Property mogul's example and leadership inspired others

Issue 82 • Asset Magazine 1

AssetIssue 82 | June 2020

Property mogul’s example and leadership

inspired others A tribute to Marc Wainer

Issue 82 • Asset Magazine 32 Asset Magazine • Issue 82

AssetIssue 82 | June 2020




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“Every decade or so, dark clouds will fill the economic skies and they will briefly rain gold. When downpours of that sort occur, it’s imperative that we rush outdoors carrying washtubs, not teaspoons. And that we will do.” – Warren Buffet

The dark cloud of Covid-19 has been the point of reference for most businesses, if not all of them, for the past three months. It has caused massive dislocation across economies. Whether you agree with the lockdown measures implemented across the world or believe, as some do, that they were an overreaction to a virus that has to be faced until such time as a vaccine is found, businesses have been hugely disrupted.

While it is hard to imagine much in the way of ‘gold rain’ at present, many of the companies we feature in this month’s issue of Asset are seeing fresh prospects slowly emerge in their respective sectors. And if they haven’t quite figured them out fully yet, they are cautioning against panic and rash decision-making. No-one expects the months ahead to be anything except tough, but economic momentum has to be regained if the country is to survive.

There are countless South African businesses which have a long and proud history of innovation, excellence and integrity. Let’s hope that for them, and others like them, washtubs are eventually needed - and not teaspoons - once the economic wheel is fully turning. A+

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Editorial Comment


Inside this issue | June 2020

26COVER STORYA TRIBUTE TO MARC WAINER Property mogul’sexample and leadershipinspired others

Marc Wainer kept to his word. This was the main tenet by which the property titan lived. When he passed away on April 20 after some 45 years in real estate, at the age of71, he left an unprecedented legacy in South Africa’s real estate sector. He spent decades working in prop-erty, mostly learning on the job, from humble beginnings to becoming the CEO of South Africa’s second largest property company, Redefine Properties.

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INTERVIEWSEVERGREENPandemic could increase demand for retirement village lifestyleCobus Bedeker

ISIBONELOSocial integration and sustainability createa winning formulaShadrack Mthethwa

RETAIL NETWORK SERVICESA paradigm shift in retail is on the cardsGavin Tagg

SPECTRUM VALUATIONS AND ASSET SOLUTIONSProperty values set to sweatbut fallout will be limitedPatrick O’ Connell

SIEMENS Combining smart citiesand fashion designSabine Dall’Omo

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07UPFRONTEditorial comment

Newsstand

Atterbury and Attacq welcome Deloitte’s African operations to new HQ

Broll Africa 2020: A new vision

5 predictions for the property marketJohn Jack & Dean Wright

Growthpoint’s specialised Cintocare Hospital development achieves Africa’s first Green Starrating for a healthcare property

International property myths:It’s easier than you think to buy property abroad

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FEATURESWhiffAway expands its footprint in AfricaJames Mclean and Sebastian Marshall

African real estate post-Covid-19: a forecast Ivan Cornet

Why you need a workplacestrategy now more than ever!Andrew Mason

The future is virtual and flexible

Designing workspacesfor the next normalPhilippe Sourdois & Tiziano Betti

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Newsstand


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Deloitte SA, one of the country’s leading professional services firms, will resume occupancy of its new African headquarters, co-developed by leading property developer and investor Atterbury and JSE-listed Attacq Limited once SA’s novel

coronavirus (Covid-19) lockdown is over. Some 3,500 staff members will work from the building, but the premises have room to accommodate almost 5,000 people in time. This provides Deloitte with additional workspace flexibility, which is especially relevant in a time that calls for workplace facilitation of social distancing protocols.

The ultra-modern property is located in the sought-after Waterfall Precinct, which is well known for its easy accessibility, world-class infrastructure and central location between Sandton and Pretoria. The new building currently consolidates Deloitte’s two former Gauteng offices – Woodmead and Pretoria - into one attractive, modern building with 42,500m² of quality workspace.

The new HQ was designed with the future in mind, with smart building technology and interactivity integrated throughout, making it responsive and adaptable to the needs of

Atterbury and Attacq welcome Deloitte’s African operations to new HQ

the workforce today as well as in 10 or 20 years’ time. The HQ development began in late 2017 and was completed on 31 January 2020. Deloitte’s move into the building was all but concluded when the government announced a nationwide lockdown at the end of March 2020.

Mike Jarvis, chief operating officer at Deloitte Africa, says, “We are looking forward to working from our new offices when it is deemed safe to do so. The new building promises improved efficiency, integration and sustainability for the firm’s Africa headquarters. This is good for our business, our people, our clients, and the environment. The benefit of developing office premises with the ability to expand means that it is suited to our long-term capacity needs – and potentially the short-term, post-Covid distancing protocols too.”

James Ehlers, managing director of Atterbury Property Developments, says, “We’re thrilled to have created a new home for Deloitte. The new building supports the functioning of the organisation and its people in a welcoming, modern workspace. This project is an achievement of which everyone involved can be incredibly proud.”


Asset News


This video recording is from Broll’s inaugural Africa 2020 webinar. Broll had 600 registered

attendees, who participated in discussions on the strategies that can be used in the near and long-term during the recovery phase of the emerging new business environment in Africa. Innovative solutions for the challenges of tomorrow were also explored. A+

Broll Africa 2020: A new vision

Click here to view webinar

Atterbury’s development manager, Arno du Plessis, says, “We prioritised overall efficiency and savings in developing the new user-friendly headquarters for Deloitte’s clients and employees. The building’s operational, environmental and cost efficiency is integrated across its ground floor, six offices levels and four basement parking levels with almost 2,000 parking bays.”

Enzo Oosthuizen, Attacq’s development manager, adds, “The building’s unique racetrack design and large internal atrium promote integration and connectedness among staff, while making the building amenable to future subdivisions, should the need arise. With its spatial layout, sustainable design features and impeccably planned links that tie into the precinct’s walkability, the new Deloitte HQ fits perfectly into the Waterfall precinct.”

“Over the past few years, we have been deliberate in our efforts to create an urban live-work-play environment within Waterfall City. Key to this is offering a unique mix of office, hotel, light industrial and residential solutions that promote safe and sustainable spaces where people can

connect. We are thrilled to welcome Deloitte to Waterfall City; they are yet another example of the confidence that major firms have in expanding their operations within our precinct and speak to the quality of our corporate consolidation proposition,” says Melt Hamman, CEO of Attacq.

See our feature on this building in the April issue of Asset


Deloitte Property Development

Flagship Deloitte Africa HQ on track to open in April

All photographs by InfrastructurePhotos

One of the newest additions to the fast‐growing Waterfall City precinct is the new African head office of Deloitte. With a prime position facing the N1 highway just off the Allandale interchange, it is very clearly a

flagship building. Asset attended a site visit to the building, which reached practical completion at the end of January and is on track to be occupied in April. Written by Claire Cole

Read timeapproximately 5min

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14 Asset Magazine • Issue 82


Asset News

The extended lockdown has sparked major uncertainty around the future of our economy. Regardless of what your

cash flow looked like before Covid-19 struck, most businesses are now tapping into every available resource to stay afloat.

John Jack, CEO of Galetti Corporate Real Estate, says that innovative landlords have created additional funding pools for tenants to access to continue to pay rentals at very low interest rates.

Five predictions for the market going forward;

1. Companies regulations will enforce an employee distancing protocol which will require a larger office for a similar number of employees or the same office for fewer employees. Overflow will look to serviced flexible workspace providers to cater to the requirements.

2. Corporates will increasingly use flexible workspace to service their office requirement.

3. E-commerce will be a necessity for business going forward.

4. Landlords will have to offer flexible lease terms much shorter than the standard 5-year lease contract. It will come at a premium for the tenant but it will be better than the liability of a long-term contract.

5. Banks will have to align with landlords factoring in far shorter lease terms and the

5 predictions for the property market

requirement to fund the CAPEX portion of the relocation.

“Going forward, we foresee employment contracts being renegotiated based on flexible terms and approximately 70-80% working from the office at select times, on select days.”

How to restructure your rental agreementsMany lessons have been learned during these extraordinary times. One that stands out and makes news headlines regularly is that of restructuring rental agreements.

According to Dean Wright, partner from Schindlers Attorneys and Notaries, the pandemic has made it near to impossible for parties to meet the obligations of their agreements, particularly those relating to the rental of properties.

Dean says that many landlords and tenants are now entering into negotiations to amend/supplement existing agreements. The most common of these are as follows:

• Deposit utilisation agreements – “Here, the tenant agrees that their deposit held by the landlord can be used to cover any rent shortfalls for a certain period of time, and this deposit amount will be replenished by the tenant by a certain date.”

• Rental reduction and tenant income declaration – “Tenants are starting to approach landlords for a reduction in rental amounts. In turn, landlords are asking for

income declarations, documents and proof of loss of income to allow meaningful negotiations surrounding this.”

• Rental deferment agreement – “These types of agreements temporarily suspend the tenant’s obligation to pay the full rental amount for an agreed period of time, as well as dictate how these payments are to be caught up in the future.”

Specific clauses that are being discussed and re-thought are the “force majeure” and dispute resolution clauses in agreements.

• Force majeure and impossibility of performance – although there is some misconception around these types of clauses, generally they aim to ‘excuse’ a party’s non-performance in terms of an agreement, as a result of a circumstances that were not within the reasonable contemplation of the parties. Typically either the agreement will specifically include these types of clauses (however we are seeing that these are rarely worded to cater for the effects of Covid-19) or one would have to look to the common law where the defence of impossibility of performance is relied on. “It is important to note that Covid-19 and its effects are undoubtedly now within the contemplation of contracting parties. As such, non-performance due to Covid-19 will more than likely fall out of scope of these types

of clauses in the future, and the parties will now have to specifically regulate their obligations that may be hampered due to Covid-19 in their agreements.”

• Dispute resolution clause – “With the uncertainty of how court-based litigation may be affected post Covid-19 and lockdown, agreements that contain alternative dispute resolution mechanisms are being utilised more in the event of a dispute arising. It is important to check whether the dispute resolution clause makes provision for alternative dispute resolution mechanisms such as arbitration, adjudication or mediation. Given that these types of dispute resolution mechanisms are consent-based, parties are still at liberty to agree to follow them despite not specifically being included in agreements. However it is suggested that an attorney be consulted to assist in the preparation of such agreement.”

In terms of settling disputes, parties are carefully considering their position before embarking on the standard litigation process to resolve their disputes. “Many are opting for mediation (private and court-annexed) or arbitration. By following these avenues, disputes can be settled without compromising longstanding business relationships.” A+

Dean WrightJohn Jack


Asset News

The specialised surgical hospital development by Growthpoint Properties and Cintocare, the first facility of its

kind in South Africa, has also become the first healthcare property on the African continent to be awarded a Green Star rating.

In a milestone achievement for green building and healthcare in South Africa, Cintocare Hospital in Pretoria, Gauteng, has received a 5 Green Star Custom Healthcare design certification from the Green Building Council of South Africa (GBCSA).

