Construction World May 2016

CONSTRUCTION WORLD

MAY

2016

This was one of the strong

messages to emerge from the

recent Royal Institution of Char-

tered Surveyors’ (RICS) 2016 Africa

Summit in Sandton Central, Johannesburg.

Opportunities and challenges in the real

estate sector and broader built environ-

ment in sub-Saharan Africa was the key

theme of the summit, which brought

together leading speakers and professionals

in the built environment.

RICS chief executive Sean Tompkins said

the growth and development of the built envi-

ronment sector in Africa was crucial to the

sustainable growth of continent, especially

with Africa’s rapid unrbanisation.

“The built environment sector needs to

be taken more seriously and we need to get

the message across. Africa is one of the fastest

urbanising regions in the world and will have

to house a billion people, so getting its built

and urban environments right is critical.”

Tompkins added: “Africa is not alone.

Most governments around the world don’t

recognise the importance of the built

environment sector and the profession.

They understand medical, accounting and

law professions better, but need to get the

message about the role and importance of

built environment professionals. They need

to understand the importance of increasing

skills in the sector and having more built and

urban environment professionals.”

RICS – a global professional body that

promotes and enforces the highest qualifica-

tions and standards in the areas of land, real

estate, construction and infrastructure – has

a key role to play in promoting the broader

built environment sector and is increasing its

presence in Africa.

Tompkins said RICS was taking a collabo-

rative approach in working with other profes-

sional bodies, governments and institutions

in Africa to promote standards, skills and the

built environment sector on the whole.

“There is a role for professional bodies

such as RICS to set the competencies to

ensure that we’re creating the workforce

for the future. It is important to create an

environment where government, regulators

and professional bodies hold one another to

account,” he said.

During one of the interactive discussions

at the RICS Summit, the lack of sufficient data

in the real estate sector and broader build

environment in Sub Saharan Africa, outside

South Africa, was highlighted as one of the

main challenges for property developers

and investors.

Another issue that emerged was that

developers investing in Africa often found it

hard to access information regarding land

ownership. Land rights and tenure were

major challenges and there was no one-size-

fits-all solution.

With such challenges, RICS is an organi-

sation with the expertise to assist not only in

terms of promoting standards and transpar-

ency, but skills and capacity building in the

built environment.

Wafula Nabutola, RICS’s director for

sub-Saharan Africa, said RICS has had a

presence in Africa for over ten years, with its

first office in South Africa. It has since opened

regional offices in Kenya for East Africa and

Ghana for West Africa.

“Despite its challenges, Africa is still a

continent of opportunity. But, Africa needs

real capacity building across the built

environment. RICS can play a role in this as

a globally recognised organisation in the

built environment, with more than 120 000

Africa’s

BUILT ENVIRONMENT

needs unlocking

Wafula Nabutola, RICS’s director for sub-

Saharan Africa.

BELOW:

RICS chief executive,

Sean Tompkins.

In 2001 the land was awarded to the Tramway Road Trust by the

City of Cape Town as part of a restitution claim, on condition that

it be redeveloped to benefit the beneficiaries.

Now the land is being developed into Bantry Hills, a R750-million ultra-

luxury development which will be unlike any other property in Cape Town.

Comments Mike Flax, the former CEO of JSE-listed Spearhead who

is managing the development, “We have been planning this 14 000 m

development for some time, and are excited that it is finally underway. It

will certainly be one of the most iconic residential developments in the

Atlantic Seaboard.’’

Situated between Ilford Street and Tramway Road on the Bantry Bay/

Fresnaye border, Bantry Hills has already attracted extensive interest with

over half of the 60 uniquely designed apartments being sold to international

buyers, with an average value of R12-million. “The recent announcement

by finance minister Pravin Gordhan that transfer duty rates have sharply

increased for properties over R10-million, has created much demand for

such developments, as buyers need not pay the heavy transfer fees. We have

already sold over half of the apartments to buyers from New York, Mumbai,

London and Copenhagen. There has also been a lot of interest from South

African families who are relocating to the Western Cape.’’

Bantry Hills joins two other ultra-luxury development sites that are

currently being constructed in the Atlantic’s Seaboard. In Mouille Point,

Investec managing director Bernard Kantor has not yet launched his

10-storey building, but indications are that R60-millon will be asked for

apartments that span each floor, and the site of Bantry Bay’s Ambassador

Hotel will see the redevelopment of the Aurum Presidential Suites, with sea

facing units fetching prices of R120 000 per square metre.

members around the world. We are increasing

our presence in Africa and want to build

relationships and collaborative partnerships

with governments and national bodies to help

unleash the property and broader built envi-

ronment sector in Africa,” said Nabutola.