Settlements HOUSING Infrastructure in Southern Africa JANUARY 2014 WHAT LIES AHEAD

THE LONG ROAD TO SAVANNA STUDENT RES GDP GROWTH

HOUSING in Southern Africa

CONTENTS

NEWS 3 House Prices 2014… 3 Good News for Home Buyers 4 4 Etoll’s Impact on Property Prices 4 Cape Town’s Delivery Rate 6 Positive Outlook for 2014 7 Municipalities Owe Eskom R1,4 billion 8 Levy Liability 9 R10 billion Spending Wish List 9 Title Deeds for Philippi East 11 R1 billion for Insurance Claims HOUSING 10 Home Owners – Aim to Improve Property Values 16 10 GDP Report – Credit Health 12 The Long Road to Savanna… 16 The William – High Density Residential Development 17 Demand for Student Accommodation 18 Making It Happen – Affordable & Social Investment BRICKS & PAVING 20 Building Brick-By-Brick CEMENT & CONCRETE 22 Concrete Performance 24 Growing Demand for Flowcrete 20 DOORS, WINDOWS, FLOORS & WALLS 25 Luxury vinyl flooring PLUMBING, BATHROOMS & KITCHENS 26 Noswal Hall – Off Campus Student Accommodation BUILDING SUPPLIES & EQUIPMENT 28 Sealing and Bonding 29 Professional Power Tools

INDUSTRY BUZZ, EVENTS & PRODUCTS 30 Builders New Superstores 26 ED’S NOTES HOUSING in Southern Africa

THE TEAM

EDITOR Carol Dalglish [email protected]

PUBLISHER Jenny Warwick

ADVERTISING Brenda Grossmann [email protected] Portrait of Nelson Mandela. (Image by Nelson Mandela Centre of Memory) Nelson Mandela Centre of Nelson Mandela. (Image by Portrait DESIGN Keep the dream alive ... Lesley Testa CIRCULATION South Africa’s greatest son passed away in December 2013 and the Karen Pearson

world shared in our grief on the loss of the humble, larger than life, READER ENQUIRIES statesman who was beloved by all. Radha Naidoo

e touched the lives of many programme celebrating his life, each SUBSCRIPTIONS people on every continent one keen to uncover stories on how Wendy Charles Hand served as a figure most the late President touched the lives of would love to emulate but few have the people. Our loss is heaven’s gain! PUBLISHED MONTHLY BY: the capacity, forbearance, courage Jenny Crwys-Williams’ book, ‘In and fortitude of Nelson Rolihlahla the words of Nelson Mandela’ lists Crown Publications cc Mandela. Madiba as saying: ‘In Eulogies to Crown House We are privileged to live in these the departed, the works of the living times. We were part of the most sometimes bear little relation to real- Corner Theunis and Sovereign pivotal moment in the country’s his- ity. The names of only very few people Streets, Bedford Gardens 2007 tory, when we participated in the first are remembered beyond their lives.’ P.O. Box 140 democratic election, led by the most On his tombstone he wanted a powerful liberator this continent has simple stone on which was written Bedfordview 2008 seen and one of few in the world. ‘Mandela’. He added, ‘There will be Tel: (011) 622 4770 His legacy is etched in our hearts life after Mandela’. Fax: (011) 615 6108 and we are richer for it. After honouring his contribution to My daughter and her friends the country, it’s important to remem- email:[email protected] joined fellow South Africans outside ber to keep the dream alive. www.crown.co.za Madiba’s Houghton home, on the To quote songwriter, Leslie Bri- weekend after his death, to celebrate cusse, ‘It’s a new dawn, It’s a new his life and pay their respects. There day, It’s a new life for me, And I’m were a couple of many and momen- feeling good’. PRINTED BY: tous outpouring of camaraderie, at Not yet, but we’ll get there! Tandym Print the time of South Africa’s first demo- Author, Steve Maraboli in ‘Un- cratic election in 1994, was surpassed apologetically You: Reflections on All rights reserved. No part of this by the love expressed across the con- Life and the Human Experience’, says, material may be reproduced, stored tinent and the world at his passing. ‘A new day – be open enough to see in a retrieval system or transmitted At the memorial service – held opportunities, be wise enough to be in any form or by any means, without at the FNB Stadium in Soweto - the grateful and be courageous enough prior permission from the publisher. rain poured. This was seen as a to be happy’. Disclaimer: Crown Publications can- great blessing, since in the African It’s an optimistic time. We at not be held responsible for any errors tradition it meant that Tata was be- Housing in Southern Africa look or omissions whatsoever. ing welcomed into heaven. So many forward to sharing our news, trends poignant words, simple and deep in- and the challenges throughout the trospections of Madiba’s life, volumes coming year. written in an attempt to capture the Best wishes for 2014. AVERAGE CIRCULATION essence of the man, the media frenzy (THIRD QUARTER 2012) covering the 10 day long official Carol Dalglish • Editor 3786 January 2014 News House prices 2014…

Mike van Alphen, National Manager for the Rawson “2014 will, I believe, see house prices continue to rise by over 8% and this should encourage people to be investing Property Group’s bond origination division, now because in today’s market that sort of return is fairly says that the latest Absa house price review has satisfactory.” ■ stimulated speculation as to where the residential property market is heading.

hose who watch these figures closely,” says van Alphen, “have tended to focus on the 9,3% “Tyear-on-year third quarter growth. This is a significant drop from the second quarter growth of 11,4% in the medium house segment, at an average price of R1 172 000. The question is whether house values will decline or not? Van Alphen says that South Africa’s economic growth rate in 2014 is likely to rise by 0,8% to 2,8%, with inflation at 6%. “House price growth,” says van Alphen, “is affected by a range of factors impacting on the consumer’s financial position: low economic growth in the country, low sav- ings, impaired credit records and diminished financial confidence. However, if one looks at the broader picture, then two factors become detectable in most housing economy reviews. "These are that house price increases, except in excep- tionally negative economic conditions, tend at least to keep pace with the national economic growth rate and with the inflation rate. Indeed, in most years the house price growth will be a few percentages ahead of the infla- tion rate, which is one of the reasons why investors find this asset class so satisfactory.” “While no one would call South Africa’s current or pro- jected growth rate stimulatory, it will at least be better than it has been recently – which augers well for house prices.” He concludes that although a small drop in house price growth is possible before the end of this year, the pros- pects, in his opinion, remain reasonably bullish. Good news for home buyers

The prevailing low interest rates ccording to Dr Andrew Golding, CE of the Pam Golding Property are positive signs for a sustained provide a stable environment for group, the decision by the Mon- increase in activity and growth in A property values.” home buyers and owners. etary Policy Committee to leave the repo rate unchanged at an historic “As the market has recently low helps fuel positive sentiment in been characterised by significant the residential property market. demand in the more affordable Bearing in mind that there are a housing sector between R400 000 variety of factors, which impact on and R800 000, this also provides the committee’s decision, it is antici- opportunities for investment with pated that the repo rate will remain sound capital growth potential. In at current levels during 2014. The addition, many sectional title resi- combination of a stable and low in- dential developments offer good terest environment creates a climate value for money, particularly for of certainty which provides further the first time buyers, and a well run impetus for the property market,” complex in a good area can offer an says Golding. excellent return on investment over Historically low interest rates the medium to long term, coupled and pent-up demand for property with the fact that it involves lower maintenance,” he says. ■ January 2014 News Cape Town’s delivery rate In a report released by Cape Town’s Executive Mayor, Patricia De Lille, and Democratic Alliance Shadow Minister of Cooperative Governance and Traditional Affairs, John Steenhuisen, the City has made significant strides in creating a safe, well-run, and inclusive city of opportunity for all its residents.

e Lille revealed there was an increase of 278% in their newly-built units. It transferred 3 308 title deeds the number of toilets provided in informal settle- related to historical housing projects, as well as 404 Dments from 14 591 in 2006 to 40 700 in 2013. The title deeds for home buyers of the City’s rental stock. City has also prioritised a massive allocation of resources Moody’s International’s latest Credit Rating report, to improve living conditions in informal settlements, released in April 2013, reaffirmed the City’s strong credit specifically the provision of electricity, water and sanita- rating of Aa3, the highest rating that a South African tion, refuse removal, area cleaning and rodent control. municipality can obtain from Moody’s. Eskom will connect 20 000 householders in informal The 2012/13 financial year saw the City spending a settlements with electricity at a cost of R190 million to be record R5,78 billion, comprising 92,9% of its budget – the paid by the City. The City of Cape Town has provided over City has also received its eighth consecutive unqualified 37 000 work opportunities created from 228 projects, with audit. The DA-led City of Cape Town remains the best more than R60 million paid out in fortnightly wages. The run municipality in the country, with the best record City has reduced the 1 507 pages of zoning regulations to of providing basic services and financial relief to the 185, in a bid to integrate zoning into a single Cape Town poor. Almost 64% of the City’s budget is spent on the zoning scheme. provision services to the poor and the most extensive The City has provided 3 710 beneficiaries with keys to cross-subsidisation in the country. ■

e-toll’s impact on property Just Property Group CEO that it is looking to extend the usage crease in traffic through residential of Gauteng’s e-tags to toll plazas areas. This led to a decline in property John Roberts, says that throughout South Africa, to prevent values on the tolled routes. In addi- the South African Roads traffic congestion in other urban tion, there was a significant rise in areas. accidents resulting in the diversion of Agency Limited (SANRAL) The knock-on effects of e-tolling traffic due to a combination of higher e-tolling will change the will influence urban migration, devel- traffic volumes and poor mainte- urban landscape. opment and current property prices. nance on the residential routes. Studies conducted in the United Roberts says that it is no secret States have indicated that there that government’s lack of infrastruc- hile the was a significant change in road-use ture funding, or more accurately, the rest of the habits from logistic firms, once tolling proper allocation of funding, has country mechanisms were implemented on resulted in the decline of suburban W major routes. roads that are managed by local has watched and read the saga in Where companies decided that councils. The shift in traffic patterns the media it has tolling would make their businesses resulting from e-tolling is likely to remained largely less viable, alternate routes were result in further degradation of sub- unaffected but used resulting in a massive increase urban road infrastructure. this is set to of traffic on back roads, and ironi- He concludes that the full of extent change over cally, resulting in greater than normal of e-tolling will be revealed in the the medium- congestion. coming months but we can be almost term. SANRAL The study further reported that certain that will impact on Gauteng’s has revealed another knock-on effect was an in- social and economic sectors. ■

