamless experience and
more value to tenants,” says Sperling, CEO
“Compared with any other industry, the of Flow.
property industry – and in particular the rental BY CREATING
market – is archaic and disconnected. There’s Globally, proptech is one of the fastest THE RIGHT SPACE,
also a massive paradigm shift in how people
should rent which is inspired and driven
growing sectors. In 2017, venture capitalists
put $12.6 billion into the proptech sector, with
SOUTH AFRICANS
by their lifestyle choices, and is something WeWork and Compass leading in terms of WILL ALWAYS BE
proptech could and should leverage big time. funds raised. Softbank invested $4.4 billion in BREAKING
People are used to being connected all the
time and transacting digitally, in real-time, and
WeWork and $450 million in Compass. US-
based real estate tech firms comprised nearly
NEW GROUND.
View our portfolio of leading developments
they want transparency in their dealings with $6.5 billion (or 52%) of the venture capital at abland.co.za
companies (including their landlords). funding raised in 2017. A+
18 Asset Magazine • Issue 68 Issue 68 • Asset Magazine 19One click to zoom in
Asset News
Redefine Properties seeks to create a
more sustainable operating environment PROPERTY VALUATIONS
MOVEABLE ASSETS
for the benefit of all their stakeholders SPECIALISED VALUATIONS
CONSULTING SERVICES
From health clubs to hospitals.
From warehousing facilities
to manufacturing plants. The
expertise to value any asset,
anywhere in the country.
A
s a leader in the property sector,
Redefine is conscious of and
active in its role in protecting
and enhancing the environment
Its environmental strategy focuses
on facilitating the reduction of its
environmental footprint while maintaining PROPERTY VALUATIONS
a positive effect on asset values and
decreasing vacancy rates. Redefine
also wishes to share positive practices
and influence its development partners,
tenants and shoppers towards greater
sustainability activity.
MOVEABLE ASSETS
Redefine’s environmental materiality
framework
Redefine strives to understand and
Sustained value for all Redefine’s stakeholders… through sustainable reduce the impact that external enviro-
solar projects nmental factors such as climate change,
energy, water shortages and waste pro-
SPECIALISED VALUATIONS
liferation have on business operations
and have consequently identified material
issues that require continuous attention.
Redefine has implemented adaptation or
mitigation strategies to reduce the risk of
these material environmental factors. A+
CONSULTING SERVICES
National Number
0861 000 066
Head Office
011 475 5177
www.specval.co.za
20 Asset Magazine • Issue 68 Issue 68 • Asset Magazine 21One click to zoom in
Asset News
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Asset News
Re-rating on the cards
for SA REIT sector
S
outh Africa’s real estate investment
trust (SA REIT) sector is heading for a
re-rating; the question is whether the
sector will rally this year or next?
Already, the FTSE/JSE SA Listed Property
Index (SAPY) is out of 2019’s starting blocks
with its strongest January performance in
10-plus years since 2007, outperforming all
other asset classes. At the end of January,
the SAPY was up 9.17%, well ahead of the
FTSE/JSE All Share Index (ALSI) at 2.69%,
bonds at 1.7%, and cash at 0.6%.
Wynand Smit, real estate analyst at Anchor
Stockbrokers explains that most SA REITs
de-rated during 2018. “Should growth
expectations start to improve during
Andrea Taverna-Turisan
2019, the valuations of the SA REITs are
compelling,” he says.
Andrea Taverna-Turisan, SA REIT
A re-rate in the sector would be a big gain Association marketing committee
for it in 2019 points out Mvula Seroto of chairman, notes, “With the cost of equity
Catalyst Fund Managers. “However, this will having increased substantially in South
only be possible if the economic outlook Africa, management teams of local prop-
improves, there are positive results from the erty counters will need to focus on the
2019 general elections, and a reprieve from pure property fundamentals of their
credit rating agency downgrades.” organisations to ensure the property
sector will become more robust and better
According to Capricorn Fund Managers positioned to deliver shareholder value
SA’s Howard Penny, who expects 2019 to over time.”
be a better year overall for SA REIT returns
after a disappointing 2018, the jury is out The SA REIT Association represents
as to whether the sector could re-rate on South Africa’s R330 billion listed REIT
a relative valuation level this year. “Given sector. Its members comprise all the
worries surrounding rising global interest country’s listed REITs, which play an
rates, perhaps the bounce back may have essential role in the economy and the
to wait for 2020.” lives of South Africans. A+
24 Asset Magazine • Issue 68 Issue 68 • Asset Magazine 25• Workshop •
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The Evolved FM by David Khasebe Excel
for Property
Practitioners
The parable of a Incredibly, the premise of our assessment as practitioners
Course Objectives
boiled Industry
• Understand the fundamentals of
has been that the FM practice fundamentals are sound, financial mathematics applicable to
commercial property.
a mindset which suggests immunity to criticism and/or
• Understand the Excel environment.
improvement. I have spent a considerable amount of time
• Understand the alignment of financial
thinking about why the industry has been so flaky and out
T
mathematics with the basic financial
he integrated FM giant Carillion collapsed of touch. To characterise my conclusion, I must reference functions in Excel.
in January 2018. In the same year Mitie and to The Parable of the Boiled Frog, a fable describing a frog • Build a basic property cash flow,
Interserve were on industry watch for the same being boiled alive. The premise in this case is that if a frog which comprise live variables.
