Real Estate Investor Magazine March 2013

COMMERCIAL as well as the estimated traffic flow into and scoping requirement determines the number of ACTION STEP NUMBER out of the proposed development and the aspects (from the list contained above) that must KEY RESULT STAGE surrounding node be investigated and reported upon. • Te estimated electricity, water, sanitation, A property developer then needs to investigate 1 Have the preliminary action steps refuse consumption demand and the proposed the possible impact of his or her proposed been performed? bulk requirements and bulk supply sources for development upon the environment according 2 Have the town planning and such supplies to the scope required by the relevant provincial associated applications been • Consideration of the health and safety department and convince such department that prepared accurately and aspects of the proposed development and adequate safeguards shall be implemented to comprehensively? requirements to meet the needs for any existing protect the environment and the community 3 Have the town planning and environmental impacts and any potentially from any negative impact which may arise from associated applications been threatened habitats the proposed development. submitted? • An analysis of the air quality and resources The second critical application is the 4 Have the necessary advertisements needed to maintain such air quality, the geology town planning application been placed and hearings held? of the site, the topography of the site 5 Have ALL the relevant municipal • Various other environmental considerations A series of documents are circulated within departments provided their such as: soil protection and safety, surface and the relevant local authority. Tese documents requirements in support of the underground water, fora and fauna, pollutants include an application form, a motivating application? and contaminants, potential litter and waste memorandum, a copy of the deed of transfer, Have the scoping requirements matter that would be created by the proposed a layout plan, a power of attorney, the 6 necessary for the environmental development bondholder’s consent, consent of the mineral impact assessment been received • An analysis of the impact upon surrounding rights holders, title deed(s) report, the cadastrial from the provincial environmental communities which the proposed development survey, geotechnical survey, environmental (government) department? might have as well as the heritage considerations impact study, engineering survey, traffic Have the trafc analysis, application pertinent to the site analysis and bulk services survey. 7 to Eskom, the relevant water board, • A description of the economic impact of the The process followed within the local heritage investigation and survey proposed development as well as an analysis authority and in conjunction with the property diagrams been prepared/performed? of the population indicators that the proposed developer is as follows: Have the conditions of establishment development might produce • Te local authority or council advertises the 8 been issued by the relevant local • A c o m pr e he n s i v e s c he du l e o f application in order to invite comment and authority? recommendations to mitigate any and all loss objections Has the record of decision been and damage that the proposed development • Te application is circulated to the various 9 received from the provincial might produce internal and external municipal departments so environmental government • A conclusionary fnding as to determine various conditions which must department? be adhered to during development and the bulk An EIA report takes many months to service contributions required for the purposes 10 Have the bulk service agreements been concluded with each relevant complete and must satisfy the relevant of the development municipal department? local authority and provincial government • If no objections are received, the local Have the bulk services been installed? department (responsible for environmental authority is permitted to take a decision to 11 Has the new township register been 12 opened? afairs) that such proposed development shall permit the development be performed to the ultimate benefit of the • If objections are received to the proposed 13 Have the new surveyor-general environment and the community within which new township, the development is referred to a diagrams been drafted and approved? such developmentis situated. tribunal, which tribunal must decide in respect 14 Has the zoning plan and use plan Certain proposed developments may be of each objection and provide a decision exempted from certain components or even all • Once any and all objections have been been drafted and approved? 15 Have the new title deeds been the components of an EIA: the extent to which a decided upon and the local authority decides to drafted and approved? property developer needs to research and report proceed with the new township development, 16 Has the bulk service infrastructure on a proposed development’s environmental the local authority issues a document entitled been handed over to the local impact is termed the (EIA’s) scoping. conditions of establishment, which document authority? Typically, developers submit an initial, limited provides the conditions under which the report to the provincial department responsible applicant may proceed with the proposed new 17 Has the new township been promulgated? for environmental afairs, indicating the extent township development. of the proposed development. The relevant provincial government Te facts to the right provides readers with a department then provides the property developer checklist in order to discern which stage of your RESOURCES with the scope of the required report. This development process you have reached. Courtwell Consulting www.reimag.co.za March 2013 SA Real Estate INVESTOR 49

LISTED BY IAN ANDERSON The Listed Property Sector 2013 will be an eventful year outh Africa’s listed property sector an ofer unless the management company was remain extremely difficult, particularly in gained 1% during the first month of included in that ofer. Growthpoint has not secondary locations and lower grade properties. S2013. The sector was up almost 4% made an ofer for the management company At the same time, the market should get heading into the fnal week of the month before and if its ofer is successful, this would set a confrmation that borrowing costs continue to the signifcant sell-of occurred – a result of the new precedent in South Africa for dealing with decrease, the retail property market remains weaker rand and higher bond yields. A number collective investment schemes in property. buoyant, particularly in higher quality shopping of investors were also looking to take profits centres that dominate the listed property following last year’s rally, which yielded a return As it stands right now, Fountainhead is landscape and that there are opportunities to of almost 36% for investors. dealing exclusively with Redefine until 22 continue acquiring property portfolios from February 2013. Te Financial Services Board private investors. During January, Capital Property Fund (FSB), as the regulator of collective investment reported full year results to 31 December 2012. schemes in South Africa, may well have Over the past year, the sector has evolved Total distributions increased by 6.3%, slightly the final say. According to the most recent into a two-tier market. Te larger, more liquid below market expectations, highlighting the announcements from both Redefine and listed property companies have been targeted difficult operating environment for office Growthpoint, discussions with the FSB are by foreign investors and large South African landlords. Management has guided for ongoing. Further complicating the issue is the institutional investors. The result is a yield distribution growth of between 4% and 7% fact that Fountainhead’s major shareholders are differential of more than 250 basis points in 2013, despite a significant reduction in also major shareholders of both Redefne and (2.5%) between the top fve or six companies by borrowing costs from 10% to 8.5%. Lower Growthpoint, so the ofer that adds the most market capitalisation and the bottom 10 to 15 borrowing costs across the sector are expected to value from a shareholder perspective (and not companies. make a meaningful contribution to distribution necessarily the highest ofer) is likely to prevail. growth in 2013 and 2014 (if interest rates stay Foreign investors became aggressive buyers lower for longer). While January is usually an extremely quiet in the middle of last year following a further month in terms of market-moving news, interest rate cut and the announcement from The Fountainhead Property Fund saga February is very busy with a number of industry National Treasury that Real Estate Investment remains ongoing. Both Redef ine and heavyweights set to report results, including Trust (REIT) legislation would be introduced Growthpoint are vying for Fountainhead’s Growthpoint, Hyprop and Resilient. After in April 2013. REITs are the de facto standard property portfolio. Redefine is currently last year’s phenomenal price performance, for listed property company structures in the owner of Fountainhead’s management investors will be looking to February’s results most countries and the introduction of REITs company and initiated an offer for the announcements to confirm the sector’s legislates the tax status of South Africa’s listed property portfolio last year after acquiring resilience in a tough economic environment. property vehicles. the management company from Standard Management guidance for 2013 will also be Bank. Redefine, together with the market, closely watched, with most analysts forecasting The current forward yield on the listed was surprised when its all share offer for a modest acceleration in distribution growth property sector is 6.8% and distributions are Fountainhead’s property portfolio was rates for the sector as a whole. expected to grow at approximately 7% per countered by a slightly higher all share ofer annum. Tis remains relatively attractive in a from Growthpoint. It was a long-held view, Although there may be one or two surprises, low interest rate environment. RESOURCES rightly or wrongly, that a collective investment the various management teams are likely to scheme in property could not be the target of confirm that conditions in the office market Grindrod Asset Management 50 March 2013 SA Real Estate Investor www.reimag.co.za 50

