From what I can see, eThekwini metro is taking a feather out of the City of Cape Town’s cap, because it is now moving and shaking. 

Durban has one of the busiest ports in the country, and its conference centre is blowing up with bookings when it comes to the corporate side of things. 

With its sandy beaches, great year-round climate and warm ocean, I think Durban should be one of our top destinations in the country for business and leisure. 

But Durbs is often in the news for all the wrong things: crime, the 2021 riots and accompanying destruction to severe floods and polluted water that causes high E. coli counts and the closure of beaches. If the perception of Durban, along with infrastructure, crime prevention and service delivery, can be improved, this location can boom. 

Albeit busy, the Durban port is seriously congested and needs attention. That was on the cards but will have to wait until the high court decides next year whether the losing bidder, APM Terminals, or International Container Terminal Services, which won the bid, will proceed with investing millions in upgrades and new equipment at the port. And it will take time to turn Transnet, the state-owned logistics company, around.

But a notable deal that was recently closed concerns the much-needed rejuvenation of the iconic beachfront property Joe Cool’s at 137  Marine Parade. eThekwini has appointed a company to redevelop the site on a 45-year lease agreement. For non-Durbanites, Joe Cool’s was the coolest place to be in its heyday. 

eThekwini is on a mission to release the potential of state-owned real estate. Its proactive land release strategy, along with a detailed RFP (request for proposals) for the beachfront redevelopment opened the door to industry professionals in November 2022. 

The tender was granted to Imvusa Trading 595 CC, which will begin construction early next year after the necessary approvals have been achieved. The municipality has said the beachfront redevelopment will create 80 jobs during the construction period. 

eThekwini’s mayor, Cyril Xaba, has emphasised that they will guarantee the retention of all current jobs, and new positions will also be established because the new site will be 68% bigger than the existing one. The redevelopment will bring in new tenants, including a Mugg & Bean restaurant, while retaining the existing tenants such as Wimpy, Steers, Fishaways and Milky Lane.

The municipality also has plans to redevelop the old Funworld site. Its formal announcement of these plans will be published soon.

Investment flows where confidence goes and Southern Sun will also make some major moves. The group was awarded a 50-year lease and it will invest R1  billion in the rejuvenation of the Elangeni and Maharani hotels. The current lease was set to end in December 2025. This was an essential move by the municipality, especially when jobs are concerned — the two hotels employ about 500 people and these jobs are now safe. 

I spoke to Thapelo E Mmusinyane, the head of real estate for the eThekwini municipality. He says when they released these hotel properties to the market for tender, the number of responses received was the highest ever. This shows the keen confidence from investors who want to get stuck in and revive these iconic assets in Durban.

He also mentioned that eThekwini has put into action initiatives to attract investment and foster growth. One is the economic development incentive policy, which seeks to facilitate and create a supportive environment for new investments while maintaining existing ones. 

This initiative provides property rates relief to eligible businesses and developments that contribute to local economic growth, job creation and infrastructure development. As a result of this policy intervention, the municipality has secured R217  billion in ongoing investment developments, with additional projects planned that are expected to generate about 300  000 jobs.

eThekwini is the only municipality in the country offering a property rates reduction incentive to property developers and owners. I am certain that property players will welcome the incentive with open arms, especially because rates have been soaring higher than inflation over the past 10 years. 

“Some of these projects are key drivers in promoting new developments, particularly in strategic growth areas like the north — where Oceans Umhlanga, Sibaya Coastal Precinct, Brickworks and Whetstone Business Park are located — and the west, where some of the industrial developments like Cato Ridge dry port, Keystone Park, Giba Business Estate and the Westown mixed use development are located,” Mmusinyane said.

eThekwini signed a memorandum of understanding with the national department of public works to release surplus properties and land that it does not need to drive development. The Passenger Rail Agency of South Africa has already released stations in the municipality jurisdiction. 

This makes so much sense for the sustainability of a municipality. Why sell the goose that lays the golden egg? In this case, the goose is prime real estate assets, and the egg is income from the property. 

In September this year, eThekwini released 34 out of 149 properties for tender. The target for this financial year is 50 — all with the goal of retaining asset ownership, partnering with a developer to make them modern and functional, and turning Durban into a key tourism node. 

Some of the other famous leased landmark properties advertised for redevelopment in September were Kings Park Stadium and the Durban Country Club, which will be hosting the Investec South Africa Open Championships in 2025. 

“The awarded properties have a capital investment pipeline of R4  billion with R1.4  billion of that earmarked for the beachfront alone and which will create a total of 1  500 jobs during construction and 5  500 jobs post construction,” Mmusinyane said.

The beachfront’s Golden Mile plays a crucial role when it comes to tourism assets. The municipality is working to restore this city’s shine by protecting and enhancing this area. It would be wonderful to see the strip transformed back to its former glory and I think the Durban metro is on a mission to do exactly that. 

I was pleasantly surprised when I saw the stern approach that the municipality took when it forced the legendary Hilton Hotel to reopen. The Hilton Durban shut down during the Covid-19 pandemic when the lockdowns devastated the hospitality sector. The International Convention Centre was also hit, which affected the Hilton Durban.

This led to eThekwini almost expropriating the Hilton Hotel. The municipality has a condition in the title deed that if the hotel stops operating as a five-star hotel, the municipality has the option to buy it back. Upon evoking this condition, the hotel owner reopened the hotel to avoid losing it. 