Working closely together to develop this specialist surgical hospital, Growthpoint and Cintocare are creating a tailor-made, high-performance space, which includes positive social and environmental impacts - a clinical centre of excellence.

Lisa Reynolds, CEO of the GBCSA, says, “Earning SA’s first Custom Healthcare Green Star rating for Cintocare Hospital continues Growthpoint’s track record of exceptional green building leadership and displays Cintocare’s innovation. Together, they are creating a sustainable healthcare facility designed around the well-being of patients and hospital staff that supports the environment and its communities, and is changing the future of healthcare properties in SA.”

Growthpoint’s specialised Cintocare Hospital development achieves Africa’s first Green Star rating for a healthcare property

Rudolf Pienaar, Growthpoint’s chief development and investment officer, comments: “We are delighted that our collaboration with Cintocare has led to this state-of-the-art hospital becoming the country’s very first certified green hospital property. Growthpoint is very proud to be part of creating a greener, healthier, more sustainable built environment and healthcare sector.”

Andre Brink of Cintocare says, “We appreciate the excellent working relationships that have achieved this, and congratulate everyone who has contributed to the design.”

The benefits of this particular project go well beyond a single hospital. The collaboration between Growthpoint, Cintocare, GBCSA and the professional team, including Aurecon, has resulted in a new green building certification tool for the healthcare and property sectors, to which Solid Green also contributed its expertise. This green certification tool is a road map to drive the development of more green healthcare buildings in South Africa in the future, and it is available to everyone.

Construction of the R470 million specialist hospital began in July 2018 and, despite the Covid-19 lockdown, the project is well on track for completion in the final quarter of 2020. The year-long planning for the project included the comprehensive collaboration


of its operators, doctors, promoters, developers, owners, green partners and other stakeholders.

The hospital will focus primarily on the head and neck, spinal, neuro and vascular surgery with its highly specialised medical professionals supported by state-of-the-art technology. The development partnership is delivering the full suite of services for the hospital - from inception to completion.

Designed to the highest international standards, the hospital includes seven floors; the hospital plant room, three clinical and consulting levels and three parking levels with 335 secure parking bays. This 100-bed hospital, with a built-in capacity to expand to 160 beds, incorporates five theatres, of which three are banked and one is a hybrid.

The exterior of the building reflects its fundamental purpose. Its glass façade that also serves to shade the building will be complemented by design features evocative of spinal vertebrae found in the neck.

Growthpoint’s partnership with Cintocare has provided Growthpoint Healthcare Property Holdings with the opportunity to own this world-class hospital on completion. It is the first unlisted healthcare fund that invests exclusively in healthcare property assets in SA, including hospitals, clinics, pharmacies and laboratories.

Dr Linda Sigaba, fund manager of Growthpoint Healthcare Property Holdings, says, “Green healthcare buildings are designed to have positive impacts on their users, their surrounding communities and the environment, and they are the future of healthcare properties globally. Growthpoint is an established leader in green developments, which allows our healthcare fund to grow its portfolio of properties with partners like Cintocare. We will continue supporting the growth of the healthcare sector by providing the capital to build new healthcare facilities and the green buildings of the future.” A+


Asset News

International property expert and founder of Hurst & Wills, Lisa Bathurst, puts to rest seven common myths around owning an investment property abroad. With more than

15 years’ experience helping people make good property investments in the United Kingdom and Europe, Bathurst has seen it all. Here she deals with misconceptions that may be preventing you from making a sound, international investment.

Myth 1: Investing offshore is only for people with millions of rands“This is simply not true,” says Lisa. “Hurst & Wills offers luxury student accommodation apartments, which are sound investments, at a total cost of R1,2 million. Thanks to our experience and contacts in the UK, we also have access to financing. This means that you can invest for half of that amount and have your tenants buy the rest, or you can purchase luxury residential buy-to-let apartments in a prime UK city. In reality there are plenty of options that cost far less than you think,” says Lisa.

Myth 2: I need to buy cash-only as I’ll never get a bond overseas “This is also not necessarily true,” says Lisa. “We have secured bonds for many of our clients. The myth here is that you need a foreign passport or you need to earn millions of rands a year to get a bond abroad, and this is not true. We have successfully helped clients buy properties by putting down a 25% deposit with an interest rate as low as 2.5%, and having their tenants pay the rest,” she says.

Myth 3: I’m worried about exchanging money and losing out on the exchange rate“The exchange rate can be a tricky one to navigate but you don’t need to lose out,” says Lisa. “We recommend that our

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Located near De Montford University and Leicester Royal Infirmary, this building in Jarrom St, Leicester consists of student and key worker accommodation.


Asset News


clients send their cash using a reputable FX company and send it in batches, that way you can hedge. “Most of our properties can be purchased in instalments and we can assist clients with tailored payment plans. In some cases, a client only needs to send 10% overseas and then has several months, sometimes up to two years, to send the rest.”

Myth 4: It’ll be difficult to find tenants and maintain when I’m thousands of km away“All of our property investments come with hands-off, fully-managed options,” says Lisa. “Many come fully furnished with curtains and TVs. Most of our builds come with a 10-year warranty so that solves the maintenance and fixing aspect, and we even have properties that get an annual lick of paint included,” she says. “The properties can be managed by yourself if you choose to, though why would you? Otherwise, we work with partners who will vet your tenants, check them in, instruct maintenance and collect rent.”

Myth 5: It’ll be complicated from a tax perspective“We are not tax experts so always seek your own independent advice from your tax and accounting specialists. However, as a general rule, buying a property or two overseas is fairly simple from a tax point of view,” says Lisa. “SA has a double tax treaty with many countries, so you never pay too much tax. You may have to fill in a form at the tax services in that country, but this can often be done online or using one of our preferred partners who will charge you a nominal fee,” she says.

Myth 6: What if I need to access the cash in my property investment?“Life is unpredictable. We know that things can change and that you want to know that you can access your cash if you need it,” she says. “You can bring you

rental income over from overseas anytime, with a click of a button using our FX partners. Should you need a larger sum, there is an option to refinance or mortgage the property and take out some equity. Alternatively, selling the property should be simple enough as long as you have bought at the right price and more importantly, in the right location. Of course property is less liquid than the stock market, but we make sure that our recommended properties offer a good monthly income and a viable exit strategy,” she says.

Myth 7: Student accommodation is very popular, but I don’t trust students renting my property “Modern student accommodation overseas is nothing like the university accommodation we remember. The purpose-built student accommodation, or PBSA as the UK refers to it, is a result of government initiatives to provide safe, appropriate student digs close to universities. These purpose-built buildings are more like luxury flats with media rooms, rooftop gardens, coffee kiosks and laundry. Students are prepared to pay a premium to rent them. They take pride in their apartments. The rent is guaranteed, and most projects include maintenance as part of the deal. So, you’ll never have a student headache, or have to worry about the apartment’s condition,” she says.

“Investing in an international property is easier and more accessible than you think,” she says. “However, it is always best to use a professional, independent property company. We are not tied to one developer or one development, we are independent and make sure you, our client, gets the best possible investment in line with your wealth strategy,” says Lisa. A+

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Marc Wainer kept his word. This was the main tenet by which the property titan lived. When he passed away on April 20 after some 45 years in real estate, at the age of

71, he left an unprecedented legacy in South Africa’s real estate sector. Marc spent decades working in property, mostly learning on the job, literally rising from running his family’s grocer and fish shop to becoming the CEO of South Africa’s second largest property company, Redefine Properties, which he founded and listed. He was also instrumental in helping to shape the destiny of other property funds including Hyprop Investments, Investec’s property arms and Atterbury.

He did this with only a matric, wit and determination and actually stumbled into property when he answered an advert for a position as a shopping centre manager at Kempton City in 1973. He said he got the job because he bothered to visit the centre beforehand while the other accountants and business majors who applied hadn’t thought of doing so.



Cover StoryTRIBUTE TO

MARC WAINER


But while Marc will be remembered for his ability to get property deals over the line and for his belief that a handshake must always be respected between parties even if conditions around a deal might change afterwards, a large part of his legacy lies in his willingness to help others in business. He enjoyed the game of real estate and liked to recognise the hunger for succeeding in business, in others.

For a number of years, he made time to meet with young people who needed advice about what they wanted to do with their lives and about how to get a leg up in commercial property. Later he formal-ised this in The Mentorship Challenge, a programme where he met mentees regularly. He also connected mentors working in other fields with mentees. This programme was supported by a television show which shared the mentorship experiences of people lucky enough to take part.

Marc has left an indelible mark on the careers of a number of property heavyweights.“Warm, engaging, generous” and a “skilled dealmaker”, chairman and founder of Spear Reit and a former executive director of Redefine, Mike Flax says.

Mike Flax

Lee Morze

Lee Morze says Marc Wainer changed his life forever, from being a 24-year-old wet-behind-the-ears guy eager to pull off a deal, to being a global developer. Lee has since been instrumental in top real estate deals in Europe and helped Vukile Property Fund to invest in Spain in 2017.

“The first day I met Marc and entered his office back in the mid-90s, I felt like a wide-eyed juvenile koala bear slowly walking into an Australian bushfire. Through the haze of smoke, I expected to see a fireman but slowly Marc emerged attempting to use his last cigarette to ignite his next one.

“As I sat down he said “What you got?” meaning the deal, and I said, “I am a valuer looking to do some broking deals.” To clear the air, he felt com-pelled to enlighten me that all valuers are idiots and brokers are glorified delivery boys,” says Lee.

“Then he said those life changing words to me: “Rather listen to the property.”


MARC WAINER


“That was the last day I ever worked, as at that moment my mentorship began and property became fun and my all-consuming hobby. They say you need 10,000 hours to master any skill, fortunately Marc was very, very patient with me dedicating many, many more hours,” he says.

Keillen Ndlovu, head of listed property funds at Stanlib, says Marc Wainer will be remembered for his eagerness to do deals and to look at real estate from a big picture perspective. “He was simplistic in his approach and as a result, he made property look simple. He was a humble, accessible and approachable person. He was a good listener and would also ask for advice and thoughts. He concluded a number of ground-breaking deals, with strong investor support. No one can get it right all the time – some of the deals have worked and some haven’t,” says Keillen.

Mike Flax agrees that Marc was driven by the thrill of challenging himself in business as he built commercial property entities often from scratch. “Marc was a deal junkie. He was never happy unless he was pursuing a deal. He generally was an optimist and found reasons to do most deals. But he was very skilled in deal-making and knew how to close them out.”

Mentorship Challenge mentee Lazola Kubukeli of JKN Developments says Marc was always available to help him. “He gave me confidence to pursue a full-time career in property,” he says. “He taught me that it didn’t matter that I was a young rural lad from the Eastern Cape. He said there was way too much red tape in business and that

sometimes people saw red tape that wasn’t there. He told me that when doing a deal, you can negotiate at every level. You must negotiate with your contractor to maximise income and minimise expenses. Do the same with brokers,” Lazola says.

Justin Roome says Marc changed his career after he headhunted him in 2009. Justin had been working in the USA. He would spend seven years as head of acquisitions and disposals at Redefine before moving on to Aria Property Group.

