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No. 112 – 23 February 2007
WELCOME to our fortnightly NEWSLETTER
MEMBERS and SHOPPING CENTRES ONLY
WEBSITE: www.shoppingcouncil.co.za
ADDING VALUE AND SERVING YOU EVEN BETTER IN 2007
1. FINAL BEE CODES GAZETTED ON 9 FEBRUARY
Given the Department of Trade and Industry’s pressure on companies to become compliant with
transformation,a series of breakfasts and seminars organised by EES-Siyakha on the final BEE codes may be
well worth attending. The functions will be held in Johannesburg, Durban and Cape Town. The Cape Town
breakfast is on 18 February with the seminars on 1 March in Johannesburg, 13 March in Durban and 26 March
in Cape Town. Contact Jacques on 011 486 2735 or e-mail at jacques@ees.co.za .
2. PICK ‘N PAY SHELVES OFFER TO ACQUIRE FRUIT & VEG CITY
Pick ‘n Pay chief executive Nick Badminton, understandably dismayed that the Competition Commission took
some eight months to finally recommend against his company taking over Fruit & Veg City, has decided that the
bid will be shelved. Fruit & Veg City MD Brian Coppin noted that the delay had virtually paralysed his
business.
3. MOVERS AND SHAKERS
Pick ‘n Pay former managing director
Sean Summers retired this week. The
SACSC and Tgif wish him all the best.
Retail Network Services has appointed
Susan Harnden, formerly Broll and
Colliers, and EsmeTagg to its leasing
division, Commprop Network, headed up
by Jonathan Tagg. Foschini has
appointed Simon Bowley as chief
executive as from January next year.
Current CE Dennis Polak is to retire at the
end of this year.
4. SHOPRITE TURNS IN BRILIANT
RESULTS
For its six months to 31 December 2006,
Shoprite has reported trading profit up
27,9% to R717,3 million.
Turnoverincreased 14,9% from R16,621
billion to R19,105 billion.
The group’s non-RSA supermarkets
achieved a28,0% sales growth and
dividend per share declared increased
29,5% to 35 cents.
5. ICSC EUROPE OFFERS 5-DAY RETAIL PROPERTY SCHOOL
For the fifth time ICSC Europe is to hold its Retail Property School. Venue is La Meridien in Brussels and dates
are 24 to 29 June. Modules, for attendees with less than three years’ experience in the industry, include the
fundamentals of shopping centre management and the essentials of shopping centre marketing.More
experienced attendees can choose between advanced strategic knowledge of shopping centre marketing or
advanced strategic knowledge of shopping centre management. Contact www.icsc.org/2007ERPS .
6. FRANCHISEE ROYALTY PAYMENTS NO LONGER TAX DEDUCTIBLE
The Cape Tax Court has ruled, in terms of ITC 11454, that royalty payments paid by franchisees are capital in
nature and are no longer tax deductible. An estimate puts the royalties paid to franchisors at around R6,5 billion
a year. It appears the matter is to be taken on appeal. If SARS applies the ruling strictly, the impact on the
industry could be significant.
7. SACSC REVISES PLANNING ON SHOPPING CENTRE TOURS FOR 2007
Emphasis this year will be on the tour to the British Isles during September this year. Finality on the planning is
expected, says George Skinner, by 28 February. To date some 10 participants have indicated their interest.
Please advise George urgently if you are interested to enable final costing details to be determined. The “Best of
the British Isles” trip would take in the best shopping centres in England, Scotland and Ireland.Members are
asked to contact George Skinner at 011 784 2837 or e-mail at georges@shopz-group.co.za . Time is clearly of
the essence
8. GET INVOLVED WITH YOUR LOCAL CHAPTER
There is a chapter of the SA Council of Shopping Centres in most of South Africa’s major centres near you.
Meet your colleagues in the industry and share your ideas. Set yourself a target of inviting at least two guests for
each function you attend. Chapter committee members have been tasked with specific functions and a call to
your local chapter may see you getting involved in some task which may be of great interest.
Contact your nearest chapter and maximise your membership benefits today. For details see end of Tgif
9. IPD EUROPEAN PROPERTY INVESTMENT CONFERENCE 2007
Investment Property Databank (IPD) has organised a European property investment conference, called“One
World – One Property Investment Conference”. Venue is Geneva, Switzerland and dates are 9 to 11 May.
Topics include an understanding of the global trends affecting every property investor; how international
strategies are put into practice; learn what investors want from real estate managers; get insights into key world
markets and learn from the vision of pioneering global property players.
For a conference brochure and further information, contact melissa.manchon@ipdglobal.com.
10. INVESTMENT DECISIONS FOR WOMEN
Finlay Events has organised a morning seminar aimed at women. The objective is to empower women with
knowledge on making informed investment decisions. Topics include finance for non-finance people, gaining
value out of the residential market, buying a franchise and starting a business, getting started on a portfolio of
commercial properties, investing in the stock market, how to approach the listed property sector and others. Date
is 6 March 2007 and venue is Johannesburg’s Park Hyatt Hotel. The breakfast function starts with registration at
0700 and the presentation kicks off at 0730. It will wrap up at 1300. For bookings contact Elbe at 011 807 4724
or events1@finlay.co.za.
11. INTERNATIONAL EVENTS
International

