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CONSTRUCTION WORLD
MARCH
2015
Looking to other commercial property sectors
Petersen believes retail and industrial property
should hold up better. “We do not see either
one shooting the lights out, and retail turnovers
are likely to be under pressure with consumers
remaining under strain.”
He adds:“Despite the challenges ahead, we
still anticipate listed real estate to outperform
bonds, cash and equities. We further expect
to grow Dipula’s net income well in excess of
inflation and grow our portfolio organically
by executing our sizeable development and
acquisition pipeline of more than R1-billion.”
PROPERTY
He foresees a year that will bring heaps
of hard work for the sector, with only
select opportunities of good assets
available to the market.
“I fear that electricity issues are going to
frustrate and slow down business. Some prop-
erty developments may have to be shelved due
to a lack of electricity supply,” says Petersen.
“However, you’re likely to see innovative solu-
tions to get around this challenge.”
There will be relatively limited speculative
development activity in the market.
Looking at positive drivers that may counter
the slow economic growth and electricity
supply challenges, Petersen points to falling
oil prices as a bright spot that will provide
some cushion for rising inflation, but cautions
that the weak Rand will have somewhat of a
counter effect.“We believe that rates will remain
unchanged in the short term, which bodes well
for property.”
Offices are likely to remain the weakest link
for commercial property in 2015.“They already
face oversupply issues with a lack of big users.
Our tough economy also adds to the pressure
on the sector due to the elasticity of demand
and price sensitivity of its users – especially
smaller and medium users,” says Petersen.
He also warns most tenant-driven develop-
ments for big users, will result in increased
vacancies as they vacant existing space.
A HIGHLY COMPETITIVE YEAR
“Expect massive competition in the scramble for good property
and tenants,” says Izak Petersen, Dipula Income Fund CEO, of SA’s
commercial property sector in 2015.
Izak Petersen, Dipula Income Fund CEO.
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Dipula Income Fund is a JSE-listed REIT
with exceptional B-BBEE credentials.
It is managed by its 100% black owned
management company. Dipula originated
from twomajority black-owned property
funds, Mergence Africa Property Fund
and Dipula Property Fund. Management
own a large stake in Dipula and are stra-
tegically aligned long-term investors in
the fund.
Dipula’s diversified property portfolio
comprises more than 180 retail, industrial
and office properties countrywide. By
gross lettable area (GLA), Dipula’s port-
folio is mostly concentrated in South Afri-
ca’s economic hub of Gauteng. It is also
weighted towards retail property, which
comprises more than 50% of its portfolio.
The new Bridal Veil Road Overpass
Bridge is being developed by Atterbury
Property Development and engineers,
AECOM, for and on behalf of Attacq, exclusive
holder of the development rights to the presti-
gious Waterfall City.
The major investment for this new overpass is
part of the infrastructure development within
Waterfall City, the largest ‘greenfield’ urban
concept development in South Africa. Strate-
gically located between Midrand and Sandton,
Waterfall is positioned to become one of the
strongest and most successful nodes in the
country.
Situated south of the Allandale interchange
and north of the Buccleuch interchange, the
overpass will create a direct link between
Midrand and Waterfall City, opening up an
important route that will make travelling easier
and faster for the growing number of people
who live and work in this leading-edge Gauteng
development node.
Atterbury Property Development director,
Coenie Bezuidenhout, who is responsible for
coordinating this immense commercial real
estate project, comments on the new overpass
bridge: “Waterfall is designed to be a modern
city that really works for its residents and busi-
nesses and this includes providing excellent
quality road infrastructure. With the construc-
tion of the Bridal Veil Overpass Bridge, these
benefits will extend to everyone who uses the
roads and highways in and around Midrand
and Sandton.”
Bezuidenhout adds: “Besides providing
another easy access point to Waterfall City, the
new overpass bridge will help improve traffic
flows in the Midrand area, taking strain off
surrounding interchanges and making it easier
to get around on Gauteng’s roads.”
The superstructure of the bridge will total a
length of 115,8 metres and carry four lanes of
traffic – two in each direction – a pedestrian
walkway, a cycle track and a raised centre
median, resulting in a width of 22,7 metres. It
will also feature street lighting below and above
the bridge, illuminating the N1 highway and
Bridal Veil Road.
Construction began in November 2014, and
the project will take 16 months to complete in
March 2016. The development is being under-
taken in strategic phases tominimise disruption
to traffic on the N1 while the overpass bridge is
being constructed.
“Waterfall City’s easy access fromGauteng’s
transport network is an inherent advantage
of Waterfall City and the new Bridal Veil Road
Overpass Bridge is designed to enhance this,”
says Bezuidenhout.
The Waterfall City development spans land
on both sides of the N1 highway, from the
Woodmead Interchange in the south through
the bustling Buccleuch Interchange to the
Allandale Interchange in the north, and spans
from Modderfontein in the east to beyond
Kyalami in the west. It enjoys superb access
from Pretoria, Sandton and Johannesburg, and
is closing the gap between northern Sandton
and Midrand.
The new Bridal Veil Road Overpass bridge
is scheduled to be complete on time for the
launch of the iconic new 127 000 m
2
super-re-
gional shopping centre, Mall of Africa, at Water-
fall City, which will open in 2016.
OVERPASS TO IMPROVE TRAFFIC FLOWS
Driving through Midrand will
soon be a whole lot easier
thanks to a new R160-million
highway overpass bridge being
constructed by Waterfall City.
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