“Marc was a high-level guy and I assisted him with a lot of the heavy lifting in negotiation implementation and the due diligence, legal and analysis of the transactions. As an example, when Redefine was talking to Lee Morze about Castellena, I was on a plane to Spain within a week to meet with Lee and his brother to tour the assets. When Marc committed to a transaction we moved quickly to execute,” he says.

Keillen Ndlovu

Lazola Kubukeli with Marc

Marc with Arnold Schwarzenegger at a 2019 Mentorship Challenge


MARC WAINER


The two worked on Redefine’s acquisition of Fountainhead, the founding of EPP in Poland, the listing of Arrowhead, a joint venture with student housing owner Respublica, and the acquisition of Pivotal, among other deals. “We concluded over R25 billion transactions together. Upon leaving Redefine my new firm managed to conclude a number of transactions with Redefine and being on the other side of the fence, a buyer from Redefine, it again showed what a pleasure he was to transact with. Buyers would work on risk with Marc without having a signed agreement in doing a due diligence, because they trusted him immensely once terms were agreed to which is very rare,” he says.

“Marc fast tracked my personal and professional career and when my ambition grew outside of the walls of Redefine he supported my decision to take the risk and leave the corporate world to create my own destiny,” he says.

Marc Wainer retired from Redefine’s board at the end of August last year.

Justin Roome

Marc at the Loftus Park mixed-use development launch and ribbon-cutting ceremony in Pretoria


MARC WAINER


Wouter de Vos of De Vos Capital, who had co-invested with Marc in Poland following his retirement, said he may not have known him for long but he found Marc to be honest, re- spectful, interesting, entertaining and streetwise.

He often spoke highly of Investec Bank co-founder Stephen Koseff and businessman Eric Ellerine with whom he co-invested in his later life.

Andrew Konig who worked with Marc as Redefine’s financial director and succeeded him as the company’s CEO, says Marc appreciated people who had helped him in his career. “He always spoke of all the people who had an impact on his life – his granny Sarah, Hymie Weinberg who had a great influence on his business principles, David Kuper and Stephen Koseff who shaped his career at Investec are some who come to mind,” says Andrew.

Redefine’s development director, Mike Ruttell, says Marc valued the notion of ‘do unto others as you would have them do unto you’. “I would describe Marc’s mantra as ‘be friendly to, and respect people, and in return they will respect you’. In my opinion Marc’s greatest gift was the attention he paid to all the people he came across in both his personal and business life. People trusted him because of his openness,” says Mike.

Wouter de Vos Andrew Koning Mike Ruttel


MARC WAINER

Marc in discussion at a Mentorship Challenge function last year

Issue 82 • Asset Magazine 3736 Asset Magazine • Issue 82 Issue 82 • Asset Magazine 37


MARC WAINER

Will South African real estate or business ever see another leader prepared to be as brash and confident as Marc Wainer? It’s hard to say.

“Marc was one-of-a-kind in many respects - he was 100% authentic and told it as it was regardless of the audience or the con-squences – in fact he enjoyed being at the centre of controversy,” Andrew Konig says.

He saw the humour in some of the toughest situations and was someone who liked to do things which may have been uncon-ventional but still legal in business. He was someone who asked for permission after he did something.

“One of my memorable moments with Marc was when he was smoking a cigarette standing underneath a ‘No Smoking’ sign at a petrol station in Poland. When spotted by an irate Polish petrol pump attendant he calmly dropped the burning cigarette onto the ground before being confronted,” says Andrew. Marc Wainer will always be remembered for being a maverick who backed himself on his rise to the very top, but also helped many people along the way. A+


Daughters Stacey Dembo and Hadene Gratch

With his son Jordan

Marc with his late wife Lesley

Issue 82 • Asset Magazine 3938 Asset Magazine • Issue 8238 Asset Magazine • Issue 81 Issue 82 • Asset Magazine 39

Pandemic could increase demand for retirement village lifestyle

says Evergreen MD

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Interview with Cobus Bedeker Evergreen Property Investments

Cobus Bedeker, MD of Evergreen Property Investments

Interviewed by Tony KorstenWritten by Ana Lorton

Evergreen Bergvliet



When a countrywide lockdown was announced for 26 March of this year, few South Africans could imagine what it would be like. Two months later, academic papers in their thousands are sure to be written, detailing every facet of how the

coronavirus pandemic rocked our world as we knew it and touched every sector of the population. For retirees it has possibly been more terrifying than for most.

Firstly, international statistics seemed to indicate that this group would be more at risk than others. Secondly, for many, isolation has meant little or no contact with children and grandchildren. And all this compounded by the continuing stress of the country’s security issues, and concerns around how to shop, manage housework and cope with medical conditions with little support.

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Enter Cobus Bedeker, MD of Evergreen Property Investments. By 17 March, Cobus tells Asset, all the group’s Lifestyle retirement villages were ready for lockdown, and ready in such a way that residents and their families could breathe out, knowing that their loved ones were being taken care of and were in good hands. In addition, every possible aspect of residents’ lives had been catered for.

“Our business is made up of two divisions: people and property, and the journey in-between” says Cobus. “We had to shut down all our seven construction sites and new projects, where we employ close on 7,000 people. But we had to keep the wheels of our villages turning and achieve heightened performance levels as regards our residents. We needed to keep the spread of the virus minimised.”

How was this achieved? When Evergreen became aware of the speed and ferocity at which the virus was spreading in European care homes, it sprang into action. Management and medical staff were asked if they would be prepared to enter on-site lockdown for however long was necessary. Many agreed and the villages have been able to provide 24/7 comfort and care for the last nine weeks. Val de Vie Evergreen


The Evergreen business model worked in the company’s favour. “Two or three years ago we took the decision not to sell life rights off plan anymore. Instead we build the villages out with a further 50 to 100 houses at a time which we then sell in a later sales phase. Late last year we finished extending all of our existing villages. With lockdown imminent, we took all that available stock, furnished the houses, our staff moved in and have been there ever since.”

As a result, life at the villages has been able to continue without stress although there are changes. Tight staff and resident health and safety procedures have been implemented with Evergreen keeping a close watch on what’s happening internationally in order to adopt any new and valuable learnings. Families are updated daily by the management teams; video conferencing is freely available for chats with grandchildren and friends; staff visit all village homes daily and there are regular communiqués to residents containing exercise tips and puzzles.

“One of the building blocks of our villages is a sense of community and we are working hard at this because it’s not psychologically healthy for our residents to be so isolated. With exercise options opening up, we’ve scheduled times to accommodate groups of residents who can walk in the grounds without being in close contact with neighbours or staff. Our frail and memory care units are in more extreme lockdown but are being well managed by our dedicated staff.”


Evergreen has managed the shopping dilemma facing many of their village residents via an innovative approach. They harnessed their project staff who were locked down at home to receive daily online shopping lists from village managers. “These young guys have been kept busy fetching medication and groceries which Evergreen pays for by arrangement with the supermarkets. They drop off the purchases at the villages, where they are sanitised before being delivered to the homes,” Cobus explains. The current

situation has clearly highlighted the benefits of buying into the life right model when it comes to retirement living, according to Cobus. Because the owner/ developer remains invested in the asset, it is managed with real commitment.

“It’s a secure investment in your lifestyle and your health. With Covid-19 we’ve entered a phase where our ‘Partnership for Life’ ethos is in action and we could fulfil our promise to our residents. Because it’s our asset we are

Evergreen Noordhoek

Fresh produce deliveries to residents


Evergreen Noordhoek is on 16 hectares of gently sloping, north-facing land, with sweeping views of the mountains and the sea. Evergreen Noordhoek offers a choice of spacious three-bedroomed homes, all with double garages, set among landscaped gardens.


able to take a long-term view and spend our own equity and cash when it’s necessary to do so. We were able to buy months’ worth of sanitisers, gloves and PPE before suppliers ran out of stock. If you buy into a sectional title or freehold scheme, how quickly will you manage to collect a sizeable sum of money to buy in bulk like this, for example?”

With 750,000m² of housing – 5,000 units - either under construction or in the planning phase, Cobus is under-standably relieved that Level 3 has meant an exposing of these elements of the business. Opening up the cities means health and safety protocols which now need to be followed rigidly because even though these issues have always been handled with the utmost care and professionalism by Evergreen and its contractors, we remain alert, he says. The company provided main contractors with funds to pay their workers over the lockdown period, but Cobus admits they could only do that for so long.

“We always say we’re proudly South African, and we completely supported the initial measures taken to ensure medical plans were in place to handle the inevitable spread of the virus. But we had reached a point where it was dangerously impacting the country’s economy. We run construction sites, we create jobs and we help build the economy. Now we need to move forward with a renewed and energised momentum.”

While not downplaying the devastation wrought by the pandemic, Cobus says the “pause” has sharpened their minds on the future, given them time to relook their designs as well as the way their villages function, and refresh their sales methods. Online selling has proved possible and successful. Buyers have the option to cancel sales if they wish to do so once they have viewed the property physically.



Walk-about videos made by sales managers on site have proved popular with potential purchasers.

“Will the pandemic strengthen retirement village living? It’s very possible there will be a move towards relocating sooner rather than later into retirement property. Certainly children will realise that they no longer need to be concerned about their parents’ health and welfare in a life-right village. It’s clear that lockdown has brought to light the dependence we have on each other, and even more so as we grow older.”

Evergreen appears to be managing a unique situation in a highly proactive and appropriate way. Both management and medical staff have worked tirelessly to protect residents, says Cobus. It will be interesting to see whether a drive towards their retirement lifestyle offering shows a marked uptick in the months to come. A+

Evergreen Health, part of Evergreen Lifestyle Villages, has prepared the villages for any unforeseen medical crisis, such as Covid-19.

Covid-19 readiness strategy• A complete lockdown of villages before the official nationwide lockdown;• Residents at the care centres are not allowed to receive any visitors;• The majority of nurses and carers are being accommodated on-site in the villages

during lockdown;• Rigorous daily screening of all those entering the village offices as per the workplace health

and safety regulations. Those individuals with high temperatures are then referred for testing by Evergreen health nurses;

• Village management has built-in support structures to include assistance with grocery and other supply shopping, including pharmacy items, to protect residents from exposure at shops;

• A counselling hotline has been established for mental health support for the residents of all villages;

• A team of volunteers conducts daily check-in telephone calls to those residents that require support to combat loneliness, isolation and possible mood disorders;

• Nursing staff conduct regular rounds of villages to assist with any home healthcare procedures and daily living activities;

• Evergreen Lifestyle management prepares regular forms of communication in order to keep in

contact with residents. This includes updates on Covid-19, home exercises designed by its physiotherapy partners, along with brain teasers and crossword puzzles;

• Residents have been provided with cloth masks for their village walks along demarcated social distancing pathways;

• Medical masks and PPE are worn by all healthcare workers;• Constant training on handwashing and other Covid-19 prevention strategies are

circulated to staff;• Evergreen Lifestyle have developed a comprehensive plan for a basket of care in collaboration

with medical aids, should the need arise to do clinical care for Covid-19; • Sufficient contingency planning for medical stock and PPE has been done;• Collaboration with two medical emergency assistance companies serves to further reassure

residents that ambulances will be dispatched immediately should they have a medical crisis. This process is supported by Evergreen Health staff.