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HOSPITALITY BY ISELLE MCCALMAN Rural Tourism Is The Way Forward ourism is not an industry in the million in Q2 2011. However the incidence of that it was an overall good year for tourism in traditional sense because industries domestic travel remained constant at 6.6% in South Africa. Te country recovered quite well Tare classified according to the goods Q1 2012. Similarly, the share of holiday trips from the highs and lows of the 2010 World and services they produce, while tourism is a decreased from 16% to 14% when comparing Cup aftermath, as well as the turmoil in the consumption-based concept that depends on Q2 2011 to Q2 2012. On the contrary, business international economic markets, translating the status of the consumer. This is the major trips as well as religious based trips increased in to higher domestic travel. The hospitality reason for the difculty in measuring tourism’s Q2 2012 in comparison to Q2 2011. industry reported an average growth of 2.2% contribution to the economy of any country. over the past 5 years, which includes bed The domestic revenue increased over nights and length of stay. On the other hand With the growing significance of tourism the period under observation by 9% from there has been a decline in international globally and the increasing economic R4,6 billion in Q2 2011 to R5.0 billion in Q2 leisure travel, mostly due to the unstable and interdependence between countries, it is 2012. Te increase in revenue was a result of weak European and UK markets, which are becoming vital that South African Tourism the increased average spend per trip, as well as traditionally the feeder market for South conducts surveys of departing foreign tourists to an increase in the number of trips during this African inbound tourism. gain an understanding of the travel behaviour, period. Te most visited provinces in Q2 2012, Tis information begs two questions to be perceptions, buying process, travel patterns and by domestic tourists, were Limpopo (22%) asked: How dependant is South Africa still the amount spent on their trip in South Africa. followed by Gauteng (19%) and KwaZulu-Natal on European and other international inbound Tese surveys are the only measure of tourism (18%) mostly due to the Easter holiday trafc, tourists? Can the increase in domestic and demand in South Africa. but overseas inbound tourists consistently prefer regional (Southern African) travel boost the Gauteng and Western Cape.* tourism industry and increase the investment Since 2002, South African Tourism has potential? commissioned a monthly survey of departing History shows that during the pre- foreign visitors 18 years and older exiting “Most enterprises 2008 peak years of abundant inbound, through OR Tambo International Airport, non-African, traffic the South African Cape Town International Airport and 10 land fail because tourism market certainly became complacent border posts. Te outcome makes for valuable in many ways. The world travelled, reading and is worth a wider interpretation, entrepreneurs competition was not that ferce and the local rather than just looking at the numbers for the ignore the reality of operators and establishments creamed it. sake of the knowledge. There was little innovation, service levels the situation.” dropped and we offered the world more of Statistics for the first two quarters in 2012 the same, relying on the country’s natural told us the following: Tere were 7,0 million resources and scenery to do the work. Adding domestic tourism trips taken in Q2 2012, Although the full year’s results are not the increasing crime levels to the mix made an increase of 13% in comparison to the 6,2 available yet, the industry is in agreement the picture look even bleaker. 52 52 March 2013 SA Real Estate Investor www.reimag.co.za

COMMERCIAL local – and increasingly international – tourism. Another route that is ready for the taking is the R56 from Kokstad, winding through the most scenic parts of the Eastern Cape, to Middelburg. Towns like Maclear, Eliot, Dordrecht, Molteno and Steynsburg might be foreign names to many South Africans, but it could be the next best tourism thing in 10 years’ time with the right investment and marketing spend. Kokstad is already promoting their annual Route 56 festival and the other towns are there for the taking. Driving through De Rust just outside Oudtshoorn recently, I realised the entire town had been ‘colonised’ in the past year. Tere used to be only a few quaint art and cofee shops, but The industry, of course, nearly came to tourism have certainly had an impact on the it has now been turned into a bustling ‘have to grinding halt with the global recession. It was development of the Bed & Breakfast/Coffee be seen’ town. It is simply packed on weekends. a rude wake-up call to the industry. In South Shop/Crafts Gallery/Farm Stall establishments. And there are many similar examples to be Africa there has also been a major shift from Tere has been a furry of business registrations found around the country. European inbound trafc to African inbound, over the past three years in many parts of the which entirely changed the local requirements. country, most notably in smaller towns and So does that mean that investing in local And since Asia was a cheaper market, tourists rural areas. Tis market segment is aimed solely tourism is a good idea? Well, yes and no. Firstly also started flocking in a different direction. at the domestic tourist, be it day or weekend it is important to understand that going it alone Airlines, tour operators and hospitality outfts visitor, or longer-term holiday makers. Even will most probably be a bad idea, unless you are were suddenly forced to re-evaluate their townships have seen a range of entertainment a very well-known personality. Having a big products and services and find new ways of venues opening - anything from sports taverns budget is no guarantee for success but it helps. enticing their customers back. Although there to amusement parks. The local success stories have all been about has been a slight increase in the numbers from working together as a group or community and traditional European markets, the industry is Te establishment of “Meanders” is a uniquely the combined efort works best. still too unstable for anything substantial to South African concept and has had a positive Tat’s why variety is the key to a successful happen soon. It can be noted that the tourist impact on rural communities – creating jobs investment. One funky cofee shop in town is industry in South Africa is managing the and keeping local cultures and communities not going to attract the masses. But a coffee transition better than expected but there are alive. In other areas the idea of incorporating shop, crafts gallery and B&B with restaurant still some dependencies lingering, which is an entire route into a marketing campaign, was and live evening entertainment will stand a holding back true development. taken from the American concept successfully better chance. implemented in the now famous Route 66. Te To answer the second question is difcult, as local Route 62 from Montague to Oudtshoorn Lastly, be innovative. Market research one will have to make some deductions from in the Western Cape is a good example of how is the best investment and sufficient time existing statistics. Domestic and regional the towns along this road benefted from the and resources should be spent on analysing the facts. Most enterprises fail because entrepreneurs ignore the reality of the situation and misread the target market. Make sure you understand why the previous B&B failed or why the three restaurants in the same location had closed doors. It simply might not be the right spot or not interesting enough to entice the end-user. But generally looking at the vast variety of very interesting and innovative establishments around the country I have no doubt that South Africans have loads of talent to show the world and the time is right to invest in rural tourism. RESOURCES Rainmaker Marketing www.reimag.co.za March 2013 SA Real Estate INVESTOR 53

