South African Business 2019 edition

OVERVIEW companies. Like

OVERVIEW companies. Like many such multi-disciplinary construction and engineering firms, Murray & Roberts has decided to unbundle and the sale in 2017 of Murray & Roberts Construction to a black-led consortium is part of a wider trend. The Southern Palace Group is the majority shareholder of the company (renamed Concor) with the Public Investment Corporation (PIC) holding 25%. Supporting this trend is the fact that two of South Africa’s nine listed construction companies (Ensor and Basil Read) entered businesses rescue in mid-2018. Away from the glitz of multi-purpose malls and towering office blocks, Statistics SA has found that the percentage of South Africans living in flats has risen markedly. Whereas 26 out of 100 approved plans in 2013 were for flats, this figure reached 59 in 2016. Although the total number of people living in flats is still relatively small (5.4%), this figure will rise as urbanisation increases. BAKENBERG READY MIX STAFF READY TO SERVE Bakenberg Ready Mix is a dynamic company operating in the Waterberg District Municipality. Founder and owner David Mnisi pulled together resources and skills which he acquired in more than a decade of working in a variety of sectors. He has worked extensively as a marketing executive for FMCG firms in Gauteng. Other business experience ranges from working as a sales representative and restaurant owner to mention a few. Frans Makgoka is the operations man at Bakenberg Ready Mix. With experience in the mining sector, he moved into the business management field where he is now responsible for the coordination of operations of the company and batching. Transport and client relations are the domain of Jimmy Tlhabane. An enthusiastic businessman himself and a people-oriented person, Frans brings energy and vibrancy to the organisation. He is obsessed with efficient service delivery. SOUTH AFRICAN BUSINESS 2019 100

an Development Zone perty regeneration and growth through tax incentives. OVERVIEW uplace Properties is investing in providing accommodation in central Johannesburg. In order to fight urban decay and to encourage investment in inner cities, a tax incentive was created called the Urban Development huge potential. The develop- believes the rental market has rder to fight Zone urban tax incentive. decay The and UDZs to for encourage Johannesburg investment and Cape Town in were inner ers of the trendy Maboneng first allocated in 2004. The inner city of Johannesburg, comprising Precinct are also very upbeat. es, a tax incentive was created that applied to major South African just less than 18km², is the largest UDZ in South Africa and it is Boost Property Management es. This is called expanding the its Urban footprint. Development Zone tax incentive. The is building a 10-storey apartment block in Hillbrow. The Zs for Johannesburg Making inner and cities Cape more Town liveable were is a first global allocated trend. The in move 2004. back to cities is spurred partly by the relative cheapness of property R40-million Kaptejn Corner will nner city of Johannesburg, comprising just less than 18km², is the in CBDs, legislation encouraging inner-city investment and even a have 128 apartments. st UDZ in South perception Africa that and suburbs it is expanding are boring. its footprint in response An innovative approach nificant successes Private that developer have Indluplace been achieved. Properties has purchased nine large to unlocking the value of land he Urban Development apartment blocks, Zone of tax which allowances is shown above, (Section taking its 13quat) total in the traditional areas is under consideration. The hous- buildings in central Johannesburg CBD, Berea and Hillbrow to 23: ide for an 33% accelerated of the units depreciation are bachelor pads, allowance 22% are two-bedroomed on the costs flats. of ing development: agency of the Limpopo ings erected, The added listed company to, extended (its major or shareholder improved is Arrowhead) inside a UDZ. intends The Economic Development Agency h African Revenue to “aggressively Service grow (SARS) its portfolio” has of extended high-yielding the properties incentive as it to (LEDA) has proposed a plan for the conversion of Permissions to arch 2020. Municipalities can apply for extension to the existing ONLINE RESOURCES Occupy (PTO) to title deeds in s via the National Treasury. There are five requirements to qualify deep rural areas such as Vhembe Black Business Council in Built Environment: www.bbcbe.org UDZ tax deduction. These relate to the building, the nature of the and Sekhukhune. The National Construction Industry Development Board: www.cidb.org.za Home Builders Registration , trade considerations, Construction the Industry specifics Training of Authority: ownership www.ceta.org.za and to the dates Council (NHBRC) will consider e applications. South The African fact Property that the Owners incentive Association: has been www.sapoa.org.za extended to the proposal. centre planned. gives investors a good chance to take advantage of favourable itions in Johannesburg. he Johannesburg Social Housing Company (Joshco) has plans to ide affordable rental accommodation in 12 inner-city buildings were recently identified for that purpose. But the main target for reaching out to other areas a regions on the city’s outskirts. T city wants to achieve nothing l than the “structural transform tion of the inner city’s econom and physical landscape”. The City of Johannesburg h identified the following nodes • Carlton Precin Johannesburg’s tall building attracts touri undergoing revamp; S Rink TV and film studio b ing developed; conferen • Park Station: intermo node catering for cars, b es, rail commuters and ta Gautrain link to OR Tam International Airport; w 101 SOUTH AFRICAN BUSINESS 2019