• Understand how to calculate an
illness which lead the Carillion’s ultimate death. At a put suddenly into boiling water, it will jump out, but if put
initial return.
time of submitting this for publication, I was hoping in tepid water which is gradually brought to boil, it will not
• Understand how to apply
no news was good news in respect of the two FM perceive the danger and boil to death. conditional formatting.
brands. This is an illness of debt as told by business • Implementation of graphs to
publications. If you speak to industry practitioners The analogy is relevant in that FM has and fails to perceive summarise data.
and experts, the condition has something to do with the danger which places FM brands at risk. I am talking • Build a dynamic amortisation table.
mis-procurement and price competition. Regulators about the danger to be effective within organisations; the
Who Should Attend
cite aggressive business practices of various kinds FM efficacy danger, if you will. A simple but fundamental This course will be of benefit to all who
as the reason behind the illness. While I will not fact is that the FM practice must re-orientate itself within operate in the commercial property
challenge the impact of any or all these on FM organisations to heal the ailing FM industry. My hypothesis industry but have not acquired formal
excel training or feel the need to refresh
business sustainability, I write here and elsewhere is around the turn of the century, organisations changed so their basic Excel skills. This includes
this year that the imact on the practice and industry much that the FM practice had to evolve but missed all the junior/middle management level
is epidemic, and this will take a few more columns signs of the changing operating environment. I delve into the professionals that struggle to convert
non-automated property data into
to unpack. Carillion is one of the well known brands signs in the next paragraphs. Carilion, Mitie and Interserve customised spread sheets for bespoke
which have succumbed, but there must be others are but indicators of ill-health and possible death. As if analysis. Participants are required to
if one connects the dots from the 2017 EY margins that’s not enough with the FM frog missing the changes in bring a laptop with a recent version of
Excel (either Windows or Apple based
study of 22 FM companies which highlights increased temperature, this has also muddled the application of the machines are acceptable).
body temperature of the UK market. It would be outsourcing concept as I explain later.
foolhardy to think this is exclusively a story about
the UK industry. As most transparent industries do, The signs on thier own did not pose any danger to FM, Cape Town
it provides lessons across the globe and its maturity especially if the FM industry had responded positively. 28 February ‘19
in terms of outsourcing can be used to preview less The danger has been in the lack of response. Exactly when
This is the tenth of a regular
matured industries over the next few years or decade. the century turned in the year 2000, ISO published 9001 to Johannesburg
facilities management column by alter top management’s hands-off posture towards matters
This makes it a global FM story and a window into 31 May ‘19
David Khasebe, national convenor worsening trading conditions to come. considered non-core.
for the FM Standard working
Contact
group of the South African Bureau The business publications and regulators are correct The CRES function emerged as different and alterative Sean Godoy
of Standards (SABS). in their assessment as they use a different lens to look to FM. This was a vote of no confidence in FM or at info@divercityproperty.com
at failing organisations and need not get technical in best criticism that FM was not effective for and within and/or Saul Nurick
their assessments. They also rely on industry experts organisations. These were first but telling signs the twenty- sd.nurick@uct.ac.za
for accurate assessment and all we have provided so year-old industry had to pause and reflect on its hands-off
far just scratches the surface - preferring to look at premise. It didn’t. Then in 2004, the hands-on posture was
symptoms rather than causes. further promoted by publication of ISO 14001, environmental
26 Asset Magazine • Issue 68 Issue 68 • Asset Magazine 27One click to zoom in
One click to zoom in
The Evolved FM by David Khasebe Asset News
management. Industry didn’t react, again. to see the premise to be outwardly focused,
Then in 2005, the publication of ISO 27001, continuously challenging to seek improvement
business continuity. There were other signs is how to keep ahead of curve. One needs
including the latest in publication of ISO to contrast market value to its potential
45001, health and safety but my point is of US$ 5 trillion per annum to appreciate
already made that the FM frog has sat in the what can still be done. More significantly,
water while it is gradually brought to a boil. the industry should obsess about how to
All of this suggest that the FM practice was realise the potential faster in these times of
never Y2K compliant and the industry had its interconnectedness wherein learning curves
own millennium bug. Unlike more prepared can be reduced. We missed the early signs
IT industry, we did nothing to prepare for the of change in the temperature at the turn of
21st century. century and are now missing it is our inability
to gauge temperature that will see us boil to
This leads us to the muddled application of death as industry.
