SA car trade 'hit by a tsunami'

 

"It was like being hit by a tsunami," is how Combined Motor Holdings CEO Jebb McIntosh describes what happened to the motor trade in mid-2007.

SA car trade 'hit by a tsunami'

Odds in favour of rate hike

Finance24
Wednesday, 16 April 2008 22:50:00

There is a 70% chance of another 50 basis points interest rate hike and an even chance of two additional hikes before year-end, says an economist.

Odds in favour of rate hike

Mbeki 'not man for Zim job'

 

The Zimbabwe Congress of Trade Unions says Thabo Mbeki is no longer a suitable person to mediate in the Zimbabwean crisis.

Mbeki 'not man for Zim job'

 

High-rise future for Muizenberg

High-rise future for Muizenberg
2008/04/17

A high-rise future envisaged in City of Cape Town documents for Muizenberg, on the False Bay coast, has caused consternation amongst residents, who fear it will destroy the coastal town's 'sense of place'.
The City of Cape Town's draft coastal development guidelines have been issued for public comment and are currently being discussed at sub-council meetings.
Intended to set a framework for coastal development along the 307 kilometres of coastline that fall under the city, the document notes considerable "inappropriate development" in recent years.
Population growth, city expansion, a development boom and strong national economic growth are identified as reasons for increased pressure on the coastline.
The coast is divided into different categories, including danger areas, new development areas, secondary and primary growth areas.
Muizenberg, along with Table View, Milnerton, the CBD, Sea Point, Camps Bay and Strand are classified as primary growth areas.
All of these areas are identified as appropriate for "significant growth and densification due to their very good access, high amenity value and current or future population concentration".
As such, envisaged development includes a mix of multi-storey flats, limited to 10 to 12 floors along the beachfront, but higher behind this row.
Muizenberg already has one high-rise apartment building in the Cinnabar Building, but many residents view it as an eye sore.
At a public participation meeting on the draft guidelines held at a Fish Hoek sub-council meeting last Friday (subs: 11/04/2008), Muizenberg resident John Cartwright said while "dreadful and feeble town planning" under apartheid had made densification essential, the historic and heritage value of Muizenberg was underestimated.
He said to encourage high buildings would cause "severe damage" to the heritage environment, referring to existing "horrors" such as the Cinnabar Building. Muizenberg was not as obviously special as nearby Kalk Bay, he said, but what there was should not be damaged further.
"It is actually a treasure and something that should be taken more seriously. The principle of densification is good but there should be sensitive ways of doing it."
Bowen Boshier, representing the Zandvlei Trust, an environmental organisation, said Muizenberg had a "tremendous sense of place". High rise buildings would remove mountain views, which would in turn negatively effect the sense of place.
"I hear repeatedly the word compromise, but developers do not compromise. They are compromising our life away and it is not necessary. I call on councillors to put a lot of thought into this," he said.
The document is likely to spark controversy in other areas. Melkbosstrand, Hout Bay, Kommetjie, Fish Hoek and Gordon's Bay are classified as secondary growth areas. This would see three-storey buildings on the beachfront, but higher buildings up to five storeys could be built behind this row. By Patrick Burnett

High-rise future for Muizenberg

 