Issue 82 • Asset Magazine 4948 Asset Magazine • Issue 8248 Asset Magazine • Issue 82

Interview with Shadrack Mthethwa Isibonelo Property Services

Shadrack Mthethwa, CEO of Isibonelo Property Services


Isibonelo: social integration and sustainability create a winning formula

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When Covid-19 lockdown descended over communities across the length and breadth of South Africa, for many business owners it felt more like being locked out than locked down. Shadrack Mthethwa was one of these. As CEO of

Isibonelo Property Services, he’s used to keeping a close hand on the company’s brick-and-mortar assets so having to stay away didn’t come naturally, as he tells Asset. “The entire Isibonelo team is in-house from leasing to property management to financial management. We’ve not stopped working over this period. With assets like ours, we need to be completely on top of things at all times.”

He’s referring of course to Isibonelo’s shopping centres which are an integral part of the company’s precinct developments in rural areas. Tshwane Mall near Mamelodi, a 60,000m² regional mall which opened in November 2019, is the jewel of the portfolio. With more than 150 tenants it’s a retail drawcard for the surrounding communities. The impact of lockdown on it has been tough, not least because of the stringent regulations governing access to the centre and sanitising.

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“In all our centres we’ve fully complied with what the law demands of us,” says Shadrack. “We cannot deviate from what is required and neither can our tenants. Where we have a challenge at both Tshwane Mall and our smaller centres is when shoppers have desires and needs which don’t align with the procedures stipulated by the Department of Trade and Industry.” Management’s unyielding approach has perhaps contributed to some customers simply staying away but, as Shadrack acknowledges, trading densities and turnovers were hardly going to be left unscathed by the events of the past two months.

“At Tshwane Mall, Pick n Pay is our anchor grocery retailer and they’ve traded throughout. It’s a 3,000m² store but its turnover has halved. From footfall of approximately 9,000 per month they’re suddenly looking at 4,000. Spar was due to have opened by now but has had to delay until the end of July because of being hamstrung by lockdown.”

Circumstances have necessitated intense negotiations with tenants in respect of rent due.

With Isibonelo centres located at transport nodes, shopper numbers were additionallyaffected by the social distancing measures implemented inside taxis and buses. In many cases taxis simply stopped operating because the numbers didn’t make it worth it. “It’s a rough one. Our smaller retailers have been


hit hard so we are talking to them. They have taken a huge knock.” The other side of the coin, as he admits, is those businesses which management knows have done well but use Covid-19 as the excuse to demand a rental holiday.

Shadrack and his team have carved out a solid and well-respected niche for themselves as property experts who have hands-on knowledge of rural communities and how best to uplift them through sensitive and sustainable developments. The desire to place social integration at the heart of all their projects underpins their vision. “We don’t do shopping centres as such,” he emphasises. “We do precinct development. In other words, we don’t just put in a shopping centre.

Three photos of Tshwane Regional Mall


We create mixed-use precincts which must be relevant to the economy of the area and the needs of those living there.”

One of their current projects is in Breyten near Ermelo. He explains that residents have to travel at least 50km to have access to “decent shopping”. The 50,000m² Isibonelo precinct will smooth out the pain of a long journey which also eats into modest household earnings. And while retail is an integral part of the development, there’s much more.” We’re putting in a large hardware store to support all the building taking place in the area, a filling station, housing - which includes apartments - as well as an educare component to support local education and upliftment needs.”

Isibonelo is a strong proponent of the need for a developmental shift away from urban areas, but not just to fill the vacuum created by a decades-long focus on densified areas.

“We want to create towns for people who work and shop in urban areas but don’t actually live there. Towns with all the services the community needs – banks, clinics, transport facilities. These towns can be a springboard for further development which will decentralise essential services and alleviate some of the problems surrounding social responsibility for the government. If you live in a town, work in a town and can entertain yourselves in that town, then other facilities will soon be drawn to open there.”

Their projects on the border between Mpumalanga and Swaziland are, perhaps, textbook examples of what they aim to achieve through their developments. Oshoek to the north and Lobamba to the south are ambitious mixed-use precincts. They are designed to upgrade the standard of living for the rural communities clustered there which include government employees, teachers and


Three photos of Oshoek mixed-use development on the N17 close to the Oshoek border post near Swaziland


border policemen many of whom currently live in mud huts. Work on Oshoek will start soon and is expected to be completed over a 24-to 36-month period. Legalities at Lobamba are in the process of being wrapped up.

Apart from retail, Oshoek will offer formal housing options, a 300-bed hotel, conference facilities, an educampus with a range of educational opportunities, a Mediclinic geared to do minor surgery as well as a Motor City.

“We’re providing affordable and comfortable homes for the people who live and work here, as well as corporate facilities so that businesses can operate professionally. The border closes at 10pm so we’re creating a hub where people can stay overnight if they’ve spent the day at a meeting in Oshoek or have come over the border to shop. The


Motor City will mean residents don’t have to travel 100km to buy a decent car or get help from a garage.”

Interestingly, Isibonelo has layered a cultural conduit into Oshoek. “There’s a big economy around culture,” says Shadrack. “It is a commodity which we must take into account, especially in an area like this which hosts festivities and events all year round. We’re planning a vibrant cultural village here, showcasing the crafts, the traditions, and the food of the Swazi people.”

Their “Jewel of the North”, Tshwane Mall, is a huge source of pride to the company not only because of the high quality of its architecture and retail offerings, but because it too epitomises what Isibonelo wants to achieve: sustainable and quality developments for rural communities complemented by ancillary facilities. Shadrack believes Tshwane Mall is a great model for their vision of social integration, and has been the catalyst for a harmonious and cohesive growth hub.

“We have brought a first-class mall, designed by SVA and comparable to the best in the country, into a black township. Spar is here, MPG is here, Pepkor is here, Dis-Chem is also here. Negotiations with TFG and Woolworths are progressing well. Tenant installations are actively in progress. We have created a transport hub serving 67 taxi routes, with 300 buses moving in and out all day, and have a train service to Pretoria. We’ll have a mini 50-bed hospital soon with a small theatre.”

Proposed Lobamba mixed-use development on the fast growing corridor of Swaziland on the road from Mbabane to Manzini


In addition, says Shadrack, attractive kiosks have been provided for the 600 informal traders who were previously occupying a dusty section of the site.

So where to from here? Are there further develop-ments in the immediate pipeline? No, says Shadrack. “If you are ambitious, you can come up with scheme after scheme, and research will tell you that your ideas are good. But, in my experience, you must have sound practical knowledge of the areas where you want to work, and your ideas must be sustainable for the communities they’re pitched at. To build is never an issue, but will your development make money and ultimately be sustainable?”

He stresses that precinct developments should not cannibalise neighbourhood businesses, must add diversity to the area and complement both the way of life of the chosen market and the environment.

“We want to turn around what we have, and make sure that every element works well and profitably before we move on anywhere else. It all takes time. Our goal is to leave an indelible fingerprint on everything we touch.” A+

Sharon Hambley, front desk

Vusi Thela, administration and registry

Andiswa Lobelo, property manager and development

Khuthadzo Rathokgwa, project manager Patience Dlamini, HR/finance Silindile Longwe, PA, office of the CEOZandile Mkondo, property management administrator

Interview with Shadrack Mthethwa Isibonelo Property ServicesTh

e Te

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Interview with Gavin Tagg Retail Network Services

A paradigm shift in retail is on the cards

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Gavin Tagg,MD of Retail Network Services


Retail strategist and MD of Retail Network Services, Gavin Tagg, is figuring out the ‘new normal’ of retail

and is starting to see opportunities as the industry begins to rebound. In conversation with Asset, he’s both pragmatic and cautiously optimistic: a paradigm shift in the way the industry operates is inevitable if it is to bounce back successfully, albeit slowly. He believes this shift could act as the catalyst for a new dynamic to enter the retail space.

With retail having opened up further on 1 June, Gavin has been encouraged by the fact that many of the retailers he deals with are achieving reasonable turnovers: 70% to 80% of what they achieved in the same period last year. In fact, he says, some figures are up on 2019. Whether this is due to reactive consumer behaviour after being let loose from Levels 4 and 5 of lockdown is hard to say. Only time will tell.

“We’ll have to see if it is sustainable,” says Gavin. “Consumer behaviour is going to be based on economic recovery. It is critical to get the economy going because unem-ployment is growing. The longer the delay, the more the damage. We won’t easily recover if the damage gets any worse.”

He certainly isn’t dismissing Covid-19 lightly. The threat is very real and case numbers will climb, but centres and retailers have to work with it and minimise the inconvenience for everyone.



He believes it is essential that the industry creates an environment in which shoppers feel the risk of infection is low. Environments which are sanitised and well-managed will instil confidence.

“Shoppers will carry on as usual if they know they are respected and sense it is safe and comfortable to shop. We, the landlords and the retailers, need to ensure our centres and stores support this sense of safety and comfort. If we take the necessary precautions we’ll get through this, and there’s every chance people will flock back.” Landlords who are able to get this right will have a huge advantage in effectively changing shopping habits and creating loyal customers for many years to come.

Gavin believes the same principles apply whether centres are in urban areas, rural communities or in townships. Centres in the latter may be more difficult to manage because they are the hub of township nodes and social distancing may be problematic to enforce. For many of their residents, retail options are limited and from a convenience point of view they have to go to their local centre to shop. But, don’t be under any misapprehension that these shoppers will expect any less than urban ones, says Gavin. They will also want to shop where it’s clean and safe.

Interestingly, he comments that with lockdown came a form of de-urbanisation. Many South Africans returned to their home villages because


Harvest Place, currently being developed in Glen Marias, Kempton Park, planned to open end 2021


they felt safer there than in densely popu-lated urban areas. While the move may be temporary, if significant numbers of people lose their jobs it could become more permanent. These ‘urban migrants’ have been exposed to more sophisticated shopping environments and service levels in larger towns and cities. They will be knowledgeable and want safe retail options and good service. And with WiFi available even in the most remote areas, the locals are also not oblivious to what’s going on in other parts of the country.

We asked Gavin what changes we can expect to see across the industry’s spectrum of centres. Rural and township centres will experience no change whatsoever, he says. As long as the money is there from State grants or jobs in main centres, these consumers will continue to shop. For large, urban malls the experience may be some-what different. Based on what happened when overseas malls opened, South African shoppers may become more selective, opting to shop in smaller centres which offer more caring and personalised service.

“There’s been a drive back to shopping local for a while. Now having been through lockdown I think a lot of people will come out looking for more specialised stores that care about them. They no longer want to be treated as part of a consumer sausage machine. As a landlord you’ll have to provide retailers and services which match the profile of this type


Country Mall, currently being developed in Dalpark, Brakpan – planned to open in April 2021

of consumer. You can’t just select the first retailer who wants to sign a lease because all you’re interested in is the income stream.”