outsourcing within the FM industry. Unlike
other industries, FM presents outsourcing We continue as normal without self-
as an either / or application and a mixture examination thinking the problem is out there.
between in-house and outsourced as Mis-procurement and price competition are
somewhat unnatural. Instead, the selling symptoms but get all the blame. We miss
proposition is based on wholesale outsourcing their trigger points and our own contribution
wherein the function is outsourced lock, to them. We are out of touch. Slow death is
stock and barrel. The premise here is to underway.
“relieve management” of focus and attention
on this strategic function, going against the Consistent with theme of industry being of
signs referred to in the previous paragraphs. touch, I will be tackling the issue of our
I refer to these as signs of the evolution local industry body SAFMA declaring itself
of the organisation – or signs of the 21st a certifying body in next column. A+
century organisation. Ironically, FM seeks
to relieve management of the function
while simultaneously preaching “vested
outsourcing” wherein an active role is
inherent.
Yes, this is the story in an inwardly focused
industry whose conferences and gatherings
have become nothing but eco chambers.
Voices are recycled and like-mindedness
prized. To challenge prevailing mindsets is
seen as not being positive about practice and
industry. The US$ 1 trillion per annum market
is reason behind narcissistic immunity. One Click here if you missed David’s ninth
only needs to study progressive industries installment in the Nov/Dec 2018 issue.
28 Asset Magazine • Issue 68 Issue 68 • Asset Magazine 29Cover Story Waterfall City
Waterfall City:
smart, green and world class
Giles Pendleton, head of
developments for Attacq
T
he developers and investors involved in Waterfall City, the new urban node
between Johannesburg and Pretoria, have had a rare opportunity to plan the
Interviewed by Tony Korsten development almost from scratch. This is important, given that our collective
thinking about urban design, human behaviour and the role of technology has all
Written by Claire Cole
evolved rapidly in about the last quarter of a century. Asset speaks to Giles Pendleton,
head of developments for Attacq, the lead developer and the biggest investor in the
Waterfall precinct about the progress of the development and what sets it apart.
30 Asset Magazine • Issue 68 Issue 68 • Asset Magazine 31Cover Story
A dynamic master plan
Critical to the success of any sizeable urban Two new four-star hotels are being planned for video to play here
development is the infrastructure, and in Waterfall City – one on the eastern side and
light of Gauteng’s ongoing traffic congestion one on the western side of the node – to serve
issues, a working road infrastructure has the growing corporate hospitality market. The
been a key focal point of the master plan. existing three-star City Lodge is also looking
In particular, the building of the planned to expand.
K60 arterial road running east-west on the
southern side of the precinct, has had much Demand for industrial property has sky-
energy devoted to it. rocketed, with the Distribution Campus,
Logistics Precinct and Waterfall Junction
“The various owners and developers here all catering for light industrial, logistics and
A video fly through of Attacq’s currrent and future property portfolio at Waterfall City
have made a substantial contribution to
moving the construction of the road forward,”
says Giles, who emphasises that the road
will relieve a tremendous amount of pressure
on the existing road network and will also
provide a necessary east-west route in a city
which is dominated by north-south routes.
Furthermore, the construction of the road
will unlock development opportunities for a
number of land parcels along it, including a
residential development of over 20,000 units
for the Waterfall Precinct.
While work on planning the necessary road
infrastructure is moving forward, so too are
many plans for commercial, industrial, retail,
residential and hospitality developments. The
main retail development anchoring the entire
precinct – Mall of Africa – was one of the first
projects to be developed at Waterfall City.
Several office developments have already
gone up, and of course, there are the iconic
PwC Tower and Deloitte head office – both
of which are giving wonderful impetus to the
development of the precinct.
32 Asset Magazine • Issue 68 Issue 68 • Asset Magazine 33Cover Story Waterfall City
distribution-focused businesses. Global At the moment, certain data comes from
names like BMW and Cummins have already corporate tenants, which have shared inform-
taken large industrial space. ation about their hospitality requirements
with Attacq. This has helped inform planning
Building a smart city decisions about the hospitality offering in
Waterfall City. In other instances, new smart
The master plan, which includes all the above- buildings equipped with the latest building
mentioned land uses, is a dynamic one – with information modelling technologies are able to
land uses being rethought as things develop generate their own data on things like water
or as it becomes clear that it makes sense to and electricity use. This is just the start of
cluster certain activities together or spread something much bigger, because data points
others out. To a certain extent, Giles explains can be networked, generating large volumes
that this is being driven by the analysis of of data or ‘big data’ – and this is when real
data received about the use of existing built insights can be gained.
assets in the Waterfall City area. While it isn’t
possible to gather data from every building at BMW Distribution Centre
this stage, Attacq’s vision for the precinct is
for it to be a smart and sustainable city – with
the smart aspect being powered by big data.