It’s unfortunate that more municipalities don’t have leases with clauses like these in place. Such agreements would significantly help ensure the smooth operation of hotels — especially those occupying prime real estate such as the mothballed Hyatt Hotel in Rosebank. 

eThekwini has 565  070 properties in its portfolio, valued at R704  billion, according to Statistics South Africa.

Durban has a lot of vacant land, some of which is protected for environmental purposes. 

About 68% of the municipality’s land is classified as “rural.” The communal land under the Ingonyama Trust is included in this. The remaining 32% comprises residential, commercial and industrial areas. 

Mmusinyane mentioned that eThekwini has decided not to sell its municipal-owned properties unless it will be used for gap housing. 

The municipality has ambitious plans to achieve R1  billion in net property income annually. It owns 9% of the property in its jurisdiction. If eThekwini continues with its current strategy — bringing properties to market when lease agreements expire — they will maintain market-related rentals and enhance their revenue stream, thus ensuring financial sustainability for the municipality. Viva, Durban.

Ask Ash is a column that examines South Africa’s property, architecture and living spaces. Continue the conversation with her on email (ash@askash.co.za) and X (@askashbroker)

Westcliff, once called West Cliffe, earned its name from its dramatic location perched on top of a rugged cliff in Johannesburg. 

This striking vantage point offers breathtaking views of the surrounding landscape. The two-word name was soon replaced by the easier Westcliff.

The area, with its lush green gardens and charming homes built using old-school construction techniques, is rich with history. Johannesburg officially became a city in only 1928, but houses in the Westcliff area were designed and built well before that by famous architects such as Herbert Baker and FLH Fleming. 

I truly admire the remarkable initiative taken by the Johannesburg Heritage Foundation in placing blue discs of historical information on several of the prominent homes in this area. These elegant plaques serve as windows into the past, offering a concise yet engaging narrative about each property. 

They reveal not only the names of the architects and original homeowners but also highlight the geographical significance of the locations. Each heritage disc transforms a mere stroll through the neighbourhood into a captivating journey through time, enriching our understanding of the history that surrounds us.

This special area of Johannesburg really shows off this time of year. During this season, a sea of purple hues drape over the suburb courtesy of the beautiful jacaranda trees in full bloom. Their delicate petals create a stunning overhead canopy, casting a dreamlike atmosphere over the suburb. 

Within Westcliff is an urban jewel, the only Four Seasons Hotel in South Africa. Guests are encouraged to come and enjoy a luxurious retreat amid the natural beauty and vibrant city life.

The site where the Four Seasons Hotel, The Westcliff, is located today has a special (and somewhat contentious) history. 

Circa 1918, the first-ever lavish residential block, comprising 27 apartments, was built here. Each apartment was designed with spacious rooms and its own fireplace. 

Samuel Sondheim was the ambitious developer behind this landmark, and John Waterson and Harry Veale were the talented architects who brought the vision to life. 

The residential development was for a while called Westcliff Park and was complemented by beautifully manicured amenities, including a croquet lawn, a tennis court, and a children’s play area.

An attorney named Nat Gordon purchased this apartment block and named it after his son, Murray. Many will be familiar with the name Murray Gordon Mansions. The development was controversial, because many believed permission to build such a building in this area should not have been granted. 

It was demolished in 1975. 

The site stood empty for years. Developers saw the potential of this primely located site, but local residents opposed many of those plans, and they never came to fruition. 

According to writer Jeanne Horak, the land was bought in 1993 by developers who built cluster houses, “but they misjudged the market and the completed homes stood empty for two years”. 

Fast-forward to 1997, when the Westcliff Hotel was built. In 2013, it was sold once again and closed for a year while being renovated. It opened again in 2014, and now we see that the hillside hotel will be renovated once more. 

Before becoming home to the Four Seasons brand, it was a Belmond hotel — sister to “The Nelly” in Cape Town, officially known as The Mount Nelson. 

Over time, the Four Seasons Hotel, The Westcliff has expanded by buying up neighbouring homes that come up for sale in the area.

I spoke to Martin Thomas Cody, the regional vice-president and general manager of The Westcliff. He has been with the Four Seasons Hotel group for more than 23 years and oversees its properties in Serengeti, South Africa, Tanzania, Mauritius, two in the Seychelles and a new development in Zanzibar. 

Regarding the latest renovations for The Westcliff, guests can expect a soft refurbishment of the 80 rooms in early 2025. 

They plan to build a lobby area that will include a new food and beverage lounge in addition to the renowned Flames Restaurant that is currently on the property. They are also building a 400-seater ballroom, which will complement the 100-seater that is already in place 

The new lobby lounge and casual dining space will adjoin the spa and provide a seamless pathway for guests wanting to enjoy the views of Johannesburg from Flames Restaurant, which has one of the highest vantage points on the Westcliff hillside. Friends can meet for early-morning pastries with freshly brewed coffee or catch up over a casual lunch. The lounge then transforms into a bar and hotel guests and patrons can enjoy evening dinner and drinks with one of the best views in Johannesburg. 

The current lobby is functional but the new lobby promises to be a warmer, welcoming heart of the hotel, ideal for socialising and gathering.

The interior design of this reimagined space draws inspiration from Johannesburg’s mining and gold history. Expect to see elements that reflect this heritage, with the incorporation of stone, raw materials and touches of gold. 

