An agency of the Department of Arts and Culture Presented by: Ms Veliswa Baduza Chief Executive Officer PRESENTATION OF THE PROPERTY PORTFOLIO OF SAHRA.

An agency of the Department of Arts and CultureAn agency of the Department of Arts and Culture

Presented by:Ms Veliswa BaduzaChief Executive Officer

PRESENTATION OF THE

PROPERTY PORTFOLIO OF SAHRA TO THE

PORTFOLIO COMMITTEE

11 AUGUST 2015

Setšhaba

Letlotlo la Setjhaba

Ons Erfenis

Ilifa Lesizwe

Lifa Lesive

Ilifa Lesizwe

Ifa la Lushaba

Ilifa Lesitjhaba

Ndzhaka ya Rixaka

Bohwa bja Setšhaba

Heritage for the Nation

Parliamentary Precinct


Contents

1. Purpose2. Introduction3. Composition 4. SAHRA’s Property Portfolio5. Properties with a Potential for Revenue Generation

5.1 Fishermans Cottages – Struisbaai5.2 Daljosafat Farms - Paarl5.3 Welcome Cottages – Simons Town5.4 Posthuys – Muizenburg5.5 Valkenburg Manor - Observatory

6. Conclusion

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Tuynhuys


Purpose

The purpose of this presentation is to brief the Portfolio Committee on the performance of the Property Portfolio of SAHRA as well as the planned maximization strategy.

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Union Buildings, photo by R Aspeling


Introduction• SAHRA is established in terms of the National Heritage Resources Act No.25 of 1999 (NHRA) which

outlines an integrated interactive system for the management of the national heritage resources

of South Africa

• As the implementing agency of the Department of Arts and Culture, SAHRA plays a critical role in

the identification, conservation, protection and promotion of our heritage resources for the

present and future generations

• SAHRA currently has a property portfolio of 36 buildings, cemeteries and memorials which are

considered to be of historical importance. These properties were donated to the National

Monuments Council and the Historical Monuments Commission (the predecessors of SAHRA) by

the State and other institutions and individuals. The properties were typically donated to ensure

their continued protection and to prevent them from being demolished.

• Following a thorough analysis and understanding of the each Property, SAHRA developed a

property maximization strategy which will provide a sound business case for rehabilitating the

heritage sites while at the same time deriving socio economic values.

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Composition of Properties

The Portfolio of 36 Properties across 8 Provinces consisting of:

• 3 burial sites Western Cape Properties

• 3 open sites;

• 15 monuments

• 15 buildings

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SAHRA Property Portfolio

WESTERN CAPE

Name Town / District Type and Use

1 Woutersen Wessels Vault Green Point Burial Vault

2 Old Granite Lodge and extensions

Cape Town SAHRA Head Office

3 Valkenburg Manor House and Outbuildings

Observatory Leased Building

4 Van Riebeeck’s Hedge Bishpos Court Open site5 De Posthuys Muizenburg Monument6 Welcome Cottage SimonsTown Leased Building7 Hugo Family Vault Simons Town Burial Vault8 Dal Josafat Cottages Paarl Leased Building9 Kleinbosch Cemetery Paarl Burial Ground

10 Odendal School Paarl SAHRA offsite office11 Old Groenberg School Wellington Distr Building12 Erf 56 Vacant Plot Tulbagh Open site13 Erf 255 Vacant Plot Tulbach Open site14 Fisherman’s Cottages Struisbaai Leased Building

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Name Town Type and Use

Eastern Cape

1. The Lookout Kirkwood District Monument2. Old Congregational Church Cradock Building3. Mooimeisiesfontein(Piet Retief’s house) Riebeck East District Building4. Old Gaol Grahamanstown SAHRA Office5. Old Residency and outbuildings King Williams Town Building6. Garden of Remembrance Aliwal North Monument

Free State

1. Burger’s Monument Edenburg District Monument

Northern Cape

1. The Union Masonic Temple Kimberley Building

Limpopo1. Moorddrift Monument Potgietersrus Monument2. Old English Fort, Marabastad Polokwane Monument3. Verduin Ruins Soutpansburg Monument

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North West

Name Town Type1. Old Powder Magazine Potchefstroom Monument2. Old Fort and Cemetery Potchefstroom Monument3. Site of Dr Livingstone’s House Marico District Monument

Kwa Zulu Natal1. Old Fort Durban Monument2. Blarney Cottage Richmond Vacant Building3. Birthplace of General Louis Botha Umvoti District Monument

4. Spioenkop Battlefield Ladysmith Monument5. Elandslaagte Memorial Kliprivier District Monument6. Piet Retief’s Grave Vryheid MonumentMpumalanga1. Mapoch’s Caves Middleburg District Monument2. Krugerhof Waterval Boven Building