January 2014

News Positive outlook for 2014 With 2014 set to be a milestone year for the country as we celebrate 20 years of democracy and head into an election year, there is much to be upbeat about, according to Seeff Chairman, Samuel Seeff.

ollowing five years of inhibited in the high demand areas. The pro- est rate remains at the lowest level growth, activity in the primary tracted low demand in the coastal in more than three decades and will Furban areas has strengthened and second home markets is likely to continue to boost home affordability. notably this year and is now at the continue with buyers still negotiating Sellers who are looking to trade-up healthiest levels since 2009. This year strongly. can also look forward to better selling may well be where we see the first Although there has been some prices and take advantage of favour- signs of real growth since 2007, with marginal easing of the mortgage loan able conditions. potential double-digit price growth criteria, we do not foresee any real Seeff says that pressure on house- in the primary urban areas a real pos- growth in mortgage lending as the hold budgets is likely to grow further sibility, he adds. high levels of household indebted- into next year given the rather un- With turnover up 20% year-on- ness will continue to impede overall inspiring macro-economic outlook. year in the company’s 50 year his- sales volumes. The affordable sector Prospective buyers are therefore tory, primary areas such as in the is likely to be the most robust driver cautioned to allow for a potential in- Cape metropolitan areas have im- of demand. Secure complexes, secure terest rate hike and should buy below proved by almost 25%. Activity in the estates and areas closer to schools, their means rather than stretching it Western Cape, Boland and Wine- major arterials and feeder roads to right now. lands has climbed by 54%. Gauteng business nodes are likely to see the Now, more than ever, they should metropolitan areas have seen turn- biggest demand, says Seeff. cut back on non-essentials and put over of 21% and the greater Sandton While economists are increasingly their spare cash into their bonds area is up by 37%. Followed by two pointing to a potential interest rate wherever possible to create a buffer years of back-to-back 25% growth, hike towards the last quarter of next against cost and interest rate hikes. in the KZN region turnover is up even year, Seeff says that for now the inter- Recovery of the market is likely to further at 31%. be slow and arduous with More buyers at show the primary, affordable houses, multiple offers and middle income sectors and better prices for sellers picking up the bulk of the along with shrinking in- momentum as we have ventories all point to great- seen this year. Although er normalcy in the mar- activity in 2013 has been ket, says Seeff. The banks somewhat better com- continue to make gains in pared to preceding years, reducing distressed stock this sector of the mar- and this in turn should ket is likely to remain un- further stimulate demand der pressure with buyers in the primary sector. On very particular about what the back of this, there is they are looking for, and good reason to be positive how much they are pre- about the outlook for the pared to pay. housing market next year. While the low interest While still too early to rate certainly supports talk about a major recov- demand, the key macro- ery, especially in view of economic indicators, most the wider economic land- notably economic and job scape, we are moving in growth, will continue to the right direction and be drivers of the hous- there is now more balance ing market. The modest in the market. Although economic outlook and price gains on the whole continued uncertainty will remain conservative, will continue to weigh on sellers could look forward the market throughout to shorter selling times 2014, but for now at least, and good offers, provid- we can take derive real ed the pent-up demand encouragement from the persists into next year. improved activity and We may even start seeing look forward to a more double-digit price growth robust 2014. ■ January 2014 News Municipalities owe Eskom R1,4bn

Municipalities across the country owe the national “With 40% of Eskom’s electricity sold to municipalities, these local government structures must take all steps to energy supplier, Eskom, R1,4 billion for electricity, prevent a further exacerbation of South Africa’s power cri- according to Shadow Deputy Minister of Energy, sis. It is ultimately municipalities’ responsibility to ensure the timeous payments by households and businesses in Jacques Smalle. their jurisdictions.” The prevention of load-shedding and rolling blackouts hile consumers are penalised for not paying credi- will require that all relevant role-players play their parts. tors promptly, Mpumalanga municipalities owe Eskom must get its house in order. Municipalities should WEskom a whopping R485 million, followed closely recover all debts owed and citizens must use electricity by Free State municipalities at R466 million, Gauteng’s responsibly. Together, we can save South Africa from an municipalities are also in debt to Eskom for R162 million. electricity crisis. ■ Earlier this year, Eskom issued disconnection notices to municipalities in the Free State, North West, Mpumalanga and Gauteng due to non-payment. To prevent this from happening again, it is imperative that all money owed to Eskom is recovered. Smalle says that he plans to ask National Treasury to mediate between the municipalities and Eskom. He says, “Treasury can be requested to medi- ate financial disputes between organs of state. Treasury should aim to recover all monies owed to Eskom and take appropriate action to prevent municipal debt from accumulating in the future. Last week Eskom announced its first energy supply emergency since 2008 and published a load-shedding schedule, as a ‘precautionary measure’ - an indication of the severity of South Africa’s electricity crisis.

January 2013 News

spending wish-list

The Democratic Alliance parliamentary team, was spent on rental cars, with the biggest spenders being the Ministry of Rural Development and Land Reform R1,3 including Shadow Minister of Transport, Ian Ollis, million, Ministry of Transport R1 million, Arts and Culture Shadow Minister of Economic Development, Sej R820 189, Public Service and Administration R724 954, and the Department of Woman, Children and People with Motau and SCOPA spokesperson Dion George, has Disabilities R683 724. created a list of wasteful government expenditure. National departments spent R196 million on catering and entertainment. During this year’s Budget Vote debates, government departments spent R5,2 million on post-vote ccording to the Auditor General’s Report there was cocktails and promotions. This means that 22 departments R5,87 billion was classified as ‘wasteful and fruit- spent over R5 million on cocktail parties. Aless’ spenditure. Since 2012, Ministers have racked up R1,4 million in The Democratic Alliance team has suggested that gov- credit card spending. The Department of ernment wastage is closer to R10 billion and points out Economic Development has spent R3,3 million on flights that this money could have been used to provide: and accommodation since last year. • 319 primary schools (at R30 million per school); The DA will take a number of steps in Parliament to • or build 273 high schools (at R35 million each); ensure that this wasteful expenditure becomes a thing of the past. • or provide a daily feeding scheme for all school learn- These include: insisting that the Minister of Finance ers throughout the school year, (19,65 million school implement his welcomed belt-tightening measures. The learners at R487 per child per year); cuts must be implemented without further delay. • or deliver 119 633 new fully subsidised houses (at The opposition party has also requested an update from R80 000 per house); the Minister of Public Service and Administration; and has stated that SCOPA needs a stronger, more independent, • or to double the funds for the original Youth Wage Chairperson if it is to properly fulfill its mandate and truly Subsidy (Treasury allocated R5 billion in 2011). become Parliament’s anti-corruption watchdog. Minister of Finance, Pravin Gordhan has warned that the The latest Gross Domestic Product (GDP) growth figure state has to be more disciplined in the way it manages its of 0,7% in the last quarter raises serious concerns about money. He stated: “After seven years of growing budgets the stifled growth in our economy. The DA said that it will and rising revenues there is a degree of fiscal looseness in continue to monitor every rand spent by government. ■ the system and now is the time to tighten up.” He contin- ued, “Money is not the problem ... it is how we spend the money. This has to improve”. The opposition party has itemised a further R231 mil- “Money is not the problem ... lion spending spree on questionable items by the ruling it is how we spend the money. party. In the past two years R16,25 million has been spent on new car purchases by Ministers. Almost R9,49 million This has to improve”.