Each piece of art in these newly designed areas will be sourced from local artists, ensuring that the space also pays homage to the community and culture that surround it. 

They are installing a kitchen which will service the entire hotel. Everything will continue to be managed in-house, and the culinary offering and team will be expanded, creating 20 more jobs for new employees. 

As far as the ballroom goes, the plan is to create a most luxurious event space while retaining the opulent, traditional ballroom feel. The hotel hosts weddings of up to 100 guests; the expansion will accommodate 400. Huge glass windows run along the perimeter of the ballroom and natural light floods in from all angles. The interior design elements will be neutral tones with a classy elegance. Brides and grooms can then use this base to decorate the wedding venue into their own dream. 

The hotel presented the planned renovations to Westcliff residents and the residents’ association, which were well received. The owners of the hotel — ASB Investment from Dubai and HPL of Singapore — are also in full support of the renovation plans.

When it comes to the demographics of the guests who visit this urban retreat, Martin says the number one market is the United States. This is probably because of the familiarity of the well-established Four Seasons brand, which competes against The Ritz in the US. The second-biggest pool of guests comes from the United Kingdom, and South Africans are third. 

The hotel’s local market took off during the Covid-19 pandemic. Martin says they are almost back at their occupancy numbers of 2019 and the spa, as well as food and beverage is supported by a large share of locals. 

Johannesburg is a melting pot of culture, cuisine, and history. The hotel offers the true Jozi experience to all visitors. With a plethora of established art galleries and foodie hotspots sprinkled all over town, many guests request to pair their excursions with a half-day Soweto tour and a visit to the Apartheid Museum. While these are emotionally heavy experiences, they are among the top requests by foreign visitors to the hotel. 

When guests are done exploring Johannesburg, they generally head off on a short drive towards safari turf that is home to the Big Five or take a flight to enjoy the coastline in the Mother City and the Winelands region. 

This suburban jewel lies in one of the world’s largest cultivated urban forests. The renovations will be completed in the middle of 2025. Make sure you pop into the restaurant for a celebratory drink paired with one of the best views in the City of Gold.  

Ask Ash is a column that examines South Africa’s property, architecture and living spaces. Continue the conversation with her on email (ash@askash.co.za) and X (@askashbroker).

Balwin Properties was established in 1996 and is the largest sectional title property developer in South Africa. In 2015, it went public and was listed on the JSE. The company has an impressive development pipeline, with more than 42  000 apartments planned over the next 15  years. While its development plans sound promising, the latest figures from its earnings report tell a different story.

Balwin Properties has made significant investments in Gauteng and other provinces such as the Western Cape and KwaZulu-Natal. On reviewing its interim financial results for the six months to end August 2024, it showed that profits had decreased by 57% and revenue was down by 28%. 

Steve Brookes, chief executive of Balwin Properties, is the Sol Kerzner of sectional title development in South Africa. Previously a car salesperson in Johannesburg South, he has boomed the Balwin business over the years with his maverick moves in the sectional title real estate sector. 

He attributed the decline in earnings and stock price to several factors, including the poor economy, rising living costs, high interest rates and other macroeconomic issues beyond the company’s control. 

Customers value transparency, and property-related issues are relevant when explaining poor results. This includes details about occupancy rates, the rising costs of construction and negative rental reversions.

Waterfall City, in Midrand, is a smart city. Retail, commercial and residential real estate developments are located here, as is the Mall of Africa and the head office of big corporates such as PwC. Balwin Properties is known for its bold Munyaka development in Waterfall City, which will have more than 5  000 apartments once it is complete.

When the Munyaka development launched, people were excited about its unique amenities, such as the 30 000m2 lagoon monitored online 24/7 through the Crystal Lagoons control room in Miami. Other amenities include a padel court, cinema, running track, action sports field, playground, restaurant and lifestyle centre.

President Cyril Ramaphosa was present for the unveiling of this development circa 2020. At the time, Brookes said the company planned to achieve a market capitalisation of R10  billion within five years. It’s been almost five years, and Balwin Properties’ market capitalisation today is R1.3  billion. 

He also said that they would build a development similar to Munyaka in the Paarl Winelands. While Paarl has been pumping with commercial and residential developments over the past five years, such a development is yet to materialise. It’s a big project for Waterfall, and it would be an even bigger project for a town like Paarl. 

According to Balwin Properties’ website, Munyaka has a variety of apartment types — one, two and three bedrooms, villas and penthouses. Prices for a one-bedroom apartment (41m2–64m2) start at R1  034  910, while two-bedroom apartments (75m2–115m2) begin at R1  484  910. The prices for three-bedroom apartments (110m2–118m2) start from R1  799  910.

I viewed the floor plans for a six-bedroom, six-bathroom lagoon penthouse that measures 1  230m2 (with 695m2 under the roof and the rest consisting of a covered and uncovered patio, a butler’s suite and basement storage). Balwin Properties advertised the penthouse at a sale price of R80 million. That’s a lot of money for this location compared with other penthouses in Gauteng and Cape Town. In addition, other apartments in this development are advertised at much lower prices. 

Koshiek Karan, a former investment banker with listed real estate deal experience, says that when interest rates were low, many people bought units in Balwin Properties developments. They barely qualified for these home loans, and when the cost of living went up, the interest rates went back up, and now they can’t afford the monthly payments of their real estate investment. 

