Long road to recovery – property industry
JOBURG – The industry has conveyed a message of gratitude to the communities who have in many instances been at the forefront of protecting the properties and shopping centres.
It will take the property industry years to recover from the devastation of the civil unrest experienced over the past week.
This was the collective view of the property industry during a press briefing hosted by the South African Property Owners Association (Sapoa) on July 14. The industry was incredibly affected by riots and acts of violence across the country.
According to the association, which represents more than 800 organisations across South Africa, while the government undertook the decision to provide increased security to prevent further destruction on July 12 the looting continued, and police and private security firms could not cope.
Sapoa remained concerned as it believed that the destruction may be orchestrated as shopping malls and centres were the most affected and hard hit since the unrest began on July 10.
Redefine Properties CEO Andrew König noted that at this stage (July 14) the structural and financial loss was yet to be formally established but the industry estimated that it would surely run into the billions.
According to eThekwini Mayor Mxolisi Kaunda, on July 14 at least 45 000 businesses, formal and informal, were out of commission in KwaZulu-Natal. An estimated R1 billion in stock had been stolen, R15-billion worth of damage incurred and more than 150 000 jobs remained at risk.
Growthpoint Properties CEO and South African Real Estate Investment Trust chairman, Estienne de Klerk noted that before further damage was incurred, the rule of law needed to be decisively instilled.
Not only would it instil peace but it would allow the property industry to ensure that it delivered services and goods via its partners to the various communities.
“We are particularly concerned about the breakdown in potential supplies of goods and services to communities that are impacted, specifically in the KwaZulu-Natal and now increasingly in Gauteng areas.”
National Clothing Retail Federation executive director Michael Lawrence added that the time had now come for government to put a stop to the destruction and civil unrest so that the country could continue to navigate its very difficult programme of economic development.
Lawrence added that discussions have continued over the week between various parties to find ways to get food and other resources out to affected communities. Industries have gone as far as looking at the possibility of a convey-type model to ensure the safety of the distribution chain.
“This can definitely bring some sense of certainty to the communities because what you don’t want is for genuinely hungry people to have no choice but to start invading their neighbours and neighbourhoods.
“The problem [then] goes outside of shopping centres and malls, and becomes a neighbourhood problem and a very different kind of security problem,” said Lawrence.
The industry did, however, convey a message of gratitude to the communities who have in many instances been at the forefront of protecting the properties and shopping centres.
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