January 2014 News

Levy payment resolutions

In sectional title schemes, scheme has been established, says le another, says Le Roux, this is usually Roux, it is not likely that the participa- put into a reserve fund as owners levies are the only source of tion quotas will change because the are not entitled to any refunds. The income, which owners are consent of all the owners negatively levy funds are not seen as being of affected must first be obtained. a capital nature, so they cannot be obliged to pay. However, The trustees of the scheme can redistributed to the owners of the trustees need to keep in mind decide whether the levies need to scheme. If this provision was not in that owners do not become be paid in one lump sum, but they the rules of the scheme, he says, the usually, to make it easier on the own- Receiver of Revenue would not see liable for levy payments when ers, split the payments into monthly the levy payments as tax exempt. the body corporate approves instalments, which are due on the “The most important aspect of first day of every month. financial stability in any sectional title the budget or decides that it Once the levies have been estab- scheme is ensuring that the monthly needs to collect money. lished and a resolution passed to cash flow is positive and that the this effect, the owners then become levy collection process is efficient. legally obligated to pay them. This is Whether this is done by a managing resolution has to be passed by usually the sectional title scheme’s agent or the trustees themselves, the the trustees stating the amount only source of income and if there is principles are the same, regular pay- of the levy that has to be paid, A another source of income this usually ments are needed and those who do says Johann le Roux, Executive Direc- comes with tax implications whereas not pay their levies are putting their tor of Propell. the levies are not taxable. scheme at risk,” he says. This resolution is usually passed If, at the end of the financial year, For further information please after the Annual General Meeting, there is a profit for some reason or email [email protected] ■ when the budget has been approved and participation quota or the rule determines the way the levies are billed, he said. The participation quota of a sec- tion is worked out by dividing the 436 title deeds issued floor area of the section by the s part of the Phillipi East dential Integrated Serviced Land total floor area of the sections in Phase Five Housing project, Project and entails the development the scheme. This is the fairest way the City of Cape Town has is- of high density housing on approxi- of working out the amount each A sued more than 436 householders mately seven hectares of land. The owner pays, he said. Apart from with the title deeds to their homes. development is well-located on the levy amounts, this participation This, says the city, shows Cape both sides of the Mitchells Plain and quota also establishes the value of Town’s continued commitment to Khayelitsha railway line, abutting the owner’s vote and the size of the providing housing opportunities the Stock Road Station. owner’s undivided share in the com- in areas that were previously mar- Bulk services were installed in mon property. ginalised. The historic project is 1999. According to Mayoral Commit- The exclusive use areas in the nearing completion and Eskom has tee member, Tandeka Gqada, the scheme do not have participation undertaken the electrification of an City hopes to lodge the registration quotas attached to them but the additional 31 units. of the rest of the title deeds, for the owner who has the right of use, The Greater Philippi East Project two bedroom 40m² homes, early however, will have to cover all costs forms part of what was the presi- in 2014. ■ attributable to those areas. Once the January 2014 News Home owners – aim to improve property values

John Loos, FNB Household and Property Sector Strategist says that when it comes to protecting the value of the security backing a residential mortgage loan, the levels of home maintenance and value-adding upgrades become important, from a banking sector point of view. t the time of the 2008/9 reces- aside, things have arguably improved sion and in the aftermath, more significantly. Athe low levels of mainte- Home owners in the lower to mid- nance on distressed properties dle income group have maintained becAme problematic for the bank- and improved properties from 27% in ing sector, as these meant that, in 2007/8 to 45% in the third quarter of improving but still maintaining many cases the homes had not held 2013. Owners who have not improved homes’ and ‘Maintaining property the value required to fully back the their properties but maintained them and making some improvements’. value of the mortgage loan. improved from 20% to 30% in 2008 The noticeable increase in lev- However, FNB’s 3rd Quarter 2013 to 39% in the third quarter of 2013. els of home maintenance and Estate Agents Survey indicates Home owners who do basic main- improvements may have had an improvement in the levels of home tenance on their properties will lose impact on the growth rate in retail maintenance. value over time. During the global sales for hardware, paint and glass The agents have perceived a economic crisis this figure escalated products. StatsSA building reflects gradual increase in the levels of dramatically but in the third quarter the estate agent survey showed a home maintenance since 2009, of 2013 it has receded to 5%. Only 2% significant increase in additions with the pace of improvement of home owners allow their homes to and alterations recorded by major picking up in 2013. From 2004, the become rundown. municipalities. In the third quarter survey respondents reported a long The combined result of the agent of 2013, the year-on-year growth decline in the percentage of home- survey of investment levels in homes in residential additions and al- owners investing in their properties is rolled up into the FNB Home Invest- terations completed was 23,56%. with a view to adding value. ment Confidence Indicator, repre- Plans passed were mildly positive In 2004, agents reported 43% of sented on a scale of -1 to +3. The in- at 4,61%. home owners improved their prop- dicator has shown a gradual increase The overwhelming majority, erties; in the first quarter of 2013 it from a low of 1.23 reached in the first 72%, improve their properties for was only 3%, and this has improved quarter of 2009, to 1.5 by the third their own use, 19% as they can’t to 9% in the third quarter survey. quarter of 2013, reflecting mostly afford to move and 3,5% as specu- But value-adding upgrades improvements in the categories ‘Not lative investments. ■ GDP report - slow economic growth The 3rd Quarter Gross Domestic Property Sector Strategist, John Loos. the Household Debt-to-Disposable There has been a gradual slowdown Income ratio will remain high at 75%. Product growth rate continues since the 3,8% peak in early 2011. While household sector credit to make it tough for lower This can largely be explained by the growth has slowed into single digits wearing off of the massive monetary (7,8% year-on-year in September), income households to improve and fiscal stimuli that were applied nominal disposable income growth their credit health and reduce across the world, as well as domesti- has merely tracked it lower. The latest indebtedness. cally, back around 2008/9, in order wage bill figure looks like ‘more of the to rescue economies from recession. same’ for the time being. For the household/consumer sec- For the housing market, these he annualised quarter-on- tor, the slow pace of economic growth numbers are unlikely to lift household quarter growth rate of 0,7% has meant employee salary growth spending meaningfully in the near Twas disappointing although rate is down from 9,8% in the second term. Loos concludes, “However, we not surprising, given severe strike quarter to 8,7% in the third quarter do not believe that average house disruptions in sectors such as ve- according to StatsSA, compared to prices risk falling at present. This is hicle manufacturing. But this slower 13,6% in the first quarter of 2010. due to residential supply constraints, growth is not an isolated incident, This rate of wage bill growth which have been assisted by the low according to FNB’s Household and does little to change our view that levels of building activity,” says Loos. ■ January 2014 News eThekwini Centre of Expertise eThekwini Water and Sanitation (EWS), in partnership with the Netherlands has launched an initiative to find innovative solutions to the country’s water and sanitation needs.

inancially supported by the Dutch knowledge Dutch government, the Centre and technology Fof Expertise (CoE) - launched in where it is needed. Durban in mid December - is a collab- The Netherlands oration between EWS and a number has the best qual- of Dutch partners. The Dutch Ambas- ity drinking water sador Andre Haspels says, “Living and in the world and working with water is part and parcel is internationally of the Dutch national identity. We are renowned for its knowledge and have already been completed. These known for our technology knowledge expertise in water technology, puri- cover testing different trenchless and expertise. fication and the installation of water technologies; carbon footprint as- “It is an honour to be working with pipe networks. We are thankful they sessment; comparative investiga- EWS as our host partner because are happy to share this knowledge tion into the use of different pipe they are seen as the leaders in water and experience. materials; and development of a projects in South Africa. Smaller mu- “The team will assist to determine course to improve the operation and nicipalities look to EWS for informa- the needs of various metros and maintenance of treatments plants. tion. The core function is the transfer water organisations and then match The projects aim to assist metros to of skills, which enable the use of our them with the available technology.” move forward using new technologies products. It is important that the The centre has already begun en- rather than sticking with the same ‘Centre of Expertise’ is a success,” gaging with other South African met- old systems. says Haspels. ros and anticipates a broad campaign “By spreading the pilot studies Neil Macleod, Head of EWS says, initiated throughout the country. across all four metros, we avoid “The Centre aims to improve the Following the Dutch government’s duplication among the municipali- South African water supply and commitment and seed funding in the ties and the results can be shared,” sanitation sector by introducing past three years, five pilot projects says Macleod. ■ R1bn for insurance claims The recent hail storms that destroyed roofs and residential properties left many Gauteng developers counting the cost.

on South Africa, insurance if last year’s situation is anything to broker and risk management go by. Hail damage is becoming a far Aconsultant, says that insur- more regular occurrence and devel- ers and consumers have barely re- opers need to make sure that their covered from last year’s damage, insurance policies do actually cover Mandy Barrett. when well over 25 000 claims were hail damage and freakish weather filed and damage cost in excess of patterns, which seem set to stay,” ing a proper needs analysis, mitigat- R1billion. says Barrett. ing risk, and in turn managing the While it’s still too early to quantify Insurer loss ratios have already premium costs.” She suggests that the extent of the storm damage in been hard hit and the market saw pre- developers seek professional advice November 2013, Mandy Barrett of mium increases of up to 15% across and cover. Talk to a broker to ensure Aon South Africa expects it will be the industry, in the second half of this the policy covers all eventualities significant. year. Underwriters will be reviewing and specified items and that an ad- Joburg’s East and West Rand 2014 rates. equate amount of cover is in place. suburbs bore the brunt of the re- “Never make the assumption that Under-insurance is possibly the cent storms, roofs of buildings were your insurance policy covers all per- biggest reason for partial pay-out if damaged, vehicles, windscreens ils, including hail damage – it could not outright rejection of claims. The and solar panels were destroyed. well be that your policy operates key here is to insure the replacement “We expect the insurance industry on a ‘named peril’ basis and unless value of an item. The Insurance to be inundated with claims again you have specified hail, it won’t be industry figures indicates almost and repairs are likely to take some covered. In this regard, a professional 40% of insurance policyholders are weeks, if not months, to complete - broker plays an invaluable role in do- under-insured. ■

January 2014 Housing

‘More than 25 000 families will have access to almost R5 billion in property and about R2 billion in equity. Lenders will have generated R3 billion in bonds, and about R238 million in annual income will flow through the area.’

