SHEPPERSON'S FIRST LAW

Sirius Real Estate flat on listing - Property | Moneyweb Germany-focused property fund debuts on AltX. JOHANNESBURG – Sirius Real Estate Ltd, a wholly Germany-focused property fund, traded in a tightly bound range on Friday morning, after listing on the JSE’s Alternative Exchange (AltX). By 12:28, just more than 1 million shares had traded, out of a total issued share capital of 632,257,832. Having listed at R6 a share, the day’s low was a moderate R5.95, before edging back up to R6. At that price, Sirius has a market capitalisation of approximately R3.8 billion. With a portfolio the company says is independently valued at R6.4 billion, Sirius is solely a specialist in German property, specifically 30 mixed-use business parks. The company is incorporated in the Channel Island of Guernsey.

Property Mogul - Issue 2 - now out The first piece of investment advice I received was when I turned 18. My father told me that I must invest a third of my savings in property, another third in equity and the remaining third in cash. This investment philosophy was pretty ubiquitous in the 1980s and explains why so many South Africans still firmly believe that property investments, especially residential investments, should form the foundation of investment strategies. However, the market has changed significantly over the past 20 years. Apart from many regulatory changes, which had a negative impact on investment-focus residential properties, the listed property sector has consistently been one of the best performing sectors of the JSE.

Affordable housing construction lags The lack of suitable affordable housing stock continues to bedevil the banking sector's ability to increase primary market end user finance, according to FNB chief executive Jacques Cilliers. “Unless we overcome supply side challenges for new builds, lenders, despite their willingness and ability to provide end user housing finance to new homeowners, will continue to be hamstrung by insufficient housing supply,” Cilliers told a banking summit on Friday. The theme of the summit was “A Partnership for Housing Delivery”.

The folly of holding on for too long The price only rises so far.   A wise investor once said: we all make mistakes when it comes to investing. Being wrong is not the problem, but staying wrong is. I have been living on the Dainfern Golf Estate for more than 20 years. Over the years I have bought and sold many stands and properties on the estate and it would be fair to say that I know it well. As Dainfern developed over time, good stands became increasingly scarce. One in particular caught my attention. It was one of the last stands with a river view and was owned by a retired estate agent who always claimed that he was going to hit the jackpot with the site.

A step closer to Sharemax successor`s shareholder register NGHC dismisses bulk of Nova, Frontier and Centro’s interlocutory application. A swift judgment in the North Gauteng High Court (NGHC) has paved the way for Moneyweb’s application to inspect the shareholder registers of several companies related to the restructured Sharemax investment scheme. Judge Neil Tuchten dismissed the most contentious request from the Nova Property Group, Frontier Asset Management and Investments and Centro Property Group to force Moneyweb journalist Julius Cobbett to hand over all his correspondence with third parties during his extended Sharemax investigations.

Nova Property CEO on Absa, Grindrod funding issues Dominique Haese says "funding is in no way related to the Sharemax or SARS issues." ANDRIES VAN ZYL:  You are listening to RSG Geldsake presented by Moneyweb. The Sharemax property syndication, which is facing a liquidation application by the South African Revenue Service, is once again in the news because, according to a communiqué, the Nova Property Group, which has taken over the interests of the Sharemax investors, has been unable to access critical funding from Absa and Grindrod banks. Tonight we are talking to the Nova Properties incoming chief executive, Dominique Haese. Good evening, Dominique. DOMINIQUE HAESE:  Good evening, Andries. We appreciate the opportunity.

LETTER FROM LONDON: A snub and a murder raise unfortunate headlines | Columnists | BDlive SA  made the headlines in the UK for all the wrong reasons again on Monday morning. The top news items, rightly so, were on the killing of Bafana Bafana and Orlando Pirates captain Senzo Meyiwa. His death is a loss too great to quantify for his family, loved ones, fans and the nation. But it is the manner of his death that reinforces the view that SA is a violent, gun-crazy nation, where life is cheap. From the Marikana massacre to the killing of Reeva Steenkamp by Oscar Pistorius, much of the news coverage here is about violence in SA. It’s tough to get a positive message out amid all of that. And there are many positives about our country — we’re not exclusively about crime and violence. This week, SA’s image was to be burnished by a series of planned events. Instead, diplomatic relations between SA and the UK have become rather awkward.

