The new R120 million The Pavilion retail centre is in operation in the main street of Bredasdorp, on the site of the former showgrounds at the southern end of the town.

The Pavilion was developed by Asrin Property Developers in joint venture with Harry Viljoen Properties.

The new centre was designed by Cape architects, Smith & Smith, in a style appropriate to the Overberg wheatlands and sheep pastures, says Ishmail Essa, chief executive of Asrin Property Developers. It has 10 800m² of retail space and a small office space section in two circular three storey towers rising from the main building. The centre has free basement parking for some 400 vehicles and open parking for a further 200 cars, and large tracts of surrounding garden are planted with indigenous flowers and shrubs.

Essa says an active letting campaign resulted in 96% of the available space being taken up by the official opening day on June 24.

“From an early stage, it was clear that Checkers would take about 3 000m² of floor area and that this would be one of its Blueline stores, with a butchery, a bakery, a delicatessen, wine stocks, hardware and a variety of other goods, very attractively presented.”

Also now occupying space in The Pavilion are Markhams, Crazy Store, Clicks, Totalsports, Tekkietown, Cape-Agri (which supplies general goods appropriate to a farming lifestyle), Wimpy and other fast food/coffee outlets, such as Chicken City.

“With the present subdivision there is space for 27 line shops, which have average rentals of R150/m², and the few tenancy gaps will all be filled in the next few weeks, and will include a Spur Steak Ranch.”

The flat roofed centre has a central mall, most of which is open to the sky but the enclosed spaces are all air-conditioned. The shopfronts are glass and aluminium and most face inwards but seven small retail outlets in a separate section give a village feel to the giant complex.

Essa says Asrin realised some time ago that commercial development opportunities in Cape Town were not promising in the downturn and looked to the rural areas. Bredasdorp, which has grown exponentially in the last decade, was obviously in need of a bigger and more sophisticated retail complex and the recently completed building will serve the area comprehensively for many years to come before further developments will be needed. Arniston, Struisbaai, Napier and other surrounding towns’ residents are all using The Pavilion.

The construction work on the complex was undertaken by Asrin under the leadership of development director, Shiraz Onia. Marius Ehlers was the independent project manager of the nine month development, the consulting civil, structural and mechanical engineers were LSM, and SVR Quantity Surveyors handled this aspect of the work. The project was completed on schedule and on budget.

Call Shiraz Onia at Asrin on 021 713 3012 or email sonia@asrin.co.za.

A new state-of-the-art pedestrian bridge linking the Crystal Towers development to Canal Walk shopping centre is nearing completion at Century City.

Being built at a cost of more than R11million, this is the fifth bridge to be built at Century City spanning the Grand Canal and providing pedestrian links between the north and south banks.

The new 86m bridge links the Canal Walk precinct directly with the “internal street’ of Crystal Towers, which comprises a five star 180 room African Pride hotel and spa, 91 luxury apartments and 7 000 m2 of Triple A grade offices. The internal street is in turn a major pedestrian arterial route between the Crystal Towers precinct and the planned Bridgeways Precinct at Century City.

Greg Deans, a director of Rabie Property Group, says the first phase of the 100 000 m2 Bridgeways Precinct development was planned on a site south west of Crystal Towers near the Virgin Active gym, and will consist of offices, shops and hotels.

“Century City is included in phase one of the City’s Bus Rapid Transit System and the planned Century City BRT station is close to Crystal Towers, so the new bridge will also be another link for passengers who want to visit Canal Walk.”

Deans says the bridge landing on the Canal Walk precinct is designed in such a way that future expansion of the shopping centre would be able to interface relatively seamlessly with the bridge, providing easy access to the upper level of the centre.

Designed by Vivid Architects, the eye-catching 72 ton bridge is lit up at night by low voltage LED lighting on the 19m high arch and walkway. The arch lighting changes colour every five minutes to create an intriguing ambience.