STANLIB ADVERTORIAL STANLIB Africa Direct Property Fund to be launched W ith the retail sector in Africa never more than one step removed from the land, schemes that will really make a difference in the growing, its development has communities they will serve”, said Beattie. which ensures they have actual rights to the land. opened up opportunities for the development period so that everyone pulls institutional investors who buy into the ‘Africa Our aim is to jointly own the development through As with any new development – particularly in Africa – market risks exist. The key for investors Growth Story’. together to make the project a success. We believe is to distinguish between real and perceived Retail developments present an exciting it is our duty to give back to the industry and to the market risks, advises Beattie, and have mitigation prospect for property developers in Africa, continent by assisting our partners to grow their strategies in place. says Amelia Beattie, CIO of STANLIB Direct businesses while we grow ours. This concept of true “Africa remains a very good return play. We are Property Investments. The investment partnership in Africa is really important.” targeting a gross IRR of 25% in dollar terms; opportunity lies in formalising a sector that Partners with in-country capabilities make it easier that is achievable if you do it right and if you is largely informal – to the tune of 70% of to adequately deploy resources and maximise return manage the time to market. But the real value overall spend. Research shows that of every on investment. $50m seed capital has already been proposition of investing in Africa is that it’s such a household, an average of 29% is spent on food committed to the Fund. Ensuring the appropriate great opportunity to do responsible investing. As and 10% on apparel. Converting this spend – deployment of capital is essential and Beattie business and as custodians of investments, this is from informal to formal – could revolutionise the is confident of this, owing to a robust pipeline of what we want to stand for”, says Beattie. sector over time. projects. The soon to be launched STANLIB Africa “Some of these are in the final stages of due For more information, contact: Direct Property Development Fund will invest diligence, some are ready to go into the ground and Amelia.Beattie@stanlib.com in core commercial real estate developments some are still in the design phase. There are good in Nigeria and Kenya and offer institutional investors exposure to top quality assets that will be created. Retail developments will be a key focus. The proposed Fund has earmarked up to 8 developments over the next 8 years, depending on their size and feasibility, as both countries have compelling growth potential, says Beattie. No two African countries are identical, and consumer spending habits differ vastly from country to country. Understanding idiosyncrasies, catering to them, and ultimately capitalising on them, is what is needed to unlock value for investors. This is why partnerships are so important. “The Fund will be aligned to partners that are 54 February 2013 SA Real Estate INVESTOR www.reimag.co.za www.reimag.co.za

REI Offshore E-commerce saved the USA Law To Bar Foreign South African’s Ownership Of SA Farms Look Towards Namibia Regardless of the destruction it’s causing to the Foreign nationals will no longer be able to own Historically an appealing destination for South bricks-and-mortar retail industry, e-commerce land in South Africa once government’s land African tourists, Namibia is experiencing development helped prevent the downfall of the policy is finalised and passed into law, Land increasing interest from South African home US industrial market. Reform Minister Gugile Nkwinti said. buyers, mainly among those seeking to acquire After rising to the top, in retail store battles, “All people who are foreign nationals will homes in Windhoek and leisure and residential major chains such as Best Buy and Barnes not own land, but will lease land on a long- properties in Swakopmund, says Dr Andrew & Noble are still planning to cut hundreds term basis,” he said. Nkwinti was responding Golding, CE of the Pam Golding Property group. of stores in 2013—but with the help of the to a question during a “dialogue” with farm Te appeal of the Namibian property market is e-commerce boom, the supporting industrial workers in Paarl. Te question had to do with further aided by the fact that Namibia is part of market has emerged strong this year with foreign ownership of farms. Te minister said the Southern African Customs Union (SACU) declining vacancy and modest rent growth government had completed an audit of state- and the Southern African Development in most markets. Global e-commerce is owned land, but was still busy with its audit of Community, which plays a significant role expected to double to $1 trillion in three public and private land. “Privately-owned land in facilitating trade between the countries. years, with Amazon taking at least a quarter includes land which is owned by foreigners. We All indications are that this trend is likely to chunk of that market.Demand for new are busy auditing all of that land,” he said. continue for the foreseeable future. Further distribution centers today is strongest around When the audits are complete and government’s positive news is that the Namibian economy the ports, but is also expanding in major policy is promulgated into law then “people who is showing resilience in the face of the global population centers such as large cities in are foreign nationals will not own land, but will economic challenges and shows the potential not California, Texas, and New York. lease land on a long-term basis,” said Nkwinti. only for growth but increased cross-border trade. Valuable Input Tom Waite, Associate Rob Davies, Trade Jane Clough, Sales Dr Andrew Golding, Craig Illman, CEO, Director, Jones Lang and Industry Minister Manager, Pam Golding CE, Pam Golding Propwealth LaSalle “We clearly see upside “Tere is an urgent need “Traditionally, “Due to its proximity, “Cash fows versus capital potential in 2013, for Africa to develop London has proven Namibia remains growth? South Africans driven in particular by industrial policies a popular location an attractive option are starting to realise further large portfolio which will underpin for South African for South Africans, that cash fow is what is and platform deals. We the diversifcation of buyers, many of whom including real estate needed from a property.” also expect continued production structures, have family overseas investors looking demand for strong raise competitiveness or require a London to diversify their income-producing levels and expand the residence for part-time investment portfolios. opportunities.” continent’s export business or personal Many of the South basket.” use.” African enquiries are for Swakopmund.” www.reimag.co.za www.reimag.co.za March 2013 SA Real Estate Investor 55

OFFSHORE INVESTMENT BY SCOTT PICKEN Buying Trips Make sure you invest in the right property ore than 80% of South Africans who the country or city then you look up a few estate 2. Another example is in USA. Many South invest overseas actually lose money! agents. Tey take you out to see properties and Africans have been investing in Atlanta. Tey MThis is because they make crisis tell you everything you want to hear. Bottom line think the returns look great on paper or because investments! Either the Rand is falling and they is they know you are from out of town and so it is there is a fnancing (dodgy) option but they are panic or they fy to somewhere like London for easier to sell you properties which the locals don’t buying in Clayton County. Clayton County a week and expect to fnd a good investment. I want. Let me give you some examples: has had its education system downgraded and always turn it around and ask how successful so no one wants to live there – not tenants or a British person would be if they arrived in 1. Having lived in London for nine years and home owners. No one in Atlanta wants to invest Johannesburg for a week and expected to fnd invested in a lot of property, I have the “Rule there, but this is where all the South Africans a good investment. of 10 minutes”. Basically I don’t buy a property are buying because the properties are cheap and unless it is less than a 10 minute walk to a the returns look good on paper. As my partner Most people who go overseas to buy have tube station. Trust me when it is raining and in Atlanta said, “You can put lipstick on a pig, accumulated wealth through property in South cold you don’t want to have to walk too far. If it is still a pig!” Africa. They are experienced, have the right it is more than 10 minutes then people have to partners, have experience and most importantly catch a bus – which they don’t like to and so you 3. In all first world countries your exact they have a “gut feel” which has through the can command a far lower rent, will have more address determines the school your children years with their experience really helped them vacancies and basically it will afect your capital can go to. So you can go down the same street make the right decisions. Now they book a trip growth. Your “gut feel” will never understand and the house on the left you can go to the to London / Sydney / Atlanta, etc for a week, this and I can prove this with the hundreds of good school and the house on the right you with the expectation of buying a property and South Africans who have travelled to London can’t. You would never know this and trust me using their “gut feel” and it DOESN’T work. and bought in areas where “we” the people who the estate agent won’t tell you as she can’t sell Let’s look at some scenarios. When you arrive in lived in London, don’t want to live! the property locally. 56 March 2013 SA Real Estate INVESTOR www.reimag.co.za www.reimag.co.za