From a merchandise category point of view Gavin expects no changes except in fashion. In his view there are too many fashion stores in urban centres whose offerings are unexciting and secondary. He sees nothing spectacular in their ranges nor in

their turnovers. He believes properly curated fashion will shift to super-regional malls in the future, where it will be showcased in flagship stores with top quality merchandise, good stock levels and superior customer service.

“Centres of 25,000m² to 30,000m² will close many of their fashion stores. With these retailers – not all of them – it’s too much of a battle to shop in their stores. The merchandise

selection is poor, and the service is shocking. They blame high rentals for their problems, but their turnovers are low because they’re just not putting their best foot forward as retailers.”

He cites centres such as Fourways Mall, Mall of Africa and Sandton City as locations where a category like fashion can shine in large showcase stores which shoppers will



be drawn to. “I think there’s going to be a shake-up like this in centres, otherwise people will end up going online. You have to create an experience that draws them in and do it properly. For too long retailers have just expected consumers to keep on buying, even if their stores are not up to standard, are unattractive and there’s no service to speak of.”

The growth of online shopping is being carefully tracked by Gavin and his team. It’s clearly of relevance as people become more tech-savvy and, post-lockdown, feel more comfortable purchasing online. How soon is it likely to be at the expense of brick-and-mortar space, we asked. Not for a while, if ever, according to Gavin.

“The International Council of Shopping Centres’ most recent report on the subject tracked retailers over a period. They looked at online stores, offline stores and those that offered both an offline and an online presence. Those retailers who offered both were the most successful. Shoppers may ultimately make the purchase online but they still want to engage with a brand physically and get to know it.”

A resurgence of smaller home-grown stores, often termed ‘mom-and-pop’ stores, could herald another shift in the shopping centre landscape. In the rent-relief discussions being held all over the country Gavin says leniency is being shown to these smaller operators.

They add freshness and variety to tenant mixes. If large spaces become vacant when nationals reduce their footprint or exit a centre, Gavin says it’s an ideal opportunity to create smaller spaces out of one large space and introduce new retail into your mix.

“In all the malls we’ve developed we have 30% more shops because we make space for the smaller retailer. I’ll divide up an area to accommodate five shops of 50m² each, for example, and add something unique

and special to the mix. We still meet the banks’ requirement for a certain number of nationals to be present from an income perspective.”

As lockdown levels are lowered, the future of food courts and restaurants in shopping centres is a source of concern and intense discussion. How will they operate? Will they attract custom? Will they still be viable? Are turnover rentals the way forward? These are just some of the questions occupying the minds of retail strategists like Gavin who has

Blueberry Square, currently in development next to Eagle Canyon in Honeydew, planned to open March 2021

been exploring how overseas malls have dealt with the issue.

“In the USA restaurants have cut down the size of groups to six people and have consolidated their menus to include a smaller number of items, enabling them to create really fantastic specialised dishes as opposed to a menu of mediocracy. I think sit-down capacity is probably going to have to reduce by 50%. They’re not going to do the turnovers they’ve been used to doing at peak times. Restaurants are really going to


have to ‘find themselves’. There are still so many unknown issues. Many food courts are making use of apps. Diners register on them, pay online and get a call to collect their order when it’s ready.”

Owner-managed restaurants are often the cornerstones of their communities, says Gavin, and it’s important to have places like these in your nodes. He looks forward to seeking out restaurants in larger centres and inviting them to reinvent themselves in smaller, open-air centres where they can offer an intimate and friendly dining experience to locals.

While the Covid-19 pandemic has shaken the world to its very foundations, it also presents a huge opportunity for landlords and retailers to deal with unresolved issues, and face necessary changes as well as unforeseen innovations together. Gavin says it is as if the Fourth Industrial Revolution has been fast-tracked by ten years.

“Change is happening now when we thought we had years to prepare for it. One of these changes is that people have been forced to work with and via technology while they’ve been in isolation. Now as lockdown is eased, people will realise that they appreciate the human touch and the social enjoyment which comes with shopping and dining with friends and family in a centre.” A+

#WeLoveOurMalls


Social distancing at a shopping mall


Barely six months ago Asset spoke to Patrick O’Connell, operations director of Spectrum Valuations and Asset Solutions. In our conversation with him, Patrick emphasised the critical importance of property valuers having an

understanding of prevailing economic conditions at their fingertips. But not just economic conditions. They needed to have a grasp of both national and international occurrences which could have an impact on valuations when putting projections in place for clients. Covid-19 however, has evaded everyone’s grasp. From presidents to financial analysts, the virus has been the cause of the biggest speed wobble this century. Some have even predicted that it has delivered the most severe shock to world economies since 1929. Where does this leave property valuation?

Patrick is bullish and calm. “It’s an interesting question. In short, not much has happened in the way of new, serious empirical evidence leading us to behave any differently when it comes to valuing property. But, we have never been faced with a situation like this before, so it is a challenge. The valuation process is about interpreting what the market is doing and applying this analysis to valuations. If you look at international valuation practices as reflected in the RICS publication which was issued in response to Covid-19, the advice given is that you cannot rely on historical evidence to project valuations going forward. That makes a great deal of sense and I subscribe to that. So the question begs to be asked: what do you do now as regards valuations?”



Property values set to sweat but fallout will be limited

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Spectrum Valuations and Asset SolutionsInterview with Patrick O’ Connell

Patrick O’ Connell, operations director of Spectrum Valuations and Asset Solutions



He clearly senses that it’s not going to be easy to give clients a view on what they can expect to see happening with their property values going forward. “My immediate go-to is that nothing should change. There should be no immediate or dramatic corrections. There is a belief in some quarters that listed property is overvalued to the tune of fifteen to twenty percent. Is this the case? In some instances it may be correct but as a broad statement I don’t agree.” He doesn’t believe the market needs to correct as long as everyone keeps their head and avoids panicking. And he certainly advises against taking a one-year income capitalisation approach to a valuation, an approach he regards as dangerous.

So how dramatically is the office market, for example, likely to change post-Covid-19? While Patrick agrees that working from home has probably proved an interesting and enjoyable experience for many, he’s not convinced that the initial thrill has longevity.

“You need a strong discipline to work from home. Various asset managers I’ve had discussions with say that their office clients are looking forward to getting back to a more collaborative environment.” That being said, there’s no underestimating the scale of spatial and behavioural changes which will accompany a return to the workplace, although Patrick believes any such changes will have a long-term positive effect on the office environment.



“We’re actually aware of an increased call for office space, but for 9 to 12 months only. Now that tells me the market is saying: everything is likely to rectify and settle in that period, and Covid-19 will be on its way out by then. If that is the case, then the impact on the office sector is unlikely to be significant.” What he does envisage is flattish projections on income growth as far as rentals are concerned with rental reversions tripping backwards a little. One significant market adjustment is that office sector asset managers are generally building only to specific tenant requirements and not to spec, so a slow-down in development is on the cards. With an oversupply of A-grade office space, there will be no rush to gamble on creating even more. Patrick predicts an uptick in vacancies as some tenants fall by the wayside, with forecasts projecting that five to ten percent of GLA will be impacted in the office sector.

In the interim, values are remaining relatively constant and the market is likely to remain flattish for the next two to three years, according to Patrick. If there’s any negative shift it will be within a 5% range at this point which is not a major shift. As valuers, Spectrum is factoring in a small amount of risk in the exit cap rate. “We look at what the market has been interpreting in terms of the entry cap rate and we apply a bit of risk to the exit cap rate depending on the strength of the covenant going forward and the renewal period.



“We also look at where the property is positioned in the market at the time, in respect of its rental price. On an A-grade office portfolio we’re factoring in 0.5% on the exit cap rate for the most part, and on B-grade properties up to about 1%, so entry would be 9% and exit would be 10%.”

Asset asked Patrick whether retail properties were facing a mauling. The JSE tells a story, he says. Markets have already factored in some risk, in his opinion, with initial yields on REITs offering up nothing below 8%.




Spectrum had already started factoring in risk as early as February this year when analysing two retail properties which were due to be offloaded by their owners. With the retail sector looking grim and a downgrade on the cards for South Africa, the malls were sold at initial yields of 8.5%. Now, with shopping centres having been closed for two months, the Property Industry Group (PIG) made up of the REIT Association, SAPOA and the SACSC are trying to normalise income streams. “What we’re seeing in budgets we’re working with are rental deferments, not write-offs, and these are being factored back into cashflows within the first year. This means there should be no impact on the property values if incomes are normalised in the first year. For me, the bigger concern is rental reversions.”

While Patrick views South African consumers as resilient, there’s no denying that many people have been adversely affected by the events of the past months and a relatively extended recessionary environment is unlikely to be avoided. Retail vacancies are inevitable and the spectre of Edcon raises its head in our discussion. Patrick appears cautiously optimistic that the overhaul of exclusivity clauses in many leases will make filling of large spaces, such as those vacated by large apparel retailers, more viable and that turnover figures will start to stack up again as South Africans return to malls. “We’re in for a bumpy ride but not a wrist-slitting ride.”

Negative economic sentiment, a REIT sector bloodbath on the JSE and a pandemic which has not yet peaked in South Africa. Should property owners be panicking? No, says Patrick. “Study the nuts and bolts. Property can still maintain its value. Any negative movement will be marginal, definitely no more than five to eight percent. If funds are managed properly and there are sufficient cash reserves then there’s no reason for property values to be sweated and bled.”

He stresses that there will be pressure on all fund and property managers to scrutinise expenditure across their portfolios. With rates and utility bills the biggest expenses across

properties, there is hard work ahead to drive these down. “Owners need to walk with their tenants if they are to survive. Listed funds have had a good run and now is perhaps the time to plough back. This sector is far more mature and sophisticated than it was ten years ago. If there is no panic, it will hold steady.”

If you thought that the field of listed valuations was a complex and exciting space six months ago, it could be viewed as off the Richter scale in June 2020. All things being equal, Patrick maintains that astute management of assets, intelligent and well-considered decisions, and supportive symbiotic relation-

ships will see the listed sector ride out the storm. Remaining close to your valuer will be an invaluable tool in the process.

“Build your relationship with your valuer and let him run desktop scenarios for you more frequently so that knowledge of your asset portfolio is always totally current,” he advises. “No information out there at present can tell us exactly what to do, and yet property remains a good bet. Where else can you offload your money? Overseas interest rates are non-existent. Their markets are facing the same turmoil as ours. You’ll sweat for a while but hold on to what you have.” concludes Patrick. A+


Interview with Sabine Dall’Omo Siemens

Siemens FABRIC: combining smart cities

and fashion design


Siemens is merging fashion and technology to help African cities speak louder and be smarter in a changing world through a number of initiatives, starting with FABRIC. The FABRIC project creates maps of cities and areas using data which in

some African cities has never been collated and applied to projects before. With the aid of this Siemens technology one can build intelligent, interconnected city ecosystems. These systems can learn, predict and respond.