Construction of the bridge has taken about nine months and is due for completion in the next few weeks.

Richard Williams, GVK chief executive

The construction industry, which generally lags behind other sectors in the economic cycle, is currently in a recession, a situation which has been aggravated by the fall off in work following World Cup 2010.

As a result, many construction businesses have had to significantly downsize, and some have even closed down. One company, however, has stood the test of time: Gordon Verhoef & Krause, a specialist in the fields of building, renovation, restoration and the recycling of buildings, is celebrating its 50th anniversary this year.

“GVK has survived three recessions and much industry upheaval and continues to chart its path in line with solid business values, coupled with continuing innovation and planned expansion, cementing the company’s reputation in the industry,” says group chief executive, Richard Williams.

“The company has evolved from what Gordon Verhoef, Earl Krause and David Maughan began and has seen an enormous amount of growth and change over the past few years. We have extended the scope of our services as well as the size and value of our contracts, created new business divisions, and embedded our company culture. We have also expanded our training programmes at all levels, upgraded business systems, stepped up CSI and community initiatives, while driving compliance and accreditation in the areas of health, safety and the environment and BBBEE.

“GVK has built its reputation on its expertise in painting, restoration and building recycling. However, to move forward and meet client demand, we added new building works to the client offering about 10 years ago. As a result, we have grown our capacity to take on increasingly larger projects, currently up to R200 – R300 million, with our bread and butter work being in the R10 to R60 million range.

“To ensure that we retain our traditional skills we have established four dedicated painting and restoration businesses in the various regions with regional managers appointed to focus solely on the retention and development of these skills.”

Williams says although traditional and specialist industry skills have been an essential part of GVK’s continued growth and success, its strong company culture has played an enormous role in continuity and service delivery. This has positioned the firm to attract and retain people who share its ideals and combine a good skills and cultural fit. Many young people who joined the company as students and who understand its values are moving up through the ranks, bringing with them contemporary thought and innovation which will set the course for the future of the business.

“Strong relationships with our clients have always been of prime importance to us. By providing them with a quality product and good service and being sensitive to their requirements, we have been able to build lasting relationships in the industry. The formation of a national business development unit headed by shareholders Dumisani Madi and Johan de la Querra has had a significant impact on our workload and the number of contacts established with a variety of clients,” he says.

“Our recent investment in an integrated IT and business system will ensure relevant, accurate information to enable up-to-date reporting of project elements such as costs and progress, and allows for quicker reaction times and more efficient management. A strong commitment to health and safety has been bolstered with the appointment of a national group health and safety manager. He has ramped up our health and safety performance, and has been instrumental in our membership of the Green Building Council of South Africa and our current OHSAS 18001 accreditation process.

“These developments have resulted in steady annual growth, with turnover reaching R700 million this past financial year. We ascribe this to our philosophy of constant improvement while safeguarding our principles of client service and healthy company culture,” says Williams.

The low acceptance was expected as the offer price was below the trading price of Hyprop units.

Redefine recently acquired 19 686 558 Hyprop units from Coronation Asset Management (Pty) Ltd which triggered an offer to the remaining Hyprop unitholders. As a result of the transactions, Redefine’s interest in Hyprop has increased from 55 323 970 Hyprop units (33.3% of Hyprop’s issued unit capital) to 75 937 121 Hyprop units (45.7% of Hyprop’s issued unit capital).

Redefine chief executive, Marc Wainer, says the company is satisfied with its controlling interest of 45,7% and has undertaken to obtain Redefine unitholder approval before acquiring any further Hyprop units.

“The stake places a control premium to the value of Redefine’s holding in Hyprop, enhances Redefine’s listed securities portfolio, and is sufficient to influence the strategy of Hyprop’s portfolio, and will enhance Redefine’s distributions in the next financial year,” he says.

A launch function will take place from 8:30am to 12:00 noon at the Blue Waters Hotel, 175 Snell Parade, North Beach, Durban on Tuesday September 7. All insurance brokers, managing agents and trustees are invited to attend.