Competition Commission to revisit exclusivity in lease agreements THE Competition Commission is due to revisit the contentious issue of exclusivity in lease agreements between the owners of large shopping centres and anchor tenants after receiving a fresh complaint about the effect of such agreements on competition in the retail market. This comes after a similar investigation by the commission in 2009 against the major supermarket chains and wholesale retailers. However, at the beginning of this year the commission announced that it did not find sufficient evidence to refer the matter to the Competition Tribunal for further prosecution.

Judges rule for property owners against banks After three years, the Moores finally own their house. Again! Six years ago, the Vereeniging couple fell prey to a reverse mortgage scam known as the Brusson scheme, named after the unregistered credit provider who managed to dupe about 900 people into handing over ownership of their properties in exchange for a loan. The Moores received notice that the sheriff of the court would attach their property in August 2011, but less than two weeks ago, they knew that their home was safe.

A thought provoking article by Max du Preez.  There are so many questions without suitable answers or the motivation to implement the changes that are required.  When dealing with massive & rapid urbanisation, I don't believe that we need to "reinvent the wheel".  We need to look at countries that have dealt with similar massive and rapid urbanisation ... I'm talking about China. See my Blog post at: http://garethsfirstlaw.blogspot.com/2014/07/south-african-city-sprawl-continues.html Gareth Shepperson Commercial and Property Attorney SA`s encroaching crisis Is the real land ownership crisis in urban areas? Conventional wisdom has it that urbanisation is a positive phenomenon: it is supposed to be easier and cheaper to deliver services, education and jobs to concentrated populations. But certain realities have meant that over the last two decades urbanisation in South Africa has brought with it more bad than good and has contributed to the c

Cape Town's R1 billion rates write-off The City of Cape Town has passed up on income of more than R1 billion for the 2013/14 financial year by granting exemptions, reductions and rebates on municipal rates. Mayoral committee member for finance Ian Neilson said this was income that could have been generated for the city. 'The purpose of these various forms of rebate are to ensure that rates are affordable to our residents, and that owning a home does not become prohibitive to those on low or fixed incomes.

FirstRand woos Swiss investors with property fund As it plans to raise as much as $500 million from Swiss private banks. FirstRand, Africa’s largest lender by market value, plans to raise as much as $500 million from Swiss private banks and other investors for a property fund focused on the continent. Ashburton Investments, the asset-management arm of Johannesburg-based FirstRand, will start raising money when its existing $250 million property fund is 75% invested early next year, said Chief Executive Officer Boshoff Grobler. Ashburton put up a fifth of the money for the first fund.

Tough times for commercial property Even shopping malls take some pain. The commercial property sector has been under pressure during 2014 and persistent macro economic difficulties suggest its fortunes may not improve anytime soon. Erwin Rode, p roperty valuer and economist at Rode & Associates, says rental trends indicate that the industrial subsector may have been the best performer over the last few months followed by the retail sector (shopping malls). Office space has lagged both other subsectors. Neil Gopal, chief executive officer of the South African Property Owners Association (Sapoa), says the industrial sector has continued to show good growth, but a prolonged slowdown in the manufacturing sector is expected to result in a drop-off in the demand for space in the sector.

What you need to know about land loans Although land and stand purchases generally only account for a small percentage of property transactions, they are increasing, probably in response to the growing shortage of built properties for sale in many popular areas and the concomitant rise in property prices. 'Many people view buying a stand as a good way to get a foothold in a sought-after area or estate, even if they can't afford to build a home on it just yet,' says Shaun Rademeyer of BetterBond, 'while others just see such purchases as good medium to long-term investments.'

Wow - what a fascinating article for anybody interested in the South African property industry.  I would love to hear more from the "old hands", who have been in the industry for such a long time. Gareth Shepperson Commercial and Property Attorney Commercial property over the ages Constant change. In the 1930’s, 40’s and 50’s the grandest buildings in South Africa were usually the vast cinema and theatre complexes that were found in the heart of every major city and town in the country. With names like the Alhambra, Colosseum, Savoy, Empire, Plaza and Embassy these gracious theatres, which accommodated 900 to 1700 people at a time, were the centre of a city’s social life. The Schlesinger Organisation, which was the largest property company in the country at the time, owned many of these theaters, though smaller proprietors also existed.