OFFSHORE INVESTMENT Ten you buy the property and the agent earns you are trying achieve, your thoughts and 13. Make sure you meet the entire team – their commission. I am sorry but you are a no concerns. Te more open you are with them the lawyers, inspection agents, management agents. body on the other side of the world. You have more they will be able, with their partners on Know who you’re dealing with. no critical infuence and so it is very difcult the ground, to help you make sure you achieve to contact them, you deal with time zones, all your objectives. 14. While you are there and you are fully communication problems and generally it is focused, if you like a property then work with a nightmare – sitting on the other side of the 5. Work with the investment specialistto plan the partner and the investment specialistin ocean and sapping, time, energy and money! the trip. South Africa to secure the property and get the necessary paperwork done before you leave. It is not possible to do this on your own or 6. Read all the recommended research before Once you get home life will hit you in the face with your brother or a friend who lives there. you go. and often you lose focus and then all the hard work you have done will be wasted. I am not saying this because I own an 7. Go on the Internet and see what some of the international property company. I am saying competitors are ofering, and take down all the You can see that everything is based on two this because when I lived in London in 1999 details. things. Getting the right information and and I was coming back to South Africa to buy dealing with the right partners. I truly believe properties on my own it was a nightmare. I am 8. If the above steps are followed then when that with our experience over the years, this South African, but dealing with the agents, you arrive overseas you can hit the ground is the greatest value we add to our clients as developers, lawyers, banks, management running. we can quickly achieve these two objectives. agents, etc all in a rushed time was fraught with I have actually made 35 videos when I was disaster. Tis is why we started International 9. I would suggest on the frst day you land, you travelling in Australia on an investment trip Property Solutions (IPS) in 2003 to help people plan a rest day as generally you will be jetlagged on everything I do to get the right information negotiate the challenges of investing overseas. and there is nothing worse than looking at and partners. We are about to launch a book We decided to use our experience of investing property and trying to seem intelligent when which works with Clem Sunter to help people in international property for 14 years personally you are shattered. make strategic decisions about which are the and helping over 2000 people invest to a best countries to invest in. When we launch the value greater than R1.6 billion, to investigate 10. Make sure that they take you to see lots book, we will make these videos available so to international countries and uncover the of properties which suit your requirements. that we can continue to educate people and they opportunity by doing two things – getting the Tis all should be pre-planned, based on your can make the best decisions for them and their right information and right partners. discussions with the investment specialistin family’s future. South Africa, who will coordinate Based on this I would like to ofer advice as to everything. Make sure they how to invest internationally, achieve wealth have printed documents creation and preservation, a plan B and peace with everything about of mind and achieve a successful buying trip. the properties so you have the full financial Here are the steps: picture on each property. 1. Be strategic – whatever you do, don’t make crisis or emotional decisions. 11. Ask the partners to take you to the competitor’s product and g ive 2. Firstly read the report on the “6 things you feedback. you need to know and ask before you invest offshore?” Go to www.ipsinvest.com to 12. Decide if you trust the partner. Bottom line download. is I have a saying, “I don’t invest in property I invest in people.” Your gut doesn’t work and it 3. Based on this report, find a company who doesn’t matter how much research you do, even ticks the boxes which are outlined to ensure that in 6 months you will never know the market you are dealing with the right partner. Someone like someone who has been operating with you can trust and someone who has your best decades of experience. Te only “gut feel” you interests at heart. should have is if you trust the partner. From there listen to them. Don’t try and think what 4. Book an investment consultation with one you would like or what works in South Africa. of their specialist in South Africa many weeks It is irrelevant. Listen to what the partner says RESOURCES before your planned trip. Outline exactly what works in that country. IPS Invest 58 March 2013 SA Real Estate INVESTOR www.reimag.co.za

AD CAPE TOWN SANDTON Ground floor, Liesbeek House, River Lane, Mowbray 2nd Floor, West Tower, Nelson Mandela Square, Official South African marketing PO Box 23644, Claremont, 7735 Sandton, PO Box 785553, Sandton, 2146 agent for LEPTOS ESTATES Tel: +27 21 680 5272 | Fax: +27 86 670 6490 Tel: +27 11 881 5706 | Fax: +27 86 670 6490 www.LeptosEstates.com www.reimag.co.za Contact: Jenny Ellinas | +27 83 448 8734 | jenny@cypriotrealty.com | www.cypriotrealty.com

LONDON BY MIKE SMUTS London’s Changing Demographics Getting both older and younger ir, when a man is tired of London, he is tired of life; for there is in London all Sthat life can aford” – so goes the famous quote by English author Samuel Johnson. And for decades Johnson was spot on. Young bright faces f locked to the UK’s capital in their thousands from all over the British Isles, Europe and the world - to go to university and work, moving out again when their growing families required more space or when they retired. London imports the young and exports the old, the theory goes—or went. For the UK’s last census reveals a startling demographic change that has drastically slowed Londoners exit from the capital. 60 March 2013 SA Real Estate INVESTOR www.reimag.co.za www.reimag.co.za

