FREQUENTLY ASKED QUESTIONS
What properties has Aengus developed?
Aengus’ core focus is urban renewal. We have a purchased a number of commercial buildings in Braamfontein and the Johannesburg inner city which we have converted from high rise office blocks into residential apartments.
What are the names, sizes and dates of completion of these apartment buildings?
Argyle Precinct: Argyle Centre - corner Hospital and de Korte Street, Braamfontein
63 units completed September 2008
Argyle Precinct: Baker House - corner Hospital and de Korte Street, Braamfontein
53 units completed and tenanted in January 2009
Argyle Precinct: Dudley Heights - 15 Hospital Street Braamfontein
223 units completed and tenanted in July 2008
Argyle Precinct: Skyways - 12 Sutherland Road, Braamfontein
71 units completed September 2008
Argyl House – 4 Queens Road, Parktown
37 units tenanted in March 2009
Berea Lofts - corner Noble and Berea Road, Durban
133 units completed and tenanted August 2007
Braamfontein Lofts - corner Biccard and Juta Streets, Braamfontein
54 units completed and tenanted in November 2005
Fashion Lofts - corner Pritchard and Delvers Street, Braamfontein
223 units construction completed and tenanted August 2007
Lofts @ 66 - corner Smal and Pritchard Street, Braamfontein
150 units completed and tenanted in January 2006
Lowliebenhof - 193 Smit Street, Braamfontein
58 units completed and fully tenanted
Parktown Views - 83 Klein Street, Braamfontein
71 units completed and tenanted in February 2008
Tribeca Lofts - corner Jeppe and Eloff Street, Braamfontein
140 units completed and tenanted in November 2006
YMCA - corner Smit and Rissik Street, Braamfontein
119 residential units and retail space to be completed in July 2009
Who manages these portfolios?
Aengus Property Management (APM) is a wholly owned subsidiary of Aengus Property Holdings. APM is a fidelity fund certified company in the process of receiving its ISO 9001 accreditation. APM is responsible for the full scope of property management services which include leasing, letting, collection of rentals, security, cleaning, maintenance and facilities of all the buildings within the portfolio. It employs a staff of 200 people.
Does Aengus Lifestyle Properties (ALP) rent or sell the loft apartments within the portfolio?
Historically ALP has held all of its buildings as rental stock. However in April 2007, after receiving a vast amount of enquiries from the investor community, ALP opened sectional title registers within four of its buildings, including Lofts @ 66, Tribeca Lofts, Fashion Lofts and Berea Lofts. Aengus Property Management continues to manage these buildings on behalf the bodies corporate and offers its full management services to investors and occupiers alike.
Do your buildings fall within the South African Revenue Services urban development zones?
Yes all of our buildings, except Berea Lofts fall within urban development zones. An investor can enjoy a 30% straight line appreciation of their purchase price over a 5 year period. The onus is on the investor to apply to SARS with the relevant documentation in order to receive the UDZ incentive. Please see below for further information.
What is unique about refurbishing inner city buildings?
These buildings were originally commercial office blocks and not intended for residential use. Some of the many challenges include needing to work with the buildings as they are, designing around elements that would be easier to remove. Unseen deterioration, delivery access, storage facilities, out dated equipment, electrical upgrades, working with existing structural limitations. And of course being able to alter an eyesore to create an attractive feature.
How has the current economic crises affected the rental market?
Aengus Property Management (APM) has seen its most successful letting phase over the last three months with over 740 student leases signed. All of APM’s conventional apartments in downtown Johannesburg and Braamfontein continue to maintain 100% occupancy. APM has also successfully increased rentals by 8% in the first half of 2009.
What is Aengus Property Management’s key to 100% rental collection on a monthly basis?
Between APM’s efficient portfolio, building managers and strong management system, we are very thorough when it comes to accepting only credit worthy tenants. We have tight credit control processes and strict policies in place that ensure successful rental collections.
Why invest in Aengus’ inner city developments now?
The current drop in interest rates means that Aengus developments for sale are more attractive than ever. Aengus properties have offered a constantly increase in net returns per yearover the past 5 years of between 5-7%. Investors can also enjoy the benefit of the Urban Development Zone tax incentive.
What is the vision for the Aengus group going forward?
We intend to purchase further property portfolios and redevelop these to bring new rental stock into the traditional housing market. We will also focus on up market affordable student accommodation for intake in 2010.
What is the UDZ tax incentive and how can I benefit from it?
The Urban Development Zone (UDZ) tax incentive is aimed at encouraging inner city development across South Africa. Any taxpaying, property owning individual or entity can claim the tax benefits of the UDZ incentive, if they fall within the UDZ boundaries.
The incentive takes the form of a tax allowance that covers an accelerated depreciation of investment made in either the refurbishment of an existing property or the creation of new developments within the inner city. This falls over a period of either five, or seventeen years.
In the past, sectional title units were not entitled to a tax deduction, however due to the increasing demand from both the private sector and municipalities it was decided to amend the act to include such units.
These amendments have been applicable since November 2005 and allow up to 30% of the purchase price as a deduction over a five year period. It is up to the investor to submit the requisite information to SARS at the end of the tax year.
How does the process work?
A developer needs to obtain a certificate from the Johannesburg Council which certifies that the property does in fact fall inside the UDZ boundaries.
On completion of the units, the developer must then obtain a certificate of occupation from the Johannesburg Council. The sectional title owner must then accompany the following document with their next tax return
• Zone certificate
• Occupational certificate
• Deed of sale
• Development agreement
Aengus Lifestyle Properties cannot guarantee or be held responsible for the above information. For further detail on the UDZ please contact your accountant/auditor or local SARS office.
