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PROPERTY
DEVELOPMENT, ENGINEERING AND CONSTRUCTION
Commercial
market sees little cheer
The festive season held little cheer for many players in the commercial
property industry as the local currency plunged to more than R13
to the dollar and fears of interest rate increases and inflationary
pressures increased. High interest rates can be devastating for
the commercial property industry. In 1998, at the height of the
emerging market crisis, interest rates soared to 25%, while a slowdown
in economic activity depressed rentals and capital values as vacancies
declined.
(©www.bday.co.za)
Engineering
firms hired to overhaul jails
The public works department has appointed 81 engineering firms to
spearhead the repairs and maintenance programme on another 146 prisons
and 41 military bases as part of its strategy to address the maintenance
backlog on the state's fixed property. The project's first phase
will consist of compiling a comprehensive status quo report, looking
at all aspects of engineering structural, building, civil, mechanical
and electrical before determining the total value of the entire
project.
(©www.bday.co.za)
SA
to build second nuclear plant
Johannesburg - A US engineering company and two South African firms
have signed a deal to build South Africa's second nuclear plant,
using a pioneering technology dubbed "safe and economical"
for the controversial test facility. The deal between Shaw Group,
South African nuclear technology firm PBMR and engineering company
Murray & Roberts was announced on Monday, enabling South Africa
to build a plant with pebble bed modular reactor technology.
(©www.busrep.co.za)
What
the rate rise means
The interest rate rises announced by all major mortgage lenders
this week will translate, for
existing homeowners, into an increase of more than R200 a month
on a 20-year home loan of
R290 000 - the current national average home price.
(©www.property24.co.za)
Gautrain
could cost province R70m a year
The Gauteng government will have to fork out up to R70m a year in
subsidies if the number of passengers on its planned rapid rail
link between Johannesburg and Pretoria falls significantly below
the projected 60000 a day. The provincial government has agreed
to give a "ridership guarantee" to potential investors
in the R7bn project.
(©www.bday.co.za)
Speed
train will benefit province
The planned R7bn rapid rail link between Johannesburg and Pretoria
promises to deliver a host of benefits for Gauteng, including reduced
congestion on roads, economic growth and job creation. But many
challenges must first be overcome before these can be realised,
not least being expropriating large tracts of land and uprooting
scores of residents.
(©www.bday.co.za)
R270m
Kruger airport construction on fast track
Mpumalanga’s new R270-million international airport, situated
on the border of the Kruger National Park, is on track to open for
regional flights in September. However, the new Kruger Mpumalanga
International Airport (KMIA) will only begin handling direct international
charter and package flights from Europe in December. KMIA spokesperson
Irvin Phenyane said that, while all infrastructure on the airport’s
3 100 m runway would be complete in September, licensing and aviation
systems for international flights would be in place only in late
November.
(©www.engineeringnews.co.za)
LNM
is now Iscor's top investor
Anglo-Dutch steel giant LNM, the parent company of
Ispat, confirmed yesterday that it had acquired at least 10% of
Iscor, was exercising an option to acquire a further 10,6%, and
could secure a further 10% stake by helping to cut costs at Iscor.
Iscor's share price on the JSE Securities Exchange SA fell 55c to
R10,95 yesterday on the confirmation that LNM had met its short-term
commitment of acquiring 10% of Iscor.
(©www.bday.co.za)
Steel
firm sees more work in the marine industry
Contractor and steel fabricator Concor Engineering is becoming increasingly
engaged in the marine sector after the firm opted to venture into
the field a few years ago.MD Chris Everett reports that the firm
is undertaking a project for a marine diamond-mining client at present,
involving heavy fabrication in its shop in Johannesburg.
(©www.engineeringnews.co.za)
Old-fashioned
drive-ins may be set for revival
They offer competitive entertainment for families, compared with
the cinema and with video rentals. Drive-ins may be about to make
a comeback, judging by the success of the new drive-in at Menlyn
Shopping Centre in Pretoria and the appearance of a new entrepreneur
with nationwide plans. Susanmarie Auret, public relations officer
of the Menlyn Shopping Centre, said last week the recently opened
drive-in was a great success and it was packed over weekends, attracting
all age groups.