In addition to the Stilus presentation, Barbara Schingler of the National Association of Managing Agents will discuss matters of interest to the sectional title industry. She will be followed by Tertius Maree, a member of the Stilus team and a recognised sectional title specialist.

Charles Coetzee, chief executive of Stilus, says the sectional title industry is now being given the financial relief and breakthrough which has been needed for a decade or more.

The Stilus policy, which is underwritten by Santam, is tailored to assist sectional title bodies corporate whose members have fallen behind on their levy payments. Once policies have been implemented, immediate catch-up funding is provided to bodies corporate to cover shortfalls in their levies.

Using Coetzee’s experience, acquired over many years in sectional title management, Stilus then undertakes to collect the arrear levies from the defaulting members – at no cost to the bodies corporate. However, the bodies corporate are the insured bodies and are responsible for paying the Stilus premiums. When apportioned, premiums amount to approximately R10 a month per unit, in return for which the body corporate trustees will have complete peace of mind on financial matters.

Coetzee says Stilus is revolutionary in that, unlike most other sectional title “rescue” packages, it is not a loan to the body corporate and it places few obligations on them.

“The premium is almost ludicrously small considering the immense benefits derived by bodies corporate. This has been a big surprise to the sectional title industry, which had expected far higher Stilus premiums.”

Stilus marketing director, Michael Garvin, says illiquidity has been the curse of South African sectional title bodies corporate.

“All too often, schemes, which were perfectly satisfactory when launched, are allowed by inexperienced trustees of bodies corporate, and in some cases inefficient managing agents, to fall behind on levy collection and consequently property maintenance and municipal services payments. This rapidly results in the properties losing their attractive appearance and intrinsic value and in some cases the downward spiral eventually results in substantial losses to all parties concerned.

“There are about 60 000 sectional title schemes in South Africa with 800 000 units, which provide accommodation for over 3,5 million people. If bodies corporate are properly administered and managed the sectional title schemes can appreciate faster than other types of residential accommodation, but if they are neglected they also lose value faster.”

“Stilus has the potential to remedy the very unhealthy sectional title problems that are now rife throughout South Africa. We estimate that over 30% of sectional title schemes are behind on payments. But the initial response to Stilus has been so good that we now expect to be serving 3 000 schemes by the end of the first year of operation and to increase this exponentially year by year,” says Coetzee.

Send an email to Vicky Vermaak at vicky@stilus.co.za, or call Michael Garvin on 021 914 9002 or 083 345 6342.

In the fiercely competitive property industry many agencies make claims to market share which are frequently confusing and even contradictory when read by the average consumer.

Pam Golding Properties’ MD for the Western Cape metro region, Laurie Wener, cautions that consumers must examine such claims very thoroughly, before accepting them as fact.

“When it comes to assessing market share, the only comprehensive and reliable source of information is the information released by the deeds offices, and compiled in the SAPTG (South African Property Transfer Guide),” says Wener. “This information is available electronically by subscription, and includes the address of each property sold, the names of the sellers and buyers, the dates of sale, the dates of transfer and the sale prices. There is quite simply no other accurate source of such property information, and any claim to market share based on any other source is of questionable accuracy and validity.”

The problem is that the reporting of property transfers by the SAPTG is frequently delayed – by anything from five months to a full year after the date of conclusion of the sale. On average, it takes around three months from the finalisation of a sale (with all suspensive conditions having been met) to the actual transfer of the property. This may vary from one deeds office to another, based on a number of variables. After transfer has taken place, it still takes another month or two for the transaction to reflect in the SAPTG records. This means that an agency can only calculate its own market share with any level of accuracy from about five months in arrears.

“This lag may be a source of frustration for some agencies,” says Wener, “but the fact remains that there is no other reliable and complete source of information on transfers. And the bottom line is that there is no way of claiming market share accurately, based on sales before actual transfer.