Data swirl, Cape Town

Fabric representing Newtown, Johannesburg

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For FABRIC, Siemens combined this data with fashion. The company plans to use the data for other applications and wants to show people in African businesses and governmental positions especially those in city planning, that its technologies can help their cities to flourish.

The idea of a smart city is far more than a buzzword in Africa. In fact, the people of this continent have embraced the concept and are driven to make the cities in which they live smarter. Cities need to change

to accommodate new citizens and new technologies and this is creating exciting opportunities for the continent.

African cities offer huge potential to become smarter as we enter a new decade. The world is changing off the back of new technologies being integrated into our lives. The median age of Africans is around 29 and there is vigour among young people to develop their own continent, attracting investment and creating products and experiences which can find customers the world over. Sabine Dall’Omo

Watch the full story of how three African cities, their data patterns and three top fashion designers created a fascinating expression of African ingenuity. Introducing Siemens FABRIC, a showcase of how the underlying data patterns of an African city can help transform them into the smart cities of the future. This was demonstrated by using data patterns to create unique African fabrics for Lagos, Nairobi and Johannesburg, which were then expressed through a range of cutting-edge garments that set both the ramp and social media alight.

This has prompted Siemens, the German multinational conglomerate, to play a role in making three major cities - Johannesburg, Lagos and Nairobi smarter while embracing their fashion industries.

The group has created the FABRIC project as a powerful way in which to express how data and technology can enhance the workings of African cities, especially their city centres.FABRIC, which was launched in Johannesburg in August last year, enables designers to showcase their fashion designs while telling an underlying message.

That underlying message of Fabric is that the digitalisation of the industrial world is quickly becoming the biggest transformation of our time.

Fabric representing Industrial area, Nairobi

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It highlights how data combined with smart technology will ensure that tomorrow’s cities are more connected, efficient and powered. Siemens collected data about these three influential African cities and then created patterns using that data. A pattern was created for each of the cities.

Three iconic African fashion designers were then brought on board to create twelve extraordinary outfits, four per city, which could then be exhibited and sold in Africa and abroad. The designers include Kenyan John Kaveke, Nigerian Zizi Cardow and South African Palesa Mokubung.

CEO for Southern and Eastern Africa, Sabine Dall’Omo, says FABRIC has combined the power of technology and fashion in a new thought-provoking way. The company has also collected data about SA’s richest commercial area, Sandton, as well as Gillooly’s Interchange, the busiest of its kind in Africa.

Fabric representingGillooly’s Interchange,

Johannesburg




Beyond large cities, Siemens is also contributing to areas in cities which have the potential to become major metropolitan areas. Alexandra stood out in South Africa for being important to peoples’ lives while having a need for much better infrastructure and services, Sabine says.

This prompted the company to do work with Alexandra as Siemens wanted the historically significant area to get a chance to punch a step above.

Fabric representingSandton CBD, Johannesburg



Alexandra could become a smart city and let go the shackles of its past as a labour camp while keeping its culture. Through the mapping of the area, Alexandra “can be seen”.

Siemens surveyed citizens of Alexandra, asking them to assess what they saw as they drove and walked through the former township’s roads. Then Siemens used its technologies and this info to plot an image of Alexandra.

“We saw how difficult it is to live in these bad conditions. Many structures were badly built. There was so much poverty, and in places, no infrastructure. We found most of the decent Fabric Legae Larona video


infrastructure was on the edges of Alexandra and not in the middle where most of the people live,” she says.

Siemens believes Alexandra and other former townships can be greatly improved. Siemens is now able to provide data to people and businesses in Alexandra so that they can get an idea of where infrastructure needs to be implemented, where populations are denser and where people work.

“Alex is a story which isn’t told and that needs to change,” the Siemens team explains. The company also found businesses which it could help.



Legae Larona was one such business which was on the brink of going out of business.

This clothing manufacturer made school uniforms for people in the area. Siemens paid Legae Larona to make fabric cloth masks to be worn as protective equipment during the Covid pandemic. More than 30,000 masks have been made.

Speaking holistically and looking forward to the next few weeks as people return to work while the Covid-19 pandemic continues to be

a part of our lives, Sabine explains Siemens’ smart technologies can be used to help make things safer.

They can monitor how many people are in buildings at any time and if they are practising adequate social distancing. She says software which was designed for energy consumption can also monitor if there are too many people in a room, which enables it to work in managing work during the pandemic.

Asked if there are there good prospects for African cities, including Alexandra, to become smarter than they currently are, given the challenges economies are facing, she says one major start would be for transport to improve. Transport needs to be safer and better co-ordinated to give people an opportunity to participate in the economy.

Sabine says there are also opportunities around using legal electrical connections and that all cities and towns in South Africa need regular adequate access to water. In Polokwane, as much as 60% of the water supplied is not suitable for consumption she says. She is however optimistic about the future of African cities.

“Things can improve. In the past few weeks, people learned how to communicate through using technology while social distancing.” A+


Fabric representing, Ilupeju, Lagos



WhiffAway expands its footprint in Africa

WhiffAway, a leading manufacturer and supplier of waterless urinal technology, biological solutions and closed systems, has cemented its foothold on the African continent over

the course of the past year. Founded in 1992 in the UK, the company has experienced excellent demand for its products and has expanded rapidly. Its products and services are now used in over 35 countries including South Africa, where it opened in February 2019 in Johannesburg, the commercial heart of the sub-continent. It also has representation in Cape Town.

Conscious of the environmental crisis, WhiffAway Group Directors James McLean and Sebastian Marshall set out to provide technology which would reduce the water used in urinals. Almost 30 years later, the product has served to save over 300,000 Olympic-size pools’ worth of drinking water - around 360 litres a second. Our founder, Valerie McLean, born in Kenya, exhibited vision and passion for her product that Sebastian says is still felt in the company to this day.

Headquartered in High Wycombe, Buckinghamshire, WhiffAway Group provides waterless urinal technology that makes a major, measurable contribution to environmental sustainability while also improving the workplace experience and creating job opportunities.

Saving water, energy and moneyAside from the obvious water savings, our system also uses less energy as there is no need to pump water in to flush urinals, offering an embedded energy and carbon saving. Moreover, on new builds, there is no need to plumb in cold feeds to urinals, leading to an estimated


Waterless Urinal Technology WhiffAway

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30 percent saving on project costs and the environmental savings to match. The system is also non-hazardous, and all cleaning materials are environmentally friendly. Our patented systems save money and overcome common problems such as urinal odours, blockages and flooding while making washrooms more hygienic and pleasant places to visit.

Starting in 1992, the WhiffAway waterless urinal technology story is all about sustainability. Company founder, Valerie McLean, was seeking a project which would make a big difference. Her preliminary findings demonstrated that institutions and organisations were actively exploring gas and electricity as a means of reducing costs and being more sustainable. But it became increasingly evident that water was being overlooked because of the relatively low combined cost of “water in and sewerage out” at the time. This lack of focus was the start of her passion for water conservation and helping others help the environment. The environment was not typically at the top of the agenda at the time.

Her vision and determination have enabled hundreds of companies to save money, measurably improving their environmental sustainability credentials, saving an estimated 750,000,000 cubic metres of water and £1.9 billion for the industry.

As a continent in which water scarcity is an ongoing challenge in many regions, it made sense to explore Africa in the expansion of WhiffAway’s business. In addition, many countries are now embracing greener technologies and ways of building, with African countries, including South Africa, now having their own Green Building Councils.

WhiffAway has already fulfilled orders for its waterless urinals for a number of projects in South Africa, and has sold over 200 units, with another 431 units on order to date. Those choosing to specify or install WhiffAway’s products can hardly go wrong with prestigious examples such as their use throughout Heathrow Airport being a testament to the product quality and durability

Operating as a global entityToday, our day-to-day operations span four continents and five offices, with technicians on the road providing services across WhiffAway’s core categories of interest. As a group, our culture and values are simple:

• Always stay ahead of the competition

• Listen to our customers

• Deliver first-class products and services each and every time

• Tackle problems with courage and integrity

• Set the right example both in the internal and external environment

In the current economic climate, we feel being bold enough to accept change and collaborating with experts within our industry will not only drive continuous improvement but also help us, as a business, achieve sustainable profitable growth. Over the last five years alone, we have grown on average by over 20 percent annually. This has allowed us to make controlled acquisitions within our industry, with regional offices in Germany, the UAE, South Africa and the USA. We now boast group revenue just shy of $12 million and nearly 100 members of staff. In turn, this has allowed us to develop and pioneer our “Smart Washroom” technology.

As a service company we wanted to use existing technology to help us see issues as they happened on our clients’ sites. Our question was simple: “Wouldn’t it be great if we could alert our customers to a problem, locate it precisely, and above all else, notify them before they even knew about it?”

Using our experience as a market leader in waterless urinal technology, biological solutions and closed systems, we have now developed and installed the world’s first fully connected Smart Washroom platform and 3D Digital Twin.

“Today, our day-to-day operations span four

continents and five offices...”



In effect, the use of your bathroom facilities can be monitored remotely to allow regular maintenance to be completed before problems occur – while simultaneously offering a return on investment and improved customer satisfaction.

From a social perspective, we are also turning waste into energy with our academic partner, University of West England, through their MFC stack technology. The technology can generate power from urine, treating the waste and the by-product and putting it back into the land as a soil inoculant. This can be used, for example, to power bathroom lights or remain as stored power to be used elsewhere. The technology is backed and recognised by the Gates Foundation and Oxfam and, when showcased at Glastonbury Festival, was aptly named “peepower”.

Overcoming challengesOur technology no doubt upsets the conventional behaviour, outdated practices and code requirements typical of the industry, and implementing it continues to be a challenge. Overcoming embedded perceptions arising from poor practice in the competitive landscape has also been challenging.

Through recognised events in our sector, such as the Facilities Show, the CBRE Supply partner Event, ISH, The CSSA Showcase and iWFM Awards, we are building awareness for British innovation and promoting best practice in our core categories of interest. Our goal is to set an industry standard, inviting our competitors to raise the bar to improve the perception of our technology on a global scale. Political drivers, such as the deregulation of water authorities, are starting to create increased interest in our water-efficient and smart technologies because of continued price increases in water supply and sewerage.

The subject of plastic waste is also becoming high on the political agenda and, in particular, how it is recycled as part of an end-to-end process. This is, in part, being driven by wide media coverage of the effects of plastic in our oceans, with global fast-moving consumer goods companies such as Unilever taking the lead in moving away from single-use plastics, day zero being announced in South Africa and activists like Greta Thunberg building awareness of the wider crisis surrounding the environment.

Through investment in continuous improve-ment and defining standards, we will strive to continue developing value-added inno-vation, whether that be supporting water conservation initiatives, making buildings smarter and more sustainable or harnessing waste to generate energy and support the developing world. A+

For more information please contact: Doné Dunkley WhiffAway SA (Gauteng & Northern Cape) +27 82 432 [email protected]

Michelle Bosman WhiffAway SA (Eastern & Western Cape) +27 79 080 [email protected]

Facts about WhiffAway Group: • Directors: Valerie McLean, Sebastian

Marshall and James McLean• Established: 1992• Headquartered: High Wycombe, UK• No. of employees: 92• Categories: Conservation, Infection Control

and Smart Solutions

Website: www.whiffaway.com

“Saving an estimated 750,000,000 cubic metres

of water and billions in cost for the industry...”