“Owning a property extends far beyond simple bond repayments. There is insurance, utilities, municipal rates, levies, maintenance, and more. Qualifying is different to affordability.” 

This issue affects many property buyers in the country and points to the problem of poor financial literacy.

Balwin Properties generally builds its developments in working-class and middle-income areas where the cost of acquiring land is cheaper. A few years back, it launched a huge R1.6  billion affordable housing development called Wedgewood on a premium road in Sandton — it was cancelled. The building was going to be 20 storeys with 1340 apartments. The studio apartments were roughly 33m2 in size, with sale prices ranging from R799  000 to R1.49  million. 

Regarding the Munyaka development, of the 5 020 apartments planned, 3 705 remain unsold. This raises concerns when it comes to the demand for apartments in these mass compound-style complexes.

The company certainly goes big when it comes to your home. Is it too big, though? There is a dire need for more affordable apartment offerings to come onto the market. One wonders if Balwin is oversupplying apartments in parts of Gauteng in relation to demand and if they are designed and priced correctly. 

The number of apartments in most Balwin Properties developments is 1  000 to 3  500 units per development. That is an extraordinary scale compared with other sectional title developers in South Africa. If you browse the website, you can find many units still available for sale in most of the company’s developments.

Would you be able to live in a development of this scale? In a world where customers favour boutique brands, specialised expertise, product personalisation, and companies that focus on their niche, I wonder if these big-box offerings appeal to South Africans. 

The question remains: who is the target market?

When I chatted to Nicholas Dakin, a global portfolio manager at Sasfin Wealth, about Balwin Properties’ balance sheet, he said that what stood out for him was the level of debt, which has been trending higher over time as it has taken on more debt to fuel its aggressive expansion plans.

 While the group’s loan-to-value (LTV) ratio did decline marginally to 40.2% in its most recent interim results, it remains elevated. Property companies should try to keep their LTV ratio between 35% to 40%. Therefore, this is a fairly precarious situation, given that the company has a significant amount of unsold stock and high vacancies. 

As a result, Balwin Properties did not declare a dividend in the last financial year in an attempt to reduce the group’s debt exposure. A solid and consistent dividend is one of the key reasons investors like to own property shares. Dakin believes this is the key reason for the weakness in the share price. But he also pointed out that the share price has recovered strongly since April, benefiting from government of national unity optimism.

The company has recently created a subsidiary called Balwin Rentals, reflecting the current times where rentals are in huge demand nationwide. In July this year, Balwin Properties announced expansion plans for its rental portfolio. Over the next decade, it plans to build close to 7  300 apartments dedicated solely to the rental market. I am a fan of this idea because the demand is there. 

The rental portfolio will include one, two and three-bedroom apartments with a monthly rental rate of R6  000 to R13  000. Perhaps the plan is for the rental subsidiary business to generate some annuity income. 

The company has also opened another subsidiary called Balwin Sport, which has padel courts in the developments. 

Balwin Properties has other businesses in the pipeline to offer its apartment owners, such as solar power. Selling apartments provides the company with erratic income, so these annuity-income subsidiaries might be the solution to diversifying and generating a consistent cash flow. 

That said, Balwin Properties has had its worst year on record. Perhaps it should reconsider whether it remains listed. Being listed means it must keep bringing products to the market and constructing more apartments. 

The company is not a dividend payer. Balwin Properties’ current market capitalisation of R1.3  billion is small when compared to other listed property funds on the JSE. Growthpoint’s current market capitalisation is R45  billion (at one point, it was R70  billion) and is the largest listed property fund in South Africa. 

I would say anything under R2.5  billion should be reconsidered when listing on the JSE because a company might not be liquid enough for institutions to buy into. 

Since listing, the share price has decreased sharply, from about R10 a share in 2015 to R2.30 at the time of writing. But Balwin Properties is still pumping out loads of stock. So, do people believe in the product, or is the listing forcing it to build? I am excited to see the next results presentation and how the performance of the newly added annuity businesses, such as the rental portfolio, will help with the bottom line. 

Ask Ash is a new column that examines South Africa’s property, architecture and living spaces. Continue the conversation with her on email (ash@askash.co.za) and X (@askashbroker).

In 1850, Waterval was established as a farm of 3  400 hectares. Peter McDonald, a land surveyor, named this farm Waterval after the small waterfall found there. Johann FB Rissik, the surveyor general at the time, signed off Peter’s land survey plan and the farm was registered in 1888. As was done back then, Paul Kruger, the president of the South African Republic, signed the original title deed in 1889. 

When looking back at the history of Johannesburg, we know that gold was first discovered in 1884 and some was found near the Jukskei River that ran through Waterval farm, so people assumed gold was everywhere. It was in 1886 that the main gold reef was found at Randjeslaagte, today’s central Johannesburg.

Where Waterval farm was is now Midrand, situated between Pretoria and Johannesburg, and on it is the expansive, multibillion-rand Waterfall City development. 

The first owner of this land was a Miss Pimond. She sold the farm to the Gibson brothers, who arrived in South Africa from Britain circa 1871. They were the first title-deed owners of this farm. Their main line of work was operating a Red Star Line stagecoach business. 

The Gibson brothers had ox wagons and bred cattle on the farm for their transport business. They created a pit stop between Johannesburg and Pretoria and aptly named it Halfway House — the same name used today. 