Unlocking the value in 'abandoned' sectional title units What happens when the levy and bond arrears on a sectional title unit together total more than the property is worth? 'There is no provision in the Sectional Titles Act for the body corporate to write off levy arrears and facilitate the sale of the unit in such cases,' says Andrew Schaefer, MD of leading national property management company Trafalgar, 'but they are occurring more and more often, especially in inner city blocks of flats where there has been no strong body corporate or group of trustees to prevent levy arrears getting out of hand, and a solution needs to be found.'

Property sales upswing 'best since recession' South Africa's property market is showing signs of steady growth, with the Western Cape scene looking particularly promising. The Investment Property Databank South Africa Biannual Indicator, released recently, showed that the South African property sector delivered an improved 7.4 percent total return for the first six months on this year. This is 90 basis points more than the December 2013 biannual total return of 6.5 percent. Commenting on the recent performance of the Western Cape's retail property sector, the chairman of Seeff Properties, Samuel Seeff, said there was a significantly better mood in the property market this year.

Attacq, still on the prowl for development opportunities Still bullish in the local and international market. A strong development pipeline and diversification strategy in Africa and international markets buoyed Attacq to report an increase in its net asset value per share of 24% to R14.77 for the year ended June 2013. Attacq, with a market capitalisation of over R14 billion, secured full ownership of its local retail assets during the financial period under review. This includes super regional centres of MooiRivier Mall, the Eikestad Mall Precinct, Brooklyn Mall and Garden Route Mall.

Oh Wow  ......... I absolutely  LOVE a good discussion on Servitudes! Gareth Shepperson Commercial and Property Attorney Legality of CTICC construction scrutinised Although construction on the R832 million expansion of the Cape Town International Convention Centre (CTICC) is well under way, defective advertising of the proposed expropriation of public servitudes has put the legality of its building processes under scrutiny.  Objectors are calling for a halt to construction work on the CTICC until all legal obstacles are removed and a public participation process is finalised. It is understood that objectors are concerned that building activity has continued, despite the existing planning restrictions, and there has been a call for all building work to stop to remove legal obstacles and finalise public participation processes. The ACDP has asked why the city's plans to take away the public access use of the land in Roggebaai to allow for the expansion o

Court grants Pick n Pay exclusive property lease Massstores has been interdicted by the high court from interfering with the contractual relationship between Pick n Pay and listed property fund Hyprop by operating a general food supermarket at the CapeGate Shopping Centre in Brackenfell in Cape Town. In a judgment handed down in the Gauteng Provincial Division of the High Court sitting in Pretoria on Friday, Judge Johan Louw said Pick n Pay had succeeded in proving that it was entitled to a final interdict against Masstores, a division of listed retailer Massmart. Judge Louw agreed with a submission by David Unterhalter, counsel for Pick n Pay, that a clause in Pick n Pay's lease operated to prevent Masstores from combining its existing Game general merchandise business with the business of a general food supermarket that sold both perishable and nonperishable foods.

IT IS ALWAYS A SOURCE OF THE UTMOST ASTONISHMENT that when people enter into the single biggest transaction of their lives (the purchase of their home) that they fail to seek out independent specialist legal advice! It is the custom in SA that the Seller appoints the transferring attorney and the Buyer pays the transfer costs. Although the transferring attorney (conveyancer) represents all parties in giving effect to the Deed of Sale, it is not his/her duty to advise the Buyer prior to signing the Deed of Sale.  It is therefore incumbent upon the Buyer to seek independent specialist legal advice PRIOR TO signing.  In my experience, that virtually never happens. Gareth Shepperson Commercial and Property Attorney 'Check property documents carefully before signing' Many property buyers want to act quickly when purchasing a home and might sign purchase documentation without having read it carefully. They must, however, think things through carefully, take time to read

Mellville shipping container shopping centre gets go-ahead The new container shopping centre in Melville is set to become a reality after the city approved the site development plan.  What was Faan Smit Park is to become 27boxes, a design and retail centre in the middle of Melville. The development, in the Faan Smit Park west of 7th Street, will become South Africa's first shopping centre made of shipping containers. The park will be known as 27boxes. Its design is planned to reflect the vibrant, trendy and somewhat bohemian character that made Melville famous, transforming it into a shopping centre and parkland. The development will provide 200 parking bays.

Residential market on the mend Estate agencies report robust show days and short duration of properties on sale. Shorter duration of properties being on sale, robust show-day attendance and stock shortages fuelling a surge in residential property prices: could this spell a recovery for the residential market? The market is in a significantly better mood since the wrath of the global financial crisis in 2007 – where demand slowed and house price growth depressed. But the turbulent tide seems to have turned for the better and the market seems to be picking up. “In 2014 the market is significantly better. We call this a balanced market, there are a good number of buyers and sellers,” says Seeff chairman Samuel Seeff.

