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PRETORIA, GP, South Africa
Whatever I tell you about myself is TOTALLY IRRELEVANT! For an OBJECTIVE view, please read my LinkedIn Profile at https://www.linkedin.com/in/shepperson/ , and particularly the LinkedIn RECOMMENDATIONS, also see the numerous Awards won by my Firm in our Corporate Profile and consider the variety of representative positions to which I have been elected in recognition of my experience, expertise and leadership.

28 August 2014

SA market a `dog eat dog world`- Growthpoint CEO

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 it as a strategic stake in that we felt we were a little bit short in our portfolio on the retail side and the Acucap and Sycom deal has quality retail properties,” he says.

27 August 2014

Pretoria hailed as 'shopping mecca'

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

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.

22 August 2014

New property rental law to come into force

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 organisation and documentation of inspections every time a tenant moves in or out.'

The Rental Housing Amendment Bill, to be enacted later this year, will make it mandatory for landlords to provide tenants and their households with safe, weatherproof accommodation of adequate size; to keep the property in a state of good repair and, where possible 'to facilitate the provision of utilities to the property'.

Schaefer says this clause is intended to prevent people letting backyard structures that violate regulations, but it also applies to landlords in the formal sector and holds the potential for serious disputes if their tenants and properties are not regularly monitored.

He says the new law will make it mandatory for local authorities to establish a rental housing information office, and for every province to establish a rental housing tribunal, as opposed to the current arrangement where this function is left to the provinces to decide.

'This will give many more landlords and tenants access to impartial advice and assistance when it comes to resolving disputes. This is in line with the Department of Human Settlements' stated objectives in introducing the new legislation, which is to create a 'fair and equitable' rental housing landscape for an estimated 2.5 million to three million households that rent their primary accommodation, and their landlords.

'But much as we applaud this objective, increased regulation of the rental property market will result in an increased administrative and managerial burden that will largely fall on landlords, and many more are likely to fall foul of the law as a result unless they engage professional assistance.'

Weekend Argus (Sunday Edition)

SA - the world’s fastest growing green building market

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 Construction in its World Green Building Trends survey.
Located in Rosebank, Standard Bank’s head office is rated under the five green star rating category.

While South Africa is only playing catch-up to its developed and developing counters, the survey pegs the country’s take up of green building to grow three-fold, from a measured 16% in 2012 to 52% by 2015. A total of 60% of firms in the survey reported future green commercial developments by 2015, while retrofits came in at 58%.
“The future for green building is more concentrated in South Africa compared to other parts of the world…Notably, South Africa is one of the only countries with a high reported level of green activity in the residential marketplace,” McGraw-Hill Construction notes.
Nedbank headquarters in Sandton is rated under the four green star rating, considered to be in line with green best practice.

While green building in South Africa is still about the drive for companies to operate in “a more socially and environmentally responsible manner”, financial incentives are becoming realised, Neil Stuart-Findlay, portfolio manager of the Investec property equity fund.
“Businesses strive to operate more efficiently in a climate of sharp increases in operating expenses such as electricity and water. As these costs rise, businesses are looking for ways to contain their total cost of occupation,” explains Stuart-Findlay.
Artist impression of Pretoria’s mixed-use development, called “Africa’s first green city” is eyeing a four star green rating under the GBCSA’s rating system.

His sentiments are echoed by the survey which also notes that developers in South Africa are focusing on matters of bottom line, with the second motivation being natural resource conservation.
Beyond saving on operational costs, the Green Building Council of South Africa (GBCSA) says studies in the United States and Australia have shown higher returns on assets extending to rental rates in green buildings to be approximately “6% and 5% higher respectively.”
Group Five’s building in the mixed use development Waterfall City has a five star green rating.

“The drive towards greening initiatives is also about the competitiveness of what landlords are offering. If buildings are developed in a cost-effective manner, green buildings are likely to become an even more desirable offering, potentially driving stronger occupancy levels from tenants and hence higher rentals, over time,” adds Stuart-Findlay.
DSTV centre in Randburg: The DSTV centre in Randburg which is still under construction is graded as a five star green rating building.

Green star rated buildings
According to GBCSA programme manager Jo Anderson, there are 34 buildings rated in the four green star category, 13 in five star and three as six star. The buildings ranked comply with the criteria of using green and innovative technologies including; efficient energy and water use, waste disposal, the use of recyclable materials in construction, sustainable use of space and use of natural lighting.
The 30 654 square metre Department of Environmental Affairs building in Pretoria made the cut to achieve the prestigious six star rating – a category considered in line with international best practice.
“This the first government building in South Africa to achieve a six star Green Star South Africa rating and the first 6 star rated building in the City of Tshwane”. The building’s roof is covered with solar panels and rain harvesting system, catapulting the building to its green credentials.
The other two in this category are Cape Town’s No. 1 Silo at the V&A Waterfront and Midrand’s Vodafone site solution innovation centre.
Cape Town’s office development No.1 V&A Waterfront has been rated under the prestigious six star green rating.

The 18 723 square metre commercial office space No. 1 Silo achieved the rating for its water efficient fittings and fixtures, system which monitors energy and water use, lighting used when required and a storm water retention enabled roof.
The 458 square metre Vodafone site solution innovation centre, at the Vodacom campus in Midrand, ticks the appropriate checks for renewable energy use, water sustainability, appropriate material and technology used in the building’s design.
Artist impression of Alexander Forbes building in Sandton falls under the five star rating.
The five green star rating, has been awarded to, among others, Standard Bank’s head office in Rosebank, DSTV City in Randburg which is still under construction and Group Five’s head office within the Waterfall commercial business park.
The four star green rating, under the banner of “best practice” sees Sandton’s Alexander Forbes, Nedbank’s head office, Alice Lane Building 1, Worley Parsons building at Melrose Boulevard and more.
The 30 654 square metre Department of Environmental Affairs building in Pretoria is rated under the GBCSA six star green rating.

Developments in the pipeline
Anderson says the GBCSA has 62 certified green buildings with an additional 150 buildings in the pipeline for certification.
In four years’ time, Sandton will see the opening of Discovery’s new 87 000 square metre head office in excess of R2 billion. The developers of the building, a joint venture between Growthpoint Properties and Zenprop Property, will target a five star green rating. Growthpoint Properties office division director Rudolf Pienaar says the new Discovery head office will be one of the most environmentally sustainable and efficient buildings in Sandton. “It is also set to become a landmark on the Sandton skyline. Green building plays a key role in providing spaces in which businesses can thrive,” he says.


19 August 2014

South Africa has no business law specialist

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 easier and quicker."

He was hopeful the symposium would afford those attending the opportunity to exchange views on company law, business rescue processes, and takeovers and mergers.

Among those present was former top US judge Myron Steele of the state of Delaware.

He spoke about takeovers, mergers, and fundamental transactions, and what could be done in anticipation of takeovers and mergers.

He gave an example of Delaware law, where a shareholder could put a stop to the sale of a company by approaching the courts if he or she was unhappy with certain aspects of the process.