In his research paper Land as Waqf & Mia’s Farm: A Decolonial Case Study, Aasif Bulbulia tells us that in 1934, Moosa Ismail Mia purchased the farm from the deceased estate of John Alexander Gibson for £16  000. Mia was born in India in 1876 and moved to the Transvaal in 1904. He registered the development under Witwatersrand Estates Limited, a company established to navigate the Union of South Africa’s land ownership restrictions. Many will be familiar with this farm’s nickname — “Mia’s farm”. 

Mia and his four sons, Mohamed, Ahmed, Mahmood and Yusuf, built a school (the Waterval Islamic Institute), hostels, homes for the Mia family members, and a small mosque on this farm. 

The institute was established in 1940 and was one of the first formal Muslim educational institutions in the Transvaal. It produced prominent scholars, ran its own printing press known as “The Shed,” and is well known for its strong role in institutionalising Islam in South Africa. (Bulbulia, A., 2021. Land as Waqf & Mia’s Farm: A Decolonial Case Study. Honours thesis. University of Johannesburg.)

The Mia family used this land as a working farm. They bred cattle and sheep, and they grew crops such as maize. It was only in 1985 that they considered developing this excellently located, valuable piece of land.

Mr Bulbulia expands on how Waterfall Estate was transformed from the Waterval Farm into what it has become today. He credits the project as the brainchild of Werner van Rhyn whose vision for the estate brought about the mixed-use Waterfall City. He approached the Mia family and a partnership was born. The Mia Family and real estate investment trust Attacq got to work. 

Planning for the Waterfall City precinct began in 1996. Other property companies such as Balwin Properties have subsequently added value to the area. (Bulbulia, 2021.)

This city-within-a-city, along with its beautifully maintained roads and manicured gardens, has attracted huge investment over the past few years. It is home to multiple residential, retail and commercial developments, including hospitals, hotels, corporate headquarters such as PwC, and one of the largest shopping centres in South Africa — the Mall of Africa. 

Many schools are setting up in the area. These include Curro Castle, Reddam, Reddam House Waterfall Early Learning School, Curro Waterfall Primary School, Reddam House Preparatory School, Curro Waterfall High School, Reddam House College and Stadio School of Education.

This development is still owned by Waterfall Islamic Institute (WIC), founded by the Mia family. The WIC is a 22% shareholder in Atterbury Investment Holdings. 

Today, the farm has reduced in size to 2  200 hectares after the government expropriated some of it. Parts of the farm were divided into smaller sections to accommodate the development of Eskom’s Megawatt Park, the Buccleuch Interchange and the Allandale Interchange. 

Because of the Islamic faith of the Mia family, this specific piece of land cannot be sold or transferred. It’s known in Islamic law as a waqf. A waqf, or Islamic endowment, is an asset dedicated by Allah to assist the poor and needy. This includes buildings or land donated for charitable purposes, with no intention of reclaiming the assets. 

With the above being said, this land can be leased. The profits from the leases must be used for public good, such as for charities and community initiatives.

All properties in the Waterfall City precinct are under leasehold ownership. Balwin Properties’ Munyaka development, valued at more than R10  billion with a planned 5  020 apartments, will also follow the unique lease ownership structure. 

This structure consists of 99-year leasehold agreements. As a buyer of an apartment, you will enter into a long-term 99-year lease with the Islamic Trust, the landowner.

The lease agreements are registered at the deeds office, and they are renewable after the 99-year period with an infinite number of extensions. 

Lessees are allowed to finance their lease agreements through banks. Interestingly, bank financing for these leases was a groundbreaking deal upon the inception of the Waterfall City project. 

You can sell your property at any time during the 99-year lease, and the new owner will receive a new 99-year lease. 

Furthermore, the lease cannot be cancelled.

Here’s what is interesting about the Munyaka development. When you sell your apartment, you would pay an agent commission (which they have capped at 5%). You will also be liable to pay 3% plus VAT of the total sales price to the Islamic Trust.

If your 99-year lease period expires, you can renew your lease agreement with the Islamic Trust and pay it 3% plus VAT and 0.5% to the residents association based on the current market value of your apartment. 

In the event of death or divorce, the Islamic Trust does not require you to pay the 3.5% plus VAT. And if you inherit the apartment after someone’s death, you can continue ownership for the remainder of the 99-year lease without paying the 3.5% plus VAT.

This means that during any of the above, there will be no transfer duties applicable at any stage — unless the law changes. Transfer fees can be exorbitant, so this is appealing to investors. 

Perhaps the player at a disadvantage in this situation is the South African Revenue Service. Because no transfer fees have ever been (or will ever be) paid, will they not miss out on substantial transfer duty revenues for many years to come?

More importantly, getting banks to fund these projects with leases and having title deeds issued could change the game for unlocking the potential of homelands and areas under traditional ownership in South Africa. Banks treat these lease agreements as bondable assets, and that is great. 

This also has the potential to be a viable model for land owned by state-owned enterprises such as Prasa. This entity is mandated to capture the value of land to subsidise transport operations. Instead of selling the land and losing out on future gains, why not implement a lease structure similar to Waterfall City’s? 

The same goes for sporting facilities such as stadiums. There could be an opportunity to develop surrounding land, thus ensuring long-term revenue for the sport and sporting facilities that are costly to maintain every month. 

One final thought when it comes to Islamic landlords and a waqf. Islamic landlords must adhere to the conditions of the religious endowment. Violating these conditions includes businesses that sell pork, alcohol, gambling or prostitution.