At expiry, a property lease changes When a tenant continues to occupy the dwelling after the fixed period lease ends, the occupation becomes a monthly periodic lease. Section 5 of the Rental Housing Act 50 of 1999 relates to the provisions of leases and subsection 5 deals with an expired lease. According to this paragraph, if the tenant remains in the dwelling, with the express or tacit consent of the landlord, a periodic lease is created. In the absence of a further written lease, parties are bound by the same terms and conditions of the expired lease, except that at least one month's written notice must be given of the intention to terminate the lease.

Pickvest directors acted dishonestly – FSB Appeal dismissal raises serious questions. Directors of property syndication promoter Pickvest have launched an application in the Pretoria High Court to have an incriminating determination by the Financial Services Board (FSB) reviewed and set aside. The decision, which was made in February by the FSB’s Appeal Board, found that Pickvest’s directors acted dishonestly and without the care, skill and diligence expected of financial services providers (FSP) under the Financial Advisory and Intermediary Services (FAIS) Act. This formed the basis of the Appeal Board’s dismissal of Pickvest’s appeal against an April 2013 decision by the board’s Registrar of Financial Services Providers to have its FSP licence withdrawn.

Municipal approvals delay property development Some projects just no longer viable: some approvals take up to three years. Huge contributions to bulk services and delays in municipal approvals seriously hamper commercial property development in South Africa, says Harry Gey van Pittius, chairperson of the South African Affordable Residential Developers Association (Saarda). The association hopes to discuss the issue in the near future with Lindiwe Sisulu, Minister of Housing, but her mandate does not include local government, which makes it difficult for her to intervene, Gey van Pittius said. Municipalities don’t have the necessary skills, especially engineers and building inspectors and decision-making has been centralised at political level, he says.

Sharemax complaints surge after Bam determination Sars applies for liquidation of Sharemax and termination of the business rescue process. The South African Revenue Service (Sars) has applied for the liquidation of Sharemax Investments and for the business rescue proceedings of the company to be terminated. This follows a lengthy tug of war since 2012 between Sars and the directors of Sharemax and the Nova Group of Companies for the payment of R15.7 million of outstanding taxes. Sars filed the application in June 2014, as it does not foresee the company being able to pay the debt. Sars names, amongst others, business practitioner Dawie van der Merwe, former Sharemax directors Willie Botha, Andr é Brand, Dominique Haese, as well as Nova Property Group chairman Connie Myburgh as respondents.   Affidavit In a strongly worded affidavit Elle-Sarah Rossato contends on behalf of Sars that that the sole reason for placing Sharemax Investments into business rescue was to abu

Durban beachfront's largest property development takes shape A R1.8 billion expansion of Durban's landmark Suncoast Casino has been given the nod, clearing the way for a doubling of the existing complex. An artist's impression of the beachfront facades. The project by Tsogo Sun will be the biggest single investment in the history of the beachfront and will take three years to complete. All the necessary regulatory approvals are in place, now allowing detailed planning. This follows the company's R220 million upgrade of the relaunched Southern Sun Elangeni and Maharani Hotels into one complex last year, with another R100m face-lift under way at the hospitality group's 33-year-old Marine Parade Garden Court. The Suncoast expansion plan had to get the nod for an amendment to the casino licence conditions from the KZN Gaming and Betting Board - and the provincial government - as well as an amendment to the Integrated Development Plan for the precinct fro

Optimism rises with house building activity A sharp rise in residential building activity has resulted in improved confidence in the industry in the third quarter. The FNB/Bureau for Economic Research (BER) building confidence index released yesterday revealed that confidence in the industry had improved to 45 index points on a 100-point scale in the third quarter. The index slumped 11 points to 41 in the second quarter after breaching the key 50-point mark in the first quarter. John Loos, a property economist at FNB, said yesterday that although the index remained below the key 50 mark, it did suggest that conditions in the building sector had improved.