How fractions work in USA

How fractions work in USA
Property 24 2008/04/17

Only one South African delegate attended the recent World Fractional Ownership Conference held in San Francisco, USA, and came back with info on how they do things there.
Thys Geyser, Chairman of the South African Association of Fractional Intermediaries (SAAFI) and Director of Pam Golding Fractional, was the only South African delegate to attend the recent World Fractional Ownership Conference held in San Francisco, USA, hosted by the world's guru of fractional ownership concept Richard Regatz. Says Geyser: "This conference is committed purely to fractional ownership, and was attended by 750 delegates with 70 speakers over the 4 days, representing the intellectual property of the world on fractional ownership."
Before attending, Geyser had assumed that South Africa lagged the US market by 3-4 years – given the fact that they have had fractional ownership for 12 years and South Africa only for around 4. "I found this not to be the case. In terms of the evolution of the industry in South Africa, we have caught up with the US in a big way and are almost on a par with them already, and are very close to the cutting edge."
It was also found that in terms of legislation and industry regulation in the USA and South Africa, we currently have similar issues. "In the US they define the market by equity-based products (fractional ownership, private residence clubs, etc.) – and non-equity or time-based products (timeshare, destination clubs). The general public get confused about the two, but there is a very clear line between them - you are either buying equity, or you are buying use (time). The fundamental underlying issue of fractional is that it is equity-driven. The biggest difference here is that the US has perfected their legislation and the industry is tightly governed, whereas in South Africa the legislation still lags this growing industry.
"The timeshare people in the US suggested that the fractional ownership folk affiliate with them. However, the fractional delegates chose not to do so, although they do subscribe to the timeshare legislation. They feel that they do not sell time, they sell ownership, and they want their own body and specifically don't want the close association. The situation is exactly the same in South Africa, and this issue is currently on the table.
"In South Africa there is TISA (the Time Share Institute), a self-regulating body representing timeshare and applying timeshare legislation, who say they are already regulating with proper legislation for timeshare, and have suggested that fractional ownership members join with them. The fractional market, currently without dedicated or specific fractional legislation, but represented by SAAFI, want to be compliant - but we don't necessarily want to be part of the timeshare fold. We wish to seek our own avenue, and hence have engaged with the Department of Trade and Industry. By choice and association, we would rather have our own association for joint ownership of property – whatever that property may be."
Geyser has brought back to South Africa pointers that he is now implementing among the SAAFI membership. "In terms of legalities – in the US, at the inception of a fractional ownership offering, they spend an enormous amount of time making sure that every product is registered with the regulator and that all related aspects are examined.
"In the past in South Africa, members could affiliate with SAAFI, becoming an accredited SAAFI member, and we then expected them to comply with our regulations. We have changed this, with immediate effect since our recent SAAFI Executive Board meeting. There will now be three different categories of membership – developer; broker/sales company; or management company. For every specific project undertaken, the member must submit legal documents with a list of compliance criteria, and demonstrate that everything is compliant at the outset, from their legal documents to their marketing promises. If they comply, SAAFI will approve the project, after which members can take it to the consumer."
All existing members of SAAFI will have to reapply, and new members will have to ensure that they comply with all requirements both as a company and ongoing on a project by project basis, which is the way it works in the USA. Adds Geyser: "We are a self-regulating industry, and this will further strengthen our endeavours to protect the consumer."
For more information contact Thys Geyser of SAAFI on 083 452 4774 or 021 912 1541 or email thys.geyser@pamgolding.co.za.
SAAFI have business to business seminars for anyone entering the fractional ownership industry to discuss the role of SAAFI and what we can for them – go to www.saafi.co.za or email info@saafi.co.za.

How fractions work in USA

Huge potential in African property

Huge potential in African property
Property 24 2008/04/17

In terms of property, Africa is the last true emerging market, outperforming the Pacific rim countries – but there are challenges.
According to Ian Fife, property editor of Financial Mail, Africa is the last true emerging market. "Asia is a technically emerging market but with property returns that are not worth writing home about. The same as Russia really. The one market that hasn't been covered is Africa. None of the major institutional investors are focused on Africa. That has to spell opportunity," he says. "Real estate opportunities are huge in Africa but they come with obstacles like a lack of infrastructure which is needed before investment can take place, but well worth the effort."
Mike Flax, founder and CEO of Spearhead concurs that, "There are a lot of opportunities in Africa but it is hamstrung because of land title issues and corruption etc. Therefore it is difficult to become a real player in Africa."
According to property economist Francois Viruly, Africa is the dark continent.
"In Africa, with the number of people and growth in population, the lights need to go on. Then the property market will get the infrastructure it needs," says Viruly. "Instead of one man one vote, economic development must get us to one man one volt.

