FROM THE CHAIRMAN'S DESK

Since SAPOA’s last issue, we have appointed a new Chairman, Vuyani Hako, who is also Managing Director of Metropolitan Property Services and has served in that role since 2007. Previously a Regional Property Portfolio Manager, his responsibility as MD extends beyond the realm of South Africa, to include Namibia, Lesotho, Botswana and Swaziland. He has an Hons. Degree in Business Management and Administration and an MBA from the University of Stellenbosch. He has had international exposure when he was involved in redevelopment projects at Florida’s Joint Centre for Environmental and Urban Problems and we’re glad he has come onboard to share his expertise.

His vision for SAPOA is to make it relevant for members and although getting additional members on board would be a plus, he is mainly concerned with adding value for existing members. Through ongoing SAPOA educational initiatives, workshops and network opportunities, he feels that SAPOA will be able to champion the needs of its members and give an effectual voice to the South African property players.

Looking forward, he has said that times are still relatively tough. The end of last year saw vacancies going up and consumer spending remaining cautious. It’s expected that this trend will continue till June but that after that we can expect a slight upturn. The good news is that with most of the 2010 construction near completion, contractors are hungry for business, so it’s a good time to run with projects and make the most of prices being low.

INTRODUCING OUR NEW DEPUTY CHAIRMAN

Imraan Ho Yee of Vivid Architects is our newly appointed Vice Chairman. He is a Partner at Vivid Architects, who have been members of SAPOA since November 2006. Echoing Vuyani’s sentiments, his main aim is to provide the best benefits for the SAPOA members, making it worthwhile to join up and stay onboard. As the largest property related body, SAPOA is in a good position to give our members value and use our collective knowledge and experience to the best possible advantage.

His view is that although South African consumers were caught in a freeze frame last year, the deer has now stepped away from the headlights and that there’s more interest and more enquiries, which is showing promise for the 3rd and 4th quarter. The ongoing challenge, of course, is getting commitment from tenants, and getting prelease done and dusted before you can proceed with projects. He also feels that smart developers who are able to make use of the post 2010 construction slump, will benefit greatly while prices are low – which is a great opportunity if they can get their timing right. They would have a cost advantage now, aiming to be ready at the upswing in about 2 years time, when the market is anticipated to turn.

Dave Russell- SAPOA Western Cape and OVS Committee

The first SAPOA Office Vacancy Survey for 2010 has confirmed that the Cape Town office market has not escaped the sluggish economic conditions we are experiencing in South Africa today

Seven of the five office nodes surveyed have experienced increases in vacancies in the past 12 months and while this is not good news for landlords, it has created some attractive opportunities for office tenants who are in a position to take advantage of present market conditions.

The most significant change has occurred in the Cape Town CBD figures where a combined vacancy, including Premier, A and B grade buildings, of 5,4% a year ago has now reached 9,1%. This increase is largely attributable to a substantial refurbished office block coming on to the market, along with the relocation of certain large tenants to locations such as The Boulevard and Century City

In the northern suburbs, Bellville has seen a small increase to 6,2% compared to 5,3% last year, however, Century City has been one of the nodes experiencing a reduction in vacancies where they have moved from 14,6% to 11.9% at present

In the southern suburbs, Claremont has now reached 16,6% compared to 14,5% this time last year and the Rondebosch/Newlands node is now at 4,8% compared to 2.7% last year. Pinelands has increased from 2,3% to 5,2% and the V&A Waterfront presently has a total office vacancy of 2,9%.

GREEN IS THE NEW BLACK

Not caring about the environment is so last decade. We wanted to get up to speed on what’s going on at the Green Building Council and asked Lisa Parkes at the GBC to share 10 tips for creating green buildings.

Top 10 Trends in Green Building for 2010 shared by Elaine Aye of Green Building Services, Oregon US at the Green Building Council of South Africa member meetings last week.

10. Adopting an Existing Building Sustainability Focus

9. Visibility of Building Performance Data: providing feedback loops

8. Volume Certification: Engaging client portfolios on a large scale

7. Training and Education: the tide is rising; build your knowledge and skills

6. Green Leasing: putting it in writing

5. Building Codes Close in on Certifications: time to raise the bar

4. International Expansion of Green Building: LEED and other rating systems cover the globe

3. Manufacturers and the Supply Chain Retool for the Green Economy

2. Green Building Goes to Scale: Eco-districts take centre stage, Neighbourhood Development standard is launched:

1. Living Building Challenge, version 2.0: the next step towards a restorative future.

SAPOA Western Cape's first Networking function 2010 held at Crystal Towers

SAPOA hosted a networking function for its members and the event was kindly sponsored by Nedbank Corporate Property Finance. The event was held in the main foyer of the magnificent five-star Crystal Towers Hotel & Spa where, in their own words , “innovative, modern design meets timeless sophistication and luxury”. Elegant and opulent, it’s certainly the sparking centre-piece in Century City’s crown. Over 260 people attended the eventand the feedback was positive. They loved the venue, took advantage of the company and obviously enjoyed the drinks and canapés on offer. We’ve included some pictures for you to have a look at…..

Mike Van Schoor, Geoff Stroebel, Carl Chapman

Marc Prins, Dhivian Rajagopaul, Kurt Graybe

Ton Veen, Joanne Solomon

Kerry Simpson, Dirk Bronner

Nazeem Khan, Maggie Rowley

Dudley Annenberg, Kim Faclier, Andrew Cohen

John Chapman, Johnnie Rabie, Alistair Kendall

Kevin Roman, Patrick Parring

Andrew Kendall, Steve Rennie, Steurt Doig, Debbie Robinson, John McMahon

Dave Russell, Chris Mackrill

Womens Property Network

Alison Wiehahn, Barry Conlin, Susan Smalberger

Paul Smith, Charmagne Koen, Rogers Bobo

OUT OF TOWNERS

On Friday 5 March, SAPOA board members, members of the Western Cape Regional Committee and a few representatives from Western Cape member companies, welcomed 29 international property delegates who were visiting from France, Nigeria, The Netherlands, USA and Japan as part of the FIABCI Trade delegation. FIABCI is a non-political entity whose objective is to help members add an international dimesion to their businesses. FIABCI helps members aquire knowledge, develop networks and optimize business opportunities all over the world. They are made up of real estate professionals in 60 countries and represent all property disciplines such as brokerage, management, valuation and appraisal and development. They started off the evening with Friday drinks at The Cullinan….. and progressed to dinner at the V & A Waterfront And seemed to enjoy what must have been one of Cape Town’s best, wind-free summer evenings of the season.