CBE SYMPOSIUM 2008 Roles of Professionals in the Booming Built Environment Presented By Ms N Mandindi Chief Executive Officer Intersite Property Management Services

Content The boom:  What is spoiling the boom party?  Is the boom over? Roles of professionals:  Agents for industry transformation  Exceed sector charter targets  Skills development  Employment equity  Create employment opportunities  Ambassadors for the environment

What is spoiling the party?

Inflation CPIX increased by 10.1% (y/y) in March % February 08 Exceeded SARB target of 3% and 6% Impact: Building materials & labor costs

Annual % change in CPI Source: Statistics SA

Interest rate The Repo rate is currently at 11.5% The prime rate has increased by 15% Impact: Balance sheet (Debt ratio)

Brent crude oil Price of brent crude oil reached all time high, breaking over $126/barrel (as of Friday 09/5/08) Impact: Inflation trigger

Proposed Eskom Price Hike Eskom proposed 60% electricity tariff increase Impact: Exacerbate inflation

Load shedding Disrupt operations across the board

Is The Boom Over? Government infrastructure projects Flagship projects GFIP Gautrain FiFA World Cup Transnet Capital projects

Roles of professionals in the BE Agents for industry transformation –To exceed sector charter targets Skills development Employment equity Create employment opportunities Ambassadors for the environment

Skills development Embrace JIPSA & exceed sector charter targets Commitment Take responsibilities Will contribute to the Scorecard

Skills Development Industry sector charter targets (5yrs) Construction sectorProperty sector 1,6% payroll per annum on skills development 1,5% of payroll per annum on skills development 70% total skill development spend on black people 25% skills dev spend on black women 25% spend on black management 20% spend on black women 2,5% employees on learnerships (rolling 12 months average 2,5% of staff learnerships for blacks 70% of total learnerships on black people 2,5% mentorship for blacks

Skills development Government progress Source: AsgiSA annual report 2007 Work done since March 2006Work done beginning of 2007 Setting up structures & processes Expanded scope of work Determining prioritiesAddress challenges of town & regional planning skills Analyzing critical issuesMathematics Quantifying the challengesScience & language competence in public schools Developing proposalsManagement & planning skills in public sector

Employment equity Employment equity is the right thing to do –Transformation of the industry –Contribution to the Scorecard

Employment equity targets Source: Government Gazette (DTI) Construction sector (2010)Property sector (5yrs) 25% senior black management30% senior black management 10% senior black women management15% senior black women management 30% black middle management37,5% black middle management 12% black women middle management20% black women middle management 40% black junior management

Employment opportunities Create job opportunities to South Africans & discourage foreign skills imports Unemployment rate dropped by 23% in Sept 2007 compared to 25,5% in same period 2006 The construction industry contribution to total employment for 2007 was 8%. An annual % change of 432,000 in Sept 01 & 07

Employment rate by industry Source: Statistics SA

Ambassadors for the environment Incorporate green principles in designs S.A is adopting green building principles Establishment of GBCSA to support the commercial property sector BE & other property association should support GBCSA initiative. Obtain accreditation

Designing for the future client Who is the future client? –Corporate Green –Government Green What are the demands? –Green commercial space –Low operational expenses –Space that enhance productivity

Profile: Bahrain world trade centre 240m 50 floors Offices & shopping mall Three wind turbines Wind turbines generate up to 15% total building energy supply

Bahrain world trade centre

Bahrain tower

Guess what? The Bahrain world trade centre was designed by a South African Architect (Shaun Killa) Constructed by the South African developer (Muray & Roberts)

QUESTIONS?

Maybe we need this one in JHB CBD (Taipei, the tallest in the world, 509m, 101 floors)

THANK YOU