(©www.bday.co.za)
Auditors
concerned about Quyn
Auditors of Quyn Holdings, the parent company of property group
Colliers RMS, have expressed concern about Quyn's financial ability
to continue as a going concern. This was raised in the group's results
for the year ended September. Auditors KPMG said that survival of
the group hinged on it securing additional financial support. The
group is already highly indebted, which means the sale of some of
its assets was a viable option to recapitalise.
(©www.bday.co.za)
Martprop
secures unanimous vote on gearing
Durban - Marriott Property Fund (Martprop) unit holders have unanimously
given the green light to gear the property unit trust's portfolio
to 30 percent of its R1.1 billion market capitalisation.This is
the maximum allowed by the new Collective Investment Schemes Bill,
expected to be tabled by March. The bill will enable property unit
trusts in the R5.4 billion sector to raise debt to finance acquisitions
by paying cash as well as issuing new shares.
(©www.bday.co.za)
Boost
for East London beachfront
East London's under-utilised yet prime beachfront area is to receive
a boost, thanks to the vision of two local entrepreneurs who are
making a significant investment in the redevelopment of four properties.
(©www.property24.co.za)
Errant
landlords and tenants face fines, even jail
Landlords who don’t maintain buildings and tenants who don’t
pay rent are now risking stiff fines and even imprisonment, thanks
to the powers given to the new Rental Housing Tribunals.
(©www.property24.co.za)
Kajee
admits LeisureNet share liability
Cape Town - Mohamed Kajee, a director of Sekunjalo Investments and
a former board member of LeisureNet, has agreed to pay the Insider
Trading Directorate R145 800 after an investigation into corporate
governance at the firm.
(©www.busrep.co.za)
Standard
Bank takes R10m Shoredits write-off on the chin
Pretoria - Standard Bank had written off about R10 million as a
result of the collapse and liquidation of Shoredits Holdings, the
formerly listed construction company, Gareth Richards, a spokesperson
for the bank, said yesterday.
(©www.busrep.co.za)
Liberty
buys stake of US property frontrunner
Cape Town - Liberty International had acquired 2.26 million shares,
or over 5 percent, of the shares of Rodamco North America (RNA),
a leading property investment company in the US, David Fischel,
the chief executive of Liberty International, said on Friday.
(©www.busrep.co.za)
Primegro
proposes share issue to raise over R31m in working capital
Pretoria - Primegro Properties, the listed property loan stock company
with a portfolio valued at R2.39 billion, had proposed to issue
5 095 771 deferred linked units to two undisclosed financial institutions
for cash at an issue price of R6.20 a deferred linked unit, executive
director Lionel Levinsohn said on Friday.
(©www.busrep.co.za)
Operation
Couch
One of the age-old walls drawn up by renowned architect Sir Herbert
Baker for the Union Buildings only just escaped destruction to make
room for a couch in Deputy President Jacob Zuma's office.
(©www.news24.co.za)
R5bn
spend to clean up fuel
The local oil refinery industry will have to invest
between R4-billion and R5-billion to upgrade refineries as more
stringent environmental requirements on petrol and diesel are coming
into play in the next few years, says South African Petroleum Industry
Association (Sapia) director Colin McClelland.
(©www.engineeringnews.co.za)
World
tourism council confirms SA is new favoured destination
Changes to favoured destinations are expected in 2002 after the
September 11 attacks, said the World Travel and Tourism Council
(WTTC), with the overall contribution of tourism to global gross
domestic product (GDP) holding at around 10%. “In 2001, tourism
contributed 10% of global GDP. I think overall this is going to
be fairly flat this year but there will be winners and losers,”
WTTC vice-president Graham Wason told an international conference
on tourism in Bulgaria.