Opinion by Ivan Cornet African Real Estate

African real estate post-Covid-19:

a forecast

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By Ivan Cornet, managing partner, Africa real estate, Latitude Five

Lagos, Nigeria


Despite the number of reported Covid-19 cases still increasing across Africa, most countries which

implemented lockdown measures are already easing them. This is primarily due to economic concerns, compounded by the significance of the informal sector and a lack of social safety nets. Most African economies have been severely affected both by the pandemic and its global impact, especially those reliant on commodity prices. The IMF foresees contraction of the two largest African economies, Nigeria and South Africa, by 3,4% and 5,8% respectively in 2020. The damage already inflicted on some sectors, such as regional airlines now on the verge of bankruptcy, will likely spread to all sectors including commercial real estate.

At this stage of the pandemic, it would be imprudent to attempt to predict all long-term impacts across a diverse continent and to map out a definitive landscape of African real estate post-Covid. Some emerging trends, risks and opportunities are however already notable.

Uncertain future for hospitality and tourismIt is widely acknowledged that with inter-national borders closed, as are most hotels and resorts, Covid-19 is keeping away the 37 million international tourists who sustain Africa’s hospitality and tourism sector annually.



Casablanca, Morocco



Morocco is expected to lose USD 3,5 billion in tourism income in 2020; in Mauritius, where tourism and travel account for approximately 25% of GDP, 2020 can be considered a write-off even if some cling to the hope of a successful return of European tourists by the end of the year. This bleak outlook is likely to apply to all major African destinations. Many African hotels are also dependent on business travellers attending meetings, conventions and exhibitions or travelling with incentives. Few of these have remained open, and then only at the request of governments who need to accommodate healthcare personnel or Covid-19 patients.

The example of China demonstrates that even as the health crisis abates, occupancy rates across hospitality and tourism categories recover only marginally and slowly. We expect them to remain low as long as travelling is deemed “risky”. In Africa this likelihood will be reinforced by increased political risk as economic and social crises unfold in several countries. Despite African governments and organisations promoting local and regional tourism as a lifeline, these efforts are unlikely to compensate for the loss of income from international tourism in the short to mid-term.

In the long-term, trends previously causing only minor disruption to business and leisure travel flows will, in all probability, intensify. Businesses will reinforce cost-cutting policies in light of their positive experience with remote work, online meetings and virtual conferences.

With African air travel being the most expensive worldwide, it is forecast to be cut whenever possible, signifying an evolution in local business practices still requiring in-person contacts. In addition, increased environmental awareness, social distancing concerns, as well as government-aided promotion of competing European holiday destinations - many of which are struggling for survival - means that long distance leisure travel will not bounce back to its current levels soon.

Signs of long-term resilience in retailThe negative impact of the lockdown measures on retail in Africa was immediate, with a variety of businesses shuttered or

operating on restricted schedules. This impact was somewhat mitigated by the relatively short duration of government measures and/or their ineffective enforcement, in some cases. Deriving income through online sales or click-and-collect operations is virtually non-existent in countries with poor ICT (information and communications technology) infrastructure and a culture of in-store shopping, though it proved a valuable alternative for some operators in South Africa and Mauritius.

For similar reasons, we think African retail as a whole will show more resilience in the medium- to long-term than in more advanced markets such as the US or Europe.

ICT constraints and cultural preferences will mean that shopping centres remain leisure as well as purchasing destinations. Local and convenience centres, such as strip malls, will remain essential to communities and continue to attract shoppers less disposed or able to travel any significant distance to large regional centres. We can expect them to continue to perform. Larger centres, on the other hand, will remain under pressure due to oversupply, following a record number of developments over the last decades whilst the number of tenants for these properties has not grown in the same measure.

Evolution in office spaceRemote work and online meetings have rapidly become the new normal and could lead to a global revolution in how office space is located, designed and used. The full scope of this will emerge over time, as businesses reorganise their operations, managers and employees determine the level of interaction they require and office space providers adapt to new demand. Although Africa will not be immune to this trend, it is likely to be more nuanced than in other markets. Here again, ICT constraints play a role, with much lower levels of reliable internet connection disallowing wide-spread adoption of remote work. Perhaps more importantly, social customs and business practices in many African countries still place high value on in-person contact and conventional organisational structures. In fact, offices and the rituals of attendance make for important status symbols.



African retail is expected to show more resilience when compared to the US or Europe


Co-working and shared office space, already emerging across the continent prior to Covid-19, may hold steady. Business will need to strike the right balance. Cost-conscious businesses may downscale their premises but others may need to retain a sizeable office presence as much for operational purposes as for local credibility. The office format is however already different in Africa where the open floors and large communal areas common in the US and Europe are eschewed for more separate and closed offices. This predilection may help the African office sector to adapt more swiftly to post-pandemic sanitary and distancing requirements.

Rising starsSome asset classes will stand out in years to come. Logistics is one, with quality assets

already in short supply pre-Covid-19 and now in rising demand as on-line activities develop across Africa. Data centres are worthy of investor interest for the same reasons. Emerging market private equity fund Actis recently announced the creation of a USD 250 million African data centre platform.

Social infrastructure, including healthcare units, may also be in strong demand in the post-Covid-19 context, provided funding can be arranged and suitable personnel recruited and/or trained. Côte d’Ivoire, in the midst of a lockdown crisis, mandated Moroccan hospital company Agentis for the construction of two hospitals and five smaller healthcare units across the country for a total value of USD 150 million, with the support of Deutsche Bank and the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).



Dar Es Salaam, Tanzania

Cost-conscious businesses may downscale their office premises

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Strong development in proptech is one of the most significant changes in African real estate. It was already being promoted pre-Covid-19 to counterbalance lack of market transparency, administrative inefficiencies and high transaction costs across the continent. The further adoption of proptech solutions is forecast to increase in a social-distancing and remote-working context.

As Covid-19 and the economic crisis it has triggered unfold, we should continue to monitor all aspects of African real estate. There are however signs that the pandemic will not revolutionise the sector but rather accelerate existing trends as Africa invents its future real estate market. A+


Maputo, Mozambique


Opinion by Andrew Mason Workspace Focus

By Andrew Mason,WorkplaceFundi

Why you need a workplace strategy now

more than ever!


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The idea that the workplace can be a lever for strategic advantage is by no means new, but it’s one that many

senior leadership teams have failed to act upon. The coronavirus has accelerated the need for change, and we need to reset the dial now and view Covid-19 as an opportunity to redefine the workplace for what will be the ‘new normal’ for your business and the workplace needed to support it.

Post-pandemic and the gradual rescinding of lockdown measures, businesses that can open their doors again will encounter new challenges that had not even been considered plausible previously, even in the most extreme VUCA (volatility, uncertainty, complexity and ambiguity) world.

The return to work for many will be a welcome relief from the rigours of isolation, but organ-isations need to understand that on a personal level this will be overshadowed by fears of a re-occurrence of the outbreak as well as impending economic hardship.

A permanently flexible futureWorkplace and facilities management fail unless the delivery of services match organ-isational requirements. Whilst we live in a massively uncertain time, what we can take as certain is that the world will not be the same when this virus has waned. As the organisational view of the world changes so will their requirements. We need to be prepared for that change.

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Forward-thinking organisations will need to articulate a revised workplace strategy now. Alignment with what will unquestionably be a new set of new challenges will not be achieved by carrying on regardless and hoping everything will be alright in the end.

The remote-working experiment that was being conducted in some organisations will now become a prerequisite for those workers who were able to operate successfully from home during lockdown.

This has undoubtedly accelerated the take- up of remote working but the genie is out of the bottle and workers are going to demand a significant and permanent transition to more of the same. Consequently, organisations will need to invest in technology to meet the needs of their home-working employees to maximise the likely benefits. There will need to be a resultant shift in attitudes and a workplace culture to support this, and the rigidity of an office-only based environment simply won’t be viable or excusable.

A bitter pill to swallowThis will be a bitter pill to swallow but organisations will have to listen to the needs and concerns of their people like never before. There is going to be an accelerated pace and focus on defining the future of work as the future of the workplace experience and worker well-being.

Organisations will need to confront the conundrum of open-plan office and agile working against a backdrop of physical distancing which will remain an essential part of daily life for many months to come. The need to be physically distant from our colleagues will be in our psyche for even longer which will negatively impact much-needed team collaboration and service innovation.

The shift to greater numbers of employees working from home brings with it a whole new set of dynamics. Benefits of removing the lengthy commute will be counterbalanced by the mental aspects of the lack of social cohesion and collegiality afforded by the workplace. Security, communication and collaboration will also be challenging.

These different perspectives are all wrapped up in our notions of work itself. Work as ‘something you do, not somewhere you go’ has become a cliché, but the notion of ‘I’m going to work’ is now having to be critically reassessed.

The death of the office desk and chair has been predicted many times before. Whilst there are multiple notions of work, all work comprises activity and a location. Work and the workplace is therefore about culture and physical space, augmented by technology.




Consequently, a workplace strategy is and will continue to be a key enabler of core business and competitive advantage.

Put simply: if your workplace isn’t working your business can’t perform.

This would be a travesty as the workplace is a crucial asset and one of the organisation’s most expensive, so we need to focus on it now and get it working for us, and not against us.

These warnings expose the reality that the majority of companies are likely to squander

opportunities to use their workplace strategy to drive improved employee engagement that leads to improved organisational performance.

Covid-19 accelerated changeWe have known for some time now that emerging technologies will create job and task redundancies for employees, and that we need to change and adapt to this reality. Covid-19 has accelerated the need to change, so the problems we need to face and the opportunities we need to exploit don’t lie somewhere on the horizon. They are here, and we need to act now.

In a time of economic turmoil, there will be an understandable tendency to further slash already anorexic budgets. There will be reper-cussions, but the reality is that we need to shift the focus and rhetoric from the economic down-turn, junk status and job losses, to proactively managing the transition to new ways of working.

These disruptive forces require organisations to change rapidly. Infrastructure and workplace services need to be agile and adaptable to that change. Only if we are focused on achieving this will we find the opportunity to emerge economically stronger, as individuals, as organisations, and as a nation.

Enabling amazing people to do amazing workThe most influential and successful comp-anies in the world utilise the workplace as a tool for competitive advantage. The workplace is high on their business agenda as a way of enabling their people to deliver the best contribution to their organisations every day, inspired by their experience, supported in their work endeavours and unencumbered by failures in services or systems.

Progressive organisations will recognise that creating and managing amazing workplaces means their people can do amazing work to start growing the business again. This is not about aesthetics, it’s about improving their business performance, employee experience and brand value.

The centrality of the workplace to individual and organisational activity means that the workplace strategy is important at an organisational level because it can,




amongst other things, be used to project an organisation’s purpose and brand, boost productivity, attract and retain talent as well as initiate and support change.