The long road to

A long line of developers, politicians, mayors, media and The name, Savanna City, seems somewhat contradictory, as savan- the Premier all trekked on the road to Walkerville for the nah conjours up images of vast flat long-awaited sod turning event and launch of Midvaal’s plains, wild life, birds, bushveldt and peaceful retreats – while, city sug- residential lifestyle development, Savanna City. The R24 gests a cosmopolitan urban lifestyle, bustling streets, sidewalk cafes and billion project is being developed by Basil Read and Old tall buildings. Mutual’s Housing Impact Fund of South Africa, provincial and South African freedom fighter, story teller, singer and author, Gcina national housing department as well as Midvaal, Sedibeng Hlophe entertained guests with a and Emfuleni municipalities. traditional African story of a great ox who came back to life after a long arduous journey, highlighting the similarities with the stop start, dead- he proposed development, setting, nothing could stop Gauteng in-the-water, Savannah City project which required collaboration Premier, Nomvula Mokonyane from has finally been resuscitated. Tbetween political parties in wearing stylish high heels more The R24 billion mega-integrated the region is a win-win situation for suited to Sandton Square at the sod lifestyle development south of Jo- all and dignitaries, MECs, politicians turning event and shoveling earth. hannesburg is situated near Orange and celebrities were on hand to make She walked through an open field in Farm, 35km outside Johannesburg. the event a memorable one. shoes more suited to Sandton Square The 1462 ha Savanna City Develop- While journalists and photog- than shoveling earth. And, she smiled ment will provide 18 399 integrated, raphers were equipped for a rural while doing it. mixed income housing units, schools, January 2014 Savanna…

clinics, churches and retail and com- educational facilities, 32 institutional community, a neighbourhood and mercial sites. Almost 30% of the sites for clinics, students, crèches, creating a home. development will consist of fully churches etc, nine retail and com- Adelaide Steedley of the Centre subsidised housing. mercial nodes. for Affordable Housing Finance in The aim is to place suburban home Planning approval was received in Africa, on behalf of FinMark, shared a ownership in the hands of many August 2013 and construction com- few key points about the importance South Africans. The development is menced November 2013, and will be of investing in affordable housing. funded by HIFSA, a R9 billion fund cre- completed over 10 years. Over half the properties on the deeds ated by Old Mutual, DBSA, GEPF and Savanna City will assist in respond- registry are valued at less than R500 Eskom, as well as Basil Read. Further ing to the urbanisation facing the 000, which serves 88% of the South funding will be provided by National broader Gauteng city region, and African population. Indeed, at that Government and the Gauteng Depart- will stimulate further economic de- scale, says Steedley, it is the housing ment of Human Settlements. velopment in southern Gauteng as market in South Africa. She cited as The development will have a total opposed to the north where invest- an example, Cosmo City, Gauteng’s economic impact of R28,4 billion ment has traditionally been focused. first pilot integrated human settle- during construction and R12,7 billion What makes Savanna City special ment that became a blue print for post construction. Total employment is that it puts community at the heart others in the country. According to opportunities include: 54 900 people of the development. Families are Steedley, the following opportunities during construction and 12 700 jobs encouraged to meet, play and nur- exist within affordable markets: post construction. The development ture their children in parks, schools, • Faster growth rates – often driven and housing breakdown includes: 5 churches and retail/entertainment by new registrations, affordable 517 fully subsidised units, 2 635 rental spaces. The concept is about creat- areas reflect greater growth in apartments, 5 518 FLISP/Gap market ing sustainable legacies and putting transactions, lending levels and units, 4 729 fully bonded units 16 down ‘roots’ – becoming part of a Continued on page 14 ... January 2014 Housing

‘The R24 billion mega-integrated lifestyle development south of Johannesburg is situated near Orange Farm, 35km outside Johannesburg. The 1 462 ha Savanna City Development will provide 18 399 integrated, mixed income housing’.

realised. She says that the Centre for home owner, and creates another Affordable Housing Finance found lending opportunity for the bank. these projects to be expanding the These assets expand the banks’ housing continuum in three ways: ability to grow as well. • Adding new housing options – in She explains that if Savanna City addition to 12 schools, dozens contributes to the southern Gauteng of community sites and facili- region what Cosmo City did to the ties, parks and retail, Cosmo City north, perhaps 25 000 families will provided 11 000 new housing have access to almost R5 billion in options, currently housing 15 000 property, about R2 billion in equity. households, of which 45% are Lenders will have generated R3 bil- worth under R250 000, 40% are lion in bonds, and about R238 million between and just under 20% are in annual income will flow through over R500 000 – 70% of all sales Des Hughes. the area. in 2012 were under R500 000, an As developers and their investor equity gains than their metro hosts or almost direct reflection of where partners such as Old Mutual’s Hous- the country; the South African market sits. As ing Impact Fund of South Africa, families’ economic security grows, • Less risk – the combination of recognise the strengths inherent in houses are resold to new families lower default rates, high equity affordable markets – growth, stabil- moving up. Churn in Cosmo City rates and higher growth equity, ity and leverage – they are expanding has averaged over 10% per year faster growth and less change in Gauteng’s economy in tangible ways. in the past five years, indicating property values make investments Housing is simply the most ef- mobility, options and demand. For in affordable housing much less ficient means of expanding one’s each new house built, housing op- risky than the overall market; economy – all the decisions are made tions are expanded threefold – for locally, all the beneficiation is cre- • Lending lag – while these areas the new homebuyer, for the resale ated locally and all assets stay in the are growing, lending lags that buyer and for the shack dweller. growth. Overall, lending and sales area. From the parcel of land to the have picked up since 2008, but in • Building wealth for homeowners materials bought to build the house, most affordable areas, lending has – for homeowners, Cosmo City to the interest paid to the bank and not rebounded to trend existing has offered R1,6 billion in equity, rates paid to the local government, growth levels. Bonded transac- for the local economy 22 000 new and eventually the equity that the tions continue to flatline. Housing jobs were added to the tax base. homeowner can invest in education, values are stable but continue to The 2011 average census income a business, or the next bigger house outpace overall markets, despite in 2011 was R9 000 per month, - all of this will generate economic the lag in prices, this disconnect that’s R2,4 billion income per year growth for years to come. constrains more growth; flowing through the area; incomes To maintain this growth, home- leverage that equity to expand owners must continue to find well- • Sensitivity to credit access – credit businesses, extend education and situated housing options accessible access constrains demand in af- grow the economy. to them that are priced right, well fordable markets more than up- integrated into the area and the re- per markets, while upper markets • Building assets for lenders – in gion, and in this way, build value over are more impacted by external 2012, over 1 000 sales, of which time. Geographically and product- economic factors outside of South almost 95% per bonded, totalled wise investments like Savanna City Africa. Which risk is easier to under- R213 million. For the past two not only expand the housing market write? years lending rates have outpaced the metro - in 2012, the bonded but expand real asset wealth in South Steedley says that any one of these transaction rate was 88% outpac- Africa. factors would make an area or market ing Joburg’s 70%, with over 1 600 Basil Read and HIFSA are currently compelling. In combination, it’s a transactions on average every year developing over 100 000 affordable great time for citizens to be investing since 2007; the number of bonds housing units in projects throughout in expanded housing opportunities. doubled from 3 200 to 6 400 in five South Africa. She credits Basil Read for being a years. This means that including The event concluded with a tree forerunner and champion of afford- the construction and develop- planting ceremony by Premier, Nom- able housing opportunities in South ment phases, investors have been vula Mokonyane, The MEC, Ntombi Africa. able to lend perhaps three times Mekgwe, The Executive Mayor of Sedi- Cosmo City stands as an example on the same piece of land; each beng, Simon Mofokeng, the Executive of what affordable housing can look time the house sells in the future, Mayor of Midvaal, Bongani Baloyi and like and how its development can be that generates asset wealth for the Des Hughes from Basil Read. ■ January 2014

Housing The William High density housing

Balwin Properties, a new high density residential development north of Johannesburg will provide housing opportunities in the estates 110 residential blocks, with housing eight apartments in each.