Islamic landlords tell me in my capacity as the principal commercial property broker at Ask Ash that they will not lease their properties to churches, casinos, pubs, bottle stores and gambling institutions, so I am familiar with Islamic law. 

At first, the idea of a smart city built on waqf land sounded contradictory. What about restaurants that sell alcohol operating on Waterfall City land? And what if a tenant owns an online sports betting business and works from home in Waterfall City? Does this city built on waqf land challenge Islamic law?

My original thought was that the direct rental income from the restaurant becomes a conflict of interest for the landlord’s primary business. If the Islamic landlord benefits directly, that is a breach of the waqf. 

I now understand that in the case of Waterfall City, the Islamic owner is not benefiting directly from the lease agreement between the lessee and their subtenants. The terms and conditions of the waqf are not breached as a result of the 99-year lease structure that has been put in place. In this manner the owner does not become party to, and thus accountable for, participating and benefiting from prohibited activity.

Ask Ash is a new column that examines South Africa’s property, architecture and living spaces. Continue the conversation with her on email (ash@askash.co.za) and X (@askashbroker).

Editor’s note: The original version of this article did not cite Aasif Bulbulia’s research, particularly his contribution to understanding the significance of the Waterval Islamic Institute. We have learned from the incident and will tighten our editorial processes. We apologise to Bulbulia.

Almost a century ago, what we know as the Foreshore and the V&A Waterfront was under the ocean. In 1935 work began to upgrade the harbour and to reclaim land for industrial and commercial development. The reclamation, carried out by a Dutch company, was due to be completed in 1941 but World War II intervened and it was concluded in 1945.

About 194 hectares of land was reclaimed and they moved the shoreline into the ocean by 1.6km. 

Where the Castle of Good Hope stands now the sea could reach its walls. Woodstock had a beach. 

Even on the world stage, this was a pretty maverick project for its time.

The Foreshore is between the city centre and the port. Today, the Foreshore is a buzzing node in the City Bowl. The land reclamation of the Foreshore and Table Bay where the V&A Waterfront Shopping Mall is situated gave Cape Town the room to grow. 

With few limits on heritage and zoning laws, many redevelopment projects are lining the Foreshore precinct’s main roads. But the reclamation probably saved many older buildings from being demolished for redevelopment.

Some of the more exciting redevelopments have been The Onyx, Zeeland Pier I and Zeeland Pier II, The Duke, and the most recent renovation of the Radisson. 

I visited the Radisson last month; it looks fabulously modern inside, with bountiful bouclé and other warm interior design elements. Foreshore real estate always has nautical nuances in interior design and an art deco vibe in architecture. Naturally, the ocean bordering the suburb is the main inspiration for the look and feel.

Fast forward to today, and the V&A Waterfront has released some of the most exciting news since the 1930s. A rezoning application has been submitted to the City of Cape Town to reclaim an additional 440 000m2 of development rights across its current footprint. 

Coastal protection will need considerable improvement. One must ask what the environmental impact of expanding into the sea will be. With predicted rising sea levels as a result of climate change, could Cape Town ground be vulnerable to such a large reclamation project?

The V&A Waterfront has commissioned several environmental impact studies on the Granger Bay expansion project. With climate change scientists having projected that sea levels will rise 2mm every year and that severe weather events will increase, this needs to be considered when any new developments are to be built along the coastline.

Most of this land will be allocated for new construction in the Granger Bay precinct, where more land will be reclaimed from the ocean to make way for mixed-use developments, including retail spaces, restaurants, hotels and residential apartments. There will be considerable public and cultural facilities, which will involve re-establishing public access to the shoreline.

The Granger Bay precinct is located in the northwest section of the V&A Waterfront. It extends from the helipad north of Victoria Basin to Beach and Haul roads. This area is home to several establishments, including the Oceana Power Boat Club, Grand Africa Café & Beach restaurant, and the Oranjezicht City Farm Market, which will move to a new location in Granger Bay, overlooking the bay and closer to the new position of the Cape Wheel. This is scheduled for the first quarter of 2025.

Next to the market, a new parking lot of a few storeys was opened not too long ago. It was to serve the customers for the market and the Lookout venue next door. 

This structure was temporary and is demountable, which means the V&A Waterfront will probably reposition this parking set-up too. 

The V&A Waterfront precinct is 50% owned by Growthpoint Properties (the largest listed property fund in South Africa), while the Public Investment Corporation owns 50% on behalf of the Government Employees Pension Fund.

Donald Kau, the head of public relations at the V&A Waterfront, said the R20 billion development plan will be rolled out in phases over the next 15 to 20 years, with plans to break ground in 2025. 

The land use application was made available for public comment in July this year.

After the recent development of the Silo precinct and Canal districts, the V&A Waterfront hopes that the rezoning application will allow it to create additional residences in the Waterfront, enhance public areas, foster economic development and job creation and create new pathways to the sea.

Other aspects for development in the Granger Bay area include a public pathway that will link the city centre to Mouille Point, which will connect with the Atlantic Seaboard promenade.

One concept being considered is to develop a new public bay area that coastal protection measures would surround. This new space would provide opportunities for opening public access to a new protected area (with public amenities) suitable for swimming. 

The last time Cape Town saw an infrastructure project this large was for the Soccer World Cup, which we hosted in 2010. The new Cape Town Stadium alone cost R4.5 billion.

