June / July 2016
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Editor : Lynn van Vuuren , Cell : 074 582 0319 , Email : editor @ yourmoneyec . co . za
DIGITAL DISRUPTION AND THE SOUTH AFRI- CAN COMMERCIAL RE- AL-ESTATE MARKET
Afri-Corp International Property Group CEO Nadir Jeeva argues that the commercial real-estate market and industrial property sector in South Africa have not kept up with the changing currents of technological discourse , and discusses digital disruption .
The ability to generate , process and efficiently apply knowledgebased information is a key feature critical to the digital economy . It is also a networked economy , which offers many ways in which collaboration can be pursued . Disruption shatters business models and then reconstitutes them entirely .
We can look forward to three disruptions in commercial realestate and industrial property segments over the next few months .
OPENING UP NEW INVEST- MENT OPPORTUNITIES THROUGH CROWDFUNDING
Real estate crowdfunding websites are springing up everywhere , including South Africa . These sites offer small investors the opportunity to pool their money to buy investment properties , or invest in new commercial and industry property developments . Despite being one of the most profitable investment opportunities in the market , commercial real estate was traditionally only available to the wealthy elite . Through crowdfunding platforms , smaller investors are now able to participate in property investments .
The Need
Many organisations don ’ t have enough local and skilled black suppliers on their database to maximise on their BBBEE scorecard . As part of the new BBBEE Codes of Good Practice in May , the emphasis also shifted from ownership to include the priority elements of enterprise , supplier and skills development . Of the 109 available points on the scorecard , 25 were for ownership , 20 for skills development and 40 for enterprise and supplier development . Measured entities are required to meet 40 % of each of the priority elements or have their overall recognition level discounted one level down . The skills-development element on the
Of course , South Africa already has a burgeoning stokvel culture . Combined with technology , it really offers an exciting new way for real-estate to open up wealth creation opportunities . Interestingly , in the US real-estate crowdfunding is the fastest growing segment within the crowdfunding industry , according to San Diego-based DiversityFund .
AN END OF THE COMMER- CIAL PROPERTY AGENT MODEL ?
In a report by Deloitte titled “ Commercial Real Estate Industry Outlook - A nexus of technology advancements and consumer behavior changes ”, the authors point out that a possible effect of technological disruption is disruption on the current brokerage and leasing model . Technology can erode barriers between tenants and property owners through cloud computing and social media , providing cost-effective ways to obtain property information and allow the digitisation of transactions .
In particular , the Deloitte report forecasts several scenarios including the rise of an Uber-like or Google market victor – an entrant which completely disrupts the commercial real-estate and industrial property markets . However , it also paves the way for niche and smaller companies by reducing entry barriers .
INFORMATION AGGREGA- TION , SHARING AND COL-
LABORATION
Many industries have realised the appetite consumers have for obtaining information and data to help them make informed and intelligent decisions .
Trend forecasters indicate that the area with the greatest likelihood for disruption involved data and information , and data sharing and information aggregation is the nervous-system of listings-based industries such as real estate .
BRACING THE DIGITAL STORM
Dr Paul Marsden , a psychologist specialising in trends and technology believes there are many strategic ways of dealing with technology disruption .
While the full impact of the digital revolution on the real estate industry has yet to be seen and felt , it is an opportunity for South African companies and entrepreneurs to innovate and disrupt on their own grounds and through their own terms . Will we innovate and disrupt through own efforts or do we wait for the arrival of disruptors from international markets ?
In the end , we can ’ t tenaciously cling to old ways and business models . It simply is not good business . However , we can ask “ what can we do better through technology ?” and then ensure that ideas are developed and commercialised . In that we way , we have better control of disruption .
BEE scorecard is a priority element : failure to achieve a subminimum of 40 % would result in a discounting or drop in a company ’ s BEE level . The amended codes allow only for the training of employees and the unemployed who are black — Africans , coloureds and Indians . For example , a companyemploying 100 workers that wants to offer learnerships , apprenticeships and internships , first needsto train the 2.5 % target on these programmes . Training three employees on these programmes wouldnot suffice , as a minimum of six black employees are required to cover the African proportion of theeconomically active population , as well as one male and one female of each ethnic group .
T HE W ORLD D ISCOVERED
Date : 29 , 30 September & 1 October 2016
Venue : Bayworld , Summerstrand
WHAT TO ExPECT AT THE 3-DAY EVENT ?
- A maze where you will find exciting exhibits and discoveries around every nook and cranny .
- We will showcase the solar system displayed on the roof throughout the event .
- Sharing of knowledge and discoveries from knowledgeable speakers . - Computer games activities for the children to participate in . - A place where visitors can look through the telescope at night . - A guide explaining the different constellations and discoveries . - Picnic under the stars . Corporate Sponsorship :
Come and have two hours of an Amazing Race experience with your company . Challenge your team-matesand or another company to a game of cat and mouse , finder ’ s keepers and puzzle building to name a few fun activities .
Receive tickets to the picnic under the stars evening , tickets for general entrance for your staff and their family and tickets to the dinner and dance opening evening .
Sponsor one of the planets and or discoveries in our exhibition room and your company ’ s details published in the free booklet handed out to our visitors .
A portion of all proceeds will go to Bayworld for much needed upgrades and purchasing of items .
Entry and picnic under the stars : Your company will receive 2 entries and Picnic under the star ’ stickets .
( Includes day viewing of the exhibitions , museum & dinosaurs visit , gaming room , face paint , colour-in competition , show on the planetary system , pamphlet with information on exhibits and sponsors . Attend the Picnic under the stars . Bring your blanket and picnic basket and enjoy the entertainment for the evening while viewing the stars through the telescopes .)
For more information contact Lynn : Cell : 074 582 0319 or Email : lynn @ yourmoneyec . co . za
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S UPPLIER / SKILLS & ENTERPRISE D EVELOPMENT
The Solution
We have a large database of suitable entrepreneurs for you to choose from to upskill . We will ensurethat you have the correct amount of qualified and trained black suppliers in order for you to retain yourBBBEE Level each year . Our Micro MBA programme are aimed at entrepreneurs who wish to equip themselves with thenecessary tools to run any kind of business . We believe that by completing our Micro MBA they will beable to run their businesses successfully , become sustainable and ultimately provide superior productsand services to you . Micro MBA ( Entrepreneurship Development )
What is the PBS Micro MBA Programme ?
PBS Micro MBA Programme allows entrepreneurs to gain the training and business skills offered in a traditional MBA programme in a more accessible manner . We provide an MBA experiencein an intensive 768 hour programme .
Certificate
At the end of the programme all participants will receive a certificate of completion , with an accreditationNQF Level 1 , certified by Services Seta ’ s / SAQA Unit Standard 14444 . Contact Sanville Moses on Cell : 081 562 4478 or email : sanville . moses @ gmail . com