Real Estate Investor Magazine South Africa September 2013

REI Commercial New Act Passed Into Law T he S p at i a l P l a n n i n g a nd L a nd Us e Management Act seeks to bridge the racial divide in spatial terms and to transform the settlement patterns of the country in a manner that gives effect to the key constitutional provisions. It will address the legacy of the discriminatory, inefficient and costly special pattern which puts a considerable burden on the public resources. The Act will also ensure that the restructuring of the South African cities, towns and settlements is in line with the priorities and principles of the democratic government. Land Affairs Minister Gugile Nkwinti said the legislation would ensure the system of spatial planning and land use management promoted social and economic integration and inclusion. New Capital Structure Introduced Growthpoint Properties Limited has become the first SA REIT to introduce a new capital structure, converting from complex linked units to the straightforward ordinary share structure. Friday, 2 Aug ust, was the f irst day for Growthpoint’s investors to deal in the new ordinary shares on the JSE. Norbert Sasse, CEO of Growthpoint Properties Limited says: “Growthpoint’s new capital structure is cleaner and simpler. It has been welcomed by our investors. Taking this exciting path was a natural step for us in becoming a full REIT. Growthpoint’s change to ordinary shares represents the international best practice for a REIT and, for that matter, any publicly traded investment.” Growthpoint’s REIT status was granted by the JSE and it began trading as a REIT on the JSE with effect from 1 July 2013. Carbon Tax A Negative? The SA Chamber of Commerce and Industry (Sacci) claims it is concerned about the possible ‘malign economic impact’ of the proposed carbon tax. It added the effect of such a tax on the economy would be ‘signif icant’ and might have ‘severe effects’ on job creation and SA’s international competitiveness. Sacci had submitted commentary to the Treasury on the policy paper. This concerns the introduction of a carbon tax of R120 a metric tonne on emissions of carbon dioxide from 2015 onwards. The chamber said there was little detail on policy options such as tax credits for companies that invested in energy-efficient machinery, and ‘deep concern’ that the tax would not reward carbon mitigation. Valuable Input Ken Reynolds, Regional Executive, Nedbank, “The property market usually lags the business cycle by up to 24 months so the property sector will probably remain relatively flat in the near term.” Amanda Stops, CEO, South African Coucil of Shopping Centres “The research shows the average shopper visits malls 38 times a year and spends 80 minutes on average per trip. Increasingly, when we go shopping we take our online lives with us too.” Charles Vining, MD, Seeff Sandton Shiraaz Hassan, Director, Asrin Property Developers While the majority tend to focus on the negatives in South Africa, our European counterparts have to face far bigger woes and appear to be managing these challenges. South Africans, too, need to focus on fixing our future.” Stefano Contardo, Development Executive, Improvon “We believe all property developers have a moral obligation to ensure that their developments have less dependence on our planet’s natural resources than they have in the past. Going green should be a necessity for all property developers.” “New commercial development in Sandton will see thousands of employees relocated to offices in the Sandton CBD. All this development will inevitably create a big demand for residency.” www.reimag.co.za September 2013 SA Real Estate Investor 39

Real Estate Investor Magazine South Africa September 2013 | Page 41