Cummins
34 Asset Magazine • Issue 68 Issue 68 • Asset Magazine 35Cover Story Waterfall City New Deloitte HQ under construction Story continues on the next page. 36 Asset Magazine • Issue 68 Issue 68 • Asset Magazine 37
Cover Story Waterfall City
“The success of Waterfall City is about robust
planning based on very strong data sets. A
smart city is really a network of a number of
data points which start to create ‘big data’ –
and from that we can pick up user patterns
and predictability, and use algorithms to
determine a number of things,” Giles explains.
In the same way that such data allows one
to drive better efficiency in a single building,
it can be used likewise in an entire precinct
or city.
Understanding how spaces, resources,
equipment and many other things are used
gives one the tools to plan better from an
operational and maintenance perspective,
because the data gives one predictability.
Also, it allows one to pick up very quickly
when there is a departure from the norm in
any of the monitored systems – electricity or
water consumption, for example. Problems
can be identified and addressed far more
quickly than in the past.
Data not collected from client feedback is
generated in many different ways – it might
come from occupancy or motion sensors,
CCTV cameras, or smart water and electricity
meters, for example. Attacq is currently in the
process of networking a number of building
management systems in different buildings so
that a real-time mapping process for the city
can begin. “We ultimately expect to end up
with a central ‘command and control’ centre
for the city, probably with two main control
centres. One would most likely be about
The Ellipse – the first luxury apartments in Waterfall City
38 Asset Magazine • Issue 68 Issue 68 • Asset Magazine 39Cover Story Waterfall City
things like safety and traffic management, “The biggest risk to most of our tenants is
whilst the other would focus on building not rental escalations – it is the out-of-sync
management and aspects such as utilities escalations in their utility costs.
and consumption,” Giles says.
When you add rental and utility costs to
Being the best to attract the best obtain the total cost of occupancy, in many
cases this number is rising faster than the
There are several important reasons for going businesses themselves are growing,” he
to these lengths to build a better city, but elaborates. By installing things like solar
probably the most important is to be able photovoltaic panels and smart electricity
to attract the very best tenants. People will meters, implementing grey and black water
naturally seek out places that they feel offer recycling systems, and putting energy and
them the best and most attractive options, water efficient lights and fittings into buildings,
whether that is about lifestyle or about work. one can contribute to bringing this cost down
City competitiveness is a very real concept in a meaningful way.
these days, so if one can offer a better life-
style and a better workplace all in one highly Interestingly, the development of a smart city
liveable and functional precinct, that gives environment is also intrinsically linked to being
one a distinct advantage. a sustainable city. Many of the measures
taken to improve building and city efficiency
So far, Waterfall City’s list of corporate tenants not only help tenants’ businesses run
The world’s largest mixed-use integrated solar power-diesel hybrid solution at
shows that it is indeed attracting the best of better, but they contribute to a better overall The Mall of Africa. The 4,755kWp installation covers most of the
the best, and Giles points out the reasons centre’s roof space, an area of approximately 45,000m² or 4.5ha.
why: “We are effectively a private city with
public roads, We run a safe, functional and
clean city – a smart city environment which
will also be a fully green city. In addition,
our accessibility is better than most other
premium business nodes,” he says.
In attracting and retaining the best tenants, he
says it is important to go beyond the physical
environment (as important as that is) and get
involved even further – at a level where as a
landlord, one looks at ways to help tenants
that go beyond the traditional responsibilities.
Helping them gain control over their utility
costs is one very important way to do this.
40 Asset Magazine • Issue 68 Cell C Accenture
41
Issue 68 • Asset MagazineCover Story Waterfall City
environment. “Our intention in the future is for Demand for the space being built is certainly
all our buildings to be certified either under healthy, and is being driven by a number of
the Green Star SA or the LEED rating system, factors. “Firstly, there is a flight to quality –
and we plan to retrofit existing buildings especially by corporate tenants,” explains
that aren’t certified,” says Giles, adding that Giles. Tenants are being drawn by the
Attacq has a strong sustainability agenda. accessibility of the area, the new and more
More important than the individual building modern amenities, and the state-of-the-art
ratings, however, is the overall sustainability of smart environment that Waterfall offers.
the precinct, which is something that Attacq’s Then there is a ‘flight to efficiency’ – and
sustainability team has been working on and efficiency has been the driver of many of the
will continue to develop. new developments around Gauteng, be they
in Sandton, Rosebank or here at Waterfall.