he development comprises four storey buildings, which include: two 3-bedroom ground floor units, Ttwo 2-bedroom on the first and second floors, and three 1-bedroom units on the top floor. The units vary in size from the smallest at 40m² to 110m² for the largest apartments. According to Rodney Gray, Managing Director of Balwin Properties, “Precast concrete makes this type of develop- ment viable.” Prestressed hollow-core slabs and concrete staircases are some of the elements being used to construct The William. Other products include bricks, paving blocks, retaining wall blocks, L beams and lintels. Gray says, “We operate in a very competitive environ- ment and from the moment we move on site the clock starts ticking. It is imperative that we maintain our pro- gramme to ensure we don’t over-run on budget and ensure the financial viability of the project.” He goes on to explain that using precast concrete ele- ments assists this process in several ways, but maintaining the programme and ensuring quality are key factors. “Take precast hollow-core flooring slabs by way of example; they offer fantastic quality and high standards of finish and far outweigh in-situ or beam-and-block flooring, which take weeks to complete.” “Slabs, by contrast, require only a matter of hours to install. Thereafter, grouting and masonry work can begin almost immediately. Moreover, slabs come with a smooth soffit, which can be painted.” Wally Armstrong, Executive Director of the Concrete Manufacturers Association, says that three association members supplied the concrete products. Echo Prestress supplied the hollow-core slabs at The William with lengths varying in size from 3,5m to 6m and 120mm x 150mm and There are substantial savings in time and cost using pre- 170mm deep. cast concrete staircases - supplied by Specialist Precast The depths were specified by the structural engineers, Erections. The concrete block pavers: 60mm interlocking based on loading requirements. A conventional precast block and a 60mm bevelled block supplied by Cast Indus- concrete brick from Savanna Brick and Paving has been tries, are being used for the paths and decorative road used. Gray says, “Savanna maintains strict quality controls edgings and the interlockers deployed on the roadways, and delivers an extremely reliable product. We work to a added Gray. minimum strength rating of 10MPa on our developments The William will roll out in six phases. Construction and are averaging 12/13MPa. began in May 2012 and the entire development is due What we like, in particular, is that the Savanna bricks for completion at the end of 2015. The professional team are consistent in size. This means they are easy to lay and includes: Cimato Moroldo Architects Inc.; Kantey and plaster. Some of the other brick suppliers we have used Templer, civil and structural engineers; Topack Electri- in the past have given us a product that varies in size and cal (internal electrical); and Rawlins Wales and Partners strength ratings.” (external electrical). ■

January 2014 Housing Student res for africa

JH Residential, a subsidiary of Excellerate Property Services, is expanding into the African continent says Managing Director, Thea Bezuidenhout.

he residential management manages a portfolio comprising service company says that it approximately 450 apartments with Thas recently been awarded 2 000 beds for the StudentDigz port- a number of new contracts on the folio in Braamfontein, Johannesburg. continent. As there is a huge demand Bezuidenhout says, “A number of for student accommodation, JHI will these buildings have been renovated manage a brand new cluster devel- and refurbished, with finishes and fit- opment, Emona Student Residence tings. The feedback from the students in Windhoek. has been very positive.” “In the first phase of this develop- With inner city nodes undergoing ment, we will be managing 1 152 beds, revitalisation, demand for accom- which will increase to a total of 3 000 modation is at a premium with Wits beds in additional phases. Owners, and the University of Johannesburg Hanganeni Emona, a consortium among the institutions desperate to consisting of Hanganeni Investment provide accommodation to learners. Holdings and CSV Construction Na- The company manages two city mibia plan to expand and provide buildings on behalf of Leungo Invest- student accommodation in other ments, which provides 160 rental African countries. opportunities, as well as rental stock “With a national student popula- in Parklands, Cape Town, Fleurhof in tion of approximately 13 000, the Roodepoort, and a number of others. University of Namibia has a demand “The key factor is to provide a for accommodation, which offers diverse range of services, which further potential for the growth of our enables clients to select an end to business. We see this as a stepping end solution or a specific package. stone to significantly increasing our Turnkey solutions include all aspects presence in Africa,” says Bezuiden- of residential property management, hout. The company is currently in ne- including facilities, maintenance and gotiations to provide its management operational management, renova- services for student accommodation tions and people management.” in Zambia and Botswana.” Social housing management con- Bezuidenhout says that managing tracts are in the pipeline according to and understanding student needs is a Bezuidenhout. The company aims to specialised business. “We understand partner with Toproot, an accredited the specific requirements in the man- Social Housing Registration Authority agement of student accommodation provider. The social housing provid- and place a high priority on security er’s portfolio consists of 30 inner city and providing added value in regard buildings, in Johannesburg; five of to social requirements. We also man- them will provide 200 apartments for age sub-contractors – particularly in the affordable sector mid year, 2014. the case of properties that are under- “JHI Residential has set its sights going renovation and the installation on providing body corporate manage- of additional facilities. This includes ment and recently secured contracts canteens, wireless connectivity and in Eerste Rivier and Belhar, in Cape access control. Town; Durban’s CBD and Musgrave JHI Residential has proven its ca- areas, and a mixed-use building in pabilities in the market and already Pretoria CBD.” ■ Emona Student Residence Emona Student

January 2014 Housing Making it happen!

With over 900 000 people seeking affordable and social housing annually and only around 25 000 new units becoming available each year, the market for affordable housing shows immense potential for investors.

ccording to Manie Annandale, and work, at an affordable rate for Head of Nedbank Affordable lower income groups.” AHousing Development Finance, Widely known as the ‘green bank’, investments in affordable and social Nedbank, has been true to its slogan housing in South Africa are in line about making things happen, Annan- with this trend. dale says that the bank is playing a Annandale notes that affordable leading role in funding affordable and Manie Annandale. and social housing present less of social housing developers. Nedbank an investment risk due to the huge has now partnered with 25 reputable increasing the density in the devel- demand for suitable housing close and established developers across opment. Or it may emerge that the to facilities in metro areas. the country. “We have seen that not model should move from one based “With up to 70% of South Africa’s only are the developers thriving on on sales to a rental model. It is also population expected to be living in the back of huge demand, the ben- important for the housing develop- urban areas by 2030, the demand for eficiaries are enjoying better quality ment to meet local needs. For ex- housing is surging,” says Annandale. of life, thanks to developments offer- ample, will residents be prepared to He goes on to explain, “Developers ing sound housing closer to schools, live in high density units or not? Can are seldom able to produce housing work and other facilities.” they use stairs? Do they need garages priced at under R300 000 per unit, “Over years, financing these devel- or carports?” These are merely some and since the Finance-Linked Indi- opments, we have learned that the of the insights that need to be taken vidual Subsidy Programme (FLISP) key to funding affordable housing de- into consideration when developing only subsidises properties priced velopments is flexibility. The finance affordable and social housing.” under R300 000, we have seen a model has to match conditions on Annandale concludes that Ned- shortage of affordable stock. While the ground, and must be adaptable bank’s partnership with reputable the margins may not be high in this in line with changing conditions. If developers and investors will be a market, demand is massive. There is the developer discovers, for example, catalyst for affordable and social also huge demand for rental housing that there is far greater demand than housing developments in key nodes situated centrally, close to amenities anticipated, we may have to consider across the country. ■

January 2014

Bricks & Paving Building brick-by brick is growing in the affordable low gains, the focus will be on consolida- Despite civil unrest, Marikana cost housing sector. The product is tion and reinvestment in business and the constrained macro- well placed to help meet the demand during 2014. Capital has been com- for better quality low-cost housing mitted to a number of planned economic fundamentals, the while supporting the government’s projects to upgrade facilities, drive building industry is bouncing objective to create sustainable hu- efficiencies and introduce robotics man settlements. This large, single to automate brick handling systems. back from its low base. skin face brick has been a runaway “Corobrik will also invest in further success in this segment,” says Meyer. research to understand the com- rospects are improving and He says that there is nothing in parative value of our clay products buoyed by government spend- the market that can compete with its through our involvement with the ing on infrastructure, which combination of aesthetic appeal and Clay Brick Association. We will be P good value. “We have dedicated more involved with the full Lifecycle As- raises expectations that 2014 will be a good year, says Managing capacity for its manufacture and are sessment commissioned with the Director of Corobrik, Dirk moving to near full employment of University of Pretoria,” Meyer said. Meyer. our manufacturing resources.” Corobrik is eager to continue “Architects are report- Corobrik’s recently launched PB converting more factories from coal- edly busier and qualita- Paver has also proved to be an enor- fired to gas-fired operations – in ad- tive and quantitative in- mous success, with the Springs fac- dition to its more recent Lawley and dicators show a general tory operating at full capacity, to meet Driefontein factory conversions - and recovery in the building demand for the clay paver. “It has all there are several other viable options sector. The number of the physical attributes of the PA Paver for conversion. The problem is avail- residential and commer- but is cheaper and is proving to be a ability of gas. cial building plans being popular alternative in the price sensi- “We have engaged Sasol on a num- passed appears to be on tive concrete paver segment.” ber of occasions to request additional a gradual upward trend, With the new PB paver and Coro- gas supplies but it appears it is using with government spending Jem bricks added to Corobrik’s all the gas for its own operations. This on low cost and new housing considerable basket of products, is a setback, but it has not slowed our picking up.” Corobrik assesses that its product determination to reduce our carbon Demand for Corobrik’s products range will enable the company to footprint.” has increased, spurred by infrastruc- compete and meet the diverse needs Two more of Corobrik’s 15 fac- tural developments. “These are all of the different markets. tories were awarded ISO 9001:2008 positive factors, which bode well for Meyer points out that after three quality management systems ac- creditation in 2013. This brings Corobrik in 2014,” says Meyer. Coro- years of intensive product develop- the total number to eight. brik’s CoroJem ment and impressive market share Bricks & Paving -brick It is expected that five more factories will re- ceive accreditation in 2014, with the balance reaching this standard in early 2015. The roll-out to attain SANS 14 001 Envi- ronmental Management System accredita- tion at all operations continues. To date, five factories have reached this goal, with a further two expected next year. The company has reaped significant benefits from the employee stock owner- ship plan (ESOP) it introduced in 2008. A total of 26% of the business is now owned by employees. “We have been told it is one of the more successful ESOP schemes around,” says Meyer. “Most notable has been the change in attitude and behaviour of staff towards the business – from shop floor to director level – which is a huge advantage for internal productivity and growth.” Meyer believes that lack of artisan train- ing is a national issue, which needs serious attention. “Everyone thinks it is someone else’s responsibility, but we need to train more artisans.” The company offers internships at all of its factories for members of the local community, as well as traditional artisan apprenticeships for fitters, turners, mill- wrights and electricians. “At a product level we operate two CETA accredited Building Training Schools to train bricklayers and paver layers.” ■