"According to Gross Domestic Product, Holland looks very big while most of Africa disappears off the map.
"The moment that changes property opportunities start arising. Africa is not a continent where nothing is happening. There are a number of countries exploring it at the moment. It is a continent with commodities that China and India want. 20% of US oil comes from the African continent. That must offer opportunities."
Nick Tyrrell, head of Research and Strategy at JPMorgan's European Real Estate Group, says that from a European or US perspective there is a lot of opportunity for strong returns in African real estate. "But we also see risky, opaque and inaccessible markets with significant exchange rate risk that is near impossible to hedge and worry, maybe unfairly, about red tape, political risk, and corruption," he says.
"From my trip to Cape Town I learned that most of these things are not really true of South Africa. But South Africa on its own is just too small a market that is too far away from London or New York to be worth the cost of investing in by itself.
"I came away from Cape Town convinced that South African property specialists should be using their expertise not to take South African capital into Europe and the US, as seemed to be the theme of the recent IPD/SAPOA conference, but rather to attract European and US capital into Africa by exporting South African methods and know-how to the rest of the continent."
Hyprop Investments' CEO Pieter Prinsloo disagrees. "We need our methods and know-how locally – there's enough growth in South Africa to keep us occupied," he says. "In Africa there are constraints like a lack of infrastructure and a consumer base. Effectively one works from a low-income base."
Patrick Sumner, head of Property Equities at Henderson Global Investors, says his team is prepared to take on development market risk. "However, because the Real Estate Investment Trust (REIT) structure is not operational in South Africa and because local institutional funds are crowding out foreign investment, I don't feel there is currently opportunity in South Africa," he says. "On the positive side though there's information on South Africa's successes. IPD numbers need to be promulgated abroad and South Africa needs to continue to work hard on bringing REIT legislation in."
According to Colin Young, head of Institutional Asset Management at Old Mutual properties, "China is number one in attracting foreign investment, with Africa being fifth".
"Size does matter when it comes to attracting foreign capital," he says. "No one else is punting Africa or specifically South Africa - we need to do it!"
Lisa Forshey, a general manager of Absa Bank limited, concurs with Young that the focus has to be on size. "We have to focus on getting South Africa's stock level to a place where it can attract the money," she says.
The good news is that despite these constraints, Malcolm Frodsham, director of Research at IPD UK, says that property investors are searching for opportunities and that South Africa is well placed to be a growth hub. - By Kara Michaels

Huge potential in African property

WC restaurant sold to chain group

WC restaurant sold to chain group
2008/04/17

A restaurant in the centre of Stellenbosch was recently sold to a rapidly expanding franchise chain.
Tarragon Bistro in Stellenbosch was sold to the franchise chain Simply Asia, which in coming months is to launch a further five such outlets nationally. With 14 Simply Asia restaurants already successfully in operation, 11 are situated in the Western Cape.
"Being situated in historic Dorp Street in the heart of Stellenbosch, and with no other restaurants of this kind in the area, they are well-placed to cater for locals, including the numerous students in this university town, as well as tourists," says Joep Schoof, consultant for Pam Golding Commercial's (PGC) specialised Restaurant Division.
"Among other stock, we are currently marketing a variety of restaurants ranging in location from Camp's Bay to Muizenberg to Stellenbosch and the Winelands and other areas of the Western Cape. Buyers are wide-ranging, from locals to those in Gauteng and international investors, including those already established in the industry.
"While it's true that value for money is a key issue for restaurant, clientele, personal service and attention are other key ingredients. Successful restaurants are those where the clients feel at home - they receive excellent and personalised service - and yes the food must be good.
"In Cape Town, the successful restaurateurs are those who provide all the above and who cater primarily to please the local clientele - with the additional patronage of the tourism market an extra cherry on top. Tourism fluctuates, so if you don't hook in the locals during winter, for example, you will not fare well during a period when tourism wanes."
He says the fresh bakery/coffee shop concept where consumers can see the real product being produced, is increasingly popular. "They're looking for fresh produce and organic ingredients in a back to basics search for the best possible flavour."
From an investment perspective, Schoof says an efficient and successful operator can make back the original investment in two-and-a-half years.
"There are sound opportunities out there. However, the industry faces a new challenge in terms of the electricity shortages. New developments are providing for such contingencies in the planning stages and restaurateurs who do not make provision for energy supply need to plan forward," he adds.
For more information contact Joep Schoof on 084 415 1116 or send an email.

WC restaurant sold to chain group