“Certainly, there are other services which record and report on sales on a monthly basis, before transfer. But these rely on optional submission and subscription by the estate agencies, and are by no means comprehensive. There is also no quality control to ensure the accuracy of the finalised sales submitted by the agencies. So though it is attractive to be offered information that is fresh – sometimes only one month old – in reality you aren’t getting an accurate or complete picture of market share. It is at any time quite simply impossible for an agency to assess its own position in the market relative to the opposition, as there is no method of identification of sales other than one’s own.”

In conclusion, Wener says, consumers would do well to assess the source of any claims to market share made by any agency.

“Before accepting such claims, you need to look at the source of the information as well as the time period being represented, and the unit of measurement. For example, is the agency referring to the number of units sold, or total sales value? It goes without saying that claims based on a selective reporting service or those encompassing only short periods of assessment may well be highly volatile, and not truly reflective of general trends.”

For most home buyers value for money is a priority – particularly if they are buying with investment potential in mind or with a view to future retirement.

Buyers are also looking for appealing homes in desirable locations. Perhaps a tall order, to expect to meet all these criteria? Not so, says Wayne Rubidge, Pam Golding Properties’ area principal in the Karoo.

“The Karoo spans vast areas across several regions, and still offers affordable properties which are sound investments and retirement options. Where else can you buy a historic cottage in a great location for R250 000?”

He says many Karoo towns are bustling with activity and are home to new industries that have sprung up as new home owners and business people have moved into the area. For many others the search is on for that ideal, affordable Karoo getaway property.

“Prices of homes are steadily increasing from a low base, with good demand in most towns in the under R500 000price range. However, a wide range of properties in this bracket and with historical significance is still available in most towns, and in some towns homes are fetching millions of rand,” says Rubidge.

He says to find bargain semi- or un-restored Karoo heritage properties you may have to delve further into the Karoo where many towns wait to be ‘discovered’. Stretching across four provinces the Karoo towns that still offer homes at excellent prices are little known places such as Petrusville, Carnarvon, Kenhardt and Merweville in the Western Cape. Here a spectrum of appealing, historic houses cover a broad price range with the most popular lower end between R250 000 and R380 000 up to R1.2 million and even R2.5 million.

“In Merweville and Murraysburg, which are in the Western Cape’s Karoo, affordable options range from a large vacant plot for R40 000 to a three bedroom Victorian cottage on a 2 855 m2 erf in the old part of town priced at R350 000. In Murraysburg, Merweville and other small Karoo towns there aren’t many properties for sale at any given time – and this is another reason why Karoo house prices will increase steadily and offer sound investment potential,” says Rubidge.

He says in addition to important aspects such as location, condition and potential, the possible trimmings and extras to look for in a cheaper investment include yellowwood or Oregon pine floors and stained glass doors, and features included in some homes from the Victorian era such as pressed steel ceilings and the popular verandas with steps integral to the street social scene. Other desirable features are fruit trees, boreholes, leiwater, reservoirs, stone boundary walls and windmills.

Rubidge says some of the areas buyers should consider include the relatively small North Eastern Cape towns of Hofmeyr, Molteno and Steynsberg, where there are active golf and lawn bowling clubs as well as festivals such as the October adventure festivals held in many towns and which include water sports, biking, hiking, 4X4 routes. In these towns prices start from R100 000 and range up to R350 000 for large three bedroom Karoo houses on large erven or even on two or three erven.

“Pam Golding Properties (PGP) is experiencing great interest in Steynsberg, where agents have sold five classic properties over the past three months. Located within driving distance of larger towns such as Gariep and Graaff-Reinet, Grahamstown offers some sound options priced from R90 000 for a small cottage to R250 000 for a large, un-restored house. An excellent buy on the market is a three bedroom artist’s retreat with painted murals and plenty of character priced at R150 000.