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Properties With Potential For Rehabilitation And Revenue Generation

No. Name Town/ District

Western Cape

1 Fisherman’s Cottages Struisbaai

2 Dal Josafat Farms & Onderdal School Paarl District

3 Welcome Cottage Simon’s Town

4 Het Posthuys Muizenburg

5 Valkenburg Manor Observatory

Eastern Cape

6 Old Gaol Grahamstown, EC

7 Old Residency and outbuildings King William’s Town,EC

The properties below have been determined as having the potential for significant economic and social impact to the Country. These Properties could potentially provide sustainable revenue to the Agency at the same time creating job opportunities by providing community projects such as substantive farming, Arts & Culture hub, hhotels, crèches etc.

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Fisherman Cottages – Struisbai

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In the early 1980, the cottages were in a state of disrepair, and the then NMC entered into leases with eight tenants on a long term (25 years with the option to renew for another 25 years) basis at nominal rent of R1 per annum. The lessees were responsible to rehabilitate the cottage at their own expense and also responsible to pay a one ninth share of all levies and amounts payable to the local authorities and the cost of restoring and maintaining the properties.

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Fisherman Cottages – Struisbai cont.Struisbaai is a small seaside town with arguably one of the longest sandy beach in South Africa, but also one of the safest swimming beaches, with water from the warm Agulhas current.

Current Use

• Out of the 8 Cottages, 3 have been cancelled due to the fact that the Lease Agreements were never renewed in the 2006 for a further 25 years as allowed in the lease agreements.

• The lease agreement states that the cottages are leased at nominal rent, subject to the lessees restoring and maintaining the cottages and contributing to the rates and taxes and maintenance of the properties.

• Legal advice was sought for the other 5 Cottages for the possible termination of the long term leases entered into in previous years. Attorneys have been approached from those available in the area of Bredarsdorp, near Struisbaai, to institute eviction proceedings at Court in the District of Bredarsdorp.

Future Use

• The existing buildings will be restored to a standard determined by the relevant authority, then utilise them for administration, educational or commercial purposes.

• 16 cottages new Cottages could be erected on the property (8 on Erf 1400 and 8 on Erf 1401, subject to confirmation by Cape Agulhas Municipality and rezoning) built in a style to replicate the design of original that of the fisherman’s cottages.

• These cottages must be equipped with standard accepted equipment in the timeshare/ self catering industry and should be graded by a relevant authority for time to time.

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Struisbaai from this currently...

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...to this after development

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Dal Josaphat Farms

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Parameter Fencing to be erected

Potential Community Projects

Extent of the site

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Rehabilitation Plans for the Dal Josafat

• In 1981, the separate farms situated east of the Roggeland Road, including the 173ha of deproclaimed land, and

a further 59ha of land west of the road, were consolidated as Erf 1341 and transferred to the Department of

Public Works. In 1985, consolidated erf 1341 was declared a national monument in terms of the National

Monuments Act 1969 (Act 12 of 1969, now repealed). It was transferred from Public Works to the National

Monuments Council (now S A Heritage Resources Agency or SAHRA) by means of a Deed of Donation a year

later

• There are 14 buildings on the Daljosaphat farms that are of significant heritage value, however the practice of

renting them out for long term residential purposes has allowed for the degradation of the buildings, both

internally and externally and significant sums of money will have to be spent to restore these buildings

Future Plans

• Create a commercial “Heritage Village” by utilising the existing buildings, landscape and infrastructure. Convert,

where possible, all the “Manor Houses” into Accommodation Establishments, Spas or Wellness Centres and

convert their larger outbuildings into Conference and Function Facilities, restaurants.

• The other buildings can be utilised for Reception, Administration Offices, Heritage Information Centres, a Library,

Delicatessens, Wine Tastings, Curio Shops, Art and Craft Shops and Art Studios. Short term residential (hotel),

educational or commercial purposes.1514


Welcome Cottage -Glencairn, Simonstown

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In 1810, HE Brand, Deputy Fiscal at Simon's Town petitioned the Cape Government for the lease of a piece of land. The farm was granted formally to Brand in 1811 for a 15 year period and its main product was vegetables. Welcome Cottage was built between 1812 and in 1822 a new grant was issued to Brand. The property was later acquired by Mr F B Pinney, then Sub-Collector of Customs at Simon's Town and in 1871 it was bought byMrs N Albertyn (nee De Villiers). It was passed down through the De Villiers family until the property was acquired by the Ministry of Defence in 1974 or 1975. The transfer of the property to the NMC was agreed to in 1979.