Well on track and proving highly
attractive Many of the beautiful new office buildings
which have arisen in these nodes over the
Because of the size and nature of the past few years have come about because
Waterfall City development area, Giles many companies are consolidating their
says that it makes sense for Attacq to operations (often spread over multiple
partner with a number of other parties in the locations) into single offices. Waterfall
development of various different land parcels. makes perfect sense as a new central
Each of the partners that Attacq is working location. “Tenants are also looking to follow
with on a particular scheme brings something international best practice in terms of space
of their own to the process. Joint venture efficiency – for example, achieving an average
partners on current schemes within the of one person per 10m2 in their buildings. In a
precinct include Atterbury, Zenprop, new building, they can either get more people
Barrow Properties and Sanlam Properties into the same floor area that they previously
occupied, or they can reduce their floor area
“We have developed approximately 60,000m2 by 20% for the same number of people,”
a year on average to date,” he says, pointing he says.
out that Waterfall is delivering more on a
consistent basis than any other precinct in Efficiency also applies to the energy and water
the country, bar Sandton. Attacq has mapped efficiency that Waterfall’s buildings offer – and
out a plan for delivering the many buildings in although South Africa might still be a relative
Waterfall City, taking into account the fact that newcomer to the green building world, tenants
the economy has its ups and downs. are quickly realising the benefits of occupying
PwC Tower overlooking Waterfall City
42 Asset Magazine • Issue 68 Issue 68 • Asset Magazine 43Cover Story Waterfall City
a green building. In more developed parts of the
world, certain tenants demand green buildings,
and international corporations with offices in
South Africa expect nothing less than they are
able to find elsewhere in the world. In addition,
given the power and water challenges that South
African cities are facing, buildings which offer
backup power and water supply redundancy
are looking increasingly attractive.
When it comes to industrial tenants, demand is
also high. A good many of the quality tenants
secured for Waterfall’s various industrial precincts
have been attracted not only by the accessibility
and central location, but by the fact that they can
develop premises which offer the opportunity
for future expansion. “This is much easier to
achieve with a greenfields development,” says
Giles. “Many of the buildings we are developing
have expansion opportunities built into them,
and a tenant like Massmart, which has only been
in its new building for a few years, has already
undertaken one expansion,” he adds.
He is pleased that Attacq’s efforts to build a
world-class city are being acknowledged in the
market. When one is able to attract corporations
of the calibre of PwC, Deloitte, Accenture
and PSG (to name a few), the recipe is clearly
working. Waterfall is proving attractive to many,
and he says that there are even clusters of
businesses emerging – in the financial and
building services sectors, in the bio-medical and
medical industries, and in the technology sector.
“These are exactly the types of tenants that we
Executive management want at Waterfall – value and GDP-accretive
From left to right: Tasje Kodda, company secretary; Peter De Villers, chief investment officer; businesses who want to see themselves as part
Melt Hamman, CEO; Jackie van Niekerk, COO; Raj Nana, CFO; Giles Pendleton head of development. of a smart, green precinct,” he concludes. A+
44 Asset Magazine • Issue 68 Issue 68 • Asset Magazine 45Interview with Professor Manya Mooya University of Cape Town
UCT
modernises property
studies degrees
for 2020
Interviewed by Tony Korsten Associate Professor
Manya Mooya, University
Written by Claire Cole of Cape Town
46 Asset Magazine • Issue 68 Issue 68 • Asset Magazine 47Interview with Professor Manya Mooya University of Cape Town
University of Cape Town
T
he University of Cape Town is nearing The design of Curriculum 2020, as it is the contextual, thematic and philosophical A degree that responds to contextual
the end of a three-year process referred to, has been in process since 2017, foundations of this completely new curriculum. issues in SA
which has involved rethinking and and as Manya notes, it is long overdue. Phase 2, which was completed late in 2018,
redesigning its property studies degrees. “The UCT property studies programme is involved discussions with external stakeholders Manya explains that this entirely new
UCT’s Department of Construction Economics probably one of the oldest in South Africa, such as the Royal Institution of Chartered curriculum was designed in response to five
and Management has offered the BSc and and although there had been minor revisions Surveyors (RICS) and the South African major contextual issues in the contemporary
BSc(Hons) degrees in property studies since to courses over the years, the programme had Council for the Property Valuation Profession property environment.