“Just north of the Garden Route in the apple producing areas of the Langkloof is the Baviaanskloof wilderness area and its neighbouring towns of Willowmore and Steytlerville. As these are the closest genuine Karoo towns to the Garden Route and Port Elizabeth, it is expected that property buyers will soon start showing interest in these towns.”

This trend is already becoming evident in Willowmore, where PGP reports growing interest in good value-for-money properties as well as luxury homes right on the doorstep of the Baviaanskloof World Heritage site. Such properties include a spacious and rustic five bedroom, three bathroom home with a tennis court and exceptional garden which won the ‘Wen Tuin” Summer Rainfall Karoo garden competition in 2008 and which is priced at R1.8 million.

In Steytlerville about one hour from Port Elizabeth, Rubidge says good quality homes can still be bought for less than R350 000 and one such property on the market is a spacious, three bedroom home with two bathrooms and large stoep and garden for R320 000.

Call Wayne Rubidge on 082 432 9364. email karoo@pamgolding.co.za or visit www.karooproperty.co.za.

Prices of rental property in the Cape Town City Bowl are softening due to lack of demand.

“Tenants are shopping around and are very aware of available stock, so they compare and look for the best deal. Also, they will reduce their requirements or just move out of an area if rentals get too high for them,” says Elzunia Singer, rental consultant at Seeff’’s City Bowl office in Tamboerskloof.

She is also expecting more furnished properties to come onto the market as they are no longer being let for the World Cup. This will lead to a surplus of rental properties, so it is more important than ever that rentals are set at the appropriate level.

“Owners tend to lag behind the market in their pricing. They would do well to remember that the year-end peak demand has long passed and winter is here – and prices naturally decline and stabilise at this time.

“Owners should take their rental agent’s advice and not decide on a rental with no logical basis. Otherwise the only option would be for the property to sit empty until demand picks up, which is untenable. It is advisable to keep a good tenant at a slightly reduced rental rather than incur all the running costs associated with an empty property.”

Singer says a current snapshot of City Bowl rental properties indicates that there is a large number of furnished properties available, but the real demand is for unfurnished homes.

“It is imperative that investment property owners get to know their market and cater to the demand in their particular area. Properties that cater for larger market segments mean increased chance of a rental, shorter or no void periods, and continuous rental cash flow throughout the year.”

The rapidly growing awareness of ‘green’ issues among Cape Town’s middle class population has been of huge benefit to one Cape Town company, Jeremy Westgarth-Taylor’s Water Rhapsody, which specialises in the recycling of ‘grey water’.

Water Rhapsody has been able to establish 16 new franchises across the country, six of which are in the greater Cape Town area.

Alje van Hoorn, who has one of the largest Water Rhapsody franchises for the northern suburbs and the Cape Town CBD, says orders at Water Rhapsody pick up as soon as water shortages become possible or likely each summer.

“The only factor limiting our growth is a lack of understanding of the service we provide. Once the concept is understood most people immediately accept it, because with water costing what it does today and with gardens often endangered in summer, a grey water system is the obvious and logical solution.”

The Water Rhapsody system consists of a tank to capture the water (usually set well into the ground) and a pump to distribute it as required. The system recycles the household’s water from baths, showers, basins and washing machines. This water can be beneficial to all garden plants including fynbos provided the household uses phosphate free washing powders. Water with strong bleaches should also not be recycled.

The installation and commissioning of the system usually cost between R8 500 and R12 000, says van Hoorn, and will give an immediate saving of 20 to 40% on water costs, with the result that in the average Cape Town house it pays for itself in under 30 months.

“Capetonians have in the past had exceptionally cheap water but that situation is changing. We now know that no further damming of Cape rivers will be possible and water consumption is increasing exponentially – as a result water costs are set to rise fast. It makes sense to install a grey water recycling system and ensure you are unaffected by water restrictions.”

Call Alje van Hoorn 021 715 8581 or email alje@capewatersolutions.co.za.