Cape Town's waterfront celebrates 25 years Southern Africa's biggest tourist attraction - the V&A Waterfront - was three decades ago a 'far sighted' idea but as it celebrates its 25th anniversary, it has become a massive source of income and pleasure. The V&A Waterfront viewed from the Cape Town Observation Wheel. 'The V&A Waterfront is a special place, where a centuries-old working harbour remains at the heart of a modern, cosmopolitan urban precinct. Built on layers of history and generations of Capetonians who have jealously treasured their links with the city's maritime heritage, the Waterfront has assumed a special place and significance in the hearts of our community,' V&A chief executive David Green said in the foreword a book entitled V&A Waterfront 25th Anniversary which is to be launched on Wednesday.

'What rental increase is fair?' Many landlords want to know by what amounts and when they could increase the rentals on their properties. These property owners would possibly prefer to automatically increase this each year (many use a standard rate of 10%) but the yearly increment does depend on various factors, and landlords need to understand what these are because not all increases can be passed on to the tenant, says Michael Bauer, managing director of IHPC estate agency.

Revamped Pretoria Church Square revealed Artists' impressions of the new-look Pretoria Church Square were revealed during a community liaison forum meeting yesterday. Major roadworks and developments are under way on and around Church Square. In future the square will boast more trees and pedestrian areas. There will also be new street furniture and the south wall's fountains will be restored to a working condition. The meeting was to update the public on the progress of the city's first bus rapid transit project.

Listed property still offers opportunities Despite higher bond yields and interest rates. Over the past decade, the local listed property sector has experienced stellar average compounded growth in excess of 20%, but does the sector still have attractive longer-term return prospects in the face of higher bond yields and interest rates? Ian Anderson, chief investment officer at Grindrod Asset Management, says the biggest driver of the excellent historic performance was the declining interest rate and yield environment. “This meant investors were prepared to accept lower yields (i.e. pay higher prices) for their listed property investments,” Anderson says. A secondary driver was the moderate increase in distribution growth the sector was able to produce, despite the weaker economic backdrop. However, the sector’s performance during 2013 and in the early part of this year has been more subdued. The table below highlights the total return of the listed property sector (Sapy

South Africa`s strong case for green retrofitting Despite South Africa being the fastest growing green building market in the world, most buildings in the office sector do not comply with environmental sustainability standards. But there is a strong case for green retrofitting.  While South Africa is only playing catch-up to its developed and developing counters, United States-based McGraw-Hill Construction in its World Green Building Trends survey notes that 58% of South African firms surveyed reported future green commercial retrofits by 2015. Furthermore the survey, which tracks 62 countries pegs the country's take up of green building to grow three-fold, from a measured 16% in 2012 to 52% by 2015. These figures put South Africa ahead of the pack for its fast adoption of green building - trumping Australia, United Arab Emirates, Singapore and Brazil - despite its foray into green building seven years ago. 

Pickvest : too late to lay a complaint with FAIS Ombud? It may be too late for investors who bought property syndications from Pickvest (formerly PIC Syndications) to lay complaints with the FAIS Ombud. PIC Syndications, now Pickvest, promoted property syndications worth approximately R5.3 billion. All outstanding syndications, worth R4.6 billion, are in business rescue and investors are once again complaining of late interest payments. In April 2013, Pickvest’s licence to render financial services was withdrawn by the Registrar of Financial Services Providers. Pickvest, which boasts around 18 000 investors (many of whom are pensioners) appealed the decision and this appeal was dismissed by the Registrar in February 2014.

Aussie more attractive for Growthpoint than SA The turbulent domestic market has prompted South African companies to look beyond the market for value in their investments. The property sector has also joined the search for more offshore investments which provide greater diversification, exposure to a larger market and attractive valuations. This trend is echoed more by South Africa’s largest listed JSE-listed property company, Growthpoint Properties which is finding the Australian market more appetising. Growthpoint, best known for its portfolio of quality assets which include Cape Town’s V&A Waterfront, is seeing limited assets in the local market.

'Legislation to limit foreign ownership of land is a blunt instrument' There's no doubt that the timing of the announcement about the government's plans to limit foreign property ownership is bad, and has done nothing to improve investor sentiment or business confidence, says a property executive. 'What is worse, though, is that Rural Development and Land Reform Minister Gugile Nkwinti has never really explained the thinking behind the proposed new land legislation in public, even though it has been on the cards since at least 2011, so we don't actually know whether the reaction it has engendered is too harsh - or perhaps not harsh enough,' says Berry Everitt, managing director of the Chas Everitt International property group.