the early 2000s, and has recognised that as not comprehensively been overhauled,” he (SACPVP) – both of which accredit the current
the property industry has evolved in South says. “We decided to carry out a fundamental honours programme. Phase 3, which has just 1. Increased complexity of property markets
Africa, so property professionals need to be review, starting with a clean slate and asking begun, involves steering the curriculum through
suitably educated in order to work effectively ourselves what we thought a new curriculum UCT’s internal approval process by the faculty “The property market has changed significantly
in this environment. Associate Professor would look like, free from the constraints of and various committees, culminating in UCT over the past few decades,” he notes. “The
Manya Mooya takes us through what the the previous one.” Senate approval. “We hope to obtain Senate shift that is most significant and obvious
programme redesign involves, and how approval by end of this year so that the new from our perspective is that where as in the
it prepares students to be contemporary This process involves three phases. The first, curriculum can be launched for the 2020 past, there has been a great deal of emphasis
property professionals. which began in 2017, involved discussing intake of first year students,” he says. on direct property ownership, there is an
48 Asset Magazine • Issue 68 Issue 68 • Asset Magazine 49Interview with Professor Manya Mooya University of Cape Town
increasing importance placed on indirect the developing world. These two disparate 5. Offering a decolonised curriculum the industry is used to, we are trying to
property – that is, investment structures economies don’t even exist that far apart – rebalance the curriculum by bringing into
such as real estate investment trusts (REITs), take Sandton and Alexandra, for example. Any university that turns a blind eye to the view, or legitimising, the study of informal
property derivatives and others,” he explains. difficulties that have been experienced in and customary property,” he continues.
“What we recognise in Curriculum 2020 is recent years with respect to decolonisation It is a reality that in many parts of the
The new curriculum raises the profile of that our graduates here in South Africa, and at issues is probably naïve. “We have given a country, property ownership exists without
indirect property investments and the more UCT in particular, need to have the capacity lot of thought to what it means to create a formal title deeds – yet its ownership is
integrated nature of the property and capital to understand and move between these two decolonised curriculum,” he explains, saying acknowledged in indigenous tribal structures.
markets in the world today. different worlds,” he says. Whilst a property that part of the solution is to recognise that And understanding of such aspects, and
professional educated in Europe might only the dual economy mentioned above is a the notion that they hold equal legitimacy
2. Technology in the world of property understand the first-world aspects of the fundamental part of South Africa’s property in the property market, is therefore given a
property sector, he believes that property market structure. “In addition to the formal place in this new curriculum. This is not to
Technological advancements in the past 20 professionals working anywhere in Africa and commercial property structures that downplay the conventional or formal property
years have been both rapid and disruptive need to be able to navigate and operate in
to industries and markets. Curriculum 2020 the context of dual economies.
responds to this by introducing a proptech
(property technology) component to the 4. Bringing sustainability to the fore
programme right from first year. “Over and
above that, technology is embedded in the Sustainability is an unavoidable aspect of
entire curriculum. This is important because property today. Whether it is understanding
technology now plays a role in everything the broader environmental issues, or the
from property management to property specifics of good planning and green
economics,” Manya explains. Students trained buildings, the world as a whole is moving
in the new programme will have the ability in a direction where sustainability must be
to develop augmented valuation models of front and centre in our economy – property
property markets – something which requires included. “There is a strong environmental
a strong technological understanding and ethic that goes across the curriculum, and
mathematical/statistical skills. which is emphasised in all courses,” says
Manya. In addition, there are specific courses
3. Acknowledging the dual economy which address property and the environment,
green building, the valuation of natural
South Africa is unlike many property resources, energy and water efficiency, and
markets in the world in that it has a highly similar topics. There is also an alignment
sophisticated commercial property sector, between the environmental considerations
on a par with most developed economies. and the emphasis on technology, because the
Yet, this exists side by side with another very two have become intertwined in practice.
basic property economy, more like those in
50 Asset Magazine • Issue 68 Issue 68 • Asset Magazine 51Interview with Professor Manya Mooya University of Cape Town
types, however. In support of this, courses the emphasis on property law and focusing
covering as valuation, property economics harder on the technical skills required.
and property law, for example, all build in the Property law retains an important role,
understanding of this more informal but as its own course.
and customary market.
A new course in econometrics will be
With a curriculum that responds to these five introduced, which gives students the skills
important contextual aspects, the foundations to carry out quantitative market analyses,
are well laid for a contemporary course of develop market models for forecasting
study – one which is modern, sensitive to the or understanding markets, and develop
current environment and up to date in terms of augmented valuation models. “We have
changes in the world. “The new curriculum is strengthened the property economics
also rebalanced in its scope and tone,” Manya courses, allowing for a greater understanding
notes. Instead of creating a degree which is of the way the property market works. We
primarily focused on the commercial, profit- have also placed a greater emphasis on
driven property space, the focus is broadened the urban planning and regulatory issues
to include aspects like the non-profit sector in property development,” he explains.
and even public sector aspects. This, he feels,
is a more holistic approach which prepares Overall, the BSc and BSc(Hons) Property
students to pursue a range of options within Studies courses really do have a whole new
the broader sphere of property. look – one which Manya and his colleagues
at UCT cannot wait to see implemented.