OFFSHORE OFFSHORE Net outfows to the rest of Britain are half what But people still need to live somewhere. So, 12 per cent of all tenants see themselves as they were in 2005, partly because more people if they don’t have a large deposit or access to ‘permanent lifestyle tenants’; this segment is have drifted into London. Net inflows from favourable mortgage products, they will rent. growing rapidly. overseas, though declining, remain positive. In 2009, 49 per cent of under-30s in London were housed by the private rented sector. Tis Changing social and economic patterns Since 2002, births in London have soared by pent-up demand from would-be purchasers have caused this shift away from the British 25 per cent each year, contributing to 37 per is consequently buoying the London rental obsession with home ownership. Firstly, a cent of England’s natural population increase market; it also means that rents rise faster than larger number of people are staying in education (the surplus of births over deaths) between in other parts of the UK. for longer, and therefore delay buying property 2009 and 2010. until they are in full-time employment and have Te latest HomeLet index shows that rents had a chance to pay of their student debt. On current projections London’s population have risen an average of 6 per cent across the will swell from just over 8 million now to capital in the last year, 16 per cent in the last Secondly, due to a growing service sector over 9million by 2031, which is roughly the two and 32 per cent since 2009. and a shrinking manufacturing industry, the equivalent of adding the entire population of South West London is the only area to show UK is shifting toward a mobile workforce in Britain’s second city, Birmingham. Te number a decline in rental prices, but it’s still the most which employees do not regularly stay with one of London households is set to increase to 4.4 expensive area with an average rent of £1,724 a company for their entire careers. Employment million over the same period. About 80 per cent month. Areas which were previously perceived agencies now estimate that the average stay at a of this growth in household numbers will be in as “cheap” have also seen big increases over company is only four years. With the population single-person households. the past year as tenants move further afeld in moving that often, many people do not want to search of better value – only to increase demand incur the cost and hassle of buying and selling Tis growth in population is being driven by, and push up prices in the process. South East properties repeatedly. among other things, an increase in life expectancy, London rents have risen by 7.9 per cent and East fertility rates, divorce rates and net migration London by 9.6 per cent. This substantial increase in the number of to the UK’s capital. So London is getting both Britons unable or unwilling to buy a property younger and older—but above all bigger. Average yields in London also currently of their own has led to a massive increase in outstrip all other areas of England, standing the private rented sector. In 2001, there were The growing demand from at 4.71 per cent while letting agents in London about 2.4 million households renting their London tenants also report the lowest void periods, with 88 per homes; yet, in less than a decade, this swelled These headline statistics point to continued cent renting property within 28 days or fewer. by more than 50 per cent to 3.64 million. Some long-term population growth, which shows no commentators believe this is one reason why signs of dwindling, and which is increasing the Whereas an Englishman’s home was once UK house prices are overvalued. What they demand for properties in London. his castle, Britain is fast becoming a nation fail to take into account, however, is that the of tenants. private rental sector in the UK is far smaller Yet, restricted mortgage availability means than in much of mainland Europe, where that entry into the housing market remains House prices rose by 273 per cent in real renting a property is seen as the norm, and not difcult for those without the cash for a large terms between 1959 and 2009, while the as the inferior option to home ownership. For deposit. And, according to recent report from growth in real earnings was only 169 per cent example, across the UK, only 14 per cent of the National Housing Federation, things are over the same period. So, even when taking accommodation is privately rented – whereas in not going to get any easier for young buyers into account the so-called housing crash Germany, this fgure is 49 per cent; in France, dreaming of their own home in London. of 2007, it’s clear that average UK house- 21 per cent; and in Greece, 20 per cent. So the price inflation over the last decade has far UK market has plenty of room for growth. The Federation commissioned Oxford outstripped average wage increases. Economics to forecast how long the average Tese headline statistics demonstrate a long- 21-year-old would have to wait until he or she Because of this, the gap between what buyers term continued population growth – one that could aford a deposit of 20 per cent and to earn can afford and the price of good-quality shows no signs of abating, and that is increasing enough money to qualify for a mortgage. Teir property is now so wide that 70 per cent of frst- the demand for homes throughout the UK, startling research puts the future average age time buyers said in a 2010 poll that they have notably in London and the South East. And of frst-time London buyers at 52 – but only if given up hope of ever owning their own homes. while people fock to London for all that life they’ve not had any children and have saved up can aford – property investors will defnitely a large enough deposit. However, not all tenants are would-be buyers not grow tired of London bricks and mortar. who are forced to rent. Many actually choose, Tis is mainly due to the fact that struggling and prefer, to rent. A 2007 CML survey found young buyers in London need on average a that only 50 per cent of people under 25 have deposit of £57,175 to get a foothold on the any desire to own their own home within two RESOURCES property ladder. years. Another study concluded that about Smuts and Taylor www.reimag.co.za www.reimag.co.za March 2013 SA Real Estate Investor 61

FINANCE BY COLLEEN MAY Median Property Prices Global diversifcation or investors, the race is on to fnd the best Below are the median property prices for previous year and 54.4% from its peaks, and if property investment opportunities the ofshore property, which will give you an idea of they do not substantiate the claim that Dublin Fworld has to offer. Investors generally average property prices. is doing much better, perhaps amend the claim. look to acquire a property portfolio that New Zealand USA has a combination of short and long-term Property Prices – average opportunities in a variety of diferent countries Median home prices rose in three of the four therefore diversifying their investments and • In Auckland Area, the average sales price regions in December. Te Northwest saw its price minimalising their risk. soared 7.2% to NZ$575,797 (US$472,073) rise to $231,600 up from $229,800. Te new price • In Wellington Area, the average sales price was also up 5.3 % from the year before. It has been suggested that during all rose 2.3% to NZ$445,679 (US$365,394) stages of the property cycle, diversifying by • In Main Urban Areas, the average sales price In the Midwest, the median home price adding international property to a property increased 6.1% to NZ$478,404 (US$392,224) increased to $144,800, up from $141,600, and investment portfolio can signifcantly increase • The nationwide average sales price is now it rose 12.3 % from December 2011. returns and decrease risk. NZ$428,308 (US$351,153). Te South saw prices appreciate to $161,100 Ireland The case for global diversification over the in December, up from $156,700 in November. long term is strong. In a boom, a bust, or even in Te national average asking price for residential Prices were up 11.0 % from the previous year. a long period of similar conditions, an investor properties fell to €172,000 in Q2 2012, 53% with global real estate assets would have below the 2007 peak of €366,000, according In the West, prices fell slightly to $239,900, signifcant improvements in risk adjusted return to Daft.ie. Te asking price index fell by 13.9% down from $244,600 in November, but prices and increased returns overall. during the year to June 2012. were still up 17.3 % from December 2011. Canada province – average house Canada Province – Globally, the increasing attractiveness of Te market in Ireland’s capital, Dublin, is much prices December 2012 average house prices December 2012 property and greater capital mobility have healthier. Dublin’s average asking price in June Province Ave House 12 Mnth made cross-border investing more popular. 2012 was €214,000, quite close to the average of Price Change This has also been aided by the increasing €217,000 being asked in December 2011. British Columbia $498,000 - 3.0 % accessibility to finance for non-foreign Ontario $369,000 + 3.6 % nationals in many countries. In Dublin City Centre, the average asking price was down by 10.2% to €167,172 during the Alberta $363,000 + 4.8 % By taking advantage of lags in timing in the year to Q2 2012, 59.3% down from the peak. Quebec $274,000 + 3.6 % different property and economic cycles, an Saskatchewan $284,000 + 9.6 % investor can insulate a portfolio from some of West County Dublin had the sharpest y-o-y Newfoundland / Labrador $289,000 + 11.5 % the domestic ups and downs. fall, with average asking prices down by 19% to €165,598, 56.8% lower than its peak. Manitoba $250,000 - 3.7 % Many people feel that international property is Nova Scotia $205,000 - 8.8 % out of reach. Tere are also practical challenges North County Dublin’s average asking price Prince Edward Island $165,000 + 28.6 % to cross border investment for example, culture, was €207,850, 14.2% lower than the previous New Brunswick $151,000 - 1.4 % currency, tax and legal jurisdictions. As fnance year and 52.9% down from the peak. Canadian Average $353,000 + 1.6 % becomes more easily available the foreign markets are becoming increasingly accessible to In South County Dublin, the average asking RESOURCES small and medium investors. price was €328,959, 11.3% lower than the Global Property Guide 62 March 2013 SA Real Estate INVESTOR www.reimag.co.za