This has not been too widely publicised but it is quite a significant drop (i.e. from 15.5% to 9%)! Gareth Shepperson Commercial and Property Attorney Prescribed rate of interest on overdue levies drops to 9 percent As of the beginning of August, the prescribed rate of interest charged on overdue levies in sectional title schemes has been reduced from 15,5% to 9% per annum. While Prescribed Management Rule 31 (6) allows trustees to charge interest on arrear levy amounts, the amount is not stipulated so the rate of interest is calculated according to the Prescribed Rate of Interest Act, whereby section 1 (2) dictates what interest rate is charged on overdue amounts (which has now been reset by the Minister of Justice to 9%), says Michael Bauer, general manager of the property management company IHFM.

SA's largest green building gets 6-star rating Cape Town has made green building history with the announcement by the Green Building Council of South Africa that No 1 Silo at the V&A Waterfront has been given the country's first 6-star Green Star SA 'As Built' rating. The No1 Silo office building at the V&A Waterfront. The announcement was made at FNB's Portside building during the Green Star Leadership Awards 2014, which form part of the Green Building Convention in Cape Town this week.

Ten new hotels planned for Cape Town Property investors could build 10 more medium-range hotels in Cape Town to meet the growing demand for holiday accommodation, research findings suggest. Figures for the first seven months of this year show that Cape Town's 87 hotels had an average occupancy rate of 66.6 percent - better than the national average of 60.5 percent. Joop Demes, chief executive of Pam Golding Hospitality, said the demand for hotel rooms in Cape Town was steadily increasing, yet few new rooms or hotels had been created since 2010. More than 1 500 hotel rooms could be added over the next three to five years.

EABB revises ban on HOA accreditation fees The Estate Agency Affairs Board (EAAB) has revised the directive it issued earlier this year that outlawed the practice by many homeowners' associations (HOA) in residential estates of requiring estate agents to pay accreditation fees in return for exclusive rights to market properties in the estate. The EAAB, the statutory consumer protection body of the property industry, said in a practice note on Friday that it was now permissible for HOAs to enter marketing arrangements with estate agents who chose to do so 'on condition that any fees payable constitute a reasonable cost of recovery for services rendered by the HOA'.

A thought provoking article.  From my personal observations, there is a presumption amongst the general public that Property is a "Safe Investment".  I assume that this is based upon the fact that you are acquiring a tangible asset by buying the actual physical piece of land with the bricks & mortar attached.  When compared to investing in Bonds, Derivatives, ETF's, going long/short, etc. buying a physical thing is more logical to most people. Buying a property is not a "safe investment" ... BUT ... buying a well-researched, correctly geared, competently-managed property is one of the best investments that you can make.  What Magnus has maybe missed is that you can walk into a bank and say "I would like some money to buy a property please" and your request will be considered but not so if you walk into a bank and say "I would like some money to buy equities please". Gareth Shepperson Commercial and Property Attorney Sell your investm

'What happens to sub-leases if a tenant is declared insolvent?' With commercial property management, there are cases that differ from residential letting in that there tend to be more sub-leases than in residential rentals, says Michael Bauer, general manager of the property management company IHFM. It often happens that one company will rent a whole building and then sub-let portions of the space they have signed for and it must be remembered in these cases that the entity ultimately responsible for the rent is the company that signed the original lease with the landlord, he said. But what happens in cases where the company that holds the lease is goes bankrupt?

Tenants cancel lease over lack of security The essential aspects of an advertisement of a rental property ought to be incorporated into the lease to avoid conflict.  Often prospective tenants are attracted to what is offered in an advertisement. Private listing by a landlord or advertising through a letting agent is a powerful way to find a tenant. This would entail honest, clear and concise wording in print and online, and may comprise a photograph or several photographs in an online advertisement that displays different aspects of the property.

The most important cases dealing with Business Rescue – Don Mahon | South African Commercial Law Blog All in all, I would say that there are about 35 judgments relating to business rescue which every practitioner or business with an interest in Business Rescue, should read. In the coming weeks, I will provide a summary and analysis of each one in turn.

When is a property deposit refundable? Under South African common law the general rule that applies when an agreement fails is that the parties must restore the status to the position they were in before the agreement was signed, unless both parties have agreed that there is an exception to this rule. When there is a sale of a property involved and the buyer puts down a deposit but is seen to have defaulted on the agreement, the seller can cancel and keep the deposit, says Lanice Steward, managing director of Knight Frank Residential SA.