January 2014 Cement & Concrete Concrete performance Since there are no set standards when it comes to how long, developed an answer to the segre- gation challenge. Intensive mixers how intensely and at what speed concrete needs to be mixed, separate the batch transportation gut feeling plays a large role in determining batch readiness, and mixing processes by tilting the mixing pan to an optimised angle how do you know that your mixer is performing at its optimum, for concrete’s viscosity, and enables giving you genuinely consistent and homogenous results? the pan to rotate independently of the central rotating agitator. This completely eliminates the risk of a ccording to undetected, affecting the concrete’s velocity gradient within the mixer, Eirich, the final properties. Trough mixers pres- creating batch homogeneity without global lead- ent similar problems, and further the threat of segregation. A Variable speed mixing also allows er in industrial testing reveals that the bigger the mixing technol- mixer, the greater the level of segrega- for slow-fast-slow pan and agitator ogy and repre- tion due to larger velocity gradients rotation. This significantly reduces sented locally between the outer and inner zones mixing times, saving energy and re- by process within the mixer. ducing mixer wear, while achieving engineering Particle segregation, where par- true homogeneity. company, ticle distribution varies throughout “Together, variable speed mixing Birkenmayer, a mixture depending on its size, is and the intensive mixing process mixing pro- known to cause concrete to shrink or help concrete manufacturers achieve cesses cannot crack, even microscopically, during optimal concrete strength and homo- be verified sci- curing. Many manufacturers com- geneity, without requiring additional entifically, and are pensate by increasing the amount of admixtures, high cement proportions subjective. cement or admixture per batch which, or large volumes of water,” says Louis There are a lot of factors although effective in helping the Eksteen, Business Development Man- to consider, such as cement types, batch fall within specification, can in- ager at Birkenmayer. mixing, water, admixtures and other crease the cost per batch significantly. “Tests have also shown that Eirich additives such as fibres, and each of For the past 30 years, many con- intensive mixers, when compared to these has specific mixing require- crete producers have developed their planetary mixers, are able to better ments. own guidelines in terms of how long blend pigments for coloured pavers, Formal studies have suggested each batch should spend in a mixer, which means manufacturers can that a pan mixer (whereby mix trans- ranging anywhere between 30 sec- reduce the pigment ratio.” portation and mixing are achieved onds to almost three minutes. While According to Eksteen, the re- with a central rotating agitator) dis- this might make each batch appear sult is an exceptionally low reject tributes concrete batches of between similarly homogenous, and helps rate, which makes the Eirich range 500 and 750 litres within 70 seconds, each batch fall within specification, ideal for standard and high but after 30 seconds in the mixer, it doesn’t account for segregation: -end concrete technology, ranging particle segregation is detected in The longer you mix, the greater the from roof tile concrete, face con- medium and coarse aggregates. segregation. crete, concrete for railroad sleepers, This suggests that while the batch With its range of intensive mixers foamed concrete, fibre-reinforced appears to be thoroughly mixed, a that has become indispensable in concrete, high-strength concrete and level of particle segregation goes concrete manufacturing Eirich has polymer concrete.

January 2014

Cement & Concrete KZN opts for AfriSam

Giant cement and aggregate producer, AfriSam, has supplied the Newcastle region with aggregate and readymix products for more than 50 years.

friSam’s Newcastle Construction Materials operation in the north of KwaZulu-Natal has been involved Ain the resurfacing of the N11; supplying readymix concrete for the construction of the Amajuba, Newcastle and Victoria Mall and the Mittal Steel effluent plant. The Newcastle team has earned a number of awards in- cluding: Best Aggregate Operation in 2008 and 2011; runner up for Best Aggregate Operation in 2012; Best Performing Hope in Christ Children’s Home at Ingogo, and developing Operation over a five year period for 2011 and 2012; three local community gardens. ASPASA (Aggregate and Sand Producers Association of We are currently involved in the rebuilding of the Southern Africa) Environmental Showplace Awards; nine Mzamo High School at Blaaubosch and we often provide ASPASA SHE Showplace Awards and the highest ASPASA educational tours at our operation for primary and high SHE score in South Africa for 2011 and 2012. school learners. Running an operation in a rural area has According to Kobus Meyer, Works Manager at AfriSam’s special challenges, so it is critical to have a competent Newcastle operation, the company is equally passionate and cohesive team. about taking care of the environment and the communities Our plant efficiency performance over the last couple within which it operates. of years confirms the value of our dedicated team. This is “We have been involved in a number of community testimony to the fact that the people are happy in their upliftment projects, including funding for the training of work environment and underlines the fact that AfriSam is local emerging farmers; assisting with the rebuilding of the an employer of choice,” says Meyer. ■ Growing demand for Flowcrete

Global flooring specialist ith the launch of its new fa- The company also has a head of- cilities, Flowcrete South Af- fice and manufacturing centre in Flowcrete has expanded its rica will be able to provide a Durban, with another office and W manufacturing centre in Johan- South African facilities to cope better, faster service to an area of the nesburg. Combined South Africa with increasing demand for its country that’s undergoing remark- able growth in its construction sector. operations are capable of provid- products in the Western Cape. With 88 tons more products avail- ing high quality flooring solutions able to the end user than before to the whole of Africa. Craig Blitenthall, Managing Flowcrete SA forms part of the Director of Flowcrete South Flowcrete Group, a world leader Africa, says, “The opening of in the manufacture of seamless industrial and commercial flooring our new facilities is an exciting with international manufacturing development and will have a facilities in Europe, America, Asia positive impact on Flowcrete and Africa. It supplies world-class South Africa’s business in the seamless flooring solutions to Western Cape. “The expansion transform environments across the signifies a major investment globe including; decorative seam- in the Cape Town office, which less resins, waterproof car park consists of a small sales team.” deck coating systems, seamless The new site provides a resin terrazzo, durable antimicro- logistical advantage to the op- bial flooring, corrosion protection, eration of the warehouse and self levelling underlayments, un- sales office as it is located in derfloor heating and now under- the Airport Industrial hub close floor acoustic insulation. to the Cape Town International Flowcrete continues to use its Airport. This makes it more global expertise to introduce envi- convenient for clients to travel ronmentally friendly, hygienic and to and from the facilities and aesthetically attractive floors to will improve the delivery time create a better and more sustain- for flooring solutions. able world. ■

January 2014 Doors, Windows, Floors & Walls

Luxury Vinyl Flooring

Vinyl flooring is making a comeback as a tough, durable and attractive flooring option, with detailed embossed grains resembling wood.

ature’s Floor Luxury Vinyl Products Specifications: is changing the game com- pletely. With 7mm thick plank Nature’s Floor WPC Vinyl Flooring; N Surface: Deep Embossed; Plank Di- and a ‘Fall Down Click’ system on all four sides, all the stumbling blocks mensions: 1220x186x7mm; Box: 8 that were previously associated with Pieces per carton/1.81536m²; Un- vinyl flooring have been eliminated. der Surface: 1mm Black EVA Foam Nature’s Floor Luxury Vinyl is Underlay; Wear Surface: 1.5mm thicker and less flexible, which means LVT with 0.5mm wear layer; Instal- that the planks will not form to the lation: Fall Down Click; Colours: sub-floor as easily as thinner ones Sawn Oak White, Sawn Oka Grey, (in this way this prevent an uneven, Markham Oak Dark, Markham Oak wavy look). Light, Rough Hewn Hickory and Preparation is similar to that of Rough Hickory. laminates - typically the sub-floor will need to be levelled with a self- versatile and has the added advan- levelling screed only in out-of-spec tage of being waterproof. Kitchens areas. This allows for savings in mate- and bathrooms can now have a rial and labour and also reduces the ‘wood-effect’ without the obvious installation period. drawbacks. The plank surface of Nature’s Nature’s Floor vinyl has a built-in Floors is super embossed, resem- rubber underlay to improve sound bling the look and feel of traditional dampening and assist with locking in timber floors, without the expense the click system. This aids in a ‘softer’ and maintenance associated with feel to the floor, adding to its comfort. wooden floors. With a range of six Nature’s Floor Luxury Vinyl is avail- colours, Nature’s Floor Luxury Vinyl able from Floors Direct, a leader in will suit almost any colour scheme wood, laminated and vinyl flooring. and décor. Rated for both residential For further information contact and commercial use, the product is Floors Direct on 011 475 8000. ■ January 2014 Plumbing, Kitchens & Bathrooms off-campus - student accommodation Noswal Hall is the latest well-located city building to undergo a R100 million upgrade by Zenprop. Situated in Braamfontein, the building borders the University of Witwatersrand campus.