There are also a number of specific aspects
which he says have been strengthened Even the student representatives involved
in the new curriculum offering. Property in the consultation process have expressed
development, for example, is given much excitement about it, saying that their only
greater emphasis. So are the property regret is that they won’t get to graduate
management and facilities management under Curriculum 2020. The mechanics of
aspects. Property investment and finance are transitioning students who started under the
covered in greater detail, and cover advanced old curriculum to the new one still have to be
aspects such as REIT investment structures finalised, it is hoped that Curriculum 2020 will
and property derivatives. The valuation side receive institutional approval this year and be
has been streamlined by removing much of ready to roll out in January next year. A+
11 Alice Lane, Sandton
52 Asset Magazine • Issue 68 Issue 68 • Asset Magazine 53Interview with Bradley Lovell SKIDATA
SKIDATA grows its
brand and presence in
Bradley Lovell,
MD, SKIDATA SA
SA market
54 Asset Magazine • Issue 68 Issue 68 • Asset Magazine 55Interview with Bradley Lovell SKIDATA
Interviewed by Tony Korsten
Written by Claire Cole
Bradley photographed by Tony Korsten
T
here is no denying that the current Sandton Towers. “Because of the critical
business environment in South Africa mass we have in the area, we now have a
is challenging, but there are still com- technical team based in Sandton which
panies that find opportunities in tough times. specifically looks after the precinct around
SKIDATA, a global company specialising Sandton City, including the aforementioned
in access and revenue management, has sites,” Derek notes. This enables SKIDATA SA
entrenched itself firmly in the South African to deliver fast and efficient after-sales service.
market and is pleased to report that it had
a very successful 2018. Asset chats to MD In occupying a new site, Bradley says that
Bradley Lovell, and Derek Morris, head of part of SKIDATA SA’s strategy is not simply to
sales and marketing, to find out more. replace existing equipment on a like-for-like
basis. “We look at the various types of tech-
SKIDATA is now a well-known parking and nological solution that we have available; we
event access technology supplier in the South analyse our specific customer site needs and
African market, having installed parking and look at how we can match the correct tech-
access management systems at many pres- nology to each customer’s specific needs,”
tigious sites around the country. During 2018, he explains. “This not only gives our clients
the company secured contracts at a number the correct solution for their requirements, but
of key sites around South Africa, including it reduces the capex cost for them.” Derek
many in the prestigious Sandton area such as and his team visit each and every site, carry
Radisson Blu Sandton, The Marc, the Leon- out an in-depth analysis, and then sit with
ardo, the Acsiopolis and Grayston Shopping every customer to determine the specific sys-
Centre. These sites reinforced SKIDATA SA’s tem design and then offer them the best and
presence in the area, where they already have most cost- effective solution.
systems in place at the Sandton Hilton Hotel,
Benmore Gardens, and slightly further out at Advances in technology mean that there are
Illovo Point and 33 Baker Street, Rosebank. now many different solutions available for
parking and access control and that the own-
“We grew the number of sites where we er or operator of a site doesn’t simply have to
have SKIDATA technology solutions installed settle for old-fashioned ticket and cash-based
substantially during 2018,” says Bradley, systems if another option works better for
adding that the sites in the Sandton area them. For example, there is a big shift towards
aloneUberior
amount House, Edinburgh
to 15 within a 6km radius of cashless and ticketless parking systems,
SKIDATA Lite.Gate, Power.Gate & Barrier.