Smart dynamic businesses have long recognised the importance of delivering a differentiated and engaging experience for their customers particularly in the service sector. Why then have we not applied the same philosophy to creating memorable employee experiences in our own backyard?

Organisations need to listenOur world has been turned upside down. To illustrate this, just consider that what we know about the inseparable twins of health and safety is now no longer true. What is safe, like holding a handrail on the stairs, is no longer healthy and what is healthy, like having lunch with your colleagues, is no longer safe.

Organisations will have to listen to the needs and concerns of their people like never before and respond appropriately. People’s sensitivity to hygiene and health security will be heightened to a point where going to work may conjure up thoughts of potential life-threatening risks. The wellbeing agenda will become one of fundamental health and safety for the individual.

Luckily the evidence speaks loud and clear, that there is a strong and proven connection between workplace well-being, happiness, productivity, performance and customer satisfaction and retention.

The value that can be delivered by the workplace strategy will increase as the more innovative companies focus more on the employee experience in its transformation of the work environment. It will require new business skills, innovation and new ways of thinking.

The workplace is a strategic asset and so it is worthy of our renewed attention and the application of new business skills, innovation and new ways of thinking.

The attainment of a ‘winning workplace’ will be the No.1 super-catalyst in influencing business performance.

Prepare for the upturnOrganisations need to prepare and be ready for the upturn when it comes. As bad and as uncertain as things look today, history has shown us that it’s harder to get a company ready to take advantage of an upturn than it is to prepare for a downturn.

We should not make the mistake of looking back on this time in future, and seeing that this down market was our opportunity to catch up with the rest of the world, who are also going to be in a slump. This is when we need to make investments in our people and our facilities and prepare ourselves to capitalise on the economic uptake that is likely to hit in early 2021.

With a good strategy and excellent planning, our workforce and their workplace will be

more stable and productive, and ready to take advantage of the available opportunities.

As Harvard Business Review stated recently:“We know how painful things are today. But there’s no reason you can’t also dare to be successful. And learning how to build a culture based on transparency, financial discipline, trust and respect for people, and a forward-focused outlook, is a great place to start removing the fear that’s pervading your workplace.”

We may still not know what will happen after the virus has abated but we need to plan for the future and prepare our organisations to take advantage of the opportunities that will undoubtedly materialise. A+




Virtual Office Workspace Focus

The future is virtual and flexible

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If you are reading this article at work, it’s likely that your current ‘office’ is your home. The events of early 2020 have propelled the concept of remote

working from a growing trend of the future, to a present necessity for a large portion of the world’s workforce.


Seemingly overnight, many people and businesses have realised that normal work can still take place, even if they aren’t sitting in the same room as their boss and colleagues. Businesses across the world are currently engaging in the largest remote work experiment to date. Over the past few weeks, entrepreneurs and business owners have been forced to reassess the way they carry out their everyday operations, and many have realised the massive opportunity that virtual and flexible solutions present.

Even when the world returns to normal, it’s likely that some elements of this virtual workplace will remain. Businesses that were previously forced to cut costs will soon start to think about growing again. And for many, a remote office environment could provide the flexible and cost-efficient support they need.

What about the virtual office? Companies faced with hard financial knocks could adapt their business strategy making use of a virtual office.

What exactly is a virtual office? It is a registered business address with the administrative functions of a traditional office. Gone is the expense and hassle of maintaining an actual brick-and-mortar work environment. Within the world of virtual offices, daily operations like call-taking and mail-handling can be completely taken care of on a company’s behalf by a workspace provider like Regus.


Although a virtual office does occupy a physical location, its main role is to provide a suite of service-based solutions that allow a company to remotely connect with clients, employees and suppliers – and to create and maintain a solid presence in any market or territory of the company’s choosing.

The concept, first founded in 1994, has become particularly appealing for start-

ups and companies looking to save on the maintenance and upkeep costs that come with traditional office spaces. No matter if your team is working remotely for the first time or your business has been remote from the start, services like virtual offices allow business owners to access the same services offered by a traditional, physical office space, but instead, these services are offered remotely or via the internet.

BenefitsThe benefits of virtual offices extend beyond administrative tasks. A virtual workspace can be a relatively risk-free way for a company to explore a new market or employ a local expert in a fresh territory on an extremely cost-efficient basis.

One small example is that of the fixed landline that comes with a virtual office: rather than


rely on mobile phones and roaming charges, a business can run its overseas operations more cheaply and with no extra cost to clients wishing to communicate across time zones. Those companies just starting out – that need to be more mindful than most of when, where and how resources are being invested – might also wish to consider a virtual office.

Regus provides virtual offices to a variety of businesses all over the world – and with 3,400 locations and growing to choose from, it’s possible to establish a global presence and operate on a global scale with none of the investment required by traditional brick and mortar. No maintenance fees or subscriptions for computer hardware and other equipment means that costs are kept to a minimum.

From start-ups to conglomerates, an increasing number of savvy companies are discovering there are flexible plans to suit business operations of all shapes and sizes.

The future of co-workingOur new way of working may seem like a dream come true for the workforce that has been grappling with the flexibility idea for some years now. Faced with the prospect of a lengthy commute on a sweltering day, either jammed into a packed taxi or a never-ending queue at the traffic lights, many of us have dreamed about that ultimate career goal: working from home. Dreams to design your day to fit in with your other commitments, get a few things done around the house, and pop out for lunch with a friend – surely this is the

answer to the quest for the perfect work/life balance?

Well, yes and no. Little or no social interaction, an endless list of distractions, and no motivation to ditch the pyjamas for something a little more professional - this is the other side of the coin. Yes, the dishes might be done and the bathroom sparkles like a showroom – but what about those missed deadlines? What may sound idyllic on paper can prove disastrous in reality.

The challenges of working from home don’t stop there. Of course, the pitter-patter of tiny feet can be a joy, especially after you’re done for the day. But when you’re trying to prepare a presentation with one hand and using the

other to break up warring siblings, things can look a little different.

Looking to the future, co-working solutions may well have found the sweet spot between the advantages and disadvantages of working from home. It’s all about balance – after all, burnout can also be a big problem in the world of work in the 21st century. Traditional office culture is partly to blame but home-based workers aren’t immune either. Who hasn’t ended up putting in more hours at the kitchen table to prove to the boss that they really are working even though they’re at home? And when the laptop’s left open while you’re preparing dinner, it can be all too easy to carry on with various bits and pieces in- between chopping the vegetables. Having so many options at your fingertips is highly beneficial for businesses, allowing you to choose which services are right for your business and only pay for the ones that you need.

The new way of working will bring with it a need for adaption and now there are other options to working from home. Regus and Spaces have co-working memberships and virtual options which provide access to workspaces all around the globe, without the distractions.

We’re reaching a tipping point. The workspace revolution is coming. A+



Tetris Workspace Focus

An increased focus on health will lead to the accelerated implementation of new workplace strategies. More flexible spaces, protective barriers, sanitisation systems and biophilic

design are just some of the elements that will characterise the offices of tomorrow.

Designing workspaces for the next normal

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approximately 4min

The coronavirus pandemic will have an impact on different aspects of our lives, and one area that will be most influenced in the short, medium and long-term is the workplace.

“The office will continue to be the heart of the expression of corporate culture and identity,” says Philippe Sourdois, managing director of Tétris Italy. “The office is a place of coming together, creating a sense of community. No technology, however innovative it may be, can recreate this. But what is destined to change is the way the workplace is conceived.”

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Cultural changes: the balance between physical and virtual“What we will see is a new balance between virtual and physical, between safety and efficiency, between work and private life,” continues Philippe. The workplace will take on new meaning and should be a place where employees feel safe, where their physical and mental wellbeing is protected.

It will be necessary to take into account a number of factors that are changing people’s behaviour: social distancing, greater attention to health, and an increase in the use of technology that allows remote work. Rethinking workspaces in the short and medium-termIn the short-term, companies will be called upon to ensure safety and a safe distance between their employees by introducing hygiene and safety protocols, and adapting workstations according to government guidelines, which include physical barriers, spacers and careful sanitation of environments. For example, UV lights to sanitize the office overnight and the appropriate maintenance of air- conditioning systems.

Philippe Sourdois


“In terms of layout,” says Tiziano Betti, head of design for Tétris Italy, “there will be no significant changes but the space will be at 30% to 50% of its total occupancy, with reduced staff access and increased remote work.”

Technology to reserve spaces and avoid desk-sharing will be implemented, and mobility in the office will also have to be coordinated to manage circulation flows and raise employee awareness around new ways of using the space.

Meeting rooms and common areas will be reorganised and it will be necessary to manage access to avoid overcrowding. “Sensors will become crucial in not only detecting the presence of people, but also for measuring the health of the person,” explains Tiziano.

In the medium-term, when employees return to the office more frequently and regularly, occupancy will increase and workspaces will have to be reconfigured so as to protect employee psycho-physical wellbeing.


From reception to operational areas, the geometry of the spaces will be reviewed by introducing touchless systems and flexible furnishing solutions to reconfigure the spaces according to new needs. “The materials themselves will even undergo some changes, smooth surfaces will be preferred, which can be easily sanitised and do not degrade with the frequent use of disinfectants,” continues Tiziano.

In reception areas, the distance between the visitor and the receptionist will increase and waiting areas will be organised for fluidity and openness. Phone booths and informal meeting rooms will be reconfigured, transforming them into individual workstations to regain privacy and concentration. “As the situation evolves and new needs emerge, dynamic hub spaces or clubhouses can be introduced to support teamwork when it cannot be managed remotely,” says Tiziano.

Tiziano Betti

Social distancing designs

Meeting roomBoothsOpen plan


From biophilic design to “virtual engagement”The different work areas will be delimited by introducing dividing panels, lockers or even natural elements.

“Biophilic design will be one of the trends that will most characterise the office of the future,” explains Tiziano. The introduction of nature within the workplace fosters a general sense of wellbeing necessary to make employees feel safe. This is a sustainable solution, also in terms of costs, with a low environmental impact that improves air quality at the same time.

According to Philippe, the growing affirmation of ‘virtual engagement’ and the need for innovation will also play a fundamental role in the design of the post-Covid-19 office.

With the reduction in travel, meetings will be increasingly virtual. It will become essential for workplaces to be equipped with cutting-edge technologies supported by strong connectivity to enable remote communication and collaboration. “Meeting spaces will be equipped with video-conference systems and digital platforms, without neglecting the issues related to acoustic design,” says Tiziano.

The workplace of tomorrow will be inclusive in its design, creating a comfortable and familiar environment where people want to gather and that, even in this period of continuous adaptation, primarily supports their health and safety. New parameters for the office of the futureIn the coming months, it will be necessary for companies to assess their future needs in terms of resources and reorganisation of company systems and workspaces, also taking into account the possible scenario changes.

“However, we can predict that wellbeing, flexibility and changes to corporate culture will be the main factors that will define the new parameters of the offices of the future,” concludes Philippe. A+

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Property mogul's example and leadership inspired others

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