Land plan: Time to take a much closer look There's no doubt that the timing of the latest announcement about government's plans to limit foreign property ownership in SA was bad, and has done nothing to improve investor sentiment or business confidence. 'What is worse, though, is that Rural Development and Land Reform Minister, Gugile Nkwinti, has never really explained the thinking behind the proposed new land legislation in public, even though it has been on the cards since at least 2011, so we don't actually know whether the reaction it has engendered is too harsh - or perhaps not harsh enough,' says Berry Everitt of Chas Everitt.

Property market solid despite slowing pace - FNB The solid performance of the residential property market was continuing despite the pace of growth in house prices appearing to have slowed in recent months, claimed FNB. The bank's latest house price index revealed that average prices last month rose by 5.4 percent year-on-year compared to 6.4 percent in July. John Loos, a household and property strategist at FNB Home Loans, said this was the seventh consecutive month of gradual slowing in average house price growth since the 8.6 percent year-on-year increase recorded in January.

What property indices and car sales data don`t tell you Is the residential property market in fairly good shape while the automotive market is struggling? At first glance, the most widely cited data tracking the performance of the property market and new vehicle sales seem to suggest that. According to the FNB House Price Index released earlier this week the average house price for August rose 5.4% year-on-year. This represents the 7th consecutive month of gradual slowing, but the bank points out that while the pace of improvement has reduced, “it should not be confused with a deteriorating market”.

Look out for my newest article on the Rental Housing Bill due to be published in the next edition of Homefront in the Business Day . The article below describes the broarder legislative landscape in the world of Property Leases. Gareth Property leases buttressed by case and common law The rental Housing Act of 1999 is the main law that applies to a residential tenancy agreement between a tenant and landlord. Other laws, or certain sections of them, may also have a direct bearing on the agreement and the contractual relationship between the parties.

Major facelift for Tshwane's Menlyn mall There is a lot of dust around the Menlyn Park Shopping Centre, but when it settles in 2016, the capital will have one of the largest malls in the southern hemisphere. An artist's impression of a part of the refurbished centre. The R2 billion refurbishment of the centre started in April, and once complete, in November 2016, will add about 50 000m2 to the centre and 200 new shops. This will bring to 500 the number of shops in the centre and will cover an area of 170 000m2. The centre is co-owned by Pareto Limited and Old Mutual Life Assurance Company. The expansion of Menlyn will be a two-phase project, which is being led by retailer demand. While there will be more shops offering a selection of local and international brands, shopper flows are also being simplified, making it easier to navigate the mall. The new mall will also have plenty of natural light as the centre's expansion is designed to Green Building Counci

Tshwane to sell off Sunnyside properties Tshwane is set to sell 33 properties in Sunnyside, including heritage houses, a theatre and the House 22 Pub and Grill, as part of the Nelson Mandela Drive Development Corridor. The proposed sale was delayed by a 21-year-old administrative bungle involving the description of properties and a subsequent attempt to rectify it. This delay will deprive the city of a higher selling price, as over time the properties' condition has deteriorated, resulting in a decrease in their market value.

Joburg abandons pool registration plans Joburg residents will not be required to register their swimming pools, as announced earlier this year by the City of Joburg. However, they will have to submit plans and make an application if they build new pools, and the council says it will 'shortly announce the mandatory process for swimming pool plans or applications'. As a result of public pressure following a series of public participation meetings with residents, the city has decided to withdraw the proposed bylaws because of costs and concerns about the capacity to enforce the by-laws.

H&M hush on the location of its SA debut The past two years has seen the transformation of South Africa’s retail sector, with more international fashion brands entering the local market. The latest venturer is Swedish based Hennes & Mauritz (H&M) – and speculation is rife as to where the retailer will set up shop. It’s already in the open that H&M will open its flagship store in Cape Town at the Victoria & Alfred Waterfront.