he current upgrade will provide units depend on requirements, as off-campus accommodation each student has his or her own Tfor 419 students and Wits has kitchen cupboard. already earmarked and allocated the The Johannesburg-based kitchen residential apartments to students. specialist offers developers, builders With 600 students on the list for var- and contractors a selection of steel sity accommodation, the project has kitchen cabinets, mini-kitchen units are ideal when space is limited. been oversubscribed by 50%. complete with stainless steel sinks, With the resurgence in the inner Construction specialist, Duncan- hot plates, fridge and freezer, small city and new growth nodes, urban- rigg has undertaken the conversion oven or microwave oven and stylish isation and densification, compact of the 8-storey building for which kitchen tops, which can be designed products allow the architectural de- Interglobal Products has provided specifically to suit available space. sign to utilise every square metre and fitted kitchen units and cupboards. The company has a long proud enhance the living space, says Mirels. Noswal Hall offers single, double, and history of providing architects and Interglobal’s products have three and four bedroom apartments. designers with custom-built, eco- been used in a number of develop- As an example, a four bedroom apart- nomical, low-maintenance quality ment nodes, including the Newgate ment consists of two bathrooms and units, comparable to wooden cup- Precinct and the Frank & Hirsch a fitted kitchen. The sturdy, rigid boards and fittings. building, developed by Afhco, a major and durable steel kitchen cupboards Director Harry Mirels told Housing player in inner city housing, as well as come equipped with hinges, which in Southern Africa that design trends the City Property Group. Interglobal are especially designed to withstand and fittings for kitchens and bath- Products also supplies various social constant use or harsh treatment and rooms continue to be innovative and housing groups and most of its prod- are exclusive to Interglobal Products. exciting even after his 50 years in the ucts are used in inner city renovations The size and shape of the kitchen industry. He says that mini-kitchens and revamps. Mirels says, “We have found that more developers have come to realise that steel cabinets are a suitable al- ternative to wooden cabinets, which become expensive as maintenance costs impact in the longer term. Steel fittings and cupboards are low maintenance.” He goes on to explain, “The fitted units come equipped with Kwikot, Franke and other reputable branded products. Architects specify our products as we’ve always special- ised in appliances and kitchen units. Quality comes first, followed closely by efficient and reliable service,” says Mirels. Interglobal kitchen units are pro- duced in two factories, which can manufacture large orders within a few weeks. On future trends and products for 2014, Mirels says that a number of new kitchen concepts for sectional, mid and upper market residential projects are still under wraps. For further information contact Interglobal Products on 011 887 7117 or go to www.interglobal.co.za ■ January 2014

Building Supplies & Equipment 'Light-weight' building Pretoria based architect, John Deppe from Designing Stone Edge was commissioned by developer Johan Rosslee to transform an old building in Secunda into a commercially viable hotel.

ccording to Deppe there were a made from up to 80% recycled glass. number of challenges including A major contributing factor was the Aloading and sourcing alterna- fact that, owing to its specifications, it tive building materials that incor- allowed for the addition of four extra porated lightweight walling systems rooms per floor. able to optimise space with specific “All the materials offer long term acoustic properties. benefits and life cycle costs. The Deppe considered the options development cost was higher than available and made the decision to anticipated but,” says Rosslee, “the specify Gyproc GypWall Soundbloc fact is that within 10 years, running 70AS/F60S57, a lightweight construc- costs will be much less, due to the tion system that limits the transmis- energy efficient product choices we sion of sounds as loud as 57dB with have made.” a nominal wall thickness of 122mm. For the 45 bedroom, Inn Green Hotel, He chose a range of innovative Saint- Gyproc RhinoBoard was specified on Gobain Gyproc products that proved the inside perimeter of the building beneficial and energy efficient. to better regulate the interior tem- The SoundBloc system incorpo- peratures. rates a specifically manufactured “We installed solar panels to gen- The building’s energy efficient build- lightweight steel stud and track erate energy and the TVs run on less ing systems will set the standards for structure, and glass wool insulation than 40 watts of power,” say Rosslee. future developments. ■ Sealing and bonding Sika’s Industry Business Unit has developed a wide range of technologies and products designed to help industrial customers achieve faster production; gain material costs; achieve innovative designs and improved product performance.

inding the right adhesive or Façades are mainly responsible for sealant to suit a specification the energy balance of a building. The Fis critical. The company has excellent thermal insulating effect of fine-tuned its sealing and bonding bonded double- or triple-glazed units solutions for the façades, fenestra- with coated glass - sealed by dual- tion and insulating glass market. seal technology - can save energy To strike an ideal balance be- otherwise consumed for heating or tween aesthetic appeal and energy cooling. Structural bonding of the efficiency, architects are increas- glass to the frames stiffens the win- ingly turning to glass curtain wall dow. As a result, the glass supports Settling of the frames is largely construction. the frame instead of the usual situ- excluded. Automation of the glaz- Glass combines well with other ation where the frame supports the ing process and reduction of steel materials such as natural stone, glass. Reduced requirements to the reinforcement make enormous con- metals or plastic coated metals, structural strength for the window tributions to improved productivity giving planners a wide scope for frame enable numerous options in window manufacturing. creativity. But façades must also for improved window structures. Sika supplies: Sikasil SG adhesive provide long-term durability. This The face widths of the window frames for structural silicone glazing; Sikasil requires perfect adhesion between are narrower, which increases the IG for primary and secondary seals the components and highly elastic, incoming light and improves the in- in insulating glass units; Sikawil WS weatherproofing solutions. These sulation characteristics. Permanent for weather sealing; Sikasil FS for specifications call for high-tech secure bonding of the glass with the fire protection; and Sikasil GS for products that are tailored to meet frame reduces maintenance costs total vision glazing (TVG). For more specific demands and guarantee because the structure retains its di- information on Sika products and peak performance in every respect. mensional stability. systems, visit www.sika.co.za ■

January 2014 Building Supplies & Equipment

Professional power tools The South African division of Bosch Power Tools - a world leader in portable electric power tools and accessories - has launched a new range of industrial products designed specifically for the professional finishing of stainless steel.

OSCH POWER TOOLS SA burnishing and structuring surfaces," launched the GSI 14 CE Pro- he explains. Bfessional burnisher, the GRB Berridge states that the Bosch GRB 14 CE Professional pipe belt sander, 14 CE Professional pipe belt sander the GEF 7 E Professional power file is ideally-suited to the local building and the GWS 15-125 Inox Professional and plumbing sector. "The Bosch GRB angle grinder. Bosch Industrial Power 14 CE Professional pipe belt sander is Tools Senior Brand Manager, Craig powered by a 1400W motor, with a no- Berridge, says all the industrial tools load speed ranging between 750 rpm in the stainless steel range have been and 3 000 rpm. This pipe belt sander faces and weld seams. A no-load designed with specific applications is highly effective in sanding pipes speed of between 2 200 rpm and 7 in mind. that vary in diameter and geometry. 500 rpm allows for the gentle working The Bosch GSI 14 CE Professional The abrasive belt wraps up to 270 of materials and prevents tarnishing burnisher, for example, is suitable for degrees, thereby enabling complete of stainless steel. Furthermore, its professional projects that require the 360 degree pipe finishing in just two 1500W motor delivers up to 50 per removal of mill scale - the flaky sur- stages." cent more torque than standard angle face formed on the outer surfaces of According to Berridge, the Bosch grinders, thereby ensuring improved plates, sheets or profiles when they 720W GEF 7 E Professional power file power and efficiency. are being produced by rolling red hot has a no-load speed ranging between Looking ahead, Berridge is con- iron or steel billets in rolling mills. 2 800 rpm and 11 000 rpm. The power fident of the future outlook for the "Mill scale is a major challenge file is a universal tool that boasts a new Bosch stainless steel professional during steel processing, as any paint slim line design, making it ideal for power tool range. "Although the applied over it will be wasted, owing applications that require work in industry is often cost driven, profes- to the fact that it will peel off. The hard-to-reach areas such as corners sional contractors in South Africa will Bosch GSI 14 CE Professional bur- and edges. Thanks to its slim grip benefit in the long run by investing nisher is powered by a 1400W motor circumference, the tool can be guided in Bosch power tools. With a proven and boasts a no-load speed of 750 with precision and ease. reputation for delivering the high- rpm to 3 000 rpm, thereby ensuring Berridge highlights the fact that est quality products at competitive the swift removal of mill scale. What's the Bosch GWS 15-125 Inox Profes- prices, I believe that Bosch will obtain more, the tool is also designed for sional angle grinder is specifically measurable market share through its the removal of tarnish, scratches designed for sanding, cutting and professional stainless steel range," and flaws, in addition to brushing, deburring stainless steel pipes, sur- says Berridge. ■ January 2014 Industry Buzz, Events & Products Sephaku Cement on track South African manufacturer, Sephaku Cement, is on track for production at its Aganang milling plant near Lichtenburg, south west of Delmas in Mpumalanga, early 2014.