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PROPERTY MONITOR BY ANGIE REDMOND Live Like A Princess ave you ever dreamed of living in a fairytale home or castle? Well, we have Hscoured the World Wide Web to bring you real fairytale homes, castles and properties Fairytale homes around the world right out of the fction section. Tiny Fern Forest Tree house, Lincoln, USA The tree house is indeed a cozy little place perched on four maples 30 feet above a blanket of ferns. Access is via a ramp 70 ft. from the main house, where you’ll find a private bathroom with shower. This quiet place in the woods has heat, electricity, and a small refrigerator. The main floor has a single bed, but if you climb the ladder to the loft there is a queen-sized futon and down comforter. Enjoy the comfy reading rocker or sit on the deck and gaze at Mt. Abraham and the Green Mountain National Forest. The hot tub is a sweet new addition to the place. For those less adventurous, there is a guestroom in the main house with a double bed. The Cob House, Somerset, England This stunningly beautiful tiny home with sculpted cob walls looks out over the banks of a small stream in Somerset, England where the local dialect still has remnants of the Anglo- Saxon language. Te home is the work of Lisa and Rich who built the house with clay from the stream that runs just out of view in this picture. Tey collected round wood of Pine and Hawthorne thinned from the local woodlands to build the frame of the home. If you want to build with cob then you must test the quality of your clay. Cob also depends on the coarseness of the sand. Tis is how to do a snowball test. Combine your clay soil and sand in diferent proportions: 3:1, 2:1, 3:2, 1:1, 2:3, 1:2 and 1:3. For each, mix the sand and clay thoroughly and add just enough water to make the grains stick together when you squeeze a double handful very tightly. The HemLoft, Canada Described by its creator as “a secret tree house hiding in the woods of Whistler” in the Canadian province of British Columbia, the HemLoft is, unlike many buildings that describe themselves such, a tree house in the truest sense: the entire weight of the egg-shaped TOP: Tiny Fern Forest Tree House, Lincoln USA structure is supported by the tree around which MIDDLE: The Cob House, Somerset England it is built. Tough open to visitors - the right BOTTOM: The HemLoft, Canada sort of visitors, at least - one frst has to fnd it. 66 March 2013 SA Real Estate INVESTOR www.reimag.co.za www.reimag.co.za

LIFESTYLE & Crafts architecture and features rolled-edge And the ongoing story of the HemLoft’s ever- roofs and antique leaded windows. As Curbed widening profle is as compelling as the story NY noted when the listing hit the market in of its construction - and it’s a story with an 2009, what lies behind all that stone is pretty uncertain ending as the land the HemLoft is much under lock and key, generating folklore built on is Crown Land. about basement bowling alleys and revolving garage doors. A modern twist on the centuries- The Hobbit House, Wales old Hansel and Gretel fairytale, for sure. Tis is a house Simon Dale built for his family Hello kitty house, Shanghai in Wales. It was built by Simon and his father- in-law with help from passers by and visiting Obviously meant for the fancy girls who adore friends. Four months after starting they moved the cute cuddly cat, check out this lovely Hello in. Simon estimated it took 1000-1500 man Kitty House (Villa) in Shanghai. Designed hours and £3000 in materials. Not really so in – what else but pink, this cute looking much in house buying terms (roughly £60/sq m mansion has Hello Kitty themed interiors and excluding labor). Te frame is constructed from a charming exterior that would make a guy quite wiggly round oak logs 5”-10” in diameter. blog live from the premises if permission was All of these were selected and felled from the granted. The famous kitty bow in pink and surrounding woodland as part of an ongoing white is spread all across the walls, the clock, program of thinning to allow selected trees the furniture and (even) the bed. space to grow on to maturity. A wood burner heats the home, and an ingenious system that pipes cool air in from underground keeps the TOP: Hobbit House, Whales family refrigerator at an optimum temperature. RIGHT: Hello Kitty House, Shanghal A skylight fills the small home with natural BELOW: Nautilus House, Mexico City light, water is sourced from a nearby spring, BOTTOM: Gingerbread House, Brooklyn and solar panels provide all of the electricity the Dales need to power their musical, computing and lighting equipment. Tis amazing hobbit house puts the dream of living in an earth- friendly home frmly in reach. Nautilus House, Mexico City Located near Mexico City, this is a unique shell-shaped house designed by Mexican architect Javier Senosiain. The house design is very innovative, unusual and audacious. Javier decided to bring the life aquatic into architecture. Tis house takes the form of the Nautilus shell and is wonderful to look at and to be in. Te interesting feature of this huge shell is a striking entry cut into a wall of colorful stained glass. Inside it casts multi-colored spots of light onto walls. But it’s not the only surprise you will fnd. Do you want to walk on the stone paths along the amazing grass carpet? Entering the bathroom you will fnd yourself under the water with the sandy walls, gorgeous blue tiles and the window overhead. Tis house is worth speaking about for a long time. It is not only beautiful but also earthquake-proof and maintenance-free. The Gingerbread House, Brooklyn Te Gingerbread House, is a James Sarsfeld Kennedy-designed six-bedroom home in the far reaches of Brooklyn. Built in 1916 and listed for $12 million, the property embodies typical Arts www.reimag.co.za www.reimag.co.za March 2013 SA Real Estate Investor 67