The French ambience of Montmarte, including fine views, is what buyers will find at the luxury Vue De La Ville Lifestyle Estate in the Baronetcy suburb of Plattekloof, says Marie van Rooyen of Nationlink Plattekloof, the agency marketing the development.

Vue De La Ville will consist of full title houses, sectional title apartments and special assisted-living units, so residents can enjoy an independent lifestyle but will also be able to use the care facilities when required.

Van Rooyen says there is no age limitation on buyers or residents, and the amenities available to owners of all ages include a wellness centre with a steam room, a heated indoor swimming pool, a massage room and a gym; a furnished and air-conditioned main centre with a lounge, a bar, a snooker room, conference facilities, a restaurant and a balcony with spectacular views of Table Mountain.

Also available is a 15-bed health care facility with a medical wing to provide frail care with a guaranteed 24 hour service.

Vue De La Ville is on the slopes of the Tygerberg adjacent to the historic De Grendel Wine Estate. It offers easy access to all major routes to and from Cape Town, and is close to a regional shopping centre.

Van Rooyen says there will 28 full title houses, each with its own lift. City views and landscaped gardens will be standard, as will satellite dishes equipped for standard and HD TV reception, remote-controlled garage doors and monitor intercom front door locking systems.

In addition, Vue de la Ville will have 20 sectional title apartments and 10 assisted-living units. There will be a parking garage with a remote-controlled main gate and optional storage facilities for residents of the main building, who will share a satellite dish also equipped for standard and HD TV reception.

Prices range from R2,7 million to R3,7 million.

All units will have access to the PABX communication system enabling residents to contact the security gate, the restaurant and the medical wing, and internal calls will be free.

“An intrusion detection boundary wall with electrified fencing and camera surveillance will surround the estate, and will be complemented by access control through a manned and monitored entrance gate.”

Visit the showroom at the Plattekloof Spar Centre to view a display of the planned fixtures and fittings, phone 021 911 1043 or visit www.vuedelaville.co.za.

Certain sectors of the property market experienced a slowdown in growth and sales over the past two years, but Henry Greyling, chief executive of Seeff Fractional Ownership International says during that period his division did 116 re-sales of existing shares at an average year-on year growth of 22.4%.

“I don’t think many property industries in the world can boast this rate of return. Only four of these 116 resales were sold at less than 15% year-on-year growth – this during a recession – which provides huge credibility for the fractional industry and its sustainability as a superior property and leisure investment.”

Greyling says over 60% of Seeff’s resales in the V&A Waterfront, Zebula in Limpopo and Zimbali in KwaZulu-Natal achieved a year-on-year growth of over 64%.

“Our first sales in Zebula were at R265 000, and we now sell them easily for R460 000 – 480,000. Initial sales in the V&A Waterfront were at R441 000, and they are now selling for R796 000 just one year later. Also remember that virtually every one of these resales were distressed sellers due to the global meltdown, and needed us to resell their shares quickly.”

The prices quoted are for four weeks stay every year in perpetuity.

An interesting point is that though he recently still had a further 59 mandates from investors who wanted to sell their shares, during the last three months 52 of those have cancelled their mandates.

“They don’t want to resell anymore – which I view as a clear indication that the recession is nearing its end. Investors would now prefer to hold onto the shares.”

He says that total sales have been growing at around 18 – 22% since February this year.

“Coming off a low base from the recession, that is not great – but it is improving every day. Our biggest challenge remains education of the public, as virtually everyone I personally encounter is still amazed that this product with all its phenomenal advantages actually exists, and there is also a lack of understanding that an investor actually owns the bricks and mortar.

“The most popular places to buy fractional properties are Zimbali and Zebula (due to their relative proximity to Gauteng, as 75% of our buyers are Gautengers) and the V&A Waterfront. Sparrebosch and Pinnacle Point on the Garden Route are in second place. However, Horizon Bay apartments in Table View and Langebaan Golf Estate outsold the above estates during the recession, largely due to their lower prices at R159 000 and R99 000 (for two weeks every year) respectively.”