SA market a `dog eat dog world`- Growthpoint CEO The acquisition appetite of Growthpoint Properties over the last year is paying off; it declared an 8.3% distribution growth to 161.3 cents per share. The largest JSE property company by market capitalisation (R59 billion) says the growth in distributions was boosted by the number of acquisitions during the financial year. “The last 12 months was the busiest year since we started Growthpoint back in 2001. If you add all the investment activity and capital spend, you get to a number of R15 billion in investments,” explains Growthpoint CEO Norbert Sasse. Some of the acquisitions during the financial period includes a R1.3 billion deal of 17 high office properties from Abseq Properties and the entire portfolio of Tiber for R5.7 billion. In what is described as Growthpoint’s “ biggest investment”, it announced a stake bid in Acucap and Sycom of 34.9% and 23.2% respectively - a share swap deal worth  R4.5 billion. “We refer to i

OK - soooo ... things about your own city that you did not know.  We are a "shopping mecca"! There are a lot of really nice malls but we are hardly Dubai.  Interesting that in the article, they claim the Mall of Africa for Pretoria, which is stretching reality a little in my opinion. When considering the viability and sustainability of malls in Pretoria, I think that we should also look at the disasters of Villa Mall and Zambezi Mall to add balance to an otherwise "rosy picture". Pretoria hailed as 'shopping mecca' Development and investment in Pretoria's shopping and retail sector has given the city a surge in its economic status. The rise in the number of shopping centres has put the city among the country's premier areas. The city boasts no fewer than five of the province's most impressive malls, with Menlyn Park being the biggest, and at 118 253m carries the title of Super Regional Shopping Centre.

The exclusivity lease conundrum In a competitive retail environment, retailers at shopping centres such as Pick 'n Pay, Checkers and Shoprite continuously want to protect their turf through exclusivity clauses, but more counters are entering the fray. While in most cases anchor retailers have leases which ensure them a competitive advantage among competitors, the exclusivity lease environment is changing.

New property rental law to come into force Some amendments to the Rental Housing Act will mean every property lease has to be in writing and correctly drafted says Andrew Schaefer of property management company Trafalgar. 'This alone is a major departure from the current act, which states that a lease only needs to be in writing if the tenant requires it. This has led to many thousands of tenants and landlords, especially in informal housing settlements, living without any sort of legal document stipulating what their respective rights and responsibilities may be. 'However, most landlords don't have the know-how to draft a compliant lease, nor the time to handle the many other administrative tasks imposed by the Rental Housing Act. These include issuing detailed receipts for every payment made by the tenant, the management of tenants' deposits and provision of proof of the interest earned on these deposits as well as receipts for damages repaired, and the organisati

Worley Parsons Melrose Boulevard: Worley Parsons’s building at Melrose Boulevard has a four star rating. Nearly eight years ago green building in South Africa was considered as a “right thing to do” for the environment. But more developers are heeding the call for sustainable building as they are becoming more mindful of economic benefits and the country is positioning itself as the fastest growing sustainable building country in the world. Another six star green rating counter is Vodafone’s site solution innovation centre, located at the Vodacom campus in Midrand. “Environmentally sustainable buildings”, “rain harvesting” and “off-the-grid innovations” have been bandied about for years, but are now gaining credibility. The growth of green building in South Africa trumps that of established sustainability building regions such as Europe, Australia, United States, United Arab Emirates, Singapore and Brazil. This has been confirmed by United States-based McGraw-Hill Construct

I think that the Honourable Minister may be mis-informed!!! If by some chance the Minister of Trade and Industry should come across my humble Blog, may I suggest that he visit my website for a brief indication as to what we do at Shepperson Attorneys. If Minister Davies has even more time available, he is most welcome to visit my office and we can discuss the business of  Business Law . Gareth Shepperson Commercial and Property Attorney South Africa has no business law specialist South Africa has no specialised business law practitioners to deal with company law, Trade and Industry Minister Rob Davies said on Tuesday. Minister Rob Davies "We don't have specialised lawyers, judges, and litigators to tackle business law," he said at a company law symposium in Johannesburg. The symposium was examining, among other things, the Companies Act. Davies said the act had brought real benefits for company registration. "The law itself makes registration e

Questions arise about the real cost of Tshwane’s new headquarters. An Artist's impression of the future Tshwane House . At a special council meeting on Wednesday, the City of Tshwane’s council approved the fast-tracking of the public private partnership (PPP) for the building of a new headquarter complex. But what this will cost ratepayers over the 25-year duration of the contract, is not at all clear. Little clarity was given during the council meeting and there was also very little discussion, apart from an exchange of insults and bartering between the ruling ANC and opposition DA. Deputy city manager Lindiwe Kwele could not on Thursday clarify the discrepancy between the mayor’s statement earlier this year putting the cost at R2 billion, the city website that put it at R3 billion and an independent expert who put it at R4.3 billion. She said the city will submit a report to National Treasury where an assessment will be done. A report from Treasury will come back to cou