I look forward to seeing how the ever-innovative V&A Waterfront precinct evolves over the next decade, thanks to this exciting investment in the pipeline.

Ask Ash is a new column that examines South Africa’s property, architecture and living spaces. Continue the conversation with her on email (ash@askash.co.za) and X (@askashbroker).

The Gupta mansion in Upper Constantia, Cape Town, bought earlier this year by a European business person, is undergoing extensive renovations. 

After the Guptas fled South Africa, the property was neglected, with cracks appearing in the wall paint and holes in the roof that caused substantial water damage.

The buyer, Hugh Vincent Cooke, is restoring his new primary residence — which has seven bedrooms, six bathrooms, two garages, a guardhouse and a one-bedroom cottage — to its former glory, and is also revamping the damaged and outdated interior. The monthly rates are R11  577. 

After navigating two court interdicts against the sale, Cooke then waited a full year for the transfer of the 8  105m2 property. 

The Gupta company Islandsite Investments 180 (Pty) owned the Upper Constantia property before it was seized by the National Prosecution Authority in 2021 with combined assets worth more than R500  million. The Guptas bought the property from Mark Thatcher for R17  million in 2005. 

In 2004, Thatcher was found guilty of his involvement in the “Wonga Coup”, a failed attempt to overthrow the Equatorial Guinea government. Thatcher, the son of former British prime minister Margaret Thatcher, admitted that he provided financial backing for the operation and was fined and given a suspended jail sentence in South Africa. 

Islandsite Investments was owned by Atul and Rajesh Gupta, along with their wives, Arti and Chetali. In one of the company’s audited group financial statements, signed off by KPMG, it is stated that the company operates as an investment holding firm, with investments in properties and various companies. In 2018, the company entered voluntary business rescue.

Ironically, the opening letter of the document states, “Directors are also responsible for the preparation of financial statements that are free from material misstatement, whether due to fraud or error.” This letter was signed by Atul and his wife, Chetali.

Islandsite Investments was one of the companies the Guptas used to transfer millions of rands through inter-company loans. At that time, business rescue practitioners questioned the fleeting money transfers, but no valid answers were provided.

Before the property was sold, Islandsite Investment submitted an application to the Free State High Court on 20 April 2023. The application was represented by Ronica Ragavan, a director involved with various Gupta companies holding more than R100  million of assets. Some of the assets mentioned in court filings by the Asset Forfeiture Unit included 73 properties and cars such as a Porsche Cayenne, a Lamborghini and a Rolls Royce.

The applicants submitted their application because they believed the property was listed for sale at an undervalued price. According to the deeds office, Islandsite Investments purchased the property for R17  million, while the municipal valuation of the property in 2018 was R22.2  million.

Islandsite Investments was subject to a Prevention of Organised Crime Act (Poca) order that appointed a curator to oversee its assets, including the property located in Upper Constantia.

The interdict was brought against Cooke and the business rescue practitioners, Kurt Knoop and Johan Kloppers, who were appointed under the Act. 

Despite multiple communications from the applicants, the curator of the Upper Constantia property proceeded with the sale without the applicants’ consent. 

Islandsite Investments was in voluntary business rescue, which seems counter-productive to what the business rescue practitioners were trying to achieve. 

The applicants subsequently sought an urgent interdict to prevent the transfer of the property to Cooke. They argued that they had not been consulted and that the sale process was flawed. The property was “under offer” for one year during the court proceedings. The final interdict was lifted in December 2023, and the property was transferred in January this year. The home sold for the full asking price of R20   million.

Interestingly, an 8  971m2 property on the same street (Dawn Avenue, Bel Ombre) sold for R54  million and transferred at a similar time.

The Upper Constantia area has been a hotspot for property lately, according to Arnold Maritz, co-principal agent for Lew Geffen Sotheby’s International Realty in Cape Town’s southern suburbs and False Bay. This year, 63 properties have been sold and out of those properties, 21 had a price tag of more than R20  million.

Richard Hardie, the Hardie Property agent who sold the Gupta mansion to Cooke, described the condition of the property as “unfortunate”, which was reflected in the sale price. 

“You couldn’t live in it; the damp was off the charts, doors were missing and there were no working lights or electricity,” he said. 

He clarified that the Guptas did not leave the property in this state of disrepair. Instead, it had been left unattended for seven years, exposed to harsh winter seasons. Such old houses generally require more tender loving care than modern ones, and the Upper Constantia mansion had not been maintained.

Several Gupta companies have been placed under business rescue over the past few years, resulting in the sale of many of the family’s properties. One of these companies, Confident Concept (Pty) Ltd, included the Guptas’ Saxonwold house located at 18 Avonwold Road in Johannesburg. 

On 19 November 2019, this property was auctioned off by Park Village Auctions for R2.6 million. The deeds office said Confident Concept (Pty) Ltd acquired the home for R3.2  million.

Several government ministers often visited the 1  199m2 property. 

Another Gupta property that was also seized was their mansion at 5  Saxonwold Drive. According to the deeds office, the 4  207m2 property is still registered under Confident Concept. The Guptas bought the property for R14  million in 2004. Neighbours have filed numerous complaints regarding the property, citing neglect and the presence of illegal structures. Security personnel on site have been instructed not to speak to the media.