DECOR BY ANGIE REDMOND Get Colourful Give your home a paint makeover Colour wash he mad rush of the New Year is over, and the proper brush yield a charming hand- Valentine’s has come and gone but don’t Colour washed walls create a mystical soft touch painted look. Taping lends the feel of precision, Tdespair, there are many more projects to bold coloured walls and it is the easiest paint with a crisp line. Tese stripes are hand-painted to keep your hands full. And what better way technique to master. Colour-washed walls bring along a pencil line to give them a slightly to start than by sprucing up your house and movement and drama to a room’s vertical surfaces. imperfect edge. For a straight line, use painter’s updating the look with some daring paint The technique is simple to master and you can tape to mask of the stripes. For bolder stripes, jobs? Whether you prefer classic, colourful layer on as many tones as you like; the more layers choose brighter colours or a pair with more or something diferent, we have all the bases you add, the more interesting the fnish. contrast. covered when it comes to putting a new outft Paint tiles on your house. Dragging, or strie, is an easy way to add interest to a smooth surface. Te technique is Give outdated ceramic tile walls a new look by Graphic designs created by pulling a dry brush through a coat of decoratively painting them in colours you love. In a young girl’s bedroom, a bold colour wet tinted glaze and it allows a range of looks, Enamel craft paint (available at crafts stores) blocking technique can be used. You can use including fabric-like weaves. covers well on most tiles. simple colours such as matt black and paint a Te efect is pronounced when there’s a clear Five unconventional ways to paint large rectangle behind the bed. Tis highlights contrast between the base- and glaze-coat your room the other colours in the room and can tie the colours; tones of similar intensity can yield a furniture into the design, depending on what subtler look. You can also use strie to create a Painting the ceiling and one of the walls the colour you use. feature panel. same colour, elevates the wall and ceiling into a foating pane of colour. Tip: Add a graphic butterfy design by buying Tip: Create a striking impact on what would self-adhesive vinyl in black and white. Cut out otherwise be a bland wall by making the colours A deep crown mold and a bold painted ceiling the shapes and stick them onto the wall, or buy in the panel tie in with the colour of the chairs make for an interesting mix of the classic and a stencil and paint them on. in the room. the unexpected. Add colour to a neutral room Stripes not solids Another take on the idea of painting half Are your rooms stuck in neutral gear? See how In a sophisticated tone-on-tone colour scheme the room — this time, a thin, contrasting bright, bold blocks of wall colour warm up a or delightfully bright circus-tent colours, stripes horizontal stripe in-between the two colours formerly all-beige living room. add quick interest to plain walls. A steady hand adds a bit of architectural appeal. 68 March 2013 SA Real Estate INVESTOR www.reimag.co.za www.reimag.co.za

LIFESTYLE ABOVE: colour wash ABOVE: graphic design, butterflies ABOVE: 2013 red colour shift Owls give way to insects Moody blues If you’re very ambitious, you could try this effect, with two different stripes in varying The simple owl seen on everything from Deep gray blues, smoky peacock greens, and heights. Laser level (and lots of patience) paintings in the nursery on “How I Met slate greens ofer one side of 2013. On the other recommended. Your Mother” to butter dishes at the local side of the window find coloured glass and Marshall’s are moving aside for some other iridescent pastel hues. A foating red square turns a wall into a piece flying creatures: insects. Dragonflies have 2013 colour shifts of art; painting the door extends the idea into always held a certain appeal to some people, the next room. but in 2013 prints of all types of insects fnd Reds shift to orange reds, and pair well with their way into our homes. From wall prints bright blue, medium grays, or black and white. Colour trends for 2013 to throw pillows, be on the look out for Start making your holiday wish list now and enlarged, detailed images of insects in black, Browns take a cue from leather, in both colour you’ll get exactly what you need to update your on pale backgrounds. and texture. Nothing beats warm browns, home with 2013 colours and decor. Bookmark bluish grays, rustic reds, chamois and bottle More botanicals home decor images in a toolbar folder. Create green for creating a welcoming living space. a Pinterest wish list. Print out images and post Make room for botanical prints and them to an idea board. Spring 2013 home decor observational drawings, but don’t go overboard. Yellows go from bright and sunny to a melted, colours are cheery and light, and the designs are A few select prints go a long way. Create the buttery gold. Tey work best with soft pastel simple yet meaningful. look by purchasing natural history books with colours, often used in an Art Deco palette. illustrations from a library book sale. Tink rosy pink, light blue, aloe green and light It’s geometric purple. Geometric patterns and architectural * Manipulate the prints by making black and structures provide familiar and reassuring white copies and then mount them on colourful 2013 home decor greens could be plucked shapes to home decor for 2013. Black and card stock. from trees, including olive and pine. white dinnerware pair well with a pastel * You can also make coasters or place mats with RESOURCES palette, also trending for spring. Te geometric the images and some clear laminate. patterns are two-toned, allowing for versatility * Line the back of a book case with botanical Apartment Therapy in the rest of the decor. images. Yahoo www.reimag.co.za www.reimag.co.za March 2013 SA Real Estate Investor 69

DESIGN BY ADRIAN MASEROW Architecture Embracing the world as art hen preparing an article for Boring environments bring little delight and are As architects we communicate through the ‘the publication the predictable outline totally unsatisfactory – economists are beginning drawings that we have lived in’ by realizing these Wof a project as a series of facts and to grapple with the understanding of livability as as fne works of architecture. Tus our mental fgures of an architectural design is inherently an important aspect of the real value chain. space consciously renders the deep structure limiting in its understanding of the value of the of our intuition is accessible to ourselves, and building and it is out of this comfort zone that As we discover more about ourselves, our potentially to all through our building. I comment on the other aspects of our designs. inherited capabilities and the ways in which they unfold in the world, there is a shift in the We value the qualities of architecture that Most projects are described as the numeric assumptions underpinning many of the design are both authentic and enduring as it helps us descriptions of bulk, coverage, parking ratios, processes of professionals. discriminate between what is actual and illusory, height zones, materials, and hopefully, the positive signifcant and trivial, natural and artifcial. returns that a project yields for its investors. This also goes beyond the world of architecture to fashion, design, interior design, Presence, Significance, Materiality and However, little time is spent on the important product design, industrial design, music, Emptiness are the four components of a richness values that we also need to speak about . composition and art. we look for in our buildings & the balance between them is the poetic we strive for. A huge part of the value chain that we as A review of recent design has proved to be architects are deeply involved in and promote, enormously effective in opening the hidden We are poised between nature, and culture is the aspect of design which yields the most structures of our spatial design intuition. – architecture has always firted with illusion satisfying and supportive environment and artifce, the real and the unreal. And with for our clients, and which has a powerful Our spatial intelligence, our spatial histories, current technological advances in structure, compositional poetic. our mental space and the mental space of our materiality, lighting, and cladding, we are able shared communities is embraced in order to fully indulge in these semantic possibilities. Professionals are the products of social to value our architecture with some degree contracts between specialists and society, and of autonomy and our professional advice Te quest for authenticity is the authority it is incumbent that we separate the stylists and articulates a spatial intelligence that architects that comes from being real and this is the search brand imitators from those who seek to help share with society. is for a poetic of architecture in our buildings - society in the quest for betterment. We promote efciency and great design which Over 80% of the communication between embraces our full responsibility as architects. The very best architecture is forged in the humans is passed on through nonverbal clues mental space of our communities and for us as and body language and the visual world of architects we aspire to design spaces that inspire architecture carries far more importance as wonder, as architecture embraces the world as a a form of communication as our spatial sense RESOURCES public art. becomes ever more tuned in and satisfying. AMA Architects 70 March 2013 SA Real Estate INVESTOR www.reimag.co.za www.reimag.co.za