he new facilitiy will come in within budget. The JSE-listed Tcompany forms part of Dangote Cement Plc. The giant African cement manufacturing group Dangote has a 64% per share holding in the local subsidiary, Sephaku Cement, which was established in 2006. According to Sephaku’s Engineer- ing Project Manager, Heinrich de Beer, the plant recently met a number of milestones, which included the cold Builders Superstores commissioning and starting of the Mill motor, ID fan and mill separator. Leading home improvement design, key cutting, paint tinting, de- “Clinker offloading is in full swing liveries, glass cutting, gas filling and and in the stage of final setting op- retailer, Builders, recently opened exchange, as well as paraffin filling. timisation. Gypsum offloading has its first two Builders Superstores. Product ranges include: paint, paint also been commissioned with the first accessories, cement, timber, bricks, gypsum off loaded mid-November.” In his is an historic moment for roofing, gas, airtime, power tools and addition, the packing plant is about to Massbuild as it is the newest tools, automotive, flooring, decor be hot commissioned with cement, addition to the Builders group, (curtains and cushions), electrical, while the palletizer and stretch hood T security, fencing, gardening tools, but also introduces a revolutionary machines have been cold and hot store format for the brand. paraffin, candles, storage, lighting, commissioned. The new stores in Tembisa on the kitchen, plumbing, bathroom, win- “Our first stack of pallets is wrapped East Rand and Evaton in the Sedibeng dows and doors. and the full sequential start-up and District are aimed at householders To add to the first time customer’s commissioning of the packing plant in townships, rural and developing experience, Builders Superstore pro- is on the cards,” says De Beer. urban areas that would ordinarily ben- vided taxis to transport customers. Incorporating the latest technol- efit from government infrastructural The service assisted those with large ogy in cement manufacturing, the spend as well as that of small con- purchase items such as doors. Celeb- equipment is representative of high tractors. The stores are conveniently rities on hand to deliver that ‘super efficiency and reduced power con- situated near commuter nodes. experience’ included local soccer he- sumption technology, with high regard So far, customers have taken ad- roes - Siaybonga Sangweni and Patrick to environmental control throughout vantage of the ‘Super Value, Super Phungwayo from Orlando Pirates. the design. Supporting infrastructure Prices, Super Service and Super Ad- The superstores aim to deliver a has been progressing well, adds de vice’ the new stores have to offer. ‘super experience’ and the company Beer. Roads and intersections are Services include estimating, credit has plans to roll out 60 more stores in on target for completion and weigh facilities, truss manufacturing and the next five years. ■ bridge systems will be implemented shortly. Telkom will shortly finalise communication installation. As a green fields project, the initial construction of the turnkey project started in November 2011. “Everyone on site has been looking forward to getting things moving. All the build- ings including the CCR, administration and sales offices are now ready for occupancy,” concludes de Beer. The African cement group, Dangote has invested more than R1,1 billion in the venture, which represents the largest investment in a South African enterprise by an African company. ■ January 2014 Industry Buzz, Events & Products Advanced driving for MBA Master Builders Association because of aggressive driving and Traffic Act) and Sections 8, 9, 13, excessive speed. 14 and 37 of the OHS Act (85/1993) North took a decision to train all The training comprised both theory as well as the outcome of decided its employees in the techniques and practice, in line with the relevant cases. SANS codes. Modules included: Ve- “MBA North launched an intensive of ‘Risk Assessment Driving’. hicle components and functions; drive to reduce road fatalities among HABO Training and Services Vehicle inspection; Dimensions and its members and commends Hard started with the Risk Assess- protrusions; Vehicle dynamics: physics Hat Equipment, who have a zero ment Driver Training at the and forces on vehicles versus the hu- tolerance on non-compliance. The T man perception/reaction time, veloc- change in attitude towards safe driv- premises of Hard Hat Equipment last year. So far, 34 employees have ity and braking capacity; Dealing with ing was clearly visible as the courses taken in the two-day courses, of emergency situations; and Economical progressed. We encourage more which 32 were declared competent. and cost-effective driving principles. of our members and construction All the candidates were assessed The facilitator emphasised the companies to follow this example,” during the course and one driver implications of not complying with says MBA North Executive Director, was withdrawn from driving duties Sections 49, 50 and 51 (National Road Mohau Mphomela. ■ Paint sector improves

In 2013, the South African paint industry recorded marginal growth of 2% in terms of volume, although turnover of 10% was the result of prices increase and exchange rates for imported raw materials, says Deryck Spence, Executive Director of the SA Paint Manufacturing Association (SAPMA). structural upgrade have yet to surface pence says this trend is ex- He adds: “On an optimistic note, there and the construction industry recently pected to continue into 2014, is the Government’s National Industri- reported that it is not sure when these influenced by the Rand/Dollar al Policy Framework, incorporating the expansion programmes will be an- S Industrial Policy Action Plan and its exchange rate, which again will have nounced and ratified.” significant influence on the pricing of housing and infrastructure upgrade. Training will be a major priority for raw materials. “GDP growth for South This will have a positive bearing on SAPMA as it prepares to propel its new Africa is estimated at 2%, which is sig- the construction industry as a whole Centre of Excellence into full force in nificantly below that of other African and will filter down to the coatings 2014. For further information contact countries, and the industry will have industry as well. Deryck Spence on 011 455 2503 or go to plan accordingly.” However, the plans for such infra- to www.sapma.org.za ■ Modular rentals Following the global trend on the focus to reduce carbon emissions, a number of energy efficient projects have been initiated in South Africa.

ith 28 Renewable Energy Independent Power Producer programmes underway and a further 19 Win the pipeline, modular buildings manufacturer Kwikspace is playing a major role supplying temporary accommodation in remote areas. energy, events, commercial, industrial and government. Kwikspace’s rental fleet products include dormitory Prefabricated units can be fully assembled on site within units, educational facilities, kitchen and bathrooms and are 48 hours. The buildings are manufactured off site. In addi- available for short and long term hire. The company offers tion, rental units can be supplied with accessories such as units from Zozo, CI Parkhomes and Kwiktainers. Recently, air conditioners, beds, steel lockers and canteen tables. Kwikspace delivered 42 units to Letsatsi PV Power Station. Kwikspace has branches in Johannesburg, Cape Town, Currently, Kwikspace has the largest rental fleet in Durban and Port Elizabeth and aims to open a branch in the Africa, in excess of 3 000 units, and has provided services Northern Cape. For further information, contact Kwikspace to numerous sectors such as construction, education, on 011 617 8000 or email: [email protected] ■ January 2014 Industry Buzz, Events & Products Come up to the lab TAL recently modernised its in addition to testing done for South African conditions, our products also laboratory, to allow for increased have to adhere to international Eu- research and testing of its ropean norms,” says TAL’s Technical Executive, Obert Rukato. products for the South African The extension of TAL’s labora- market. The new equipment tory facilities indicates the company’s will be housed in a custom- growth and interest in research and development of products for the local built state-of-the-art facility in building and construction industries. Olifantsfontein, Pretoria. The company manufactures products locally at three plants and its labora- tories develop products that are spe- New CEO he technical laboratory features cifically compatible with harsh South four separate testing facilities African climatic conditions. By testing ensuring that TAL’s products for cidb T each product batch manufactured meet international standards and are individually and conducting regular he Construction Industry fit for use in local conditions. “All our quality checks, the company ensures Development Board (cidb) procedures are in line with our ISO consistent quality. has announced the ap- 9001:2008 quality management sys- “The new equipment enhances T pointment of Mzwandile (Zwai) tem certification, which means that our research capabilities and the effi- Sokupa as its Chief Executive cient testing of products emphasises Officer, from December 2nd 2013. our commitment to research and Sokupa has 20 years of experi- quality,” says Rukato. New products ence in the built environment. He are continuously developed and has charted his career as a strate- benchmarked to meet EN Standards gist and key player in sustainable and all current products are tested human settlements in Cape Town. regularly against this benchmark. He was instrumental to the de- “The additional equipment will velopment of infrastructure for only add to our credibility of being the Department of Correctional able to provide technically advanced Services throughout the country. construction adhesives and chemi- Sokupa joins the cidb at a cals to the rest of the continent,” critical juncture when the indus- says TAL’s General Manager, Chaitan try its grappling with challenges Manga. For more information visit of collusion, slow transformation www.tal.co.za ■ and development. He said, “The cidb is a critical driver of govern- ment’s strategy to transform the construction. The cidb was established in terms of the Construc- tion Industry Development Competition entries Board Act to provide strate- th Saint-Gobain Gypsum International Trophy gic leadership to stakeholders A call for entries to compete in the 9 and stimulate sustainable growth, competition has been launched for building projects or renovations completed reform and improvement of the construction sector. ■ - by January 31, 2014. - one of the largest international competitions aint-Gobain Gyproc has called on de of its kind, promoting excellence and inno velopers, entrepreneurs and builders- vation in the use of sustainable, lightweight to participate in the international com plasterboard systems and plasters. S The company aim aims to promote world- petition, which is expected to attract entries class skills in drywall technology and plaster HOUSING from 37 countries and over 100 submissions in Southern Africa ing in construction projects, encouraging and of construction projects. There are six categories, including:- recognising contractors for their contribution - to innovation in the industry. Our Next Issue plasterboard, plasterer solutions, innova tion, segment solutions (edu The winner of the SA national trophy will Features: Roofing, Ceilings, Insulation cation/ hospitals/ hotels), enjoy an all-expenses paid trip with travel & Cladding • Paints, Coatings & residential and mixed use in business class to Berlin in June 2014, to Sealants • Bathrooms, Kitchens & (commercial including compete in the international competition, Plumbing • Infrastructure & Mixed leisure and retail). and will be given a professional photographic UseTo advertise contact Brenda The Saint-Gobain - shoot of his or her project. Grossmann on 011 622 4770 or email Gypsum Interna For more information go to www.gyproc. [email protected] tional Trophy, co.za and complete the entry form, before 31 established in January 2014. For full competition rules and January 2014 1998, has been regulations see http://www.saint-gobain-■ billed as gypsum-international-trophy.com/