Gate peripherals for entry & exit Lanes
56 Asset Magazine • Issue 68 Issue 68 • Asset Magazine 57Interview with Bradley Lovell SKIDATA
SKIDATA Barrier.Gate,
Power.Cash & Power.Gate
peripherals with management
tools & tickets
by means of which visitors are able to pay It makes sense to move to technologies like He and the SKIDATA team are confident that and frustrations that operators encounter, and
via credit or debit card, or through a vehicle this in a world where cash is inconvenient for this includes not installing two automatic hence, endeavour to identify these upfront in
license plate recognition (LPR) system. Credit visitors – whether they are retail shoppers, payment machines where one will do, even recommending the best technological solu-
and debit card payment options in particular or visitors to hotels, hospitals, or offices. Not in case of a breakdown. “Our automatic pay- tion to the customer. Cashless systems, for
are being well received. “We recently installed everyone carries cash all the time, but most ment machines run properly and they work,” example, are being well received for a number
such a system in the Sandton area, and that people these days have a credit or debit card. he maintains. of reasons. Normally, an operator would empty
site is operating on a 40% cashless basis “Our aim is to achieve three fundamental the cash from a payment machine daily. This
now,” comments Bradley. Similarly, another things in installing our cashless technology: Since he and Derek have both worked on is a risky activity, presents an opportunity for
large-revenue client in Sandton has credit reduce cash management, make things easier the operator’s side of the business in their crime or fraud, and takes a great deal of man-
card payments at a solid 18% of total revenue for the customer, and put in the correct and long careers in the revenue generating park- power. With increased use of cashless sys-
within two weeks of installation of the system. optimal equipment for the site,” Bradley adds. ing industry, they understand the pain points tems, this activity can be reduced drastically,
58 Asset Magazine • Issue 68 Issue 68 • Asset Magazine 59Interview with Bradley Lovell SKIDATA
SKIDATA VIDEO
SKIDATA Lite.Gate, Power.Gate, Barrier.Gate & Power.Cash peripherals
cutting down on these risks and on man- says Derek. Whether it is a matter of upgrad- exchange rates don’t always work in our favour, for applies. “We say that our equipment has a
hours and operational costs. SKIDATA SA’s ing old technology, changing the payment so clients need to be convinced that the solu- minimum life of ten years, but if it is in a pro-
automatic payment machines with cash also methods, or reducing delays at entry and tion is worth the expense. “We sit with all our tected location like an underground parking
alert operators when they need to be emptied, exit points, he says that SKIDATA has a wide clients, show them the complete suite of tech- garage, and if it is well maintained and oper-
meaning that the APM’s do not need draining range of products and technologies that can nological solutions available, and then select ated correctly, it can last much longer. I have
on a daily basis. be considered in finding the correct solution. the best options which work for their specific seen sites in Austria where the equipment is
requirements and budget,” he continues. over 20 years old and still functions perfectly,”
“We identify our clients’ pain points and then While the technology itself is not cheap (it says Bradley. Landlords and operators can
offer them technology which we believe will comes from Austria), it is on a par with inter- At the same time, he and Bradley believe therefore install the equipment with confi-
offer the best solution to those problems,” national competitors. Having said that, that the adage about getting what you pay dence, knowing that the lifespan justifies the
60 Asset Magazine • Issue 68 Issue 68 • Asset Magazine 61Interview with Bradley Lovell SKIDATA
upfront capex cost, and that the equipment The next phase in true ticketless and cash-
can always be updated or upgraded within the less parking facilities will be “Tap & Go” at
lifetime of the solution. SKIDATA is also quite the entry & exit lanes, which SKIDATA SA
happy to install third party technologies along- will introducing live very shortly.
side and within its systems – such as biomet-
ric identification systems, for example. “We believe our approach over the past year
or two has been successful,” Bradley com-
From an operational side, the back-end ments, “we are very proud of being part of
technology is also designed to make life an international group that includes SKIDATA
easier for operators and landlords. Real-time representation in 104 countries worldwide,
reporting can be done by each machine on with over 10,000 solutions installed.” Adding
a daily, weekly or monthly basis, as required that although the company has a well-
by the client. It’s all based online, and allows respected name globally, he emphasises
operators and landlords to view information humility in his local team. “Ultimately, we
in real time. In addition, with something like are at the service of our customers, and it’s
a cashless system, money from payments important to keep that in mind first and fore-
is banked almost immediately, cutting out a most,” he says. He believes in SKIDATA SA’s
number of steps in the cash management products and solutions, but adds that the
SKIDATA team at Intertraffic
process. people who install and maintain them also Amsterdam in March 2018
have to operate at a level of excellence in
The technology keeps evolving, too, and order to get the best performance. “We have
where appropriate, SKIDATA is pushing the developed a good team of experts here at And in an exciting move for
boundaries with certain customers and SKIDATA SA and have developed a good SKIDATA South Africa, there is
installing the absolute latest. A good example name in the market, and we are glad that a B-BEEE deal which is in the
is the Louis Norval Foundation in Cape Town, we’ve come through the recent challenging process of being concluded,
where they have created their first ticketless period very well.” which we’ll look at in more detail
and cashless site in South Africa. The access in the next issue of Asset. “We
system works on the basis of vehicle license Overall, Bradley and Derek feel that 2018 are pleased that our strategy has
plate recognition (LPR), and allows access was a highly productive year, notwithstanding delivered for us, and that 2018
and egress by visitors to the site without tak- some of the challenges in the economic proved to be a good year and we
ing a ticket and then allows them to pay by environment. They will continue to grow the look forward to more challenges
credit or debit card, making the system both SKIDATA brand in South Africa despite the in 2019 in Driving Your Digital
ticketless and cashless. Although it is a first tough economy, by offering customers solu- Future,” Bradley concludes. A+
for SA, such systems are available and in tions that meet their needs at a cost effective
regular use in Europe. price and with superb customer service.
62 Asset Magazine • Issue 68 Issue 68 • Asset Magazine 63You can also read