March 18 to 20: Middle East Council of Shopping Centres’ annual conference

April 25 to 27: ICSC European Conference, Warsaw, Poland

May 9 to 11: IPD “One World – One Property Investment” conference, Geneva

May 20 to 23: ICSC Spring Convention Leasing Mall & Trade Exposition, Las Vegas

July 17 to 19: ICSC Asia Expo, Singapore
12. SHOPPING CENTRE DIRECTORY: BUY YOUR COPY NOW
Sales of the 2006/7 Southern African Shopping Centre Directory continue at a rapid pace and available stocks
are dwindling. Copies are available from Marie Schlebusch. See contact details below. Buy your copy now – it
is a worthwhile investment.
Order your copy now from Marie Schlebusch (900 3391) or e-mail at mariesch@mweb.co.za.
13. ICSC EUROPEAN CONFERENCE 2007 IN APRIL
The ICSC is to hold its 2007 European Conference for 2007 in Warsaw, Poland. Topics to be covered include an
overview of the world economy, its overall impact on society, ethical globalisation, a strategy for investments
into central and eastern European markets, urban regeneration in western Europe, unlocking opportunities in
regional cities and smaller towns, sustainability and its importance for the shopping centre industry and
announcements of the winners of the European Shopping Centre awards and Solal Marketing Awards.
For further information and bookings contact info.europe@icsc.org
14. 14.ARBOUR TOWN DEVELOPMENT: APPEAL ISSUE RESOLVED
Keystone Investments advises that all systems are go for its proposed Arbour Town shopping centre and mixed
use development on the KZN south coast. The Ethekwini Council appealed the DFA ruling in January this year.
Its objection was against the residentialrights granted on a portion of the site which, in council’s opinion, was
too close to the AECI factory. After discussion with the council, Keystone has submitted a rezoning application
for that portion, for the development of light industrial, commercial, workshops, showrooms and offices. That
application is currently being advertised. After the conclusion of what Keystone calls a “confidential agreement”
with the council, which has been signed, council has withdrawn its appeal.
The agreement with the council also deals with services to the property and the council has confirmed it, and
undertaken to sign the services agreement. Keystone anticipates that the services agreement will have been
signed by the end of this week.
Has the dust finally settled?
15. SACOB PLANS BUSINESS VISIT TO MAURITIUS
SACOB president and CEO Deidré Penfold is taking a business delegation to Mauritius from 7 to 11 May. The
intention is that participants will have access to cabinet misters and others involved in various industry clusters
which include, inter alia, textile and fashion, hospitality and property development and financial services.
Readers keen to accompany the trip are asked to contact Pam Murray at murrayp@sacob.co.za .
16. EMIRA SELLS FOURWAYS GAME CENTRE TO FOURWYAS PRECINCT (PTY) LIMITED
Tucked away in Emira Property Fund’s interim to the end December 31, and subsequent to the end of the
period, is the sale of its Fourways Game Centre in Sandton to Fourways Precinct (Pty) Limited. Price was R120
million. The sale is subject to the fulfilment of certain suspensive conditions. If successful, the acquisition will
represent the final piece of the jigsaw which is the land assembly around and including Fourways Mall.
17. TRADE AND INDUSTRY DEPARTMENT SIGNS “GREY IMPORT” LAWS.
Traders in so-called parallel imports – “grey imports” – face hefty fines, of up to R200 000 or five years