FREQUENTLY ASKED QUESTIONS
What properties has Aengus developed?
Aengus’ core focus is urban renewal. We have a purchased a number of commercial buildings in Braamfontein and the Johannesburg inner city which we have converted from high rise office blocks into residential apartments.
What are the names, sizes and dates of completion of these apartment buildings?
Argyle Precinct: Argyle Centre - corner Hospital and de Korte Street, Braamfontein
63 units completed September 2008
Argyle Precinct: Baker House - corner Hospital and de Korte Street, Braamfontein
53 units completed and tenanted in January 2009
Argyle Precinct: Dudley Heights - 15 Hospital Street Braamfontein
223 units completed and tenanted in July 2008
Argyle Precinct: Skyways - 12 Sutherland Road, Braamfontein
71 units completed September 2008
Argyl House – 4 Queens Road, Parktown
37 units tenanted in March 2009
Berea Lofts - corner Noble and Berea Road, Durban
133 units completed and tenanted August 2007
Braamfontein Lofts - corner Biccard and Juta Streets, Braamfontein
54 units completed and tenanted in November 2005
Fashion Lofts - corner Pritchard and Delvers Street, Braamfontein
223 units construction completed and tenanted August 2007
Lofts @ 66 - corner Smal and Pritchard Street, Braamfontein
150 units completed and tenanted in January 2006
Lowliebenhof - 193 Smit Street, Braamfontein
58 units completed and fully tenanted
Parktown Views - 83 Klein Street, Braamfontein
71 units completed and tenanted in February 2008
Tribeca Lofts - corner Jeppe and Eloff Street, Braamfontein
140 units completed and tenanted in November 2006
YMCA - corner Smit and Rissik Street, Braamfontein
119 residential units and retail space to be completed in July 2009
Who manages these portfolios?
Aengus Property Management (APM) is a wholly owned subsidiary of Aengus Property Holdings. APM is a fidelity fund certified company in the process of receiving its ISO 9001 accreditation. APM is responsible for the full scope of property management services which include leasing, letting, collection of rentals, security, cleaning, maintenance and facilities of all the buildings within the portfolio. It employs a staff of 200 people.
Does Aengus Lifestyle Properties (ALP) rent or sell the loft apartments within the portfolio?
Historically ALP has held all of its buildings as rental stock. However in April 2007, after receiving a vast amount of enquiries from the investor community, ALP opened sectional title registers within four of its buildings, including Lofts @ 66, Tribeca Lofts, Fashion Lofts and Berea Lofts. Aengus Property Management continues to manage these buildings on behalf the bodies corporate and offers its full management services to investors and occupiers alike.
Do your buildings fall within the South African Revenue Services urban development zones?
Yes all of our buildings, except Berea Lofts fall within urban development zones. An investor can enjoy a 30% straight line appreciation of their purchase price over a 5 year period. The onus is on the investor to apply to SARS with the relevant documentation in order to receive the UDZ incentive. Please see below for further information.
What is unique about refurbishing inner city buildings?
These buildings were originally commercial office blocks and not intended for residential use. Some of the many challenges include needing to work with the buildings as they are, designing around elements that would be easier to remove. Unseen deterioration, delivery access, storage facilities, out dated equipment, electrical upgrades, working with existing structural limitations. And of course being able to alter an eyesore to create an attractive feature.
How has the current economic crises affected the rental market?
Aengus Property Management (APM) has seen its most successful letting phase over the last three months with over 740 student leases signed. All of APM’s conventional apartments in downtown Johannesburg and Braamfontein continue to maintain 100% occupancy. APM has also successfully increased rentals by 8% in the first half of 2009.
What is Aengus Property Management’s key to 100% rental collection on a monthly basis?
Between APM’s efficient portfolio, building managers and strong management system, we are very thorough when it comes to accepting only credit worthy tenants. We have tight credit control processes and strict policies in place that ensure successful rental collections.
Why invest in Aengus’ inner city developments now?
The current drop in interest rates means that Aengus developments for sale are more attractive than ever. Aengus properties have offered a constantly increase in net returns per yearover the past 5 years of between 5-7%. Investors can also enjoy the benefit of the Urban Development Zone tax incentive.
What is the vision for the Aengus group going forward?
We intend to purchase further property portfolios and redevelop these to bring new rental stock into the traditional housing market. We will also focus on up market affordable student accommodation for intake in 2010.
What is the UDZ tax incentive and how can I benefit from it?
The Urban Development Zone (UDZ) tax incentive is aimed at encouraging inner city development across South Africa. Any taxpaying, property owning individual or entity can claim the tax benefits of the UDZ incentive, if they fall within the UDZ boundaries.
The incentive takes the form of a tax allowance that covers an accelerated depreciation of investment made in either the refurbishment of an existing property or the creation of new developments within the inner city. This falls over a period of either five, or seventeen years.
In the past, sectional title units were not entitled to a tax deduction, however due to the increasing demand from both the private sector and municipalities it was decided to amend the act to include such units.
These amendments have been applicable since November 2005 and allow up to 30% of the purchase price as a deduction over a five year period. It is up to the investor to submit the requisite information to SARS at the end of the tax year.
How does the process work?
A developer needs to obtain a certificate from the Johannesburg Council which certifies that the property does in fact fall inside the UDZ boundaries.
On completion of the units, the developer must then obtain a certificate of occupation from the Johannesburg Council. The sectional title owner must then accompany the following document with their next tax return
• Zone certificate
• Occupational certificate
• Deed of sale
• Development agreement
Aengus Lifestyle Properties cannot guarantee or be held responsible for the above information. For further detail on the UDZ please contact your accountant/auditor or local SARS office.
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