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Welcome Cottage -Glencairn, Simonstown

The leases on both these properties have expired and have not been extended. Letters of intention to cancel have been sent to both tenants who occupy the converted stables and the outbuilding, advising them of at SAHRA intention to renovating the building.

Future Use

Due to the location of the Property, it is proposed that the property is renovated with the intention of converting it to one of the following: an upmarket Spa and Wellness Centre, an upmarket guest house, or a themed restaurant, which would serve not only the tourist trade but also for the estimated 1200 local residents. The establishment could either be rented out in its entirety, or managed by an experienced Manager employed by SAHRA. The outbuildings can be used as additional rooms, administration offices, laundry and manager’s accommodation.

Alternatively, the property could be converted into office space and be utilised for a small training academy, medical practitioner offices (doctor, physiotherapist, chiropractor, or occupational therapist), or as a day care centre.

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Posthuys in Muizenburg

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Inside of the Museum

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Posthuys in Muizenburg cont.First recorded on a map in 1687, the actual origins and history of this building are still a subject of debate,

(as dates vary between 1662 and 1673) but it is thought to be the 2nd oldest building in the Cape after

the Castle, and the oldest in False Bay.

In 1662, due to the imminent outbreak of war between the Netherlands, the site on which Het Posthuys is

situated, was chosen for the erection of a watch post to guard False Bay in case of attack. The building,

part of a larger barracks complex, was built by the Vereenigde Oost-Indische Companies (Dutch East

India Company or VOC) between 1663 and 1673, it was presumably used as a lookout point for enemy

ships entering False Bay and as a signal station by the VOC during the Dutch occupation of the Cape.

The property is located on Erf 94323 at 180 Main Road, Muizenberg, Western Cape, directly across

the road from the sea, and a few hundred metres from Muizenberg Beach.

Current Use

Today it houses a small museum featuring a few interesting pieces about the Battle of Muizenberg (when the house came under fire) and historic photos of the Muizenberg area.

Planned Use

A proposal for the construction of a small 60 seater conference facility, a restaurant plus deck, together with off road parking is currently being drafted.

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The property is currently being leased by UCT at an annual cost of R74 508 per annum and the lease has another 47 years to termination. We have negotiated the lease rental. This will increase income from the property from R74 508 per annum to R 200 000 per annum.

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Valkenburg Manor

– The University of Cape Town (“UCT”) were ceded a Lease Agreement of SAHRA’s property in Valkenberg in 1993.

– The rental that they have been paying to SAHRA has been escalated over time and to date they are renting R74 508.47.

– UCT has requested consent to sublease the property to a third party and the proposed rental with the proposed subtenant is around R400 000.00.

– The parties (UCT and SAHRA) have negotiated and UCT has accepted that it is willing to

pay 50% of the rental to be generated escalating annually, on anniversary date. – The Sublease is for a period of 20 years.

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Value of the Leased ( Investment Properties)Properties 2014/15 2013/14

Valkenburg Manor, Observatory 1 300 000

1 300 000

Welcome Cottage, Simon's Town 1 900 000

1 900 000

Dal Josafat Farms, Paarl 11 690 000

11 690 000

Fishermans' Cottages, Struisbaai 1 200 000

1 200 000

Mooimeisiesfontein, Riebeeck East 610 000

610 000

16 700 000 16 700 000

Rental revenue from Investment Property

1 008 086 685 408

Direct operating expenses (including repairs and maintenance) arising from investment property that generated rental income

Repairs and maintenance 415 517 392 655Rates and Taxes 136 486 66 388Water and Electricity 753 471 709 627

1 305 474 1 168 670

It is evident from the loss situation depicted by the revenue vs expenditure that capital injection is critical for the rehabilitation of these Properties to enable self sustainability and improved revenue generation.

It is evident from the loss situation depicted by the revenue vs expenditure that capital injection is critical for the rehabilitation of these Properties to enable self sustainability and improved revenue generation.

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Conclusion

• SAHRA guided and supported by the Council is determined to turnaround the

Property Portfolio to ensure their continued preservation and protection while at

the same deriving value out of their existence.

• We are in discussions with the DAC regarding funding for the full implementation

of the strategy.

• Processes of obtaining permits from the Provincials heritage authorities and

engagements with Municipalities have already commenced.

• We will also be engaging the National Treasury on various possible funding models

such as the PPP.

• In conclusion I would like to thank the Portfolio Committee for giving us this

opportunity of discussing our Property strategies.

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An agency of the Department of Arts and CultureAn agency of the Department of Arts and Culture 24

I THANK

YOU!

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An agency of the Department of Arts and Culture Presented by: Ms Veliswa Baduza Chief Executive Officer PRESENTATION OF THE PROPERTY PORTFOLIO OF SAHRA.

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