The Guptas also owned properties in uMhlanga, KwaZulu-Natal, and commercial property in Midrand, Gauteng. 

All proceeds from the sale of Gupta properties were given to the business rescue practitioners, who then distributed the funds to the appropriate creditors. 

Meanwhile, the directors of Islandsite Investments, Atul and Rajesh Gupta, are fugitives on Interpol’s wanted list.

Ask Ash is a new column that examines South Africa’s property, architecture and living spaces. Continue the conversation with her on email (ash@askash.co.za) and X (@askashbroker).

The hotel owner and the mixed-development body corporate are at an impasse that has been going on for years. There have been court cases that have been settled out of court and no precise date for when this internationally branded Hyatt hotel will reopen. 

Here’s some background on how we got to where we are today. 

The Bin Otaiba Hotels (BOH) group is headquartered in Sharjah, United Arab Emirates. BOH is a division of Bin Otaiaba Investment Group (BOIG), founded and chaired by HE Khalaf Ahmed Khalaf Al Otaiba.

According to their website, they acquire, develop and manage high-quality hospitality real estate assets. They own multiple hotels in the United Kingdom, UAE, Morocco and South Africa. 

In South Africa, they own The Hilton Hotel in Durban, Hyatt Regency in the Johannesburg suburb of Rosebank, Radisson Blu Le Vendome in Sea Point, Cape Town, Park Inn Sandton, and the King Edward Hotel.

All these hotels are closed except the Hilton in Durban, which was reopened recently thanks to pressure from the local municipality. 

The Hilton in Durban was close to being expropriated by the eThekwini municipality, which has an agreement with the hotel owner. The hotel owner recently reopened the hotel to avoid losing it. As for the Hyatt Regency Hotel in Rosebank, well, that’s a different story altogether. 

The Firs retail and office complex in Rosebank is owned by Burstone Group (previously Investec Property Fund). It’s a mixed-use development that offers destination shopping with high-end, specialised retail and slick restaurants.

The Hyatt Regency Hotel formed part of the original development. The development was then sectionalised, and The Hyatt Hotel was sold to Georgia Avenue Investments, which then entered into an operational agreement with the Hyatt Group.

The Burstone Group gave up ownership of the hotel but maintained ownership of the retail and office component (The Firs). Georgia Avenue Investments is a subsidiary of The Bin Otaiba Group. 

The Hyatt Hotel operated under the brand until 2020, when it closed its doors as a result of the Covid-19 pandemic.

They let go of all their staff, and barbed wire was strewn across the front entrance of the building. And they stopped paying their municipal rates, taxes and levies.

The Firs and the hotel share a common erf, meaning they get a central supply of municipal services divided according to each asset owner’s participation quota.

Burstone Group had to cover the hotel’s proportionate share of municipal service costs owed to avoid being in arrears with the municipality. Should the city cut off services to the site, the hotel’s lack of monthly payments would indirectly affect Burstone Group’s asset (The Firs). 

Two years ago, the Burstone Group went to court to be reimbursed for the municipal costs they unwillingly covered. Representatives from the hotel group flew into South Africa to meet Burstone Group representatives to resolve the matter. Subsequently, Burstone Group withdrew the case, and the hotel owner paid a large settlement.

The Burstone Group owns three levels of parking bays in this development. They allocated 75 bays to the hotel for their guests to make use of. They lease these bays to The Hyatt Hotel monthly for about R1200 a bay. That is a total monthly rental of R90 000 excluding VAT. To date, Georgia Avenue Investments has never paid a parking invoice. They are in arrears. 

The real losers have been the retailers at The Firs. They rely on the footfall and tourists that come from the hotel. Many of these retailers had to shut shop because of zero activity.

The Burstone Group has supported the retailers through rental rebates and assistance during Covid-19. The shops are open but not profitable. They need the hotel to reopen so that the ecosystem of this development can work optimally. 

Burstone Group continues to bankroll the outstanding costs owed by the hotel group. Demand letters have been sent, but The Hyatt Hotel has no concrete opening date. 

A source from the hotel group said they were keen to purchase The Firs but that the Burstone Group is not interested in selling it.

The hotel group is not interested in selling their hotel either. I was also told that the hotel group plans to open The Hyatt Hotel and the Park Inn by Radisson Sandton once they have completed the necessary maintenance. They will then open the Radisson Hotel in Sea Point. No opening dates were given to me. 

The Radisson Hotel has been closed since the pandemic. A source at Radisson said the property needed serious renovations before it could be reopened.

The hotel has been closed and mothballed for more than three years while the building owner and Radisson disputed renovations. There is no given date for when the hotel will reopen. The last few times I saw this hotel’s pool from an apartment above, the water was swamp-green and eventually emptied. 

The Bin Otaiba Hotels website states that they create long-term value in their real estate assets. This is ironic, because most of their South African hotels have remained closed for over three years. 

A complete list of their hotels:

UAE

• Hilton Sharjah
• Corniche Hotel Abu Dhabi
• Hilton Saadiyat Resort (coming soon)

UK

• Hyatt Regency Birmingham
• Radisson Blu Cardiff
• Radisson Blu Bristol
• Park Inn Cardiff 

MOROCCO

• Ramada Tangier
• Ramada Fes

SOUTH AFRICA

• Hilton Durban
• Hyatt Regency Johannesburg
• Radisson Blu Le Vendome 
• Park Inn Sandton 
• King Edward Hotel