imprisonment, or both, if purchasers are not informed that the goods they are buying are not covered by the
manufacturer’s warranty. A sign has to be displayed alerting consumers about the nature of the products they are
buying and that the local authorised distributor is under no obligation to honour the manufacturer’s guarantee.
18. ESKOM ISSUES NATIONAL POWER ALERT
Eskom has issued a national alert regarding the supply of power. It states that, while the current situation is
stable, it is tight because of demand and unplanned outages at a number of generating units. It states that if there
are any further unplanned plant and network outages, or there is a further increase in demand, the possibility of
load shedding will increase for the next week.
Eskom is appealing to consumers to switch off non-essential electrical equipment such as airconditioning,geysers and swimming pools in order to reduce demand and assist in minimising the possibility of
load sharing.
19. PERSONAL INCOME DISTRIBUTION IN SOUTH AFRICA
According to a Unisa Bureau of Market Research report, some 35% of the total South African personal income
of R1 232 billion accrued to Gauteng last year. KwaZulu-Natal came in second with 16,3% and Western Cape
third with 14,7%.
20. MASSMART ACHIEVES BILLION RAND PRETAX PROFIT AT HALFWAY STAGE
For its six months to 31 December, Massmart recorded pretax profits of R1,01 billion. That is a first for the
group, and equals those earned for the full year to June 2005. Sales from continuing operations increased 16% to
R18 014 million, trading profit from continuing operations rose 35% to R1 033 million, headline earnings rose
31% to R672 million and dividends rose 52% to 197 cents/share. Outstanding.
21. TALEPIECE
Trevor Manuel deserves congratulations on his budget. One source of income he did not reflect was
thatfrom crime. Assume two million homes have a rapid response contract at R250 each. Multiply that by
12 months and work out just the VAT. Crime certainly pays. Of course, the crime situation also creates
many thousands of jobs in the security industry. Manuel just has to win.
Have a good one! - Andre
____________________________________________________________________________________________
Contact details:
Head Office: Village Walk, Maude Street, Sandown, Sandton
Website: www.shoppingcouncil.co.za
SACSC Executive Chairman: George Skinner:
011 784 2837, fax: 011 784 3810, mobile 082 600
5962, e-mail: georges@shopz-group.co.za
SACSC General Manager: Tracey Fowler:
011 884 8940, fax 011 884 8941, mobile: 082 327 1747,
e-mail: tracey@sacsc.org.za
Membership: Marie Schlebusch:
011 900 3391, fax 900 3493, mobile 082 852 6534,
e-mail: mariesch@mweb.co.za
Editor Tgif: André Viljoen:
011 886 0193, fax 011 886 060, mobile 083 417 6305,
e-mail:presswise@dtpmail.co.za
Chapter contact details
Bloemfontein: Danie de Goede
:
Cape Town: Angus Mackay
KwaZulu-Natal:: Amanda Stops.
KwaZulu-Natal Public Relations: Kirsten Love:
Johannesburg: Heidi Rix .
Port Elizabeth: Marios van Dongen.
Pretoria/Tshwane: Clint Ralph
Tel: 051 444 6914 , fax: 051 444 6918, mobile 082 804 5741, e-mail:
ddegoede@mimosamall.com
021 421-4500, fax: 021 421-4550, e-mail: angus@retailafrica.co.za
Mobile: 082 468 8373 Fax: 031 562 0215, e-mail:
stopsa@mweb.co.za
Tel: 031 566 3632, fax: 086 617 2 012, mobile: 083 798 0430, e-mail:
kirsten@sacsc.org.za
011 775 1018 Fax: 011 775-1001 e-mail: hrix@rmbp.co.za
041 373-9955 Fax: 041 373-9951 e-mail: mtnest@mweb.co.za
012 348 2449, Fax: 012 348 1544, e-mail: clint@lifestylecom.co.za