Greyling says end-user finance remains a challenge and will do so for a while. However, Seeff still offers 50% finance on 80% of its products. Rentals of investors’ unused weeks is growing rapidly, and assists them in mitigating their low shared levies.

The ongoing success of the R50 million 7 500m² China Town retail centre at Ottery next to the Hypermarket has been demonstrated by a charity donation to some 350 hungry and, in some cases, homeless families living in the precinct.

Shwu-ing Liou, one of China Town’s trustees, responded to an appeal by a local pastor, Pat Thomas, of the Ottery Baptist Church. On behalf of China Town he donated a substantial cash sum which was used to buy food parcels – and then he set about organising for China Town tenants also to donate clothing, shoes, blankets, food, sweets and other goods.

Assisted by Keith Blake and congregants of the Baptist Church, over 350 food and gift parcels were given out at a Saturday morning gathering in China Town – to the great joy of the appreciative recipients.

A small SAPS contingent was present to ensure a fair distribution and Captain Ezra October of the police community head office made use of the opportunity to encourage those present to ensure that, whatever their own problems, their children received a good education and were looked after and protected at all times.

Shwu-ing Liou told those present that the Chinese community feel welcome and at home in Cape Town and were grateful for this opportunity to express their gratitude.

Ninety-five per cent of the goods traded at China Town are imported from China and 95% of the tenants are also of Chinese origin, although some have lived at the Cape for many years. But the centre has also employed many people from the local community.

The goods on offer, said Kruger, tend to be considerably less expensive than those of other outlets in Cape Town. Items stocked include clothing, shoes, luggage, handbags, linen, crockery, blankets, toys, electrical and electronic goods, toys and decorations – and food.

“There is also a food court with three outlets, including a Chinese eatery and two Halaal outlets.”

Liou urged more Capetonians to visit China Town to discover for themselves “just how inexpensive the goods here are and how courteous and friendly our tenants always are.”

The China Town Trust is now in the final stages of arranging to open a similar centre to serve the Milnerton to Northern suburbs precinct of Cape Town. Details on this will be released shortly.

Call Steve Kruger on 082 572 6715 or email propman@iafrica.com.

Growthpoint Properties Limited recently announced that it had rolled R350 million of three-month senior unsecured commercial paper (CP) which expired on August 12.

The successful issue received bids from 14 potential investors totalling a massive R1,9 billion for the R350 million that was on offer. The issue was therefore more than 5.3 times over-subscribed.

The strong demand for Growthpoint paper saw the interest margin (above the three-month Jibar rate) decrease to 39 basis points (0.39%) from previous levels of 45 bps in May 2010, 52bps in February 2010 and 55 bps in November 2009.

The demand for this issue continues to reinforce the success of Growthpoint’s CP programme with its R500 million inaugural CP issue which was also significantly oversubscribed, with R1.5 billion submitted. This issue was the first for a South African listed property company.

Growthpoint financial director Stuart Snowball says the company’s continued access to capital markets through CP holds advantages for Growthpoint, including the lowered average cost of borrowings and diversification of borrowing sources.

Growthpoint is the largest South African listed property company with a market capitalisation of over R25 billion. Growthpoint has a quality portfolio of 431 properties in South Africa valued at R29,9 billion, and a further 24 properties in Australia through its investment in Growthpoint Properties Australia (GOZ), valued at R4,9 billion.

Len Pears of Quagga Property Brokers has sold 12 townhouses in Oaklands on the Knoll in Knysna, to Dream Vacation Club as holiday units for club members.

The developer is Patin Trading Pty Ltd, which is owned and run by Ken Meyer.

Oaklands on the Knoll is in a private estate in Gray Street on the mountain side in Knysna, and consists of 22 duplex sectional title townhouses. Of the remaining 10 some are still for sale, and others have been bought privately.

The 77 m2 homes are priced at R795 000 with no VAT applicable as they are sold from the developer.