(©www.engineeringnews.co.za)
HOUSING NEWS AND LAND ISSUES
Union
set to challenge restitution
The Transvaal Agricultural Union has lodged a case against government
in the Land Claims Court over the interpretation of the Restitution
Act. In court papers filed at the court last year, the union argues
that the Restitution Commission does not interpret the act correctly
on the issue of earlier compensation to people and communities moved
from their land.
(©www.bday.co.za)
Government
may abandon environmental case against Cape plc
Cape Town - An out-of-court settlement of P21 million by British
multi-national Cape plc to South African victims of asbestos-related
illnesses meant Pretoria had to consider whether to abandon its
claim against the company for environmental rehabilitation costs,
Enver Daniels, the chief state law adviser, said yesterday.
(©www.busrep.co.za)
Huge
KZN land claim to benefit thousands
More than 9 000 beneficiaries in KwaZulu-Natal will finally be compensated
by the regional Land Claims Commission in the largest urban settlement
in the country. A total of 1 522 households from Pietermaritzburg,
Seaview, Cato Manor, Warwick Avenue, Klaarwater, Emmaus and Nazareth
will receive a settlement ranging from restoration of their original
lands, alternative land, inclusion in a housing development, proposals
for light commercial ventures or financial compensation.
(©www.iol.co.za)
NEWS
FROM AFRICA
Kenyan
mayor hints at land invasions
Nairobi - Zimbabwe-style seizures of white-owned farms and homes
haven't begun in Kenya - at least not yet. But Dick Waweru, the
mayor of Nairobi, recently warned white residents of the city's
richest suburbs that their homes could be invaded by slum dwellers
unless they paid outstanding land taxes.
(©www.busrep.co.za)
Spoornet
strikes colossal deal
Johannesburg - Millions of rands would be saved through a deal struck
between Spoornet, the rail division of state-owned transport utility
Transnet, and Mozambican authorities to allow Spoornet and its partners
to operate a seamless railway line between Johannesburg and Maputo.
(©www.busrep.co.za)
$700m
investment planned for Moroccan refinery
Moroccan oil refiner Samir will invest $700-million from June to
upgrade its capacity and boost output, its chairperson, Abderrahman
Saaidi, said. “To reinforce our position in the market as a
leading oil refiner and diversify our activities, we decided to
launch a $700-million investment over a three-year period, starting
from June 2002,” he added.
(©www.engineeringnews.co.za)
SA,
Cameroon go to international arbitration over maintenance contract
State transport utility Transnet plans to defend itself against
allegations by the Cameroon Authorities that its officials used
unorthodox means to obtain contract in that country. It is alleged
that South African Airways (SAA) staff may have used bribery in
closing maintenance contracts with Cameroon Airlines (Camair).
(©www.engineeringnews.co.za)
MINING
NEWS
 DOWN,
BUT NOT OUT
Bobby Godsell, the chairman and CE of AngloGold, is pondering what
to do with a cash pile of up to R2 billion after losing a bidding
war for Australian miner Normandy.
(©www.busrep.co.za)
Iron
remains key part of Avmin
Johannesburg - Iron ore and consolidating the Northern Cape fields
remained part of the strategy of Anglovaal Mining (Avmin), Rick
Menell, the deputy chairman and chief executive, said yesterday.
(©www.busrep.co.za)
Gold
rushes back as a firm favourite
Johannesburg - South African gold companies were confident yesterday
that gold had returned to favour, with the price maintaining its
heady higher levels and investors piling into gold mining stocks.
(©www.busrep.co.za)
Eyesizwe
aims to sign empowering Kumba deal
Johannesburg - Black empowerment miner Eyesizwe Coal said yesterday
it hoped to conclude soon a deal with diversified miner Kumba Resources
which analysts say will change the face of South Africa's coal industry.
(©www.busrep.co.za)
Iscor
shares climb after US ruling on steel imports
Johannesburg - Iscor, the steel and mining group, gained for a second
day yesterday after the US ruling last week that iron ore and semifinished
steel imports did not threaten national security by making the US
too dependent on foreign sources.
(©www.busrep.co.za)
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