Architecture AD Embracing the world as art www.reimag.co.za www.reimag.co.za

MOTOR TALK BY RUSSELL BENNETT Year of the Hybrid Hypercar n the ultra-rarefied world of the true-blue details very close to their hearts since they’re the Even the pricing of both cars is close, at hypercar, the breed that emerged when the frst to be showing a full-production model, but approximately GBP800 000. Which won’t Itrad supercar started becoming a bit too tame 0-100km/h of sub-3s is the new standard, and leave you change from R20 million in SA, at and just a little passé, new launches don’t come McLaren are sure to have over-engineered the least. With the F50 having been limited to 349 around all that often. What they do tend to thing to be as light as possible, and as advanced units, and the Enzo to 399 (plus one extra built do, however, is roll around in groups, as each as today’s tech can make it. exclusively for a Vatican charity), it could be manufacturer likes to steal some of the thunder even more exclusive than the P1. of the others since it’s all basically a big game of Which basically means active aero, torque Porsche 918 Spyder one-upmanship anyway. vectoring distributing power to the driven wheels, and a dual-clutch transmission. RWD? Without the F1 linkup, Porsche was free to This year is going to be one of those We can only hope, but given the background of go in a slightly different direction, and the tumultuous periods. It’s even more momentous the company, quite possibly. Finally, to ensure 918 is ftted with electric motors on each axle than usual, as most of the new ultra machines exclusivity, McLaren has already committed to orchestrated along with the petrol output also incorporate all-new ideas about personal making just 500 P1s. Ever. through an advanced torque-vectoring system. propulsion. Yes, we’re talking hybrid tech. And All-in the system delivers a combined 614kW, Ferrari F70 it’s in all of them. Here, then, is a brief rundown not as much as the other two but still good of the three most monumental of the lot. Yes, the mighty Enzo is finally going to be enough for that sub-3s sprint. replaced by an all-new Ferrari flagship. The McLaren P1 F70 has been spotted, heavily disguised, testing More importantly however, is the petrol motor When McLaren released the gob-smackingly all over European race tracks, and Ferrari have itself. Porsche has gone for a screaming 4.6-litre rapid MP4-12C, they made it clear from the released a few teaser images to fuel the hype, development of a V8 race motor, which ought start that it was to be their middle ground in a but once again details remain sparse. to be absolutely awesome. And yet the company product lineup consisting of three tiers. Te P1, claims an average combined fuel consumption which will be shown to the world complete for What we do know however pitches it of just 3l/100km! the frst time in late February, is the pinnacle. remarkably close to the McLaren P1, which will be unveiled just one month earlier. Well As if all of this wasn’t enough, purchasers The F1 replacement. over 700kW from a V12 boosted by KERS, of the circa R18 million Spyder will have the The hypercar as both camps move to maximise their F1 option of shelling out another few million It packs a combined power output of over technology transferral, in a lightweight all- for a limited-edition 911 Turbo S “Edition 700kW, the majority of that coming from a carbon tub and body. Te only question is, will 918 Spyder” to complement their new hybrid development of the 3.8-litre twin-turbo V8 from the Italian Stallion use some variation of the monster. Which will also be a limited- the 12C and the remainder from an F1-style unique AWD setup applied to the hideous FF production model like the one it’s named after, KERS (Kinetic Energy Regeneration System) in this thoroughbred, or stick with a good old with only, yep, 918 units being built. setup. Te company has managed to keep further RWD layout? 72 March 2013 SA Real Estate INVESTOR www.reimag.co.za www.reimag.co.za

March 2013 SA Real Estate Investor www.reimag.co.za www.reimag.co.za AD 73

TECH TALK BY RUSSELL BENNETT Clash of storage expansion. Tey also ft more neatly into a PC-dominated desktop ecosystem, and that killer capability of being able to run any Windows the Giants program expands their usefulness dramatically. Microsoft’s Surface has hit the market so hard, that even the normally irrepressible open-source option Google has been quieter of Has Apple lost it’s Core? late. With Android Jelly Bean still being well- accepted in the market, the Internet megalith could just be waiting to see how Apple responds before rolling out its own challenge. And why not, Android 4.2 is the fastest and most rock-solid platform we’ve seen so far as well as the most feature-rich. Although 128GB Android pickings are still thin on the ground, this environment has always supported SD-Card expandability. Usually limited to 64GB yes, but then there’s no ruling against having multiple SD-Cards if this proves not to be enough. Apple on the other hand have that gorgeous Retina display, the slickest OS experience, and a requirement for iTunes in order to integrate with desktops. But is it enough to keep the genre-defning product ahead as the competition quickly mounts? We’re not sure, but what is certain is that the dynamic has undoubtedly shifted. The ollowing hot on the heels of the Microsoft no less. Tese giants have clashed latest releases from the company show a more somewhat lukewarm reception to the before, and with the release of Windows 8 reactive approach to product design than we’ve FiPhone 5, Apple is making headlines and Surface devices, another titanic battle become accustomed to from the company that yet again - this time with yet another new is set to ensue. The name behind Windows, made geek gadgets cool. Rather than being iPad which is almost exactly the same as the the most ubiquitous PC operating system by out in front leading the way, the most recent old iPad. Except now, it has 128GB. Not far, has come in with a bang, with the biggest reveals are all intended to counter perceived exactly revolutionary. hardware manufacturers building a healthy weaknesses exposed by direct competitors. range of products from launch. Is it, however, a sign that the Cupertino Although this is a perfectly acceptable position Rockstar of computing hardware is faltering. Of course, it isn’t about the hardware anymore for a consumer-technology brand to be in, it Let’s take a closer look. in this tablet game, it’s about the apps. Admittedly doesn’t sit comfortably with Apple’s leadership Windows is starting from an understandably status. After all, the company didn’t release the Although the iPad has become the Hoover of lower base having just entered the fray, but it has iPhone because consumers were clamouring the tablet space, the brand synonymous with one killer feature. Surface Pro devices can run for a next-gen smart phone competitor, they the whole market drive, in the world of tech any standard Windows application. And there released it to grab a leadership position in a that is not an unassailable position. In fact, it’s are quite a few of those around. growth market through sheer innovation, and a target for all the rest to aim for. And they the iPad occupied a similarly rock-solid niche. have, quite successfully at that. In addition, coming to the party late has allowed Microsoft to leapfrog the first few The iPhone 5 and iPad 128GB are simply It started with Android, which came in and generations, avoid their pitfalls, and come out not the outright leaders we’ve come to expect. grabbed some major volume sales from the swinging with some pretty premium hardware. Apple’s enviable position might not be in iPad. But the worrying one for Apple has Te high-end Surface devices all sport 128GB jeopardy yet, but the commanding grasp it had to be the entrance of a major third player - already. As well as supporting USB and SD-card on the top spot is undoubtedly slipping. 74 March 2013 SA Real Estate INVESTOR www.reimag.co.za