Each two bedroom townhouse has 1.5 bathrooms, a large veranda and a braai. There is a modern open plan kitchen and living room, suspended stairs with stainless steel balustrades and a dining area with a solid timber counter top. Other features include modern Oval baths and sanitary ware. All the homes have prepaid electricity meters and the water supply is covered by the levy. Included are undercover parking bays for owners and visitors.

Although this is far below the robust 25% of property sales it represented in 2004 – partly due to factors such as the difficulty in obtaining finance and the general economic conditions – buy-to-let property investment continues to be an important component of well-diversified investment portfolios. In fact, the 2010 World Wealth Report recently released by Capgemini Global Wealth Management and Merrill Lynch showed that the world’s population of wealthy people hold as much as 48% of their wealth in residential property.

“Owning rental properties can certainly play an important role in securing financial independence, but prospective landlords should be aware that owning rental properties entails more responsibility than simply collecting the rent,” says Adrian Goslett, chief executive of RE/MAX of Southern Africa.

“Renting out a property is a business, and should be managed like one. Being a successful landlord requires a professional approach to managing the property, the tenant, the administration and the financial side of the business.”

As with any other business activity, rental properties are regulated by law and it is crucial that landlords understand the legislation applicable, which sets out the rights and obligations of landlords and tenants.

Two pieces of legislation are of particular importance to residential landlords: the Prevention of Illegal Eviction Act (PIE) and the Rental Housing Act 50 of 1999 (RHA).

The PIE Act protects tenants from unlawful eviction, but also details procedures for landlords in dealing with errant tenants and for evicting unlawful occupiers. The RHA regulates the rights and obligations of landlords and tenants, details how disputes between tenants and landlords must be legally dealt with and provides general requirements for lease agreements. It further makes provision for rental housing tribunals in each province, which offer a free dispute settlement service for tenants and landlords, as well as advice on residential leases and rental issues.

“Within this legal framework, a proper lease agreement is a crucial component of managing a tenant,” says Goslett. “However, before such an agreement is signed, the landlord must thoroughly screen and carefully select the tenant for the property. This screening includes background and credit checks as well as confirming employment and checking references.

“Once a tenant has been selected, both parties must agree on the terms and conditions of the lease agreement. It should detail the issues stipulated by the legislation, such as the deposit amount, the monthly rental amount, the due date for payment and how it will be paid as well as the duration of the lease and renewal terms, among others.

“The contract must be correctly signed by both parties and two witnesses. The landlord should ensure that the tenant has read and understood the lease agreement and give the tenant a copy. It is recommended that landlords keep in regular contact with tenants and inspect the properties regularly to ensure any potential problems are resolved immediately.”

“In addition to managing their tenants, landlords are also responsible for the upkeep of the property. This requires ongoing repairs and proactive maintenance following regular inspections of the property. Using only professional service providers who can provide warranties and guarantees for any maintenance and repairs will always be the most cost-effective option in the long run,” says Goslett.

The financial and administration side of the business must also be managed. The rental and other charges, such as levies and water and electricity charges must be collected, any discounts for early payment and penalties for late payments must be applied, accounts for property related expenses must be paid on time and records of all transactions must be kept for tax purposes. Landlords are also advised to accumulate a cash reserve for unforeseen repairs and maintenance as well as for a potential vacancy at the property.

Good systems and discipline will assist in managing the paperwork. However, if all these responsibilities seem somewhat overwhelming, it does not mean that owning a rental property is beyond your reach. “Using a rental management service may be the answer. For a monthly fee, the agency can take care of all property rental responsibilities, including non-payment of rental and evictions. A rental management company can also advise landlords on products such as rental income insurance and insurance that will cover the costs of evicting a tenant,” says Goslett.

“The real secret to being a successful landlord is to approach it with the professionalism and discipline required from any business owner, including outsourcing certain functions to the experts as and when their services are required.”